false000110810900011081092026-04-212026-04-21

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 21, 2026

 

 

COMMUNITY HEALTH SYSTEMS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-15925

13-3893191

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

4000 Meridian Boulevard

 

Franklin, Tennessee

 

37067

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (615) 465-7000

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, $.01 par value

 

CYH

 

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

 

 

The information contained in this Current Report on Form 8-K (including the exhibits hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Item 2.02 Results of Operations and Financial Condition.

On April 21, 2026, Community Health Systems, Inc. (the “Company”) announced operating results for the first quarter ended March 31, 2026. A copy of the press release making this announcement is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 2.02.

Item 7.01 Regulation FD Disclosure.

On April 21, 2026, the Company announced operating results for the first quarter ended March 31, 2026 in a press release attached as Exhibit 99.1 to this Current Report on Form 8-K which is incorporated by reference into this Item 7.01.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number

Description

99.1

Community Health Systems, Inc. Press Release, dated April 21, 2026.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

2

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

COMMUNITY HEALTH SYSTEMS, INC.

 

 

 

 

Date:

April 21, 2026

By:

/s/ Kevin J. Hammons

 

 

 

Kevin J. Hammons
Director and Chief Executive Officer
(principal executive officer)

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ Jason K. Johnson

 

 

 

Jason K. Johnson
Executive Vice President and Chief Financial Officer
(principal financial officer)

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ Phillip A. Posey

 

 

 

Phillip A. Posey
Senior Vice President and Chief Accounting Officer
(principal accounting officer)

 

3

 

 

 

 

img258662259_0.jpg

Exhibit Number

99.1

 

Investor Contact:

Kevin Hammons

 

Director and

 

Chief Executive Officer

 

(615) 465-7000

 

COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES FIRST QUARTER

ENDED MARCH 31, 2026 RESULTS

 

 

FRANKLIN, Tenn. (April 21, 2026) – Community Health Systems, Inc. (NYSE: CYH) (the “Company”) today announced financial and operating results for the three months ended March 31, 2026.

 

The following highlights the financial and operating results for the three months ended March 31, 2026.

 

•
Net operating revenues totaled $2.965 billion.
•
Net loss attributable to Community Health Systems, Inc. stockholders was $(58) million, or $(0.43) per share (diluted), compared to $(13) million, or $(0.10) per share (diluted), for the same period in 2025. Excluding the adjusting items as presented in the table in footnote (e) on page 12, net loss attributable to Community Health Systems, Inc. stockholders was $(0.48) per share (diluted), compared to $(0.03) per share (diluted) for the same period in 2025.
•
Adjusted EBITDA was $309 million.
•
Net cash used in operating activities was $297 million for the three months ended March 31, 2026, compared to net cash provided by operating activities of $120 million for the same period in 2025.
•
On a same-store basis, admissions decreased 1.3 percent and adjusted admissions decreased 0.5 percent, compared to the same period in 2025.
•
Redeemed approximately $223 million, in principal amount, of the Company’s 10.875% Senior Secured Notes due 2032 by exercising a special call provision.

 

Commenting on the results, Kevin J. Hammons, chief executive officer of Community Health Systems, Inc., said, “We are pleased with the continued, tangible progress on our key priorities, demonstrated by improvements in quality scores, patient experience and physician satisfaction measures, and investments in growth opportunities. In the face of a dynamic macroeconomic environment, we remain focused on the variables within our control and believe we are positioning the Company for long-term success and value creation.”

 

Three Months Ended March 31, 2026

 

Net operating revenues for the three months ended March 31, 2026, totaled $2.965 billion, a 6.1 percent decrease compared to $3.159 billion for the same period in 2025. On a same-store basis, net operating revenues increased 3.1 percent for the three months ended March 31, 2026, compared to the same period in 2025. Net operating revenues for the three months ended March 31, 2026, reflect a 10.8 percent decrease in admissions and a 10.5 percent decrease in adjusted admissions, compared to the same period in 2025. On a same-store basis, admissions decreased 1.3 percent and adjusted admissions decreased 0.5 percent for the three months ended March 31, 2026, compared to the same period in 2025.

 

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CYH Announces First Quarter 2026 Results

Page 2

April 21, 2026

 

Net loss attributable to Community Health Systems, Inc. stockholders was $(58) million, or $(0.43) per share (diluted), for the three months ended March 31, 2026, compared to $(13) million, or $(0.10) per share (diluted), for the same period in 2025. Excluding the adjusting items as presented in the table in footnote (e) on page 12, net loss attributable to Community Health Systems, Inc. stockholders was $(0.48) per share (diluted) for the three months ended March 31, 2026, compared to $(0.03) per share (diluted) for the same period in 2025.

 

Adjusted EBITDA for the three months ended March 31, 2026, was $309 million compared to $376 million for the same period in 2025.

