Community Health Systems, Inc. (NYSE: CYH) (the “Company”) today
announced financial and operating results for the three months ended
March 31, 2014.
As previously announced, on January 27, 2014, the Company completed its
acquisition of Health Management Associates, Inc. (“HMA”). Financial and
statistical data reported in this earnings release includes HMA’s
operating results from January 27, 2014, the date of completion of the
HMA acquisition. Prior period consolidated results and statistical data
reflect only Community Health Systems, Inc. and its subsidiaries for the
period prior to the HMA acquisition. Same-store operating results and
statistical data includes comparable information for hospitals acquired
as a result of the HMA acquisition for the months of February and March
2014 and 2013.
Net operating revenues for the three months ended March 31, 2014,
totaled $4.195 billion, a 28.1 percent increase compared with $3.274
billion for the same period in 2013. Income from continuing operations
decreased to a loss of $78 million, or $(0.86) per share (diluted), for
the three months ended March 31, 2014, compared with income of $98
million, or $0.88 per share (diluted), for the same period in 2013. The
results for the three months ended March 31, 2014, include $0.30 per
share (diluted) of expenses related to acquisition and integration
expenses from the acquisition of HMA; $0.02 per share (diluted) of legal
expenses related to HMA legal proceedings underlying the contingent
value rights (“CVR”) agreement; $0.42 per share (diluted) of expenses
related to the loss from early extinguishment of debt; $0.14 per share
(diluted) of expenses related to the impairment of software costs taken
out of service; and $0.24 per share (diluted) of expenses related to
accelerating amortization on software to be abandoned. Excluding these
expenses, income from continuing operations was $0.27 per share
(diluted). Net loss attributable to Community Health Systems, Inc.
common stockholders was $(1.04) per share (diluted) for the three months
ended March 31, 2014, compared with net income of $0.86 per share
(diluted) for the same period in 2013. Discontinued operations consisted
of $0.02 per share (diluted) of losses from operations of entities held
for sale and $0.17 per share (diluted) of expenses related to the
impairment of long-lived assets held for sale for a total after-tax loss
of approximately $20 million, or $(0.19) per share (diluted).
Weighted-average shares outstanding (diluted) were 107 million for the
three months ended March 31, 2014, and 92 million for the three months
ended March 31, 2013.
Adjusted EBITDA for the three months ended March 31, 2014, was $485
million compared with $495 million for the same period in 2013,
representing a 2 percent decrease. Excluding the acquisition,
integration and legal expenses related to the HMA acquisition, Adjusted
EBITDA was $541 million for the three months ended March 31, 2014.
Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations,
loss from early extinguishment of debt, impairment of long-lived assets
and net income attributable to noncontrolling interests. The Company
uses Adjusted EBITDA as a measure of liquidity. A reconciliation of
Adjusted EBITDA to net cash provided by operating activities is included
in the attached footnotes.
The consolidated operating results for the three months ended March 31,
2014, reflect a 24.7 percent increase in total admissions and a 28.4
percent increase in total adjusted admissions compared with the same
period in 2013. On a same-store basis, admissions decreased 8.1 percent
while adjusted admissions decreased 5.3 percent compared with the same
period in 2013. On a same-store basis, net operating revenues decreased
4.0 percent compared with the same period in 2013.
Commenting on the results, Wayne T. Smith, chairman and chief executive
officer of Community Health Systems, Inc. said, “We are pleased with our
accomplishments for the first quarter of 2014 during what has been a
challenging, yet significant period for Community Health Systems. This
is the first quarter that we have reported our combined operations with
HMA, and we have been fully engaged in the integration of these
additional hospitals. Overall, our results for the quarter were affected
by the severe winter weather in several key markets and lower flu
volumes compared with the previous year. However, we have started to see
some positive trends in our operations related to the implementation of
The Affordable Care Act. We continue to focus on our volume trends and
expense management in this evolving healthcare environment.”
Smith added, “With the completion of the HMA acquisition, we are excited
about the long-term benefits for Community Health Systems and our
shareholders. We have a significant opportunity to leverage our assets
and apply our disciplined approach to providing quality healthcare in
more local communities across the United States. We have already
identified areas for operating improvements and believe we are making
measurable progress toward achieving the synergies we have previously
estimated. We remain focused on the key strategic areas for success in
our business – a proven centralized operating model, effective cost
management, quality initiatives, integrated networks in certain markets
and a successful physician recruitment program – as we continue to move
Community Health Systems forward in 2014.”
On January 27, 2014, the Company completed its acquisition of HMA
(formerly NYSE: HMA). Under the terms of the transaction, the Company
acquired each issued and outstanding share of common stock of HMA for
$10.50 in cash, 0.06942 of a share of the Company’s common stock, and a
CVR, which could yield additional cash consideration of up to $1.00 per
CVR, depending on the outcome of certain litigation matters. Pursuant to
an agreement with the Federal Trade Commission related to the
acquisition, the Company is required to divest two acute care facilities
and related outpatient businesses that were acquired upon the
acquisition of HMA: Riverview Regional Medical Center, a 281-bed
hospital in Gadsden, Alabama, and Carolina Pines Regional Medical
Center, a 116-bed hospital in Hartsville, South Carolina.
Included on pages 12, 13 and 14 of this press release are tables setting
forth the Company’s 2014 annual earnings guidance. The 2014 guidance is
based on the Company’s historical operating performance, current trends
and other assumptions that the Company believes are reasonable at this
time.
Located in the Nashville, Tennessee suburb of Franklin, Community Health
Systems, Inc. is one of the largest publicly-traded hospital companies
in the United States and a leading operator of general acute-care
hospitals in non-urban and mid-size markets throughout the country.
Through its subsidiaries, the Company currently owns, leases or operates
208 hospitals in 29 states with an aggregate of approximately 31,300
licensed beds. Its hospitals offer a broad range of inpatient and
surgical services, outpatient treatment and skilled nursing care.
Community Health Systems, Inc. will hold a conference call on Wednesday,
May 7, 2014, at 10:00 a.m. Central, 11:00 a.m. Eastern, to review
financial and operating results for the first quarter ended March 31,
2014. Investors will have the opportunity to listen to a live internet
broadcast of the conference call by clicking on the Investor Relations
link of the Company’s website at www.chs.net.
To listen to the live call, please go to the website at least fifteen
minutes early to register, download and install any necessary audio
software. For those who cannot listen to the live broadcast, a replay
will be available shortly after the call and will continue to be
available through June 7, 2014. Copies of the Company’s current report
on Form 8-K (including this press release) and conference call slide
show will be available on the Company’s website at www.chs.net.
|
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
|
Financial Highlights (a)(b)(c)(e)
|
(In millions, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Net operating revenues
|
|
|
$
|
4,195
|
|
|
|
$
|
3,274
|
|
Adjusted EBITDA (f)
|
|
|
|
485
|
|
|
|
|
495
|
|
(Loss) income from continuing operations (g), (h), (k)
|
|
|
|
(78
|
)
|
|
|
|
98
|
|
Net (loss) income attributable to Community Health Systems, Inc.
stockholders
|
|
|
|
(112
|
)
|
|
|
|
79
|
|
|
|
|
|
|
|
|
Basic (loss) earnings per share attributable to Community
Health Systems, Inc. common stockholders:
|
|
|
|
|
|
|
Continuing operations (g), (h), (k)
|
|
|
$
|
(0.86
|
)
|
|
|
$
|
0.89
|
|
Discontinued operations
|
|
|
|
(0.19
|
)
|
|
|
|
(0.02
|
)
|
Net (loss) income
|
|
|
$
|
(1.05
|
)
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per share attributable to Community
Health Systems, Inc. common stockholders (m):
|
|
|
|
|
|
|
Continuing operations (g), (h), (k), (l)
|
|
|
$
|
(0.86
|
)
|
|
|
$
|
0.88
|
|
Discontinued operations
|
|
|
|
(0.19
|
)
|
|
|
|
(0.02
|
)
|
Net (loss) income
|
|
|
$
|
(1.04
|
)
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding (i):
|
|
|
|
|
|
|
Basic
|
|
|
|
107
|
|
|
|
|
91
|
|
Diluted
|
|
|
|
107
|
|
|
|
|
92
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
65
|
|
|
|
$
|
57
|
|
____
|
|
|
|
|
|
|
|
|
|
|
For footnotes, see pages 9, 10 and 11.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
|
Condensed Consolidated Statements of (Loss) Income (a)(b)(c)(e)
|
(In millions, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
Amount
|
|
|
% of Net Operating Revenues
|
|
|
Amount
|
|
|
% of Net Operating Revenues
|
Operating revenues (net of contractual allowances and discounts)
|
|
|
$
|
4,900
|
|
|
|
|
|
|
$
|
3,752
|
|
|
|
|
Provision for bad debts
|
|
|
|
705
|
|
|
|
|
|
|
|
478
|
|
|
|
|
Net operating revenues
|
|
|
|
4,195
|
|
|
|
100.0
|
%
|
|
|
|
3,274
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
|
|
|
|
2,004
|
|
|
|
47.8
|
%
|
|
|
|
1,555
|
|
|
|
47.5
|
%
|
Supplies
|
|
|
|
635
|
|
|
|
15.1
|
%
|
|
|
|
494
|
|
|
|
15.1
|
%
|
Other operating expenses
|
|
|
|
1,023
|
|
|
|
24.4
|
%
|
|
|
|
696
|
|
|
|
21.3
|
%
|
Electronic health records incentive reimbursement (g)
|
|
|
|
(40
|
)
|
|
|
(1.0
|
)%
|
|
|
|
(19
|
)
|
|
|
(0.6
|
)%
|
Rent
|
|
|
|
99
|
|
|
|
2.4
|
%
|
|
|
|
70
|
|
|
|
2.1
|
%
|
Depreciation and amortization
|
|
|
|
257
|
|
|
|
6.1
|
%
|
|
|
|
190
|
|
|
|
5.8
|
%
|
Amortization of software to be abandoned (k)
|
|
|
|
42
|
|
|
|
1.0
|
%
|
|
|
|
-
|
|
|
|
-
|
|
Total operating costs and expenses
|
|
|
|
4,020
|
|
|
|
95.8
|
%
|
|
|
|
2,986
|
|
|
|
91.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations (g), (h), (k)
|
|
|
|
175
|
|
|
|
4.2
|
%
|
|
|
|
288
|
|
|
|
8.8
|
%
|
Interest expense, net
|
|
|
|
224
|
|
|
|
5.4
|
%
|
|
|
|
156
|
|
|
|
4.8
|
%
|
Loss from early extinguishment of debt
|
|
|
|
73
|
|
|
|
1.7
|
%
|
|
|
|
1
|
|
|
|
0.0
|
%
|
Equity in earnings of unconsolidated affiliates
|
|
|
|
(11
|
)
|
|
|
(0.3
|
)%
|
|
|
|
(16
|
)
|
|
|
(0.5
|
)%
|
Impairment of long-lived assets (k)
|
|
|
|
24
|
|
|
|
0.6
|
%
|
|
|
|
-
|
|
|
|
-
|
|
(Loss) income from continuing operations before income taxes
|
|
|
|
(135
|
)
|
|
|
(3.2
|
)%
|
|
|
|
147
|
|
|
|
4.5
|
%
|
(Benefit) provision for income taxes
|
|
|
|
(57
|
)
|
|
|
(1.4
|
)%
|
|
|
|
49
|
|
|
|
1.5
|
%
|
(Loss) income from continuing operations (g), (h), (k)
|
|
|
|
(78
|
)
|
|
|
(1.8
|
)%
|
|
|
|
98
|
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations of entities held for sale
|
|
|
|
(2
|
)
|
|
|
(0.0
|
)%
|
|
|
|
(2
|
)
|
|
|
(0.1
|
)%
|
Impairment of hospitals held for sale
|
|
|
|
(18
|
)
|
|
|
(0.5
|
)%
|
|
|
|
-
|
|
|
|
-
|
|
Loss from discontinued operations, net of taxes
|
|
|
|
(20
|
)
|
|
|
(0.5
|
)%
|
|
|
|
(2
|
)
|
|
|
(0.1
|
)%
|
Net (loss) income
|
|
|
|
(98
|
)
|
|
|
(2.3
|
)%
|
|
|
|
96
|
|
|
|
2.9
|
%
|
Less: Net income attributable to noncontrolling interests
|
|
|
|
14
|
|
|
|
0.4
|
%
|
|
|
|
17
|
|
|
|
0.5
|
%
|
Net (loss) income attributable to Community Health Systems, Inc.
