Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-15925 | |
Entity Registrant Name | COMMUNITY HEALTH SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3893191 | |
Entity Address, Address Line One | 4000 Meridian Boulevard | |
Entity Address, City or Town | Franklin | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37067 | |
City Area Code | 615 | |
Local Phone Number | 465-7000 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | CYH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 138,943,526 | |
Entity Central Index Key | 0001108109 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Net operating revenues | $ 3,140 | $ 3,115 | $ 6,279 | $ 6,223 |
Operating costs and expenses: | ||||
Salaries and benefits | 1,329 | 1,338 | 2,696 | 2,703 |
Supplies | 483 | 504 | 969 | 1,011 |
Other operating expenses | 882 | 836 | 1,727 | 1,671 |
Lease cost and rent | 73 | 80 | 151 | 161 |
Depreciation and amortization | 125 | 124 | 241 | 255 |
Impairment and (gain) loss on sale of businesses, net | 10 | (13) | 27 | (35) |
Total operating costs and expenses | 2,902 | 2,869 | 5,811 | 5,766 |
Income from operations | 238 | 246 | 468 | 457 |
Interest expense, net | 216 | 207 | 426 | 414 |
Gain from early extinguishment of debt | (26) | (26) | ||
Equity in earnings of unconsolidated affiliates | (2) | (1) | (4) | (4) |
Income before income taxes | 50 | 40 | 72 | 47 |
Provision for income taxes | 24 | 38 | 52 | 65 |
Net income (loss) | 26 | 2 | 20 | (18) |
Less: Net income attributable to noncontrolling interests | 39 | 40 | 75 | 71 |
Net loss attributable to Community Health Systems, Inc. stockholders | $ (13) | $ (38) | $ (55) | $ (89) |
Loss per share attributable to Community Health Systems, Inc. stockholders: | ||||
Basic | $ (0.1) | $ (0.29) | $ (0.42) | $ (0.68) |
Diluted | $ (0.1) | $ (0.29) | $ (0.42) | $ (0.68) |
Weighted-average number of shares outstanding: | ||||
Basic | 132,344,504 | 130,659,672 | 131,808,274 | 130,176,976 |
Diluted | 132,344,504 | 130,659,672 | 131,808,274 | 130,176,976 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 26 | $ 2 | $ 20 | $ (18) |
Other comprehensive income (loss), net of income taxes: | ||||
Net change in fair value of available-for-sale debt securities, net of tax | 3 | (1) | 2 | 2 |
Other comprehensive income (loss) | 3 | (1) | 2 | 2 |
Comprehensive income (loss) | 29 | 1 | 22 | (16) |
Less: Comprehensive income attributable to noncontrolling interests | 39 | 40 | 75 | 71 |
Comprehensive loss attributable to Community Health Systems, Inc. stockholders | $ (10) | $ (39) | $ (53) | $ (87) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 39 | $ 38 |
Patient accounts receivable | 2,195 | 2,231 |
Supplies | 337 | 328 |
Prepaid income taxes | 92 | 76 |
Prepaid expenses and taxes | 244 | 260 |
Other current assets | 292 | 275 |
Total current assets | 3,199 | 3,208 |
Property and equipment | 9,594 | 9,511 |
Less accumulated depreciation and amortization | (4,372) | (4,304) |
Property and equipment, net | 5,222 | 5,207 |
Goodwill | 3,972 | 3,958 |
Deferred income taxes | 29 | 29 |
Other assets, net | 1,989 | 2,053 |
Total assets | 14,411 | 14,455 |
Current liabilities: | ||
Current maturities of long-term debt | 27 | 21 |
Current operating lease liabilities | 114 | 124 |
Accounts payable | 896 | 912 |
Accrued liabilities: | ||
Employee compensation | 499 | 571 |
Accrued interest | 258 | 160 |
Other | 378 | 354 |
Total current liabilities | 2,172 | 2,142 |
Long-term debt | 11,504 | 11,466 |
Deferred income taxes | 351 | 369 |
Long-term operating lease liabilities | 542 | 563 |
Other long-term liabilities | 721 | 739 |
Total liabilities | 15,290 | 15,279 |
Redeemable noncontrolling interests in equity of consolidated subsidiaries | 324 | 323 |
Community Health Systems, Inc. stockholders’ deficit: | ||
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; 138,960,194 shares issued and outstanding at June 30, 2024, and 136,774,911 shares issued and outstanding at December 31, 2023 | 1 | 1 |
Additional paid-in capital | 2,190 | 2,185 |
Accumulated other comprehensive loss | (13) | (14) |
Accumulated deficit | (3,619) | (3,564) |
Total Community Health Systems, Inc. stockholders’ deficit | (1,441) | (1,392) |
Noncontrolling interests in equity of consolidated subsidiaries | 238 | 245 |
Total stockholders’ deficit | (1,203) | (1,147) |
Total liabilities and stockholders’ deficit | $ 14,411 | $ 14,455 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 138,960,194 | 136,774,911 |
Common stock, shares outstanding | 138,960,194 | 136,774,911 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 26 | $ 20 | $ (18) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 125 | 241 | 255 |
Deferred income taxes | (17) | 29 | |
Stock-based compensation expense | 2 | 8 | 10 |
Impairment and (gain) loss on sale of businesses, net | 10 | 27 | (35) |
Gain from early extinguishment of debt | (26) | (26) | |
Other non-cash expenses, net | 94 | 88 | |
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||
Patient accounts receivable | 39 | (2) | |
Supplies, prepaid expenses and other current assets | (23) | (73) | |
Accounts payable, accrued liabilities and income taxes | (88) | (130) | |
Other | (78) | (33) | |
Net cash provided by operating activities | 197 | 91 | |
Cash flows from investing activities: | |||
Acquisitions of facilities and other related businesses | (1) | (15) | |
Purchases of property and equipment | (181) | (227) | |
Proceeds from disposition of hospitals and other ancillary operations | 111 | ||
Proceeds from sale of property and equipment | 4 | 24 | |
Purchases of available-for-sale debt securities and equity securities | (23) | (99) | |
Proceeds from sales of available-for-sale debt securities and equity securities | 32 | 137 | |
Purchases of investments in unconsolidated affiliates | (4) | (7) | |
Increase in other investments | (34) | (29) | |
Net cash used in investing activities | (207) | (105) | |
Cash flows from financing activities: | |||
Repurchase of restricted stock shares for payroll tax withholding requirements | (2) | (4) | |
Deferred financing costs and other debt-related costs | (9) | ||
Proceeds from noncontrolling investors in joint ventures | 1 | 3 | |
Redemption of noncontrolling investments in joint ventures | (2) | (1) | |
Distributions to noncontrolling investors in joint ventures | (84) | (83) | |
Other borrowings | 18 | 29 | |
Issuance of long-term debt | 1,296 | ||
Proceeds from ABL Facility | 1,906 | 1,527 | |
Repayments of long-term indebtedness | (3,113) | (1,457) | |
Net cash provided by financing activities | 11 | 14 | |
Net change in cash and cash equivalents | 1 | ||
Cash and cash equivalents at beginning of period | 38 | 118 | |
Cash and cash equivalents at end of period | 39 | 39 | 118 |
Supplemental disclosure of cash flow information: | |||
Interest payments | (211) | (360) | (385) |
Income tax payments, net | $ (84) | $ (84) | $ (37) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (13) | $ (38) | $ (55) | $ (89) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The unaudited condensed consolidated financial statements of Community Health Systems, Inc. (the “Parent Company”) and its subsidiaries (the “Company”) as of June 30, 2024 and December 31, 2023 and for the three-month and six-month periods ended June 30, 2024 and 2023, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for such periods. All intercompany transactions and balances have been eliminated. The results of operations for the three and six months ended June 30, 2024, are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2024. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates under different assumptions or conditions. Certain information and disclosures normally included in the notes to the consolidated financial statements have been condensed or omitted as permitted by the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company believes the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2023 , contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 21, 2024 (“2023 Form 10-K”). Noncontrolling interests in less-than-wholly-owned consolidated subsidiaries of the Parent Company are presented as a component of total equity in the condensed consolidated balance sheets to distinguish between the interests of the Parent Company and the interests of the noncontrolling owners. Noncontrolling interests that are redeemable or may become redeemable at a fixed or determinable price at the option of the holder or upon the occurrence of an event outside of the control of the Company are presented in mezzanine equity in the condensed consolidated balance sheets. Substantially all of the Company’s operating costs and expenses are “cost of revenue” items. Operating costs that could be classified as general and administrative by the Company include the Company’s corporate office costs at its Franklin, Tennessee office, which were $ 75 million and $ 65 million for the three months ended June 30, 2024 and 2023 , respectively, and $ 156 million and $ 126 million during the six months ended June 30, 2024 and 2023, respectively. The increase in corporate office costs during the three and six months ended June 30, 2024 compared to the same periods in 2023 is primarily due to the impact of certain non-recurring adjustments. Throughout these notes to the unaudited condensed consolidated financial statements, Community Health Systems, Inc., and its consolidated subsidiaries are referred to on a collective basis as the “Company.” This drafting style is not meant to indicate that the publicly-traded Parent Company or any particular subsidiary of the Parent Company owns or operates any asset, business, or property. The hospitals, operations and businesses described in this filing are owned and operated, and management services provided, by distinct and indirect subsidiaries of Community Health Systems, Inc. Revenue Recognition. Net Operating Revenues Net operating revenues are recorded at the transaction price estimated by the Company to reflect the total consideration due from patients and third-party payors in exchange for providing goods and services in patient care. These services are considered to be a single performance obligation and have a duration of less than one year. Revenues are recorded as these goods and services are provided. The transaction price, which involves significant estimates, is determined based on the Company’s standard charges for the goods and services provided, with a reduction recorded for price concessions related to third party contractual arrangements as well as patient discounts and other patient price concessions. During each of the three and six-month periods ended June 30, 2024 and 2023, the impact of changes to the inputs used to determine the transaction price was considered immaterial. Currently, several states utilize supplemental reimbursement programs for the purpose of providing reimbursement to providers that is not specifically tied to an individual’s care, some of which offsets a portion of the cost of providing care to Medicaid and indigent patients. The programs are funded with a combination of state and federal resources, including, in certain instances, fees or taxes levied on the providers. The programs are generally authorized by the Centers for Medicare & Medicaid Services (“CMS”) for a specified period of time and require CMS’s approval to be extended. Under these supplemental programs, the Company recognizes revenue and related expenses in the period in which amounts are estimable and payment is reasonably assured. Reimbursement under these programs is reflected in net operating revenues. Taxes or other program-related costs are reflected in other operating expenses. The Company’s net operating revenues for the three and six months ended June 30, 2024 and 2023 have been presented in the following table based on an allocation of the estimated transaction price with the patient between the primary patient classification of insurance coverage (in millions): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Medicare $ 563 $ 628 $ 1,159 $ 1,276 Medicare Managed Care 560 522 1,139 1,065 Medicaid 465 449 906 872 Managed Care and other third-party payors 1,501 1,492 2,980 2,962 Self-pay 51 24 95 48 Total $ 3,140 $ 3,115 $ 6,279 $ 6,223 Patient Accounts Receivable Patient accounts receivable are recorded at net realizable value based on certain assumptions determined by each payor. For third-party payors including Medicare, Medicare Managed Care, Medicaid and Managed Care, the net realizable value is based on the estimated contractual reimbursement percentage, which is based on current contract prices or historical paid claims data by payor. For self-pay accounts receivable, which includes patients who are uninsured and the patient responsibility portion for patients with insurance, the net realizable value is determined using estimates of historical collection experience without regard to aging category. These estimates are adjusted for estimated conversions of patient responsibility portions, expected recoveries and any anticipated changes in trends. Patient accounts receivable can be impacted by the effectiveness of the Company’s collection efforts. Additionally, significant changes in payor mix, business office operations, economic conditions or trends in federal and state governmental healthcare coverage could affect the net realizable value of accounts receivable. The Company also continually reviews the net realizable value of accounts receivable by monitoring historical cash collections as a percentage of trailing net operating revenues, as well as by analyzing current period net operating revenues and admissions by payor classification, days revenue outstanding, the composition of self-pay receivables between pure self-pay patients and the patient responsibility portion of third-party insured receivables, the impact of recent acquisitions and dispositions and the impact of current macroeconomic conditions and other events. Final settlements for some payors and programs are subject to adjustment based on administrative review and audit by third parties. As a result of these final settlements, the Company has recorded amounts due to third-party payors of $ 92 million and $ 97 million as of June 30, 2024 and December 31, 2023 , respectively, and these amounts are included in accrued liabilities-other in the accompanying condensed consolidated balance sheets. Amounts due from third-party payors were $ 109 million and $ 130 million as of June 30, 2024 and December 31, 2023 , respectively, and are included in other current assets in the accompanying condensed consolidated balance sheets. Substantially all Medicare and Medicaid cost reports are final settled through 2019. Charity Care In the ordinary course of business, the Company renders services to patients who are financially unable to pay for hospital care. The Company’s policy is to not pursue collections for such amounts; therefore, the related charges for those patients who are financially unable to pay and that otherwise do not qualify for reimbursement from a governmental program are not reported in net operating revenues, and are thus classified as charity care. The Company determines amounts that qualify for charity care based on the patient’s household income relative to the federal poverty level guidelines, as established by the federal government. These charity care services are estimated to be $ 287 million and $ 320 million for the three months ended June 30, 2024 and 2023, respectively, and $ 603 million and $ 646 million for the six months ended June 30, 2024 and 2023, respectively, representing the value (at the Company’s standard charges) of these charity care services that are excluded from net operating revenues. The estimated cost incurred by the Company to provide these charity care services to patients who are unable to pay was approximately $ 29 million and $ 34 million for the three months ended June 30, 2024 and 2023 , respectively, and $ 59 million and $ 72 million for the six months ended June 30, 2024 and 2023 , respectively. The estimated cost of these charity care services was determined using a ratio of cost to gross charges and applying that ratio to the gross charges associated with providing care to charity patients for the period. Accounting for the Impairment or Disposal of Long-Lived Assets. During the six months ended June 30, 2024 , the Company recorded an impairment charge of approximately $ 27 million primarily to reduce the carrying value of several assets that were idled, disposed of or held-for-sale. During the six months ended June 30, 2023, the Company recorded a net gain of approximately $ 35 million, comprised of a gain of $ 62 million related to the sale of two hospitals, offset by (i) an approximate $ 22 million impairment charge recorded to reduce the carrying value of a hospital that was deemed held-for-sale based on the difference between carrying value of the hospital disposal group compared to the estimated fair value less costs to sell, and (ii) an approximate $ 5 million impairment charge recorded to reduce the carrying value of several assets that were idled, disposed of or held-for-sale. During the six months ended June 30, 2023, approximately $ 130 million of goodwill was allocated from the hospital operations reporting unit based on a calculation of each disposal group’s relative fair value compared to the total reporting unit. The Company will continue to evaluate the potential for impairment of the long-lived assets of hospitals and other held-and-used businesses as well as evaluate offers for potential sales, as applicable. Based on such analysis, additional impairment charges may be recorded in the future. New Accounting Pronouncements . In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures.” This ASU includes additional requirements for the disclosure of significant segment expenses and segment measure(s) of profit or loss, as well as new disclosure requirements for entities with a single reportable segment and certain qualitative information about the chief operating decision maker. This ASU is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The amendments in this ASU must be applied retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this ASU will have on its condensed consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures.” This ASU establishes new requirements for the categorization and disaggregation of information in the rate reconciliation as well as for disaggregation of income taxes paid. Additionally, this ASU modifies and eliminates certain existing requirements for indefinitely reinvested foreign earnings and unrecognized tax benefits. This ASU is effective for annual periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025. The amendments in this ASU should be applied on a prospective basis and early adoption is permitted. The Company is currently evaluating the impact that adoption of this ASU will have on its condensed consolidated financial statements. The Company has evaluated all other recently issued, but not yet effective, ASUs and does not expect the eventual adoption of such ASUs to have a material impact on its consolidated financial position or results of operations. |
Accounting for Stock-Based Comp
Accounting for Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
ACCOUNTING FOR STOCK-BASED COMPENSATION | 2. ACCOUNTING FOR STOCK-BASED COMPENSATION Stock-based compensation awards have been granted under the Community Health Systems, Inc. Amended and Restated 2009 Stock Option and Award Plan, which was most recently amended and restated as of March 22, 2023 and most recently approved by the Company’s stockholders at the annual meeting of stockholders held on May 9, 2023 (the “2009 Plan”). The 2009 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code (“IRC”) and for the grant of stock options which do not so qualify, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance-based shares or units and other share awards. Persons eligible to receive grants under the 2009 Plan include the Company’s directors, officers, employees and consultants. To date, all options granted under the 2009 Plan have been “nonqualified” stock options for tax purposes. Generally, these options vest in one-third increments on each of the first three anniversaries of the option grant date and expire on the tenth anniversary of the option grant date. The exercise price of all options granted under the 2009 Plan is equal to the fair value of the Company’s common stock on the option grant date. As of June 30, 2024 , 3,835,513 shares of unissued common stock were reserved for future grants under the 2009 Plan. The following table reflects the impact of total compensation expense related to stock-based equity plans on the reported operating results for the respective periods (in millions): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Effect on income before income taxes $ ( 2 ) $ ( 4 ) $ ( 8 ) $ ( 10 ) Effect on net income (loss) $ ( 2 ) $ ( 3 ) $ ( 6 ) $ ( 8 ) At June 30, 2024 , $ 28 million of unrecognized stock-based compensation expense related to outstanding unvested stock options, restricted stock and restricted stock units (the terms of which are summarized below) was expected to be recognized over a weighted-average period of 23 months. Of that amount, $ 5 million relates to outstanding unvested stock options expected to be recognized over a weighted-average period of 21 months and $ 23 million relates to outstanding unvested restricted stock and RSUs expected to be recognized over a weighted-average period of 23 months. There were no modifications to awards during the six months ended June 30, 2024 and 2023. The fair value of stock options was estimated using the Black Scholes option pricing model with the following assumptions and weighted-average fair values during the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended 2024 2023 2024 2023 Expected volatility N/A N/A 90.1 % 87.3 % Expected dividends N/A N/A — — Expected term N/A N/A 6 years 6 years Risk-free interest rate N/A N/A 4.3 % 4.2 % In determining the expected term, the Company examined concentrations of option holdings and historical patterns of option exercises and forfeitures, as well as forward-looking factors, in an effort to determine if there were any discernible employee populations. From this analysis, in determining the expected term for both of the six-month periods ended June 30, 2024 and 2023, the Company identified one population, consisting of persons receiving grants of stock options. The computation of expected term was performed using the simplified method for all stock options granted in the periods presented. The simplified method was used as a result of the Company determining that historical exercise data does not provide a reasonable basis for the expected term of its grants, due primarily to the limited number of stock option exercises that have occurred. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The pre-vesting forfeiture rate is based on historical rates and forward-looking factors for each population identified. The Company adjusts the estimated forfeiture rate to its actual experience. The expected volatility rate was estimated based on historical volatility. In determining expected volatility, the Company also reviewed the market-based implied volatility of actively traded options of its common stock and determined that historical volatility utilized to estimate the expected volatility rate did not differ significantly from the implied volatility. Options outstanding and exercisable under the 2009 Plan as of June 30, 2024, and changes during each of the three-month periods following December 31, 2023, was as follows (in millions, except share and per share data): Weighted- Aggregate Weighted- Average Intrinsic Average Remaining Value as of Exercise Contractual June 30, Shares Price Term 2024 Outstanding at December 31, 2023 3,630,750 $ 7.07 Granted 901,000 2.87 Exercised — — Forfeited and cancelled ( 27,000 ) 4.96 Outstanding at March 31, 2024 4,504,750 6.24 Granted — — Exercised — — Forfeited and cancelled ( 14,000 ) 4.99 Outstanding at June 30, 2024 4,490,750 $ 6.24 7.4 years $ — Exercisable at June 30, 2024 2,793,739 $ 6.99 6.4 years $ — The weighted-average grant date fair value of stock options granted during the six months ended June 30, 2024 and 2023 was $ 2.19 and $ 4.61 , respectively. The aggregate intrinsic value (calculated as the number of in-the-money stock options multiplied by the difference between the Company’s closing stock price on the last trading day of the reporting period ($ 3.36 ) and the exercise price of the respective stock options) in the table above represents the amount that would have been received by the option holders had all option holders exercised their options on June 30, 2024 . This amount changes based on the market value of the Company’s common stock. No stock options were exercised during the three and six months ended June 30, 2024 . The aggregate intrinsic value of options exercised was less than $ 1 million during both of the three- and six-month periods ended June 30, 2023. The aggregate intrinsic value of options vested and expected to vest approximates that of the outstanding options. The Company has also awarded restricted stock under the 2009 Plan to employees of certain subsidiaries. With respect to time-based vesting restricted stock that has been awarded under the 2009 Plan, the restrictions on these shares have generally lapsed in one-third increments on each of the first three anniversaries of the award date . In addition, certain of the restricted stock awards granted to the Company’s senior executives have contained performance objectives required to be met in addition to any time-based vesting requirements. If the applicable performance objectives are not attained, these awards will be forfeited in their entirety. For performance-based awards, the performance objectives are measured cumulatively over a three-year period. If the applicable target performance objective is met at the end of the three-year period, then the restricted stock award subject to such performance objective will vest in full on the third anniversary of the award date. Additionally, for these performance-based awards, based on the level of achievement for the applicable performance objective within the parameters specified in the award agreement, the number of shares to be issued in connection with the vesting of the award may be adjusted to decrease or increase the number of shares specified in the original award. Notwithstanding the above-mentioned performance objectives and vesting requirements, the restrictions with respect to restricted stock granted under the 2009 Plan may lapse earlier in the event of death, disability, change in control of the Company or, other than for performance-b ased awards, termination of employment by the Company for any reason other than for cause of the holder of the restricted stock. On March 1, 2024, restricted stock awards subject to performance objectives granted on March 1, 2021 vested based on the Company’s cumulative performance compared to performance objectives for the 2021 through 2023 performance period, which were set prior to the date of grant. Such awards vested at 80 % of the number of shares originally granted to the Company’s then executive chairman, chief executive officer and chief financial officer based on the performance objectives applicable to the then executive chairman, chief executive officer and chief financial officer, and at 100 % of the number of shares originally granted to other senior executives based on the performance objectives applicable to such other senior executives. Restricted stock awards subject to performance objectives that have not yet been satisfied are not considered outstanding for purposes of determining diluted earnings per share unless the performance objectives have been satisfied on the basis of results through the end of each respective reporting period. Restricted stock outstanding under the 2009 Plan as of June 30, 2024, and changes during each of the three-month periods following December 31, 2023, was as follows: Weighted- Average Grant Shares Date Fair Value Unvested at December 31, 2023 6,053,823 $ 8.00 Granted 2,842,000 2.87 Vested ( 2,111,567 ) 8.47 Forfeited ( 147,001 ) 8.34 Unvested at March 31, 2024 6,637,255 5.65 Granted 4,000 3.78 Vested ( 44,335 ) 6.63 Forfeited ( 5,334 ) 5.22 Unvested at June 30, 2024 6,591,586 6.64 RSUs have been granted to the Company’s non-management directors under the 2009 Plan. Each of the Company’s then serving non-management directors received grants under the 2009 Plan of 62,718 RSUs and 29,268 RSUs with a grant date of March 1, 2024 and 2023, respectively. Both the March 2024 and 2023 grants had a grant date fair value of approximately $ 180,000 . In addition to the grants set forth above, on March 1, 2024 and March 1, 2023, the Chairman of the Board of Directors was awarded an additional grant of 92,334 RSUs and 43,089 RSUs, respectively, each with a grant date fair value of approximately $ 265,000 , as additional compensation for serving as Chairman of the Board of Directors. Pursuant to the Company’s non-management director compensation program, on June 1, 2024, a new non-management director, who was elected to the Board of Directors at the Annual Meeting of the Company’s stockholders on May 7, 2024, received a grant of 62,718 RSUs (the same number of RSUs granted to the other non-management directors on March 1, 2024), which had a grant date fair value of approximately $ 248,000 . Vesting of RSUs granted to non-management directors occurs in one-third increments on each of the first three anniversaries of the award date or upon the director’s earlier cessation of service on the Board of Directors, other than for cause. Each non-management director may elect, prior to the beginning of the calendar year in which the award is granted, to defer the receipt of shares of the Company’s common stock issuable upon vesting until either his or her (i) separation from service with the Company or (ii) attainment of an age specified in advance by the non-management director. A total of five directors elected to defer the receipt of RSUs granted on March 1, 2024 to a future date, and a total of four directors elected to defer the receipt of RSUs granted on March 1, 2023 to a future date. The new non-management director elected to defer the receipt of RSUs granted on June 1, 2024 to a future date. RSUs outstanding under the 2009 Plan as of June 30, 2024, and changes during each of the three-month periods following December 31, 2023, was as follows: Weighted- Average Grant Shares Date Fair Value Unvested at December 31, 2023 775,926 $ 6.86 Granted 844,950 2.87 Vested ( 129,384 ) 7.78 Forfeited — — Unvested at March 31, 2024 1,491,492 4.52 Granted 62,718 3.96 Vested ( 5,894 ) 5.00 Forfeited — — Unvested at June 30, 2024 1,548,316 4.49 |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2024 | |
Acquisitions And Divestitures [Abstract] | |
ACQUISITIONS AND DIVESTITURES | 3. ACQUISITIONS AND DIVESTITURES Acquisitions The Company accounts for all transactions that represent business combinations using the acquisition method of accounting, where the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquired entity are recognized and measured at their fair values on the date the Company obtains control in the acquiree. Such fair values that are not finalized for reporting periods following the acquisition date are estimated and recorded as provisional amounts. Adjustments to these provisional amounts during the measurement period (defined as the date through which all information required to identify and measure the consideration transferred, the assets acquired, the liabilities assumed and any noncontrolling interests has been obtained, limited to one year from the acquisition date) are recorded when identified. Goodwill is determined as the excess of the fair value of the consideration conveyed in the acquisition over the fair value of the net assets acquired. The Company accounts for asset acquisitions pursuant to a cost accumulation model. Direct transaction costs are recognized as part of the cost of an acquisition. The Company also evaluates which elements of a transaction should be accounted for as part of an asset acquisition and which should be accounted for separately. The cost of an asset acquisition, including transaction costs, is allocated to identifiable assets acquired and liabilities assumed based on a relative fair value basis. Goodwill is not recognized in an asset acquisition. During the six months ended June 30, 2024, one or more subsidiaries of the Company paid approximately $ 1 million to acquire the operating assets and related businesses of certain physician practices and clinics that operate within the communities served by the Company’s affiliated hospitals. The purchase price for these transactions was primarily allocated to working capital and property and equipment. Divestitures There were no hospital divestitures completed during the three and six months ended June 30, 2024 . The following table provides a summary of hospitals that the Company divested (or, in the case of Lutheran Rehabilitation Hospital, in which the Company sold a majority interest) during the year ended December 31, 2023: Licensed Hospital Buyer City, State Beds Effective Date 2023 Divestitures: Greenbrier Valley Medical Center Vandalia Health, Inc. Ronceverte, WV 122 January 1, 2023 Plateau Medical Center Vandalia Health, Inc. Oak Hill, WV 25 April 1, 2023 Medical Center of South Arkansas SARH Holdings, Inc. El Dorado, AR 166 July 1, 2023 Lutheran Rehabilitation Hospital Select Medical Corporation Fort Wayne, IN 36 September 1, 2023 AllianceHealth Ponca City Integris Health Ponca City, OK 140 November 1, 2023 AllianceHealth Woodward Integris Health Woodward, OK 87 November 1, 2023 Bravera Health Brooksville Tampa General Hospital Brooksville, FL 120 December 1, 2023 Bravera Health Spring Hill Tampa General Hospital Spring Hill, FL 124 December 1, 2023 Bravera Health Seven Rivers Tampa General Hospital Crystal River, FL 128 December 1, 2023 On February 28, 2023, the Company entered into a definitive agreement for the sale of substantially all of the assets of Lake Norman Regional Medical Center ( 123 licensed beds) in Mooresville, North Carolina, and Davis Regional Medical Center ( 144 licensed beds) in Statesville, North Carolina, to Novant Health, Inc. Following judicial developments involving efforts of the Federal Trade Commission to prevent completion of this transaction, the aforementioned definitive agreement was terminated effective June 21, 2024. No termination penalty was payable either by or to the Company in connection with the termination of this agreement. These hospitals are classified as held-and-used as of June 30, 2024. On April 18, 2024, the Company entered into a definitive agreement for the sale of substantially all of the assets of Tennova Healthcare - Cleveland ( 351 licensed beds) in Cleveland, Tennessee, to Hamilton Health Care System, Inc. and certain of its affiliates. This hospital was classified as held-for-sale as of June 30, 2024. The following table discloses amounts included in the condensed consolidated balance sheets for the hospital classified as held-for-sale as of June 30, 2024 and December 31, 2023 (in millions). Other assets, net, primarily includes the net property and equipment and goodwill for the hospital held-for-sale. No divestitures or potential divestitures meet the criteria for reporting as a discontinued operation as of June 30, 2024 or December 31, 2023. June 30, December 31, Other current assets $ 7 $ 6 Other assets, net 185 218 Accrued liabilities ( 8 ) ( 13 ) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | 4. GOODWILL The changes in the carrying amount of goodwill for the six months ended June 30, 2024 are as follows (in millions): Balance, as of December 31, 2023 Goodwill $ 6,772 Accumulated impairment losses ( 2,814 ) 3,958 Goodwill acquired as part of acquisitions during current year — Goodwill allocated to hospitals divested or held-for-sale 14 Balance, as of June 30, 2024 Goodwill 6,786 Accumulated impairment losses ( 2,814 ) $ 3,972 Goodwill allocated to hospitals divested or held-for-sale reflects the net activity of changing the classification of entities as held-and-used or held-for-sale during the period as further discussed in Note 3 to the Condensed Consolidated Financial Statements. Goodwill is allocated to each identified reporting unit, which is defined as an operating segment or one level below the operating segment (referred to as a component of the entity). Management has determined that the Company’s operating segment meets the criteria to be classified as a reporting unit. Goodwill is evaluated for impairment annually and when an event occurs or circumstances change that, more likely than not, reduce the fair value of the reporting unit below its carrying value. The Company performed its last annual goodwill impairment evaluation during the fourth quarter of 2023 using an October 31, 2023 measurement date, which indicated no impairment. The determination of fair value in the Company’s goodwill impairment analysis is based on an estimate of fair value for the reporting unit utilizing known and estimated inputs at the evaluation date. Some of those inputs include, but are not limited to, the most recent price of the Company’s common stock and fair value of long-term debt, the Company’s recent financial results, estimates of future revenue and expense growth, estimated market multiples, expected capital expenditures, income tax rates, costs of invested capital and a discount rate. Future estimates of fair value could be adversely affected if the actual outcome of one or more of the assumptions described above changes materially in the future, including as a result of any decline in the Company’s stock price and the fair value of its long-term debt, an increase in the volatility of the Company’s stock price and the fair value of its long-term debt, lower-than-expected hospital volumes and/or net operating revenues, higher market interest rates, increased operating costs or other adverse impacts on the Company’s financial results. Such changes impacting the calculation of fair value could result in a material impairment charge in the future. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 5. INCOME TAXES The total amount of unrecognized benefit that would affect the effective tax rate, if recognized, was $ 46 million at June 30, 2024. A total of $ 3 million of interest and penalties is included in the amount of the liability for uncertain tax positions at June 30, 2024. It is the Company’s policy to recognize interest and penalties related to unrecognized benefits in its condensed consolidated statements of loss as income tax expense. It is possible the amount of unrecognized tax benefit could change in the next 12 months as a result of a lapse of the statute of limitations and settlements with taxing authorities; however, the Company does not anticipate the change will have a material impact on the Company’s condensed consolidated results of operations or financial position. The Company’s income tax return for the 2018 tax year remains under examination by the Internal Revenue Service. The Company believes the result of this examination will not be material to its consolidated results of operations or consolidated financial position. The Company has extended the federal statute of limitations through June 30, 2025 for Community Health Systems, Inc. for the tax period ended December 31, 2018. The Company’s provision for income taxes was $ 24 million and $ 38 million for the three months ended June 30, 2024 and 2023 , respectively, and $ 52 million and $ 65 million for the six months ended June 30, 2024 and 2023, respectively. The Company’s effective tax rates were 48.0 % and 95.0 % for the three months ended June 30, 2024 and 2023 , respectively, and 72.2 % and 138.3 % for the six months ended June 30, 2024 and 2023, respectively. The decrease in the provision for income taxes and the difference in the Company’s effective tax rate for the three and six months ended June 30, 2024, compared to the same periods in 2023 was primarily due to a decrease in nondeductible goodwill in the current period compared to the prior period. Cash paid for income taxes, net of refunds received, resulted in a net payment of $ 84 million during both the three and six months ended June 30, 2024, and $ 37 million during both the three and six months ended June 30, 2023 . |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
Long-Term Debt and Lease Obligation [Abstract] | |
LONG-TERM DEBT | 6. LONG-TERM DEBT Long-term debt, net of unamortized debt issuance costs and discounts or premiums, as applicable, consists of the following (in millions): June 30, December 31, 2024 2023 8 % Senior Secured Notes due 2026 $ — $ 1,116 8 % Senior Secured Notes due 2027 700 700 5 ⅝% Senior Secured Notes due 2027 1,900 1,900 6 ⅞% Senior Notes due 2028 626 756 6 % Senior Secured Notes due 2029 644 644 5 ¼% Senior Secured Notes due 2030 1,535 1,535 4 ¾% Senior Secured Notes due 2031 1,058 1,058 10 ⅞% Senior Secured Notes due 2032 2,225 1,000 6 ⅞% Junior-Priority Secured Notes due 2029 1,244 1,244 6 ⅛% Junior-Priority Secured Notes due 2030 1,227 1,227 ABL Facility 273 247 Finance lease and financing obligations 369 366 Other 33 32 Less: Unamortized deferred debt issuance costs ( 303 ) ( 338 ) Total debt 11,531 11,487 Less: Current maturities ( 27 ) ( 21 ) Total long-term debt $ 11,504 $ 11,466 On June 5, 2024, CHS/Community Health Systems, Inc. (“CHS”) completed the offering of an additional $ 1.225 billion aggregate principal amount of its outstanding 10.875 % Senior Secured Notes due 2032 (the “Tack-On Notes”) at an issue price of 102.000 %, plus accrued and unpaid interest from December 22, 2023 to the closing date (which equaled approximately $ 60 million). The Tack-On Notes are part of the same series as, and rank equally with, the 10⅞% Senior Secured Notes due 2032 issued in December 2023. Following the issuance of the Tack-On Notes, the total aggregate principal amount of outstanding 10⅞% Senior Secured Notes due 2032 is $ 2.225 billion. Proceeds from the offering of the Tack-On Notes, together with cash on hand, were used to redeem all $ 1.116 billion of the outstanding 8.000 % Senior Secured Notes due 2026 , to fund repurchases of the Company’s 6⅞ % Senior Notes due 2028 as noted below, to pay related fees and expenses and for general corporate purposes. The 10⅞ % Senior Secured Notes due 2032 bear interest at a rate of 10.875 % per year payable semi-annually in arrears on February 15 and August 15, commencing on August 15, 2024. The 10⅞ % Senior Secured Notes due 2032 are unconditionally guaranteed on a senior-priority secured basis by the Company and each of CHS’ current and future domestic subsidiaries that provide guarantees under the ABL Facility, any capital market debt securities of CHS (including CHS’ outstanding senior notes) and certain other long-term debt of CHS. The 10⅞ % Senior Secured Notes due 2032 and the related guarantees are secured by shared (i) first-priority liens on the Non-ABL Priority Collateral and (ii) second-priority liens on the ABL Priority Collateral that secures on a first-priority basis the ABL Facility, in each case subject to permitted liens described in the indenture governing the 10⅞ % Senior Secured Notes due 2032 . Approximately $ 98 million of the proceeds from the Tack-On Notes, as described above, was used to extinguish $ 130 million principal value of the Company’s 6⅞ % Senior Notes due 2028 , resulting in a pre-tax gain from early extinguishment of debt of approximately $ 32 million. Together with the issuance of the Tack-On Notes , there was a pre-tax and after-tax gain from early extinguishment of debt of $ 26 million and $ 27 million, respectively, for the three- and six-month periods ended June 30, 2024. There were no financing transactions in the comparable prior year periods. On June 5, 2024, the Company and CHS entered into the Second Amendment and Restatement Agreement (the “Amendment”) to refinance and replace the amended and restated asset-based loan (“ABL”) credit agreement (the “ABL Credit Agreement” and, as amended by the Amendment, the “Amended and Restated ABL Credit Agreement”), dated as of November 22, 2021, with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders and other agents party thereto. Pursuant to the Amended and Restated ABL Credit Agreement, the lenders have extended to CHS a revolving asset-based loan facility (the “ABL Facility”) in the maximum aggregate principal amount of $ 1.0 billion, subject to borrowing base capacity. The ABL Facility includes borrowing capacity available for letters of credit of $ 200 million. CHS and all domestic subsidiaries of CHS that guarantee CHS’ other outstanding senior and senior secured indebtedness guarantee the obligations of CHS under the ABL Facility. Subject to certain exceptions, all obligations under the ABL Facility and the related guarantees are secured by a perfected first-priority security interest in substantially all of the receivables, deposit, collection and other accounts and contract rights, books, records and other instruments related to the foregoing of the Company, CHS and the guarantors, as well as a perfected junior-priority third lien security interest in substantially all of the other assets of the Company, CHS and the guarantors, subject to customary exceptions and intercreditor arrangements. Principal amounts outstanding under the ABL Facility will be due and payable in full on June 5, 2029. At June 30, 2024, the Company had outstanding borrowings of $ 273 million and approximately $ 599 million of additional borrowing capacity (after taking into consideration the $ 67 million of outstanding letters of credit) under the ABL Facility. The issued letters of credit were primarily in support of potential insurance-related claims and certain bonds. Letters of credit were reduced during the six months ended June 30, 2024 by $ 14 million, primarily in relation to a professional liability claim that was settled and funded during the six months ended June 30, 2024. The ABL Facility contains customary representations and warranties, subject to limitations and exceptions, and customary covenants restricting the Company’s ability, subject to certain exceptions, to, among other things (1) declare dividends, make distributions or redeem or repurchase capital stock, (2) prepay, redeem or repurchase other debt, (3) incur liens or grant negative pledges, (4) make loans and investments and enter into acquisitions and joint ventures, (5) incur additional indebtedness or provide certain guarantees, (6) engage in mergers, acquisitions and asset sales, (7) conduct transactions with affiliates, (8) alter the nature of the Company’s, CHS’ or the guarantors’ businesses, (9) grant certain guarantees with respect to physician practices, (10) engage in sale and leaseback transactions or (11) change the Company’s fiscal year. The Company is also required to comply with a consolidated fixed coverage ratio, upon certain triggering events described below, and various affirmative covenants. The consolidated fixed charge coverage ratio is calculated as the ratio of (x) consolidated EBITDA (as defined in the ABL Facility) less capital expenditures to (y) the sum of consolidated interest expense (as defined in the ABL Facility), scheduled principal payments, income taxes and restricted payments made in cash or in permitted investments. For purposes of calculating the consolidated fixed charge coverage ratio, the calculation of consolidated EBITDA as defined in the ABL Facility is a trailing 12-month calculation that begins with the Company’s consolidated net income, with certain adjustments for interest, taxes, depreciation and amortization, net income attributable to noncontrolling interests, stock compensation expense, restructuring costs, and the financial impact of other non-cash or non-recurring items recorded during any such 12-month period. The consolidated fixed charge coverage ratio is a required covenant only in periods where the total borrowings outstanding under the ABL Facility reduce the amount available in the facility to less than the greater of (i) $ 95 million or (ii) 10 % of the calculated borrowing base. As a result, in the event the Company has less than $ 95 million available under the ABL Facility, the Company would need to comply with the consolidated fixed charge coverage ratio. At June 30, 2024, the Company is not subject to the consolidated fixed charge coverage ratio as such triggering event had not occurred during the twelve months ended June 30, 2024. The Company paid interest of $ 211 million and $ 188 million on borrowings during the three months ended June 30, 2024 and 2023 , respectively, and $ 360 million and $ 385 million on borrowings during the six months ended June 30, 2024 and 2023, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 7. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of financial instruments has been estimated by the Company using available market information as of June 30, 2024 and December 31, 2023, and valuation methodologies considered appropriate. The estimates presented in the table below are not necessarily indicative of amounts the Company could realize in a current market exchange (in millions): June 30, 2024 December 31, 2023 Carrying Estimated Carrying Estimated Amount Value Amount Value Assets: Cash and cash equivalents $ 39 $ 39 $ 38 $ 38 Investments in equity securities 64 64 69 69 Available-for-sale debt securities 178 178 182 182 Trading securities 5 5 5 5 Liabilities: 8% Senior Secured Notes due 2026 — — 1,109 1,114 8% Senior Secured Notes due 2027 695 695 695 679 5⅝% Senior Secured Notes due 2027 1,855 1,769 1,847 1,767 6⅞% Senior Notes due 2028 622 458 750 470 6% Senior Secured Notes due 2029 624 567 622 580 5¼% Senior Secured Notes due 2030 1,463 1,269 1,458 1,287 4¾% Senior Secured Notes due 2031 1,054 829 1,054 834 10⅞% Senior Secured Notes due 2032 2,211 2,316 982 1,047 6⅞% Junior-Priority Secured Notes due 2029 1,168 954 1,162 812 6⅛% Junior-Priority Secured Notes due 2030 1,170 858 1,167 781 ABL Facility and other debt 300 300 275 275 The carrying value of the Company’s long-term debt in the above table is presented net of unamortized deferred debt issuance costs. The estimated fair value is determined using the methodologies discussed below in accordance with accounting standards related to the determination of fair value based on the U.S. GAAP fair value hierarchy as discussed in Note 8. The estimated fair value for financial instruments with a fair value that does not equal its carrying value is considered a Level 1 valuation. The Company utilizes the market approach and obtains indicative pricing through publicly available subscription services such as Bloomberg to determine fair values where relevant. Cash and cash equivalents. The carrying amount approximates fair value due to the short-term maturity of these instruments (less than three months). Investments in equity securities. Estimated fair value is based on closing price as quoted in public markets. Available-for-sale debt securities. Estimated fair value is based on closing price as quoted in public markets or other various valuation techniques. Trading securities. Estimated fair value is based on closing price as quoted in public markets. Senior Notes, Senior Secured Notes and Junior-Priority Secured Notes. Estimated fair value is based on the closing market price for these notes. ABL Facility and other debt. The carrying amount of the ABL Facility and all other debt approximates fair value due to the nature of these obligations. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 8. FAIR VALUE Fair Value Hierarchy Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the Company utilizes the U.S. GAAP fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumption about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). The inputs used to measure fair value are classified into the following fair value hierarchy: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 includes values determined using pricing models, discounted cash flow methodologies, or similar techniques reflecting the Company’s own assumptions. In instances where the determination of the fair value hierarchy measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment of factors specific to the asset or liability. Transfers between levels within the fair value hierarchy are recognized by the Company on the date of the change in circumstances that requires such transfer. There were no transfers between levels during the six months ended June 30, 2024 and 2023. The following table sets forth, by level within the fair value hierarchy, the financial assets and liabilities recorded at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (in millions): June 30, Level 1 Level 2 Level 3 Investments in equity securities $ 64 $ 64 $ — $ — Available-for-sale debt securities 178 — 178 — Trading securities 5 — 5 — Total assets $ 247 $ 64 $ 183 $ — December 31, Level 1 Level 2 Level 3 Investments in equity securities $ 69 $ 69 $ — $ — Available-for-sale debt securities 182 — 182 — Trading securities 5 — 5 — Total assets $ 256 $ 69 $ 187 $ — Investments in equity securities classified as Level 1 are measured using quoted market prices. Level 2 available-for-sale debt securities and trading securities primarily consist of bonds and notes issued by the United States government and its agencies and domestic and foreign corporations. The estimated fair values of these securities are determined using various valuation techniques, including a multi-dimensional relational model that incorporates standard observable inputs and assumptions such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids/offers and other pertinent reference data. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | 9. LEASES The Company utilizes operating and finance leases for the use of certain hospitals, medical office buildings, and medical equipment. The components of lease cost and rent expense for the three and six months ended June 30, 2024 and 2023 are as follows (in millions): Three Months Ended Six Months Ended Lease Cost 2024 2023 2024 2023 Operating lease cost: Operating lease cost $ 46 $ 53 $ 94 $ 108 Short-term rent expense 22 22 45 44 Variable lease cost 6 6 14 12 Sublease income ( 1 ) ( 1 ) ( 2 ) ( 3 ) Total operating lease cost $ 73 $ 80 $ 151 $ 161 Finance lease cost: Amortization of right-of-use assets $ 3 $ 3 $ 5 $ 6 Interest on finance lease liabilities 3 3 7 7 Total finance lease cost $ 6 $ 6 $ 12 $ 13 Supplemental balance sheet information related to leases is as follows (in millions): Balance Sheet Classification June 30, 2024 December 31, 2023 Operating Leases: Operating lease right-of-use assets Other assets, net $ 634 $ 665 Finance Leases: Finance lease right-of-use assets Property and equipment Land and improvements $ — $ — Buildings and improvements 248 246 Equipment and fixtures 9 10 Property and equipment 257 256 Less accumulated depreciation and amortization ( 57 ) ( 55 ) Property and equipment, net $ 200 $ 201 Current finance lease liabilities Current maturities of long-term debt $ 2 $ 2 Long-term finance lease liabilities Long-term debt 216 214 Supplemental cash flow information related to leases for the six months ended June 30, 2024 and 2023 is as follows (in millions): Six Months Ended Cash flow information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 91 $ 103 Operating cash flows from finance leases 7 7 Financing cash flows from finance leases 2 2 Right-of-use assets obtained in exchange for new finance lease liabilities 3 — Right-of-use assets obtained in exchange for new operating lease liabilities 32 49 _______________________________ (1) Included in the change in other operating assets and liabilities in the condensed consolidated statements of cash flows. |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' DEFICIT | 10. STOCKHOLDERS’ DEFICIT Authorized capital shares of the Company include 400,000,000 shares of capital stock consisting of 300,000,000 shares of common stock and 100,000,000 shares of preferred stock. Each of the aforementioned classes of capital stock has a par value of $ 0.01 per share. Shares of preferred stock, none of which were outstanding as of June 30, 2024, may be issued in one or more series having such rights, preferences and other provisions as determined by the Board of Directors without approval by the holders of common stock. The Company is a holding company, which operates through its subsidiaries. The ABL Facility and the indentures governing each series of the Company’s outstanding notes contain various covenants under which the assets of the subsidiaries of the Company are subject to certain restrictions relating to, among other matters, dividends and distributions, as referenced in the paragraph below. The ABL Facility and the indentures governing each series of the Company’s outstanding notes restrict the Company’s subsidiaries from, among other matters, paying dividends and making distributions to the Company, which thereby limits the Company’s ability to pay dividends and/or repurchase stock. As of June 30, 2024, under the most restrictive test in these agreements (and subject to certain exceptions), the Company has approximately $ 300 million of capacity to pay permitted dividends and/or repurchase shares of stock or make other restricted payments. The schedule below presents the reconciliation of the carrying amount of total equity, equity attributable to the Company’s stockholders, and equity attributable to noncontrolling interests as of June 30, 2024, and during each of the three-month periods following December 31, 2023 (in millions). Community Health Systems, Inc. Stockholders Redeemable Common Additional Accumulated Accumulated Noncontrolling Total Balance, December 31, 2023 $ 323 $ 1 $ 2,185 $ ( 14 ) $ ( 3,564 ) $ 245 $ ( 1,147 ) Comprehensive income (loss) 16 — — ( 2 ) ( 41 ) 19 ( 24 ) Distributions to noncontrolling ( 17 ) — — — — ( 33 ) ( 33 ) Adjustment to redemption value of ( 3 ) — 3 — — — 3 Cancellation of restricted stock for — — ( 2 ) — — — ( 2 ) Other reclassifications of 10 — — — — ( 10 ) ( 10 ) Share-based compensation — — 6 — — — 6 Balance, March 31, 2024 329 1 2,192 ( 16 ) ( 3,605 ) 221 ( 1,207 ) Comprehensive income (loss) 15 — — 3 ( 14 ) 25 14 Distributions to noncontrolling interests ( 14 ) — — — — ( 20 ) ( 20 ) Purchases of subsidiary shares from noncontrolling 1 — ( 2 ) — — — ( 2 ) Adjustment to redemption value of redeemable 2 — ( 2 ) — — — ( 2 ) Other reclassifications of ( 9 ) — — — — 12 12 Share-based compensation — — 2 — — — 2 Balance, June 30, 2024 $ 324 $ 1 $ 2,190 $ ( 13 ) $ ( 3,619 ) $ 238 $ ( 1,203 ) The following schedule presents the reconciliation of the carrying amount of total equity, equity attributable to the Company’s stockholders, and equity attributable to the noncontrolling interests as of June 30, 2023, and during each of the three-month periods following December 31, 2022 (in millions): Community Health Systems, Inc. Stockholders Redeemable Common Additional Accumulated Accumulated Noncontrolling Total Balance, December 31, 2022 $ 541 $ 1 $ 2,084 $ ( 21 ) $ ( 3,431 ) $ 92 $ ( 1,275 ) Comprehensive income (loss) 21 — — 3 ( 51 ) 11 ( 37 ) Distributions to noncontrolling ( 33 ) — — — — ( 11 ) ( 11 ) Purchases of subsidiary shares ( 1 ) — — — — — — Contributions from noncontrolling 1 — — — — 1 1 Adjustment to redemption value of 32 — ( 32 ) — — — ( 32 ) Cancellation of restricted stock for — — ( 4 ) — — — ( 4 ) Share-based compensation — — 6 — — — 6 Balance, March 31, 2023 561 1 2,054 ( 18 ) ( 3,482 ) 93 ( 1,352 ) Comprehensive income (loss) 28 — — ( 1 ) ( 38 ) 11 ( 28 ) Distributions to noncontrolling interests ( 21 ) — — — — ( 19 ) ( 19 ) Contributions from noncontrolling interests — — — — — 1 1 Purchases of subsidiary shares from noncontrolling ( 6 ) — 5 — — — 5 Noncontrolling interest in acquired entity 7 — — — — — — Adjustment to redemption value of redeemable 14 — ( 14 ) — — — ( 14 ) Share-based compensation — — 4 — — — 4 Balance, June 30, 2023 $ 583 $ 1 $ 2,049 $ ( 19 ) $ ( 3,520 ) $ 86 $ ( 1,403 ) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net loss attributable to Community Health Systems, $ ( 13 ) $ ( 38 ) $ ( 55 ) $ ( 89 ) Transfers to the noncontrolling interests: Net increase in Community Health Systems, 3 5 3 5 Net transfers to the noncontrolling interests 3 5 3 5 Change to Community Health Systems, Inc. stockholders’ $ ( 10 ) $ ( 33 ) $ ( 52 ) $ ( 84 ) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 11. EARNINGS PER SHARE The following table sets forth the components of the denominator for the computation of basic and diluted earnings per share for net loss attributable to Community Health Systems, Inc. stockholders: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Weighted-average number of shares outstanding — basic 132,344,504 130,659,672 131,808,274 130,176,976 Effect of dilutive securities: Restricted stock awards — — — — Employee stock options — — — — Other equity-based awards — — — — Weighted-average number of shares outstanding — diluted 132,344,504 130,659,672 131,808,274 130,176,976 The Company generated a loss attributable to Community Health Systems, Inc. stockholders for each of the three- and six-month periods ended June 30, 2024 and 2023, so the effect of dilutive securities is not considered because their effect would be antidilutive. If the Company had generated income during the three months ended June 30, 2024 and 2023 , the effect of restricted stock awards, employee stock options, and other equity-based awards on the diluted shares calculation would have been an increase of 864,816 shares and 202,182 shares, respectively. If the Company had generated income during the six months ended June 30, 2024 and 2023 , the effect of restricted stock awards, employee stock options, and other equity-based awards on the diluted shares calculation would have been an increase of 654,307 shares and 335,188 shares, respectively. Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Dilutive securities outstanding not included in the computation Employee stock options and restricted stock awards 5,771,995 7,191,908 5,786,164 6,540,493 |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 12. CONTINGENCIES The Company is a party to various legal, regulatory and governmental proceedings incidental to its business. Based on current knowledge, management does not believe that loss contingencies arising from pending legal, regulatory and governmental matters will have a material adverse effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in pending legal, regulatory and governmental matters, some of which are beyond the Company’s control, and the very large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period. With respect to all legal, regulatory and governmental proceedings, the Company considers the likelihood of a negative outcome. If the Company determines the likelihood of a negative outcome with respect to any such matter is probable and the amount of the loss can be reasonably estimated, the Company records an accrual for the estimated loss for the expected outcome of the matter. If the likelihood of a negative outcome with respect to material matters is reasonably possible and the Company is able to determine an estimate of the possible loss or a range of loss, whether in excess of a related accrued liability or where there is no accrued liability, the Company discloses the estimate of the possible loss or range of loss. However, the Company is unable to estimate a possible loss or range of loss in some instances based on the significant uncertainties involved in, and/or the preliminary nature of, certain legal, regulatory and governmental matters. The table below presents a reconciliation of the beginning and ending liability balances (in millions) during the six months ended June 30, 2024, with respect to the Company’s determination of the contingencies of the Company in respect of which an accrual has been recorded. The liability as of June 30, 2024 is comprised of individually insignificant amounts for various matters. Summary of Recorded Amounts Probable Contingencies Balance as of December 31, 2023 $ 7 Expense — Reserve for insured claim 9 Cash payments ( 2 ) Balance as of June 30, 2024 $ 14 In accordance with applicable accounting guidance, the Company establishes a liability for litigation, regulatory and governmental matters for which, based on information currently available, the Company believes that a negative outcome is known or is probable and the amount of the loss is reasonably estimable. For all such matters (whether or not discussed in this contingencies footnote), such amounts have been recorded in other accrued liabilities in the condensed consolidated balance sheets and are included in the table above. Due to the uncertainties and difficulty in predicting the ultimate resolution of these contingencies, the actual amount could differ from the estimated amount reflected as a liability in the condensed consolidated balance sheets. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The unaudited condensed consolidated financial statements of Community Health Systems, Inc. (the “Parent Company”) and its subsidiaries (the “Company”) as of June 30, 2024 and December 31, 2023 and for the three-month and six-month periods ended June 30, 2024 and 2023, have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for such periods. All intercompany transactions and balances have been eliminated. The results of operations for the three and six months ended June 30, 2024, are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2024. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates under different assumptions or conditions. Certain information and disclosures normally included in the notes to the consolidated financial statements have been condensed or omitted as permitted by the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Company believes the disclosures are adequate to make the information presented not misleading. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2023 , contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 21, 2024 (“2023 Form 10-K”). |
Consolidation | Noncontrolling interests in less-than-wholly-owned consolidated subsidiaries of the Parent Company are presented as a component of total equity in the condensed consolidated balance sheets to distinguish between the interests of the Parent Company and the interests of the noncontrolling owners. Noncontrolling interests that are redeemable or may become redeemable at a fixed or determinable price at the option of the holder or upon the occurrence of an event outside of the control of the Company are presented in mezzanine equity in the condensed consolidated balance sheets. Substantially all of the Company’s operating costs and expenses are “cost of revenue” items. Operating costs that could be classified as general and administrative by the Company include the Company’s corporate office costs at its Franklin, Tennessee office, which were $ 75 million and $ 65 million for the three months ended June 30, 2024 and 2023 , respectively, and $ 156 million and $ 126 million during the six months ended June 30, 2024 and 2023, respectively. The increase in corporate office costs during the three and six months ended June 30, 2024 compared to the same periods in 2023 is primarily due to the impact of certain non-recurring adjustments. Throughout these notes to the unaudited condensed consolidated financial statements, Community Health Systems, Inc., and its consolidated subsidiaries are referred to on a collective basis as the “Company.” This drafting style is not meant to indicate that the publicly-traded Parent Company or any particular subsidiary of the Parent Company owns or operates any asset, business, or property. The hospitals, operations and businesses described in this filing are owned and operated, and management services provided, by distinct and indirect subsidiaries of Community Health Systems, Inc. |
Revenue Recognition | Revenue Recognition. |
Net Operating Revenues | Net Operating Revenues Net operating revenues are recorded at the transaction price estimated by the Company to reflect the total consideration due from patients and third-party payors in exchange for providing goods and services in patient care. These services are considered to be a single performance obligation and have a duration of less than one year. Revenues are recorded as these goods and services are provided. The transaction price, which involves significant estimates, is determined based on the Company’s standard charges for the goods and services provided, with a reduction recorded for price concessions related to third party contractual arrangements as well as patient discounts and other patient price concessions. During each of the three and six-month periods ended June 30, 2024 and 2023, the impact of changes to the inputs used to determine the transaction price was considered immaterial. Currently, several states utilize supplemental reimbursement programs for the purpose of providing reimbursement to providers that is not specifically tied to an individual’s care, some of which offsets a portion of the cost of providing care to Medicaid and indigent patients. The programs are funded with a combination of state and federal resources, including, in certain instances, fees or taxes levied on the providers. The programs are generally authorized by the Centers for Medicare & Medicaid Services (“CMS”) for a specified period of time and require CMS’s approval to be extended. Under these supplemental programs, the Company recognizes revenue and related expenses in the period in which amounts are estimable and payment is reasonably assured. Reimbursement under these programs is reflected in net operating revenues. Taxes or other program-related costs are reflected in other operating expenses. The Company’s net operating revenues for the three and six months ended June 30, 2024 and 2023 have been presented in the following table based on an allocation of the estimated transaction price with the patient between the primary patient classification of insurance coverage (in millions): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Medicare $ 563 $ 628 $ 1,159 $ 1,276 Medicare Managed Care 560 522 1,139 1,065 Medicaid 465 449 906 872 Managed Care and other third-party payors 1,501 1,492 2,980 2,962 Self-pay 51 24 95 48 Total $ 3,140 $ 3,115 $ 6,279 $ 6,223 |
Patient Accounts Receivable | Patient Accounts Receivable Patient accounts receivable are recorded at net realizable value based on certain assumptions determined by each payor. For third-party payors including Medicare, Medicare Managed Care, Medicaid and Managed Care, the net realizable value is based on the estimated contractual reimbursement percentage, which is based on current contract prices or historical paid claims data by payor. For self-pay accounts receivable, which includes patients who are uninsured and the patient responsibility portion for patients with insurance, the net realizable value is determined using estimates of historical collection experience without regard to aging category. These estimates are adjusted for estimated conversions of patient responsibility portions, expected recoveries and any anticipated changes in trends. Patient accounts receivable can be impacted by the effectiveness of the Company’s collection efforts. Additionally, significant changes in payor mix, business office operations, economic conditions or trends in federal and state governmental healthcare coverage could affect the net realizable value of accounts receivable. The Company also continually reviews the net realizable value of accounts receivable by monitoring historical cash collections as a percentage of trailing net operating revenues, as well as by analyzing current period net operating revenues and admissions by payor classification, days revenue outstanding, the composition of self-pay receivables between pure self-pay patients and the patient responsibility portion of third-party insured receivables, the impact of recent acquisitions and dispositions and the impact of current macroeconomic conditions and other events. Final settlements for some payors and programs are subject to adjustment based on administrative review and audit by third parties. As a result of these final settlements, the Company has recorded amounts due to third-party payors of $ 92 million and $ 97 million as of June 30, 2024 and December 31, 2023 , respectively, and these amounts are included in accrued liabilities-other in the accompanying condensed consolidated balance sheets. Amounts due from third-party payors were $ 109 million and $ 130 million as of June 30, 2024 and December 31, 2023 , respectively, and are included in other current assets in the accompanying condensed consolidated balance sheets. Substantially all Medicare and Medicaid cost reports are final settled through 2019. |
Charity Care | Charity Care In the ordinary course of business, the Company renders services to patients who are financially unable to pay for hospital care. The Company’s policy is to not pursue collections for such amounts; therefore, the related charges for those patients who are financially unable to pay and that otherwise do not qualify for reimbursement from a governmental program are not reported in net operating revenues, and are thus classified as charity care. The Company determines amounts that qualify for charity care based on the patient’s household income relative to the federal poverty level guidelines, as established by the federal government. These charity care services are estimated to be $ 287 million and $ 320 million for the three months ended June 30, 2024 and 2023, respectively, and $ 603 million and $ 646 million for the six months ended June 30, 2024 and 2023, respectively, representing the value (at the Company’s standard charges) of these charity care services that are excluded from net operating revenues. The estimated cost incurred by the Company to provide these charity care services to patients who are unable to pay was approximately $ 29 million and $ 34 million for the three months ended June 30, 2024 and 2023 , respectively, and $ 59 million and $ 72 million for the six months ended June 30, 2024 and 2023 , respectively. The estimated cost of these charity care services was determined using a ratio of cost to gross charges and applying that ratio to the gross charges associated with providing care to charity patients for the period. |
Accounting for the Impairment or Disposal of Long-Lived Assets | Accounting for the Impairment or Disposal of Long-Lived Assets. During the six months ended June 30, 2024 , the Company recorded an impairment charge of approximately $ 27 million primarily to reduce the carrying value of several assets that were idled, disposed of or held-for-sale. During the six months ended June 30, 2023, the Company recorded a net gain of approximately $ 35 million, comprised of a gain of $ 62 million related to the sale of two hospitals, offset by (i) an approximate $ 22 million impairment charge recorded to reduce the carrying value of a hospital that was deemed held-for-sale based on the difference between carrying value of the hospital disposal group compared to the estimated fair value less costs to sell, and (ii) an approximate $ 5 million impairment charge recorded to reduce the carrying value of several assets that were idled, disposed of or held-for-sale. During the six months ended June 30, 2023, approximately $ 130 million of goodwill was allocated from the hospital operations reporting unit based on a calculation of each disposal group’s relative fair value compared to the total reporting unit. The Company will continue to evaluate the potential for impairment of the long-lived assets of hospitals and other held-and-used businesses as well as evaluate offers for potential sales, as applicable. Based on such analysis, additional impairment charges may be recorded in the future. |
Fair Value of Financial Instruments | The carrying value of the Company’s long-term debt in the above table is presented net of unamortized deferred debt issuance costs. The estimated fair value is determined using the methodologies discussed below in accordance with accounting standards related to the determination of fair value based on the U.S. GAAP fair value hierarchy as discussed in Note 8. The estimated fair value for financial instruments with a fair value that does not equal its carrying value is considered a Level 1 valuation. The Company utilizes the market approach and obtains indicative pricing through publicly available subscription services such as Bloomberg to determine fair values where relevant. Cash and cash equivalents. The carrying amount approximates fair value due to the short-term maturity of these instruments (less than three months). Investments in equity securities. Estimated fair value is based on closing price as quoted in public markets. Available-for-sale debt securities. Estimated fair value is based on closing price as quoted in public markets or other various valuation techniques. Trading securities. Estimated fair value is based on closing price as quoted in public markets. Senior Notes, Senior Secured Notes and Junior-Priority Secured Notes. Estimated fair value is based on the closing market price for these notes. ABL Facility and other debt. The carrying amount of the ABL Facility and all other debt approximates fair value due to the nature of these obligations. |
New Accounting Pronouncements | New Accounting Pronouncements . In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures.” This ASU includes additional requirements for the disclosure of significant segment expenses and segment measure(s) of profit or loss, as well as new disclosure requirements for entities with a single reportable segment and certain qualitative information about the chief operating decision maker. This ASU is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The amendments in this ASU must be applied retrospectively to all periods presented. Early adoption is permitted. The Company is currently evaluating the impact that adoption of this ASU will have on its condensed consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740), Improvements to Income Tax Disclosures.” This ASU establishes new requirements for the categorization and disaggregation of information in the rate reconciliation as well as for disaggregation of income taxes paid. Additionally, this ASU modifies and eliminates certain existing requirements for indefinitely reinvested foreign earnings and unrecognized tax benefits. This ASU is effective for annual periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025. The amendments in this ASU should be applied on a prospective basis and early adoption is permitted. The Company is currently evaluating the impact that adoption of this ASU will have on its condensed consolidated financial statements. The Company has evaluated all other recently issued, but not yet effective, ASUs and does not expect the eventual adoption of such ASUs to have a material impact on its consolidated financial position or results of operations. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Net Operating Revenues | The Company’s net operating revenues for the three and six months ended June 30, 2024 and 2023 have been presented in the following table based on an allocation of the estimated transaction price with the patient between the primary patient classification of insurance coverage (in millions): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Medicare $ 563 $ 628 $ 1,159 $ 1,276 Medicare Managed Care 560 522 1,139 1,065 Medicaid 465 449 906 872 Managed Care and other third-party payors 1,501 1,492 2,980 2,962 Self-pay 51 24 95 48 Total $ 3,140 $ 3,115 $ 6,279 $ 6,223 |
