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Short term....hard to say.
Long term/mid term.....winner.
At least today lol.
She’s a winner.
I’m in at $4.34. High risk stock but it seems to have high ceiling if mgt can make good decisions. What’s the consensus on 6-12 month outlook from those who have been here for awhile?
* * $CYH Video Chart 02-28-18 * *
Link to Video - click here to watch the technical chart video
Pretty sure this is going back to where it was at $30 once they restructure.
$5 coming! Poor shorty.
You made a good profit, nice call.
Ill hold awhile for a swing.
Good buy. I sold far too soon. Not very familiar with the stock and I never anticipated the increase by Shanda Group would power it so much. Probably should have since it was down so much. I think I'll wait til the dust settles.
CYH
In at $4.58. Seems due for a big bounce.
Sold @ $4.30, but can see it has more legs than thought. Look to re-enter.
CYH
Shanda Group Increases Investment in Community Health Systems and Expresses Support for Company
January 11, 2018 07:45 AM Eastern Time
FRANKLIN, Tenn. & MENLO PARK, Calif.--(EON: Enhanced Online News)--
On January 11, 2018, members of Shanda Group filed an amendment to Shanda’s Schedule 13D with the Securities and Exchange Commission to disclose an increase in its investment in Community Health Systems (NYSE: CYH). Shanda, together with its affiliates, is CYH’s largest shareholder and holds approximately 24.0% of the Company’s outstanding common stock.
“We have consistently maintained a good relationship with CYH and are supportive of the Company and its management team as they continue to execute on the Company’s strategic objectives.”
Robert Chiu, group president of Shanda Group, stated, “We have consistently maintained a good relationship with CYH and are supportive of the Company and its management team as they continue to execute on the Company’s strategic objectives.”
Wayne T. Smith, chairman and chief executive officer of the Company, stated, “We are pleased with Shanda’s continued support and welcome and value the input of Shanda and all of our stockholders.”
About Community Health Systems, Inc.
Community Health Systems, Inc. is one of the largest publicly traded hospital companies in the United States and a leading operator of general acute care hospitals in communities across the country. The Company, through its subsidiaries, owns, leases or operates 127 affiliated hospitals in 20 states with an aggregate of approximately 21,000 licensed beds. 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.
About Shanda Group
Shanda Group is a private investment firm involved in public market, private equity and real estate investments around the world. Shanda Group was founded in 1999 and was one of the earliest and leading Internet conglomerates in China. Its parent company, Shanda Interactive Entertainment Limited, completed its IPO in 2004 and was the first Chinese online game company successfully listed on NASDAQ. Committed to bringing positive changes to the world, Shanda Group actively supports philanthropic efforts with a particular focus on fundamental research for brain science.
For more information on Shanda’s Schedule 13D/A filing, please visit www.sec.gov.
Forward-Looking Statements
Statements contained in this news release regarding potential transactions, operating results, and other events are forward-looking statements that involve risk and uncertainties. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Community Health Systems, Inc. with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K, current reports on Form 8-K and quarterly reports on Form 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts
Community Health Systems, Inc.
Investor Contact:
Thomas J. Aaron, 615-465-7000
Executive Vice President and Chief Financial Officer
or
Ross W. Comeaux, 615-465-7012
Vice President – Investor Relations
or
Media Contact:
Tomi Galin, 615-628-6607
Senior Vice President, Corporate Communications, Marketing and Public Affairs
or
Shanda Group
Jason Reindorp, 650-656-9574
Head of Global PR & Communications
__________________________________________________
CYH
This is getting cheap and desperate enough it’s worth message board traffic on ihub
Community Health Systems, Inc. CYH
NYSE
10.20 0.4 (4.08%) last updated 05/10/2017, 04:30:24 PM EDT
Very Bullish.....
Adjusted for certain items discussed below, income from continuing operations attributable to Community Health Systems, Inc. common stockholders was $0.46 per share (diluted).
Community Health Systems Announces Definitive Agreement to Divest Eight Hospitals – Three in Florida, Three in Ohio and Two in Pennsylvania
[Business Wire]
Business WireFebruary 16, 2017
FRANKLIN, Tenn.--(BUSINESS WIRE)--
Community Health Systems, Inc. (CYH) announced today that subsidiaries of the Company have signed a definitive agreement to sell eight hospitals and their associated assets to subsidiaries of Steward Health Care LLC. Facilities included in the transaction are 119-bed Wuesthoff Health System-Melbourne in Melbourne, Fla.; 298-bed Wuesthoff Health System-Rockledge in Rockledge, Fla.; 154-bed Sebastian River Medical Center in Sebastian, Fla.; ValleyCare Health System of Ohio, with 355-bed Northside Medical Center in Youngstown, 311-bed Trumbull Memorial Hospital and 69-bed Hillside Rehabilitation Hospital in Warren; 258-bed Sharon Regional Health System in Sharon, Pa. and 254-bed Easton Hospital in Easton, Pa.
The transaction is expected to close in the second quarter of 2017, subject to customary regulatory approvals and closing conditions. The Company will apply proceeds of the transaction to pay down debt.
Commenting on the announcement, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, “This transaction is a significant step in our strategic work to optimize our portfolio and operations for the future. These hospitals play an important role in their communities and can benefit from Steward Health Care’s community-based care model going forward.”
The Company will provide an update on its divestiture activity during its fourth quarter and year-end 2016 earnings call. The conference call is scheduled to begin at 10:00 a.m. Central time, 11:00 a.m. Eastern time, on Tuesday, February 21, 2017. A live broadcast of the conference call will be available online at www.chs.net.
Aetna won't return to exchanges it left despite federal judge's scolding
By Shelby Livingston | January 31, 2017
(Story updated at 12:27 p.m. ET) National insurer Aetna has no plans to re-enter the ACA exchanges in any of the 11 states it exited earlier this year. That's despite the public scolding Aetna received earlier this month from a federal judge who concluded that Aetna pulled out of the exchanges to improve the chances of closing its merger with Humana, and that it wasn't a business decision related to financial losses.Instead, the Hartford, Conn.-based insurer will continue to evaluate its 2018 participation in the four states where it currently sells exchange plans.“We have no intention of being in the market for 2018,” Aetna CEO Mark Bertolini said on an investor call Tuesday to announce the insurer's fourth-quarter earnings. “Where we stand, we'd have to have markets
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KPMG survey finds 50% of health systems receive value-based reimbursement
By Dave Barkholz | January 23, 2017
Half of healthcare systems are getting some or most of their reimbursement as part of value-based payments that put providers at risk for the cost and quality of care, KPMG reports in a new survey.
