Community Health Systems Inc., the Tennessee-based hospital operator that owns Rockwood Health System in Spokane, has reported a $1.43 billion second-quarter loss, compared with net income of $111 million for the same period last year.

Noncash goodwill impairment charges recorded by the company accounted for virtually the entire loss. They included charges of $1.4 billion to reflect the diminished value of goodwill of hospitals that CHS is keeping, $169 million for hospitals the company is trying to sell, and $70 million for some underperforming hospitals.

Goodwill, in this context, refers to intangible assets on a company’s balance sheet, and goodwill impairment refers to the mandated process of reducing the “carrying” value of those assets, when necessary, to match their fair market price.

The company said its revenue in the second quarter decreased to $459 billion, down 6 percent from $488 billion in the year-earlier period. Company earnings before interest, depreciation, and amortization fell to $563 million, down 27 percent from the prior-year quarter’s $769 million. 

Net cash from operating activities slumped to $388 million in the latest quarter, down from $565 million in the year-earlier period.

The company said hospital admissions fell 9 percent for the second quarter.

CHS recently cut its hospital portfolio by about 20 percent, with the completed spinoff in April of 38 rural hospitals into a new publicly traded company, Quorum Health Corp. 

In its second quarter earnings call, company CEO Wayne Smith told analysts and investors a delay in the spinoff impacted performance in the latest quarter, as executives focused on the Quorum deal had to devote “considerable resources” to the process, slowing other operational initiatives.

Smith told analysists on the call that CHS is working on five transactions to shed another 12 hospitals from the company, which is two more hospitals than the company had indicated in May that it would sell. Smith said CHS expects to complete the transactions this year. 

Although the company declines to name the hospitals for sale, it has stated the hospitals for sale are generally underperforming.

In the company’s earnings release, Smith said, “While our operating performance fell short of expectations this period, our management team and local operators are aggressively pursuing key initiatives and growth opportunities in markets where we believe we have the greatest potential to generate better operational and financial results.”

CHS is one of the largest publicly traded hospital companies in the nation. Factoring in the earlier mentioned spinoff, the company—through its subsidiaries—now owns, leases, or operates 159 affiliated hospitals in 22 states with a total of nearly 27,000 licensed beds.