CYH Filings — Community Health Systems, Inc. - FilingSpy
CYH
Community Health Systems, Inc.
One of the largest hospital operators in the United States, running roughly six dozen hospitals and more than a thousand outpatient sites across a dozen-plus states, from emergency rooms to urgent care and physician practices. Founded in 1985 in Franklin, Tennessee, it grew by buying struggling rural and smaller-town community hospitals and folding them into a bigger network that shares back-office services like billing and supply buying. Its name reflects that mission—keeping local "community" hospitals alive with the help of a larger corporate system.
Q2 2026 net income fell to a $58M loss as divestiture and debt gains dropped from a year earlier
The quarter swung to a net loss after last year's divestiture windfall faded. fell 6.1% to $2.965B and was 85.1% as the $282M profit a year earlier gave way to a $58M loss when hospital sale and debt extinguishment gains shrank. The company is back to relying on operations while debt keeps declining.
Key takeaways
was a $58M loss versus $282M profit a year earlier, as gains on hospital sales and debt extinguishment fell from the prior-year quarter's levels; the Q1 2026 filing showed a $230M sale gain and $140M that produced a $25M loss, and this quarter continued the reversal of those one-off gains.
Consolidated net operating fell 6.1% to $2.965B, with divested hospitals removing revenue while rose 2.4% on higher volumes and reimbursement rates per the MD&A.
Section summaries
Management's Discussion and Analysis
Same-store revenue grew 2.4% but net income fell to $104M on lower divestiture gains and higher operating costs.
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Consolidated net operating revenues fell 9.8% to $2.825B, driven by hospital divestitures; same-store revenues rose 2.4% on higher volumes and reimbursement rates.
was 85.1%, down 0.5 points from Q1 2026's 85.6% and up 0.6 points ; was 9.5% versus 16.3% a year earlier.
was a $297M use, swinging from a $120M inflow a year earlier, driven by higher and a smaller tax refund per the Q1 2026 filing; the current quarter MD&A cites a $209M use from higher interest payments and .
fell 10.4% to $10.1B from $11.3B a year earlier, and cash rose 65.2% to $712M, aided by $1.2B in divestiture proceeds funding $600M in debt repurchases per the MD&A.
The DOJ is investigating utilization review and inpatient admissions practices, and a March 2026 grand jury indicted a former medical director and seven others in a behavioral health unit criminal probe; management states no pending matter is expected to materially harm financial position.
What changed
Q2 2025 and divestiture impact: last year's filing flagged Q3 2025 same-store admissions as Medicaid cuts loomed; this quarter same-store revenue rose 2.4% but consolidated fell 6.1% to $2.965B as divestitures removed revenue, continuing the pattern from Q1 2026's $282M divestiture drag.
Golden v. Community Health Systems $1.21B spin-off recovery: the Q1 2026 watch item noted a pending summary judgment motion; this 10-Q reports the motion remains pending with no resolution.
DOJ investigation: flagged in Q3 2025 as a civil investigative demand and criminal investigation; this filing adds a March 2026 grand jury indictment of eight individuals and states no expected material financial harm.
: Q1 2026 used $297M versus a $120M inflow a year earlier; this quarter's MD&A shows a $209M use, confirming the cash generation reversal flagged as a Q1 watch item.
Debt reduction: FY 2025 closed with $10.4B and Q1 2026 at $10.1B; this quarter long-term debt is $10.1B, down 10.4% , consistent with the divestiture-funded plan.
What to watch
Q3 2026 same-store adjusted admissions and per adjusted admission as 2025 Reconciliation Law Medicaid restrictions expand.
Resolution of the Golden v. Community Health Systems summary judgment motion on the $1.21B QHC spin-off recovery claim.
recovery after the $209M quarterly use, tied to collection and divestiture proceeds deployment.
Any financial exposure from the DOJ criminal investigation and civil inquiry as the grand jury process proceeds.
Operating expenses as a percentage of net increased to 88.5%, with salaries and benefits rising to 43.8% due to wage inflation and hiring.
dropped to $104M from $320M, primarily because gains on hospital sales fell to $172M from $239M and a $5M debt extinguishment loss replaced a $138M gain.
Same-store inpatient admissions increased 1.9% and rose 2.9%, while consolidated volumes declined over 11% due to divestitures.
swung to a $209M use, reflecting higher interest payments and changes; $1.2B in divestiture proceeds funded $600M in debt repurchases.
Management expects the 2025 Reconciliation Law and Medicaid eligibility restrictions to adversely impact and increase self-pay patients.
Quantitative and Qualitative Disclosures About Market Risk
During the three months ended June 30, 2026, there have been no material changes in the quantitative and qualitative disclosures set forth in Item 7A. Quantitative and Qualitative Disclosures about Market Risk in our 2025 Form 10-K.
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During the three months ended June 30, 2026, there have been no material changes in the quantitative and qualitative disclosures set forth in Item 7A. Quantitative and Qualitative Disclosures about Market Risk in our 2025 Form 10-K.
Company faces multiple government investigations and a spin-off lawsuit but believes no current matter will materially harm its financial position.
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The Department of Justice is investigating practices related to utilization review, inpatient admissions, and inpatient dialysis, triggered by a 2022 former employee allegation.
A criminal investigation targets a former medical director and several current/former officers over conduct in a behavioral health unit; a grand jury indicted the doctor and seven individuals in March 2026.
A lawsuit seeks recovery of the $1.21 billion QHC paid the Company in its 2016 spin-off, alleging unjust enrichment; the Company's motion is pending.
Management states no pending are expected to materially affect the consolidated financial position or liquidity, though an adverse outcome could materially impact a single period's results or cash flows.
The Company routinely addresses non-compliance issues through voluntary repayments and disclosure protocols, which can lead to significant settlement obligations.