Community Health Shares Dive on Probe, Profit Warning

It received a second subpoena from federal investigators

   

hospital-emergency-sign_250x150Shares of Community Health Care Systems (CYH) tumbled more than 8% in Friday morning trading after the company trimmed its annual earnings outlook.

The nation’s second largest hospital system said admission volume was less than expected at its facilities. It also noted a rise in delinquent debts. CYH now projects income from continuing operations of between $2.95 and $3.25 a share for the year. That is well below the $3.65 a share that Wall Street had been expecting, Bloomberg notes.

Healthcare Trend: More Doctors Selling Their Practices
Healthcare Trend: More Doctors Selling Their Practices

In addition to falling admissions, CYH, which operates 135 hospitals across 29 states, says that it received a second subpoena from federal regulators who are investigating its Medicare and Medicaid billing practices.

Federal authorities first subpoenaed its billing records in connected with the investigation in 2011.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/community-health-shares-dive-on-probe-profit-warning/.

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