Accounting for Stock-Based Co_2
Accounting for Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation Expense | The following table reflects the impact of total compensation expense related to stock-based equity plans on the reported operating results for the respective periods (in millions): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Effect on income before income taxes $ ( 2 ) $ ( 4 ) $ ( 8 ) $ ( 10 ) Effect on net income (loss) $ ( 2 ) $ ( 3 ) $ ( 6 ) $ ( 8 ) |
Schedule of Share-based Payment Awards, Stock Options, Valuation Assumptions | The fair value of stock options was estimated using the Black Scholes option pricing model with the following assumptions and weighted-average fair values during the three and six months ended June 30, 2024 and 2023: Three Months Ended Six Months Ended 2024 2023 2024 2023 Expected volatility N/A N/A 90.1 % 87.3 % Expected dividends N/A N/A — — Expected term N/A N/A 6 years 6 years Risk-free interest rate N/A N/A 4.3 % 4.2 % |
Schedule of Share-based Compensation, Stock Options, Activity | Options outstanding and exercisable under the 2009 Plan as of June 30, 2024, and changes during each of the three-month periods following December 31, 2023, was as follows (in millions, except share and per share data): Weighted- Aggregate Weighted- Average Intrinsic Average Remaining Value as of Exercise Contractual June 30, Shares Price Term 2024 Outstanding at December 31, 2023 3,630,750 $ 7.07 Granted 901,000 2.87 Exercised — — Forfeited and cancelled ( 27,000 ) 4.96 Outstanding at March 31, 2024 4,504,750 6.24 Granted — — Exercised — — Forfeited and cancelled ( 14,000 ) 4.99 Outstanding at June 30, 2024 4,490,750 $ 6.24 7.4 years $ — Exercisable at June 30, 2024 2,793,739 $ 6.99 6.4 years $ — |
Schedule of Share-based Compensation, Restricted Stock, Activity | Restricted stock outstanding under the 2009 Plan as of June 30, 2024, and changes during each of the three-month periods following December 31, 2023, was as follows: Weighted- Average Grant Shares Date Fair Value Unvested at December 31, 2023 6,053,823 $ 8.00 Granted 2,842,000 2.87 Vested ( 2,111,567 ) 8.47 Forfeited ( 147,001 ) 8.34 Unvested at March 31, 2024 6,637,255 5.65 Granted 4,000 3.78 Vested ( 44,335 ) 6.63 Forfeited ( 5,334 ) 5.22 Unvested at June 30, 2024 6,591,586 6.64 |
Schedule of Share-based Compensation, Restricted Stock Units, Activity | RSUs outstanding under the 2009 Plan as of June 30, 2024, and changes during each of the three-month periods following December 31, 2023, was as follows: Weighted- Average Grant Shares Date Fair Value Unvested at December 31, 2023 775,926 $ 6.86 Granted 844,950 2.87 Vested ( 129,384 ) 7.78 Forfeited — — Unvested at March 31, 2024 1,491,492 4.52 Granted 62,718 3.96 Vested ( 5,894 ) 5.00 Forfeited — — Unvested at June 30, 2024 1,548,316 4.49 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Acquisitions And Divestitures [Abstract] | |
Schedule of Divestitures | The following table provides a summary of hospitals that the Company divested (or, in the case of Lutheran Rehabilitation Hospital, in which the Company sold a majority interest) during the year ended December 31, 2023: Licensed Hospital Buyer City, State Beds Effective Date 2023 Divestitures: Greenbrier Valley Medical Center Vandalia Health, Inc. Ronceverte, WV 122 January 1, 2023 Plateau Medical Center Vandalia Health, Inc. Oak Hill, WV 25 April 1, 2023 Medical Center of South Arkansas SARH Holdings, Inc. El Dorado, AR 166 July 1, 2023 Lutheran Rehabilitation Hospital Select Medical Corporation Fort Wayne, IN 36 September 1, 2023 AllianceHealth Ponca City Integris Health Ponca City, OK 140 November 1, 2023 AllianceHealth Woodward Integris Health Woodward, OK 87 November 1, 2023 Bravera Health Brooksville Tampa General Hospital Brooksville, FL 120 December 1, 2023 Bravera Health Spring Hill Tampa General Hospital Spring Hill, FL 124 December 1, 2023 Bravera Health Seven Rivers Tampa General Hospital Crystal River, FL 128 December 1, 2023 |
Schedule of Balance Sheet Items Classified as Held for Sale | The following table discloses amounts included in the condensed consolidated balance sheets for the hospital classified as held-for-sale as of June 30, 2024 and December 31, 2023 (in millions). Other assets, net, primarily includes the net property and equipment and goodwill for the hospital held-for-sale. No divestitures or potential divestitures meet the criteria for reporting as a discontinued operation as of June 30, 2024 or December 31, 2023. June 30, December 31, Other current assets $ 7 $ 6 Other assets, net 185 218 Accrued liabilities ( 8 ) ( 13 ) |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2024 are as follows (in millions): Balance, as of December 31, 2023 Goodwill $ 6,772 Accumulated impairment losses ( 2,814 ) 3,958 Goodwill acquired as part of acquisitions during current year — Goodwill allocated to hospitals divested or held-for-sale 14 Balance, as of June 30, 2024 Goodwill 6,786 Accumulated impairment losses ( 2,814 ) $ 3,972 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Long-Term Debt and Lease Obligation [Abstract] | |
Schedule of Debt | Long-term debt, net of unamortized debt issuance costs and discounts or premiums, as applicable, consists of the following (in millions): June 30, December 31, 2024 2023 8 % Senior Secured Notes due 2026 $ — $ 1,116 8 % Senior Secured Notes due 2027 700 700 5 ⅝% Senior Secured Notes due 2027 1,900 1,900 6 ⅞% Senior Notes due 2028 626 756 6 % Senior Secured Notes due 2029 644 644 5 ¼% Senior Secured Notes due 2030 1,535 1,535 4 ¾% Senior Secured Notes due 2031 1,058 1,058 10 ⅞% Senior Secured Notes due 2032 2,225 1,000 6 ⅞% Junior-Priority Secured Notes due 2029 1,244 1,244 6 ⅛% Junior-Priority Secured Notes due 2030 1,227 1,227 ABL Facility 273 247 Finance lease and financing obligations 369 366 Other 33 32 Less: Unamortized deferred debt issuance costs ( 303 ) ( 338 ) Total debt 11,531 11,487 Less: Current maturities ( 27 ) ( 21 ) Total long-term debt $ 11,504 $ 11,466 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value of Financial Instruments, by Balance Sheet Grouping | The fair value of financial instruments has been estimated by the Company using available market information as of June 30, 2024 and December 31, 2023, and valuation methodologies considered appropriate. The estimates presented in the table below are not necessarily indicative of amounts the Company could realize in a current market exchange (in millions): June 30, 2024 December 31, 2023 Carrying Estimated Carrying Estimated Amount Value Amount Value Assets: Cash and cash equivalents $ 39 $ 39 $ 38 $ 38 Investments in equity securities 64 64 69 69 Available-for-sale debt securities 178 178 182 182 Trading securities 5 5 5 5 Liabilities: 8% Senior Secured Notes due 2026 — — 1,109 1,114 8% Senior Secured Notes due 2027 695 695 695 679 5⅝% Senior Secured Notes due 2027 1,855 1,769 1,847 1,767 6⅞% Senior Notes due 2028 622 458 750 470 6% Senior Secured Notes due 2029 624 567 622 580 5¼% Senior Secured Notes due 2030 1,463 1,269 1,458 1,287 4¾% Senior Secured Notes due 2031 1,054 829 1,054 834 10⅞% Senior Secured Notes due 2032 2,211 2,316 982 1,047 6⅞% Junior-Priority Secured Notes due 2029 1,168 954 1,162 812 6⅛% Junior-Priority Secured Notes due 2030 1,170 858 1,167 781 ABL Facility and other debt 300 300 275 275 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth, by level within the fair value hierarchy, the financial assets and liabilities recorded at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 (in millions): June 30, Level 1 Level 2 Level 3 Investments in equity securities $ 64 $ 64 $ — $ — Available-for-sale debt securities 178 — 178 — Trading securities 5 — 5 — Total assets $ 247 $ 64 $ 183 $ — December 31, Level 1 Level 2 Level 3 Investments in equity securities $ 69 $ 69 $ — $ — Available-for-sale debt securities 182 — 182 — Trading securities 5 — 5 — Total assets $ 256 $ 69 $ 187 $ — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Components of Lease Cost and Rent Expense | The components of lease cost and rent expense for the three and six months ended June 30, 2024 and 2023 are as follows (in millions): Three Months Ended Six Months Ended Lease Cost 2024 2023 2024 2023 Operating lease cost: Operating lease cost $ 46 $ 53 $ 94 $ 108 Short-term rent expense 22 22 45 44 Variable lease cost 6 6 14 12 Sublease income ( 1 ) ( 1 ) ( 2 ) ( 3 ) Total operating lease cost $ 73 $ 80 $ 151 $ 161 Finance lease cost: Amortization of right-of-use assets $ 3 $ 3 $ 5 $ 6 Interest on finance lease liabilities 3 3 7 7 Total finance lease cost $ 6 $ 6 $ 12 $ 13 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows (in millions): Balance Sheet Classification June 30, 2024 December 31, 2023 Operating Leases: Operating lease right-of-use assets Other assets, net $ 634 $ 665 Finance Leases: Finance lease right-of-use assets Property and equipment Land and improvements $ — $ — Buildings and improvements 248 246 Equipment and fixtures 9 10 Property and equipment 257 256 Less accumulated depreciation and amortization ( 57 ) ( 55 ) Property and equipment, net $ 200 $ 201 Current finance lease liabilities Current maturities of long-term debt $ 2 $ 2 Long-term finance lease liabilities Long-term debt 216 214 |
Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow information related to leases for the six months ended June 30, 2024 and 2023 is as follows (in millions): Six Months Ended Cash flow information 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 91 $ 103 Operating cash flows from finance leases 7 7 Financing cash flows from finance leases 2 2 Right-of-use assets obtained in exchange for new finance lease liabilities 3 — Right-of-use assets obtained in exchange for new operating lease liabilities 32 49 (1) Included in the change in other operating assets and liabilities in the condensed consolidated statements of cash flows. |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Stockholders' Deficit | The schedule below presents the reconciliation of the carrying amount of total equity, equity attributable to the Company’s stockholders, and equity attributable to noncontrolling interests as of June 30, 2024, and during each of the three-month periods following December 31, 2023 (in millions). Community Health Systems, Inc. Stockholders Redeemable Common Additional Accumulated Accumulated Noncontrolling Total Balance, December 31, 2023 $ 323 $ 1 $ 2,185 $ ( 14 ) $ ( 3,564 ) $ 245 $ ( 1,147 ) Comprehensive income (loss) 16 — — ( 2 ) ( 41 ) 19 ( 24 ) Distributions to noncontrolling ( 17 ) — — — — ( 33 ) ( 33 ) Adjustment to redemption value of ( 3 ) — 3 — — — 3 Cancellation of restricted stock for — — ( 2 ) — — — ( 2 ) Other reclassifications of 10 — — — — ( 10 ) ( 10 ) Share-based compensation — — 6 — — — 6 Balance, March 31, 2024 329 1 2,192 ( 16 ) ( 3,605 ) 221 ( 1,207 ) Comprehensive income (loss) 15 — — 3 ( 14 ) 25 14 Distributions to noncontrolling interests ( 14 ) — — — — ( 20 ) ( 20 ) Purchases of subsidiary shares from noncontrolling 1 — ( 2 ) — — — ( 2 ) Adjustment to redemption value of redeemable 2 — ( 2 ) — — — ( 2 ) Other reclassifications of ( 9 ) — — — — 12 12 Share-based compensation — — 2 — — — 2 Balance, June 30, 2024 $ 324 $ 1 $ 2,190 $ ( 13 ) $ ( 3,619 ) $ 238 $ ( 1,203 ) The following schedule presents the reconciliation of the carrying amount of total equity, equity attributable to the Company’s stockholders, and equity attributable to the noncontrolling interests as of June 30, 2023, and during each of the three-month periods following December 31, 2022 (in millions): Community Health Systems, Inc. Stockholders Redeemable Common Additional Accumulated Accumulated Noncontrolling Total Balance, December 31, 2022 $ 541 $ 1 $ 2,084 $ ( 21 ) $ ( 3,431 ) $ 92 $ ( 1,275 ) Comprehensive income (loss) 21 — — 3 ( 51 ) 11 ( 37 ) Distributions to noncontrolling ( 33 ) — — — — ( 11 ) ( 11 ) Purchases of subsidiary shares ( 1 ) — — — — — — Contributions from noncontrolling 1 — — — — 1 1 Adjustment to redemption value of 32 — ( 32 ) — — — ( 32 ) Cancellation of restricted stock for — — ( 4 ) — — — ( 4 ) Share-based compensation — — 6 — — — 6 Balance, March 31, 2023 561 1 2,054 ( 18 ) ( 3,482 ) 93 ( 1,352 ) Comprehensive income (loss) 28 — — ( 1 ) ( 38 ) 11 ( 28 ) Distributions to noncontrolling interests ( 21 ) — — — — ( 19 ) ( 19 ) Contributions from noncontrolling interests — — — — — 1 1 Purchases of subsidiary shares from noncontrolling ( 6 ) — 5 — — — 5 Noncontrolling interest in acquired entity 7 — — — — — — Adjustment to redemption value of redeemable 14 — ( 14 ) — — — ( 14 ) Share-based compensation — — 4 — — — 4 Balance, June 30, 2023 $ 583 $ 1 $ 2,049 $ ( 19 ) $ ( 3,520 ) $ 86 $ ( 1,403 ) |
Schedule of Impact of Noncontrolling Interest to Stockholders' Deficit | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Net loss attributable to Community Health Systems, $ ( 13 ) $ ( 38 ) $ ( 55 ) $ ( 89 ) Transfers to the noncontrolling interests: Net increase in Community Health Systems, 3 5 3 5 Net transfers to the noncontrolling interests 3 5 3 5 Change to Community Health Systems, Inc. stockholders’ $ ( 10 ) $ ( 33 ) $ ( 52 ) $ ( 84 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Denominator for Computation of Basic and Diluted Earnings Per Share | The following table sets forth the components of the denominator for the computation of basic and diluted earnings per share for net loss attributable to Community Health Systems, Inc. stockholders: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Weighted-average number of shares outstanding — basic 132,344,504 130,659,672 131,808,274 130,176,976 Effect of dilutive securities: Restricted stock awards — — — — Employee stock options — — — — Other equity-based awards — — — — Weighted-average number of shares outstanding — diluted 132,344,504 130,659,672 131,808,274 130,176,976 |
Schedule of Antidilutive Securities | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Dilutive securities outstanding not included in the computation Employee stock options and restricted stock awards 5,771,995 7,191,908 5,786,164 6,540,493 |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Reconciliation of the Beginning and Ending Liability Balances in Connection with Probable Contingencies | The table below presents a reconciliation of the beginning and ending liability balances (in millions) during the six months ended June 30, 2024, with respect to the Company’s determination of the contingencies of the Company in respect of which an accrual has been recorded. The liability as of June 30, 2024 is comprised of individually insignificant amounts for various matters. Summary of Recorded Amounts Probable Contingencies Balance as of December 31, 2023 $ 7 Expense — Reserve for insured claim 9 Cash payments ( 2 ) Balance as of June 30, 2024 $ 14 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) Hospital | Dec. 31, 2023 USD ($) | Dec. 31, 2022 | |
