Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 25, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | COMMUNITY HEALTH SYSTEMS INC | |
Entity Central Index Key | 1,108,109 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Trading Symbol | CYH | |
Amendment Flag | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 114,758,677 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Loss - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Condensed Consolidated Statements of Loss [Abstract] | |||||
Operating revenues (net of contractual allowances and discounts) | $ 4,823 | $ 5,290 | $ 9,991 | $ 11,044 | |
Provision for bad debts | 679 | 700 | 1,362 | 1,455 | |
Net operating revenues | 4,144 | 4,590 | 8,629 | 9,589 | |
Operating costs and expenses: | |||||
Salaries and benefits | 1,920 | 2,154 | 3,981 | 4,470 | |
Supplies | 697 | 759 | 1,446 | 1,559 | |
Other operating expenses | 1,017 | 1,056 | 2,074 | 2,229 | |
Government and other legal settlements and related costs | 7 | (34) | 1 | ||
Electronic health records incentive reimbursement | (17) | (31) | (23) | (49) | |
Rent | 104 | 112 | 214 | 231 | |
Depreciation and amortization | 223 | 276 | 458 | 574 | |
Impairment and (gain) loss on sale of businesses, net | 80 | 1,639 | 330 | 1,656 | |
Total operating costs and expenses | 4,031 | 5,965 | 8,446 | 10,671 | |
Income (loss) from operations | 113 | (1,375) | 183 | (1,082) | |
Interest expense, net | 239 | 246 | 468 | 496 | |
Loss from early extinguishment of debt | 10 | 30 | 31 | 30 | |
Gain on sale of investments in unconsolidated affiliates | (94) | (94) | |||
Equity in earnings of unconsolidated affiliates | (5) | (14) | (9) | (34) | |
Loss from continuing operations before income taxes | (131) | (1,543) | (307) | (1,480) | |
Benefit from income taxes | (15) | (138) | (15) | (112) | |
Loss from continuing operations | (116) | (1,405) | (292) | (1,368) | |
Discontinued operations, net of taxes: | |||||
Loss from operations of entities sold or held for sale | (1) | (1) | (2) | (2) | |
Impairment of hospitals sold or held for sale | (5) | (5) | (1) | ||
Loss from discontinued operations, net of taxes | (6) | (1) | (7) | (3) | |
Net loss | (122) | (1,406) | (299) | (1,371) | |
Less: Net income attributable to noncontrolling interests | 15 | 26 | 36 | 50 | |
Net loss attributable to Community Health Systems, Inc. stockholders | $ (137) | $ (1,432) | $ (335) | $ (1,421) | |
Basic loss per share attributable to Community Health Systems, Inc. common stockholders: | |||||
Continuing operations | [1] | $ (1.17) | $ (12.90) | $ (2.94) | $ (12.82) |
Discontinued operations | [1] | (0.06) | (0.01) | (0.06) | (0.03) |
Net loss | [1] | (1.22) | (12.91) | (3.01) | (12.85) |
Diluted loss per share attributable to Community Health Systems, Inc. common stockholders: | |||||
Continuing operations | [1] | (1.17) | (12.90) | (2.94) | (12.82) |
Discontinued operations | [1] | (0.06) | (0.01) | (0.06) | (0.03) |
Net loss | [1] | $ (1.22) | $ (12.91) | $ (3.01) | $ (12.85) |
Weighted-average number of shares outstanding: | |||||
Basic | 111,909,858 | 110,879,285 | 111,582,911 | 110,563,576 | |
Diluted | 111,909,858 | 110,879,285 | 111,582,911 | 110,563,576 | |
[1] | Total per share amounts may not add due to rounding |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidated Statements of Comprehensive Loss [Abstract] | ||||
Net loss | $ (122) | $ (1,406) | $ (299) | $ (1,371) |
Other comprehensive income (loss), net of income taxes: | ||||
Net change in fair value of interest rate swaps, net of tax | (2) | (2) | 3 | (21) |
Net change in fair value of available-for-sale securities, net of tax | 2 | (3) | 5 | (1) |
Amortization and recognition of unrecognized pension cost components, net of tax | 1 | 2 | 1 | 3 |
Other comprehensive income (loss) | 1 | (3) | 9 | (19) |
Comprehensive loss | (121) | (1,409) | (290) | (1,390) |
Less: Comprehensive income attributable to noncontrolling interests | 15 | 26 | 36 | 50 |
Comprehensive loss attributable to Community Health Systems, Inc. stockholders | $ (136) | $ (1,435) | $ (326) | $ (1,440) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 768 | $ 238 |
Patient accounts receivable, net of allowance for doubtful accounts of $3,620 and $3,773 at June 30, 2017 and December 31, 2016, respectively | 2,939 | 3,176 |
Supplies | 438 | 480 |
Prepaid income taxes | 22 | 17 |
Prepaid expenses and taxes | 210 | 187 |
Other current assets | 678 | 568 |
Total current assets | 5,055 | 4,666 |
Property and equipment | 11,397 | 12,422 |
Less accumulated depreciation and amortization | (4,085) | (4,273) |
Property and equipment, net | 7,312 | 8,149 |
Goodwill | 6,165 | 6,521 |
Other assets, net | 2,341 | 2,608 |
Total assets | 20,873 | 21,944 |
Current liabilities: | ||
Current maturities of long-term debt | 46 | 455 |
Accounts payable | 917 | 995 |
Accrued interest | 236 | 207 |
Accrued liabilities | 1,179 | 1,230 |
Total current liabilities | 2,378 | 2,887 |
Long-term debt | 14,702 | 14,789 |
Deferred income taxes | 396 | 411 |
Other long-term liabilities | 1,456 | 1,575 |
Total liabilities | 18,932 | 19,662 |
Redeemable noncontrolling interests in equity of consolidated subsidiaries | 548 | 554 |
Community Health Systems, Inc. stockholders' equity: | ||
Preferred stock, $.01 par value per share, 100,000,000 shares authorized; none issued | ||
Common stock, $.01 par value per share, 300,000,000 shares authorized; 114,758,677 shares issued and outstanding at June 30, 2017, and 113,876,580 shares issued and outstanding at December 31, 2016 | 1 | 1 |
Additional paid-in capital | 1,984 | 1,975 |
Accumulated other comprehensive loss | (53) | (62) |
Accumulated deficit | (634) | (299) |
Total Community Health Systems, Inc. stockholders' equity | 1,298 | 1,615 |
Noncontrolling interests in equity of consolidated subsidiaries | 95 | 113 |
Total equity | 1,393 | 1,728 |
Total liabilities and equity | $ 20,873 | $ 21,944 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Allowance for doubtful patient accounts | $ 3,620 | $ 3,773 |
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 | 114,758,677 | 113,876,580 |
Common stock, shares outstanding | 114,758,677 | 113,876,580 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (299) | $ (1,371) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 458 | 574 |
Government and other legal settlements and related costs | 6 | 1 |
Stock-based compensation expense | 15 | 26 |
Impairment of hospitals sold or held for sale | 5 | 1 |
Impairment and (gain) loss on sale of businesses, net | 330 | 1,656 |
Loss from early extinguishment of debt | 31 | 30 |
Gain on sale of investments in unconsolidated affiliates | (94) | |
Other non-cash expenses, net | 18 | 22 |
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||
Patient accounts receivable | 186 | (40) |
Supplies, prepaid expenses and other current assets | (55) | 31 |
Accounts payable, accrued liabilities and income taxes | (126) | (212) |
Other | (66) | 8 |
Net cash provided by operating activities | 503 | 632 |
Cash flows from investing activities: | ||
Acquisitions of facilities and other related equipment | (4) | (114) |
Purchases of property and equipment | (274) | (407) |
Proceeds from disposition of hospitals and other ancillary operations | 921 | 12 |
Proceeds from sale of property and equipment | 3 | 7 |
Purchases of available-for-sale securities | (37) | (63) |
Proceeds from sales of available-for-sale securities | 47 | 233 |
Proceeds from sale of investments in unconsolidated affiliates | 403 | |
Distribution from Quorum Health Corporation | 1,219 | |
Increase in other investments | (60) | (113) |
Net cash provided by investing activities | 596 | 1,177 |
Cash flows from financing activities: | ||
Repurchase of restricted stock shares for payroll tax withholding requirements | (5) | (5) |
Deferred financing costs and other debt-related costs | (62) | (22) |
Proceeds from noncontrolling investors in joint ventures | 5 | |
Redemption of noncontrolling investments in joint ventures | (4) | (16) |
Distributions to noncontrolling investors in joint ventures | (53) | (47) |
Borrowings under credit agreements | 840 | 2,806 |
Issuance of long-term debt | 3,100 | |
Proceeds from receivables facility | 26 | 31 |
Repayments of long-term indebtedness | (4,416) | (4,279) |
Net cash used in financing activities | (569) | (1,532) |
Net change in cash and cash equivalents | 530 | 277 |
Cash and cash equivalents at beginning of period | 238 | 184 |
Cash and cash equivalents at end of period | 768 | 461 |
Supplemental disclosure of cash flow information: | ||
Interest payments | (409) | (489) |
Income tax payments, net of refunds | $ (6) | $ (4) |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies Disclosure | 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The unaudited condensed consolidated financial statements of Community Health Systems, Inc. (the “Parent” or “Parent Company”) and its subsidiaries (the “Company”) as of June 30, 2017 and December 31, 2016 and for the three-month and six-month periods ended June 30, 2017 and 2016, 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, 2017, are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2017. Certain information and disclosures normally included in the notes to condensed 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, 2016, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 21, 2017 (“2016 Form 10-K”). Noncontrolling interests in less-than-wholly-owned consolidated subsidiaries of the Parent are presented as a component of total equity on 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 on the condensed consolidated balance sheets. Throughout these notes to the 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 or any particular subsidiary of the Parent owns or operates any asset, business, or property. The hospitals, operations and businesses described in this filing are owned and operated by distinct and indirect subsidiaries of Community Health Systems, Inc. Allowance for Doubtful Accounts . Accounts receivable are reduced by an allowance for amounts that could become uncollectible in the future. Substantially all of the Company’s receivables are related to providing healthcare services to patients at its hospitals and affiliated businesses. The Company estimates the allowance for doubtful accounts by reserving a percentage of all self-pay accounts receivable without regard to aging category, based on collection history, adjusted for expected recoveries and any anticipated changes in trends. The Company’s ability to estimate the allowance for doubtful accounts is not impacted by not utilizing an aging of net accounts receivable as the Company believes that substantially all of the risk exists at the point in time such accounts are identified as self-pay. For all other non-self-pay payor categories, the Company reserves an estimated amount on historical collection rates for the uncontractualized portion of all accounts aging over 365 days from the date of discharge. These amounts represent an immaterial percentage of the outstanding accounts receivable. The percentage used to reserve for all self-pay accounts is based on the Company’s collection history. The Company collects substantially all of its third-party insured receivables, which include receivables from governmental agencies. Collections are impacted by the economic ability of patients to pay and the effectiveness of the Company’s collection efforts. Significant changes in payor mix, business office operations, economic conditions or trends in federal and state governmental healthcare coverage could affect the Company’s collection of accounts receivable and the estimates of the collectability of future accounts receivable and are considered in the Company’s estimates of accounts receivable collectability. The Company also continually reviews its overall reserve adequacy by monitoring historical cash collections as a percentage of trailing net revenue less provision for bad debts, as well as by analyzing current period net revenue and admissions by payor classification, aged accounts receivable by payor, days revenue outstanding, the composition of self-pay receivables between pure self-pay patients and the patient responsibility portion of third-party insured receivables and the impact of recent acquisitions and dispositions. Operating revenues, net of contractual allowances and discounts (but before the provision for bad debts), recognized during the three and six months ended June 30, 2017 and 2016, were as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Medicare $ 1,086 $ 1,265 $ 2,308 $ 2,696 Medicaid 529 553 1,059 1,145 Managed Care and other third-party payors 2,619 2,816 5,403 5,839 Self-pay 589 656 1,221 1,364 Total $ 4,823 $ 5,290 $ 9,991 $ 11,044 Electronic Health Records Incentive Reimbursement. The federal government has implemented a number of regulations and programs designed to promote the use of electronic health records (“EHR”) technology and, pursuant to the Health Information Technology for Economic and Clinical Health Act (“HITECH”), established requirements for a Medicare and Medicaid incentive payments program for eligible hospitals and professionals that adopt and meaningfully use certified EHR technology. The Company utilizes a gain contingency model to recognize EHR incentive payments. Recognition occurs when the eligible hospitals adopt or demonstrate meaningful use of certified EHR technology for the applicable payment period and have available the Medicare cost report information for the relevant full cost report year used to determine the final incentive payment. Medicaid EHR incentive payments are calculated based on prior period Medicare cost report information available at the time when eligible hospitals adopt, implement, upgrade or demonstrate meaningful use of certified EHR technology. Since the information for the relevant full Medicare cost report year is available at the time of attestation, the incentive income from resolving the gain contingency is recognized when eligible hospitals adopt, implement, upgrade or demonstrate meaningful use of certified EHR technology. Medicare EHR incentive payments are calculated