Community Health Systems, Inc. (NYSE:CYH) Q2 2023 Earnings Call Transcript

Andrew Mok : Great. And then I wanted to follow up on the revenue per adjusted admit. We love to hear how that performed against your own expectations in the quarter, that metric was actually down sequentially even though you called out — called it out as a soft spot in Q1 and noted that payer mix improved sequentially. So can you help us understand what’s going on there with respect to pricing acuity and mix, especially on a sequential basis?

Kevin Hammons: Sure. Overall, I think net revenue and EBITDA came in in line with our expectations for second quarter. Volumes continue to be strong for us and recovery from the pandemic. And I think even having adjusted admissions and surgeries up over Q1 was a very strong signal. We do believe that there is further room to improve on payer mix. I think the Medicare age population of our mix was down about 100 basis points. Commercial is up 100 basis points. So a slight improvement, but it is trending in the right direction as that continues to improve further in the back half of the year, will certainly lead towards a higher net revenue per adjusted admission statistic. We also had CMI, case mix index, acuity was about flat sequentially. We believe that can improve a little bit, and we expect with some of our investments to improve as well in the back half of the year as people are coming in for services and surgeries and so forth before their co-pays reset for 2024.

Operator: This concludes our question-and-answer session. I’ll now turn the call over to Mr. Hingtgen for closing comments.

Tim Hingtgen : Thank you, MJ. I want to thank you all for joining us today. Before we conclude, I want to thank our physicians, nurses and other clinicians and support teams for all they do to ensure quality care for their patients and also to our health system leaders and those working in our CHS corporate offices for their many contributions. As always, if you have additional questions, you can reach us at (615) 465-7000. Thank you, and have a great day.

Operator: The conference has now concluded. Thank you for your participation. You may now disconnect your lines.