Latest news with #CommunityHealthSystems
Business Wire
14-05-2025
- Business
- Business Wire
Community Health Systems to Participate in 2025 RBC Capital Markets Global Healthcare Conference
FRANKLIN, Tenn.--(BUSINESS WIRE)--Community Health Systems, Inc. (NYSE:CYH) today announced that management will participate in the 2025 RBC Capital Markets Global Healthcare Conference to be held May 20-21, 2025, in New York. The Company will host a fireside chat presentation on Wednesday, May 21, 2025, at 2:05 p.m. ET, 1:05 p.m. CT. The fireside chat presentation will be available to investors via a live audio webcast. A link to the broadcast can be found at the investor relations section of the Company's website, and a replay will be available using that same link. About Community Health Systems, Inc. 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 36 distinct markets across 14 states. As of April 23, 2025, the Company's subsidiaries own or lease 71 affiliated hospitals with more than 10,000 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
Time of India
30-04-2025
- Health
- Time of India
Ctrl+Alt+Disaster: How Oracle techies 'wrong click' brought nearly 50 hospitals to its knees for 5 days
Oracle engineers accidentally caused a five-day outage across Community Health Systems hospitals after deleting key data during maintenance. The outage disrupted access to electronic health records, forcing a switch to paper records in 45 hospitals. CHS confirmed the issue was not a cyberattack and praised staff for maintaining care. The outage is the latest in a series of setbacks for Oracle's EHR platform, including issues with federal deployments and the Department of Veterans Affairs. Tired of too many ads? Remove Ads Extent of the impact Tired of too many ads? Remove Ads Oracle restores systems after data rebuild Trouble beyond CHS A risky transition to digital healthcare A software malfunction triggered by Oracle engineers led to a five-day outage at multiple Community Health Systems (CHS) hospitals last week, forcing several facilities to switch to paper records after losing access to their digital systems. The disruption began on 23 April during scheduled maintenance, when Oracle personnel mistakenly deleted storage linked to a core patient to a CHS spokesperson, the outage was not caused by a cyberattack or data breach, but rather a human error during system maintenance. The affected hospitals activated emergency 'downtime procedures' as their electronic health record (EHR) systems went offline.'Despite this being a major outage, our hospitals were able to maintain services with no material impact,' the CHS spokesperson told CNBC. 'We are proud of our clinical and support teams who worked through the multi-day outage with professionalism and a commitment to delivering high-quality, safe care for patients.'Trade publication Becker's Hospital Review reported that 45 of CHS's 72 hospitals were affected. CHS operates across 14 states and is one of the largest publicly traded health systems in the United States. Its hospitals depend on Oracle Health's EHR platform to manage patient histories, appointments, and clinical EHR system, widely used across American healthcare facilities, plays a vital role in coordinating patient care. When digital access is lost, healthcare professionals must resort to manual processes — a time-consuming workaround that carries the risk of delays and completed restoration of the affected systems earlier this week. Engineers rebuilt the deleted storage and ran checks to ensure the integrity of patient data. CHS confirmed that its facilities are now working to 're-establish full functionality and return to normal operations and procedures.'Oracle did not immediately respond to a request for comment. The tech giant, which acquired EHR vendor Cerner for $28.3 billion in 2022, is now the second-largest provider of electronic health records, after Epic incident follows a series of challenges for Oracle's health division. Just weeks earlier, the company's federal EHR platform also experienced a nationwide outage. Separately, the Department of Veterans Affairs has faced years of problems with its own Oracle-run EHR project, initially launched under Cerner and later inherited by Oracle, prompted the VA to launch a formal review in 2021 over safety concerns. In 2023, the agency paused its deployment after reports of patient care disruptions and reliability push into healthcare technology through its Cerner acquisition was meant to strengthen its presence in one of the most sensitive and highly regulated industries. But the string of technical errors — from federal platforms to frontline hospitals — has raised questions about execution and CHS was able to continue services during the outage, the reliance on a single digital system across dozens of hospitals magnifies the risks. As health systems increasingly depend on centralised digital infrastructure, the cost of small errors — whether human or technical — can quickly spiral into systemic situation at CHS serves as a stark reminder that even in highly digitised sectors, redundancy and preparedness remain essential.