Based on the response of 86 participants, 36% said they receive some reimbursement from value-based contracts, while 14% said they get most of their reimbursement that way, the survey found.
Another 26% said they are planning to enter value-based payment arrangements in the next one to three years with only 7% of the organizations saying they would not.
The remaining 17% of healthcare organizations said they don't require value-based payments as they remain rooted in fee-for-service, said KPMG partner Joe Kuehn.
“Various parts of the country are transitioning at a slower pace,” Kuehn said. “The vast majority of health plans and providers, however, are moving this way, particularly after the CMS had set some aggressive targets in January 2015, followed by some of the national health plans, to shift their reimbursement in this direction.”
The KPMG results are mildly more upbeat than the Modern Healthcare Hospital Systems Survey results published in June 2016 that found just 13 hospital systems out of 80 respondents said they derived 10% or more of their net patient revenue in 2015 from risk-based contracts.
Two-thirds of the respondents estimated that risk-based contracts generated 1% to none of their net patient revenue.
Hospitals are either not eager to bear downside risk because they are afraid to, or they cannot find health plans willing to share the data needed to negotiate contracts perceived as fair to both parties, healthcare experts said.
KPMG also found that population-health programs are gaining traction among health systems and insurers.
The survey, which was conducted as part of a December webcast, found that 44% of participants had a population-health platform in place that is being “utilized efficiently and effectively.”
Another 24% are in the process of implementing a population-health program within the next three years. And only 10% said they have no plans to implement a platform to support the program, and another 21% of respondents said their organization doesn't require such a platform.
Population-health management programs are the foundation of a shift to value-based care from fee-for-service, said Todd Ellis, a KPMG principal who specializes in advising healthcare providers.
The programs are achieved by using data and software to help make sure the patients, including the chronically ill, are getting preventive care, taking their medications, keeping appointments and being matched with other agencies to improve their lifestyles.
The information technology, data and clinical workflows for achieving population-health management provide hospitals and clinicians with the visibility to take on risk in reimbursement, Ellis said.
“It's crucial to doing value-based care successfully,” he said.
Nation's largest investor-owned hospital systems are in full retreat
By Dave Barkholz | January 28, 2017
http://www.modernhealthcare.com/article/20170128/MAGAZINE/301289983?utm_campaign=socialflow&utm_source=twitter&utm_medium=social
Trump's ACA order fuels questions among potential health plan enrollees
Written by Kelly Gooch | January 24, 2017
On Friday, President Donald Trump signed an executive order aimed at immediately lessening the economic burden of the ACA as Republican lawmakers work on a repeal and replacement plan. Now, with only eight days left in the open enrollment period for 2017, tens of thousands of consumers are contacting ACA call centers across the U.S., asking whether they can still enroll in insurance coverage, or if their coverage will continue under President Trump, reports Politico.
The questions come as consumers, insurers and brokers were surprised and confused by President Trump's order, according to the report. The order authorizes states and agencies to make changes to provisions of the ACA "to the maximum extent permitted by the law."
"In a normal year, you would see really strong demand Monday and Tuesday," Michael Stahl, senior vice president for HealthMarkets, an insurer that operates in all 50 states, told Politico. "But we've got a new administration that has thrown a curveball in all this."
"I think we'll have a bump; I just think the magnitude might be less," he said. "From what I see from our customers … there is a general nervousness. Despite my advice to play by the rules as they are today, sometimes … people kind of freeze and do nothing."
The deadline to sign up for 2017 plans is Jan. 31. In the meantime, advocates for the ACA seek to boost enrollment, according to the report.
What President Trump's executive order means for hospitals & physicians: 14 key thoughts
Written by Laura Dyrda
President Donald Trump signed an executive order on Jan. 20 to reduce the economic burden of the ACA. Fourteen academics and leaders of healthcare companies and hospitals discuss the executive order's implications on hospitals and physicians.
Michael Abrams. Co-founder and Managing Partner of Numerof & Associates (St. Louis). "The takeaway for healthcare industry players (and consumers) is that Trump intends to follow through on his promise to revamp the fundamentals of the ACA. The executive order outlines Trump's vision for a healthcare policy that minimizes economic and regulatory burdens, decentralizes control to the states and creates a more open, market-based model. It's entirely consistent with his campaign statements and shouldn't come as a surprise to anyone. There's also no reason for physicians, hospital executives or pharmaceutical companies to hit the panic button. The order itself acknowledges that any action taken by agency heads is subject to applicable rules and regulations regarding review and comment periods."
Alejandro Badia, MD. CEO of OrthoNOW (Doral, Fla.). "President Trump's executive order on the ACA indicates a spirit that change is imperative. This is a first step toward unwinding the law, specifically by limiting further expansion of the federal government's reach, which has been deemed to be financially unsustainable as it has had zero impact on cost. Furthermore, this allows a more common sense approach to changing healthcare delivery in the U.S., and having an orthopedic surgeon leading the primary government agency involved will allow a more realistic methodology to developing an improved plan. Having healthcare providers, including hospital executives and pharmaceutical companies, involved in decision-making will bring about more cost-effective change that will enable providers and empower patients who demand the industry's quadruple aim: better costs, better outcomes, better patient experiences and better clinician experience."
Dan Ehlke, Assistant Professor of Health Policy and Management at SUNY-Downstate School of Public Health (Brooklyn, N.Y.). "In the short term, I think there's likely to be little impact. The order is very vaguely worded, and I suspect most of the relevant bureaucrats at [the] state and federal level will await congressional action before changing course dramatically. Insurers are unlikely to drop out of exchanges to which they are signed on for 2017, though some could opt out for 2018, given that the order may signal the marketplaces' eventual demise. Should that occur, hospitals will likely see greater numbers of uninsured, and this could, in turn, lead to greater amounts of uncompensated care. However, this will be highly contingent on what any 'replacement' legislation looks like, and less the result of the order itself which, while symbolically important as a sign of administration policy intent, is unlikely to be substantively significant on its own."
John Greenbaum. National Practice Leader of Employee Benefits of Risk Strategies Company (Boston). "The executive order could open the door for low value (limited coverage) insurance that will result in a significant increase in uncompensated care as individuals who had objected to the broad coverage offered under ACA plans seek to move to lower cost alternatives."
Terry Hush. President and Co-founder of Roji Health Intelligence (Chicago). "President Trump's executive order is largely a signal at this point that he will proceed with supporting a repeal of the ACA. In particular, he has made it clear that there will be no consequences for individuals who don't have health insurance in terms of penalties. But it leaves open the huge question of what a replacement will look like, and it also creates other questions for hospitals and physician companies about what will happen to other provisions under the act. One of these uncertainties is the future of ACOs, which were begun by hospitals under the ACA and were intended to stem the rising costs of Medicare. The executive order may well have the effect of slowing down action by providers to develop or participate in risk programs, until the future is clearer."
