Community Health Systems (CYH) 8-K Community Health Systems Announces Plans to

Proposed Spin-Off of Quorum Health Corporation

August 2015

Exhibit 99.2

Forward-Looking Statements

2

Certain statements contained in this presentation may constitute “forward-looking statements” within the meaning of

the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements

regarding the expected timing of the completion of the spin-off transaction, the benefits of the spin-off transaction, the

tax-free treatment of the spin-off transaction, the anticipated management of the business to be spun off, the market

position of the business to be spun off and other statements that are not historical facts. Such statements are based

on the views and assumptions of the management of the Community Health Systems, (“Company”) and are subject

to significant risks and uncertainties. There can be no assurance that the proposed transaction or these future events

will occur as anticipated, if at all, or that actual results will be as expected. Actual future events or results may differ

materially from these statements. Such differences may result from a number of factors, including but not limited to:

the timing and completion of the proposed transaction; a failure to obtain necessary regulatory approvals; a failure to

obtain assurances of anticipated tax treatment; a deterioration in the business or prospects of the Company or

Quorum Health Corporation, (“Quorum Health”); adverse developments in the Company or Quorum Health’s markets;

adverse developments in the U.S. or global capital markets, credit markets or economies generally; the risk that the

benefits of the proposed transaction may not be fully realized or may take longer to realize than expected; the impact

of the proposed transaction on  the Company’s third-party relationships; the Company’s ability following completion of

the spin-off to identify and acquire additional hospitals in larger and more urbanized markets with terms that are

attractive to the Company and to integrate such acquired hospitals; and changes in regulatory, social and political

conditions. Additional risks and factors that may affect results are set forth in the Company’s filings with the Securities

and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K.

The forward-looking statements speak only as of the date of this communication. The Company does not undertake

any obligation to update these statements.

Spin-Off Transaction Overview

3

Spinning off a group of 38 hospitals and Quorum Health Resources, a

leading hospital management and consulting business (collectively,

“Quorum Health”)

2014 Revenue of $2.1 billion

(1)

2014 Adjusted EBITDA of ~$255 million

(1)

Transaction intended to qualify as a tax-free distribution to CHS and its

stockholders

Spin-off expected to be in first quarter of 2016

Proposed

Transaction

Rationale

CHS has evolved from a collection of smaller hospitals into a much more

complex and diversified portfolio of hospitals and healthcare systems

These 38 hospitals and Quorum Health Resources face different challenges

and distinct opportunities

Realign portfolio to reduce complexity and create two strong companies

that can respond to market demand with greater flexibility

(1) 

Financials are unaudited and adjusted EBITDA excludes certain non-recurring items.

Creates Two Focused Companies

Executing Two Distinct Business Strategies

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Benefits to CHS

Enhance focus on larger markets

Invest in and further strengthen

regional healthcare networks

Improve EBITDA margins

Focus on cities and counties with

populations of 50,000 or less

Streamline management structure

Direct access to capital and resources

Optimize growth opportunities that

might otherwise be lost

Benefits to Quorum Health

Provides CHS stockholders’ ownership in two focused hospital companies

Precedents suggest potential for value creation

Las Vegas, NM

Monroe, GA

Watsonville, CA

Helena, AR

Quorum Health’s Two Complementary Businesses

5

Hospital Operations

Quorum Health Resources

38 Hospitals; 16 states; 3,635 licensed beds

Sole hospital provider in 84% of markets

74% of hospitals named Top Performers on Key

Quality Measures by the Joint Commission

7 states with $100m or more in revenue

Owns 32 of 38 hospitals

Provides management and consulting services

to 150 non-affiliated hospitals

A leader in hospital management services

One of the leading healthcare consulting firms

Opportunity to capitalize on knowledge base, best practices and identify

acquisition candidates

Quorum Health

(1) 

Financials are unaudited and adjusted EBITDA excludes certain non-recurring items.

2014 Revenue

$2.1 billion

(1)

2014 Adj. EBITDA

~$255

million

(1)

Managed hospitals located in similar markets

as the group of 38 hospitals

Attractive, Geographically Diversified Portfolio

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Williamston

Jackson

Louisa

Paintsville

Sunbury

Lock Haven

Massillon

Hamlet

Lexington

Monroe

Winder

Centre

Blue Ridge

Ft. Payne

McKenzie

Augusta

Anna

Marion

Mt. Vernon

Red Bud

Granite City

Waukegan (2)

