Community Health Systems Inc., the publicly traded, Franklin, Tenn.-based medical facilities operator that owns Rockwood Health System in Spokane, reported this week that its earnings declined in the third quarter.

CHS reported third-quarter net income attributable to common shareholders of $52 million, or 44 cents a share, down from $62 million, or 54 cents a share, in the 2014 third quarter. 

The company reported an increase, though, in net operating revenue, which reached $4.86 billion in the latest quarter, up from $4.78 billion in the year-earlier period. 

Wayne T. Smith, chairman and CEO of Community Health Systems, said in a press release, “Our financial and operating results for the third quarter of 2015 fell short of expectations and were affected by a number of factors, including volume weakness, an unfavorable shift in payer mix, and higher operating expenses, especially in some of the former HMA (Health Management Associates Inc.) hospitals.” 

CHS acquired Health Management Associates, also a large publicly traded hospital operator, in January 2014. 

Smith says the organization’s focus will be on fundamental operating strategies, including volume initiatives, expense management, productive investments, and physician recruitment.

CHS saw a 1.9 percent decline in total hospital admissions in the latest quarter, compared with the same period last year. However, total admissions adjusted for outpatient activity increased 0.2 percent.

Same-hospital admissions showed a 2.1 percent decrease and a 0.1 percent increase in admissions adjusted for outpatient activity. Meanwhile same-store net operating revenues increased by 1.2 percent in the third quarter, compared with the same period in 2014.

For the nine months ended Sept. 30, Community Health Systems’ net income attributable to Community Health Systems common stockholders was $241 million, or $2.08 a share, up sharply from a loss of $8 million, or 7 cents a share, during the same period in 2014.

Community Health Systems currently owns, leases, or operates 198 affiliated hospitals in 29 states. 

Rockwood Health System includes Deaconess Hospital, Valley Hospital, and Rockwood Clinic.  

Last summer, the company began the process of spinning off 38 small-market hospitals into a separate company called Quorum Health Corp. CHS expects to complete that transition, which didn’t include any of its Spokane-area facilities, in the first quarter of next year.