based on the Medicare cost report information for the full cost report year that began during the federal fiscal year in which meaningful use is demonstrated. Since the necessary information is only available at the end of the relevant full Medicare cost report year and after the cost report is settled, the incentive income from resolving the gain contingency is recognized when eligible hospitals demonstrate meaningful use of certified EHR technology and the information for the applicable full Medicare cost report year to determine the final incentive payment is available. In some instances, the Company may receive estimated Medicare EHR incentive payments prior to when the Medicare cost report information used to determine the final incentive payment is available. In these instances, recognition of the gain for EHR incentive payments is deferred until all recognition criteria described above are met. Eligibility for annual Medicare incentive payments is dependent on providers successfully attesting to the meaningful use of EHR technology. Medicaid incentive payments are available to providers in the first payment year that they adopt, implement or upgrade certified EHR technology; however, providers must demonstrate meaningful use of such technology in any subsequent payment years to qualify for additional incentive payments. Medicaid EHR incentive payments are fully funded by the federal government and administered by the states; however, the states are not required to offer EHR incentive payments to providers. The Company recognized approximately $17 million and $31 million for the three months ended June 30, 2017 and 2016, respectively, and $23 million and $49 million for the six months ended June 30, 2017 and 2016, respectively, of incentive reimbursement for HITECH incentives from Medicare and Medicaid related to certain of the Company’s hospitals and for certain of the Company’s employed physicians that have demonstrated meaningful use of certified EHR technology or have completed attestations to their adoption or implementation of certified EHR technology. These incentive reimbursements are presented as a reduction of operating costs and expenses on the condensed consolidated statements of loss. The Company received cash related to the incentive reimbursement for HITECH incentives of approximately $25 million and $18 million for the three months ended June 30, 2017 and 2016, respectively, and approximately $36 million and $102 million for the six months ended June 30, 2017 and 2016, respectively. The Company recorded $2 million and $4 million as deferred revenue in connection with the receipt of these payments at June 30, 2017 and 2016, respectively, as all criteria for gain recognition had not been met. Accounting for the Impairment or Disposal of Long-Lived Assets. During the six months ended June 30, 2017, the Company recorded a total combined impairment charge and loss on disposal of approximately $330 million to reduce the carrying value of certain hospitals that have been deemed held for sale based on the difference between the carrying value of the hospital disposal groups compared to estimated fair value less costs to sell. Included in the carrying value of the hospital disposal groups is a net allocation of approximately $357 million of goodwill allocated from the hospital operations reporting unit goodwill based on a calculation of the disposal groups’ relative fair value compared to the total reporting unit. New Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which outlines a single comprehensive model for recognizing revenue and supersedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. This ASU provides companies the option of applying a full or modified retrospective approach upon adoption. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company expects to adopt this ASU on January 1, 2018 and is currently implementing its plan for adoption and evaluating the impact on its revenue recognition policies, procedures and control framework and the resulting impact on its consolidated financial position, results of operations and cash flows. The Company has established an implementation group for this ASU with an implementation plan to transition to the new standard and determine its impact during 2017. A significant element of executing this plan is the process of reviewing sources of revenue and evaluating the patient account population to determine the appropriate distribution of patient accounts into portfolios with similar collection experience that, when evaluated for collectability, will result in a materially consistent revenue amount for such portfolios as if each patient account was evaluated on a contract-by-contract basis. The Company is currently evaluating the appropriate portfolios to apply in its collectability analysis and is considering the impact of applying the new standard when its patient accounts are evaluated in those portfolios. The Company expects this process will be completed later in 2017. The Company is also in the process of assessing the impact of the new standard on various reimbursement programs that represent variable consideration, including settlements with third party payors, disproportionate share payments, supplemental state Medicaid programs, bundled payment of care programs and other reimbursement programs in which our hospitals participate. Due to the many different forms of calculation and reimbursement that these programs take that vary from state to state, the application of the new accounting standard could have an impact on the revenue recognized for variable consideration. Moreover, industry guidance is continuing to develop around this issue, and any conclusions in the final industry guidance that is inconsistent with the Company’s application could result in changes to the Company’s expectations regarding the impact that this new accounting standard could have on the Company’s financial statements. For example, in July 2017, a draft of industry guidance was issued on the application of this ASU on settlements with third party payors. The Company is evaluating whether such industry guidance will have an impact on its current accounting policies and procedures related to third party settlements. Final drafts of industry guidance on this and other reimbursement programs unique to the healthcare industry are expected later in 2017. The Company is monitoring the development of such guidance. Additionally, the adoption of the new accounting standard will impact the presentation on the Company’s statement of operations for a significant component of its provision for bad debts. After adoption of the new standard, the majority of what is currently classified as the provision for bad debts will be reflected as an implicit price concession as defined in the standard and therefore an adjustment to net patient revenue. The Company will continue to evaluate certain changes in collectability on its self-pay patient accounts receivable resulting from certain credit and collection issues not assessed at the date of service, including bankruptcy, and recognize such amounts in the provision for bad debts included in operating expenses on the statement of operations. The Company has decided to apply the full retrospective approach upon adoption. The Company cannot reasonably estimate at this time the quantitative impact that the adoption of this accounting standard will have on the financial statements of the Company. In January 2016, the FASB issued ASU 2016-01, which amends the measurement, presentation and disclosure requirements for equity investments, other than those accounted for under the equity method or that require consolidation of the investee. The ASU eliminates the classification of equity investments as available-for-sale with any changes in fair value of such investments recognized in other comprehensive income, and requires entities to measure equity investments at fair value, with any changes in fair value recognized in net income. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt this ASU on January 1, 2018, and is currently evaluating the impact that adoption of this ASU will have on its consolidated financial position and results of operations. In February 2016, the FASB issued ASU 2016-02, which amends the accounting for leases, requiring lessees to recognize most leases on their balance sheet with a right-of-use asset and a lease liability. Leases will be classified as either finance or operating leases, which will impact the expense recognition of such leases over the lease term. The ASU also modifies the lease classification criteria for lessors and eliminates some of the real estate leasing guidance previously applied for certain leasing transactions. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company expects to adopt this ASU on January 1, 2019. Because of the number of leases the Company utilizes to support its operations, the adoption of this ASU is expected to have a significant impact on the Company’s consolidated financial position and results of operations. Management is currently evaluating the extent of this anticipated impact on the Company’s consolidated financial position and results of operations, and the quantitative and qualitative factors that will impact the Company as part of the adoption of this ASU, as well as any changes to its leasing strategy that may occur because of the changes to the accounting and recognition of leases. Most recently, the Company has organized an implementation group of cross-functional departmental management to ensure the completeness of its lease information, analyze the appropriate classification of current leases under the new standard, and develop new processes to execute, approve and classify leases on an ongoing basis. The Company has also engaged outside experts to assist in the development of this plan, as well as the identification and selection of software tools and processes to maintain lease information critical to applying the new standard. In March 2016, the FASB issued ASU 2016-09, which was issued to simplify some of the accounting guidance for share-based compensation. Among the areas impacted by the amendments in this ASU is the accounting for income taxes related to share-based payments, accounting for forfeitures, classification of awards as equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016. The Company adopted this ASU on January 1, 2017. Because of the recent decline in the Company’s stock price below the Company’s stock price at the stock award grant date for outstanding share-based awards, the principal impact from adopting this ASU has been a $16 million increase in the Company’s current provision for income taxes due to the deficiency created by a difference between the actual tax deduction that will be recognized from the vesting of outstanding share-based awards during the six months ended June 30, 2017, compared to the higher stock compensation expense previously recorded over the vesting period as determined based on the fair value of the restricted stock at the grant date. In January 2017, the FASB issued ASU 2017-04, which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. Instead of a two-step impairment model, if the carrying amount of a reporting unit exceeds its fair value as determined in step one of the impairment test, an impairment loss is measured at the amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This ASU is effective for any interim or annual impairment tests for fiscal years beginning after December 15, 2019, with early adoption permitted. As noted in the Company’s critical accounting policy discussion on goodwill, during the fourth quarter of 2016 the Company performed its annual goodwill impairment analysis. While the result of the step two valuation in that analysis did not indicate an impairment of goodwill, the initial calculation of hospital operations reporting unit fair value in the step one test indicated that the carrying amount of the hospital operations reporting unit exceeded its fair value by approximately $800 million. Depending on future changes in fair value and the impact of allocated goodwill for planned divestitures, at adoption there could be a material impairment charge recorded for this excess amount. The Company is evaluating whether to early adopt this ASU and what impact it will have on its consolidated financial position and results of operations . In March 2017, the FASB issued ASU 2017-07, which changes the presentation of the components of net periodic benefit cost for sponsors of defined benefit plans for pensions. Under the changes in this ASU, the service cost component of net periodic benefit cost will be reported in the same income statement line as other employee compensation costs arising from services during the reporting period. The other components of net periodic benefit cost will be presented separately in a line item outside of operating income. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt this ASU on January 1, 2018, and is currently evaluating the impact that adoption of this ASU will have on its consolidated results of operations. Since the changes required in this new ASU only change the income statement classification of the components of net periodic benefit cost, no changes are expected to income from continuing operations or net income. Currently, the Company reports all of the components of net periodic benefit cost as a component of salaries and benefits on the consolidated statement of income . |
Accounting for Stock-Based Comp
Accounting for Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting for Stock-Based Compensation [Abstract] | |
Accounting for Stock-Based Compensation Disclosure | 2. ACCOUNTING FOR STOCK-BASED COMPENSATION Stock-based compensation awards have been granted under the Community Health Systems, Inc. Amended and Restated 2000 Stock Option and Award Plan, amended and restated as of March 20, 2013 (the “2000 Plan”), and the Community Health Systems, Inc. Amended and Restated 2009 Stock Option and Award Plan, which was amended and restated as of March 16, 2016 and approved by the Company’s stockholders at the annual meeting of stockholders held on May 17, 2016 (the “2009 Plan”). The 2000 Plan allowed for the grant of incentive stock options intended to qualify under Section 422 of the Internal Revenue Code (the “IRC”), as well as stock options which do not so qualify, stock appreciation rights, restricted stock, restricted stock units, performance-based shares or units and other share awards. Prior to being amended in 2009, the 2000 Plan also allowed for the grant of phantom stock. Persons eligible to receive grants under the 2000 Plan include the Company’s directors, officers, employees and consultants. All options granted under the 2000 Plan have been “nonqualified” stock options for tax purposes. Generally, vesting of these granted options occurs in one-third increments on each of the first three anniversaries of the award date . Options granted prior to 2005 have a 10 -year contractual term, options granted in 2005 through 2007 have an eight -year contractual term and options granted in 2008 through 2011 have a 10 -year contractual term. The Company has not granted stock option awards under the 2000 Plan since 2011. Pursuant to the amendment and restatement of the 2000 Plan dated March 20, 2013, no further grants will be awarded under the 2000 Plan. The 2009 Plan provides for the grant of incentive stock options intended to qualify under Section 422 of the IRC and for the grant of stock options which do not so qualify, stock appreciation rights, restricted stock, restricted stock units, 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, vesting of these granted options occurs in one-third increments on each of the first three anniversaries of the award date . Options granted in 2011 or later have a 10 -year contractual term. As of June 30, 2017, 3,868,024 shares of unissued common stock were reserved for future grants under the 2009 Plan. The exercise price of all options granted under the 2000 Plan and the 2009 Plan has been equal to the fair value of the Company’s common stock on the option grant date. 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, 2017 2016 2017 2016 Effect on loss from continuing operations before income taxes $ (6) $ (12) $ (15) $ (26) Effect on net loss $ (4) $ (7) $ (9) $ (15) At June 30, 2017, $31 million of unrecognized stock-based compensation expense related to outstanding unvested restricted stock and restricted stock units (the terms of which are summarized below) was expected to be recognized over a weighted-average period of 22 months. There is no expense to be recognized related to stock options. There were no modifications to awards during the three or six months ended June 30, 2017 and 2016. Options outstanding and exercisable under the 2000 Plan and the 2009 Plan as of June 30, 2017, and changes during each of the three-month periods following December 31, 2016, were as follows (in millions, except share and per share data): Weighted- Aggregate Average Intrinsic Weighted- Remaining Value as of Average Contractual June 30, Shares Exercise Price Term 2017 Outstanding at December 31, 2016 1,185,320 $ 28.12 Granted - - Exercised - - Forfeited and cancelled (16,815) 28.82 Outstanding at March 31, 2017 1,168,505 31.71 Granted - - Exercised - - Forfeited and cancelled (16,168) 36.59 Outstanding at June 30, 2017 1,152,337 $ 31.65 2.5 years $ - Exercisable at June 30, 2017 1,152,337 $ 31.65 2.5 years $ - No stock options were granted during the three or six months ended June 30, 2017 and 2016. 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 ( $9.96 ) 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, 2017. This amount changes based on the market value of the Company’s common stock. There were no options exercised during the three or six months ended June 30, 2017 and 2016. 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 2000 Plan and the 2009 Plan to employees of certain subsidiaries. The restrictions on these shares generally lapse in one-third increments on each of the first three anniversaries of the award date . Certain of the restricted stock awards granted to the Company’s senior executives contain a performance objective that must be met in addition to any time-based vesting requirements. If the performance objective is not attained, the awards will be forfeited in their entirety. For such performance-based awards granted prior to 2017, once the performance objective has been attained, restrictions will lapse in one-third increments on each of the first three anniversaries of the award date . For performance-based awards granted beginning in March 2017, the performance objective is measured cumulatively over a three -year period. With respect to these performance-based awards granted beginning in March 2017, if the performance criteria are met at the end of three years, then the restricted stock award will vest in full. Additionally, for these awards, based on the level of achievement for the performance criteria, the number of shares to be issued in connection with the vesting of the award can 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 2000 Plan and the 2009 Plan will lapse earlier in the event of death, disability or termination of employment by the Company for any reason other than for cause of the holder of the restricted stock, or change in control of the Company. Restricted stock awards subject to performance standards that have not yet been satisfied are not considered outstanding for purposes of determining earnings per share until the performance objectives have been satisfied. Restricted stock outstanding under the 2000 Plan and the 2009 Plan as of June 30, 2017, and changes during each of the three-month periods following December 31, 2016, were as follows: Weighted- Average Grant Shares Date Fair Value Unvested at December 31, 2016 2,969,285 $ 29.39 Granted 1,323,000 9.15 Vested (1,470,171) 35.31 Forfeited (32,837) 28.35 Unvested at March 31, 2017 2,789,277 16.69 Granted 133,000 9.15 Vested (15,002) 35.58 Forfeited (84,336) 16.24 Unvested at June 30, 2017 2,822,939 16.25 Restricted stock units (“RSUs”) have been granted to the Company’s outside directors under the 2000 Plan and the 2009 Plan. On March 1, 2016, each of the Company’s outside directors received a grant under the 2009 Plan of 11,017 RSUs. On March 1, 2017, each of the Company’s outside directors received a grant under the 2009 Plan of 18,498 RSUs. The 2016 and 2017 grants had a grant date fair value of approximately $170,000 . Vesting of these RSUs 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, other than for cause . RSUs outstanding under the 2000 Plan and the 2009 Plan as of June 30, 2017, and changes during each of the three-month periods following December 31, 2016, were as follows: Weighted- Average Grant Shares Date Fair Value Unvested at December 31, 2016 120,386 $ 22.06 Granted 110,988 9.19 Vested (48,876) 29.95 Forfeited - - Unvested at March 31, 2017 182,498 13.19 Granted - - Vested (10,420) 19.97 Forfeited - - Unvested at June 30, 2017 172,078 12.78 |
Cost of Revenue
Cost of Revenue | 6 Months Ended |
Jun. 30, 2017 | |
Cost of Revenue [Abstract] | |
Cost of Revenue Disclosure | 3. COST OF REVENUE 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 would include the Company’s corporate office costs at its Franklin, Tennessee office, which were $40 million and $44 million for the three months ended June 30, 2017 and 2016, respectively, and $92 million and $104 million for the six months ended June 30, 2017 and 2016, respectively. Included in these corporate office costs is stock-based compensation of $6 million and $12 million for the three months ended June 30, 2017 and 2016, respectively, and $15 million and $26 million for the six months ended June 30, 2017 and 2016, respectively. |
Use of Estimates
Use of Estimates | 6 Months Ended |
Jun. 30, 2017 | |
Use of Estimates [Abstract] | |
Use of Estimates Disclosure | 4. USE OF ESTIMATES 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. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2017 | |
Acquisitions And Divestitures [Abstract] | |
Acquisitions and Divestitures Disclosure | 5. 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 as of the date of acquisition. 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. Acquisition and integration expenses related to prospective and closed acquisitions included in other operating expenses on the condensed consolidated statements of loss were less than $1 million and approximately $1 million during the three months ended June 30, 2017 and 2016, respectively, and approximately $1 million and $3 million during the six months ended June 30, 2017 and 2016, respectively. On April 1, 2016 , one or more subsidiaries of the Company completed the acquisition of an 80% interest in Physicians’ Specialty Hospital ( 20 licensed beds), a Medicare-certified specialty surgical hospital in Fayetteville, Arkansas. The total cash consideration paid for the 80% ownership interest in this joint venture was approximately $12 million, with additional consideration of $2 million assumed in liabilities, for a total consideration of $14 million. The value of the noncontrolling interest at acquisition was $2 million. Based upon the Company’s final purchase price allocation relating to this acquisition as of June 30, 2017, approximately $12 million of goodwill has been recorded. On March 1, 2016 , one or more subsidiaries of the Company completed the acquisition of an 80 % ownership interest in a joint venture entity with Indiana University Health that includes substantially all of the assets of IU Health La Porte Hospital (“La Porte”) in La Porte, Indiana ( 227 licensed beds) and IU Health Starke Hospital (“Starke”) in Knox, Indiana ( 50 licensed beds), and affiliated outpatient centers and physician practices. The total cash consideration paid for the 80% ownership interest in this joint venture was approximately $96 million with additional consideration of $8 million assumed in liabilities, for a total consideration of $104 million. The value of the noncontrolling interest at acquisition was $25 million. Based upon the Company’s final purchase price allocation relating to this acquisition as of June 30, 2017, approximately $45 million of goodwill has been recorded. Other Acquisitions During the six months ended June 30, 2017, one or more subsidiaries of the Company paid approximately $4 million to acquire the operating assets and related businesses of certain physician practices, clinics and other ancillary businesses that operate within the communities served by the Company’s affiliated hospitals. In connection with these acquisitions, during the six months ended June 30, 2017, the Company allocated approximately $1 million of the consideration paid to property and equipment and net working capital and the remainder, approximately $3 million consisting of intangible assets that do not qualify for separate recognition, to goodwill. Divestitures In April 2014, FASB issued ASU 2014-08, which changed the requirements for reporting discontinued operations. Under this accounting standard, a discontinued operation is a disposal that represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Additional disclosures are required for significant components of the entity that are disposed of or are held for sale but do not qualify as discontinued operations. This ASU was adopted on January 1, 2015 and is required to be applied on a prospective basis for disposals or components initially classified as held for sale after adoption. As a result, the following divestitures occurring subsequent to the date of adoption are included in continuing operations for the six months ended June 30, 2017 and 2016. Additionally, the impact of the hospitals and other assets spun off to QHC are discussed in Note 6 below. On June 30, 2017 , one or more subsidiaries of the Company sold Lake Area Medical Center ( 88 licensed beds) in Lake Charles, Louisiana to subsidiaries of CHRISTUS Health for approximately $32 million in cash, which was received at closing on June 30, 2017. On May 1, 2017 , one or more subsidiaries of the Company sold Stringfellow Memorial Hospital ( 125 licensed beds) in Anniston, Alabama, and its associated assets to The Health Care Authority of the City of Anniston for approximately $14 million in cash. On May 1, 2017 , one or more subsidiaries of the Company sold Merit Health Gilmore Memorial ( 95 licensed beds) in Amory, Mississippi and Merit Health Batesville ( 112 licensed beds) in Batesville, Mississippi, and the associated assets to Curae Health, Inc. for approximately $32 million in a combination of cash and a note receivable from the buyer. On May 1, 2017 , one or more subsidiaries of the Company sold Easton Hospital ( 196 licensed beds) in Easton, Pennsylvania; Sharon Regional Health System ( 258 licensed beds) in Sharon, Pennsylvania; Northside Medical Center ( 355 licensed beds) in Youngstown, Ohio; Trumbull Memorial Hospital ( 311 licensed beds) in Warren, Ohio; Hillside Rehabilitation Hospital ( 69 licensed beds) in Warren, Ohio; Wuesthoff Health System – Rockledge ( 298 licensed beds) in Rockledge, Florida; Wuesthoff Health System – Melbourne ( 119 licensed beds) in Melbourne, Florida; and Sebastian River Medical Center ( 154 licensed beds) in Sebastian, Florida, and the associated assets to Steward Health, Inc. for approximately $304 million in cash. On December 31, 2016 , one or more subsidiaries of the Company sold an 80% majority ownership interest in the home care division to a subsidiary of Almost Family, Inc. for $128 million. In connection with the divestiture of a controlling interest in the home care division, the Company recorded a gain of approximately $91 million during the year ended December 31, 2016. Effective September 3, 2016 , one or more subsidiaries of the Company finalized an agreement to terminate the lease and cease operations of Alliance Health Blackwell ( 53 licensed beds) in Blackwell, Oklahoma, agreeing to terminate the lease with the landlord, The Blackwell Hospital Trust Authority. Loss from continuing operations for the year ended December 31, 2016 includes an impairment charge of approximately $3 million related to