FRANKLIN - Community Health Systems, Inc. (NYSE: CYH) (the “Company”) today announced financial and operating results for the three and six months ended June 30, 2022.

The following highlights the financial and operating results for the three months ended June 30, 2022.

• Net operating revenues totaled $2.934 billion.
• Net loss attributable to Community Health Systems, Inc. stockholders was $(326) million, or $(2.52) per share (diluted), compared to net income of $6 million, or $0.04 per share (diluted), for the same period in 2021. Excluding the adjusting items as presented in the table in footnote (e) on page 14, net loss attributable to Community Health Systems, Inc. stockholders was $(2.52) per share (diluted), compared to net income of $0.23 per share (diluted) for the same period in 2021.
• Adjusted EBITDA was $253 million, including $8 million of pandemic relief funds.
• Net cash provided by operating activities was $53 million for the three months ended June 30, 2022, compared to $179 million for the three months ended June 30, 2021.
• On a same-store basis, admissions decreased 3.5 percent and adjusted admissions decreased 0.5 percent, compared with the same period in 2021.

Net operating revenues for the three months ended June 30, 2022, totaled $2.934 billion, a 2.4 percent decrease compared with $3.007 billion for the same period in 2021.

Net loss attributable to Community Health Systems, Inc. stockholders was $(326) million, or $(2.52) per share (diluted), for the three months ended June 30, 2022, compared to net income of $6 million, or $0.04 per share (diluted), for the same period in 2021. Excluding the adjusting items as presented in the table in footnote (e) on page 14, net loss attributable to Community Health Systems, Inc. stockholders was $(2.52) per share (diluted) for the three months ended June 30, 2022, compared to net income of $0.23 per share (diluted) for the same period in 2021. Pandemic relief funds, as more specifically described below, had a positive impact on net (loss) income attributable to Community Health Systems, Inc. stockholders (both on a consolidated and adjusted basis) of approximately $6 million, or $0.05 on a per share (diluted) basis, for the three months ended June 30, 2022, and less than $1 million, or $0.00 on a per share (diluted) basis, for the same period in 2021. Weighted-average shares outstanding (diluted) were 129 million and 131 million for the three months ended June 30, 2022 and 2021, respectively.

Adjusted EBITDA for the three months ended June 30, 2022, was $253 million compared with $453 million for the same period in 2021. Pandemic relief funds had a positive impact on Adjusted EBITDA of approximately $8 million and $1 million for the three months ended June 30, 2022 and 2021, respectively.

The consolidated operating results for the three months ended June 30, 2022, reflect a 3.4 percent decrease in admissions and a 0.4 percent decrease in adjusted admissions, compared with the same period in 2021. On a same-store basis, admissions decreased 3.5 percent and adjusted admissions decreased 0.5 percent for the three months ended June 30, 2022, compared with the same period in 2021. On a same-store basis, net operating revenues decreased 2.6 percent for the three months ended June 30, 2022, compared with the same period in 2021.

Net operating revenues for the six months ended June 30, 2022, totaled $6.044 billion, a 0.4 percent increase compared with $6.020 billion for the same period in 2021.

Net loss attributable to Community Health Systems, Inc. stockholders was $(327) million, or $(2.54) per share (diluted), for the six months ended June 30, 2022, compared to $(58) million, or $(0.46) per share (diluted), for the same period in 2021. Excluding the adjusting items as presented in the table in footnote (e) on page 12, net loss attributable to Community Health Systems, Inc. stockholders was $(2.40) per share (diluted) for the six months ended June 30, 2022, compared to net income of $0.60 per share (diluted) for the same period in 2021. Pandemic relief funds, as more specifically described below, had a positive impact on net loss attributable to Community Health Systems, Inc. stockholders (both on a consolidated and adjusted basis) of approximately $41 million, or $0.32 on a per share (diluted) basis, for the six months ended June 30, 2022, and approximately $63 million, or $0.50 on a per share (diluted) basis, for the same period in 2021. Weighted-average shares outstanding (diluted) were 128 million and 126 million for the six months ended June 30, 2022 and 2021, respectively.

Adjusted EBITDA for the six months ended June 30, 2022, was $662 million compared with $948 million for the same period in 2021. Pandemic relief funds had a positive impact on Adjusted EBITDA of approximately $55 million and $83 million for the six months ended June 30, 2022 and 2021, respectively.

The consolidated operating results for the six months ended June 30, 2022, reflect a 2.5 percent decrease in admissions and a 0.8 percent increase in adjusted admissions, compared with the same period in 2021. On a same-store basis, admissions decreased 1.9 percent and adjusted admissions increased 1.3 percent for the six months ended June 30, 2022, compared with the same period in 2021. On a same-store basis, net operating revenues increased 0.6 percent for the six months ended June 30, 2022, compared with the same period in 2021.

The Company received pandemic relief fund payments through various federal, state and local programs of approximately $10 million and $4 million during the three months ended June 30, 2022 and 2021, respectively, and approximately $52 million and $7 million for the six months ended June 30, 2022 and 2021, respectively. The Company recognized pandemic relief funds eligible to be claimed as a reduction in operating costs and expenses of approximately $8 million and $1 million during the three months ended June 30, 2022 and 2021, respectively, and approximately $55 million and $83 million for the six months ended June 30, 2022 and 2021, respectively. Amounts recognized are denoted by the caption “pandemic relief funds” in the condensed consolidated statements of loss. Pandemic relief funds that have not yet been recognized as a reduction in operating costs and expenses or otherwise refunded to the U.S. Department of Health and Human Services or the various state and local agencies as of June 30, 2022, totaled approximately $11 million and are reflected within accrued liabilities-other in the condensed consolidated balance sheet.

Commenting on the results, Tim L. Hingtgen, chief executive officer of Community Health Systems, Inc., said, “Our results in the second quarter were affected by challenging operating dynamics that included lower than anticipated volume, lower net revenue per adjusted admission, and significant contract labor costs driven by labor market and inflationary pressures. We have initiatives underway intended to actively address these pressures by accelerating strategic growth opportunities in key markets, aggressively working to recruit and retain permanent staff to replace contract labor, achieving incremental expense reductions, and leveraging our centralized resources to achieve improved results. Over the past several quarters, we have made strategic investments in our markets, and we continue to believe we are well-positioned to meet healthcare demand and take market share as patient volumes return. We are committed to intense operational execution, and we remain confident that our strategies will deliver long-term growth and value.”

The Company completed the divestiture of one hospital on July 1, 2022 (in respect of which the Company received proceeds at a preliminary closing on June 30, 2022). Financial and statistical data for 2022 and 2021 presented in this press release includes the operating results of divested or closed businesses for the periods prior to the consummation of the respective divestiture or closing. Same-store operating results exclude businesses divested or closed in 2021 and one hospital opened in 2022.

Community Health Systems, Inc. is one of the nation’s largest healthcare companies. The Company’s affiliates are leading providers of healthcare services, developing and operating healthcare delivery systems in 47 distinct markets across 16 states. As of July 27, 2022, the Company’s subsidiaries own or lease 83 affiliated hospitals with approximately 13,000 beds and operate more than 1,000 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers.

The Company’s headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.” More information about the Company can be found on its website at www.chs.net.

Community Health Systems, Inc. held a conference call on Thursday, July 28, 2022, at 10:00 a.m. Central, to review financial and operating results for the second quarter ended June 30, 2022.  For those who could not listen to the live broadcast, a replay will be available shortly after the call and will continue to be available for approximately 30 days. Copies of this press release and conference call slide show, as well as the Company’s Current Report on Form 8-K (including this press release), will be available on the Company’s website at www.chs.net.