Community Health Systems (CYH) 8-K Community Health Systems, Inc. Announces Second Quarter 2009 Results with Net Operating Revenues of $3.0 Billion

Exhibit Number
99.1

Investor Contact: W. Larry Cash
Executive Vice President
and Chief Financial Officer
(615) 465-7000

COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES
SECOND QUARTER 2009 RESULTS WITH NET OPERATING REVENUES OF $3.0 BILLION

FRANKLIN, TENN. (July 30, 2009) — Community Health Systems, Inc. (NYSE: CYH) today announced financial and operating results for the second quarter and six months ended June 30, 2009.

     Net operating revenues for the three months ended June 30, 2009, totaled $3.017 billion, a 12.9 percent increase compared with $2.673 billion for the same period in 2008. Income from continuing operations increased to $74.5 million, or $0.66 per share (diluted), on 91.1 million weighted average shares outstanding for the three months ended June 30, 2009, compared with $55.4 million, or $0.50 per share (diluted), on 95.5 million weighted average shares outstanding for the same period in 2008. Net income increased 24.1 percent to $59.4 million, or $0.65 per share (diluted), for the three months ended June 30, 2009, compared with $47.9 million, or $0.50 per share (diluted), for the same period in 2008.

     Adjusted EBITDA for the three months ended June 30, 2009, was $415.6 million, compared with $362.5 million for the same period in 2008, representing a 14.7 percent increase. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations, gain/loss from early extinguishment of debt and net income attributable to noncontrolling interests. The Company uses adjusted EBITDA as a measure of liquidity. Net cash provided by operating activities for the three months ended June 30, 2009, was $285.0 million, compared with $361.7 million for the same period in 2008.

     The consolidated financial results for the three months ended June 30, 2009, reflect a 5.8 percent increase in total admissions compared with the three months ended June 30, 2008. This increase was due primarily to acquisitions during the past twelve months. On a same-store basis, admissions decreased 0.4 percent and adjusted admissions increased 1.7 percent, compared with the same period in 2008. On a same-store basis, net operating revenues increased 6.7 percent, compared with the same period in 2008.

     Net operating revenues for the six months ended June 30, 2009, totaled $5.930 billion, a 10.1 percent increase compared with $5.384 billion for the same period in 2008. Income from continuing operations increased to $145.3 million, or $1.29 per share (diluted), on 90.7 million weighted average shares outstanding for the six months ended June 30, 2009, compared with $112.6 million, or $1.02 per share (diluted), on 95.1 million weighted average shares outstanding for the same period in 2008. Net income was $118.4 million, or $1.31 per share (diluted), for the six months ended June 30, 2009, compared with $108.0 million, or $1.14 per share (diluted), for the same period in 2008.

     Adjusted EBITDA for the six months ended June 30, 2009, was $819.1 million, compared with $737.9 million for the same period in 2008, representing an 11.0 percent increase. Net cash provided by operating activities for the six months ended June 30, 2009, was $544.4 million, compared with $416.8 million for the same period of 2008.

     The consolidated financial results for the six months ended June 30, 2009, reflect a 1.7 percent increase in total admissions compared with the six months ended June 30, 2008. This increase was due primarily to acquisitions during the past twelve months. On a same-store basis, admissions decreased 2.7 percent and adjusted admissions decreased 0.4 percent, compared with the same period in 2008. On a same-store basis, net operating revenues increased 5.5 percent, compared with the same period in 2008.

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CYH Announces Second Quarter 2009 Results
Page 2
July 30, 2009

     On April 1, 2009, subsidiaries of the Company acquired the remaining 50 percent interest in the Medical Center of South Arkansas, located in El Dorado, Arkansas. Previously, the Company owned a noncontrolling interest in the hospital and did not consolidate its operations.

     On May 1, 2009, subsidiaries of the Company acquired the assets of Wyoming Valley Health Care System located in Wilkes-Barre, Pennsylvania. This system included Wilkes-Barre General Hospital, a 392-bed full-service acute care hospital, and First Hospital Wyoming Valley, a behavioral health facility located in Kingston, Pennsylvania, as well as other outpatient and ancillary services.

     Commenting on the results, Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc., said, “Community Health Systems continued to deliver a solid operating performance for the second quarter of 2009, in spite of the challenging economic environment. Our ability to drive revenues and demonstrate efficient expense management reflects consistent execution of our strategy. While the expected economic trends indicate that overall hospital industry volumes will remain under pressure for the remainder of 2009, we believe our proven operating model will favorably support our business through this uncertain environment. Our geographically diverse hospital portfolio also provides us with a competitive advantage with less exposure to more economically depressed markets.