the write-off of certain intangible assets abandoned as part of exiting the lease to operate this hospital. Effective February 1, 2016 , one or more subsidiaries of the Company sold Lehigh Regional Medical Center ( 88 licensed beds) in Lehigh Acres, Florida, (“Lehigh”) and related outpatient services to Prime Healthcare Services, Inc. (“Prime”) for approximately $11 million in cash. In connection with the divestiture of Lehigh, the Company recorded an impairment charge of approximately $4 million related to the allocated hospital reporting unit goodwill in 2016. Effective January 1, 2016 , one or more subsidiaries of the Company sold Bartow Regional Medical Center ( 72 licensed beds) in Bartow, Florida, (“Bartow”) and related outpatient services to BayCare Health Systems, Inc. for approximately $60 million in cash, which was received at a preliminary closing on December 31, 2015. In connection with the divestiture of Bartow, the Company recorded an impairment charge of approximately $5 million related to the allocated hospital reporting unit goodwill in 2016. The financial results included in discontinued operations for divestitures or hospitals held for sale at December 31, 2014, prior to the Company’s adoption of ASU 2014-08, are summarized below. On May 1, 2017 , one or more subsidiaries of the Company sold AllianceHealth Pryor ( 52 licensed beds) in Pryor, Oklahoma, and its associated assets to Ardent Health Services Inc. for approximately $1 million in cash. This hospital has been reported in the condensed consolidated statement of operations in discontinued operations. During the year ended December 31, 201 4, the Company made the decision to sell and began actively marketing several smaller hospitals. In addition, Health Management Associates, Inc. (“HMA”) entered into a definitive agreement to sell Williamson Memorial Hospital ( 76 licensed beds) located in Williamson, West Virginia prior to the HMA merger, and the Company has continued the effort to divest this facility. In connection with management’s decision to sell these hospitals, the Company has classified the results of operations of such hospitals as discontinued operations in the accompanying condensed consolidated statements of loss, and classified these hospitals as held for sale in the accompanying condensed consolidated balance sheets. Net operating revenues and loss from discontinued operations for the respective periods are as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net operating revenues $ 21 $ 26 $ 45 $ 52 Loss from operations of entities sold or held for sale before income taxes $ (2) $ (2) $ (3) $ (3) Impairment of hospitals sold or held for sale (7) - (7) (2) Loss on sale, net (1) - (1) - Loss from discontinued operations, before taxes (10) (2) (11) (5) Income tax benefit (4) (1) (4) (2) Loss from discontinued operations, net of taxes $ (6) $ (1) $ (7) $ (3) As part of its ongoing evaluation of the fair value of the hospitals it is marketing for sale, the Company recorded an impairment charge on the carrying value of the long-lived assets at these hospitals in discontinued operations of $5 million and $1 million, net of tax, for the six months ended June 30, 2017 and 2016, respectively. Interest expense was allocated to discontinued operations based on sale proceeds available for debt repayment. The following table discloses amounts included in the condensed consolidated balance sheet classified as held for sale as of June 30, 2017 and December 31, 2016 (in millions): June 30, 2017 December 31, 2016 Other current assets $ 182 $ 117 Other assets, net 1,316 878 Accrued liabilities 116 81 Other Hospital Closures During the three months ended March 31, 2016, the Company announced the planned closure of McNairy Regional Hospital in Selmer, Tennessee. The Company recorded an impairment charge of approximately $7 million during the three months ended March 31, 2016, to adjust the fair value of the supplies inventory and long-lived assets of this hospital, including property and equipment and capitalized software costs, based on their estimated fair value and future utilization . McNairy Regional Hospital closed on May 19, 2016 and no additional impairment was recorded related to the closure of this facility. |
Spin-Off of Quorum Health Corpo
Spin-Off of Quorum Health Corporation | 6 Months Ended |
Jun. 30, 2017 | |
Spin-Off of Quorum Health Corporation [Abstract] | |
Spin-Off of Quorum Health Corporation Disclosure | 6. SPIN-OFF OF QUORUM HEALTH CORPORATION On April 29, 2016, the Company completed the spin-off of 38 hospitals and Quorum Health Resources, LLC into Quorum Health Corporation, an independent, publicly traded corporation. The transaction was structured to be generally tax free to the Company and its stockholders. The Company distributed, on a pro rata basis, all of the shares of QHC common stock to the Company’s stockholders of record as of April 22, 2016. These stockholders of record as of April 22, 2016 received a distribution of one share of QHC common stock for every four shares of Company common stock held as of the record date plus cash in lieu of any fractional shares. In recognition of the spin-off, the Company recorded a non-cash dividend of approximately $713 million during the year ended December 31, 2016, representing the net assets of QHC distributed to the Company’s stockholders. Immediately following the completion of the spin-off, the Company’s stockholders owned 100% of the outstanding shares of QHC common stock. Following the spin-off, QHC became an independent public company with its common stock listed for trading under the symbol “QHC” on the New York Stock Exchange. In connection with the spin-off, the Company and QHC entered into a separation and distribution agreement as well as certain ancillary agreements on April 29, 2016. These agreements allocate between the Company and QHC the various assets, employees, liabilities and obligations (including investments, property and employee benefits and tax-related assets and liabilities) that comprise the separate companies and govern certain relationships between, and activities of, the Company and QHC for a period of time after the spin-off. The results of operations for QHC through the date of the spin-off are presented in continuing operations in the condensed consolidated statements of loss as the Company has determined that the spin-off of QHC does not meet the criteria as discontinued operations under ASU 2014-08. Financial and statistical data reported in this Quarterly Report on Form 10-Q (“Form 10-Q”) include QHC operating results for the three and six months ended June 30, 2016 (other than same-store operating results and data, which exclude QHC operating results). Summary financial results of QHC for the three and six months ended June 30, 2016 included in the accompanying condensed consolidated statements of loss are as follows: Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Loss from operations before income taxes $ (7) $ (12) Less: Income attributable to noncontrolling interests - (1) Loss from operations before income taxes attributable to Community Health Systems, Inc. stockholders $ (7) $ (13) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Taxes [Abstract] | |
Income Taxes Disclosure | 7. INCOME TAXES The total amount of unrecognized benefit that would affect the effective tax rate, if recognized, was approximately $9 million as of June 30, 2017. A total of approximately $3 million of interest and penalties is included in the amount of the liability for uncertain tax positions at June 30, 2017. 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 condensed consolidated financial position. The Company, or one of its subsidiaries, files income tax returns in the United States federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to state income tax examinations for years prior to 2013. The Company’s federal income tax returns for the 2009, 2010, 2014 and 2015 tax years are currently under examination by the Internal Revenue Service. The Company believes the results of these examinations will not be material to its consolidated results of operations or consolidated financial position. The Company has extended the federal statute of limitations through January 31, 2018 for Community Health Systems, Inc. for the tax periods ended December 31, 2007, 2008, 2009 and 2010, and through December 31, 2017 for the tax periods ended December 31, 2011 and 2012. The Company’s effective tax rates were 11.5% and 8.9% for the three months ended June 30, 2017 and 2016, respectively, and 4.9% and 7.6% for the six months ended June 30, 2017 and 2016, respectively. Including the net income attributable to noncontrolling interests, which is not tax effected in the condensed consolidated statements of loss, the effective tax rate would have been 10.3% and 8.8% for the three months ended June 30, 2017 and 2016, respectively, and 4.4% and 7.3% for the six months ended June 30, 2017 and 2016, respectively. This decrease in the Company’s effective tax rate for the six months ended June 30, 2017, when compared to the six months ended June 30, 2016, was primarily due to the non-deductible nature of certain goodwill written off in the $330 million impairment and (gain) loss on sale of businesses for the six months ended June 30, 2017, and partially offset by approximately $16 million of tax expense recognized on the tax deficiency created by a difference between the actual tax deduction that will be recognized from the vesting of restricted stock during the six months ended June 30, 2017, compared to the higher stock compensation expense previously recorded over the vesting period as determined based on the fair value of the restricted stock at the grant date. This additional tax expense was a result of the adoption of ASU 2016-09, which changed the previously required accounting for such tax deficiencies through additional paid-in capital to recording such amounts as part of the tax provision in the period such restricted stock vests. Cash paid for income taxes, net of refunds received, resulted in net cash paid of $5 million and $4 million during the three months ended June 30, 2017 and 2016, respectively, and net cash paid of $6 million and $4 million during the six months ended June 30, 2017 and 2016, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Other Intangible Assets [Abstract] | |
Goodwill and Other Intangible Assets Disclosure | 8. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill for the six months ended June 30, 2017 are as follows (in millions): Balance as of December 31, 2016 $ 6,521 Goodwill acquired as part of acquisitions during current year 3 Consideration and purchase price allocation adjustments for prior year’s acquisitions and other adjustments (2) Goodwill allocated to hospitals held for sale (357) Balance as of June 30, 2017 $ 6,165 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 hospital operations segment meets the criteria to be classified as a single reporting unit. At June 30, 2017, the Company had approximately $6.2 billion of goodwill recorded, all of which resides at its hospital operations reporting unit. Goodwill is evaluated for impairment at the same time every year 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. There is a two-step method for determining goodwill impairment. Step one is to compare the fair value of the reporting unit with the unit’s carrying amount, including goodwill. If this test indicates the fair value is less than the carrying value, then step two is required to compare the implied fair value of the reporting unit’s goodwill utilizing a hypothetical purchase price allocation with the carrying value of the reporting unit’s goodwill. The Company performed its last annual goodwill evaluation during the fourth quarter of 2016. No impairment was indicated by this evaluation. The next annual goodwill evaluation will be performed during the fourth quarter of 2017, or sooner if the Company identifies certain indicators of impairment. While no impairment was indicated by the fourth quarter of 2016 evaluation, the reduction in the Company’s fair value and the resulting goodwill impairment charge recorded during 2016 reduced the excess of fair value calculated in the step two analysis over the carrying value of the Company’s hospital operations reporting unit to an amount less than 1% of the Company’s carrying value. This minimal amount in the excess fair value over carrying value of the hospital operations reporting unit increases the risk that future declines in fair value could result in goodwill impairment. The determination of fair value in the Company’s goodwill impairment analysis is based on an estimate of fair value for each 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 or fair value of long-term debt, estimates of future revenue and expense growth, estimated market multiples expected capital expenditures, income tax rates, and costs of invested capital. Future estimates of fair value could be adversely affected if the actual outcome of one or more of these assumptions changes materially in the future, including further decline in the Company’s stock price or fair value of long-term debt, lower than expected hospital volumes, or increased operating costs. Such changes impacting the calculation of fair value could result in a material impairment charge in the future. The Company estimates the fair value of the related reporting units using both a discounted cash flow model as well as a market multiple model. The cash flow forecasts are adjusted by an appropriate discount rate based on the Company’s estimate of a market participant’s weighted-average cost of capital. These models are both based on the Company’s best estimate of future revenues and operating costs and are reconciled to the Company’s consolidated market capitalization, with consideration of the amount a potential acquirer would be required to pay, in the form of a control premium, in order to gain sufficient ownership to set policies, direct operations and control management decisions. During the three months ended June 30, 2016, the Company identified certain indicators of impairment