Revenue during the quarter dropped 6.86 percent to $4,469 million from $4,798 million in the previous year period. Gross margin for the quarter contracted 22 basis points over the previous year period to 83.67 percent. Total expenses were 98.32 percent of quarterly revenues, up from 96.96 percent for the same period last year. That has resulted in a contraction of 136 basis points in operating margin to 1.68 percent.

Operating income for the quarter was $75 million, compared with $146 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $564 million compared with $527 million in the prior year period. At the same time, adjusted EBITDA margin improved 164 basis points in the quarter to 12.62 percent from 10.98 percent in the last year period.

Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, "We concluded the year with solid results in the fourth quarter, including sequential improvements in same-store net operating revenue, adjusted EBITDA and cash flow from operations. Significant progress has been made in our work to divest certain hospitals and other operations, enabling a reduction in our debt and the opportunity to reshape our portfolio into a stronger, more sustainable organization. Moving forward in 2017 and beyond, we are intently focused on efficiency improvements in our operations, strategic initiatives that enhance growth in our markets, and portfolio optimization that reduces our total debt. Most importantly, we remain committed to providing high-quality, safe healthcare for the patients and communities we serve."

For financial year 2017, Community Health Systems projects revenue to be in the range of $15,800 million to $16,200 million. The company forecasts diluted earnings per share to be in the range of $0.30 to $1.10.

Cash flow from investing activities was $630 million from investing activities during the year as against cash outgo of $1,051 million in the last year. It has incurred net capital expenditure of $729 million on net basis during the year, down 22.28 percent or $209 million from year ago.

The company has spent $1,713 million cash to carry out financing activities during the year as against cash outgo of $195 million in the last year period.

Cash and cash equivalents stood at $238 million as on Dec. 31, 2016, up 29.35 percent or $54 million from $184 million on Dec. 31, 2015.

Working capital declines
Community Health Systems has witnessed a decline in the working capital over the last year. It stood at $1,779 million as at Dec. 31, 2016, down 15.04 percent or $315 million from $2,094 million on Dec. 31, 2015. Current ratio was at 1.62 as on Dec. 31, 2016, down from 1.68 on Dec. 31, 2015.

Days sales outstanding went down to 33 days for the quarter compared with 35 days for the same period last year.

At the same time, days payable outstanding went down to 63 days for the quarter from 75 for the same period last year.