Community Health Systems Inc. (NYSE: CYH) reported strong Q3 2025 results and outlined plans for continued investment in ambulatory care during its quarterly earnings conference call on Oct. 24.
That includes opening more surgery centers in the not-too-distant future.
CHS leaders discussed a positive finish to 2025, with net operating revenues so far exceeding $3 billion.
While these revenues decreased by 0.1% compared to the same period in 2024, they increased by 6% on a same-store basis. Adjusted EBITDA for the quarter was $376 million, up from $347 million in the same period last year.
In 2025, the company divested its 50% stake in two hospitals, its 80% stake in one hospital, and its ownership in three other hospitals.
“We were pleased with our operating and financial results for the quarter, which generally met our expectations,” Kevin J. Hammons, president and interim CEO, said in a statement. “The refinancing we completed in August, along with completed and pending divestitures, provides additional runway and liquidity to continue executing our strategic initiatives and further deleverage. I also want to acknowledge the commitment and confidence of the CHS team members as we navigate through the recent transition in senior leadership.”
Tim Hingten retired from his roles as CEO and board member on Sept. 30. As a result, Hammons, who was president and chief financial officer, assumed the interim CEO role. Jason K. Johnson, who was senior vice president and chief accounting officer, became interim CFO.
On July 22, the company signed a definitive agreement with Laboratory Corporation of America Holdings, under which Labcorp will acquire select assets and assume certain leases of the ambulatory outreach business of the company’s subsidiaries in 13 states. This includes specific patient service centers and in-office phlebotomy locations. The total purchase price at closing is $195 million.
Regarding the company’s divestiture of Tennova Healthcare – Cleveland, completed on Aug. 1, 2024, the company reported approximately $91 million in additional cash due to changes in applicable supplemental reimbursement programs.
Specifically, regarding its ambulatory surgery center (ASC) business, Hammons said the company is continuing to look at access points and has been investing in them for some time.
“Each market is a little different,” he said. “As we move through 2025 and into 2026, more of our dollars will be focused on these access points, whether that’s urgent care, free-standing emergency departments, ASCs and the like.”
Hammons further stated that the company plans to open three ASCs in Q4 and aims to establish six to eight additional ASCs in 2026.
Community Health Systems Inc., headquartered in Franklin, Tennessee, is one of the largest health care companies in the U.S., operating in 36 districts across 14 states.
As of Oct. 23, the company’s subsidiaries own or lease 70 affiliated hospitals with over 10,000 beds and manage more than 1,000 health care sites, including physician practices, urgent care centers, standalone emergency departments, occupational medicine clinics, imaging centers, cancer centers and ASCs.
