Community Health Systems

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Community Health Systems
Traded as NYSECYH
Industry Health care
Founded 1985
Richard Ragsdale David Steffy
Headquarters Franklin, Tennessee, United States
Key people
Wayne T. Smith (CEO)
Larry Cash (CFO)
Revenue Increase$7.2 billion (2007)
Increase$458 million (2007)
Decrease$30 million (2007)
Number of employees

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]

The company operates 25 of the fifty hospitals in the United States that charge uninsured patients the most - all charge such patients more than ten times the actual cost of care.[2][3] Upon purchasing Health Management Associates based in Florida, they acquired CEO Page Vaughan. Although he has been based in Chester, SC for a number of years, he is the main author of a scheme to pressure physicians to admit when not nessassary to increase revenue. See corporate crime


E. Thomas Chaney, former executive of Hospital Affiliates, Inc. and David Steffy and Richard Ragsdale, former executives at Hospital Corporation of America spinoff Republic Health Corporation, formed Community Health Systems in 1985.[4]

The company made its initial public offering in 1991. In 1996, the company was purchased by private equity firm Forstmann Little & Company.[5] Community Health Systems went public again in 2000.[6] In August 2003, the company acquires Southside Regional Medical Center.[7] The company's flagship, and largest hospital by number of beds is Trinity Medical Center located in Birmingham, Alabama with 534 beds.[8] Trinity is due to be replaced by its new 13 story Grandview Medical Center hospital, the former HealthSouth Medical Center in 2015.

In 2007, Community Health Systems purchased McKenzie-Willamette Hospital in Springfield, Oregon.[9] 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.[10] 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.[11] 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."[12]

In 2011, it was 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.[13]

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.[14] 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.[15]

It was reported on August 18, 2014 that hackers broke into Community Health System's records system and stole data on 4.5 million patients. This data includes names, Social Security numbers, physical addresses, birthdays and telephone numbers.


  1. ^ "CHS closes Triad purchase". Nashville Business Journal. 2007-07-25. 
  2. ^ Sun, Lena H. (June 8, 2015). "50 U.S. hospitals mark up prices 1000 percent for some patients, study finds". The Washington Post (in en-US). ISSN 0190-8286. Retrieved 2015-06-08. 
  3. ^ Bai, Ge; Anderson, Gerard F. (June 1, 2015). "Extreme Markup: The Fifty US Hospitals With The Highest Charge-To-Cost Ratios". Health Affairs 34 (6): 922–928. doi:10.1377/hlthaff.2014.1414. ISSN 0278-2715. 
  4. ^ "BUSINESS PEOPLE; 3 Hospital Bidders Facing Skepticism". New York Times. 1987-04-13. 
  5. ^ Freundheim, Milt (2006-06-11). "Forstmann to Acquire Community Health for $1.1 Billion". New York Times. 
  6. ^ "Stock Offerings Are Set". New York Times. 2000-06-05. 
  7. ^ "Community Health Systems Acquires Southside Regional Medical Center in Petersburg, Virginia". August 4, 2003. Retrieved Jul 26, 2013. 
  8. ^ "Community Health Systems 2010 10-K". Securities and Exchange Commission. 2011-02-25. 
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  13. ^ "Community Health Faces Inquiry on Medicare Claims". New York Times. 2011-11-15. 
  14. ^ De La Merced, Michael J. (30 July 2013). "Community Health Agrees to Buy H.M.A. for $3.6 Billion". New York, NY: New York Times. 
  15. ^ DuBois, Shelley (24 January 2014). "Community Health Systems' HMA purchase clears hurdle". The Tennessean. 

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