Gary S. Kaplan, MD. Chairman and CEO of Virginia Mason Health System (Seattle). "While it is too soon to address with any certainty the implications of the executive order, I do urge President Trump and Congress to be mindful of the importance of access to affordable, high quality and safe healthcare for all Americans. They must focus on the fundamentals of healthcare, such as adequate access, appropriate care, value and transparency, which are all necessary for positive outcomes and patient experiences. Their decisions must be based on facts, not political fervor, and in the long term interest of everyone. The ACA, while not perfect, was a step forward in the right direction. Our nation should build on this momentum. I also encourage the president to launch a national initiative involving healthcare providers, payers, patients and lawmakers from both political parties with the goal of understanding and addressing the underlying broken processes across the nation's healthcare system that negatively affect quality, efficiency and cost. This is the strategic, big picture perspective we urgently need. Healthcare deserves an open-minded, thorough search for the meaningful path forward because it is essential to the quality of life for all Americans."
John Kelliher. Managing Director of Berkeley Research Group (Washington, D.C.). "Trump's executive order has more symbolism than actual impact. New regulations promulgated by Trump administration agencies under the executive order would take more the six months to process and would have effective dates in 2018 or beyond. Before such regulations could be in place, Congress is likely to have changed the underlying laws — making new regulatory interpretations moot. The issuing of the executive order does reaffirm — yet again — that Republicans, including President Trump, are committed to significant reform of the U.S. healthcare system including revisiting the structure of the ACA and even going beyond that to a complete overhaul of the Medicaid program."
Steve Look. Executive Vice President of The Medicus Firm (Dallas). "Initially, the greatest impact of Trump's executive order regarding the ACA will be uncertainty among the healthcare workforce and employers, whether it's warranted or unwarranted. That's because this week's executive order signifies change is coming, while it's still quite unclear what that 'change' will look like, or when said 'change' will actually occur, and that will cause some uncertainty. It will be very difficult to make sweeping changes, given the complexities associated with replacing the current programs, while fulfilling his promise of 'having insurance for everybody,' as he told The Washington Post last week. A truly significant shift will likely take place over years, not months. By executing this order to alleviate the financial burden of the ACA, I think it means that the president is committed to making as significant changes as possible to the ACA and to healthcare legislation in general."
Simon Lorenz, PhD. Co-founder of Klara Healthcare Messaging App (New York City). "From a physician's perspective, repealing the ACA will have an impact on business operations with the most pressing issues stemming from the financial side. Physician-owned smaller practices will be hit the hardest, especially in poorer or rural communities, although many physicians in diverse areas will still be affected.
Potentially 20 million Americans will lose insurance coverage, creating gaps in the patient base of doctors, ultimately hurting their income. Not only would [fewer] people actively schedule services and appointments due to lack of insurance, patients who do seek treatment may not follow through with fulfilling prescriptions due to increased costs.
Doctors will have increasing pressure to take a hard look at income, profits and business operations. This would be an excellent time to audit your practice operations to see how much money is tied to areas that may be impacted. From a business standpoint, doctors need to stay on their toes and adjust to the changes that will come as a result of these executive orders."
Adam Powell. President of Payer+Provider Syndicate (Boston). "While the executive order provides a mandate, it leaves it up to others to determine how it will be implemented. Sections 2, 3, and 4 are all prefaced by the phrase, 'To the maximum extent permitted by law.' We will have to wait and see how various parts of the government determine what changes are permitted. Secondly, while the executive order provides a command to reduce the fiscal burden on various participants within the healthcare system, reducing the burden on one may increase the burden on another. As the goal is to reduce the burden on both healthcare organizations and families, some trade-offs will have to be made. It is currently unclear how the government will make these trade-offs."
Jay Reddy. President and CEO of VitreosHealth (Plano, Texas). "There will likely be some concessions made due to lobbying from poor-performing entities. However, we believe that CMS will not budge on its overall payment model, where the expectation is that 50 percent of all CMS payments in 2018 will be capitated and 80 percent of the payments will be quality-based. Otherwise, companies will just stick to the old way of doing things, hoping that the government will keep pushing out or revising their mandates."
Marc Samuels. CEO of ADVI and Former Health Policy Advisor to President George H.W. Bush and George W. Bush (Washington, D.C.). "As a lifelong businessman, Donald Trump is used to moving quickly, but if the new administration follows through with its self-imposed pressure to accomplish so much so fast, it is certain to result in reckless policy decisions. As alumni of the Bush administrations, we saw this occur in President George W. Bush's time in D.C., compared to his experience as governor. Mr. Trump will need to focus on what really matters to the people who elected him. Right now, there's no bigger issue than what comes next for healthcare."
Julie Scott Allen. Senior Vice President of Drinker Biddle's District Policy Group (Washington, D.C.). "The executive order provides for flexibility by CMS to make adjustments to their current ACA regulations and/or what had been their interpretation and enforcement of current regulations under the Obama administration. Revised regulations could be issued, or more likely, new sub-regulatory guidance could be released by CMS as such efforts would not require legislation or legislative approval. For hospitals that have sought changes in implementation, such changes could be made while Congress plans its ACA repeal and reform strategy. For example, hospital systems have argued that hundreds of quality measures and threat of penalties for not meeting measures have made it a challenge to comply with the ACA's effort to improve quality. Recognizing that a value-based payment system is not going away, even with repeal of the ACA, lessening the number of measures would be a win for many hospitals."
Vernita Todd. Senior Vice President, External Affairs of Health Center Partners of Southern California (San Diego). "For safety-net providers, this could increase the number of people accessing care in the costly halls of emergency rooms, decrease patients' access to specialists and cause patients to forgo any type of preventative care in order to manage the expenses of daily life. As reimbursements decline, it will be inevitable that providers will have to modify their practices to survive. While community health centers will continue to provide access to affordable primary medical and dental care, it is possible that even health centers will be forced to close sites, lay off staff and scale back on services."