 

Net loss attributable to Community Health Systems, Inc. stockholders for the three months ended March 31, 2026, increased when compared to the net loss for the same period in 2025, primarily due to divestitures, lower same-store volumes, an unfavorable change in payor mix, a period-over-period change in loss from early extinguishment of debt and an increase in the provision for income taxes, partially offset by increased reimbursement rates, a higher net benefit from supplemental reimbursement programs and a period-over-period change in impairment and (gain) loss on sale of businesses. The decrease in Adjusted EBITDA for the three months ended March 31, 2026, compared to the same period in 2025, is primarily due to divestitures, lower same-store volumes and an unfavorable change in payor mix, partially offset by increased reimbursement rates and a higher net benefit from supplemental reimbursement programs.

 

Other

 

On February 2, 2026, the Company exercised a special call provision to redeem 10% of the original principal amount, or approximately $223 million, of its 10.875% Senior Secured Notes due 2032, at a redemption price of 103% of the principal amount, plus accrued and unpaid interest. A pre-tax loss from early extinguishment of debt of approximately $8 million was recognized associated with this redemption.

 

During 2026, through the date of this press release, the Company divested three hospitals as well as its 80% ownership interest in one other hospital, all effective on February 1, 2026, and divested one other hospital, effective April 1, 2026.

 

On March 5, 2026, the Company entered into a definitive agreement pursuant to which Freeman-Oak Hill Health System (d/b/a Freeman Health System) agreed to acquire substantially all of the assets, and assume certain liabilities from the Company, related to Northwest Medical Center – Bentonville (128 licensed beds), in Bentonville, Arkansas, Northwest Medical Center – Springdale (222 licensed beds) in Springdale, Arkansas, Northwest Medical Center – Willow Creek Women’s Hospital (64 licensed beds) in Johnson, Arkansas, and Siloam Springs Regional Hospital (73 licensed beds) in Siloam Springs, Arkansas, and the associated outpatient centers and practices, for $112 million in cash, subject to adjustment for net working capital and any finance leases assumed. For additional information about this transaction, see the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on March 5, 2026.

Financial and statistical data presented in this press release includes the operating results of divested or closed businesses for the periods prior to the consummation of the respective divestiture or closure. Same-store operating results and statistical information include operating results of businesses operated in the comparable current year and prior year periods, and exclude businesses divested prior to March 31, 2026.

 

Information About Non-GAAP Financial Measures

 

This press release presents Adjusted EBITDA, a non-GAAP financial measure, which is EBITDA adjusted to add back net income attributable to noncontrolling interests and to exclude loss (gain) from early extinguishment of debt, impairment and (gain) loss on sale of businesses, expense related to the Business Transformation Costs (as defined in footnote (c) to the Financial Highlights, Financial Statements and Selected Operating Data below), expense related to government and other legal matters and related costs, expense related to employee termination benefits and other restructuring charges, and the impact of a change in estimate to increase the professional liability claims accrual recorded during the third quarter of 2024. For information regarding why the Company believes Adjusted EBITDA provides useful information to investors, and for

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CYH Announces First Quarter 2026 Results

Page 3

April 21, 2026

 

a reconciliation of Adjusted EBITDA to net loss attributable to Community Health Systems, Inc. stockholders, see footnote (c) to the Financial Highlights, Financial Statements and Selected Operating Data below.

 

Additionally, this press release presents adjusted net loss attributable to Community Health Systems, Inc. stockholders per share (diluted), a non-GAAP financial measure, to reflect the impact on net loss attributable to Community Health Systems, Inc. stockholders per share (diluted) from the selected items used in the calculation of Adjusted EBITDA. For information regarding why the Company believes this non-GAAP financial measure provides useful information to investors, and for a reconciliation of this non-GAAP financial measure to net loss attributable to Community Health Systems, Inc. stockholders per share (diluted), see footnote (e) to the Financial Highlights, Financial Statements and Selected Operating Data below.

 

The non-GAAP financial measures set forth above are not measurements of financial performance under U.S. GAAP, and should not be considered in isolation or as a substitute for any financial measure calculated in accordance with U.S. GAAP. Additionally, the calculation of these non-GAAP financial measures may not be comparable to similarly titled measures disclosed by other companies.

 

The Company’s annual earnings guidance for 2026, as provided in its press release issued on February 18, 2026, is reaffirmed. The 2026 guidance is based on the Company’s historical operating performance, current trends and other assumptions the Company believes are reasonable. Assumptions underlying the annual earnings guidance as provided in the Company’s press release issued on February 18, 2026 are unchanged.

 

About Community Health Systems, Inc.

 

Community Health Systems, Inc. is one of the nation’s largest healthcare companies. The Company’s affiliates are leading providers of healthcare services, developing and operating healthcare delivery systems in 33 distinct markets across 13 states. As of April 21, 2026, the Company’s subsidiaries own or lease 64 affiliated hospitals with more than 9,000 beds and operate more than 900 sites of care, including physician practices, urgent care centers, freestanding emergency departments, occupational medicine clinics, imaging centers, cancer centers and ambulatory surgery centers.

 

The Company’s headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.” More information about the Company can be found on its website at www.chs.net.

 

Community Health Systems, Inc. will hold a conference call on Wednesday, April 22, 2026 at 10:00 a.m. Central, 11:00 a.m. Eastern, to review financial and operating results for the first quarter ended March 31, 2026. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the Investor Presentations and Webcasts link of the Company’s Investor Relations website at www.chs.net/investor-relations. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will continue to be available for approximately 30 days. Copies of this press release and conference call slide show, as well as the Company’s Current Report on Form 8-K (including this press release), will be available on the Company’s website at www.chs.net.

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CYH Announces First Quarter 2026 Results

Page 4

April 21, 2026

 

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES

Financial Highlights (a)(b)

(In millions, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

 

March 31,

 

 

2026

 

 

2025

 

 

 

 

 

 

 

 

 

Net operating revenues

$

 

2,965

 

 

$

 

3,159

 

Net (loss) income (f)

 

 

(25

)

 

 

 

25

 

Net loss attributable to Community
   Health Systems, Inc. stockholders

 

 

(58

)

 

 

 

(13

)

Adjusted EBITDA (c)

 

 

309

 

 

 

 

376

 

Net cash (used in) provided by operating activities

 

 

(297

)

 

 

 

120

 

 

 

 

 

 

 

 

 

Loss per share attributable to
   Community Health Systems, Inc.
   stockholders:

 

 

 

 

 

 

 

Basic (f)

$

 

(0.43

)

 

$

 

(0.10

)

Diluted (e), (f)

 

 

(0.43

)

 

 

 

(0.10

)

 

 

 

 

 

 

 

 

Weighted-average number of shares
   outstanding (d):

 

 

 

 

 

 

 

Basic

 

 

134

 

 

 

 

133

 

Diluted

 

 

134

 

 

 

 

133

 

 

For footnotes, see pages 10, 11 and 12.

 

 

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CYH Announces First Quarter 2026 Results

Page 5

April 21, 2026

 

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Loss (a)(b)

(In millions, except per share amounts)

(Unaudited)

 

 

Three Months Ended March 31,

 

2026

 

2025

 

 

 

 

 

% of Net

 

 

 

 

 

% of Net

 

 

 

 

 

Operating

 

 

 

 

 

Operating

 

Amount

 

 

Revenues

 

Amount

 

 

Revenues

Net operating revenues

$

 

2,965

 

 

 

100.0

 

%

 

$

 

3,159

 

 

 

100.0

 

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

1,322

 

 

 

44.6

 

%

 

 

 

1,372

 

 

 

43.4

 

%

Supplies

 

 

441

 

 

 

14.9

 

%

 

 

 

489

 

 

 

15.5

 

%

Other operating expenses

 

 

828

 

 

 

27.9

 

%

 

 

 

865

 

 

 

27.4

 

%

Lease cost and rent

 

 

69

 

 

 

2.3

 

%

 

 

 

68

 

 

 

2.2

 

%

Depreciation and amortization

 

 

114

 

 

 

3.8

 

%

 

 

 

105

 

 

 

3.3

 

%

Impairment and (gain) loss on sale of businesses, net (f)

 

 

(90

)

 

 

(3.0

)

%

 

 

 

(24

)

 

 

(0.8

)

%

Total operating expenses

 

 

2,684

 

 

 

90.5

 

%

 

 

 

2,875

 

 

 

91.0

 

%

Income from operations (f)

 

 

281

 

 

 

9.5

 

%

 

 

 

284

 

 

 

9.0

 

%

Interest expense, net

 

 

213

 

 

 

7.1

 

%

 

 

 

219

 

 

 

7.0

 

%

Loss from early extinguishment of debt

 

 

8

 

 

 

0.3

 

%

 

 

 

-

 

 

 

-

 

%

Equity in earnings of unconsolidated affiliates

 

 

(4

)

 

 

(0.1

)

%

 

 

 

(2

)

 

 

(0.1

)

%

Income before income taxes

 

 

64

 

 

 

2.2

 

%

 

 

 

67

 

 

 

2.1

 

%

Provision for income taxes

 

 

89

 

 

 

3.0

 

%

 

 

 

42

 

 

 

1.3

 

%

Net (loss) income (f)

 

 

(25

)

 

 

(0.8

)

%

 

 

 

25

 

 

 

0.8

 

%

Less: Net income attributable to noncontrolling interests

 

 

33

 

 

 

1.2

 

%

 

 

 

38

 

 

 

1.2

 

%

Net loss attributable to Community Health
   Systems, Inc. stockholders

$

 

(58

)

 

 

(2.0

)

%

 

$

 

(13

)

 

 

(0.4

)

%

Loss per share attributable to Community Health
   Systems, Inc. stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic (f)

$

 

(0.43

)

 

 

 

 

 

$

 

(0.10

)

 

 

 

 

Diluted (e), (f)

$

 

(0.43

)

 

 

 

 

 

$

 

(0.10

)

 

 

 

 

Weighted-average number of shares outstanding (d):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

134

 

 

 

 

 

 

 

 

133

 

 

 

 

 

Diluted

 

 

134

 

 

 

 

 

 

 

 

133

 

 

 

 

 

 

For footnotes, see pages 10, 11 and 12.