stockholders
|
|
|
$
|
(112
|
)
|
|
|
(2.7
|
)%
|
|
|
$
|
79
|
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings per share attributable to Community
Health Systems, Inc. common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations (g), (h), (k)
|
|
|
$
|
(0.86
|
)
|
|
|
|
|
|
$
|
0.89
|
|
|
|
|
Discontinued operations
|
|
|
|
(0.19
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
Net (loss) income
|
|
|
$
|
(1.05
|
)
|
|
|
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per share attributable to Community
Health Systems, Inc. common stockholders (m):
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations (g), (h), (k), (l)
|
|
|
$
|
(0.86
|
)
|
|
|
|
|
|
$
|
0.88
|
|
|
|
|
Discontinued operations
|
|
|
|
(0.19
|
)
|
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
Net (loss) income
|
|
|
$
|
(1.04
|
)
|
|
|
|
|
|
$
|
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding (i):
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
107
|
|
|
|
|
|
|
|
91
|
|
|
|
|
Diluted
|
|
|
|
107
|
|
|
|
|
|
|
|
92
|
|
|
|
|
____
|
|
|
|
|
|
|
|
|
|
|
|
|
For footnotes, see pages 9, 10 and 11.
|
|
|
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
|
Condensed Consolidated Statements of Comprehensive (Loss) Income
(c)(e)
|
(In millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(98
|
)
|
|
|
$
|
96
|
Other comprehensive income, net of income taxes:
|
|
|
|
|
|
|
Net change in fair value of interest rate swaps, net of tax
|
|
|
|
9
|
|
|
|
|
16
|
Net change in fair value of available-for-sale securities, net of tax
|
|
|
|
-
|
|
|
|
|
2
|
Amortization and recognition of unrecognized pension cost
components, net of tax
|
|
|
|
-
|
|
|
|
|
1
|
Other comprehensive income
|
|
|
|
9
|
|
|
|
|
19
|
Comprehensive (loss) income
|
|
|
|
(89
|
)
|
|
|
|
115
|
Less: Comprehensive income attributable to noncontrolling interests
|
|
|
|
14
|
|
|
|
|
17
|
Comprehensive (loss) income attributable to Community Health
Systems, Inc. stockholders
|
|
|
$
|
(103
|
)
|
|
|
$
|
98
|
____
|
|
|
|
|
|
|
For footnotes, see pages 9, 10 and 11.
|
|
|
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
|
Selected Operating Data (a)(d)(j)
|
(Dollars in millions)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
|
|
|
Consolidated
|
|
|
Same-Store (1)
|
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
|
2014
|
|
|
2013
|
|
|
% Change
|
Number of hospitals (at end of period)
|
|
|
|
197
|
|
|
|
|
130
|
|
|
|
|
|
|
|
196
|
|
|
|
|
195
|
|
|
|
|
Licensed beds (at end of period)
|
|
|
|
29,672
|
|
|
|
|
19,840
|
|
|
|
|
|
|
|
29,192
|
|
|
|
|
29,470
|
|
|
|
|
Beds in service (at end of period)
|
|
|
|
25,899
|
|
|
|
|
16,746
|
|
|
|
|
|
|
|
25,419
|
|
|
|
|
26,376
|
|
|
|
|
Admissions
|
|
|
|
213,720
|
|
|
|
|
171,392
|
|
|
|
24.7
|
%
|
|
|
|
206,228
|
|
|
|
|
224,289
|
|
|
|
-8.1
|
%
|
Adjusted admissions
|
|
|
|
437,664
|
|
|
|
|
340,842
|
|
|
|
28.4
|
%
|
|
|
|
424,125
|
|
|
|
|
448,094
|
|
|
|
-5.3
|
%
|
Patient days
|
|
|
|
973,486
|
|
|
|
|
778,002
|
|
|
|
|
|
|
|
940,281
|
|
|
|
|
1,015,252
|
|
|
|
|
Average length of stay (days)
|
|
|
|
4.6
|
|
|
|
|
4.5
|
|
|
|
|
|
|
|
4.6
|
|
|
|
|
4.5
|
|
|
|
|
Occupancy rate (average beds in service)
|
|
|
|
47.9
|
%
|
|
|
|
51.6
|
%
|
|
|
|
|
|
|
46.9
|
%
|
|
|
|
48.7
|
%
|
|
|
|
Net operating revenues
|
|
|
$
|
4,195
|
|
|
|
$
|
3,274
|
|
|
|
28.1
|
%
|
|
|
$
|
4,054
|
|
|
|
$
|
4,222
|
|
|
|
-4.0
|
%
|
Net inpatient revenues as a % of operating revenues before
provision for bad debts
|
|
|
|
44.9
|
%
|
|
|
|
45.5
|
%
|
|
|
|
|
|
|
44.8
|
%
|
|
|
|
46.5
|
%
|
|
|
|
Net outpatient revenues as a % of operating revenues before
provision for bad debts
|
|
|
|
55.1
|
%
|
|
|
|
54.5
|
%
|
|
|
|
|
|
|
55.2
|
%
|
|
|
|
53.5
|
%
|
|
|
|
Income from operations (g), (h), (k)
|
|
|
$
|
175
|
|
|
|
$
|
288
|
|
|
|
-39.2
|
%
|
|
|
|
|
|
|
|
|
|
Income from operations as a % of net operating revenues
|
|
|
|
4.2
|
%
|
|
|
|
8.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
$
|
299
|
|
|
|
$
|
190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated affiliates
|
|
|
$
|
(11
|
)
|
|
|
$
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (f)
|
|
|
$
|
485
|
|
|
|
$
|
495
|
|
|
|
-2.0
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA as a % of net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operating revenues
|
|
|
|
11.6
|
%
|
|
|
|
15.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
65
|
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities a % of net operating
revenues
|
|
|
|
1.5
|
%
|
|
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Same-store operating results and statistical data includes
comparable information for hospitals acquired in the HMA acquisition
for the months of February and March 2014 and 2013.