Here are some links that helped me on working out Valuation and such.
https://www.healthlawyers.org/Events/Programs/Materials/Documents/HCT13/healthcare_appraisers.pdf
https://www.bloomberg.com/news/articles/2016-06-13/blackstone-said-close-to-raising-5-billion-buyout-fund
https://www.earningswhispers.com/stocks/cyh
http://www.vmghealth.com/Downloads/HospitalValuation_AnalyzingCorrelationHospitalSizeDealMultiple.pdf
http://www.beckershospitalreview.com/legal-regulatory-issues/chs-executives-ink-60m-settlement-in-investor-suit.html
http://www.latimes.com/opinion/editorials/la-ed-replacing-obamacare-cost-shifting-20170121-story.html
http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS
http://www.insideindianabusiness.com/story/30765357/pence-unveils-plans-for-neuro-diagnostic-institute
http://www.forbes.com/sites/brucejapsen/2016/11/30/hospitals-to-trump-any-obamacare-replacement-should-maintain-coverage/#6811458d65b8
Trump walks back 'insurance for everybody' claim, says health care is top priority
http://www.aol.com/article/news/2017/01/18/trump-walks-back-insurance-for-everybody-claim-says-health-ca/21657634/
Trump promises [b]'insurance for everybody' as rallies held nationwide for Obamacare
Major catalyst moving forward...CYH
http://theusexaminer.com/2017/01/17/trump-promises-insurance-for-everybody-as-rallies-held.html
Larry Cash is on top of everything, just listen and get convinced
https://www.veracast.com/webcasts/citigroup/healthcare2016/36109114555.cfm?0.174778626176
49,198 $ 7.15
Trade Detail
After Hours Time (ET) After Hours Price After Hours Share Volume
19:13:09 $ 7.15 High 88
18:39:37 $ 6.92 Low 200
18:39:37 $ 6.92 Low 1,750
18:39:37 $ 6.93 250
18:32:29 $ 6.92 250
18:10:53 $ 6.93 22,221
16:26:26 $ 6.93 3,346
16:26:16 $ 6.93 5,815
16:17:12 $ 6.93 1,453
16:11:11 $ 6.9214 8,100
16:07:01 $ 6.93 1,000
16:06:53 $ 6.9215 700
16:04:47 $ 6.92 30
16:04:46 $ 6.93 750
16:03:02 $ 6.93 1,800
16:03:02 $ 6.93 445
NEW YORK, December 29 (Fitch) Fitch Ratings has removed the ratings of Community Health Systems, Inc. (CHS) from Rating Watch Evolving and has affirmed the Issuer Default Rating (IDR) at 'B'. The Rating Outlook is Negative. The ratings apply to $15.5 billion of debt outstanding at Sept. 30, 2016. A full list of rating actions follows at the end of this release. KEY RATING DRIVERS Persistent Credit Profile Headwinds: The Negative Outlook reflects CHS's high leverage, weak operating trends since the acquisition of rival hospital operator Health Management Associates (HMA) in late 2014, and execution risk surrounding a divestiture and business repositioning plan in some of the company's markets. Growth in EBITDA has also been hampered by ongoing government investigations and lawsuits. Lingering High Leverage: Progress towards deleveraging has been slow since the HMA acquisition; total debt/EBITDA is about 7.4x, versus 5.2x prior to the acquisition. So far in 2016, CHS has paid down about $1.6 billion of debt with the proceeds from the spin-off of Quorum Health Corporation (QHC) and the sale of a minority interest in several hospitals in Las Vegas. This was the first substantial debt repayment since the HMA acquisition. Ongoing Divestiture Program: CHS has completed or announced further asset sales, including divestiture of several more hospitals, some medical office buildings and an 80% share of its home health business. Most of these transactions are expected to close in Q1'17, and Fitch estimates cash proceeds of about $800 million. A recent amendment to the terms of the credit facilities requires that asset sale proceeds are used to repay term loan borrowings. Lower EBITDA, More Profitable Portfolio: Fitch's $2.18 billion and $2.16 billion EBITDA forecast for CHS for 2016 and 2017, respectively, reflects the loss of a cumulative $1.5 billion in revenue as a result of the company's portfolio pruning program. After completing the QHC spin-off, management said they have plans to divest assets that contribute about $2 billion of revenue; this includes the pending transactions expected to close in early-mid 2017. The divestiture program is a central focus of an operational turnaround plan to improve same hospital margins and sharpen focus on a subset of core markets with better organic operating prospects. Headwinds to Less Acute Volumes: CHS's legacy hospital portfolio is exposed to small rural markets facing secular headwinds to lesser acuity patient volumes. Volume trends in the company's markets are highly susceptible to weak macro-economic conditions and seasonal influences on flu and respiratory cases. Health insurers and government payors have been increasing scrutiny of short stay admissions and preventable hospital readmissions. CHS has made some headway in turning around industry lagging volume trends, but these challenges have proven difficult to overcome. Repositioning Portfolio Should Help: Repositioning the portfolio around larger, faster growing markets should help CHS's organic volume growth by reducing exposure to these lesser acuity volumes. Much like CHS's peers in larger hospital markets, the company is shifting the investment focus to building comprehensive networks of inpatient and outpatient facilities to capture share in certain targeted markets. This strategy is aligned with secular trends in healthcare delivery and should benefit the operating profile. However, successful execution of this repositioning is not without challenges from both an operational execution and capital investment perspective and is occurring at a time when cash flow generation is depressed relative to historical levels and management is still grappling with HMA integration issues. Progress in Resolution of Legal Issues: CHS has been dealing with government investigations and lawsuits related to the issue of short-stay hospital admissions. CHS has made good progress in resolving the legal issues facing the legacy CHS hospitals, which did not involve financial fines significant enough to threaten financial flexibility and provided some comfort that the scope of the potential HMA fines or penalties will be similarly manageable. The timing of cash payment to settle the HMA liabilities is uncertain. At Sept. 30, 2016, CHS has recorded a $260 million reserve for potential financial payment associated with these cases. Based on the size of the financial settlement negotiated for the legacy CHS hospitals, Fitch thinks the reserve is adequate to cover the eventual penalty, although there is a tail risk scenario where the payment is greater. The reserve also mirrors the size of the contingent value right agreed to as part of the HMA acquisition, which essentially establishes a floor on the payment amount. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for CHS include: --Top line growth of negative 6.1% and negative 10.5% in 2016 and 2017, respectively, reflects completed and planned divestitures. Underlying same hospital growth of 1%-2% is driven by pricing as patient volumes are assumed to be flat at best and slightly down in most payor classes. --EBITDA before dividends to associates and minorities of $2.18 billion and $2.16 billion in 2016 and 2017, respectively, assumes that the operating EBITDA margin recovers about 150 bps by the end of 2017, to 13.2%, versus the Sept. 30, 2016 LTM level of 11.7%, mostly as the result of divesting less profitable hospitals. --FCF recovers somewhat, and is weakly positive in 2016, benefiting from lower cash interest expense due to debt re-payment, and lower capital intensity based on management's projections for capital expenditures of about 4.5% of revenues in 2016. --Total debt to EBITDA after dividends to associates and minorities drops below 7x in 2017 due to debt repaid with divestiture proceeds; and there are no issues with maintaining debt covenant compliance during the 2016-2019 forecast period. RATING SENSITIVITIES Maintenance of CHS's 'B' IDR considers gross debt/EBITDA after dividends to associates and minorities slowly declining to about 6.5x over the next several years, primarily due to debt reduction in 2017 and slight growth of EBITDA due to stabilizing operating trends in the outer years of the 2016-2019 forecast period. Maintenance of the rating also considers that CHS will generate at least break even FCF. A downgrade to 'B-' could result from gross debt/EBITDA after dividends to associates and minorities durably above 7.0x coupled with a cash flow deficit that requires incremental debt funding. An expectation of gross debt/EBITDA after dividends to associates and minorities sustained near 5.5x and a FCF margin of 3%-4% could result in an upgrade to 'B+'. Risks to the operating outlook include the inability of management to execute on operational improvements necessary to improve organic volume growth and profitability. This could be evidenced by difficultly completing the remaining planned divestitures and associated debt pay-down, and/or sustained negative growth in CHS's organic adjusted admissions. LIQUIDITY At Sept. 30, 2016, sources of liquidity included $133 million of cash on hand, $912 million of available capacity on the senior secured credit facility cash flow revolver and LTM FCF of $198 million. CHS's EBITDA/interest paid is solid for the 'B' rating category at 2.2x. Upcoming debt maturities include the A/R facility with $634 million outstanding at Sept. 30, 2016; $250 million of the $700 million A/R funding commitment matures November 2017 and the remaining $450 million matures November 2018. The 2018-2019 maturity schedule includes $2.2 billion of maturities in 2018 and $3.5 billion in 2019. The upcoming maturities are all secured debt with the exception of $1.9 billion of unsecured notes maturing in 2019; the terms of the unsecured note indentures do limit the company's ability to refinance unsecured debt with secured debt. CHS was granted an amendment to the terms of the credit agreement by the bank lenders during Q4'16 to give near-term relief on the financial maintenance covenant levels. There was no increase in pricing, but the credit enhancements for the lenders strengthened the conditions under which the company is required to use divestiture proceeds to reduce debt, which is a near-term positive from a credit profile perspective. Despite the forecasted decline in EBITDA in the ratings case, Fitch expects the company to remain in compliance with the financial maintenance covenants through the projection period. FULL LIST OF RATING ACTIONS Fitch has removed from Rating Evolving and affirmed the following ratings: Community Health Systems, Inc. --IDR at 'B' CHS/Community Health Systems, Inc. --IDR at 'B'; --Senior secured credit facility at 'BB-/RR2'; --Senior secured notes at 'BB-/RR2'; --Senior unsecured notes at 'B/RR4'. The Rating Outlook is Negative. The 'BB-/RR2' rating for CHS's secured debt (which includes the bank term loans, revolver and senior secured notes) reflects Fitch's expectations for 74% recovery under a hypothetical bankruptcy scenario. The 'B/RR4' rating on CHS's $6.1 billion senior unsecured notes reflects Fitch's expectations for principal recovery of 37%. In the U.S. healthcare sector, Fitch consistently uses a going-concern approach to valuation as opposed to assuming a liquidation value; intrinsic value is assumed to be greater than liquidation value for these companies, implying that the most likely outcome post-default would be reorganization rather than liquidation. The going-concern cash flow (measured by EBITDA) estimate assumes an initial deterioration that provokes a default which is somewhat offset by corrective actions that would take place during restructuring. Fitch assumes a 30% discount to its 2016 forecasted EBITDA less distributions to non-controlling interests of $2.1 billion for CHS, resulting in a going concern EBITDA estimate of $1.5 billion. Fitch applies a 7x multiple to CHS's going concern EBITDA, resulting in an enterprise value (EV) of $10.2 billion. The 7x multiple is based on observation of both recent transactions/takeout and public market multiples in the healthcare industry. Administrative claims are assumed to consume 10%, or about $1 billion of EV, which is a standard assumption in Fitch's recovery analysis. Also standard in its analysis, Fitch assumes that CHS would fully draw the $1 billion available balance on its bank credit revolver in a bankruptcy scenario and includes that amount in the claims waterfall. Fitch applies a waterfall analysis to the going-concern EV based on the relative claims of the debt in the capital structure. Fitch estimates EV available for claims of $9.2 billion. At Sept. 30 2016, about 60% of consolidated net revenue resides in the guarantor group, so Fitch assumes that 60% of the EV, or $5.5 billion, is recovered by first-lien secured holders, leaving $3.7 billion of non-collateral value to be distributed to unsecured claimants. Based on $9.5 billion of total secured claims (which includes the bank term loans, revolver and senior secured notes), the resulting first-lien secured deficiency claim of $3.9 billion is added to $6.1 billion of senior unsecured claims, resulting in $10.1 billion of total unsecured claims, recovery of which is assumed on a pro rata basis. Contact: Primary Analyst Megan Neuburger, CFA Managing Director +1-212-908-0501 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 Secondary Analyst Britton Costa, CFA Director +1-212-908-0524 Committee Chairperson John Kempf Senior Director +1-646-582-4710 Media Relations: Alyssa Castelli, New York, Tel: +1 (212) 908 0540, Email: alyssa.castelli@fitchratings.com. Additional information is available on www.fitchratings.com Summary of Financial Statement Adjustments - Financial statement adjustments that depart materially from those contained in the published financial statements of the relevant rated entity or obligor are disclosed below: --Historical and projected EBITDA is adjusted to add back non-cash stock-based compensation. In 2015, Fitch added back $59 million in non-cash stock-based compensation to the EBITDA calculation. Applicable Criteria Criteria for Rating Non-Financial Corporates (pub. 27 Sep 2016) here Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers (pub. 21 Nov 2016) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here _id=1017123 Solicitation Status here Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2016 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212)
Community Health Systems, Inc. at Bank of America Merrill Lynch 2016 Leveraged Finance Conference
http://www.chs.net/investor-relations/investor-tools/community-health-systems-inc-at-bank-of-america-merrill-lynch-2016-leveraged-finance-conference/
On November 6, 2015, the Company adopted a new open market repurchase program for up to 10,000,000 shares of the Company’s common stock, not to exceed $300 million in repurchases. The repurchase program will expire on the earlier of November 5, 2018, when the maximum number of shares has been repurchased, or when the maximum dollar amount has been expended. During the year ended December 31, 2015, the Company repurchased and retired 532,188 shares at a weighted-average price of $27.31 per share, which is the cumulative number of shares repurchased and retired under this program. No shares were repurchased under this program during the nine months ended September 30, 2016.
