Community Health Systems Inc
SWB:CG5
Community Health Systems Inc
Community Health Systems, Inc. engages in the management and operations of hospitals. The company is headquartered in Franklin, Tennessee and currently employs 66,000 full-time employees. The firm provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The Services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The company also provides additional outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, retail clinics and via direct-to-consumer virtual health visits. The company owns approximately 83 hospitals, comprised of 81 general acute care hospitals and two stand-alone rehabilitation or psychiatric hospitals.
Community Health Systems, Inc. engages in the management and operations of hospitals. The company is headquartered in Franklin, Tennessee and currently employs 66,000 full-time employees. The firm provides healthcare services through the hospitals that it owns and operates and affiliated businesses in non-urban and selected urban markets throughout the United States. The Services provided through its hospitals and affiliated businesses include general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric and rehabilitation services. The company also provides additional outpatient services at primary care practices, urgent care centers, free-standing emergency departments, ambulatory surgery centers, imaging and diagnostic centers, retail clinics and via direct-to-consumer virtual health visits. The company owns approximately 83 hospitals, comprised of 81 general acute care hospitals and two stand-alone rehabilitation or psychiatric hospitals.
Performance: Fourth quarter results were in line with updated expectations, with sequential margin expansion and stable cost controls.
Revenue: Same-store net revenue grew 2.1% year-over-year, mainly due to higher acuity and a 2.4% increase in net revenue per adjusted admission.
Divestitures: Significant hospital and asset sales in 2025 and early 2026 reduced debt and are expected to further strengthen the balance sheet.
Leverage: Year-end 2025 leverage improved to 6.6x from 7.4x in 2024; further deleveraging planned with upcoming divestiture proceeds.
2026 Guidance: Net revenue expected between $11.6B and $12.0B, with adjusted EBITDA of $1.34B to $1.49B—both below 2025 due to asset sales.
Cost Controls: Labor and supply expenses were well managed, with supply expense down 110 bps YoY and contract labor flat.
ACA Headwinds: Anticipated $20M–$30M EBITDA headwind in 2026 from lower health insurance exchange enrollment, but overall impact expected to be limited.
AI & Technology: Continued investment in AI and new ERP systems to drive efficiencies, cost savings, and quality improvements.
