Community Health Systems (CYH) 8-K Other events

QuickLinks -- Click here to rapidly navigate through this document

Exhibit Number 99.1

Investor Contact: W. Larry Cash
Executive Vice President
and Chief Financial Officer
(615) 373-9600

COMMUNITY HEALTH SYSTEMS, INC.
ANNOUNCES STRONG SECOND QUARTER 2002 RESULTS WITH NET
OPERATING REVENUES UP 32.3% AND EBITDA UP 18.5%

COMPLETED ACQUISITION IN JUNE OF 90-BED HOSPITAL

BRENTWOOD, Tenn. (July 24, 2002) — Community Health Systems, Inc. (NYSE: CYH) today announced strong financial and operating results for the second quarter and six months ended June 30, 2002.

        Net operating revenues for the second quarter ended June 30, 2002, totaled $530.6 million, a 32.3% increase compared with $400.9 million for the same period last year. EBITDA for the second quarter of 2002 was $87.5 million, compared with $73.8 million for the same period last year, representing a 18.5% increase. Net income was $24.2 million, or $0.24 per share (diluted), on 99.8 million average shares outstanding for the quarter ended June 30, 2002, compared with $9.7 million, or $0.11 per share (diluted), on 87.5 million average shares outstanding for the same period last year. Refer to page 4 for "Financial Highlights."

        The consolidated financial results for the second quarter ended June 30, 2002, reflect a 28.0% increase in total admissions and a 29.0% increase in adjusted admissions, compared with the second quarter of 2001. On a same store basis, admissions increased 4.6%, adjusted admissions increased 6.4%, and net revenues increased 8.0% compared with the same period last year.

        Net operating revenues for the six months ended June 30, 2002 totaled $1,064 million, compared with $799.6 million for the same period last year, a 33.1% increase. EBITDA for the six months ended June 30, 2002 was $179.9 million, compared with $151.1 million for the same period last year, a 19.1% increase. Net income was $51.4 million, or $0.52 per share (diluted), on 108.3 million average shares outstanding which includes the assumed conversion of the convertible notes for the six months ended June 30, 2002, compared with $20.5 million, or $0.23 per share (diluted), on 87.6 million average shares outstanding for the same period last year.

        The consolidated financial results for the six months ended June 30, 2002 reflect a 26.3% increase in admissions and a 27.7% increase in adjusted admissions, compared with the same period last year. On a same store basis, admissions increased 3.9%, adjusted admissions increased 5.4%, and net revenues increased 8.7%, compared with the same period last year.

        "Community Health Systems continued to build momentum in the second quarter of 2002 with very strong financial and operating results," commented Wayne T. Smith, chairman of the board, president and chief executive officer of Community Health Systems, Inc. "Our impressive year-over-year revenue growth reflects improved volume and the benefits of the acquisitions and capital investments in our facilities during the past year. Our same store growth metrics demonstrate our ability to consistently execute our operating strategy as we continue to assimilate additional hospitals into our system. We are very pleased with the current trends in our business and believe we are well positioned for continued success in 2002."

        The 14.1% and 23.7% increases in the weighted average number of shares (diluted) outstanding for the second quarter and the six months ended June 30, 2002, respectively, compared to the same

periods last year, are due principally to the Company's concurrent stock and convertible debt offerings in October 2001, and the effects of the assumed conversion of the convertible notes for the six months ended June 30, 2002. The impact of the assumed conversion of the convertible notes was not significant enough to cause reported fully diluted net income per share to decrease.

        The Company completed one acquisition of a non-profit hospital in a new state during the second quarter of 2002. With the acquisition of Plateau Medical Center (90 beds) in Oak Hill, West Virginia, the number of hospitals owned or leased increased to 60 and the number of states in which we operate increased to 21. The other acquisitions completed during the first six months of 2002 were Gateway Regional Medical Center (386 beds) in Granite City, Illinois, acquired on January 1, 2002, and Helena Regional Medical Center (155 beds) in Helena, Arkansas, acquired on March 1, 2002. Each of these hospitals is the sole provider of general hospital services in its community.

        "Community Health Systems has set a high standard for success in our industry with our ability to selectively acquire hospitals," added Smith. "With three hospitals added to our portfolio in the first half of 2002, we remain confident we are on track to meet our acquisition goals for the year. Our recognition in the marketplace as the acquirer of choice reflects our steadfast commitment to improving the level of healthcare in the non-urban communities we serve."