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CYH Announces First Quarter 2026 Results

Page 6

April 21, 2026

 

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Loss

(In millions)

(Unaudited)

 

 

Three Months Ended

 

 

March 31,

 

 

2026

 

 

2025

 

Net (loss) income

$

 

(25

)

 

$

 

25

 

Other comprehensive (loss) income, net of income taxes:

 

 

 

 

 

 

 

Net change in fair value of available-for-sale debt
   securities, net of tax

 

 

(1

)

 

 

 

3

 

Other comprehensive (loss) income

 

 

(1

)

 

 

 

3

 

Comprehensive (loss) income

 

 

(26

)

 

 

 

28

 

Less: Comprehensive income attributable to
   noncontrolling interests

 

 

33

 

 

 

 

38

 

Comprehensive loss attributable to Community
   Health Systems, Inc. stockholders

$

 

(59

)

 

$

 

(10

)

 

For footnotes, see pages 10, 11 and 12.

 

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CYH Announces First Quarter 2026 Results

Page 7

April 21, 2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES

 

Selected Operating Data (a)

 

(Dollars in millions)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

Consolidated

Same-Store

 

 

 

2026

 

 

2025

 

 

% Change

 

 

2026

 

 

2025

 

 

% Change

 

Number of hospitals (at end of period)

 

 

65

 

 

 

73

 

 

 

 

 

 

65

 

 

 

65

 

 

 

 

Licensed beds (at end of period)

 

 

9,530

 

 

 

10,788

 

 

 

 

 

 

9,530

 

 

 

9,469

 

 

 

 

Beds in service (at end of period)

 

 

8,225

 

 

 

9,285

 

 

 

 

 

 

8,225

 

 

 

8,164

 

 

 

 

Admissions

 

 

94,522

 

 

 

105,937

 

 

 

-10.8

%

 

 

92,249

 

 

 

93,495

 

 

 

-1.3

%

Adjusted admissions

 

 

206,496

 

 

 

230,780

 

 

 

-10.5

%

 

 

201,499

 

 

 

202,556

 

 

 

-0.5

%

Patient days

 

 

409,776

 

 

 

468,365

 

 

 

 

 

 

399,330

 

 

 

414,389

 

 

 

 

Average length of stay (days)

 

 

4.3

 

 

 

4.4

 

 

 

 

 

 

4.3

 

 

 

4.4

 

 

 

 

Occupancy rate (average beds in service)

 

 

55.4

%

 

 

56.0

%

 

 

 

 

 

53.9

%

 

 

56.4

%

 

 

 

Net operating revenues

 

$

2,965

 

 

$

3,159

 

 

 

-6.1

%

 

$

2,887

 

 

$

2,799

 

 

 

3.1

%

Net inpatient revenues as a % of net
   operating revenues

 

 

49.5

%

 

 

49.3

%

 

 

 

 

 

49.5

%

 

 

49.6

%

 

 

 

Net outpatient revenues as a % of net
   operating revenues

 

 

50.5

%

 

 

50.7

%

 

 

 

 

 

50.5

%

 

 

50.4

%

 

 

 

Income from operations (f)

 

$

281

 

 

$

284

 

 

 

-1.1

%

 

 

 

 

 

 

 

 

 

Income from operations as a % of net
   operating revenues

 

 

9.5

%

 

 

9.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

114

 

 

$

105

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to
    Community Health Systems, Inc.
    stockholders

 

$

(58

)

 

$

(13

)

 

 

-346.2

%

 

 

 

 

 

 

 

 

 

Net loss attributable to
   Community Health Systems, Inc.
   stockholders as a % of net
   operating revenues

 

 

-2.0

%

 

 

-0.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (c)

 

$

309

 

 

$

376

 

 

 

-17.8

%

 

 

 

 

 

 

 

 

 

Adjusted EBITDA as a % of net
   operating revenues

 

 

10.4

%

 

 

11.9

%

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (used in) provided by operating activities

 

$

(297

)

 

$

120

 

 

 

-347.5

%

 

 

 

 

 

 

 

 

 

 

For footnotes, see pages 10, 11 and 12.

 

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CYH Announces First Quarter 2026 Results

Page 8

April 21, 2026

 

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In millions, except share data)

(Unaudited)

 

 

March 31, 2026

 

 

December 31, 2025

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

712

 

 

$

 

260

 

Patient accounts receivable

 

 

 

2,139

 

 

 

 

2,077

 

Supplies

 

 

 

275

 

 

 

 

322

 

Prepaid income taxes

 

 

 

-

 

 

 

 

13

 

Prepaid expenses

 

 

 

226

 

 

 

 

181

 

Other current assets

 

 

 

421

 

 

 

 

381

 

Total current assets

 

 

 

3,773

 

 

 

 

3,234

 

Property and equipment

 

 

 

8,088

 

 

 

 

8,912

 

Less accumulated depreciation and amortization

 

 

 

(3,887

)

 

 

 

(4,409

)

Property and equipment, net

 

 

 

4,201

 

 

 

 

4,503

 

Goodwill

 

 

 

3,130

 

 

 

 

3,316

 

Deferred income taxes

 

 

 

29

 

 

 

 

50

 

Other assets, net

 

 

 

2,047

 

 

 

 

2,101

 

Total assets

 

$

 

13,180

 

 

$

 

