Bulletin: Community Health Systems Inc.'s Second-Quarter Revenue Decline Is Within Expectations

NEW YORK (S&P Global Ratings) July 30, 2020--Community Health Systems Inc.'s (CCC+/Negative/--) second-quarter 2020 operating results are within S&P Global Ratings' expectations. Thus we are not making any meaningful changes to our longer-term expectations. For the quarter, the company reported a 23.7% year-over-year revenue decline due to the pandemic-related drop in patient volume, which we believe has reached its trough. From an EBITDA standpoint, the company benefitted from the $448 million of relief funds from the Paycheck Protection Program and Health Care Enhancement Act, which is recognized by Community as a reduction in expenses, accounting for nearly all of the company's reported EBITDA of $454 million in the quarter. Similar for all the peer hospital companies, the revenue decline reflects

...July 30, 2020 NEW YORK (S&P Global Ratings) July 30, 2020--Community Health Systems Inc.'s (###+/Negative/--) second-quarter 2020 operating results are within S&P Global Ratings' expectations. Thus we are not making any meaningful changes to our longer-term expectations. For the quarter, the company reported a 23.7% year-over-year revenue decline due to the pandemic-related drop in patient volume, which we believe has reached its trough. From an EBITDA standpoint, the company benefitted from the $448 million of relief funds from the Paycheck Protection Program and Health Care Enhancement Act, which is recognized by Community as a reduction in expenses, accounting for nearly all of the company's reported EBITDA of $454 million in the quarter. Similar for all the peer hospital companies, the revenue decline reflects the impact of the national delay in elective procedures beginning in mid-March, before beginning to recover in late April and accelerating in June. The pace of improvement on...

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