|
____
|
For footnotes, see pages 9, 10 and 11.
|
|
|
|
|
|
|
|
|
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
|
Condensed Consolidated Balance Sheets (b)
|
(In millions, except share data)
|
(Unaudited)
|
|
|
|
|
March 31, 2014
|
|
|
December 31, 2013
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
613
|
|
|
|
$
|
373
|
|
Patient accounts receivable, net of allowance for doubtful
accounts of $3,437 and $2,439 at March 31, 2014 and December 31,
2013, respectively
|
|
|
|
3,129
|
|
|
|
|
2,328
|
|
Supplies
|
|
|
|
529
|
|
|
|
|
373
|
|
Prepaid income taxes
|
|
|
|
220
|
|
|
|
|
107
|
|
Deferred income taxes
|
|
|
|
294
|
|
|
|
|
101
|
|
Prepaid expenses and taxes
|
|
|
|
204
|
|
|
|
|
127
|
|
Other current assets (including assets of hospitals held for sale
of $72 and $32 at March 31, 2014 and December 31, 2013,
respectively)
|
|
|
|
638
|
|
|
|
|
339
|
|
Total current assets
|
|
|
|
5,627
|
|
|
|
|
3,748
|
|
Property and equipment
|
|
|
|
14,174
|
|
|
|
|
10,493
|
|
Less accumulated depreciation and amortization
|
|
|
|
(3,602
|
)
|
|
|
|
(3,425
|
)
|
Property and equipment, net
|
|
|
|
10,572
|
|
|
|
|
7,068
|
|
Goodwill
|
|
|
|
8,373
|
|
|
|
|
4,430
|
|
Other assets, net (including assets of hospitals held for sale
of $148 and $69 at March 31, 2014 and December 31, 2013,
respectively)
|
|
|
|
2,390
|
|
|
|
|
1,871
|
|
Total assets
|
|
|
$
|
26,962
|
|
|
|
$
|
17,117
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Current maturities of long-term debt
|
|
|
$
|
199
|
|
|
|
$
|
167
|
|
Accounts payable
|
|
|
|
1,016
|
|
|
|
|
951
|
|
Deferred income taxes
|
|
|
|
-
|
|
|
|
|
3
|
|
Accrued interest
|
|
|
|
165
|
|
|
|
|
112
|
|
Accrued liabilities (including liabilities of hospitals held for
sale of $31 and $19 at March 31, 2014 and December 31, 2013,
respectively)
|
|
|
|
1,746
|
|
|
|
|
1,225
|
|
Total current liabilities
|
|
|
|
3,126
|
|
|
|
|
2,458
|
|
Long-term debt
|
|
|
|
16,799
|
|
|
|
|
9,286
|
|
Deferred income taxes
|
|
|
|
1,134
|
|
|
|
|
906
|
|
Other long-term liabilities
|
|
|
|
1,425
|
|
|
|
|
977
|
|
Total liabilities
|
|
|
|
22,484
|
|
|
|
|
13,627
|
|
Redeemable noncontrolling interests in equity of consolidated
subsidiaries
|
|
|
|
692
|
|
|
|
|
358
|
|
EQUITY
|
|
|
|
|
|
|
Community Health Systems, Inc. stockholders’ equity
|
|
|
|
|
|
|
Preferred stock, $.01 par value per share, 100,000,000 shares
authorized; none issued
|
|
|
|
-
|
|
|
|
|
-
|
|
Common stock, $.01 par value per share, 300,000,000 shares
authorized; 116,236,453 shares issued and 115,260,904 shares
outstanding at March 31, 2014, and 95,987,032 shares issued and
95,011,483 shares outstanding at December 31, 2013
|
|
|
|
1
|
|
|
|
|
1
|
|
Additional paid-in capital
|
|
|
|
1,995
|
|
|
|
|
1,256
|
|
Treasury stock, at cost, 975,549 shares at March 31, 2014 and
December 31, 2013
|
|
|
|
(7
|
)
|
|
|
|
(7
|
)
|
Accumulated other comprehensive loss
|
|
|
|
(58
|
)
|
|
|
|
(67
|
)
|
Retained earnings
|
|
|
|
1,774
|
|
|
|
|
1,885
|
|
Total Community Health Systems, Inc. stockholders’ equity
|
|
|
|
3,705
|
|
|
|
|
3,068
|
|
Noncontrolling interests in equity of consolidated subsidiaries
|
|
|
|
81
|
|
|
|
|
64
|
|
Total equity
|
|
|
|
3,786
|
|
|
|
|
3,132
|
|
Total liabilities and equity
|
|
|
$
|
26,962
|
|
|
|
$
|
17,117
|
|
____
|
|
|
|
|
|
|
For footnotes, see pages 9, 10 and 11.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
|
Condensed Consolidated Statements of Cash Flows (b)
|
(In millions)
|
(Unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(98
|
)
|
|
|
$
|
96
|
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
302
|
|
|
|
|
192
|
|
Stock-based compensation expense
|
|
|
|
11
|
|
|
|
|
10
|
|
Impairment of long-lived assets and hospitals held for sale
|
|
|
|
42
|
|
|
|
|
-
|
|
Loss from early extinguishment of debt
|
|
|
|
73
|
|
|
|
|
1
|
|
Excess tax benefit relating to stock-based compensation
