Reuters  Oct 17  Comment 
* Almost Family Inc signs agreement to acquire controlling interest in Community Health Systems home health and hospice unit
Reuters  Oct 17  Comment 
* Community Health Systems announces definitive agreement to sell majority interest in home health division
Benzinga  Sep 20  Comment 
Apollo Global Management LLC (NYSE: APO)’s 2016 shopping spree is reportedly still going strong. On Monday, Reuters reported that Apollo is in talks to acquire assets from struggling hospital operator Community Health Systems (NYSE: CYH)....
Benzinga  Sep 20  Comment 
Community Health Systems (NYSE: CYH) shares are trading lower by $0.64 (5.5 percent) at $10.45 in Tuesday's session. The issue has been volatile over the last few session as there have been reports the company was exploring options, including a...
Reuters  Sep 19  Comment 
Apollo Global Management LLC is one of the private equity firms that is in talks to acquire assets of heavily indebted U.S. hospital operator Community Health Systems Inc , people...


Community Health Systems (NYSE:CYH) owns and leases over a hundred hospitals in 29 states, primarily in rural communities.[1] While the company's growth is partially organic, the bulk of revenue increases have resulted from acquisitions, such as the purchase of Triad Hospitals Inc. which doubled the size of the CYH network, in terms of beds, and made it the largest publicly traded hospital operator chain in the country. The company earned $12 billion in revenue and $243 million in net income in 2009.[2]

As U.S. demographics change - and trend toward urban or rural relocations - so do CYH's revenues. Population size and economic cycles help determine the number of potential patients living close to CYH's hospitals and the amount of healthcare they need. Medicare and Medicaid laws also impact the company's operating income, and the growing quantitative gap between insured and uninsured and/or underinsured patients are concerns as more private clinics and physician-owned hospitals attract the most expensive and specialized medical procedures funded by private insurance. To stave off competition from these smaller, more nimble providers, the firm often forms partnerships with them.

People normally pay me for this and you are givnig it away!

I like the valuable iooirmatfnn you supply on your articles. I will bookmark your blog and test once more here regularly. I'm rather certain I will be told a lot of new stuff proper right here! Best of luck for the next!


Community Health holds a virtual monopoly in most of its markets simply because its hospitals are the only providers of emergency care services in the vicinity. This is common to most American rural hospitals and reflects years of industry consolidation. Thus, the firm's primary competition is not other area hospitals, but rather urban hospitals, which patients often choose for specialized care. The firm competes by recruiting more specialists and investing in new technology in order to widen the range of services available to patients.

Compared to its urban counterparts, Community Health's hospitals have several operational advantages that help them achieve higher margins. A rural location gives hospitals the benefit of less competition, since many are monopolies in their communities. In addition to making more flexibility in pricing possible, this type of market power can bolster a hospital's reputation, encouraging positive relationships with patients and local physicians. Furthermore, patients treated at rural hospitals often have less complex health problems, as those with more advanced illnesses tend to travel to urban hospitals to receive care. This results in a lower cost structure, as more common medical issues can be treated with fewer expenses. Finally, Community Health maximizes the revenues it receives from private insurance providers by avoiding contractual relations with them and shunning and risk sharing agreements. Instead, they negotiate payments with these institutions on a case by case basis. Because private insurers have a smaller presence in rural areas, they are essentially not interested in penetration of rural clients and thus offer fewer discounts and special promotions to them, which results in higher reimbursement for hospitals. At the same time, CYH cannot offer the same level of equipment and specialized care as urban hospitals, leading it to lose potential patients. It also lacks teaching and research facilities, which are common to urban hospitals.

In the past several years, new types of competitors have been entering Community Health's markets and decreasing patient volume: physician-owned hospitals and stand alone surgery and diagnostic centers. New technologies have made it possible for physicians to perform procedures that earlier had to be done in a hospital. Community Health is addressing this challenge by attempting to partner with physicians and other independent facilities.


  1. CYH 2009 10-K "Overview of Our Company"
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki