What happened
Shares of Community Health Systems (CYH 4.31%) were up more than 21% as of 2:45 p.m. on Thursday after the company announced second-quarter earnings. The healthcare stock is down more than 10% so far this year.
So what
Community Health operates or leases 77 acute-care hospitals in 15 states. The company reported second-quarter revenue of $3.12 billion, up 6.2% year over year. The company also reported a net loss of $38 million, or $0.29 in earnings per share (EPS), compared to a loss of $326 million, or $2.52, in the same quarter a year ago.
The company attributed the improved numbers to higher inpatient and outpatient volumes, increased reimbursement rates, an increase in nonpatient revenue, and decreased costs for contract labor -- though some costs rose, such as professional liability insurance and outsourced medical specialists.
Now what
The rise in medical procedures, some of which were put off during the pandemic, bodes well for the company. On top of that, Community Health said it is putting in systems to streamline its operations and has added expense-management initiatives to cut costs.
The company hasn't turned a profitable quarter this year, with its last quarter in the black being the fourth quarter of 2022. The company left its annual guidance unchanged. In February, it said it expects 2023 revenue of between $12.2 billion and $12.6 billion (compared to $12.21 billion in 2022) and an EPS loss of between $0.05 and $0.65, compared to EPS of $0.35 in 2022.