requiring an interim goodwill impairment evaluation. Those indicators were primarily the decline in the Company’s market capitalization and fair value of long-term debt during the three months ended June 30, 2016, as well as a decrease in the estimated future earnings of the Company compared to the Company’s most recent annual evaluation. The Company performed an estimated calculation of fair value in step one of the impairment test at June 30, 2016, which indicated that the carrying value of its hospital operations reporting unit exceeded its fair value. An initial step two calculation was performed to determine the implied value of goodwill in a hypothetical purchase price allocation. The Company recorded an estimated non-cash impairment charge of $1.4 billion to goodwill at June 30, 2016 based on these analyses, and adjusted the estimated impairment charge based on the final step two valuation of $1.395 billion at September 30, 2016. The decrease in the goodwill impairment as of September 30, 2016, from the original estimate as of June 30, 2016, was primarily due to lower estimated fair values of the individual hospital property and equipment assets as compared to the assumptions used in the June 30, 2016 estimate, resulting in a higher implied goodwill amount when applied to a hypothetical purchase price allocation as required in the step two analysis. This impairment charge taken during 2016 represents the cumulative amount of impairment recorded historically on the Company’s goodwill. The determination of fair value of the Company’s hospital operations reporting unit as part of its goodwill impairment measurement represents a Level 3 fair value measurement in the fair value hierarchy due to its use of internal projections and unobservable measurement inputs. These impairment charges do not have an impact on the calculation of the Company’s financial covenants under the Company’s Credit Facility. Intangible Assets No intangible assets other than goodwill were acquired during the six months ended June 30, 2017. The gross carrying amount of the Company’s other intangible assets subject to amortization was $18 million at June 30, 2017 and $41 million at December 31, 2016, respectively, and the net carrying amount was $12 million at June 30, 2017 and $14 million at December 31, 2016, respectively. The carrying amount of the Company’s other intangible assets not subject to amortization was $79 million at June 30, 2017 and $86 million at December 31, 2016, respectively. Other intangible assets are included in other assets, net on the Company’s condensed consolidated balance sheets. Substantially all of the Company’s intangible assets are contract-based intangible assets related to operating licenses, management contracts, tradenames, or non-compete agreements entered into in connection with prior acquisitions. The w eight ed-average remaining amortization period for the intangible assets subject to amortization is approximately six years. There are no expected residual values related to these intangible assets. Amortization expense on these intangible assets was $1 million and $3 million during the three months ended June 30, 2017 and 2016, respectively, and $3 million and $7 million during the six months ended June 30, 2017 and 2016, respectively. Amortization expense on intangible assets is estimated to be $2 million for the remainder of 2017, $3 million in 2018, $1 million in 2019, $1 million in 2020, $1 million in 2021, $1 million in 2022 and $3 million thereafter. The gross carrying amount of capitalized software for internal use was approximatel y $1.3 billion at both June 30, 2017 and December 31, 2016, and the net carrying amount was approximately $514 million at June 30, 2017 and $574 million at December 31, 2016. The estimated amortization period for capitalized internal-use software is generally three years, except for capitalized costs related to significant system conversions, which is generally eight to ten years. There is no expected residual value for capitalized internal-use software. At June 30, 2017, there was approximately $42 million of capitalized costs for internal-use software that is currently in the development stage and will begin amortization once the software project is complete and ready for its intended use. Amortization expense on capitalized internal-use software was $47 million and $50 million during the three months ended June 30, 2017 and 2016, respectively, and $95 million and $105 million during the six months ended June 30, 2017 and 2016, respectively. Amortization expense on capitalized internal-use software is estimated to be $89 million for the remainder of 2017, $143 million in 2018, $89 million in 2019, $65 million in 2020, $52 million in 2021, $38 million in 2022 and $38 million thereafter. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Disclosure | 9. EARNINGS PER SHARE The following table sets forth the components of the numerator and denominator for the computation of basic and diluted earnings per share for loss from continuing operations, discontinued operations and net loss attributable to Community Health Systems, Inc. common stockholders (in millions, except share data): Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator: Loss from continuing operations, net of taxes $ (116) $ (1,405) $ (292) $ (1,368) Less: Income from continuing operations attributable to noncontrolling interests, net of taxes 15 26 36 50 Loss from continuing operations attributable to Community Health Systems, Inc. common stockholders — basic and diluted $ (131) $ (1,431) $ (328) $ (1,418) Loss from discontinued operations, net of taxes $ (6) $ (1) $ (7) $ (3) Less: Loss from discontinued operations attributable to noncontrolling interests, net of taxes - - - - Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders — basic and diluted $ (6) $ (1) $ (7) $ (3) Denominator: Weighted-average number of shares outstanding — basic 111,909,858 110,879,285 111,582,911 110,563,576 Effect of dilutive securities: Restricted stock awards - - - - Employee stock options - - - - Other equity-based awards - - - - Weighted-average number of shares outstanding — diluted 111,909,858 110,879,285 111,582,911 110,563,576 The Company generated a loss from continuing operations attributable to Community Health Systems, Inc. common stockholders for the three and six months ended June 30, 2017 and 2016, so the effect of dilutive securities is not considered because their effect would be antidilutive. If the Company had generated income from continuing operations, the effect of restricted stock awards on the diluted shares calculation would have been an increase of 215,313 shares and 168,764 shares during the three months ended June 30, 2017 and 2016 , respectively, and an increase of 147,043 shares and 115,135 shares during the six months ended June 30, 2017 and 2016, respectively, Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Dilutive securities outstanding not included in the computation of earnings per share because their effect is antidilutive: Employee stock options and restricted stock awards 2,360,317 2,530,686 2,934,023 2,601,706 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity Disclosure | 10. STOCKHOLDERS’ EQUITY 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, 2017, 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. On November 6, 2015, the Company adopted an open market repurchase program for up to 10,000,000 shares of the Company’s common stock, not to exceed $300 million in repurchases. The repurchase program will expire on the earlier of November 5, 2018, when the maximum number of shares has been repurchased, or when the maximum dollar amount has been expended. During the year ended December 31, 2015, the Company repurchased and retired 532,188 shares at a weighted-average price of $27.31 per share, which is the cumulative number of shares repurchased and retired under this program. No shares were repurchased under this program during the year ended December 31, 2016. In addition, no shares were repurchased under this program during the six months ended June 30, 2017. The Company is a holding company which operates through its subsidiaries. The Company’s Credit Facility and the indentures governing the senior and senior secured 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. With the exception of a special cash dividend of $0.25 per share paid by the Company in December 2012, historically, the Company has not paid any cash dividends. Subject to certain exceptions, the Company’s Credit Facility limits the ability of the Company’s subsidiaries to pay dividends and make distributions to the Company, and limits the Company’s ability to pay dividends and/or repurchase stock, to an amount not to exceed $200 million in the aggregate plus an additional $25 million in any particular year plus the aggregate amount of proceeds from the exercise of stock options. The indentures governing the senior and senior secured notes also 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. The non-cash dividend of approximately $713 million recorded by the Company during the year ended December 31, 2016 to reflect the distribution of the net assets of QHC was a permitted transaction under the Company’s Credit Facility. As of June 30, 2017, under the most restrictive test under these agreements (and subject to certain exceptions), the Company has approximately $318 million remaining available with which to pay permitted dividends and/or repurchase shares of stock or its senior and senior secured notes. The following schedule presents the reconciliation of the carrying amount of total equity, equity attributable to the Company, and equity attributable to the noncontrolling interests for the six-month period ended June 30, 2017 (in millions): Community Health Systems, Inc. Stockholders Redeemable Noncontrolling Interest Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Noncontrolling Interest Total Stockholders’ Equity Balance, December 31, 2016 $ 554 $ 1 $ 1,975 $ (62) $ (299) $ 113 $ 1,728 Comprehensive income 29 - - 9 (335) 7 (319) Contributions from noncontrolling interests 5 - - - - - - Distributions to noncontrolling interests (39) - - - - (14) (14) Purchase of subsidiary shares from noncontrolling interests (4) - - - - - - Disposition of less-than-wholly owned entity 4 - - - - (13) (13) Other reclassifications of - noncontrolling interests (1) - - - - 1 1 Noncontrolling interests in acquired entity - - - - - 1 1 Cancellation of restricted stock for tax withholdings on vested shares - - (5) - - - (5) Share-based compensation - - 14 - - - 14 Balance, June 30, 2017 $ 548 $ 1 $ 1,984 $ (53) $ (634) $ 95 $ 1,393 The following schedule discloses the effects of changes in the Company’s ownership interest in its less-than-wholly-owned subsidiaries on Community Health Systems, Inc. stockholders’ equity (in millions): Six Months Ended June 30, 2017 Net loss attributable to Community Health Systems, Inc. stockholders $ (335) Transfers from the noncontrolling interests: Net decrease in Community Health Systems, Inc. paid-in-capital for purchase of subsidiary partnership interests - Net transfers from the noncontrolling interests - Change to Community Health Systems, Inc. stockholders’ equity from net loss attributable to Community Health Systems, Inc. stockholders and transfers to noncontrolling interests $ (335) |
Equity Investments
Equity Investments | 6 Months Ended |
Jun. 30, 2017 | |
Equity Investments [Abstract] | |
Equity Investments Disclosure | 11. EQUITY INVESTMENTS As of June 30, 2017, the Company owned equity interests of 38.0% in three hospitals in Macon, Georgia, in which HCA Holdings, Inc. (“HCA”) owned the majority interest. On December 31, 2016, the Company sold 80% of its ownership interest in the legal entity that owned and operated its home care agency business. As part of the divestiture of its controlling interest in the home care agency business, the Company recorded an equity method investment representing its remaining 20% ownership at a fair value of $32 million. In March 2005, the Company began purchasing items, primarily medical supplies, medical equipment and pharmaceuticals, under an agreement with HealthTrust Purchasing Group, L.P. (“HealthTrust”), a group purchasing organization in which the Company is a noncontrolling partner. As of June 30, 2017, the Company had a 23.1% ownership interest in HealthTrust. The Company’s investment in all of its unconsolidated affiliates was $170 million and $177 million at June 30, 2017 and December 31, 2016, respectively, and is included in other assets, net in the accompanying condensed consolidated balance sheets. Included in the Company’s results of operations is the Company’s equity in pre-tax earnings from all of its investments in unconsolidated affiliates, which was $5 million and $14 million for the three months ended June 30, 2017 and 2016, respectively, and $9 million and $34 million for the six months ended June 30, 2017 and 2016, respectively. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Long-term Debt [Abstract] | |