     “We see considerable opportunities to realize additional operating synergies at our more recently acquired hospitals,” Smith added. “We have demonstrated our ability to deliver improved operating results through our efforts to implement best practices in all of our facilities across the country. We have a very conservative operating strategy and are mindful of the critical need to manage our costs. With our proven track record, we are highly focused on continued improvement from our facilities with the most opportunity for growth.”

     Included on pages 12, 13 and 14 of this press release are tables setting forth the Company’s updated 2009 guidance. This guidance reaffirms the Company’s previous annual earnings guidance provided on April 23, 2009, as modified to reflect certain changes as detailed in the guidance assumptions on pages 12, 13 and 14.

     Located in the Nashville, Tennessee, suburb of Franklin, Community Health Systems, Inc. is the largest publicly-traded hospital company in the United States and a leading operator of general acute care hospitals in non-urban and mid-size markets throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 122 hospitals in 29 states with an aggregate of approximately 18,000 licensed beds. Its hospitals offer a broad range of inpatient and surgical services, outpatient treatment and skilled nursing care. In addition, through its QHR subsidiary, the Company provides management and consulting services to over 150 independent non-affiliated general acute care hospitals located throughout the United States. 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 Friday, July 31, 2009, 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 by clicking on the Investor Relations link of the Company’s website at www.chs.net, or at www.earnings.com. To listen to the live call, please go to the website 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 will continue through August 31, 2009. A copy of the Company’s Form 8-K (including this press release) and conference call slide show is available on the Company’s website at www.chs.net.

     Statements contained in this news release regarding expected operating results, acquisition transactions or divestitures 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 annual report onForm 10-K, current reports on Form 8-K and quarterly reports onForm 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

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CYH Announces Second Quarter 2009 Results
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July 30, 2009

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Financial Highlights (a)(b)(c)(d)
($ in thousands, except per share amounts)
(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2009		2008		2009		2008
Net operating revenues	$	3,016,961	$	2,673,153	$	5,929,710	$	5,383,508
Adjusted EBITDA (e)	$	415,633	$	362,488	$	819,149	$	737,943
Income from continuing operations (f)(g)(h)	$	74,498	$	55,393	$	145,318	$	112,648
Net income attributable to Community Health Systems, Inc.	$	59,435	$	47,893	$	118,350	$	108,020
Income from continuing operations attributable to Community Health Systems, Inc. common stockholders per share:
Basic (a)	$	0.66	$	0.51	$	1.30	$	1.03
Diluted (a)	$	0.66	$	0.50	$	1.29	$	1.02
Net income attributable to Community Health Systems, Inc. common stockholders per share:
Basic	$	0.66	$	0.51	$	1.31	$	1.15
Diluted	$	0.65	$	0.50	$	1.31	$	1.14
Weighted-average number of shares outstanding:
Basic (i)		90,359		94,192		90,170		94,017
Diluted (i)		91,071		95,513		90,666		95,128
Net cash provided by operating activities	$	284,980	$	361,650	$	544,407	$	416,783

For footnotes, see pages 10 and 11.

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CYH Announces Second Quarter 2009 Results
Page 4
July 30, 2009

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (a)(b)(c)(d)
($ in thousands, except per share amounts)
(Unaudited)

	Three Months Ended
	June 30,
	2009						2008
				% of Net						% of Net
				Operating						Operating
	Amount			Revenue			Amount			Revenue
Net operating revenues	$	3,016,961			100.0	%	$	2,673,153			100.0	%
Operating costs and expenses:
Salaries and benefits		1,201,680			39.8	%		1,078,165			40.3	%
Provision for bad debts		362,462			12.0	%		285,593			10.7	%
Supplies		419,956			13.9	%		375,324			14.0	%
Other operating expenses		567,813			18.9	%		523,828			19.6	%
Rent		61,200			2.0	%		58,254			2.2	%
Depreciation and amortization		142,447			4.7	%		123,544			4.7	%
Total operating costs and expenses		2,755,558			91.3	%		2,444,708			91.5	%
Income from operations (h)		261,403			8.7	%		228,445			8.5	%
Interest expense, net		161,473			5.4	%		153,361			5.7	%
Loss from early extinguishment of debt		6			0.0	%		—			0.0	%
Equity in earnings of unconsolidated affiliates		(11,783	)		-0.4	%		(10,499	)		-0.4	%
Income from continuing operations before income taxes		111,707			3.7	%		85,583			3.2	%
Provision for income taxes		37,209			1.2	%		30,190			1.1	%
Income from continuing operations (h)		74,498			2.5	%		55,393			2.1	%
Discontinued operations, net of taxes (d):
Loss from operations of hospitals sold (g)		(508	)		0.0	%		(240	)		0.0	%
Loss on sale of hospitals, net		—			0.0	%		(9	)		0.0	%
Loss from discontinued operations		(508	)		0.0	%		(249	)		0.0	%
Net income		73,990			2.5	%		55,144			2.1	%
Less: Net income attributable to noncontrolling interests (a)		14,555			0.5	%		7,251			0.3	%
Net income attributable to Community Health Systems, Inc.	$	59,435			2.0	%	$	47,893			1.8	%
Income from continuing operations attributable to Community Health Systems, Inc. common stockholders per share (a):
Basic	$	0.66					$	0.51
Diluted	$	0.66					$	0.50
Discontinued operations attributable to Community Health Systems, Inc. common stockholders per share (a):
Basic		($0.01	)				$	0.00
Diluted		($0.01	)				$	0.00
Net income attributable to Community Health Systems, Inc. common stockholders per share (a)(j):
Basic	$	0.66					$	0.51
Diluted	$	0.65					$	0.50
Weighted-average number of shares outstanding (i):
Basic		90,359						94,192
Diluted		91,071						95,513

