Community Health Systems Inc. (CYH) somewhat tempered the
hospital company's 2013 revenue expectations, citing a
greater-than-expected deterioration in overall volume during the
last quarter, partly hurt by a softer flu season.
The company now expects net operating revenue for the year
between $12.98 billion to $13 billion, slightly below the October
estimate of $13 billion to $13.2 billion. Community Health said
admissions were hurt by softer volume for flu and respiratory and
cardiology.
Overall, Community Health expects to report a 6.7% drop in
admissions for the year and on a same-store basis, admissions are
expected to fall 7.2%.
Shares of Community Health slid 2.2% to $41.00 in after-hours
trading.
Community Health last summer offered to buy Health Management
Associates Inc. (HMA) for about $3.9 billion in cash and stock, a
deal that would give Community Health a strong new position in
Florida and create the largest U.S. hospital company by number of
hospitals.
On Monday, Community Health also issued 2014 outlook targets to
reflect the acquisition of Health Management as if it occurred on
Jan. 1. The company sees net operating revenue, less provision for
bad debt, between $19.7 billion to $21.2 billion for the combined
companies.
Because the deal hasn't closed, analysts haven't yet updated
their projections to reflect such a combination. Additionally,
Community Health said it expects to revise the expectations to
reflect the actual period of ownership of Health Management when it
announces earnings in February.
Write to John Kell at john.kell@wsj.com
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