|
|
|
|
(3
|
)
|
|
|
|
(5
|
)
|
Other non-cash expenses, net
|
|
|
|
6
|
|
|
|
|
6
|
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures:
|
|
|
|
|
|
|
Patient accounts receivable
|
|
|
|
(171
|
)
|
|
|
|
(148
|
)
|
Supplies, prepaid expenses and other current assets
|
|
|
|
14
|
|
|
|
|
(2
|
)
|
Accounts payable, accrued liabilities and income taxes
|
|
|
|
(83
|
)
|
|
|
|
(98
|
)
|
Other
|
|
|
|
(28
|
)
|
|
|
|
5
|
|
Net cash provided by operating activities
|
|
|
|
65
|
|
|
|
|
57
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Acquisitions of facilities and other related equipment
|
|
|
|
(2,774
|
)
|
|
|
|
(5
|
)
|
Purchases of property and equipment
|
|
|
|
(181
|
)
|
|
|
|
(113
|
)
|
Proceeds from sale of property and equipment
|
|
|
|
-
|
|
|
|
|
1
|
|
Purchases of available-for-sale securities
|
|
|
|
(78
|
)
|
|
|
|
-
|
|
Proceeds from sales of available-for-sale securities
|
|
|
|
76
|
|
|
|
|
-
|
|
Increase in other investments
|
|
|
|
(99
|
)
|
|
|
|
(69
|
)
|
Net cash used in investing activities
|
|
|
|
(3,056
|
)
|
|
|
|
(186
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
|
6
|
|
|
|
|
72
|
|
Repurchase of restricted stock shares for payroll tax withholding
requirements
|
|
|
|
(11
|
)
|
|
|
|
(14
|
)
|
Stock buy-back
|
|
|
|
-
|
|
|
|
|
(19
|
)
|
Deferred financing costs and other debt-related costs
|
|
|
|
(269
|
)
|
|
|
|
(1
|
)
|
Excess tax benefit relating to stock-based compensation
|
|
|
|
3
|
|
|
|
|
5
|
|
Redemption of noncontrolling investments in joint ventures
|
|
|
|
(5
|
)
|
|
|
|
-
|
|
Distributions to noncontrolling investors in joint ventures
|
|
|
|
(19
|
)
|
|
|
|
(15
|
)
|
Borrowings under credit agreements
|
|
|
|
7,079
|
|
|
|
|
101
|
|
Issuance of long-term debt
|
|
|
|
4,000
|
|
|
|
|
-
|
|
Proceeds from receivables facility
|
|
|
|
133
|
|
|
|
|
300
|
|
Repayments of long-term indebtedness
|
|
|
|
(7,686
|
)
|
|
|
|
(403
|
)
|
Net cash provided by financing activities
|
|
|
|
3,231
|
|
|
|
|
26
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
240
|
|
|
|
|
(103
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
|
373
|
|
|
|
|
388
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
613
|
|
|
|
$
|
285
|
|
____
|
|
|
|
|
|
|
|
|
|
|
For footnotes, see pages 9, 10 and 11.
|
|
|
Footnotes to Financial Highlights, Financial Statements and
Selected Operating Data
|
|
(a)
|
|
Continuing operating results exclude discontinued operations for the
three months ended March 31, 2014 and 2013. Both financial and
statistical results exclude entities in discontinued operations for
all periods presented.
|
|
|
|
(b)
|
|
The CVR entitles the holder to receive a cash payment up to $1.00
per CVR (subject to downward adjustment), subject to the final
resolution of certain legal matters pertaining to HMA, as defined in
the agreement. Since the HMA acquisition date of January 27, 2014,
approximately $3 million in costs have been incurred related to
certain HMA legal matters. These costs will serve to reduce the
deductible, which has not yet been met and therefore will not reduce
the amounts owed to the CVR holders. An estimated liability of $42
million has been recorded for certain claims which HMA has
previously recognized. In addition, CHS is estimating the fair value
of the remaining claims that will be covered by the CVR. The Company
is continuing to analyze the fair value of the assets and
liabilities acquired in the HMA acquisition to finalize the purchase
price allocation for the HMA acquisition, and anticipates being
substantially complete with these reviews by the end of 2014.
|
|
|
|
(c)
|
|
The effective date of the HMA acquisition is January 27, 2014.
|
|
|
|
(d)
|
|
Included in discontinued operations for the three months ended March
31, 2014, are two hospitals required by the Federal Trade Commission
to be divested as part of their approval for the HMA acquisition.
