Larry Robbins

Larry Robbins’ Glenview Capital now owns a 8.39% stake in Community Health Systems (NYSE:CYH). The stake of 7,649,773 is worth approximately $230 million.  Prior to this filing, Glenview Capital owned 1.79% of Community Health Systems (NYSE:CYH), or 1,633,151 shares, as the hedge fund reported on its 13F for the third quarter of 2012.

Based in Franklin Tennessee, Community Health Systems (NYSE:CYH) is an operator of hospitals.

Community Health Systems (NYSE:CYH) filed its quarterly statement on form 10-Q for the third quarter on November 1, 2012, some highlights from the quarterly earnings below:

Same-facility adjusted EBITDA increased 3.9% to $481 million and margins were flat y/y and q/q at 15.7%; however, excluding $30.6 million of HITECH revenue in 3Q12 and $40.2 million in 3Q11, organic EBITDA grew a solid 6.5% y/y with margins increasing 36 basis points (bp) to 14.7%. If one were to add back the associated expenses to achieve HITECH revenues ($12.4 million in operating expense in 3Q12, $3.4 million in 3Q11), Community’s same-store adjusted EBITDA grew 8.6% y/y.

On the conference call, management noted that same-facility total operating expenses were flat y/y, with improvements in payroll and supplies, with supplies benefitting from continued improvement in pharmacy and implant expenses. Management also cited the one less workday in 3Q12 having the following negative impacts: 40 bp to admissions, 60 bp to adjusted admissions, and 130 bp to surgeries. Community also continued its heavy physician recruiting (similar to 1H12), having hired 1,644 physicians YTD versus 1,362 last year (+21%).

For the nine months ended 30 September 2012, Community Health Systems revenues increased 10% to $11.23B. Net income before extraordinary items decreased 10% to $203.5M. Revenues reflect Hospital Operations segment increase of 10% to $9.54B, Patient Days increase of 52% to 2.3M. Net income was offset by Salaries and Benefits increase of 9% to $4.55B (expense).

Disclosure: No position