Long-Term Debt Disclosure | 12. LONG-TERM DEBT Long-term debt, net of unamortized debt issuance costs and discounts or premiums, consists of the following (in millions): June 30, December 31, 2017 2016 Credit Facility: Term A Loan $ - $ 749 Term F Loan - 1,445 Term G Loan 1,331 1,528 Term H Loan 2,440 2,811 Revolving credit loans - - 8% Senior Notes due 2019 1,925 1,925 7⅛% Senior Notes due 2020 1,200 1,200 5⅛% Senior Secured Notes due 2018 - 700 5⅛% Senior Secured Notes due 2021 1,000 1,000 6⅞% Senior Notes due 2022 3,000 3,000 6¼% Senior Secured Notes due 2023 3,100 - Receivables Facility 600 677 Capital lease obligations 285 328 Other 62 74 Less: Unamortized deferred debt issuance costs and note premium (195) (193) Total debt 14,748 15,244 Less: Current maturities (46) (455) Total long-term debt $ 14,702 $ 14,789 Credit Facility The Company’s wholly-owned subsidiary, CHS, has senior secured financing under a credit facility with a syndicate of financial institutions led by Credit Suisse, as administrative agent and collateral agent. In connection with the HMA merger, the Company and CHS entered into a third amendment and restatement of its credit facility (the “Credit Facility”), providing for additional financing and recapitalization of certain of the Company’s term loans, including (i) the replacement of the revolving credit facility with a new $1.0 billion revolving facility maturing in 2019 (the “Revolving Facility”), (ii) the addition of a new $1.0 billion Term A facility due 2019 (the “Term A Facility”), (iii) a Term D facility in an aggregate principal amount equal to approximately $4.6 billion due 2021 (which included certain term C loans that were converted into such Term D facility (collectively, the “Term D Facility”)), (iv) the conversion of certain term C loans into Term E Loans and the borrowing of new Term E Loans in an aggregate principal amount of approximately $1.7 billion due 2017 and (v) the addition of flexibility commensurate with the Company’s post-acquisition structure. In addition to funding a portion of the consideration in connection with the HMA m erger, some of the proceeds of the Term A Facility and Term D Facility were used to refinance the outstanding $637 million existing term A facility due 2016 and the $60 million of term B loans due 2014, respectively. The Revolving Facility includes a subfacility for letters of credit. On March 9, 2015, CHS entered into Amendment No. 1 and Incremental Term Loan Assumption Agreement to refinance the existing Term E Loans due 2017 into Term F Loans due 2018, in an original aggregated principal amount of $1.7 billion (the “Term F Facility”). On May 18, 2015, CHS entered into an Incremental Term Loan Assumption Agreement to provide for a new $1.6 billion incremental Term G facility due 2019 (the “Term G Facility”) and a new approximately $2.9 billion incremental Term H facility due 2021 (the “Term H Facility”). The proceeds of the Term G Facility and Term H Facility were used to repay the Company’s existing Term D Facility in full. Pursuant to a special distribution paid by QHC to the Company as part of the series of transactions to complete the spin-off, the Company received approximately $1.2 billion in cash generated from the net proceeds of certain financing arrangements entered into by QHC as part of the separation. On April 29, 2016, using part of the cash generated from the QHC spin-off, the Company repaid approximately $190 million of its Term F Facility. On December 5, 2016, CHS entered into Amendment No. 2 to the Credit Facility (“Amendment No. 2”) to adjust financial maintenance covenants in the Credit Facility. In connection with Amendment No. 2, the Company agreed to certain other additional undertakings for the benefit of the lenders under the Revolving Facility and the Term A Facility. On December 30, 2016, using the cash generated from the sale of a majority ownership in the Company’s home care division and from the completion of the sale-lease back transaction for ten of the Company’s owned medical office buildings, the Company repaid approximately $48 million of the Term F Facility, approximately $26 million of the Term A Facility, approximately $52 million of the Term G Facility and $96 million of the Term H Facility. On March 16, 2017, CHS issued a $2.2 billion aggregate principal 6¼% Senior Secured Notes due 2023 (the “6¼% Senior Secured Notes”), a portion of the net proceeds of which was used to repay the Company’s existing Term F Facility in full. On May 4, 2017, using the cash generated from the hospital divestiture transactions completed on May 1, 2017, CHS repaid approximately $39 million of the Term A Facility, approximately $75 million of the Term G Facility and $147 million of the Term H Facility. On May 12, 2017, CHS completed a tack-on offering of $900 million aggregate principal amount of 6¼% Senior Secured Notes, a portion of the net proceeds of which was used to repay the Company’s existing Term A Facility in full. The tack-on offering increased the total aggregate principal amount of 6¼% Senior Secured Notes to $3.1 billion. On May 30, 2017, CHS entered into a Loan Modification Agreement to the Credit Facility (“Loan Modification Agreement”) to extend the maturity date of the Revolving Facility. Following the Loan Modification Agreement, CHS has Revolving Facility commitments through January 27, 2019 of approximately $929 million, of which a $739 million portion represents extended commitments maturing January 27, 2021. In connection with the Loan Modification Agreement, the financial maintenance covenants in the Credit Facility were further adjusted and CHS agreed to certain other additional undertakings for the benefit of the extending Revolving Facility lenders. On June 30, 2017, using a portion of the cash generated from the July 1, 2017 hospital divestitures that preliminarily closed on June 30, 2017, CHS repaid approximately $122 million of the Term G Facility and $225 million of the Term H Facility. The loans under the Credit Facility bear interest on the outstanding unpaid principal amount at a rate equal to an applicable percentage plus, at CHS’ option, either (a) an Alternate Base Rate (as defined) determined by reference to the greater of (1) the Prime Rate (as defined) announced by Credit Suisse or (2) the Federal Funds Effective Rate (as defined) plus 0.50% or (3) the adjusted London Interbank Offered Rate (“LIBOR”) on such day for a three-month interest period commencing on the second business day after such day plus 1% or (b) LIBOR. In addition, the margin in respect of the Revolving Facility will be subject to adjustment determined by reference to a leverage-based pricing grid. Loans in respect of the Revolving Facility currently accrue interest at a rate per annum equal to LIBOR plus 2.50% , in the case of LIBOR borrowings, and Alternate Base Rate plus 1.50% , in the case of Alternate Base Rate borrowings. The Term G Loan and Term H Loan will accrue interest at a rate per annum equal to LIBOR plus 2.75% and 3.00% , respectively, in the case of LIBOR borrowings, and Alternate Base Rate plus 1.75% and 2.00% , respectively, in the case of Alternate Base Rate borrowings. The Term G Loan and the Term H Loan are subject to a 1.00% LIBOR floor and a 2.00% Alternate Base Rate floor. Under the Term H Facility, CHS is required to make amortization payments in aggregate amounts equal to 1% of the original principal amount of the Term H Facility each year. As of December 31, 2016, no additional amortization payments were required to be made under the Term G Facility. The term loan facility must be prepaid in an amount equal to (1) 100% of the net cash proceeds of certain asset sales and dispositions by the Company and its subsidiaries, subject to certain exceptions and reinvestment rights (provided that, in connection with the Loan Modification Agreement, CHS agreed with the extending lenders under the Revolving Facility not to exercise such reinvestment rights with respect to certain announced divestitures), (2) 100% of the net cash proceeds of issuances of certain debt obligations or receivables-based financing by the Company and its subsidiaries, subject to certain exceptions, and (3) 50% , subject to reduction to a lower percentage based on the Company’s leverage ratio (as defined in the Credit Facility generally as the ratio of total debt on the date of determination to the Company’s EBITDA, as defined, for the four quarters most recently ended prior to such date), of excess cash flow (as defined) for any year, subject to certain exceptions. Voluntary prepayments and commitment reductions are permitted in whole or in part, without any premium or penalty, subject to minimum prepayment or reduction requirements. The borrower under the Credit Facility is CHS. All of the obligations under the Credit Facility are unconditionally guaranteed by the Company and certain of its existing and subsequently acquired or organized domestic subsidiaries. All obligations under the Credit Facility and the related guarantees are secured by a perfected first priority lien or security interest in substantially all of the assets of the Company, CHS and each subsidiary guarantor, including equity interests held by the Company, CHS or any subsidiary guarantor, but excluding, among others, the equity interests of non-significant subsidiaries, syndication subsidiaries, securitization subsidiaries and joint venture subsidiaries. Such assets constitute substantially the same assets, subject to certain exceptions, that secure CHS’ obligations under the 2021 Senior Secured Notes (as defined below) and the 6¼% Senior Secured Notes. CHS has agreed to pay letter of credit fees equal to the applicable percentage then in effect with respect to LIBOR borrowings under the Revolving Facility times the maximum aggregate amount available to be drawn under all letters of credit outstanding under the subfacility for letters of credit. The issuer of any letter of credit issued under the subfacility for letters of credit will also receive a customary fronting fee and other customary processing charges. CHS is obligated to pay commitment fees of 0.50% per annum (subject to adjustment based upon the Company’s leverage ratio) on the unused portion of the Revolving Facility. The Credit Facility contains customary representations and warranties, subject to limitations and exceptions, and customary covenants restricting the Company’s and its subsidiaries’ 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) make capital expenditures, (7) engage in mergers, acquisitions and asset sales, (8) conduct transactions with affiliates, (9) alter the nature of the Company’s businesses, (10) grant certain guarantees with respect to physician practices, (11) engage in sale and leaseback transactions or (12) change the Company’s fiscal year. The Company is also required to comply with specified financial covenants (consisting of a maximum secured net leverage ratio and an interest coverage ratio) and various affirmative covenants. Under the Credit Facility, the secured net leverage ratio is calculated as the ratio of total secured debt, less unrestricted cash and cash equivalents, to consolidated EBITDA, as defined in the Credit Facility, and the interest coverage ratio is the ratio of consolidated EBITDA, as defined in the Credit Facility, to consolidated interest expense for the period. The calculation of consolidated EBITDA as defined in the Credit Facility is a trailing 12-month calculation that begins with net income attributable to the Company, with certain pro forma adjustments to consider the impact of material acquisitions or divestitures, and 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. For the 12-month period ended June 30, 2017, the secured net leverage ratio financial covenant in the Credit Facility limited the ratio of secured debt to EBITDA, as defined, to less than or equal to 4.50 to 1.00. The secured net leverage ratio financial covenant will decrease to 4.25 to 1.00 for the period January 1, 2020 through September 30, 2020, then to 4.00 to 1.00 thereafter. For the 12-month period ended June 30, 2017, the interest coverage ratio financial covenant in the Credit Facility required the ratio of consolidated EBITDA, as defined, to consolidated interest expense to be greater than or equal to 1.75 to 1.00, which will increase to 2.00 to 1.00 on January 1, 2018 (and for all periods thereafter). The Company was in compliance with all such covenants at June 30, 2017, with a secured net leverage ratio of approximately 3.82 to 1.00 and an interest coverage ratio of approximately 2.36 to 1.00. Events of default under the Credit Facility include, but are not limited to, (1) CHS’ failure to pay principal, interest, fees or other amounts under the credit agreement when due (taking into account any applicable grace period), (2) any representation or warranty proving to have been materially incorrect when made, (3) covenant defaults subject, with respect to certain covenants, to an available cure through the issuance of qualified equity for a period of 60 days after the end of the first three quarters and 100 days after a year end, (4) bankruptcy and insolvency events, (5) a cross default to certain other debt, (6) certain undischarged judgments (not paid within an applicable grace period), (7) a change of control (as defined), (8) certain ERISA-related defaults and (9) the invalidity or impairment of specified security interests, guarantees or subordination provisions in favor of the administrative agent or lenders under the Credit Facility. As of June 30, 2017, the availability for additional borrowings under the Credit Facility, subject to certain limitations as set forth in the Credit Facility, was approximately $929 million pursuant to the Revolving Facility (which amount shall reduce to $739 million on January 27, 2019), of which $71 million is in the form of outstanding letters of credit. CHS has the ability to amend the Credit Facility to provide for one or more tranches of term loans or increases in the Revolving Facility in an aggregate principal amount of up to $1.5 billion, only $750 million of which is effectively available because of the Company’s additional undertakings in connection with Amendment No. 2. As of June 30, 2017, the weighted-average interest rate under the Credit Facility, excluding swaps, was 6.3% . 