Question · Q3 2025
Charlie Mitchell, on behalf of Stephen Baxter, asked about the drivers behind the 5.6% growth in same-store revenue per adjusted admission and what Community Health Systems considers a sustainable rate for this metric.
Answer
Jason Johnson, Interim CFO, explained that approximately one-third of the 5.6% improvement in same-store net revenue per adjusted admission resulted from the Tennessee and New Mexico state-directed payment programs approved in Q2 2025, with the remainder driven by payer mix improvement, partially offset by lower acuity. Kevin Hammons, President and Interim CEO, suggested that a mid-single-digit net revenue per adjusted admission growth is sustainable, supported by Medicare and commercial rate increases, and an expected recovery in acuity as softer outpatient surgeries (e.g., orthopedic and cardiac) return.