Community Health Systems profit falls, outlook lowered
Oct 30 (Reuters) - Community Health Systems Inc reported sharply lower quarterly net profit on Wednesday due to a $98 million charge to cover eventual settlement of a U.S. government investigation into its Medicare admissions between 2005 and 2010.
The company also lowered its full-year earnings outlook, citing ongoing volume weakness.
For the third quarter, the hospital operator reported net income of $4.1 million, or 4 cents a share, compared with $44.2 million, or 49 cents a share, a year earlier.
Community Health said it is still in negotiations with the Department of Justice but believes that the reserve is sufficient to cover the claims and other related legal expenses.
The company said total admissions for the third quarter fell 6.8 percent, while net operating revenue rose by less than 1 percent to $3.22 billion.
For the full year, Community Health said it expects adjusted earnings of $2.85 to $3.10 per share, down from a previous forecast of $2.95 to $3.25. Analysts had forecast 2013 earnings per share of $2.96.