8% Senior Notes due 2019 On November 22, 2011 , CHS completed a private offering of $1.0 billion aggregate principal amount of 8% Senior Notes due 2019 (the “8% Senior Notes”). The net proceeds from this issuance, together with available cash on hand, were used to finance the purchase of up to $1.0 billion aggregate principal amount of CHS’ then outstanding 8⅞% Senior Notes due 2015 and related fees and expenses. On March 21, 2012 , CHS completed an offering of an additional $1.0 billion aggregate principal amount of 8% Senior Notes, which were issued in a private placement (at a premium of 102.5% ). The net proceeds from this issuance were used to finance the purchase of approximately $850 million aggregate principal amount of CHS’ then outstanding 8⅞% Senior Notes due 2015, to pay related fees and expenses and for general corporate purposes. The 8% Senior Notes bear interest at 8% per annum, payable semiannually in arrears on May 15 and November 15. Interest on the 8% Senior Notes accrues from the date of original issuance. Interest is calculated on the basis of a 360-day year comprised of twelve 30-day months. CHS is entitled, at its option, to redeem all or a portion of the 8% Senior Notes upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the periods set forth below: Period Redemption Price November 15, 2016 to November 14, 2017 102.000 % November 15, 2017 to November 14, 2019 100.000 % Pursuant to a registration rights agreement entered into at the time of the issuance of the 8% Senior Notes, as a result of an exchange offer made by CHS, substantially all of the 8% Senior Notes issued in November 2011 and March 2012 were exchanged in May 2012 for new notes (the “8% Exchange Notes”) having terms substantially identical in all material respects to the 8% Senior Notes (except that the 8% Exchange Notes were issued under a registration statement pursuant to the Securities Act of 1933, as amended (the “1933 Act”)). References to the 8% Senior Notes shall also be deemed to include the 8% Exchange Notes unless the context provides otherwise. During the year ended December 31, 2016, the Company repurchased approximately $75 million of aggregate principal amount of outstanding 8% Senior Notes in open market transactions. 7⅛% Senior Notes due 2020 On July 18, 2012 , CHS completed a public offering of 7⅛% Senior Notes due 2020 (the “7⅛% Senior Notes”). The net proceeds from this issuance were used to finance the purchase or redemption of $934 million aggregate principal amount of CHS’ then outstanding 8⅞% Senior Notes due 2015, to pay for consents delivered in connection with a related tender offer, to pay related fees and expenses, and for general corporate purposes. The 7⅛% Senior Notes bear interest at 7.125% per annum, payable semiannually in arrears on July 15 and January 15. Interest on the 7⅛% Senior Notes accrues from the date of original issuance. Interest is calculated on the basis of a 360-day year comprised of twelve 30-day months. CHS is entitled, at its option, to redeem all or a portion of the 7⅛% Senior Notes upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the periods set forth below: Period Redemption Price July 15, 2017 to July 14, 2018 101.781 % July 15, 2018 to July 14, 2020 100.000 % 5⅛% Senior Secured Notes due 2018 On August 17, 2012 , CHS completed a public offering of 5⅛ % Senior Secured Notes due 2018 (the “2018 Senior Secured Notes”). The net proceeds from this issuance, together with available cash on hand, were used to finance the prepayment of $1.6 billion of the then outstanding term loans due 2014 under the Credit Facility and related fees and expenses. The 2018 Senior Secured Notes bore interest at 5.125% per annum, payable semiannually in arrears on August 15 and February 15. The 2018 Senior Secured Notes were secured by a first-priority lien subject to a shared lien of equal priority with certain other obligations, including obligations under the Credit Facility and the 2021 Senior Secured Notes, and subject to prior ranking liens permitted by the indenture governing the 2018 Senior Secured Notes on substantially the same assets, subject to certain exceptions, that secure CHS’ obligations under the Credit Facility and the 2021 Senior Secured Notes. CHS was entitled, at its option, to redeem all or a portion of the 2018 Senior Secured Notes upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the periods set forth below: Period Redemption Price August 15, 2016 to August 14, 2017 101.281 % August 15, 2017 to August 14, 2018 100.000 % On May 16, 2016, using part of the cash generated from the QHC spin-off, the Company completed a cash tender offer for $900 million aggregate principal amount outstanding of the 2018 Senior Secured Notes. During the six months ended June 30, 2017, using a portion of the net proceeds from the issuance of the 6¼% Senior Secured Notes, CHS completed its tender offer of $469 million of the then $700 million aggregate outstanding principal amount of the 2018 Senior Secured Notes and thereafter redeemed the remaining $231 million aggregate principal amount of 2018 Senior Secured Notes pursuant to a redemption notice previously given by CHS. 5⅛% Senior Secured Notes due 2021 On January 27, 2014 , CHS completed a private offering of $1.0 billion aggregate principal amount of 5⅛% Senior Secured Notes due 2021 (the “2021 Senior Secured Notes”). The net proceeds from this issuance were used to finance the HMA merger. The 2021 Senior Secured Notes bear interest at 5.125% per annum, payable semiannually in arrears on February 1 and August 1. Interest on the 2021 Senior Secured Notes accrues from the date of original issuance. Interest is calculated on the basis of a 360-day year comprised of twelve 30-day months. The 2021 Senior Secured Notes are secured by a first-priority lien, subject to a shared lien of equal priority with certain other obligations, including obligations under the Credit Facility and the 6¼% Senior Secured Notes, and subject to prior ranking liens permitted by the indenture governing the 2021 Senior Secured Notes, on substantially the same assets, subject to certain exceptions, that secure CHS’ obligations under the Credit Facility and the 6¼% Senior Secured Notes. CHS is entitled, at its option, to redeem all or a portion of the 2021 Senior Secured Notes upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the periods set forth below: Period Redemption Price February 1, 2017 to January 31, 2018 103.844 % February 1, 2018 to January 31, 2019 102.563 % February 1, 2019 to January 31, 2020 101.281 % February 1, 2020 to January 31, 2021 100.000 % Pursuant to a registration rights agreement entered into at the time of the issuance of the 2021 Senior Secured Notes, as a result of an exchange offer made by CHS, all of the 2021 Senior Secured Notes issued in January 2014 were exchanged in October 2014 for new notes (the “2021 Exchange Notes”) having terms substantially identical in all material respects to the 2021 Senior Secured Notes (except that the exchange notes were issued under a registration statement pursuant to the 1933 Act). References to the 2021 Senior Secured Notes shall be deemed to be the 2021 Exchange Notes unless the context provides otherwise. 6⅞% Senior Notes due 2022 On January 27, 2014 , CHS completed a private offering of $3.0 billion aggregate principal amount of 6⅞% Senior Notes due 2022 (the “6⅞% Senior Notes”). The net proceeds from this issuance were used to finance the HMA merger. The 6⅞% Senior Notes bear interest at 6.875% per annum, payable semiannually in arrears on February 1 and August 1. Interest on the 6⅞% Senior Notes accrues from the date of original issuance. Interest is calculated on the basis of a 360-day year comprised of twelve 30-day months. Prior to February 1, 2018 , CHS may redeem some or all of the 6⅞% Senior Notes at a redemption price equal to 100% of the principal amount of the notes redeemed plus accrued and unpaid interest, if any, plus a “make-whole” premium, as described in the indenture governing the 6⅞% Senior Notes. A fter February 1, 201 8, CHS is entitled, at its option, to redeem all or a portion of the 6⅞% Senior Notes upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the periods set forth below: Period Redemption Price February 1, 2018 to January 31, 2019 103.438 % February 1, 2019 to January 31, 2020 101.719 % February 1, 2020 to January 31, 2022 100.000 % Pursuant to a registration rights agreement entered into at the time of the issuance of the 6⅞% Senior Notes, as a result of an exchange offer made by CHS, all of the 6⅞% Senior Notes issued in January 2014 were exchanged in October 2014 for new notes (the “6⅞% Exchange Notes”) having terms substantially identical in all material respects to the 6⅞% Senior Notes (except that the exchange notes were issued under a registration statement pursuant to the 1933 Act). References to the 6⅞% Senior Notes shall be deemed to be the 6⅞% Exchange Notes unless the context provides otherwise. 6¼% Senior Secured Notes due 2023 On March 16, 2017, CHS completed a public offering of $2.2 billion aggregate principal amount of 6¼% Senior Secured Notes. The net proceeds from this issuance were used to finance the purchase or redemption of $700 million aggregate principal amount of CHS’ then outstanding 2018 Senior Secured Notes and related fees and expenses, and the repayment of $1.445 billion of the Term F Facility. On May 12, 2017, CHS completed a tack-on offering of $900 million aggregate principal amount of 6¼% Senior Secured Notes, increasing the total aggregate principal amount of 6¼% Senior Secured Notes to $3.1 billion. A portion of the net proceeds from this issuance were used to finance the repayment of approximately $713 million aggregate principal amount of CHS’ then outstanding Term A Facility and related fees and expenses. The tack-on notes have identical terms, other than issue date and issue price as the 6¼% Senior Secured Notes issued on March 16, 2017. The 6¼% Senior Secured Notes bear interest at 6.250% per annum, payable semiannually in arrears on March 31 and September 30, commencing September 30, 2017. Interest on the 6¼% Senior Secured Notes accrues from the date of original issuance. Interest is calculated on the basis of a 360-day year comprised of twelve 30-day months. The 6¼% Senior Secured Notes are secured by a first-priority lien subject to a shared lien of equal priority with certain other obligations, including obligations under the Credit Facility and the 2021 Senior Secured Notes, and subject to prior ranking liens permitted by the indenture governing the 6¼% Senior Secured Notes on substantially the same assets, subject to certain exceptions, that secure CHS’ obligations under the Credit Facility and the 2021 Senior Secured Notes. CHS is entitled, at its option, to redeem all or a portion of the 6¼% Senior Secured Notes at any time prior to March 31, 2020, upon not less than 30 nor more than 60 days’ notice, at a price equal to 100% of the principal amount of the 6¼% Senior Secured Notes redeemed plus accrued and unpaid interest, if any, plus a “make-whole” premium, as described in the indenture governing the 6¼% Senior Secured Notes. In addition, CHS may redeem up to 40% of the aggregate principal amount of the 6¼% Senior Secured Notes at any time prior to March 31, 2020 using the net proceeds from certain equity offerings at the redemption price of 106.250% of the principal amount of the 6¼% Senior Secured Notes redeemed, plus accrued and unpaid interest, if any. CHS may redeem some or all of the 6¼% Senior Secured Notes at any time on or after March 31, 2020 upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as a percentage of principal amount on the redemption date), plus accrued and unpaid interest, if any, to the redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the periods set forth below: Period Redemption Price March 31, 2020 to March 30, 2021 103.125 % March 31, 2021 to March 30, 2022 101.563 % March 31, 2022 to March 30, 2023 100.000 % Receivables Facility On March 21, 2012 , through certain of its subsidiaries, CHS entered into an accounts receivable loan agreement (the “Receivables Facility”) with a group of lenders and banks, Credit Agricolé Corporate and Investment Bank, as a managing agent and as the administrative agent, and The Bank of Nova Scotia, as a managing agent. On March 7, 2013 , CHS and certain of its subsidiaries amended the Receivables Facility to add an additional managing agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd., to increase the size of the facility from $300 million to $500 million and to extend the scheduled termination date. Additional subsidiaries also agreed to participate in the Receivables Facility as of that date. On March 31, 2014, CHS and certain of its subsidiaries amended the Receivables Facility to increase the size of the facility from $500 million to $700 million and to extend the scheduled termination date. Additional subsidiaries also agreed to participate in the Receivables Facility as of that date. On November 18, 2016 , CHS and certain of its subsidiaries amended the Receivables Facility to extend the scheduled termination date in respect of a $450 million portion of the commitments thereunder and amend certain other provisions thereof. On June 23, 2017, CHS and certain of its subsidiaries amended the Receivables Facility to replace a managing agent, The Bank of Tokyo-Mitsubishi UFJ, Ltd. with PNC Bank, National Association, to decrease the size of the facility from $700 million to $600 million and to extend the scheduled termination date in respect of $150 million of the $250 million portion to expire on November 13, 2018 coterminous with the remaining commitments. The remaining $100 million was repaid with available cash on hand. The existing and future non-self pay patient-related accounts receivable (the “Receivables”) for certain affiliated hospitals serve as collateral for the outstanding borrowings under the Receivables Facility. The interest rate on the borrowings is based on the commercial paper rate plus an applicable interest rate spread. Unless earlier terminated or subsequently extended pursuant to its terms, the Receivables Facility will expire on November 13, 2018 in respect of the $600 million of commitments thereunder, subject to customary termination events that could cause an early termination date. CHS maintains effective control over the Receivables because, pursuant to the terms of the Receivables Facility, the Receivables are sold from certain of CHS’ subsidiaries to CHS, and CHS then sells or contributes the Receivables to a special-purpose entity that is wholly-owned by CHS. The wholly-owned special-purpose entity in turn grants security interests in the Receivables in exchange for borrowings obtained from the group of third-party lenders and banks of up to $600 million outstanding from time to time based on the availability of eligible Receivables and other customary factors. The wholly-owned special-purpose entity is not a subsidiary guarantor under the Credit Facility or CHS’ outstanding notes. The group of third-party lenders and banks do not have recourse to CHS or its subsidiaries beyond the assets of the wholly-owned special-purpose entity that collateralizes the loan. The Receivables and other assets of the wholly-owned special-purpose entity will be available first and foremost to satisfy the claims of the creditors of such entity. The outstanding borrowings pursuant to the Receivables Facility at June 30, 2017 totaled $600 million on the condensed consolidated balance sheet. At June 30, 2017, the carrying amount of Receivables included in the Receivables Facility totaled approximately $1.7 billion and is included in patient accounts receivable on |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments Disclosure | 0 13. 