13,204

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Current maturities of long-term debt

 

$

 

29

 

 

$

 

16

 

Current operating lease liabilities

 

 

 

97

 

 

 

 

110

 

Accounts payable

 

 

 

790

 

 

 

 

842

 

Income tax payable

 

 

 

53

 

 

 

 

-

 

Accrued liabilities:

 

 

 

 

 

 

 

 

Employee compensation

 

 

 

465

 

 

 

 

569

 

Accrued interest

 

 

 

178

 

 

 

 

238

 

Other

 

 

 

955

 

 

 

 

433

 

Total current liabilities

 

 

 

2,567

 

 

 

 

2,208

 

Long-term debt (g)

 

 

 

10,127

 

 

 

 

10,380

 

Deferred income taxes

 

 

 

25

 

 

 

 

25

 

Long-term operating lease liabilities

 

 

 

504

 

 

 

 

537

 

Other long-term liabilities

 

 

 

922

 

 

 

 

891

 

Total liabilities

 

 

 

14,145

 

 

 

 

14,041

 

Redeemable noncontrolling interests in equity of consolidated subsidiaries

 

 

 

260

 

 

 

 

322

 

STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Community Health Systems, Inc. stockholders’ deficit:

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; none issued

 

 

 

-

 

 

 

 

-

 

Common stock, $0.01 par value per share, 300,000,000 shares authorized; 140,916,712
   shares issued and outstanding at March 31, 2026, and 138,626,917
   shares issued and outstanding at December 31, 2025

 

 

 

1

 

 

 

 

1

 

Additional paid-in capital

 

 

 

2,183

 

 

 

 

2,185

 

Accumulated other comprehensive loss

 

 

 

(10

)

 

 

 

(9

)

Accumulated deficit

 

 

 

(3,628

)

 

 

 

(3,571

)

Total Community Health Systems, Inc. stockholders’ deficit

 

 

 

(1,454

)

 

 

 

(1,394

)

Noncontrolling interests in equity of consolidated subsidiaries

 

 

 

229

 

 

 

 

235

 

Total stockholders’ deficit

 

 

 

(1,225

)

 

 

 

(1,159

)

Total liabilities and stockholders’ deficit

 

$

 

13,180

 

 

$

 

13,204

 

 

For footnotes, see pages 10, 11 and 12.

-MORE-

CYH Announces First Quarter 2026 Results

Page 9

April 21, 2026

 

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In millions)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

2026

 

 

2025

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net (loss) income

$

 

(25

)

 

$

 

25

 

Adjustments to reconcile net (loss) income to net cash provided by
   operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

114

 

 

 

 

105

 

Deferred income taxes

 

 

-

 

 

 

 

(26

)

Stock-based compensation expense

 

 

3

 

 

 

 

4

 

Impairment and (gain) loss on sale of businesses, net (f)

 

 

(90

)

 

 

 

(24

)

Loss from early extinguishment of debt

 

 

8

 

 

 

 

-

 

Other non-cash expenses, net

 

 

40

 

 

 

 

45

 

Changes in operating assets and liabilities, net of effects of

 

 

 

 

 

 

 

acquisitions and divestitures:

 

 

 

 

 

 

 

Patient accounts receivable

 

 

(141

)

 

 

 

(48

)

Supplies, prepaid expenses and other current assets

 

 

(97

)

 

 

 

(10

)

Accounts payable, accrued liabilities and income taxes

 

 

(128

)

 

 

 

103

 

Other

 

 

19

 

 

 

 

(54

)

Net cash (used in) provided by operating activities

 

 

(297

)

 

 

 

120

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

Acquisitions of facilities and other related businesses

 

 

(5

)

 

 

 

-

 

Purchases of property and equipment

 

 

(76

)

 

 

 

(85

)

Proceeds from disposition of hospitals and other ancillary operations

 

 

1,108

 

 

 

 

563

 

Purchases of available-for-sale debt securities and equity securities

 

 

(42

)

 

 

 

(22

)

Proceeds from sales of available-for-sale debt securities and equity securities

 

 

45

 

 

 

 

23

 

Increase in other investments

 

 

(7

)

 

 

 

(35

)

Net cash provided by investing activities

 

 

1,023

 

 

 

 

444

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

Repurchase of restricted stock shares for payroll tax withholding requirements

 

 

(2

)

 

 

 

(1

)

Deferred financing costs and other debt-related costs

 

 

(7

)

 

 

 

-

 

Distributions to noncontrolling investors in joint ventures

 

 

(57

)

 

 

 

(35

)

Other borrowings

 

 

20

 

 

 

 

15

 

Proceeds from ABL Facility

 

 

123

 

 

 

 

939

 

Repayments of long-term indebtedness

 

 

(351

)

 

 

 

(1,088

)

Net cash used in financing activities

 

 

(274

)

 

 

 

(170

)

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

452

 

 

 

 

394

 

Cash and cash equivalents at beginning of period

 

 

260

 

 

 

 

37

 

Cash and cash equivalents at end of period

$

 

712

 

 

$

 

431

 

 

For footnotes, see pages 10, 11 and 12.