Cost of Revenue, Policy [Abstract] | ||||||
Corporate Office Costs | $ 75 | $ 65 | $ 156 | $ 126 | ||
Third Party Reimbursement [Abstract] | ||||||
Amounts due to third party payors | 92 | 92 | $ 97 | |||
Amounts due from third party payors | 109 | 109 | $ 130 | |||
Net Operating Revenues, Policy [Abstract] | ||||||
Charity care services charges excluded from net operating revenues | 287 | 320 | 603 | 646 | ||
Value of charity care services at the Company's standard charges included in contractual allowances | $ 29 | $ 34 | 59 | $ 72 | ||
Accounting for the Impairment or Disposal of Long-Lived Assets | ||||||
Number of hospitals sold | Hospital | 2 | |||||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |||||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |||||
Hospitals Sold or Deemed Held for Sale | ||||||
Accounting for the Impairment or Disposal of Long-Lived Assets | ||||||
Gain (loss) on disposition of business | $ 35 | |||||
Gain Loss On Sales Of Assets And Asset Impairment Charges Gross | 62 | |||||
Impairment of amount related to several assets idled disposed or held for sale | $ 27 | |||||
Amount related to several assets idled disposed or held for sale | 5 | |||||
Adjustment for Carrying Value of Other Long-Lived Assets at Underperforming Hospitals | ||||||
Accounting for the Impairment or Disposal of Long-Lived Assets | ||||||
Amount related to several assets idled disposed or held for sale | 22 | |||||
Shared Service Center | ||||||
Accounting for the Impairment or Disposal of Long-Lived Assets | ||||||
Gain (loss) on disposition of business | $ 130 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Schedule of Net Operating Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net operating revenues | $ 3,140 | $ 3,115 | $ 6,279 | $ 6,223 |
Medicare | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net operating revenues | 563 | 628 | 1,159 | 1,276 |
Medicare Managed Care | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net operating revenues | 560 | 522 | 1,139 | 1,065 |
Medicaid | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net operating revenues | 465 | 449 | 906 | 872 |
Managed Care and Other Third Party Payors | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net operating revenues | 1,501 | 1,492 | 2,980 | 2,962 |
Self-Pay | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Net operating revenues | $ 51 | $ 24 | $ 95 | $ 48 |
Accounting for Stock-Based Co_3
Accounting for Stock-Based Compensation - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 01, 2024 USD ($) shares | Mar. 01, 2024 USD ($) Director shares | Mar. 01, 2023 USD ($) Director shares | Jun. 30, 2024 USD ($) $ / shares shares | Mar. 31, 2024 shares | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) Item $ / shares shares | Jun. 30, 2023 USD ($) Item $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee service share-based compensation, unrecognized compensation costs on nonvested awards | $ | $ 28,000,000 | $ 28,000,000 | ||||||
Employee service share-based compensation total compensation cost not yet recognized, period for recognition | 23 months | |||||||
Employee service share-based compensation, nonvested awards, modifications to awards | Item | 0 | 0 | ||||||
Exercised, Shares | 0 | 0 | ||||||
Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Aggregate intrinsic value of options exercised | $ | $ 1,000,000 | $ 1,000,000 | ||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee service share-based compensation total compensation cost not yet recognized, period for recognition | 21 months | |||||||
Employee service share-based compensation, unrecognized compensation costs on nonvested stock options | $ | $ 5,000,000 | $ 5,000,000 | ||||||
Granted, Shares | 901,000 | |||||||
Weighted-average grant date fair value of stock options | $ / shares | $ 2.19 | $ 4.61 | ||||||
Share Price | $ / shares | $ 3.36 | $ 3.36 | ||||||
Restricted Stock and RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee service share-based compensation total compensation cost not yet recognized, period for recognition | 23 months | |||||||
Employee service share-based compensation, unrecognized compensation costs on nonvested awards other than options | $ | $ 23 | $ 23 | ||||||
Restricted Stock, Performance-Based Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement by payment award, performance objective measurement period | 3 years | |||||||
Restricted Stock Units (RSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation, number of grants | 62,718 | 844,950 | ||||||
Number of directors elected to defer the receipt of RSUs granted | Director | 5 | 4 | ||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement award vesting rights | one-third increments on each of the first three anniversaries of the award date | |||||||
Share-based compensation, number of grants | 4,000 | 2,842,000 | ||||||
Plan 2009 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement award vesting rights | one-third increments on each of the first three anniversaries of the option grant date | |||||||
Contractual term of option granted | 10 years | |||||||
Unissued common stock reserved for grants | 3,835,513 | 3,835,513 | ||||||
Plan 2009 | Restricted Stock Units (RSUs) | Non-management Directors | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation, number of grants | 62,718 | 29,268 | ||||||
Fair value of units granted | $ | $ 180,000 | $ 180,000 | ||||||
Plan 2009 | Restricted Stock Units (RSUs) | New Non-Management Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation, number of grants | 62,718 | |||||||
Fair value of units granted | $ | $ 248,000 | |||||||
Plan 2009 | Restricted Stock Units (RSUs) | Board Of Directors Chairman | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation, number of grants | 92,334 | 43,089 | ||||||
Fair value of units granted | $ | $ 265,000 | $ 265,000 | ||||||
Performance-Based Awards Granted On March 1, 2018 | Restricted Stock, Performance-Based Units | Chief Executive Officer and Chief Financial Officer | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement award vesting rights, percentage | 80% | |||||||
Performance-Based Awards Granted On March 1, 2018 | Restricted Stock, Performance-Based Units | Other Senior Executives | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement award vesting rights, percentage | 100% |
Accounting for Stock-Based Co_4
Accounting for Stock-Based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Effect on income before income taxes | $ (2) | $ (4) | $ (8) | $ (10) |
Effect on net income (loss) | $ (2) | $ (3) | $ (6) | $ (8) |
Accounting for Stock-Based Co_5
Accounting for Stock-Based Compensation - Schedule of Share-based Payment Awards, Stock Options, Valuation Assumptions (Details) - Employee Stock Option | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 90.10% | 87.30% |
Expected term | 6 years | 6 years |
Risk-free interest rate | 4.30% | 4.20% |
Accounting for Stock-Based Co_6
Accounting for Stock-Based Compensation - Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercised, Shares | 0 | 0 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance, Shares | 4,504,750 | 3,630,750 | 3,630,750 |
Granted, Shares | 901,000 | ||
Forfeited and cancelled, Shares | (14,000) | (27,000) | |
Ending Balance, Shares | 4,490,750 | 4,504,750 | 4,490,750 |
Exercisable, Shares | 2,793,739 | 2,793,739 | |
Beginning of Period, Weighted Average Exercise Price | $ 6.24 | $ 7.07 | $ 7.07 |
Granted, Weighted Average Exercise Price | 2.87 | ||
Forfeited and Cancelled, Weighted Average Exercise Price | 4.99 | 4.96 | |
End of Period, Weighted Average Exercise Price | 6.24 | $ 6.24 | 6.24 |
Exercisable, Weighted Average Exercise Price | $ 6.99 | $ 6.99 | |
Weighted Average Remaining Contractual Term | 7 years 4 months 24 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 6 years 4 months 24 days |
Accounting for Stock-Based Co_7
Accounting for Stock-Based Compensation - Schedule of Share-based Compensation, Restricted Stock, Activity (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, Unvested Shares | 6,637,255 | 6,053,823 |
Granted, Shares | 4,000 | 2,842,000 |
Vested, Shares | (44,335) | (2,111,567) |
Forfeited, Shares | (5,334) | (147,001) |
Ending Balance, Unvested Shares | 6,591,586 | 6,637,255 |
Beginning of Period, Weighted Average Grant Date Fair Value | $ 5.65 | $ 8 |
Granted, Weighted Average Grant Date Fair Value | 3.78 | 2.87 |
Vested, Weighted Average Grant Date Fair Value | 6.63 | 8.47 |
Forfeited, Weighted Average Grant Date Fair Value | 5.22 | 8.34 |
End of Period, Weighted Average Grant Date Fair Value | $ 6.64 | $ 5.65 |
Accounting for Stock-Based Co_8
Accounting for Stock-Based Compensation - Schedule of Share-based Compensation, Restricted Stock Units, Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | |
Jun. 30, 2024 | Mar. 31, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, Unvested Shares | 1,491,492 | 775,926 |
Granted, Shares | 62,718 | 844,950 |
Vested, Shares | (5,894) | (129,384) |
Ending Balance, Unvested Shares | 1,548,316 | 1,491,492 |
Beginning of Period, Weighted Average Grant Date Fair Value | $ 4.52 | $ 6.86 |
Granted, Weighted Average Grant Date Fair Value | 3.96 | 2.87 |
Vested, Weighted Average Grant Date Fair Value | 5 | 7.78 |
End of Period, Weighted Average Grant Date Fair Value | $ 4.49 | $ 4.52 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Physician Practices Clinics and Other Ancillary Businesses | |
Acquisitions and Divestitures [Line Items] | |
Business acquisition, cost of acquired entity, purchase price | $ 1 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of Divestitures (Details) | 6 Months Ended |
Jun. 30, 2024 Item | |
Greenbrier Valley Medical Center | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of licensed beds | 122 |
Effective Date | Jan. 01, 2023 |
Plateau Medical Center | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of licensed beds | 25 |
Effective Date | Apr. 01, 2023 |
Medical Center of South Arkansas | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of licensed beds | 166 |
Effective Date | Jul. 01, 2023 |
Lutheran Rehabilitation Hospital | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of licensed beds | 36 |
Effective Date | Sep. 01, 2023 |
AllianceHealth Ponca City | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of licensed beds | 140 |
Effective Date | Nov. 01, 2023 |
AllianceHealth Woodward | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of licensed beds | 87 |
Effective Date | Nov. 01, 2023 |
Bravera Health Brooksville | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of licensed beds | 120 |
Effective Date | Dec. 01, 2023 |
Bravera Health Spring Hill | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of licensed beds | 124 |
Effective Date | Dec. 01, 2023 |
Bravera Health Seven Rivers | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of licensed beds | 128 |
Effective Date | Dec. 01, 2023 |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Divestitures - Additional Information (Details) - Item | Apr. 18, 2024 | Feb. 28, 2023 |
Greenbrier Valley Medical Center | Mooresville, North Carolina | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of licensed beds | 123 | |
Davis Regional Medical Center | Statesville, North Carolina | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of licensed beds | 144 | |
Tennova Healthcare Cleveland | Cleveland, Tennessee | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of licensed beds | 351 |
Acquisitions and Divestitures_4
Acquisitions and Divestitures - Schedule of Balance Sheet Items Classified as Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Acquisitions Divestitures And Closures [Abstract] | ||
Other current assets | $ 7 | $ 6 |
Other assets, net | 185 | 218 |
Accrued liabilities | $ (8) | $ (13) |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 6,786 | $ 6,772 |
Accumulated impairment losses | (2,814) | (2,814) |
Goodwill | 3,972 | $ 3,958 |
Goodwill allocated to hospitals divested or held-for-sale | $ 14 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of goodwill | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Taxes [Line Items] | ||||
Amount of interest and penalties included in liabilities for uncertain tax positions | $ 3 | $ 3 | ||
Provision for income taxes | $ 24 | $ 38 | $ 52 | $ 65 |
Effective income tax rate | 48% | 95% | 72.20% | 138.30% |
Income tax refunds (payments), net | $ (84) | $ (37) | $ (84) | $ (37) |
Federal | Tax Year 2018 | ||||
Income Taxes [Line Items] | ||||
Open tax year | 2018 | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
Unrecognized benefit that would affect the effective tax rate | $ 46 | $ 46 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 05, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | |||
Debt and lease obligations | $ 11,531 | $ 11,487 | |
Less: Unamortized deferred debt issuance costs | (303) | (338) | |
Less: Current maturities | (27) | (21) | |
Total long-term debt | 11,504 | 11,466 | |
ABL Facility | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 273 | 247 | |
Senior Notes | Senior Notes at 6.875%, Due 2028 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 626 | 756 | |
Senior Secured Notes | Senior Secured Notes at 8%, Due 2026 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 0 | 1,116 | |
Senior Secured Notes | Senior Secured Notes at 8%, Due 2027 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 700 | 700 | |
Senior Secured Notes | Senior Secured Notes at 5.625% due 2027 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 1,900 | 1,900 | |
Senior Secured Notes | Senior Secured Notes at 6%, Due 2029 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 644 | 644 | |
Senior Secured Notes | Senior Secured Notes 5.250%, Due 2030 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 1,535 | 1,535 | |
Senior Secured Notes | Senior Secured Notes at 4.75%, Due 2031 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 1,058 | 1,058 | |
Senior Secured Notes | Senior Secured Notes at 10.875%, Due 2032 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 2,225 | $ 2,225 | 1,000 |
Junior-Priority Secured Notes | Junior-Priority Secured Notes at 6.875%, Due 2029 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 1,244 | 1,244 | |
Junior-Priority Secured Notes | Junior-Priority Secured Notes at 6.125%, Due 2030 | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 1,227 | 1,227 | |
Finance Lease and Financing Obligations | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | 369 | 366 | |
Other | |||
Debt Instrument [Line Items] | |||
Debt and lease obligations | $ 33 | $ 32 |
Long-Term Debt - Schedule of _2
Long-Term Debt - Schedule of Debt (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Senior Secured Notes | Senior Secured Notes at 8%, Due 2026 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 8% | 8% |
Debt instrument, maturity year | 2026 | 2026 |
Senior Secured Notes | Senior Secured Notes at 8%, Due 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 8% | 8% |
Debt instrument, maturity year | 2027 | 2027 |
Senior Secured Notes | Senior Secured Notes at 5.625% due 2027 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.625% | 5.625% |
Debt instrument, maturity year | 2027 | 2027 |
Senior Secured Notes | Senior Secured Notes 5.250%, Due 2030 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.25% | 5.25% |
Debt instrument, maturity year | 2030 | 2030 |
Senior Secured Notes | Senior Notes at 6.875%, Due 2028 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.875% | |
Debt instrument, maturity year | 2028 | |
Senior Secured Notes | Senior Secured Notes at 4.75%, Due 2031 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.75% | 4.75% |
Debt instrument, maturity year | 2031 | 2031 |