Yahoo
25-04-2025
- Business
- Yahoo
CHS emphasizes divestitures, strong volumes in Q1 earnings
This story was originally published on Healthcare Dive. To receive daily news and insights, subscribe to our free daily Healthcare Dive newsletter. Community Health Systems reported first-quarter earnings that beat analysts' expectations on Wednesday, including year-over-year same store operating revenue growth of 3.1% on high demand for services and a heavier flu season. The health system also made significant progress toward its long-term goal of deleveraging its balance sheet. CHS completed three divestitures during the quarter and announced a debt refinancing maneuver in tandem with the earnings release to bring down CHS' debt-to-operating income ratio. Still, familiar headwinds continued to dog the system, including elevated medical specialist fees and high rates of claim denials from payers. Uncertainties from Washington also add complexity to strategic planning, executives said, noting the Trump administration has been slow to approve state Medicaid supplemental payment programs. The health system beat the street's expectations for operating revenue in the first quarter, recording $3.2 billion, a 0.6% increase over last year. The system saw a sizable boost in volumes from a stronger-than-expected flu season, with same store admissions rising 4% year over year. Executives also noted an uptick in volumes from cardiac procedures and robotic surgeries, which they said pointed to the return on investment from new advanced platforms. Operating expenses came in at $2.8 billion. CEO Tim Hingtgen told investors the company had 'held the line' on supply costs and decreased contract labor costs by $8 million year over year. However, medical specialist fees increased 9% year over year to total $163 million. CFO Kevin Hammons said CHS had planned for medical specialist fees to rise, with the majority of the increase in anesthesiology. 'It is a pain point, it continues to be a pain point,' Hammons said. Heightened medical specialist fees were baked into CHS' 2025 guidance, according to the CFO. CHS predicted the fees would rise 8% to 12% year over year when issuing its guidance in February, and said the system was on track with that target. Still, CHS is investing in insourcing whenever possible in hopes of bringing costs down. CHS also completed three divestitures during the quarter, including ShorePoint Health System in Florida, Lake Norman Regional Medical Center in North Carolina and its 50% stake in Mississippi-based Merit Health Biloxi. The completed deals generated $544 million in cash proceeds for CHS, and the system estimates it will bring in $460 million more when it completes its sale of Texas-based Cedar Park Regional Medical Center later this year. Collectively, the deals will help CHS reach a $1 billion divestiture target it set last year, Hingtgen said. Analysts were pleased overall with the health system's performance, despite CHS posting a $13 million net loss. 'We give [CHS] credit for continuing to execute and deliver,' Jefferies' analyst Brian Tanquilut wrote in a Thursday note. Volume trends signalled fundamental improvements and management was dexterous when adapting to expense pressures, including rising physician specialist costs. 'More important, [CHS] is executing on a hospital divestiture program that's enabling [management] to pay down debt, just as the company is working through refinancing/extending upcoming debt maturities,' Tanquilut said. CHS is the first for-profit health system to post first quarter earnings amid an anxious healthcare landscape. Questions are swirling about how healthcare providers could handle possible cuts to Medicaid, a brewing trade war and reduced federal funding that could torch research budgets. Executives sought to assuage worries during Thursday's call with investors. 'I want to acknowledge the fact that healthcare providers are currently facing a number of uncertainties,' Hingtgen said. 'Navigating any potential changes that may come out of Washington in the weeks and months ahead makes planning more challenging, but our team is closely following these developments and advocating for policies that maintain and strengthen our health system.' CHS expects to be mostly insulated from the immediate effects of tariffs, including the Trump administration's import taxes on China, which currently sit at 145%. Hammons said less than 5% of CHS' purchases come from China. The majority of CHS' supplies are purchased through a group purchasing organization, HealthTrust Purchasing Group, which offers CHS three-year fixed pricing contracts, Hammons said. The GPO sources about half its supplies through domestic suppliers. 'So we have some price protection there,' the CFO said. Executives said they were uncertain when they would receive funding from Medicaid state supplemental payment programs. Since President Trump took office, it's been an open question whether and when the CMS would approve payments that help health systems cover the shortfall for treating Medicaid patients. Approvals for New Mexico and Tennessee programs — which CHS was waiting on at the close of 2024 — still have yet to be approved. However, executives were heartened by approvals of similar programs in other states, including New Hampshire and Arizona. 'It does appear that things are moving and that there's not a complete moratorium on these plans,' said Hingtgen. 