For footnotes, see pages 10 and 11.

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CYH Announces Second Quarter 2009 Results
Page 5
July 30, 2009

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (a)(b)(c)(d)
($ in thousands, except per share amounts)
(Unaudited)

	Six Months Ended
	June 30,
	2009						2008
				% of Net						% of Net
				Operating						Operating
	Amount			Revenue			Amount			Revenue
Net operating revenues	$	5,929,710			100.0	%	$	5,383,508			100.0	%
Operating costs and expenses:
Salaries and benefits		2,375,120			40.1	%		2,165,250			40.2	%
Provision for bad debts		700,230			11.8	%		577,666			10.7	%
Supplies		825,593			13.9	%		759,307			14.1	%
Other operating expenses		1,112,790			18.8	%		1,049,394			19.5	%
Rent		121,528			2.0	%		117,331			2.2	%
Depreciation and amortization		278,008			4.7	%		244,850			4.6	%
Total operating costs and expenses		5,413,269			91.3	%		4,913,798			91.3	%
Income from operations (h)		516,441			8.7	%		469,710			8.7	%
Interest expense, net		325,386			5.4	%		318,063			5.9	%
(Gain) loss from early extinguishment of debt (f)		(2,406	)		0.0	%		1,328			0.0	%
Equity in earnings of unconsolidated affiliates		(24,700	)		-0.4	%		(23,383	)		-0.4	%
Income from continuing operations before income taxes		218,161			3.7	%		173,702			3.2	%
Provision for income taxes		72,843			1.2	%		61,054			1.1	%
Income from continuing operations (h)(f)		145,318			2.5	%		112,648			2.1	%
Discontinued operations, net of taxes (d):
Income from operations of hospitals sold and hospitals held for sale (g)		1,977			0.0	%		1,624			0.0	%
(Loss) gain on sale of hospitals, net		(405	)		0.0	%		9,608			0.2	%
Income from discontinued operations		1,572			0.0	%		11,232			0.2	%
Net income		146,890			2.5	%		123,880			2.3	%
Less: Net income attributable to noncontrolling interests (a)		28,540			0.5	%		15,860			0.3	%
Net income attributable to Community Health Systems, Inc.	$	118,350			2.0	%	$	108,020			2.0	%
Income from continuing operations attributable to Community Health Systems, Inc. common stockholders per share (a):
Basic	$	1.30					$	1.03
Diluted	$	1.29					$	1.02
Discontinued operations attributable to Community Health Systems, Inc. common stockholders per share (a):
Basic	$	0.01					$	0.12
Diluted	$	0.01					$	0.12
Net income attributable to Community Health Systems, Inc. common stockholders per share (a)(j):
Basic	$	1.31					$	1.15
Diluted	$	1.31					$	1.14
Weighted-average number of shares outstanding (i):
Basic		90,170						94,017
Diluted		90,666						95,128

For footnotes, see pages 10 and 11.

