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Analyzing Community Health Systems for lucrative opportunities
Analyzing Community Health Systems (CYH), which is a for-profit hospital, in relation to other for-profit hospitals can help you identify lucrative investment opportunities.
As a part of its growth strategy, Community Health Systems (CYH) acquires two to four hospitals, mostly municipal or non-profit hospitals, per year.
Community Health Systems had the highest capital expenditures as a percentage of its total revenue in 2013, at 7.6%. These expenses were around $991.3 million in dollar terms.
Community Health Systems (CYH) faces a unique combination of company risks in addition to the industry-specific risks of the hospital industry.
In 2013, Community Health Systems (CYH) had a workforce comprising 69,000 full-time employees and 18,000 part-time employees. The company also increased its total number of affiliated physicians by 1,030 in 2013.
The Patient Protection and Affordable Care Act (or ACA) and Health Care and Education Affordability Reconciliation Act are together called “Reform Legislation.”
Sources of revenue For-profit hospitals like HCA Holdings (HCA), Tenet Healthcare (THC), Universal Health Services (UHS), and Community Health Systems (CYH) receive payments from federal Medicare, state Medicaid, or similar…
Community Health Systems’ (CYH) operating expenses as a percentage of its net operating revenues increased from 85.1% in 2012 to 87% in 2013.
According to the US Census Bureau, 19.3% of the total US population resides in non-urban areas. Also, out of the total hospitals in the US, 40% are located in these areas.
The net operating revenues of Community Health Systems (CYH) decreased by 0.2% from $13.03 billion in 2012 to $12.9 billion in 2013.
Community Health Systems (CYH) has grown its hospital count rapidly in the last three decades. Today, it has the largest hospital network in the US.
The Patient Protection and Affordable Care Act (or ACA), passed in 2010, has led to a spike in transaction activity in the U.S. hospital industry.
The hospital industry constitutes about 30% of total national healthcare spending. This trend is expected to continue. The industry is tilted more towards the non-profit ownership type, with fewer publicly listed for-profit hospitals.
Capital projects in the hospital sector include purchasing new facilities, purchasing medical equipment, renovating and replacing existing hospitals, and investing in information systems infrastructure.
Hospital profits are affected by hospitals’ revenues and costs. These, in turn, depend on the number of patients and the severity of patients’ ailments, which finally determines the prices that hospitals charge for their services.
Government programs Government programs like Medicare and Medicaid, combined with other health insurance plans such as the Children’s Health Insurance Program (or CHIP), Department of Defense, and Department of Veterans…
Medical supplies account for 17% of total hospital expenses. As this constitutes a substantial portion of the total cost structure, hospitals tend to focus on their supply chain to remove inefficiencies and reduce costs.
According to the American Hospital Association (the AHA), uncompensated care costs in 2013 amounted to about $49 billion. Bad debt expenses closely relate to unemployment levels and the total number of uninsured people.
An overview of teaching hospitals can help you predict future trends in hospital industry workforce management and, finally, the companies’ overall expenses.
You can break down average hospital costs into salary expenses, supply expenses, bad debt expenses, and miscellaneous expenses. Labor costs account for about 49% of expenses, and they’re the biggest expenses for hospitals.