Shares Short 3 23.93M
Short Ratio 3 7.16
Short % of Float 3 24.55%
[b]Institutional Ownership 109.86%
http://www.nasdaq.com/symbol/cyh/institutional-holdings/activity
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No: 9)
COMMUNITY HEALTH SYSTEMS INC.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
203668108
(CUSIP Number)
December 31, 2016
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to
which this Schedule is filed:
[X] Rule 13d-1(b)
[ ] Rule 13d-1(c)
[ ] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
CUSIP No. 203668108
(1)Names of reporting persons. BlackRock, Inc.
(2) Check the appropriate box if a member of a group
(a) [ ]
(b) [X]
(3) SEC use only
(4) Citizenship or place of organization
Delaware
Number of shares beneficially owned by each reporting person with:
(5) Sole voting power
13606280
(6) Shared voting power
NONE
(7) Sole dispositive power
13920733
(8) Shared dispositive power
NONE
(9) Aggregate amount beneficially owned by each reporting person
13920733
(10) Check if the aggregate amount in Row (9) excludes certain shares
(11) Percent of class represented by amount in Row 9
12.2%
(12) Type of reporting person
HC
Item 1.
Item 1(a) Name of issuer:
-----------------------------------------------------------------------
COMMUNITY HEALTH SYSTEMS INC.
Item 1(b) Address of issuer's principal executive offices:
-----------------------------------------------------------------------
4000 Meridian Boulevard
Franklin TN 37067
Item 2.
2(a) Name of person filing:
----------------------------------------------------------------------
BlackRock, Inc.
2(b) Address or principal business office or, if none, residence:
-----------------------------------------------------------------------
BlackRock Inc.
55 East 52nd Street
New York, NY 10055
2(c) Citizenship:
--------------------------------------------------------------------
See Item 4 of Cover Page
2(d) Title of class of securities:
-------------------------------------------------------------------
Common Stock
2(e) CUSIP No.:
See Cover Page
Item 3.
If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b) or (c),
check whether the person filing is a:
[ ] Broker or dealer registered under Section 15 of the Act;
[ ] Bank as defined in Section 3(a)(6) of the Act;
[ ] Insurance company as defined in Section 3(a)(19) of the Act;
[ ] Investment company registered under Section 8 of the
Investment Company Act of 1940;
[ ] An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E);
[ ] An employee benefit plan or endowment fund in accordance with
Rule 13d-1(b)(1)(ii)(F);
[X] A parent holding company or control person in accordance with
Rule 13d-1(b)(1)(ii)(G);
[ ] A savings associations as defined in Section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813);
[ ] A church plan that is excluded from the definition of an
investment company under section 3(c)(14) of the Investment Company
Act of 1940;
[ ] A non-U.S. institution in accordance with
Rule 240.13d-1(b)(1)(ii)(J);
[ ] Group, in accordance with Rule 240.13d-1(b)(1)(ii)(K). If filing
as a non-U.S. institution in accordance with
Rule 240.13d-1(b)(1)(ii)(J), please specify the type of
institution:
Item 4. Ownership
Provide the following information regarding the aggregate number
and percentage of the class of securities of the issuer identified in Item 1.
Amount beneficially owned:
13920733
Percent of class
12.2%
Number of shares as to which such person has:
Sole power to vote or to direct the vote
13606280
Shared power to vote or to direct the vote
NONE
Sole power to dispose or to direct the disposition of
13920733
Shared power to dispose or to direct the disposition of
NONE
Item 5.
Ownership of 5 Percent or Less of a Class. If this statement is being
filed to report the fact that as of the date hereof the reporting person
has ceased to be the beneficial owner of more than 5 percent of the
class of securities, check the following [ ].
Item 6. Ownership of More than 5 Percent on Behalf of Another Person
If any other person is known to have the right to receive or the power
to direct the receipt of dividends from, or the proceeds from the sale
of, such securities, a statement to that effect should be included in
response to this item and, if such interest relates to more than 5 percent
of the class, such person should be identified. A listing of the
shareholders of an investment company registered under the Investment
Company Act of 1940 or the beneficiaries of employee benefit plan,
pension fund or endowment fund is not required.
Various persons have the right to receive or the power to direct
the receipt of dividends from, or the proceeds from the sale of
the common stock of
COMMUNITY HEALTH SYSTEMS INC.
No one person's interest in the common stock of
COMMUNITY HEALTH SYSTEMS INC.
is more than five percent of the total outstanding common shares.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported on by the Parent Holding
Company or Control Person.
See Exhibit A
Item 8. Identification and Classification of Members of the Group
If a group has filed this schedule pursuant to Rule 13d-1(b)(ii)(J),
so indicate under Item 3(j) and attach an exhibit stating the identity
and Item 3 classification of each member of the group. If a group
has filed this schedule pursuant to Rule 13d-1(c) or Rule 13d-1(d),
attach an exhibit stating the identity of each member of the group.
Item 9. Notice of Dissolution of Group
Notice of dissolution of a group may be furnished as an exhibit
stating the date of the dissolution and that all further filings with
respect to transactions in the security reported on will be filed,
if required, by members of the group, in their individual capacity.
See Item 5.
Item 10. Certifications
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired and are
held in the ordinary course of business and were not acquired
and are not held for the purpose of or with the effect of changing
or influencing the control of the issuer of the securities and were
not acquired and are not held in connection with or as a participant
in any transaction having that purpose or effect.
Signature.
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement
is true, complete and correct.
Dated: January 9, 2017
BlackRock, Inc.
Signature: Spencer Fleming
-------------------------------------------
Name/Title Attorney-In-Fact
The original statement shall be signed by each person on whose
behalf the statement is filed or his authorized representative.
If the statement is signed on behalf of a person by his authorized
representative other than an executive officer or general partner
of the filing person, evidence of the representative's authority to
sign on behalf of such person shall be filed with the statement,
provided, however, that a power of attorney for this purpose
which is already on file with the Commission may be incorporated
by reference. The name and any title of each person who
signs the statement shall be typed or printed beneath his signature.
Attention: Intentional misstatements or omissions of fact constitute
Federal criminal violations (see 18 U.S.C. 1001).
Exhibit A
Subsidiary
BlackRock (Netherlands) B.V.
BlackRock Advisors, LLC
BlackRock Asset Management Canada Limited
BlackRock Asset Management Ireland Limited
BlackRock Asset Management Schweiz AG
BlackRock Financial Management, Inc.
BlackRock Fund Advisors*
BlackRock Institutional Trust Company, N.A.
BlackRock Investment Management (Australia) Limited
BlackRock Investment Management (UK) Ltd
BlackRock Investment Management, LLC
BlackRock Life Limited
*Entity beneficially owns 5% or greater of the outstanding
shares of the security class being reported on this
Schedule 13G.