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CYH Announces Second Quarter 2009 Results
Page 6
July 30, 2009

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (b)(c)
($ in thousands)
(Unaudited)

	For the Three Months Ended June 30,
	Consolidated									Same-Store
	2009			2008			% Change			2009			2008			% Change
Number of hospitals (at end of period)		122			117						117			117
Licensed beds (at end of period)		18,130			17,285						16,855			17,285
Beds in service (at end of period)		16,077			14,748						14,733			14,748
Admissions		173,494			164,008			5.8	%		163,273			164,008			-0.4	%
Adjusted admissions		321,383			298,301			7.7	%		303,489			298,300			1.7	%
Patient days		731,059			691,011			5.8	%		681,164			691,011			-1.4	%
Average length of stay (days)		4.2			4.2						4.2			4.2
Occupancy rate (average beds in service)		51.1	%		51.6	%					50.9	%		51.6	%
Net operating revenues	$	3,016,961		$	2,673,153			12.9	%	$	2,850,807		$	2,672,610			6.7	%
Net inpatient revenue as a % of total net operating revenues		49.4	%		49.5	%					48.9	%		49.6	%
Net outpatient revenue as a % of total net operating revenues		48.2	%		48.1	%					48.7	%		48.1	%
Income from operations (h)	$	261,403		$	228,445			14.4	%	$	263,341		$	227,216			15.9	%
Income from operations as a % of net operating revenues		8.7	%		8.5	%					9.2	%		8.5	%
Depreciation and amortization	$	142,447		$	123,544					$	136,387		$	123,544
Equity in earnings of unconsolidated affiliates	$	(11,783	)	$	(10,499	)				$	(11,783	)	$	(10,710	)
Liquidity Data:
Adjusted EBITDA (e)	$	415,633		$	362,488			14.7	%
Adjusted EBITDA as a % of net operating revenues		13.8	%		13.6	%
Net cash provided by operating activities	$	284,980		$	361,650
Net cash provided by operating activities as a % of net operating revenues		9.4	%		13.5	%

•	Continuing operating results and statistical data exclude discontinued operations for all periods presented.
For footnotes, see pages 10 and 11.

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CYH Announces Second Quarter 2009 Results
Page 7
July 30, 2009

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Selected Operating Data (b)(c)
($ in thousands)
(Unaudited)

	For the Six Months Ended June 30,
	Consolidated									Same-Store
	2009			2008			% Change			2009			2008			% Change
Number of hospitals (at end of period)		122			117						117			117
Licensed beds (at end of period)		18,130			17,285						16,855			17,285
Beds in service (at end of period)		16,077			14,748						14,733			14,748
Admissions		345,814			340,093			1.7	%		330,911			340,093			-2.7	%
Adjusted admissions		630,845			607,530			3.8	%		605,032			607,524			-0.4	%
Patient days		1,472,947			1,458,401			1.0	%		1,401,624			1,458,401			-3.9	%
Average length of stay (days)		4.3			4.3						4.2			4.3
Occupancy rate (average beds in service)		52.5	%		54.5	%					52.7	%		54.5	%
Net operating revenues	$	5,929,710		$	5,383,508			10.1	%	$	5,676,368		$	5,382,839			5.5	%
Net inpatient revenue as a % of total net operating revenues		50.1	%		50.5	%					49.7	%		50.5	%
Net outpatient revenue as a % of total net operating revenues		47.6	%		47.1	%					48.0	%		47.1	%
Income from operations (f)(h)	$	516,441		$	469,710			9.9	%	$	523,279		$	468,543			11.7	%
Income from operations as a % of net operating revenues		8.7	%		8.7	%					9.2	%		8.7	%
Depreciation and amortization	$	278,008		$	244,850					$	270,170		$	244,850
Equity in earnings of unconsolidated affiliates	$	(24,700	)	$	(23,383	)				$	(24,700	)	$	(23,594	)
Liquidity Data:
Adjusted EBITDA (e)	$	819,149		$	737,943			11.0	%
Adjusted EBITDA as a % of net operating revenues		13.8	%		13.7	%
Net cash provided by operating activities	$	544,407		$	416,783
Net cash provided by operating activities as a % of net operating revenues		9.2	%		7.7	%

•	Continuing operating results and statistical data exclude discontinued operations for all periods presented.
For footnotes, see pages 10 and 11.

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CYH Announces Second Quarter 2009 Results
Page 8
July 30, 2009

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (a)
(in thousands, except share data)
(Unaudited)

