CYH · Community Health Systems, Inc.

Community Health Systems announced Q1 2026 results showing net operating revenues of $2.965 billion, a 6.1% decline from $3.159 billion in Q1 2025, primarily driven by divestitures including three hospitals and an 80% interest in another effective February 1, 2026, and one more on April 1, 2026. On a same-store basis, revenues grew 3.1%, reflecting resilience amid challenges. Admissions fell 10.8% overall and 1.3% same-store, with adjusted admissions down 10.5% and 0.5% same-store, signaling softer volumes and an unfavorable payor mix shift. The GAAP net loss widened to $58 million or $(0.43) per diluted share from $13 million or $(0.10), while adjusted diluted EPS was $(0.48) versus $(0.03) prior year. Adjusted EBITDA dropped to $309 million from $376 million, pressured by divestitures, volume declines, and payor mix, partially offset by higher reimbursement rates and supplemental program benefits. Operating expenses as a percentage of revenues improved slightly to 90.5% from 91.0%, with income from operations at 9.5% of revenues. CEO Kevin J. Hammons highlighted progress in quality scores, patient experience, physician satisfaction, and growth investments despite macroeconomic headwinds. The company redeemed $223 million of its 10.875% Senior Secured Notes due 2032 using a special call at 103%, recognizing an $8 million pre-tax loss. Net cash used in operations was $297 million, contrasting $120 million provided last year. The firm reaffirmed its full-year 2026 earnings guidance from February 18, 2026, underscoring confidence in strategic priorities for long-term value creation. A pending divestiture of four Arkansas facilities to Freeman Health System for $112 million was noted, referencing a prior 8-K.