Community Health Systems, Inc. (CYH)

In the past six months, several events have impacted Community Health Systems, Inc.'s stock price. The company reported Q3 2025 earnings per share (EPS) of $1.27, significantly beating the analyst consensus, leading to a stock surge of 19.48%. CHS completed the sale of select assets of its ambulatory outreach laboratory services to Labcorp for approximately $194 million in cash. Community Health Systems announced a definitive agreement to sell three Pennsylvania hospitals to affiliates of Tenor Health Foundation. Subsidiaries of CHS entered into a definitive agreement to sell their 80% ownership interests in Tennova Healthcare - Clarksville to Vanderbilt University Medical Center (VUMC) for $600 million. CHS reported a net loss of $70 million for Q4 2024, but beat on revenue with $3.26 billion. Community Health Systems reported a Q1 2025 net loss of $(13) million, or $(0.10) per share, an improvement from a net loss of $(41) million, or $(0.32) per share, in Q1 2024, and the stock price jumped 24.49% post-earnings. The company announced net operating revenues of $3.133 billion and net income attributable to stockholders was $282 million, or $2.09 per share (diluted).

Demand for Community Health Systems' products and services exhibits some seasonality. The company generally expects "normal seasonality improvements in the fourth quarter." A heavier flu season influenced performance in the first quarter of 2025, leading to increased same-store admissions and adjusted admissions. The second quarter of 2025 saw an unexpected slowdown in commercial elective procedures, attributed to "external factors" such as decreased consumer confidence and fears within the immigrant community in some markets.

Community Health Systems, Inc. (CYH) is a healthcare company focused on acute care hospital operations in the United States. It operates in the Healthcare Facilities & Services sector and owns or leases approximately 70 affiliated hospitals with over 10,000 beds and manages more than 1,000 sites of care. CHS provides a range of medical services, including acute care, emergency services, surgery, critical care, internal medicine, obstetrics, diagnostic services, psychiatric and rehabilitation services. Additionally, CHS offers skilled nursing, home care, and operates outpatient facilities such as physician practices and urgent care centers.

Community Health Systems, Inc. operates healthcare delivery systems in 36 distinct markets across 14 states. The company's headquarters are located in Franklin, Tennessee. Historically, Florida, Texas, and Indiana have been identified as areas of geographic concentration.

Community Health Systems has generally built a strong brand reputation over its years in the healthcare industry, with patients trusting the organization for its quality healthcare services and commitment to patient care. However, certain events could have impacted its reputation. S&P Global downgraded CHS's issuer credit rating from "CCC+" to "SD" (selective default) following a discounted repurchase of $625 million in outstanding debt. The company has experienced significant increases in initial denials and downgrades by managed care plans, particularly in the Medicare Advantage sector, and medical specialist fees, especially for anesthesia services, have risen sharply.

Community Health Systems, Inc. (CYH) is primarily owned by institutional shareholders, who hold approximately 80.09% to 84.99% of the stock, while individual investors hold about 8.68% of the shares. Major institutional owners include Apollo Management Holdings, L.P., CastleKnight Management LP, BlackRock, Inc., Vanguard Group Inc, Nomura Holdings Inc, Eversept Partners, LP, D. E. Shaw & Co., Inc., Geode Capital Management, Llc and State Street Corp. Notable individual owners include Glenview Capital Management LLC, holding 17.26% of the company's shares, and Tian Qiao Chen, with a 16.06% stake. Wayne T. Smith, the Chairman, also holds a significant number of shares.