	June 30,			December 31,
	2009			2008
ASSETS
Current assets
Cash and cash equivalents	$	268,825		$	220,655
Patient accounts receivable, net of allowance for doubtful accounts of $1,274,698 and $1,111,131 at June 30, 2009, and December 31, 2008, respectively		1,657,923			1,625,470
Supplies		286,594			275,696
Prepaid income taxes		—			92,710
Deferred income taxes		91,875			91,875
Prepaid expenses and taxes		94,598			73,792
Other current assets		199,616			224,852
Total current assets		2,599,431			2,605,050
Property and equipment		7,505,415			7,110,357
Less accumulated depreciation and amortization		(1,429,270	)		(1,215,952	)
Property and equipment, net		6,076,145			5,894,405
Goodwill		4,187,968			4,166,091
Other assets, net		1,008,478			1,152,708
Total assets	$	13,872,022		$	13,818,254
LIABILITIES
Current liabilities
Current maturities of long-term debt	$	56,734		$	33,904
Accounts payable		505,966			532,595
Current income taxes payable		25,920			—
Deferred income taxes		6,740			6,740
Accrued interest		143,581			153,234
Accrued liabilities		721,313			782,944
Total current liabilities		1,460,254			1,509,417
Long-term debt		8,883,810			8,938,185
Deferred income taxes		461,098			460,793
Other long-term liabilities		825,473			888,557
Total liabilities		11,630,635			11,796,952
Redeemable noncontrolling interests in equity of consolidated subsidiaries (a)		323,994			320,171
EQUITY
Community Health Systems, Inc. stockholders’ equity
Preferred stock, $.01 par value per share, 100,000,000 shares authorized; none issued		—			—
Common stock, $.01 par value per share, 300,000,000 shares authorized; 93,702,225 shares issued and 92,726,676 shares outstanding at June 30, 2009, and 92,483,166 shares issued and 91,507,617 shares outstanding at December 31, 2008		937			925
Additional paid-in capital		1,168,125			1,151,119
Treasury stock, at cost, 975,549 shares at June 30, 2009 and December 31, 2008		(6,678	)		(6,678	)
Accumulated other comprehensive loss		(220,565	)		(295,575	)
Retained earnings		894,599			776,249
Total Community Health Systems, Inc. stockholders’ equity		1,836,418			1,626,040
Noncontrolling interests in equity of consolidated subsidiaries (a)		80,975			75,091
Total equity		1,917,393			1,701,131
Total liabilities and equity	$	13,872,022		$	13,818,254

For footnotes, see pages 10 and 11.

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CYH Announces Second Quarter 2009 Results
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July 30, 2009

COMMUNITY HEALTH SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

	Six Months Ended
	June 30,
	2009			2008
Cash flows from operating activities
Net income attributable to Community Health Systems, Inc.	$	118,350		$	108,020
Plus: Net income attributable to noncontrolling interests		28,540			15,860
Net income		146,890			123,880
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		278,340			244,850
Stock-based compensation expense		24,805			26,681
Loss (gain) on sale of hospitals and partnership interest, net		405			(13,211	)
Excess tax benefits relating to stock-based compensation		3,389			947
(Gain) loss on early extinguishment of debt		(2,406	)		1,328
Other non-cash expenses, net		(6,472	)		2,041
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Patient accounts receivable		8,937			(74,786	)
Supplies, prepaid expenses and other current assets		5,198			13,570
Accounts payable, accrued liabilities and income taxes		72,042			83,869
Other		13,279			7,614
Net cash provided by operating activities		544,407			416,783
Cash flows from investing activities
Acquisitions of facilities and other related equipment		(210,904	)		(6,646	)
Purchases of property and equipment		(267,275	)		(275,605	)
Proceeds from disposition of hospitals and other ancillary operations		89,909			365,913
Proceeds from sale of property and equipment		355			12,889
Increase in other non-operating assets		(74,506	)		(144,380	)
Net cash used in investing activities		(462,421	)		(47,829	)
Cash flows from financing activities
Proceeds from exercise of stock options		3,445			1,357
Excess tax benefits relating to stock-based compensation		(3,389	)		(947	)
Deferred financing costs		(207	)		(2,444	)
Stock buy-back		—			(10,194	)
Proceeds from noncontrolling investors in joint ventures		26,314			11,214
Redemption of noncontrolling investments in joint ventures		(1,631	)		(53,485	)
Distributions to noncontrolling investors in joint ventures		(22,166	)		(14,916	)
Borrowings under credit agreement		200,000			22,657
Repayments of long-term indebtedness		(236,182	)		(190,998	)
Net cash used in financing activities		(33,816	)		(237,756	)
Net change in cash and cash equivalents		48,170			131,198
Cash and cash equivalents at beginning of period		220,655			132,874
Cash and cash equivalents at end of period	$	268,825		$	264,072

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CYH Announces Second Quarter 2009 Results
Page 10
July 30, 2009

