Community Health Systems (NYSE: CYH) said yesterday its first quarter profits increased to $60.1 million or 63 cents a share, while bad debt expense also improved as a percent of net operating expense.

CHS became the nation’s largest investor-owned hospital last year after it bought Triad Hospitals. The Franklin, Tenn.-based chain said the 10.7 percent increase in net income was due mostly to an after tax gain from the sale of several of its hospitals. However, income from continuing operations fell to $52 million, or 54 cents per share, compared with $57 million, or 61 cents per share, a year earlier.

The impact of the Triad purchase was reflected in revenues. CHS said its revenues rose 136 percent to $2.7 billion compared with nearly $1.2 billion during the year ago period.  Admissions increased more than 111 percent compared with the same period last year.  Admissions at hospitals open a year increased 3.8 percent while adjusted admissions to reflect the Triad purchase increased 3.8 percent, compared with the same period last year.

CHS said it set aside $297.1 million for bad debt during the quarter, or 10.9 percent of net operating revenue. During the year ago period, it set aside $128.9, million, or 11.1 percent of net operating revenue, prior to completing the Triad takeover.

CHS reaffirmed 2008 income from continuing operations, estimating earnings in the range of $2.25 to $2.45 per share.