-MORE-

CYH Announces First Quarter 2026 Results

Page 10

April 21, 2026

 

Footnotes to Financial Highlights, Financial Statements and Selected Operating Data

(a)
Both financial and statistical results include the operating results of divested or closed businesses for the periods prior to the consummation of the respective divestiture or closing. Same-store operating results and statistical information include operating results of businesses operated in the comparable current year and prior year periods, and exclude businesses divested prior to March 31, 2026. There were no discontinued operations reported for the periods presented.
(b)
The following table provides information needed to calculate net loss attributable to Community Health Systems, Inc. stockholders, which is adjusted for income attributable to noncontrolling interests (in millions):

 

 

Three Months Ended

 

March 31,

 

2026

 

 

2025

 

Net loss attributable to Community Health Systems,
   Inc. stockholders:

 

 

 

 

 

 

 

Net (loss) income

$

 

(25

)

 

$

 

25

 

Less: Income attributable to noncontrolling interests, net of taxes

 

 

33

 

 

 

 

38

 

Net loss attributable to Community Health Systems, Inc.
   stockholders — basic and diluted

$

 

(58

)

 

$

 

(13

)

 

(c)
EBITDA is a non-GAAP financial measure which consists of net loss attributable to Community Health Systems, Inc. before interest, income taxes, and depreciation and amortization. Adjusted EBITDA, also a non-GAAP financial measure, is EBITDA adjusted to add back net income attributable to noncontrolling interests and to exclude loss (gain) from early extinguishment of debt, impairment and (gain) loss on sale of businesses, expense from third-party consulting costs associated with significant process and systems redesign across multiple functions (the “Business Transformation Costs”) as part of the Company’s previously disclosed multi-year initiative to modernize and consolidate technology platforms and associated processes, expense related to government and other legal matters and related costs, expense related to employee termination benefits and other restructuring charges, and the impact of a change in estimate to increase the professional liability claims accrual recorded during the third quarter of 2024. The Company has from time to time sold noncontrolling interests in certain of its subsidiaries or acquired subsidiaries with existing noncontrolling interest ownership positions. The Company believes that it is useful to present Adjusted EBITDA because it adds back the portion of EBITDA attributable to these third-party interests. The Company reports Adjusted EBITDA as a measure of financial performance. Adjusted EBITDA is a key measure used by management to assess the operating performance of the Company’s hospital operations and to make decisions on the allocation of resources. Adjusted EBITDA is also used to evaluate the performance of the Company’s executive management team and is one of the primary metrics used in connection with determining short-term cash incentive compensation and the achievement of vesting criteria with respect to performance-based equity awards. In addition, management utilizes Adjusted EBITDA in assessing the Company’s consolidated results of operations and operational performance and in comparing the Company’s results of operations between periods. The Company believes it is useful to provide investors and other users of the Company’s financial statements this performance measure to align with how management assesses the Company’s results of operations. Adjusted EBITDA also is comparable to a similar metric called Consolidated EBITDA, as defined in the Company’s asset-based loan facility (the “ABL Facility”) and the Company’s existing note indentures, which is a key component in the determination of the Company’s compliance with certain covenants under the ABL Facility and such note indentures (including the Company’s ability to service debt and incur capital expenditures), and is used to determine the interest rate and commitment fee payable under the ABL Facility (although Adjusted EBITDA does not include all of the adjustments described in the ABL Facility). Adjusted EBITDA includes the Adjusted EBITDA attributable to hospitals that were divested during the course of such year, but in each case solely to the extent relating to the period prior to the consummation of the applicable divestiture.

-MORE-

CYH Announces First Quarter 2026 Results

Page 11

April 21, 2026

 

Footnotes to Financial Highlights, Financial Statements and Selected Operating Data (Continued)

Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP. It should not be considered in isolation or as a substitute for net income, operating income, or any other performance measure calculated in accordance with U.S. GAAP. The items excluded from Adjusted EBITDA are significant components in understanding and evaluating financial performance. The Company believes such adjustments are appropriate as the magnitude and frequency of such items can vary significantly and are not related to the assessment of normal operating performance. Additionally, this calculation of Adjusted EBITDA may not be comparable to similarly titled measures disclosed by other companies.

The following table reflects the reconciliation of Adjusted EBITDA, as defined, to net loss attributable to Community Health Systems, Inc. stockholders from the Company’s condensed consolidated financial statements (in millions):

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2026

 

 

2025

 

Net loss attributable to Community Health

 

 

 

 

 

 

 

 

Systems, Inc. stockholders

 

$

 

(58

)

 

$

 

(13

)

Adjustments:

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 

89

 

 

 

 

42

 

Depreciation and amortization

 

 

 

114

 

 

 

 

105

 

Net income attributable to noncontrolling interests

 

 

 

33

 

 

 

 

38

 

Interest expense, net

 

 

 

213

 

 

 

 

219

 

Loss from early extinguishment of debt

 

 

 

8

 

 

 

 

-

 

Impairment and (gain) loss on sale of businesses, net

 

 

 

(90

)

 

 

 

(24

)

Expense from business transformation costs

 

 

 

-

 

 

 

 

9

 

