Community Health Systems

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Community Health Systems
Type Public
Traded as NYSECYH
Industry Health care
Founded 1985
Founder(s) Charles Miller
Richard Ragsdale
Headquarters Franklin, Tennessee, United States
Key people Wayne T. Smith (CEO)
Larry Cash (CFO)
Revenue Increase$7.2 billion (2007)
Operating income Increase$458 million (2007)
Net income Decrease$30 million (2007)
Employees 90,000
Website http://www.chs.net/

Community Health Systems Inc. is a Fortune 500 company based in Franklin, Tennessee. It is the largest non-urban provider of general hospital healthcare services in the United States in terms of number of acute care facilities. As of January 2014, it operates 206 hospitals in 29 states.[1]

History[edit]

E. Thomas Chaney, former executive of Hospital Affiliates, Inc. and Charles Miller and Richard Ragsdale, former executives at Hospital Corporation of America spinoff Republic Health Corporation, formed Community Health Systems in 1985.[2]

The company made its initial public offering in 1991. In 1996, the company was purchased by private equity firm Forstmann Little & Company.[3] Community Health Systems went public again in 2000.[4] In August 2003, the company acquires Southside Regional Medical Center. [5] The company's largest hospital by number of beds is Trinity Medical Center located in Birmingham, Alabama with 534 beds.[6]

In 2007, Community Health Systems purchased McKenzie-Willamette Hospital in Springfield, Oregon. [7] In 2010, the hospital's healthcare workers' union, SEIU, Local 49, claimed that workload increases, slashed benefits, and staff reductions had lowered the quality of both patient care and quality of life for employees. [8] The union, in its "Profits Before Community" campaign against the hospital, continues to highlight that profits have tripled while charitable care and employee benefits have steadily decreased since the hospital moved from a non-profit to a for-profit enterprise under CHS.[9] After the latest round of negotiations with this Fortune 500's Oregon holding, another round of cuts means that "30 workers are aware that they will no longer have a job with benefits after the new year."[10]

Currently it is being accused by Tenet Healthcare of overbilling Medicare in its aggressive admissions policy compared to its peers. It was subpoenaed by Medicare on its aggressive billing to the Medicare systems.[11]

In 2013, Community Health Systems entered into an agreement with Health Management Associates to purchase HMA for about $3.6 billion in cash and stock.[12] The merger is expected to go through and will make Community Health Systems the largest for-profit hospital operator (when ranked by the number of hospitals) in the United States.[13]

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