Management is actively marketing several other small hospitals
included as held for sale. The estimated after-tax loss on the held
for sale hospitals is approximately $2 million.
|
|
|
|
(e)
|
|
The following table provides information needed to calculate income
per share, which is adjusted for income attributable to
noncontrolling interests (in millions):
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
Income from continuing operations attributable to Community Health
Systems, Inc. common stockholders:
|
|
|
|
|
|
|
(Loss) income from continuing operations, net of taxes
|
|
|
$
|
(78
|
)
|
|
|
$
|
98
|
|
Less: Income from continuing operations attributable to
noncontrolling interests
|
|
|
|
14
|
|
|
|
|
17
|
|
(Loss) income from continuing operations attributable to Community
Health Systems, Inc. common stockholders — basic and diluted
|
|
|
$
|
(92
|
)
|
|
|
$
|
81
|
|
|
|
|
|
|
|
|
Loss from discontinued operations attributable to Community Health
Systems, Inc. common stockholders:
|
|
|
|
|
|
|
Loss from discontinued operations, net of taxes
|
|
|
$
|
(20
|
)
|
|
|
$
|
(2
|
)
|
Less: Loss from discontinued operations attributable to
noncontrolling interests
|
|
|
|
-
|
|
|
|
|
-
|
|
Loss from discontinued operations attributable to Community Health
Systems, Inc. common stockholders — basic and diluted
|
|
|
$
|
(20
|
)
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(f)
|
|
EBITDA consists of net income attributable to Community Health
Systems, Inc. before interest, income taxes, and depreciation and
amortization. Adjusted EBITDA is EBITDA adjusted to exclude
discontinued operations, loss from early extinguishment of debt,
impairment of long-lived assets and net income attributable to
noncontrolling interests. The Company has from time to time sold
noncontrolling interests in certain of its subsidiaries or acquired
subsidiaries with existing noncontrolling interest ownership
positions. The Company believes that it is useful to present
Adjusted EBITDA because it excludes the portion of EBITDA
attributable to these third-party interests and clarifies for
investors the Company’s portion of EBITDA generated by continuing
operations. The Company uses Adjusted EBITDA as a measure of
liquidity. The Company has included this measure because it believes
it provides investors with additional information about the
Company’s ability to incur and service debt and make capital
expenditures. Adjusted EBITDA is the basis for a key component in
the determination of the Company’s compliance with some of the
covenants under the Company’s senior secured credit facility, as
well as to determine the interest rate and commitment fee payable
under the senior secured credit facility.
|
|
|
|
|
|
Adjusted EBITDA is not a measurement of financial performance or
liquidity under U.S. GAAP. It should not be considered in isolation
or as a substitute for net income, operating income, cash flows from
operating, investing or financing activities, or any other measure
calculated in accordance with U.S. GAAP. The items excluded from
Adjusted EBITDA are significant components in understanding and
evaluating financial performance and liquidity. This calculation of
Adjusted EBITDA may not be comparable to similarly titled measures
reported by other companies.
|
|
|
|
Footnotes to Financial Highlights, Financial Statements and
Selected Operating Data (Continued)
|
|
The following table reconciles Adjusted EBITDA, as defined, to net
cash provided by operating activities as derived directly from the
condensed consolidated financial statements (in millions):
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
Adjusted EBITDA
|
|
|
$
|
485
|
|
|
|
$
|
495
|
|
Interest expense, net
|
|
|
|
(224
|
)
|
|
|
|
(156
|
)
|
(Benefit) provision for income taxes
|
|
|
|
57
|
|
|
|
|
(49
|
)
|
Loss from operations of entities held for sale, net of taxes
|
|
|
|
(2
|
)
|
|
|
|
(2
|
)
|
Other non-cash expenses, net
|
|
|
|
17
|
|
|
|
|
11
|
|
Changes in operating assets and liabilities, net of effects of
acquisitions and divestitures
|
|
|
|
(268
|
)
|
|
|
|
(242
|
)
|
Net cash provided by operating activities
|
|
|
$
|
65
|
|
|
|
$
|
57
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
|
|
Included in income from operations and income from continuing
operations for the three months ended March 31, 2014, is the
electronic health records incentive reimbursement, which represents
reimbursement from Medicare and Medicaid related to certain of the
Company’s hospitals and for certain employed physicians. Total costs
and expenses related to the implementation of electronic health
records for the three months ended March 31, 2014, were
approximately $36 million, including depreciation and amortization
of approximately $20 million. Total costs and expenses related to
the implementation of electronic health records for the three months
ended March 31, 2013, were approximately $20 million, including
depreciation and amortization of approximately $14 million.
|
|
|
|
(h)
|
|
Included in non-same-store income from operations and income from
continuing operations are pre-tax charges related to acquisition
costs of $39 million and $1 million for the three months ended March
31, 2014 and 2013, respectively. For the three months ended March
31, 2014, these acquisition costs include $37 million of expenses
related to the acquisition of HMA.
|
|
|
|
(i)
|
|
The following table sets forth components reconciling the basic
weighted-average number of shares to the diluted weighted-average
number of shares (in millions):
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
Weighted-average number of shares outstanding - basic
|
|
|
107
|
|
|
91
|
Add effect of dilutive securities:
|
|
|
|
|
|
|
Stock awards and options
|
|
|
0
|
|
|
1
|
Weighted-average number of shares outstanding - diluted
|
|
|
107
|
|
|
92
|
|
|
|
|
|
|
|
(j)
|
|
Same-store operating results and statistical data includes
comparable information for hospitals acquired in the HMA acquisition
for the months of February and March 2014 and 2013.
