Community Health Systems Swings to a Third-Quarter Loss

The Tip Desk · November 9, 2026 · 3 min read

Adjusted EBITDA fell to $280 million as the hospital operator posted a net loss of $86 million, or $0.63 a share, and said payor mix and acuity missed its expectations.

Community Health Systems, Inc. (CYH), one of the nation’s largest healthcare companies, reported a net loss attributable to stockholders of $86 million, or $0.63 a share (diluted), for the three months ended September 30, 2026, after net income of $70 million, or $0.51 a share, in the prior quarter.

A year earlier the company had earned $130 million, or $0.96 a share. Excluding adjusting items, the loss was $0.48 a share, versus net income of $1.27 a share in the year-ago quarter.

Net operating revenues were $2.757 billion, down 10.7% from $3.087 billion a year earlier, after a 9.8% year-over-year decline in the second quarter. On a same-store basis, net operating revenues increased 3.8%, up from a 2.4% same-store increase in the prior quarter.

Consolidated admissions fell 12.3% and adjusted admissions fell 11.9% versus the year-ago quarter. Same-store admissions rose 2.2% and same-store adjusted admissions rose 3.6%. Occupancy on average beds in service was 51.1%.

Adjusted EBITDA declined to $280 million from $330 million in the second quarter and from $376 million a year earlier. Adjusted EBITDA as a percentage of net operating revenues compressed to 10.2% from 12.2% a year earlier. Income from operations fell to $146 million, or 5.3% of net operating revenues, from $243 million, or 7.9% of revenues, a year earlier.

The company said the year-over-year decline in Adjusted EBITDA was primarily attributable to divestitures, an unfavorable change in payor mix, a decline in non-patient revenue resulting primarily from the receipt of $28 million for the settlement of a legal matter in the year-ago quarter, and higher medical specialist fees and supplemental reimbursement program expense, partially offset by increased volumes and reimbursement rates.

Chief executive officer Kevin J. Hammons said volume trends and cash flow improved sequentially in the third quarter, while payor mix and acuity did not develop as expected due to the challenging macro environment, negatively impacting financial results for the third quarter and the company’s expectations for the remainder of the year.

Net cash provided by operating activities was $155 million, up from $87 million in the second quarter. Cash and cash equivalents were $155 million at September 30, 2026.

During 2026 through the date of the release, the company divested its 80% ownership interest in one hospital, completed February 1, 2026, and nine other hospitals, with closings on February 1, April 1, June 1, and October 1, 2026. Same-store results exclude businesses divested prior to September 30, 2026. As of October 28, 2026, subsidiaries owned or leased 59 affiliated hospitals with more than 8,000 beds and operated more than 800 sites of care.

For the nine months ended September 30, 2026, net operating revenues were $8.547 billion, down 8.9% from $9.379 billion a year earlier. Same-store net operating revenues increased 2.9%. Net loss attributable to stockholders was $74 million, or $0.55 a share, compared with net income of $399 million, or $2.97 a share, a year earlier. Adjusted EBITDA was $918 million. Net cash used in operating activities was $55 million.