The Public Health System more than doubled profits in the fourth quarter, but high labor costs and inflation continue to weigh on its results.
Franklin, Tennessee-based for-profit systems on Wednesday reported fourth-quarter net income of $414 million, or $3.18 per share, compared with $178 million, or equivalent to $1.34 per share, a year ago. The results include a $180 million profit from an early write-off and $119 million from the HealthTrust Buy Group’s sale of CoreTrust Holdings, which closed on October 1. Community Health Systems is a non-controlling partner of HealthTrust.
Quarterly Operating income fell more than 46% to $228 million. Expenses rose 3.7% to $2.91 billion. Salary and benefits costs increased by 1.5%. Net operating revenue fell 2.8% to $3.14 billion.
In a press release, CEO Tim Hingtgen said the system has cut its use of contract workers from a peak in early 2022.
The Public Health System, which has 79 affiliated hospitals and more than 1,000 care sites, continues to cut costs by adjusting its physical footprint. Last year, Chief Financial Officer Kevin Hammons said the company was in “advanced discussions” about divestment. In January, they agreed to sell the last hospital in West Virginia to Vandalia Health System.
For the full year, Public Health System reported net income of $46 million, or 35 cents per share, compared with $230 million, or $1.76 per share in 2021. down 1.3% to $12.21 billion and costs up 3.9% to $11.39 billion.
Also this week, Public Health Systems disclosed a data breach that potentially affected the personal and health information of about 1 million patients. The company does not believe its information systems were affected but says an investigation is ongoing.