Adjusted EBITDA

 

$

 

309

 

 

$

 

376

 

 

(d)
The following table sets forth components reconciling the basic weighted-average number of shares to the diluted weighted-average number of shares (in millions):

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

 

 

 

 

2026

 

 

2025

 

Weighted-average number of shares outstanding - basic

 

 

 

134

 

 

 

133

 

Add effect of dilutive securities:

 

 

 

 

 

 

 

Stock awards and options

 

 

 

-

 

 

 

-

 

Weighted-average number of shares outstanding - diluted

 

 

 

134

 

 

 

133

 

 

 

The Company generated a net loss attributable to Community Health Systems, Inc. stockholders for the three months ended March 31, 2026 and 2025, so the effect of dilutive securities is not considered because their effect would be antidilutive. If the Company had generated net income, the effect of stock awards and options on the diluted shares calculation would have been an increase of 816,549 shares and 585,016 shares during the three months ended March 31, 2026 and 2025, respectively.

 

-MORE-

CYH Announces First Quarter 2026 Results

Page 12

April 21, 2026

 

Footnotes to Financial Highlights, Financial Statements and Selected Operating Data (Continued)

 

(e)
The following supplemental table reconciles net loss attributable to Community Health Systems, Inc. stockholders, as reported, on a per share (diluted) basis, to net loss attributable to Community Health Systems, Inc. stockholders per share (diluted) with the adjustments described herein (total per share amounts may not add due to rounding). The Company believes that the presentation of non-GAAP adjusted net loss attributable to Community Health Systems, Inc. stockholders per share (diluted) presents useful information to investors by highlighting the impact on net loss attributable to Community Health Systems, Inc. stockholders per share (diluted) of selected items used in calculating Adjusted EBITDA which may not reflect the Company’s underlying operating performance and assisting in comparing the Company’s results of operations between periods.

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2026

 

 

2025

 

Net loss per share (diluted), as reported

 

$

(0.43

)

 

$

(0.10

)

Adjustments:

 

 

 

 

 

 

Loss from early extinguishment of debt

 

 

0.06

 

 

 

-

 

Impairment and (gain) loss on sale of businesses, net

 

 

(0.11

)

 

 

0.02

 

Expense from business transformation costs

 

 

-

 

 

 

0.05

 

Net loss per share (diluted), excluding adjustments

 

$

(0.48

)

 

$

(0.03

)

 

(f)
Both income from operations and net (loss) income included net non-cash income of $90 million and $24 million for the three months ended March 31, 2026 and 2025, respectively. The net non-cash income for 2026 was comprised of a gain related to the divestiture of the Company’s controlling interest in a hospital, partially offset by (i) a net impairment charge to adjust the carrying value of long-lived assets at hospitals that were divested at a price below carrying value, and (ii) an impairment charge to adjust the carrying value of hospitals held-for-sale based on the difference between the carrying value of the hospital disposal group compared to the estimated fair value less costs to sell. The net non-cash income for 2025 was primarily from gains on the sale of certain businesses during the period, partially offset by impairment expense to reduce the carrying value of several assets that were idled, disposed of or held-for-sale and losses on the sale of certain businesses during the period. These gains, losses and impairment charges do not have an impact on the calculation of the Company’s financial covenants under the ABL Facility.
(g)
The maximum aggregate principal amount under the ABL Facility is $1.0 billion, subject to borrowing base capacity. At March 31, 2026, the Company had no outstanding borrowings and approximately $824 million of additional borrowing capacity (after taking into consideration $32 million of outstanding letters of credit) under the ABL Facility.

 

 

 

-MORE-

CYH Announces First Quarter 2026 Results

Page 13

April 21, 2026

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. All statements in this press release other than statements of historical fact, including statements regarding projections, expected operating results, and other events that depend upon or refer to future events or conditions or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “thinks,” and similar expressions, are forward-looking statements. Although the Company believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant regulatory, economic and competitive uncertainties and contingencies, which are difficult or impossible to predict accurately and may be beyond the control of the Company. Accordingly, the Company cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. A number of factors could affect the future results of the Company or the healthcare industry generally and could cause the Company’s expected results to differ materially from those expressed in this press release.

These factors include, among other things:

•
general economic and business conditions, both nationally and in the regions in which we operate, including the impact of challenging macroeconomic conditions and inflationary pressures, the current interest rate environment, current geopolitical instability (including as a result of ongoing geopolitical conflicts), impacts from the imposition of, or changes in tariffs, as well as the impact on us of financial, credit, capital, political, and legislative conditions, including any federal government shutdowns;
•
the impact of current and future healthcare public policy developments and the implementation of new, and possible changes to existing, federal, state or local laws, regulations and policies affecting the healthcare industry, including changes affecting the structure of or funding for the Medicare and Medicaid programs and changes in the structure and administration of federal and state agencies and programs;
•
changes by the federal and state governments to state Medicaid programs, including the extent and nature of structural and funding changes and manner in which any such changes are implemented, and other developments that affect the administration of health insurance exchanges or alter or reduce the provision of, or payment for, healthcare to state residents through legislation, regulation or otherwise;
•
changes related to health insurance enrollment, including those affecting the beneficiary enrollment process and the stability of health insurance exchanges, and the expiration of the temporarily enhanced subsidies available for individuals to purchase coverage through Affordable Care Act marketplaces;
•
risks associated with our substantial indebtedness, leverage and debt service obligations, including our ability to refinance such indebtedness on acceptable terms or to incur additional indebtedness, and our ability to remain in compliance with debt covenants;
•
demographic changes;
•
changes in, or the failure to comply with, federal, state or local laws or governmental regulations affecting our business;
•
judicial developments impacting the Company or the healthcare industry, including the potential impact of the recent decisions of the U.S. Supreme Court regarding the actions of federal agencies;
•
the potential adverse impact of known and unknown legal, regulatory and governmental proceedings and other loss contingencies, including governmental investigations and audits, and federal and state false claims act litigation;