Exhibit B
POWER OF ATTORNEY
The undersigned, BLACKROCK, INC., a corporation duly organized
under the laws of the State of Delaware, United States (the
"Company"), does hereby make, constitute and appoint each of
Matthew Mallow, Chris Meade, Howard Surloff, Dan Waltcher,
Georgina Fogo, Charles Park, Enda McMahon, Carsten Otto,
Con Tzatzakis, Karen Clark, Andrew Crain, Herm Howerton,
David Maryles, Daniel Ronnen, John Stelley, John Ardley,
Maureen Gleeson and Spencer Fleming acting severally, as its
true and lawful attorneys-in-fact, for the purpose of, from time to
time, executing in its name and on its behalf, whether the
Company is acting individually or as representative of others,
any and all documents, certificates, instruments, statements, other
filings and amendments to the foregoing (collectively, "documents")
determined by such person to be necessary or appropriate to
comply with ownership or control-person reporting requirements
imposed by any United States or non-United States governmental
or regulatory authority, Including without limitation Forms 3, 4, 5,
13D, 13F, 13G and 13H and any amendments to any of the
Foregoing as may be required to be filed with the Securities and
Exchange Commission, and delivering, furnishing or filing any
such documents with the appropriate governmental, regulatory
authority or other person, and giving and granting to each such
attorney-in-fact power and authority to act in the premises as fully
and to all intents and purposes as the Company might or could
do if personally present by one of its authorized signatories,
hereby ratifying and confirming all that said attorney-in-fact shall
lawfully do or cause to be done by virtue hereof. Any such
determination by an attorney-in-fact named herein shall be
conclusively evidenced by such person's execution, delivery,
furnishing or filing of the applicable document.
This power of attorney shall expressly revoke the power of attorney
dated 1st day of October, 2015 in respect of the subject matter hereof,
shall be valid from the date hereof and shall remain in full force and
effect until either revoked in writing by the Company, or, in respect of
any attorney-in-fact named herein, until such person ceases to be an
employee of the Company or one of its affiliates.
IN WITNESS WHEREOF, the undersigned has caused this power of
attorney to be executed as of this 8th day of December, 2015.
BLACKROCK, INC.
By:_ /s/ Chris Jones
Name: Chris Jones
Title: Chief Investment Officer
Wayne Smith: CHS on track to overcome 'ugly' struggles
Jan 12, 2017, 12:12pm CST
Community Health Systems Inc. has never had a default or failed to live up to the terms of its debt, despite carrying a total of about $46 billion over the past 10 years.
That, Chairman and CEO Wayne Smith said during a presentation at a health care conference late Wednesday, bodes well for the company's ability to overcome its current struggles.
Wayne Smith is chairman and CEO of Community Health Systems Inc.
Enlarge
Wayne Smith is chairman and CEO of Community Health Systems Inc.
Photo by Nathan Morgan | Nashville Business Journal
"As ugly as this appears right now … we'll work our way through this and out of this going forward," Smith said while discussing the company's debt maturity.
Hospital giant CHS (NYSE: CYH), one of Williamson County's largest employers and a cornerstone of Nashville's $40 billion health care industry, has seen its stock price plunge nearly 90 percent since June 2015, as the integration of Florida-based Health Management Associates has proven more challenging than the company expected. With $15 billion in long-term debt weighing on it, the company has spent the past several months shedding hospitals and other assets to raise money to pay down that debt, an effort Smith said is "on track" to succeed and should be complete this summer.
"We're on a track to reduce not only the size of our debt but also to reduce our [debt to earnings ratio] going forward," Smith told the audience at the J.P. Morgan Healthcare Conference in San Francisco.
"2016 has been a difficult year for us, as many of you all know," Smith said at the start of his presentation. "But we're extremely positive about our future. … We believe that we're doing the right things."
Beyond its own performance, CHS is also facing the same uncertainty as all of Nashville's hospital operators when it comes to the future of the Affordable Care Act and Republicans' plans to replace it. Smith – who called himself "a good Republican" at one point – said he doesn't know enough specifics to predict how a Republican Obamacare replacement might work, but believes any changes are unlikely to be implemented until after the mid-term elections in 2018.
Smith's presentation did not address the company's review of its options, including a potential leveraged buyout, which CHS confirmed in the fall but which the company has said is not guaranteed to result in an kind of transaction. CHS is scheduled to report its 2016 earnings next month.
Just hold on to your shares and win.....
Easy call LT and that's where you need to be.......
Looking forward to 2017...CYH
RFB is a complete idiot.....
Spider dummy is a fool...
Just hold on to your shares and win.....
Easy call LT and that's where you need to be.......
ommunity Health Systems Announces Definitive Agreement to Divest Spokane, Washington Health System
Date : 11/17/2016 @ 8:15PM
Source : Business Wire
Stock : Community Health Systems, Inc. (CYH)
Quote : 5.49 -0.01 (-0.18%) @ 4:02PM
ommunity Health Systems, Inc. (NYSE:CYH) announced today that subsidiaries of the Company have signed a definitive agreement to sell Rockwood Health System and its associated assets to MultiCare Health System for $425 million, subject to certain adjustments. Facilities included in the transaction include 388-bed Deaconess Hospital in Spokane, 123-bed Valley Hospital in Spokane Valley and the multi-specialty Rockwood Clinic, all in Washington.
Commenting on the announcement, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, “Rockwood Health System is a strong healthcare system, and we have carefully considered how to position it for future success. The hospitals and clinic will benefit from joining a growing regional health system that is expanding its network across the Pacific Northwest.”
The transaction is expected to close in the first quarter of 2017, subject to customary regulatory approvals and closing conditions. This transaction is one of the seven transactions discussed on the Company’s third quarter 2016 earnings call. The Company will apply proceeds of the transaction to pay down debt.
About Community Health Systems, Inc.
Community Health Systems, Inc. is one of the largest publicly traded hospital companies in the United States and a leading operator of general acute care hospitals in communities across the country. The Company, through its subsidiaries, owns, leases or operates 158 affiliated hospitals in 22 states with an aggregate of nearly 27,000 licensed beds. 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.
Camber Capital Increases Stake In Community Health Systems
http://marketexclusive.com/camber-capital-increases-stake-community-health-systems-inc-nysecyh/36484/?icd1
I would now like to comment on our bank covenants, our main two tests under the credit [ruining] of secured net leverage ratio, and the interest coverage ratio. The secured net leverage ratio is calculated as a ratio of total secured debt, less unrestricted cash and cash equivalent to a consolidated EBITDA, while the interest rate coverage is a ratio of consolidated EBITDA as defined -- compared with consolidated interest expense for the period.
