Quorum Health Corporation announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. Net operating revenues for the three months ended September 30, 2017 decreased $44.6 million to $499.3 million, compared to $543.9 million for the same period in 2016. Net loss attributable to company for the three months ended September 30, 2017 was $29.2 million, or $1.03 per basic and diluted share, compared to $7.0 million, or $0.24 per basic and diluted share, for the same period in 2016. The net loss for the three months ended September 30, 2017 was impacted by an $8.8 million decrease, net of provider taxes, related to the California HQAF program and $5.3 million of impairment charges related to certain hospitals intended for divestiture. Adjusted EBITDA for the three months ended September 30, 2017 was $32.3 million, compared to $46.7 million for the same period in 2016. Adjusted EBITDA was negatively impacted by the Company's inability to accrue for the California HQAF program in the 2017 period. The divested hospitals negatively impacted EBITDA by $4.7 million and $7.0 million for the three months ended September 30, 2017 and 2016, respectively. As a result, Adjusted EBITDA, Adjusted for Divestitures, was $36.9 million and $53.8 million for the three months ended September 30, 2017 and 2016, respectively. Income from operations was $3.120 million against $17.495 million a year ago. Loss before income taxes was $29.096 million against $10.533 million a year ago. Net cash provided by operating activities was $9.744 million against net cash used in operating activities of $0.427 million a year ago. Capital expenditures for property and equipment were $11.525 million against $23.241 million a year ago. Capital expenditures for software were $3.005 million against $1.454 million a year ago. EBITDA was $23.855 million against $45.729 million a year ago.

Net operating revenues for the nine months ended September 30, 2017 decreased $66.1 million to $1,557.1 million, compared to $1,623.2 million for the same period in 2016. Net operating revenues decreased $63.6 million related to the two hospitals divested in December 2016 and the four hospitals divested in the first nine months of 2017, and decreased $33.9 million due to the inability to accrue revenues related to the California HQAF program. Net loss attributable to company for the nine months ended September 30, 2017 was $87.4 million, or $3.11 per basic and diluted share, compared to $257.0 million, or $9.05 per basic and diluted share, for the same period in 2016. Adjusted EBITDA for the nine months ended September 30, 2017 was $92.8 million, compared to $132.2 million for the same period in 2016. Adjusted EBITDA was negatively impacted by the Company's inability to accrue for the California HQAF program in the 2017 period The divested hospitals negatively impacted EBITDA by $13.6 million and $18.5 million for the nine months ended September 30, 2017 and 2016, respectively. As a result, Adjusted EBITDA, Adjusted for Divestitures, was $106.4 million and $150.7 million for the nine months ended September 30, 2017 and 2016, respectively. Income from operations was $3.784 million against loss of $220.669 million a year ago. Loss before income taxes was $86.420 million against $305.425 million a year ago. Net cash provided by operating activities was $0.789 million against $60.766 million a year ago. Capital expenditures for property and equipment were $50.667 million against $56.448 million a year ago. Capital expenditures for software were $6.174 million against $5.258 million a year ago. EBITDA was $32.268 million against $46.749 million a year ago.

For the quarter, the company reported impairment of long-lived assets and goodwill of $5.261 million.

The company expects net operating revenues for the year ending December 31, 2017 to range from $2.055 billion to $2.065 billion. The company expects Adjusted EBITDA for the year ending December 31, 2017 to range from $140 million to $150 million and Adjusted EBITDA, Adjusted for Divestitures through December 31, 2017 to range from $160 million to $170 million. The guidance for Adjusted EBITDA gives effect to: (i) the approval of the California Department of Health Care Services' HQAF Program by CMS, which it estimate to be approved in the fourth quarter of 2017 at approximately $22 million, approximately $13 million less than 2016, (ii) the reduction of approximately $7 million in electronic health records incentives earned in 2017 compared to the 2016 amounts, (iii) the inclusion of approximately $11 million to $13 million of non-cash stock-based compensation and other non-cash benefits expense and approximately $20 million to $25 million of non-cash insurance expense, and (iv) no estimate for the effects of any changes to the Affordable Care Act, its interpretation or its implementation.