 

-MORE-

CYH Announces First Quarter 2026 Results

Page 14

April 21, 2026

•
our ability to enter into and maintain provider arrangements with payors and the terms of these arrangements, which may be further affected by the increasing consolidation of health insurers and managed care companies and vertical integration efforts involving payors and healthcare providers;
•
changes in, or the failure to comply with, contract terms with payors and changes in reimbursement policies, methodologies or rates paid by federal or state healthcare programs or commercial payors;
•
security breaches, cyber-attacks, loss of data, other cybersecurity threats or incidents, including those experienced with respect to our information systems or the information systems of third parties with whom we conduct business, and any actual or perceived failures to comply with legal requirements governing the privacy and security of health information or other regulated, sensitive or confidential information, or legal requirements regarding data privacy or data protection;
•
the development, adoption and use of emerging technologies, including artificial intelligence and machine learning;
•
any potential impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets;
•
the effects related to the sequestration spending reductions pursuant to the Budget Control Act of 2011 and the potential for spending reductions under future legislation, including as may be required under the Pay-As-You-Go Act of 2010;
•
increases in the amount and risk of collectability of patient accounts receivable, including decreases in collectability which may result from, among other things, self-pay growth and difficulties in recovering payments for which patients are responsible, including co-pays and deductibles;
•
the efforts of insurers, healthcare providers, large employer groups and others to contain healthcare costs, including the trend toward value-based purchasing and increased reimbursement denials by insurers;
•
the impact of competitive labor market conditions, including in connection with our ability to hire and retain qualified nurses, physicians, other medical personnel and key management, and increased labor expenses arising from inflation and/or competition for such positions;
•
the inability of third parties with whom we contract to provide hospital-based physicians and the effectiveness of our efforts to mitigate such non-performance including through acquisitions of outsourced medical specialist businesses, engagement with new or replacement providers, employment of physicians and re-negotiation or assumption of existing contracts;
•
any failure to obtain medical supplies or pharmaceuticals at favorable prices;
•
liabilities and other claims asserted against us, including self-insured professional liability claims;
•
competition;
•
trends toward treatment of patients in less acute or specialty healthcare settings, including ambulatory surgery centers or specialty hospitals or via telehealth;

-MORE-

CYH Announces First Quarter 2026 Results

Page 15

April 21, 2026

•
changes in medical or other technology;
•
changes in U.S. GAAP;
•
the availability and terms of capital to fund any additional acquisitions or replacement facilities or other capital expenditures;
•
our ability to successfully make acquisitions or complete divestitures, our ability to complete any such acquisitions or divestitures on desired terms or at all, the timing of the completion of any such acquisitions or divestitures, and our ability to realize the intended benefits from any such acquisitions or divestitures;
•
the impact that changes in our relationships with joint venture or syndication partners could have on effectively operating our hospitals or ancillary services or in advancing strategic opportunities;
•
our ability to successfully integrate any acquired hospitals and/or outpatient facilities, or to realize expected benefits from acquisitions such as increased growth in patient service revenues;
•
the impact of severe weather conditions and climate change, as well as the timing and amount of insurance recoveries in relation to severe weather events;
•
our ability to obtain adequate levels of insurance, including general liability, professional liability, cyber liability and directors’ and officers’ liability insurance;
•
any lapse in appropriations, and any hold on or cancellation of congressionally authorized spending or interruptions in the distribution of government funds, and the timeliness of reimbursement payments received under government programs;
•
effects related to pandemics, epidemics, outbreaks of infectious diseases or other public health crises;
•
any failure to comply with our obligations under license or technology agreements;
•
challenging economic conditions in non-urban communities in which we operate;
•
the concentration of our revenue in a small number of states;
•
our ability to realize anticipated cost savings and other benefits from our current strategic and operational cost savings initiatives;
•
any changes in or interpretations of income tax laws and regulations; and
•
the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 19, 2026 and other public filings with the SEC.

The consolidated operating results for the three months ended March 31, 2026, are not necessarily indicative of the results that may be experienced for any future periods. The Company cautions that the reaffirmation of our guidance for calendar year 2026 (which guidance was originally included in our February 18, 2026 press release) as set forth herein is based on currently available information. The Company undertakes no obligation to revise or update any forward-looking statements (including such guidance), or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

-END-