Under the EBITDA calculations and above ratios, it's a trailing 12-month calculation against the net income of certain pro forma adjustments that account for the impact of material acquisitions for divestitures, adjustments for interest or taxes or depreciation and amortization, and net income attributable to noncontrolling interest, stock compensation, restructuring costs, and the financial impact of other non-cash or nonrecurring items during a 12-month period.
For the 12-month period ending September 30, 2016, the secured net leverage ratio of financial covenant other than the ratios of secured debt is defined to less than 4.25 to 1. And for the 12-month period ending September 30, the interest ratio financial covenant in the credit facility limited to ratio of consolidated EBITDA or consolidated interest to greater than or equal to 2.0.
The Company was in compliance with all such covenants as September 30, 2016, with a secured net leverage ratio of 3.95 and an interest rate coverage of 2.55. Our interest rate cushion on our secured leverage ratio is about 7% and our EBITDA cushion on interest coverage is about 27%.
Not a chance....
CUSIP No. 203668108
Page 2 of 6
1. Names of Reporting Persons.
Camber Capital Management LLC
42-1693587
2. Check the Appropriate Box if a Member of a Group
(a) ?
(b) ?
3. SEC Use Only
4. Citizenship or Place of Organization
Massachusetts
Number of Shares
Beneficially
Owned by
Each Reporting
Person With:
5. Sole Voting Power
0 shares
6. Shared Voting Power
6,250,000 shares
7. Sole Dispositive Power
0 shares
8. Shared Dispositive Power
6,250,000 shares
9. Aggregate Amount Beneficially Owned by Each Reporting Person
Camber Capital Management LLC – 6,250,000 shares
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares ?
11. Percent of Class Represented by Amount in Row (9)
Camber Capital Management LLC – 5.50%
12. Type of Reporting Person
Camber Capital Management LLC – 00 (Limited Liability Company)
13G
CUSIP No. 203668108
Page 3 of 6
1. Names of Reporting Persons.
Stephen DuBois
Not applicable
2. Check the Appropriate Box if a Member of a Group
(a) ?
(b) ?
3. SEC Use Only
4. Citizenship or Place of Organization
Stephen DuBois – United States
Number of Shares
Beneficially
Owned by
Each Reporting
Person With:
5. Sole Voting Power
0 shares
6. Shared Voting Power
6,250,000 shares
7. Sole Dispositive Power
0 shares
8. Shared Dispositive Power
6,250,000 shares
9. Aggregate Amount Beneficially Owned by Each Reporting Person
Stephen DuBois – 6,250,000 shares
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares ?
11. Percent of Class Represented by Amount in Row (9)
Stephen DuBois – 5.50%
12. Type of Reporting Person
Stephen DuBois – IN
13G
CUSIP No. 203668108
Page 4 of 6
ITEM 1.
(a) Name of Issuer:
Community Health Systems, Inc.
(b) Address of Issuer's Principal Executive Offices:
4000 Meridian Boulevard, Franklin, TN 37067
ITEM 2.
(a) Name of Person Filing:
Camber Capital Management LLC
Stephen DuBois
(b) Address of Principal Business Office, or if None, Residence:
Camber Capital Management LLC
Stephen DuBois
101 Huntington Avenue
Suite 2101
Boston, MA 02199
(c) Citizenship:
Camber Capital Management LLC – Massachusetts
Stephen DuBois – United States
(d) Title of Class of Securities:
Common Stock, par value $0.01 per share
(e) CUSIP Number:
203668108
I was buying when the big boy was buying, but glad I got out around $10 before the big plunge. Smelling like a BK!
Getting some perspective.
Oct 27 (Reuters) - HCA Holdings Inc's efforts to rein in costs has helped the company cement its position as the largest U.S. for-profit hospital operator, far outperforming its highly leveraged rivals amid a slowdown in demand.
The company on Thursday posted a higher-than-expected quarterly profit, buoyed by cost controls and a modest growth in patient admissions.
HCA's labor costs and expenses on salaries and benefits came in at 42.7 percent of net revenue in the third quarter - 104 basis points below that projected by Barclays analysts.
Barclays said the drop in labor costs was in contrast to that reported by rival Community Health Systems Inc in its preliminary results on Wednesday.
Investor sentiment on hospital operators has soured this year as concerns have mounted over slowing patient volumes, rising expenses and high debt.
HCA said equivalent admissions, which include both patients who stay in the hospital overnight and those who are treated on an outpatient basis, rose 1.3 percent in the third quarter.
Community Health reported a 1.5 percent fall in quarterly adjusted admissions on a same-store basis, while costs related to health insurance and state supplemental programs rose.
For Tenet Healthcare Corp, which relies heavily on the federal government for most of its revenue, the main concern is likely to be reimbursement pressure, analysts said.
The government, through President Barack Obama's healthcare reform law, is exerting greater power over the acute-care industry by making changes to Medicare payments, including payment cuts and treatment quality incentives.
Private insurers are also likely to follow suit.
Tenet, the third-largest U.S. for-profit hospital chain, is scheduled to report quarterly earnings on Monday.
"We see HCA valuation as appropriately moving away from the pack as the market segments those who can and those who can't run hospitals," Mizuho analyst Sheryl Skolnick wrote.
HCA, which has a market capitalization of about $30 billion, had nearly the same amount of debt as of June 30. Community Health had more than $15 billion in debt and Tenet had about $14 billion in debt.
Tenet has a market value of about $2 billion, while Community Health's value dropped to about $550 million after the rout in its shares on Thursday.
Up to Wednesday's close, Community Health's stock more than halved this year, while Tenet declined 29 percent. HCA's shares rose nearly 17 percent in the same period.
HCA earned $1.61 per share, excluding items, topping analysts' average estimate of $1.42 per share, according to Thomson Reuters I/B/E/S. The company also raised its full-year adjusted earnings forecast.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty and Sayantani Ghosh)
As of February 15, 2016, the company owned, leased, or operated 195 affiliated hospitals in 29 states with approximately 30,000 licensed beds
Two new hospital buildings are opening this year in Dallas, Texas. Both are big teaching hospitals and cost around $1.5 million per bed to build.
The University of Texas Southwestern hospital (picture below) is over 1.3 million square feet and has 532 beds. It cost $800 million. Parkland Memorial, Dallas County's public hospital, is about 2 million square feet and has 862 beds. It cost $1.3 billion.
Earlier today, I read about plans to build a small community hospital in a rural area with just 25 beds. The cost is estimated at $30-40 million.
Mercy Hospital in Merced, California has 185 beds and cost $166 million when it was built five years ago. At less than $1 million per bed, it was considered quite economical, especially for California.
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