Community Health Systems, Inc. - CYH STOCK NEWS

Community Health Systems (NYSE: CYH) has completed the sale of Tennova Healthcare – Cleveland, a 351-bed hospital in Cleveland, Tennessee, to Hamilton Health Care System for $160 million. The transaction, effective August 1, 2024, also includes certain related businesses. Additional cash consideration may be received based on potential changes to supplemental reimbursement programs.

This divestiture is part of Community Health Systems' ongoing strategy to optimize its portfolio and focus on core markets. The sale of the Cleveland facility demonstrates the company's commitment to streamlining operations and potentially improving its financial position. Investors and analysts will likely monitor how this transaction impacts CYH's balance sheet and future performance in the healthcare sector.

Community Health Systems (NYSE: CYH) has announced a definitive agreement to sell three Pennsylvania hospitals and related businesses to WoodBridge Healthcare for $120 million. The deal includes:

• 186-bed Regional Hospital of Scranton
• 122-bed Moses Taylor Hospital in Scranton
• 369-bed Wilkes-Barre General Hospital in Wilkes-Barre

The transaction price includes a $10 million prepayment for IT transition services and is subject to adjustments. The sale is expected to close in Q4 2024, pending regulatory approvals and closing conditions. This divestiture aligns with CYH's strategy discussed in their Q2 2024 earnings call.

Community Health Systems, Inc. (NYSE: CYH) announced financial results for Q2 2024. Net operating revenues totaled $3.140 billion, a 0.8% increase from Q2 2023. Net loss attributable to stockholders was $(13) million, or $(0.10) per share, compared to $(38) million in Q2 2023. Adjusted EBITDA was $387 million.

On a same-store basis, admissions increased 3.0% and adjusted admissions increased 3.2%. The company completed a tack-on offering of $1.225 billion Senior Secured Notes due 2032, using proceeds to redeem outstanding notes and fund repurchases.

CEO Tim L. Hingtgen highlighted same-store improvements in operating results, supported by strong volume growth and expense management. The company's progress demonstrates a growth mindset and consistent execution on strategic opportunities.

Community Health Systems (NYSE: CYH) has released its 2024 Community Impact Report, showcasing the company's efforts in healthcare delivery, workforce support, environmental protection, and economic contributions. Key highlights from 2023 include:

• 12.5+ million patient encounters across 1,000+ care sites
• $1.3 billion in charity care and uncompensated care
• $5.4 billion for payroll and benefits
• $641 million in taxes
• $467 million in capital investments

The report also highlights innovative approaches such as AI-powered maternal-fetal early warning systems, virtual patient monitoring, and partnerships to address drug shortages. CHS emphasizes its commitment to ethical conduct, compliance, and effective governance while sharing human stories of patient care and employee growth.

Community Health Systems (NYSE: CYH) will host a webcast of its second-quarter 2024 conference call on Thursday, July 25, 2024, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The company will release its financial and operational results for the quarter ended June 30, 2024, the previous day, Wednesday, July 24, 2024, after the market closes.

Interested parties can access the live webcast at https://www.chs.net/investor-relations/investor-tools/webcasts/. A replay will be available online for approximately 30 days post-call. To join the live call, dial 1-833-630-1961 domestically or 1-412-317-1842 internationally. A telephonic replay is available through August 1, 2024, by dialing 1-877-344-7529 and entering the confirmation number, 3156319.

Community Health Systems (CYH) has announced an expansion of its partnership with Mark Cuban Cost Plus Drugs Company. This expansion enables CHS-affiliated hospitals to purchase more medications from the Cost Plus Drugs Marketplace, which is powered by GraphiteRx. The Marketplace offers hundreds of common medications at significantly lower costs, with a 15% markup on the actual cost of each drug.

Initially, CHS-affiliated hospitals will purchase twelve types of drugs, including antibiotics and medications for chemotherapy-related nausea, infections, glaucoma, acid reflux, and hyponatremia. This initiative is expected to save several hundred thousand dollars annually and may expand as more drugs are approved.

The partnership aims to address drug shortages and reduce pharmaceutical waste, with CHS becoming the first hospital organization to buy drugs from Cost Plus Drugs' new manufacturing plant in Dallas. Lynn Simon, M.D., and Alex Oshmyansky, M.D., PhD, emphasize the importance and potential of this collaboration for improving drug affordability and availability.

Community Health Systems (NYSE: CYH) announced that Novant Health decided not to proceed with the acquisition of two North Carolina hospitals, Lake Norman Regional Medical Center and Davis Regional Psychiatric Hospital. This decision follows a Fourth Circuit Court of Appeals injunction blocking the sale pending an appeal by the Federal Trade Commission. The injunction prevents the sale until the court decides on the appeal. The company is currently evaluating the operations of these facilities. Patient care and healthcare services will remain unchanged for now.

Community Health Systems (NYSE: CYH) announced the pricing of a $1,225.0 million major principal amount in a tack-on offering of its 10.875% Senior Secured Notes due 2032 at an issue price of 102.000%, plus accrued interest from December 22, 2023. This increases the total offering size by $100.0 million, with the total aggregate principal amount now at $2,225.0 million. The sale is set for June 5, 2024, pending customary conditions. Proceeds will redeem 8.000% Senior Secured Notes due 2026, fund $100 million in other note repurchases, cover related fees, and be used for general corporate purposes, including repayment of part of the ABL Facility. The offering targets qualified institutional buyers under Rule 144A and non-U.S. buyers under Regulation S.

Community Health Systems announced a Tack-On Offering of $1,125.0 million in 10.875% Senior Secured Notes due 2032. The offering aims to redeem the outstanding 8.000% Senior Secured Notes due 2026, cover related fees and expenses, and fund general corporate purposes. The Tack-On Notes will be available to qualified institutional buyers in the U.S. under Rule 144A and outside the U.S. under Regulation S. These notes are unregistered under the Securities Act and cannot be sold in the U.S. without registration or an exemption.