Blue Island

Helena

Galesburg

Forrest City

Greenville

Alpine

Big Spring

Barstow

Watsonville

Deming

Las Vegas

Mesquite

Springfield

Tooele

Evanston

Quorum Health’s hospitals are typically located in cities and counties with

populations of 50,000 or less

38 Hospitals across 16 states with 3,635 licensed beds

Poised for Success

7

Strong

Market

Presence

–

sole

hospital

provider

in

84%

of

markets

Geographically

diversified

–

38

hospitals

across

16

states

Emphasis

on

Quality

of

Care

–

28

hospitals

(74%)

named

Top

Performers

on Key Quality Measures by Joint Commission 

Well

Positioned

Portfolio

Compelling

Growth

Strategy

Attractive

Financial

Profile

Develop facility-specific operating and marketing strategies aligned with

community needs

Expand service lines

Lower overhead costs and improve operating efficiency

Acquire similarly situated community hospitals and leverage resources

and relationships

Creates an independent company with access to capital and equity currency

Opportunity to drive revenue growth and margin expansion

ACA expansion; 9 of 16 states (78% of revenues) have expanded Medicaid

Coverage

Experienced Leadership Team

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Independent executive management team dedicated to

Quorum Health

Executive management will consist of current CHS

executives with experience and knowledge of the

industry, markets and facilities

These executives, along with other executives, will be

named when the Form-10 is filed

Transitional services from CHS to include information

technology, billing and collections, and payroll services

Management

Independent Board of Directors being identified

Committed to best practices in corporate

governance

and building on CHS’ legacy

Board of

Directors

Pro Forma CHS Better Positioned to Execute Growth Strategy

9

160 hospitals across 22 states with 27,700 licensed beds

Sole hospital provider in approximately 60% of markets

12 of 22 states generate over $500 million of revenues

Combined, these states contributed 84% of total revenues in 2014

Strong Market

Presence

Focused

Operating

Strategy

Enhance focus on larger markets

Leverage standardized and centralized practices

Invest in high opportunity markets and further strengthen regional

healthcare networks to drive greater profitability

Senior leadership team largely unchanged and committed to growth

CHS will remain as one of the largest publicly traded hospital companies

Attractive

Financial Profile

Improved operating margin and profitability

Cash from new debt raised by Quorum Health will be used to pay down

secured indebtedness

Total leverage remains largely unchanged

Process Overview

10

Quorum Health intends to file initial Form 10 information statement with

the SEC before the end of the third quarter of 2015

Target completion in the first quarter of 2016

Transaction

Timing

Distribution

Process

Conditions

Precedent

Distribution of Quorum Health common shares via a special distribution to

CHS stockholders

Following the distribution, current CHS stockholders will own shares in both

CHS and Quorum Health

Number of CHS shares owned by each stockholder will not change as a result

of this distribution

Spin-off permitted under CHS debt documentation

Declaration by SEC that Quorum Health’s registration statement is effective

Filing and approval of Quorum Health listing by NYSE

Final approval and declaration of the distribution by CHS’ Board of Directors

Receipt of certain regulatory approvals and other customary conditions

Tax

Considerations

Intended to qualify as tax-free

distribution to CHS and stockholders

Quorum Health 2014 tax basis estimated to be $1.27 billion

Appendix

Non-GAAP Financial Measures

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EBITDA is a non-GAAP financial measure which consists of net income attributable to Quorum Health Corporation,

before interest, income taxes, and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude

impairment of long-lived assets, net income attributable to non-controlling interests, and expenses related to legal

settlements and related costs.  Community Health Systems believes that it is useful to present Adjusted EBITDA

because it clarifies for investors Quorum Health Corporation’s portion of EBITDA generated by continuing operations. 

Community Health Systems uses Adjusted EBITDA as a measure of liquidity.  Community Health Systems has also

presented Quorum Health Corporation’s Adjusted EBITDA in this presentation because it believes it provides

investors with additional information about Quorum Health Corporation’s ability to incur and service debt and make

capital expenditures.

Adjusted EBITDA is not a measurement of financial performance or liquidity under U.S. GAAP. It should not be

considered in isolation or as a substitute for net income, operating income, cash flows from operating, investing or

financing activities or any other measure calculated in accordance with U.S. GAAP. The items excluded from

Adjusted EBITDA are significant components in understanding and evaluating financial performance and liquidity.

This calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other

companies.

Because certain terms of the spin-off have not yet been determined, including as to the balance sheet and statement

of cash flows of Quorum Health Corporation, it is not reasonably possible at this time to provide the net income for

Quorum Health Corporation or a reconciliation to the estimated Adjusted EBITDA figures included in this

presentation.  Historical GAAP financial information for Community Health Systems is included in its most recent

Annual Report on Form 10-K filed with the SEC, and historical GAAP financial information for Quorum Health

Corporation will be included in the Form 10 registration statement relating to the spin-off.