Footnotes to Financial Statements

(a) On January 1, 2009, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 160, “Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51”, the provisions of which, among other things, requires that minority interests be renamed noncontrolling interests and that a company present a consolidated net income measure that includes the amounts attributable to both the controlling and noncontrolling interests for all periods presented. The following table provides information needed to recalculate income per share adjusted for noncontrolling interests.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009		2008
Income from continuing operations attributable to Community Health Systems, Inc. common stockholders:
Income from continuing operations, net of tax	$	74,498		$	55,393		$	145,318	$	112,648
Less: Income from continuing operations attributable to noncontrolling interests, net of taxes		14,555			7,447			28,185		15,602
Income from continuing operations attributable to Community Health Systems, Inc. common stockholders — basic and diluted	$	59,943		$	47,946		$	117,133	$	97,046
(Loss) income from discontinued operations attributable to Community Health Systems, Inc. common stockholders:
(Loss) income from discontinued operations, net of tax	$	(508	)	$	(249	)	$	1,572	$	11,232
Less: Income (loss) from discontinued operations attributable to noncontrolling interests, net of taxes		—			(196	)		355		258
(Loss) income from discontinued operations attributable to Community Health Systems, Inc. common stockholders — basic and diluted	$	(508	)	$	(53	)	$	1,217	$	10,974

For the balance sheet presentation, SFAS No. 160 requires that minority interests be renamed noncontrolling interests and that a company present such noncontrolling interests as a component of equity for all periods presented, except for the redeemable noncontrolling interests, which are presented as a component of mezzanine equity.

(b)	Continuing operating results exclude discontinued operations for all periods presented.
(c)	On March 31, 2009, the Company completed the settlement of all pending litigation that resulted in the conveyance by two of the Company’s indirect subsidiaries of their 80% partnership interest in the partnership that owns Presbyterian Hospital of Denton located in Denton, Texas, to the minority partner of that partnership for approximately $100 million. For 2008, the Denton, Texas, hospital had net operating revenues of approximately $150 million with an EBITDA margin in the double digits. This hospital is included in discontinued operations for all periods presented.
(d)	During the second quarter 2009, the Company made the decision to retain a hospital and related businesses previously classified as being held for sale. Results of operations, assets and liabilities and cash flows for this retained hospital and related businesses are reported as continuing operations for all periods presented.
(e)	EBITDA consists of net income attributable to Community Health Systems, Inc. before interest, income taxes, and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations, gain/loss from early extinguishment of debt and net income attributable to noncontrolling interests. The Company has from time to time sold noncontrolling interests in certain of its subsidiaries or acquired subsidiaries with existing noncontrolling interest ownership positions. The Company believes that it is useful to present adjusted EBITDA because it excludes the portion of EBITDA attributable to these third party interests and clarifies for investors the Company’s portion of EBITDA generated by continuing operations. The Company uses adjusted EBITDA as a measure of liquidity. The Company has included this measure because it believes it provides investors with additional information about the Company’s ability to incur and service debt and make capital expenditures. Adjusted EBITDA is the basis for a key component in the determination of the Company’s compliance with some of the covenants under the Company’s senior secured credit facility, as well as to determine the interest rate and commitment fee payable under the senior secured credit facility.

Adjusted EBITDA is not a measurement of financial performance or liquidity under U.S. generally accepted accounting principles. It should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating, investing or financing activities, or any other measure calculated in accordance with U.S. generally accepted accounting principles. The items excluded from adjusted EBITDA are significant components in understanding and evaluating financial performance and liquidity. This calculation of adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Footnotes continued on the next page.

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CYH Announces Second Quarter 2009 Results
Page 11
July 30, 2009

The following table reconciles adjusted EBITDA, as defined, to net cash provided by operating activities as derived directly from the condensed consolidated financial statements for the three months and six months ended June 30, 2009 and 2008 (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2009			2008			2009			2008
Adjusted EBITDA	$	415,633		$	362,488		$	819,149		$	737,943
Interest expense, net		(161,473	)		(153,361	)		(325,386	)		(318,063	)
Provision for income taxes		(37,209	)		(30,190	)		(72,843	)		(61,054	)
Income from operations of hospitals sold and hospitals held for sale, net of taxes		(508	)		(240	)		1,977			1,624
Other non-cash expenses, net		13,923			12,527			22,054			26,066
Net changes in operating assets and liabilities, net of effects of acquisitions		54,614			170,426			99,456			30,267
Net cash provided by operating activities	$	284,980		$	361,650		$	544,407		$	416,783

(f) Included in income from continuing operations for the six months ended June 30, 2009, is a gain from early extinguishment of debt of $2.4 million with an after-tax impact of $1.5 million related to the repurchases on the open market and cancellation of $121.5 million of Senior Notes and the early payment of $110.4 million of term loans under the Company’s Credit Facility. Included in income from continuing operations for the six months ended June 30, 2008, is a loss from early extinguishment of debt of $1.3 million with an after-tax impact of $0.9 million related to the repurchases on the open market and cancellation of $62.7 million of Senior Notes and a pre-tax gain of $5.7 million with an after-tax impact of $3.5 million from the sale of some excess land previously held by the Company.

