CHS posts $58M net loss in Q1, divests 5 hospitals: 7 things to know

Franklin, Tenn.-based Community Health Systems reported an operating income of $281 million (9.5% margin) on revenues of $3 billion in the first quarter of 2026, down slightly from a $284 million operating gain (9% margin) in the same period last year.

However, after interest payments on debt and other expenses, CHS reported a net loss of $58 million in the first quarter, compared to a $13 million loss in the first quarter of 2025.

“We are pleased with the continued, tangible progress on our key priorities, demonstrated by improvements in quality scores, patient experience and physician satisfaction measures, and investments in growth opportunities,” CEO Kevin Hammons said in an April 21 news release. “In the face of a dynamic macroeconomic environment, we remain focused on the variables within our control and believe we are positioning the company for long-term success and value creation.”

Seven things to know:

1. Adjusted EBITDA was $309 million in Q1 2026, down from $376 million in the same period of 2025 — a 17.8% decline. CHS attributed the decrease primarily to divestitures, lower same-store volumes and an unfavorable change in payor mix, partially offset by increased reimbursement rates and a higher net benefit from supplemental reimbursement programs.

2. On a same-store basis, admissions decreased 1.3% and adjusted admissions decreased 0.5% compared to the same period in 2025. Total admissions dropped 10.8% and adjusted admissions fell 10.5%, reflecting the impact of recent hospital divestitures.

3. CHS divested three hospitals and its 80% ownership interest in a fourth hospital, all effective Feb. 1, and divested a fifth hospital effective April 1. In March, CHS also signed a definitive agreement to sell four Arkansas hospitals to Joplin, Mo.-based Freeman Health System for $112 million.

4. Net cash used in operating activities was $297 million in Q1 2026, up from $120 million in the same period of 2025 — a swing of more than $417 million.

5. On Feb. 2, CHS exercised a special call provision to redeem approximately $223 million in principal amount — 10% of the original principal — of its 10.875% senior secured notes due 2032, at a redemption price of 103% of par plus accrued interest. The transaction generated a pre-tax loss from early debt extinguishment of approximately $8 million.

6. As of March 31, 2026, CHS’ long term debt was $10.1 billion.

7. CHS currently operates 64 affiliated hospitals with more than 9,000 beds and more than 900 sites of care across 33 markets in 13 states — down from 70 hospitals and 14 states at the close of Q3 2025. The company reaffirmed its full-year 2026 earnings guidance, noting assumptions from its Feb. 18 guidance release remain unchanged.

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