Senior Secured Notes | Senior Secured Notes at 10.875%, Due 2032 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 10.875% | 10.875% |
Debt instrument, maturity year | 2032 | 2032 |
Senior Secured Notes | Senior Secured Notes at 6%, Due 2029 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6% | 6% |
Debt instrument, maturity year | 2029 | 2029 |
Senior Notes | Senior Notes at 6.875%, Due 2028 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.875% | 6.875% |
Debt instrument, maturity year | 2028 | 2028 |
Junior-Priority Secured Notes | Junior-Priority Secured Notes at 6.875%, Due 2029 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.875% | 6.875% |
Debt instrument, maturity year | 2029 | 2029 |
Junior-Priority Secured Notes | Junior-Priority Secured Notes at 6.125%, Due 2030 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.125% | 6.125% |
Debt instrument, maturity year | 2030 | 2030 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 05, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||||||
Debt and lease obligations | $ 11,531,000,000 | $ 11,531,000,000 | $ 11,487,000,000 | |||
Pre-tax gain from early extinguishment of debt | 26,000,000 | 26,000,000 | ||||
Interest paid on borrowings | 211,000,000 | $ 188,000,000 | 360,000,000 | $ 385,000,000 | ||
Asset Based Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt and lease obligations | 273,000,000 | 273,000,000 | 247,000,000 | |||
Line of credit facility, excess availability | 599,000,000 | 599,000,000 | ||||
Line of credit outstanding amount | 273,000,000 | 273,000,000 | ||||
Asset Based Loan Facility | ABL Facility Customary Covenants | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 95,000,000 | $ 95,000,000 | ||||
Debt instrument variable interest rate | 10% | |||||
Asset Based Loan Facility | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding amount | 67,000,000 | $ 67,000,000 | ||||
Letters of credit reduced during period | 14,000,000 | |||||
Senior Secured Notes at 10.875%, Due 2032 | Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 10.875% | |||||
Debt instrument, maturity year | 2032 | |||||
Debt intrument, issuance price | 102% | |||||
Accrued and unpaid interest, amount | $ 60,000,000 | |||||
Debt and lease obligations | 2,225,000,000 | $ 2,225,000,000 | $ 2,225,000,000 | $ 1,000,000,000 | ||
Line of credit facility, maximum borrowing capacity | 1,225,000,000 | |||||
Senior Secured Notes at 8%, Due 2026 | Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 8% | 8% | 8% | |||
Debt instrument, maturity year | 2026 | 2026 | ||||
Debt and lease obligations | $ 0 | $ 0 | $ 1,116,000,000 | |||
Debt redeemed | 1,116,000,000 | |||||
Senior Notes at 6.875% Due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Pre-tax gain from early extinguishment of debt | $ 32,000,000 | |||||
Senior Notes at 6.875% Due 2028 | Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 6.875% | 6.875% | ||||
Debt instrument, maturity year | 2028 | |||||
Debt redeemed | $ 130,000,000 | |||||
Senior Secured Notes at 10.875%, Due 2032 | ||||||
Debt Instrument [Line Items] | ||||||
Pre-tax gain from early extinguishment of debt | $ 26,000,000 | 26,000,000 | ||||
After-tax gain (loss) from extinguishment of debt | $ 27,000,000 | $ 27,000,000 | ||||
Senior Secured Notes at 10.875%, Due 2032 | Senior Secured Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 10.875% | 10.875% | 10.875% | |||
Debt instrument, maturity year | 2032 | 2032 | ||||
Proceeds from debt | $ 98,000,000 | |||||
Second Amendment and Restatement Agreement to Amended and Restated Asset-Based Loan Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | 1,000,000,000 | |||||
Second Amendment and Restatement Agreement to Amended and Restated Asset-Based Loan Credit Agreement | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Estimated Fair Value of Financial Instruments, by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Carrying Amount | ||
Assets: | ||
Cash and cash equivalents | $ 39 | $ 38 |
Investments in equity securities | 64 | 69 |
Available-for-sale debt securities | 178 | 182 |
Trading securities | 5 | 5 |
Carrying Amount | Senior Secured Notes | Senior Secured Notes at 8%, Due 2026 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 0 | 1,109 |
Carrying Amount | Senior Secured Notes | Senior Secured Notes at 8%, Due 2027 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 695 | 695 |
Carrying Amount | Senior Secured Notes | Senior Notes at 6% Due 2029 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 624 | 622 |
Carrying Amount | Senior Secured Notes | Senior Secured Notes 5.250%, Due 2030 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 1,463 | 1,458 |
Carrying Amount | Senior Secured Notes | Senior Secured Notes at 4.750% due 2031 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 1,054 | 1,054 |
Carrying Amount | Senior Secured Notes | Senior Secured Notes at 10.875%, Due 2032 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 2,211 | 982 |
Carrying Amount | Senior Secured Notes | Senior Secured Notes at 5.625% due 2027 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 1,855 | 1,847 |
Carrying Amount | Senior Notes | Senior Notes at 6.875% Due 2028 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 622 | 750 |
Carrying Amount | Junior-Priority Secured Notes | Junior-Priority Secured Notes at 6.875% Due 2029 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 1,168 | 1,162 |
Carrying Amount | Junior-Priority Secured Notes | Junior-Priority Secured Notes at 6.125% Due 2030 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 1,170 | 1,167 |
Carrying Amount | ABL Facility and Other Debt | ||
Liabilities: | ||
Notes payable, fair value disclosure | 300 | 275 |
Estimated Fair Value | ||
Assets: | ||
Cash and cash equivalents | 39 | 38 |
Investments in equity securities | 64 | 69 |
Available-for-sale debt securities | 178 | 182 |
Trading securities | 5 | 5 |
Estimated Fair Value | Senior Secured Notes | Senior Secured Notes at 8%, Due 2026 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 0 | 1,114 |
Estimated Fair Value | Senior Secured Notes | Senior Secured Notes at 8%, Due 2027 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 695 | 679 |
Estimated Fair Value | Senior Secured Notes | Senior Notes at 6% Due 2029 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 567 | 580 |
Estimated Fair Value | Senior Secured Notes | Senior Secured Notes 5.250%, Due 2030 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 1,269 | 1,287 |
Estimated Fair Value | Senior Secured Notes | Senior Secured Notes at 4.750% due 2031 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 829 | 834 |
Estimated Fair Value | Senior Secured Notes | Senior Secured Notes at 10.875%, Due 2032 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 2,316 | 1,047 |
Estimated Fair Value | Senior Secured Notes | Senior Secured Notes at 5.625% due 2027 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 1,769 | 1,767 |
Estimated Fair Value | Senior Notes | Senior Notes at 6.875% Due 2028 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 458 | 470 |
Estimated Fair Value | Junior-Priority Secured Notes | Junior-Priority Secured Notes at 6.875% Due 2029 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 954 | 812 |
Estimated Fair Value | Junior-Priority Secured Notes | Junior-Priority Secured Notes at 6.125% Due 2030 | ||
Liabilities: | ||
Notes payable, fair value disclosure | 858 | 781 |
Estimated Fair Value | ABL Facility and Other Debt | ||
Liabilities: | ||
Notes payable, fair value disclosure | $ 300 | $ 275 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Fair Value Disclosures [Abstract] | ||
Fair value, assets, level 1 to level 2 transfers, amount | $ 0 | $ 0 |
Fair value, assets, level 2 to level 1 transfers, amount | 0 | 0 |
Fair value, liabilities, level 1 to level 2 transfers, amount | 0 | 0 |
Fair value, liabilities, level 2 to level 1 transfers, amount | $ 0 | $ 0 |
Fair Value - Schedule of Fair V
Fair Value - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in equity securities | $ 64 | $ 69 |
Available-for-sale debt securities | 178 | 182 |
Trading securities | 5 | 5 |
Total assets | 247 | 256 |
Fair Value, Inputs, Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investments in equity securities | 64 | 69 |
Total assets | 64 | 69 |
Fair Value, Inputs, Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 178 | 182 |
Trading securities | 5 | 5 |
Total assets | $ 183 | $ 187 |
Leases - Components of Lease Co
Leases - Components of Lease Cost and Rent Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||||
Operating lease cost | $ 46 | $ 53 | $ 94 | $ 108 |
Short-term rent expense | 22 | 22 | 45 | 44 |
Variable lease cost | 6 | 6 | 14 | 12 |
Sublease income | (1) | (1) | (2) | (3) |
Total operating lease cost | 73 | 80 | 151 | 161 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 3 | 3 | 5 | 6 |
Interest on finance lease liabilities | 3 | 3 | 7 | 7 |
Total finance lease cost | $ 6 | $ 6 | $ 12 | $ 13 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Operating Leases: | ||
Operating lease right-of-use assets | $ 634 | $ 665 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Finance Leases: | ||
Property and equipment | $ 9,594 | $ 9,511 |
Less accumulated depreciation and amortization | (4,372) | (4,304) |
Property and equipment, net | 5,222 | 5,207 |
Current finance lease liabilities | $ 2 | $ 2 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current maturities of long-term debt | Current maturities of long-term debt |
Long-term finance lease liabilities | $ 216 | $ 214 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt |
Finance Lease ROU Assets | ||
Finance Leases: | ||
Property and equipment | $ 257 | $ 256 |
Less accumulated depreciation and amortization | (57) | (55) |
Property and equipment, net | 200 | 201 |
Finance Lease ROU Assets | Building and Improvements | ||
Finance Leases: | ||
Property and equipment | 248 | 246 |
Finance Lease ROU Assets | Equipment and Fixtures | ||
Finance Leases: | ||
Property and equipment | $ 9 | $ 10 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow and Other Information Related to Leases (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | $ 91 | $ 103 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases | 7 | 7 |
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases | 2 | 2 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 3 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 32 | $ 49 |
Stockholders' Deficit - Additio
Stockholders' Deficit - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Equity [Abstract] | ||
Capital stock, shares authorized | 400,000,000 | |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares outstanding | 0 | |
Amount available for dividend payments, stock repurchases at period end | $ 300 |
Stockholders' Deficit - Schedul
Stockholders' Deficit - Schedule of Stockholders' Deficit (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Equity, beginning balance | $ (1,207) | $ (1,147) | $ (1,352) | $ (1,275) |
Redeemable Noncontrolling Interests, beginning balance | 323 | |||
Comprehensive income (loss) | 14 | (24) | (28) | (37) |
Distributions to noncontrolling interests | (20) | (33) | (19) | (11) |
Purchases of subsidiary shares from noncontrolling interests | (2) | 5 | ||
Contributions from noncontrolling interests | 1 | 1 | ||
Other reclassifications of noncontrolling interests | 12 | (10) | ||
Adjustment to redemption value of redeemable noncontrolling interests | (2) | 3 | (14) | (32) |
Cancellation of restricted stock for tax withholdings on vested shares | (2) | (4) | ||
Share-based compensation | 2 | 6 | 4 | 6 |
Equity, ending balance | (1,203) | (1,207) | (1,403) | (1,352) |
Redeemable Noncontrolling Interests, ending balance | 324 | |||
Redeemable Noncontrolling Interests (Non- Equity) | ||||
Redeemable Noncontrolling Interests, beginning balance | 329 | 323 | 561 | 541 |
Comprehensive income (loss) | 15 | 16 | 28 | 21 |
Distributions to noncontrolling interests | (21) | |||
Distributions to redeemable noncontrolling interests | (14) | (17) | (33) | |
Purchases of subsidiary shares from noncontrolling interests | 1 | (6) | (1) | |
Contributions from noncontrolling interests | 1 | |||
Other reclassifications of redeemable noncontrolling interests | (9) | 10 | ||
Noncontrolling interest in acquired entity | 7 | |||
Adjustment to redemption value of redeemable noncontrolling interests | 2 | (3) | 14 | 32 |
Redeemable Noncontrolling Interests, ending balance | 324 | 329 | 583 | 561 |
Common Stock | ||||
Equity, beginning balance | 1 | 1 | 1 | 1 |
Equity, ending balance | 1 | 1 | 1 | 1 |
Additional Paid-in Capital | ||||
Equity, beginning balance | 2,192 | 2,185 | 2,054 | 2,084 |
Purchases of subsidiary shares from noncontrolling interests | (2) | 5 | ||
Adjustment to redemption value of redeemable noncontrolling interests | (2) | 3 | (14) | (32) |
Cancellation of restricted stock for tax withholdings on vested shares | (2) | (4) | ||
Share-based compensation | 2 | 6 | 4 | 6 |
Equity, ending balance | 2,190 | 2,192 | 2,049 | 2,054 |
Accumulated Other Comprehensive Loss (Income) | ||||
Equity, beginning balance | (16) | (14) | (18) | (21) |
Comprehensive income (loss) | 3 | (2) | (1) | 3 |
Equity, ending balance | (13) | (16) | (19) | (18) |
Accumulated Deficit | ||||
Equity, beginning balance | (3,605) | (3,564) | (3,482) | (3,431) |
Comprehensive income (loss) | (14) | (41) | (38) | (51) |
Equity, ending balance | (3,619) | (3,605) | (3,520) | (3,482) |
Noncontrolling Interest | ||||
Equity, beginning balance | 221 | 245 | 93 | 92 |
Comprehensive income (loss) | 25 | 19 | 11 | 11 |
Distributions to noncontrolling interests | (20) | (33) | (19) | (11) |
Contributions from noncontrolling interests | 1 | 1 | ||
Other reclassifications of noncontrolling interests | 12 | (10) | ||
Equity, ending balance | $ 238 | $ 221 | $ 86 | $ 93 |
Stockholders' Deficit - Sched_2
Stockholders' Deficit - Schedule of Impact of Noncontrolling Interest to Stockholders' Deficit (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Equity [Abstract] | ||||
Net loss attributable to Community Health Systems, Inc. stockholders | $ (13) | $ (38) | $ (55) | $ (89) |
Net increase in Community Health Systems, Inc. paid-in-capital for purchase of subsidiary partnership interests | 3 | 5 | 3 | 5 |
Net transfers to the noncontrolling interests | 3 | 5 | 3 | 5 |
Change to Community Health Systems, Inc. stockholders' deficit from net loss attributable to Community Health Systems, Inc. stockholders and transfers to noncontrolling interests | $ (10) | $ (33) | $ (52) | $ (84) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Components of Denominator for Computation of Basic and Diluted Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Effect of dilutive securities: | ||||
Weighted-average number of shares outstanding — basic | 132,344,504 | 130,659,672 | 131,808,274 | 130,176,976 |
Weighted-average number of shares outstanding — diluted | 132,344,504 | 130,659,672 | 131,808,274 | 130,176,976 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Increase in number of shares to diluted shares calculation if income would have been generated | 864,816 | 202,182 | 654,307 | 335,188 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Employee stock options and restricted stock awards excluded from computation of earnings per share amount | 5,771,995 | 7,191,908 | 5,786,164 | 6,540,493 |
Contingencies - Schedule of Rec
Contingencies - Schedule of Reconciliation of the Beginning and Ending Liability Balances in Connection with Probable Contingencies (Details) - Pending Litigation [Member] - Other Probable Contingencies [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Loss Contingency Accrual [Roll Forward] | |
Beginning Balance | $ 7 |
Reserve for insured claim | 9 |
Cash payments | (2) |
Ending Balance | $ 14 |