        Located in the Nashville, Tennessee suburb of Brentwood, Community Health Systems is a leading operator of general acute care hospitals in non-urban communities throughout the country. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol "CYH."

        Community Health Systems, Inc. will hold a conference call to discuss this press release on Thursday, July 25, 2002 at 10:30 a.m. Central, 11:30 a.m. Eastern. Investors will have the opportunity to listen to a live Internet broadcast of the conference call through the Company's web site at www.chs.net, or www.companyboardroom.com. To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and continue through August 25, 2002.

Statements contained in this news release regarding expected operating results, acquisition transactions 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 Registration Statement on Form S-1 (Registration Statement No. 333-69064) and Form 10-K for the year ended December 31, 2001 and Form 10-Q for the quarter ended March 31, 2002. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements.

COMMUNITY HEALTH SYSTEMS, INC.
Financial Highlights
(Unaudited)
(In thousands, except per share amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2002		2001		2002			2001
Net operating revenues	$	530,582	$	400,909	$	1,064,101		$	799,554
EBITDA (a)	$	87,520	$	73,830	$	179,920		$	151,078
Net income	$	24,241	$	9,651	$	51,417		$	20,499	(b)
Net income per share — basic	$	0.25	$	0.11	$	0.52		$	0.24	(b)
Weighted average number of shares outstanding — basic		98,268		85,713		98,236			85,696
Net income per share — diluted	$	0.24	$	0.11	$	0.52		$	0.23	(b)
Weighted average number of shares outstanding — diluted		99,844		87,518		108,299	(c)		87,554

(a)

Excludes minority interest in earnings.

(b)

Effective January 1, 2002, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 142 "Goodwill and other intangible assets", related to the non-amortization of goodwill. The adoption of SFAS No. 142 caused a favorable increase of $0.12 per share for the six months ended June 30, 2002. On a pro forma basis, the adoption of SFAS No. 142 would have resulted in net income for the six months ended June 30, 2001 of $32.8 million or $0.37 per share (diluted), representing a $0.14 increase based on the smaller number of shares outstanding in that period. When compared to the 2001 pro forma results, our net income and net income per share (diluted) results for the six months ended June 30, 2002 would have increased 56.7% and 40.5%, respectively.

(c)

Adjusted to include employee stock options and assumed conversion of convertible notes for the six months ended June 30, 2002. Since the net income per share impact of the conversion of the convertible notes is less than the basic net income per share for the current period, the convertible notes are dilutive and accordingly, must be included in the fully diluted calculation even though there is no actual change in the reported net income per share. Refer to page 5 for detail calculation of net income per share.

COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)

			Three Months Ended June 30,				Six Months Ended June 30,
			2002		2001		2002		2001
Net operating revenues			$	530,582	$	400,909	$	1,064,101	$	799,554
Operating expenses:
	Salaries and benefits			214,215		156,047		431,379		309,781
	Provision for bad debts			47,722		36,986		97,619		73,959
	Supplies			61,905		46,129		125,905		92,888
	Other operating expenses			119,220		87,917		229,278		171,848
	Depreciation and amortization			28,951		21,633		57,435		43,094
	Amortization of goodwill			—		7,028		—		14,074
	Minority interests in earnings			755		—		1,516		—
		Total expenses		472,768		355,740		943,132		705,644
Income from operations				57,814		45,169		120,969		93,910
Interest expense, net				16,522		25,621		33,251		53,174
Income before income taxes				41,292		19,548		87,718		40,736
Provision for income taxes				17,051		9,897		36,301		20,237
Net income			$	24,241	$	9,651	$	51,417	$	20,499
Net income per share — basic			$	0.25	$	0.11	$	0.52	$	0.24
Net income per share — diluted			$	0.24	$	0.11	$	0.52	$	0.23
Weighted average number of shares outstanding:
	Basic			98,268		85,713		98,236		85,696
	Diluted			99,844		87,518		108,299		87,554
Net income per share calculation:
	Net income		$	24,241	$	9,651	$	51,417	$	20,499
	Add — Convertible notes interest, net of taxes			—		—		4,378		—
	Adjusted net income		$	24,241	$	9,651	$	55,795	$	20,499
Weighted average number of shares outstanding — basic				98,268		85,713		98,236		85,696
Add effect of dilutive securities:
	Employee stock options			1,576		1,805		1,481		1,858
	Convertible notes			—		—		8,582		—
Weighted average number of shares outstanding — diluted				99,844		87,518		108,299		87,554
	Net income per share — diluted		$	0.24	$	0.11	$	0.52	$	0.23

