What happened

After the hospital conglomerate reported fourth-quarter and full-year results, shares of Community Health Systems (CYH -1.59%) were up 20% as of 10:25 a.m. EST on Thursday.

So what

Here's a look at the headline numbers from the quarter:

  • Revenue jumped 13% to $3.453 billion. That came in slightly ahead of Wall Street's estimate.
  • Adjusted admissions grew 0.1%. 
  • GAAP net loss was $328 million, or $2.91 per share.
  • Adjusted net loss came in at $0.42 per share. That was much higher than the $0.28-per-share adjusted loss recorded in the year-ago period, but it was better than the $0.58-per-share loss that analysts had predicted.

Here are the company's results for the full year:

  • Revenue fell 8% to $14.2 billion. The decline was mostly due to hospital divestitures and closures.
  • Net loss was $788 million, or $6.99 per share. 
  • Adjusted net loss came in at $1.94 per share. 
Exterior view of a medical office building dedicated to surgery

Image source: Getty Images.

Investors appear to be applauding the better-than-expected quarterly results. 

Check out the latest Community Health Systems earnings call transcript.

Now what

Community Health Systems remains in a precarious position. The company is burning through capital each quarter and is rapidly shedding hospitals in an attempt to pay off its substantial debt load (which at year-end still topped $13.3 billion).

Community Health Systems might be able to eventually turn the ship around and turn into a fine investment from here. However, I'm not a fan of investing in turnaround stories.

If hospital stocks interest you, then there are other companies out there that are more deserving of your attention.