(g) Included in discontinued operations are the following:

• Presbyterian Hospital of Denton (255 licensed beds) located in Denton, Texas, which was conveyed to the noncontrolling partner on March 31, 2009; and,

• Russell County Medical Center (78 licensed beds) located in Lebanon, Virginia, nine hospitals with an aggregate total of 1,058 licensed beds located in Alabama, Arkansas, Missouri, Oregon and Tennessee, and one hospital located in the Republic of Ireland (122 licensed beds), all of which were sold during the first quarter of 2008.

(h) Included in income from operations and income from continuing operations for the three months and six months ended June 30, 2009, are the following non-same-store charges, respectively:

• A pre-tax charge of $2.0 million and $3.0 million, respectively, related to acquisition costs required to be expensed pursuant to revised business combination accounting rules that became effective January 1, 2009; and

• A pre-tax charge of $2.8 million and $5.0 million, respectively, for system conversion costs related to conversion of Triad’s former IT systems to the Company’s IT system.

(i) The following table sets forth components reconciling the basic weighted-average number of shares to the diluted weighted-average number of shares:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2009		2008		2009		2008
Weighted-average number of shares
outstanding — basic		90,359		94,192		90,170		94,017
Add effect of dilutive securities:
Stock awards and options		712		1,321		496		1,111
Weighted-average number of shares
outstanding — diluted		91,071		95,513		90,666		95,128

(j) Total per share amounts may not add due to rounding.

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CYH Announces Second Quarter 2009 Results
Page 12
July 30, 2009

Regulation FD Disclosure

     The following table sets forth selected information concerning the Company’s updated projected consolidated operating results for the year ending December 31, 2009. These projections are based on the Company’s historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time. This guidance reaffirms the Company’s previous annual earnings guidance provided on April 23, 2009, as modified to reflect certain changes as detailed in the guidance assumptions below. See page 14 for a list of factors that could affect the future results of the Company or the healthcare industry generally.

     The following is provided as guidance to analysts and investors:

	Updated 2009
	Projection
	Range
Net operating revenues (in millions)	$	11,800		to		$	12,000
Adjusted EBITDA (in millions)	$	1,635		to		$	1,665
Income from continuing operations per share — diluted	$	2.50		to		$	2.65
Same hospitals annual admissions/adjusted admissions growth		-1.0	%	to			1.0	%
Weighted-average diluted shares (in millions)		91.0		to			93.0
Acquisitions of new hospitals					2
Income from continuing operations per share — diluted 3rd quarter ending September 30, 2009	$	0.58		to		$	0.64

The following assumptions were used in developing the guidance provided above:

• The two acquisitions projected for 2009 have been completed.

• Continuing operations include the hospital previously classified as being held for sale.

• Projected 2009 same hospital annual admissions/adjusted admissions growth does not consider unanticipated service closures and other unusual events.

• The Company’s guidance does not take into account any resolution of the New Mexico qui tam case (U.S. ex rel. Baker vs. Community Health Systems, Inc.) in which it is alleged that the Company and three of the Company’s New Mexico hospitals have caused the State of New Mexico to submit improper claims for federal funds in violation of the Federal False Claims Act. The Company is vigorously defending this litigation.

• Expressed as a percentage of net operating revenues, the provision for bad debts is projected to be approximately 11.8% to 12.5% for 2009. These percentages may vary depending on changes in payor mix.

• Expressed as a percentage of net operating revenues, depreciation and amortization is projected to be approximately 4.6% to 4.8% for 2009; however, this is a fixed cost and the percentages may vary as revenue varies.

• 2009 projection assumes an estimate of $0.04 to $0.05 per share (diluted) of acquisition costs will be expensed pursuant to revised business combination accounting rules that became effective January 1, 2009.

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CYH Announces Second Quarter 2009 Results
Page 13
July 30, 2009

• For the purpose of providing interest expense guidance, the Company assumes that the borrowing rate under the Company’s $7.215 billion Senior Secured Credit Facility for 2009 will remain relatively stable with the rates existing at year end 2008, particularly since the Company is a party to interest rate swap agreements in an amount equal to approximately 85% of our outstanding debt which limits the effect of changes in interest rates. Based on these assumptions, expressed as a percentage of net operating revenues, interest expense is projected to be approximately 5.4% to 5.6% for 2009; however, these percentages will vary as revenue and interest rates vary.

• Expressed as a percentage of net operating revenues, net income attributable to noncontrolling interests is projected to be approximately 0.4% to 0.6% for 2009.