'But we're just still in a wait and see, and as we sit here today, we know of no reason that they will not be approved going forward.' Despite CHS' relatively strong performance and assurances issued by its leadership, Jefferies' Tanquilut said the uncertainties cast over the market put CHS' stock in a short-term difficult position. 'We recognize that the progress CHS is making in driving operational improvements and its balance sheet are overshadowed by ongoing risks associated with broader healthcare policy,' the analyst said. 'Our view is that until we see a final budget reconciliation bill this summer (that presumably will mostly be funded by Medicaid cuts, which could have a meaningful impact on hospitals), near-term stock upside/recovery will likely be limited.' Recommended Reading CHS' losses widen in 2024 Sign in to access your portfolio
Yahoo
21-03-2025
- Business
- Yahoo
Community Health Systems, Inc.'s (NYSE:CYH) Intrinsic Value Is Potentially 61% Above Its Share Price
Community Health Systems' estimated fair value is US$4.31 based on 2 Stage Free Cash Flow to Equity Community Health Systems is estimated to be 38% undervalued based on current share price of US$2.67 Analyst price target for CYH is US$4.24 which is 1.7% below our fair value estimate How far off is Community Health Systems, Inc. (NYSE:CYH) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$274.1m US$120.9m US$61.5m US$40.8m US$31.6m US$26.8m US$24.2m US$22.8m US$22.0m US$21.7m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ -49.16% Est @ -33.59% Est @ -22.69% Est @ -15.05% Est @ -9.71% Est @ -5.97% Est @ -3.36% Est @ -1.52% Present Value ($, Millions) Discounted @ 11% US$246 US$97.4 US$44.4 US$26.5 US$18.4 US$14.0 US$11.4 US$9.6 US$8.3 US$7.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$483m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.8%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 11%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$22m× (1 + 2.8%) ÷ (11%– 2.8%) = US$257m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$257m÷ ( 1 + 11%)10= US$87m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$571m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of US$2.7, the company appears quite good value at a 38% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Community Health Systems as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 11%, which is based on a levered beta of 2.000. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Community Health Systems Strength No major strengths identified for CYH. Weakness Interest payments on debt are not well covered. Opportunity Forecast to reduce losses next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Good value based on P/S ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Total liabilities exceed total assets, which raises the risk of financial distress. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Community Health Systems, we've compiled three relevant factors you should explore: Risks: For example, we've discovered 2 warning signs for Community Health Systems (1 is a bit unpleasant!) that you should be aware of before investing here. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for CYH's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
21-02-2025
- Business
- Yahoo
Analysts Have Made A Financial Statement On Community Health Systems, Inc.'s (NYSE:CYH) Yearly Report
Investors in Community Health Systems, Inc. (NYSE:CYH) had a good week, as its shares rose 4.7% to close at US$3.54 following the release of its annual results. Revenues came in at US$13b, in line with expectations, while statutory losses per share were substantially higher than expected, at US$3.90 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results. See our latest analysis for Community Health Systems Taking into account the latest results, Community Health Systems' seven analysts currently expect revenues in 2025 to be US$12.5b, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 91% to US$0.35. Before this earnings announcement, the analysts had been modelling revenues of US$12.6b and losses of US$0.29 per share in 2025. While this year's revenue estimates held steady, there was also a very substantial increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock. The consensus price target held steady at US$4.31, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Community Health Systems, with the most bullish analyst valuing it at US$6.00 and the most bearish at US$2.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.4% by the end of 2025. This indicates a significant reduction from annual growth of 0.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.2% annually for the foreseeable future. It's pretty clear that Community Health Systems' revenues are expected to perform substantially worse than the wider industry. The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Community Health Systems. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Community Health Systems' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$4.31, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Community Health Systems analysts - going out to 2027, and you can see them free on our platform here. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Community Health Systems that you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
