CHS CFO Says Payer Claims Payment Delays Have Stabilized
Community Health Systems CFO Jason Johnson said on the Oct. 29 third-quarter earnings call that longer payer payment timelines, first flagged in July as insurers increased pre-payment audits and records requests, have not worsened and have held steady since June. He called the delays a timing issue rather than a collection problem, noting days in accounts receivable stayed consistent quarter over quarter. Despite the slowdown, cash from operations improved to $168 million from $121 million a year earlier, helped by better accounts payable management and collection timing that included state-directed payments. CHS posted an $86 million net loss in the quarter as net operating revenue fell 11% to $2.8 billion following divestitures, though same-store revenue grew 3.8%.