• On December 13, 2006, the Company announced a new open market repurchase program for up to five million shares of the Company’s common stock not to exceed $200 million in purchases. This repurchase program will conclude at the earlier of three years or when the maximum number of shares has been repurchased or the maximum dollar amount has been reached. Through July 30, 2009, 4.8 million shares have been purchased under this repurchase plan. No additional share purchases have been assumed for 2009. From January 1, 2009 through July 30, 2009, the Company repurchased on the open market and cancelled $126.5 million of principal amount of its Senior Notes and paid off and retired $110.4 million of principal amount of its Term Loans under the Company’s Credit Facility. It is currently assumed that approximately $25 million of principal amount of additional Senior Note repurchases will be completed during the remainder of 2009.

• Expressed as a percentage of income from continuing operations before income taxes, provision for income tax is projected to be approximately 31.5% to 33.5% for 2009. The adoption of SFAS No. 160 and the related presentation of noncontrolling interests outside of income from continuing operations caused the effective tax rate to be lower than previously projected. The income tax projection includes possible additional unrecognized tax benefits and tax revaluations that may be recognized prior to the end of 2009.

• Capital expenditures are projected as follows (in millions):

	2009
	Guidance
Total	$	600	to	$	650

• Net cash provided by operating activities are projected as follows (in millions):

	2009
	Guidance
Total	$	950	to	$	1,000

• Included in the above guidance are estimated 2.5% to 3.0% increases in Medicare inpatient reimbursement effective October 1, 2008, and Medicare outpatient reimbursement effective January 1, 2009. Moreover, the guidance reflects 0% to 1% increase in Medicare inpatient reimbursement at October 1, 2009. This guidance reflects no new significant changes in Medicaid reimbursements for 2009 and does not reflect any state Medicaid legislation that has not been enacted or is not known to date. This guidance does not reflect any state discount programs not implemented to date. The 2009 guidance does include a reduction in net operating revenues of 0.10% of calendar year 2009 net operating revenues for the estimated impact of the implementation of an outpatient prospective payment system under the TRICARE/CHAMPUS program, which became effective on May 1, 2009.

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CYH Announces Second Quarter 2009 Results
Page 14
July 30, 2009

     The projections set forth in this report constitute forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. Although the Company believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant economic and competitive uncertainties and contingencies, which are difficult or impossible to predict accurately and are beyond the control of the Company. Accordingly, the Company cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. A number of factors could affect the future results of the Company or the healthcare industry generally and could cause the Company’s expected results to differ materially from those expressed in this filing.

These factors include, among other things:

• general economic and business conditions, both nationally and in the regions in which we operate;

• legislative proposals for healthcare reform and universal access to healthcare coverage;

• risks associated with our substantial indebtedness, leverage, and debt service obligations;

• demographic changes;

• changes in, or the failure to comply with, governmental regulations;

• potential adverse impact of known and unknown government investigations and Federal and State False Claims Act litigation;

• our ability, where appropriate, to enter into and maintain managed care provider arrangements and the terms of these arrangements;

• changes in, or the failure to comply with, managed care contracts could result in disputes and changes in reimbursement that could be applied retroactively;

• changes in inpatient or outpatient Medicare and Medicaid payment levels;

• increases in the amount and risk of collectability of patient accounts receivable;

• increases in wages as a result of inflation or competition for highly technical positions and rising supply costs due to market pressure from pharmaceutical companies and new product releases;

• liabilities and other claims asserted against us, including self-insured malpractice claims;

• competition;

• our ability to attract and retain, without significant employment costs, qualified personnel, key management, physicians, nurses and other health care workers;

• trends toward treatment of patients in less acute or specialty healthcare settings, including ambulatory surgery centers or specialty hospitals;

• changes in medical or other technology;

• changes in U.S. generally accepted accounting principles;

• the availability and terms of capital to fund additional acquisitions or replacement facilities;

• our ability to successfully acquire additional hospitals and complete the sale of hospitals held for sale;

• our ability to successfully integrate any acquired hospitals or to recognize expected synergies from such acquisitions;

• our ability to obtain adequate levels of general and professional liability insurance;

• timeliness of reimbursement payments received under government programs; and

• the other risk factors set forth in our public filings with the Securities and Exchange Commission.

     The consolidated operating results for the quarter and six months ended June 30, 2009, are not necessarily indicative of the results that may be experienced for any such future period or for any future year, including 2009.

     The Company cautions that the projections for calendar year 2009 set forth in this press release are given as of the date hereof based on currently available information. The Company is not undertaking any obligation to update these projections as conditions change or other information becomes available.

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