|
|
|
|
(k)
|
|
Included in income from continuing operations for the three months
ended March 31, 2014, is an impairment charge of approximately $24
million and similarly, for software still in service but is
scheduled to be replaced, an acceleration of amortization of
approximately $42 million to adjust for its shortened remaining
life which is now expected to end on July 1, 2014. In connection
with the HMA acquisition, the Company further analyzed its
intangible assets related to internal-use software used in certain
of its hospitals for patient and clinical systems, including
software required to meet criteria for meaningful use attestation
and ICD-10 compliance. This analysis resulted in management
reassessing its usage of certain software products and
rationalizing that, with the addition of the HMA hospitals in the
first quarter of 2014, those software applications were going to
be discontinued and replaced with new applications that better
integrate meaningful use and ICD-10 compliance, are more cost
effective and can be implemented at a greater efficiency of scale
over future implementations.
|
|
|
|
Footnotes to Financial Highlights, Financial Statements and
Selected Operating Data (Continued)
|
|
(l)
|
|
The following supplemental tables reconcile income from continuing
operations and net income attributable to Community Health Systems,
Inc. common stockholders, as reported, on a per share (diluted)
basis, with the adjustments described herein:
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
(per share - diluted)
|
|
|
|
|
|
|
|
Income from continuing operations, as reported
|
|
|
$
|
(0.86
|
)
|
|
|
$
|
0.88
|
Adjustments:
|
|
|
|
|
|
|
Loss from early extinguishment of debt
|
|
|
|
0.42
|
|
|
|
|
0.01
|
Amortization of software to be abandoned
|
|
|
|
0.24
|
|
|
|
|
-
|
Impairment of long-lived assets
|
|
|
|
0.14
|
|
|
|
|
-
|
Expenses related to the acquisition and integration of HMA
|
|
|
|
0.30
|
|
|
|
|
-
|
Legal expenses related to cases covered by the CVR
|
|
|
|
0.02
|
|
|
|
|
-
|
Income from continuing operations, excluding adjustments
|
|
|
$
|
0.27
|
|
|
|
$
|
0.89
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
(per share - diluted)
|
|
|
|
|
|
|
|
Net income, as reported
|
|
|
$
|
(1.04
|
)
|
|
|
$
|
0.86
|
Adjustments:
|
|
|
|
|
|
|
Loss from early extinguishment of debt
|
|
|
|
0.42
|
|
|
|
|
0.01
|
Amortization of software to be abandoned
|
|
|
|
0.24
|
|
|
|
|
-
|
Impairment of long-lived assets
|
|
|
|
0.14
|
|
|
|
|
-
|
Expenses related to the acquisition and integration of HMA
|
|
|
|
0.30
|
|
|
|
|
Legal expenses related to cases covered by the CVR
|
|
|
|
0.02
|
|
|
|
|
-
|
Net income, excluding adjustments
|
|
|
$
|
0.08
|
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
|
(m) Total per share amounts may not add due to rounding.
Regulation FD Disclosure
The following tables set forth selected information concerning the
Company’s projected consolidated operating results for the year ending
December 31, 2014. These projections update selected preliminary
guidance provided on February 18, 2014, and are based on the Company’s
historical operating performance, current trends and other assumptions
that the Company believes are reasonable at this time. The 2014 guidance
should be considered in conjunction with the assumptions included
herein. See page 13 for a list of factors that could affect the future
results of the Company or the healthcare industry generally.
The following is provided as guidance to analysts and investors:
|
|
|
|
|
|
|
2014 Projection Range
|
Net operating revenues less provision for bad debts (in millions)
|
|
|
$
|
19,000
|
|
|
to
|
|
$
|
19,800
|
|
Adjusted EBITDA (in millions)
|
|
|
$
|
2,825
|
|
|
to
|
|
$
|
2,975
|
|
Income from continuing operations per share - diluted
|
|
|
$
|
2.70
|
|
|
to
|
|
$
|
3.20
|
|
Same-store hospital annual adjusted admissions growth
|
|
|
|
(4.0
|
)%
|
|
to
|
|
|
0.0
|
%
|
Weighted-average diluted shares, in millions, for the full year
|
|
|
|
113
|
|
|
to
|
|
|
115
|
|
Weighted-average diluted shares, in millions, for the 2nd, 3rd and
4th quarters
|
|
|
|
115
|
|
|
to
|
|
|
116
|
|
|
|
|
|
|
|
|
|
The following assumptions were used in developing the 2014 guidance
provided above:
-
The Company’s projection excludes the following:
-
Payments related to the contingent value rights issued in
connection with the HMA acquisition;
-
Future losses on the early extinguishment of debt;
-
Impairment of long-lived assets;
-
Resolution of government investigations or other significant legal
settlements;
-
Transaction costs and other expenses incurred in connection with
the acquisition of HMA;
-
Gains or losses from conforming accounting adjustments between CHS
and HMA; and
-
Other significant gains or losses that neither relate to the
ordinary course of our business nor reflect our underlying
business performance.
-
The 2014 projections include the results of operations from the
acquisition of HMA effective January 27, 2014.
-
Excluded from these projections are two hospitals required to be
divested as part of receiving regulatory approval from the Federal
Trade Commission, one hospital for which HMA had entered into a
definitive agreement to sell prior to the Company’s acquisition of
HMA, and several other small hospitals which the Company has
classified as held for sale and moved the operating results to
discontinued operations.
-
The 2014 projections include the acquisitions of Sharon Regional
Health System in Sharon, Pennsylvania, and Munroe Regional Medical
Center in Ocala, Florida, completed on April 1, 2014, and assumes
completing one to two additional targeted hospital acquisitions.
Other assumptions used in the above guidance:
-
Benefits to Adjusted EBITDA from Healthcare Reform in 2014 of 0.5% to
0.8% of net operating revenues.