COMMUNITY HEALTH SYSTEMS, INC.
Selected Operating Data
(Unaudited)
($ in thousands)

		For the Three Months Ended June 30,
		Consolidated								Same Store
		2002			2001			% Change		2002			2001			% Change
Number of hospitals			59*			53					53			53
Licensed beds			5,914			4,848					4,775			4,848
Beds in service			4,502			3,722					3,761			3,722
Admissions			50,771			39,677		28.0	%		41,509			39,677		4.6	%
Adjusted admissions			94,871			73,546		29.0	%		78,231			73,546		6.4	%
Patient days			195,922			150,251		30.4	%		153,245			150,251		2.0	%
Average length of stay (days)			3.9			3.8					3.7			3.8
Occupancy rate (beds in service)			47.9	%		45.5	%				46.0	%		45.5	%
Net operating revenues		$	530,582		$	400,909		32.3	%	$	432,870		$	400,807		8.0	%
Net inpatient revenue as a % of
	Total net operating revenues		51.7	%		49.6	%				50.7	%		49.6	%
Net outpatient revenue as a % of
	Total net operating revenues		47.0	%		49.2	%				48.3	%		49.2	%
EBITDA as a % of net
	operating revenues		16.5	%		18.4	%				18.6	%		18.4	%

		For the Six Months Ended June 30,
		Consolidated								Same Store
		2002			2001			% Change		2002			2001			% Change
Number of hospitals			59*			53					53			53
Licensed beds			5,914			4,848					4,775			4,848
Beds in service			4,502			3,722					3,761			3,722
Admissions			104,286			82,559		26.3	%		85,741			82,559		3.9	%
Adjusted admissions			191,171			149,741		27.7	%		157,753			149,741		5.4	%
Patient days			406,534			315,994		28.7	%		322,395			315,994		2.0	%
Average length of stay (days)			3.9			3.8					3.8			3.8
Occupancy rate (beds in service)			50.3	%		48.4	%				49.0	%		48.4	%
Net operating revenues		$	1,064,101		$	799,554		33.1	%	$	869,277		$	799,431		8.7	%
Net inpatient revenue as a % of
	Total net operating revenues		52.2	%		51.0	%				51.7	%		51.1	%
Net outpatient revenue as a % of
	Total net operating revenues		46.4	%		47.8	%				47.2	%		47.8	%
EBITDA as a % of net
	operating revenues		16.9	%		18.9	%				19.2	%		18.8	%

*

Does not include hospital acquired on June 30, 2002.

COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
($ in thousands)

			June 30, 2002			December 31, 2001
ASSETS
Current assets:
	Cash and cash equivalents		$	20,024		$	8,386
	Patient accounts receivable, net			375,842			360,852
	Other current assets			121,972			116,121
		Total current assets		517,838			485,359
Property and equipment				1,178,222			1,066,959
	Less accumulated depreciation and amortization			(240,587	)		(200,425	)
		Property and equipment, net		937,635			866,534
Goodwill, net				1,021,017			1,000,918
Other assets, net				101,777			98,653
		Total assets	$	2,578,267		$	2,451,464
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Current maturities of long-term debt		$	31,748		$	58,691
	Accounts payable and accrued liabilities			278,816			231,681
		Total current liabilities		310,564			290,372
Long-term debt				1,025,360			980,083
Other long-term liabilities				72,705			65,344
Stockholders' equity				1,169,638			1,115,665
		Total liabilities and stockholders' equity	$	2,578,267		$	2,451,464

QuickLinks

Exhibit Number 99.1

COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES STRONG SECOND QUARTER 2002 RESULTS WITH NET OPERATING REVENUES UP 32.3% AND EBITDA UP 18.5%
COMPLETED ACQUISITION IN JUNE OF 90-BED HOSPITAL
COMMUNITY HEALTH SYSTEMS, INC. Financial Highlights (Unaudited) (In thousands, except per share amounts)
COMMUNITY HEALTH SYSTEMS, INC. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts)
COMMUNITY HEALTH SYSTEMS, INC. Selected Operating Data (Unaudited) ($ in thousands)
COMMUNITY HEALTH SYSTEMS, INC. Condensed Consolidated Balance Sheets (Unaudited) ($ in thousands)