COMMUNITY HEALTH SYSTEMS, INC. ITEM 2.02 Results of Operations and Financial Condition
The Company also hereby provides certain preliminary guidance for 2020 as set
forth below. The Company anticipates net operating revenues for the year ending
The information provided above is based on information available to management as of the date of this Form 8-K and is subject to revision upon finalization of the Company's annual accounting and financial reporting procedures.
The Company intends to provide its updated 2020 annual earnings guidance and
reporting on its financial and operating results for the three months and year
ended
The information necessary to provide a reconciliation of the Company's
preliminary projected 2020 Adjusted EBITDA, a forward-looking non-GAAP financial
measure, to projected 2020 net income (loss) attributable to
--------------------------------------------------------------------------------
Information About Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure which consists of net loss attributable
to
Adjusted EBITDA is not a measurement of financial performance under
Forward-Looking Statements
This Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 that involve risk and uncertainties. Although the Company believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant economic and competitive uncertainties and contingencies, which are difficult or impossible to predict accurately and may be beyond the control of the Company. Accordingly, the Company cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. A number of factors could affect the future results of the Company or the healthcare industry generally and could cause the Company's expected results to differ materially from those expressed in this report. These factors include, among other things:
--------------------------------------------------------------------------------
• general economic and business conditions, both nationally and in the
regions in which we operate;
• the impact of current or future federal and state health reform
initiatives, including, without limitation, the Affordable Care Act, and
the potential for the Affordable Care Act to be repealed, or found
unconstitutional or otherwise invalidated, or for additional changes to
the law, its implementation or its interpretation (including through
executive orders and court challenges);
• the extent to and manner in which states support increases, decreases or
changes in Medicaid programs, implement health insurance exchanges or
alter the provision of healthcare to state residents through regulation
or otherwise;
• the future and long-term viability of health insurance exchanges and
potential changes to the beneficiary enrollment process;
• risks associated with our substantial indebtedness, leverage and debt
service obligations, and the fact that a substantial portion of our
indebtedness will mature and become due in the near future, including our
ability to refinance such indebtedness on acceptable terms or to incur
additional indebtedness, and our ability to remain in compliance with
debt covenants;
• demographic changes;
• changes in, or the failure to comply with, federal, state or local laws
or governmental regulations affecting our business;
• potential adverse impact of known and unknown government investigations,
audits, and federal and state false claims act litigation and other legal
proceedings;
• our ability, where appropriate, to enter into and maintain provider
arrangements with payors and the terms of these arrangements, which may
be further affected by the increasing consolidation of health insurers
and managed care companies and vertical integration efforts involving
payors and healthcare providers;
• changes in, or the failure to comply with, contract terms with payors and
changes in reimbursement policies or rates paid by federal or state
healthcare programs or commercial payors;
• any potential additional impairments in the carrying value of goodwill,
other intangible assets, or other long-lived assets, or changes in the
useful lives of other intangible assets;
• changes in inpatient or outpatient Medicare and Medicaid payment levels
and methodologies;
• the effects related to the continued implementation of the sequestration
spending reductions and the potential for future deficit reduction
legislation;
• increases in the amount and risk of collectability of patient accounts
receivable, including decreases in collectability which may result from,
among other things, self-pay growth and difficulties in recovering
payments for which patients are responsible, including co-pays and
deductibles;
• the efforts of insurers, healthcare providers, large employer groups and
others to contain healthcare costs, including the trend toward
value-based purchasing;
• increases in wages as a result of inflation or competition for highly
technical positions and rising supply and drug costs due to market
pressure from pharmaceutical companies and new product releases;
• liabilities and other claims asserted against us, including self-insured
malpractice claims;
• competition;
• our ability to attract and retain, at reasonable employment costs,
qualified personnel, key management, physicians, nurses and other
healthcare workers;
• trends toward treatment of patients in less acute or specialty healthcare
settings, including ambulatory surgery centers or specialty hospitals;
• changes in medical or other technology;
• changes in U.S. generally accepted accounting principles;
• the availability and terms of capital to fund any additional acquisitions
or replacement facilities or other capital expenditures;
--------------------------------------------------------------------------------
• our ability to successfully make acquisitions or complete divestitures,
including the disposition of hospitals and non-hospital businesses
pursuant to our portfolio rationalization and deleveraging strategy, our
ability to complete any such acquisitions or divestitures on desired
terms or at all, the timing of the completion of any such acquisitions or
divestitures, and our ability to realize the intended benefits from any
such acquisitions or divestitures;
• the impact that changes in our relationships with joint venture or
syndication partners could have on effectively operating our hospitals or
ancillary services or in advancing strategic opportunities;
• our ability to successfully integrate any acquired hospitals, or to
recognize expected synergies from acquisitions;
• the impact of seasonal severe weather conditions, including the timing
and amount of insurance recoveries in relation to severe weather events;
• our ability to obtain adequate levels of insurance, including general
. . .
ITEM 7.01 Regulation FD Disclosure
The information set forth in Item 2.02 of this Form 8-K is incorporated herein by reference.
--------------------------------------------------------------------------------
© Edgar Online, source