-
Achievement of acquisition synergies related to the HMA acquisition of
approximately $100 million during the first year of operations.
-
Health Information Technology (HITECH) electronic health records
incentive reimbursement of approximately 1.0% to 1.3% of net operating
revenues for the year ended December 31, 2014.
-
Continuation and approval of the California hospital provider fee
program for 2014.
-
Same-store hospital annual adjusted admissions growth, of (4.0) to 0.0
for the entire year, does not take into account service closures and
weather-related or other unusual events.
-
Expressed as a percentage of net operating revenues, depreciation and
amortization of approximately 6.2% to 6.5% for 2014, an increase over
2013 primarily relating to the investments being made in information
systems technology and the acquisition of HMA; however, the adjustment
to fair market value of the acquired HMA assets remains subject to
finalization, therefore depreciation and amortization may vary
accordingly. Additionally, this is a fixed cost and the percentages
may vary as revenue varies. Such amounts exclude the possible impact
of any future hospital fixed asset impairments and acceleration of
amortization of software to be abandoned.
-
Interest expense, expressed as a percentage of net operating revenues,
of approximately 5.0% to 5.2%; however, interest expense is a fixed
cost and percentages may vary as revenue varies. Total fixed rate
debt, including swaps, is expected to average approximately 60% to 70%
of total debt during 2014.
-
Expressed as a percentage of net operating revenues, equity in
earnings of unconsolidated affiliates of approximately 0.2% to 0.3%
for 2014.
-
Expressed as a percentage of net operating revenues, net income
attributable to noncontrolling interests of approximately 0.6% to 0.8%
for 2014.
-
Expressed as a percentage of income from continuing operations before
income taxes, provision for income tax of approximately 29.0% to 32.0%
for 2014.
-
Capital expenditures are projected as follows (in millions):
|
|
|
|
2014
|
|
|
|
|
|
Guidance
|
|
Total
|
|
|
|
$
|
975
|
|
|
to
|
|
|
$
|
1,150
|
|
-
Net cash provided by operating activities is projected as follows (in
millions):
|
|
|
|
2014
|
|
|
|
|
|
Guidance
|
|
Total
|
|
|
|
$
|
1,600
|
|
|
to
|
|
|
$
|
1,800
|
|
-
Weighted average shares outstanding are projected to be approximately
113 million to 115 million for the year ended 2014 and approximately
115 million to 116 million for each of the second, third and fourth
quarters of 2014 and have been adjusted to include the estimated
dilutive impact from “in-the-money” stock options and restricted
shares.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act, Section 21E of the
Exchange Act and the Private Securities Litigation Reform Act of 1995
that involve risk and uncertainties. All statements in this press
release other than statements of historical fact, including statements
regarding projections, expected operating results, and other events that
depend upon or refer to future events or conditions or that include
words such as “expects,” anticipates,” “intends,” “plans,” “believes,”
“estimates,” “thinks,” and similar expressions, are forward-looking
statements. Although the Company believes that these forward-looking
statements are based on reasonable assumptions, these assumptions are
inherently subject to significant economic and competitive uncertainties
and contingencies, which are difficult or impossible to predict
accurately and are beyond the control of the Company. Accordingly, the
Company cannot give any assurance that its expectations will in fact
occur and cautions that actual results may differ materially from those
in the forward-looking statements. A number of factors could affect the
future results of the Company or the healthcare industry generally and
could cause the Company’s expected results to differ materially from
those expressed in this press release.
These factors include, among other things:
-
general economic and business conditions, both nationally and in the
regions in which we operate;
-
implementation and effect of adopted and potential federal and state
healthcare legislation;
-
risks associated with our substantial indebtedness, leverage, and debt
service obligations;
-
demographic changes;
-
changes in, or the failure to comply with, governmental regulations;
-
potential adverse impact of known and unknown government
investigations, audits, and Federal and State False Claims Act
litigation and other legal proceedings;
-
our ability, where appropriate, to enter into and maintain managed
care provider arrangements and the terms of these arrangements;
-
changes in, or the failure to comply with, managed care provider
contracts, which could result in, among other things, disputes and
changes in reimbursements, both prospectively and retroactively;
-
changes in inpatient or outpatient Medicare and Medicaid payment
levels;
-
increases in the amount and risk of collectability of patient accounts
receivable;
-
increases in wages as a result of inflation or competition for highly
technical positions and rising supply costs due to market pressure
from pharmaceutical companies and new product releases;
-
liabilities and other claims asserted against us, including
self-insured malpractice claims;
-
competition;
-
our ability to attract and retain, at reasonable employment costs,
qualified personnel, key management, physicians, nurses and other
health care workers;
-
trends toward treatment of patients in less acute or specialty
healthcare settings, including ambulatory surgery centers or specialty
hospitals;
-
changes in medical or other technology;
-
changes in U.S. generally accepted accounting principles;
-
the availability and terms of capital to fund additional acquisitions
or replacement facilities;
-
our ability to successfully make acquisitions or complete divestitures;
-
our ability to successfully integrate any acquired hospitals,
including those of HMA, or to recognize expected synergies from
acquisitions;
-
the impact of the acquisition of HMA on third-party relationships;
-
the impact of seasonal severe weather conditions;
-
our ability to obtain adequate levels of general and professional
liability insurance;
-
timeliness of reimbursement payments received under government
programs; and
-
the other risk factors set forth in our public filings with the
Securities and Exchange Commission.
The consolidated operating results for the three months ended March 31,
2014, are not necessarily indicative of the results that may be
experienced for any such future period or for any future year. The
Company cautions that the projections for calendar year 2014 set forth
in this press release are given as of the date hereof based on currently
available information. The Company undertakes no obligation to revise or
update any forward-looking statements, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise.
Copyright Business Wire 2014