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, 2017 and December 31, 2016, 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, 2017 December 31, 2016 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Assets: Cash and cash equivalents $ 768 $ 768 $ 238 $ 238 Available-for-sale securities 309 309 299 299 Trading securities 53 53 80 80 Liabilities: Contingent Value Right 5 5 1 1 Credit Facility 3,718 3,769 6,456 6,370 8% Senior Notes 1,921 1,942 1,920 1,615 7⅛% Senior Notes 1,190 1,173 1,189 917 5⅛% Senior Secured Notes due 2018 - - 698 690 5⅛% Senior Secured Notes due 2021 975 1,015 972 930 6⅞% Senior Notes 2,937 2,622 2,932 2,102 6¼% Senior Secured Notes 3,061 3,216 - - Receivables Facility and other debt 661 661 749 749 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 14 . 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 from the administrative agent to the Credit Facility to determine fair values or through publicly available subscription services such as Bloomberg 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). Available-for-sale 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. Contingent Value Right . Estimated fair value is based on the closing price as quoted on the public market where the CVR is traded. Credit Facility. Estimated fair value is based on publicly available trading activity and supported with information from the Company’s bankers regarding relevant pricing for trading activity among the Company’s lending institutions. 8% Senior Notes. Estimated fair value is based on the closing market price for these notes. 7⅛% Senior Notes. Estimated fair value is based on the closing market price for these notes. 5⅛% Senior Secured Notes due 2018. Estimated fair value is based on the closing market price for these notes. 5⅛% Senior Secured Notes due 2021. Estimated fair value is based on the closing market price for these notes. 6⅞% Senior Notes. Estimated fair value is based on the closing market price for these notes. 6¼% Senior Secured Notes. Estimated fair value is based on the closing market price for these notes. Receivables Facility and other debt. The carrying amount of the Receivables Facility and all other debt approximates fair value due to the nature of these obligations. Interest rate swaps. The fair value of interest rate swap agreements is the amount at which they could be settled, based on estimates calculated by the Company using a discounted cash flow analysis based on observable market inputs and validated by comparison to estimates obtained from the counterparty. The Company incorporates credit valuation adjustments (“CVAs”) to appropriately reflect both its own nonperformance or credit risk and the respective counterparty’s nonperformance or credit risk in the fair value measurements. In adjusting the fair value of its interest rate swap agreements for the effect of nonperformance or credit risk, the Company has considered the impact of any netting features included in the agreements. The Company assesses the effectiveness of its hedge instruments on a quarterly basis. For the six months ended June 30, 2017 and 2016, the Company completed an assessment of the cash flow hedge instruments and determined the hedges to be highly effective. The Company has also determined that the ineffective portion of the hedges do not have a material effect on the Company’s condensed consolidated financial position, operations or cash flows. The counterparties to the interest rate swap agreements expose the Company to credit risk in the event of nonperformance. However, at June 30, 2017, all of the swap agreements entered into by the Company were in a net liability position such that the Company would be required to make the net settlement payments to the counterparties; the Company does not anticipate nonperformance by those counterparties. The Company does not hold or issue derivative financial instruments for trading purposes. Interest rate swaps consisted of the following at June 30, 2017: Swap # Notional Amount (in millions) Fixed Interest Rate Termination Date Fair Value (in millions) 1 $ 400 1.882 % August 30, 2019 $ 2 2 200 2.515 % August 30, 2019 4 3 200 2.613 % August 30, 2019 4 4 300 2.041 % August 30, 2020 2 5 300 2.738 % August 30, 2020 9 6 300 2.892 % August 30, 2020 10 7 300 2.363 % January 27, 2021 5 8 200 2.368 % January 27, 2021 4 The Company is exposed to certain risks relating to its ongoing business operations. The risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to manage interest rate fluctuation risk associated with the term loans in the Credit Facility. Companies are required to recognize all derivative instruments as either assets or liabilities at fair value in the condensed consolidated statement of financial position. The Company designates its interest rate swaps as cash flow hedges. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. Assuming no change in June 30, 2017 interest rates, approximately $28 million of interest expense resulting from the spread between the fixed and floating rates defined in each interest rate swap agreement will be recognized during the next 12 months. If interest rate swaps do not remain highly effective as a cash flow hedge, the derivatives’ gains or losses resulting from the change in fair value reported through OCI will be reclassified into earnings. The following tabular disclosure provides the amount of pre-tax loss recognized as a component of OCI during the three and six months ended June 30, 2017 and 2016 (in millions): Amount of Pre-Tax Loss Recognized in OCI (Effective Portion) Derivatives in Cash Flow Hedging Relationships Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest rate swaps $ (8) $ (18) $ (8) $ (62) The following tabular disclosure provides the location of the effective portion of the pre-tax loss reclassified from accumulated other comprehensive loss (“AOCL”) into interest expense on the condensed consolidated statements of loss during the three and six months ended June 30, 2017 and 2016 (in millions): Amount of Pre-Tax Loss Reclassified Location of Loss Reclassified from from AOCL into Income (Effective Portion) AOCL into Income (Effective Portion) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest expense, net $ 8 $ 16 $ 17 $ 30 The fair values of derivative instruments in the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016 were as follows (in millions): Asset Derivatives Liability Derivatives June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Balance Balance Balance Balance Sheet Sheet Sheet Sheet Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as Other Other Other Other hedging assets, assets, long-term long-term instruments net $ - net $ - liabilities $ 40 liabilities $ 49 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value [Abstract] | |
Fair Value Disclosure | 14. 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-month periods ending June 30, 2017 or June 30, 2016 . 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, 2017 and December 31, 2016 (in millions): June 30, 2017 Level 1 Level 2 Level 3 Available-for-sale securities $ 309 $ 171 $ 138 $ - Trading securities 53 53 - - Total assets $ 362 $ 224 $ 138 $ - Contingent Value Right (CVR) $ 5 $ 5 $ - $ - CVR-related liability 260 - - 260 Fair value of interest rate swap agreements 40 - 40 - Total liabilities $ 305 $ 5 $ 40 $ 260 December 31, 2016 Level 1 Level 2 Level 3 Available-for-sale securities $ 299 $ 163 $ 136 $ - Trading securities 80 80 - - Total assets $ 379 $ 243 $ 136 $ - Contingent Value Right (CVR) $ 1 $ 1 $ - $ - CVR-related liability 252 - - 252 Fair value of interest rate swap agreements 49 - 49 - Total liabilities $ 302 $ 1 $ 49 $ 252 Available-for-sale Securities Available-for-sale securities and trading securities classified as Level 1 are measured using quoted market prices. Level 2 available-for-sale securities primarily consisted 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. Contingent Value Right (CVR) The CVR represents the estimate of the fair value for the contingent consideration paid to HMA shareholders as part of the HMA merger. The CVR is listed on the NASDAQ and the valuation at June 30, 2017 is based on the quoted trading price for the CVR on the last day of the period. Changes in the estimated fair value of the CVR are recorded through the condensed consolidated statements of loss. CVR-related Liability The CVR-related legal liability represents the Company’s estimate of fair value at June 30, 2017 of the liability associated with the legal matters assumed in the HMA merger, which are included in other long-term liabilities in the accompanying condensed consolidated balance sheet. This liability did not include those matters previously accrued by HMA as a probable contingency, which were settled and paid during the year ended December 31, 2015. To develop the estimate of fair value, the Company engaged an independent third-party valuation firm to measure the liability. The valuation was made utilizing the Company’s estimates of future outcomes for each legal case and simulating future outcomes based on the timing, probability and distribution of several scenarios using a Monte Carlo simulation model. Other inputs were then utilized for discounting the liability to the measurement date. The HMA legal matters underlying this fair value estimate were evaluated by management to determine the likelihood and impact of each of the potential outcomes. Using that information, as well as the potential correlation and variability associated with each case, a fair value was determined for the estimated future cash outflows to conclude or settle the HMA legal matters included in the analysis, excluding legal fees (which are expensed as incurred). Because of the unobservable nature of the majority of the inputs used to value the liability, the Company has classified the fair value measurement as a Level 3 measurement in the fair value hierarchy. The fair value of the CVR-related legal liability will be measured each reporting period using similar measurement techniques, updated for the assumptions and facts existing at that date for each of the underlying legal matters. Changes in the fair value of the CVR related legal liability are recorded in future periods through the condensed consolidated statements of loss. Fair Value of Interest Rate Swap Agreements The valuation of the Company’s interest rate swap agreements is determined using market valuation techniques, including discounted cash flow analysis on the expected cash flows of each agreement. This analysis reflects the contractual terms of the agreement, including the period to maturity, and uses observable market-based inputs, including forward interest rate curves. The fair value of interest rate swap agreements are determined by netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on the expectation of future interest rates based on observable market forward interest rate curves and the notional amount being hedged. The Company incorporates CVAs to appropriately reflect both its own nonperformance or credit risk and the respective counterparty’s nonperformance or credit risk in the fair value measurements. In adjusting the fair value of its interest rate swap agreements for the effect of nonperformance or credit risk, the Company has considered the impact of any netting features included in the agreements. The CVA on the Company’s interest rate swap agreements resulted in a decrease in the fair value of the related liability of $2 million and an after-tax adjustment of $1 million to OCI at June 30, 2017. The CVA on the Company’s interest rate swap agreements resulted in a decrease in the fair value of the related liability of $3 million and an after-tax adjustment of $2 million to OCI at December 31, 2016. The majority of the inputs used to value the Company’s interest rate swap agreements, including the forward interest rate curves and market perceptions of the Company’s credit risk used in the CVAs, are observable inputs available to a market participant. As a result, the Company has determined that the interest rate swap valuations are classified in Level 2 of the fair value hierarchy. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans Disclosure | 15. EMPLOYEE BENEFIT PLANS The Company provides an unfunded Supplemental Executive Retirement Plan (“SERP”) for certain members of its executive management. The Company uses a December 31 measurement date for the benefit obligations and a January 1 measurement date for its net periodic costs for the SERP. Variances from actuarially assumed rates will result in increases or decreases in benefit obligations and net periodic cost in future periods. Benefits expense under the SERP was $3 million for both the three-month periods ended June 30, 2017 and 2016, and $7 million and $6 million for the six months ended June 30, 2017 and 2016, respectively. The accrued benefit liability for the SERP totaled $126 million and $122 million at June 30, 2017 and December 31, 2016, respectively, and is included in other long-term liabilities on the condensed consolidated balance sheets. The weighted-average assumptions used in determining net periodic cost for the three and six-month periods ended June 30, 2017 was a discount rate of 3.55% and annual salary increase of 2.00% . The Company had available-for-sale securities in a rabbi trust generally designated to pay benefits of the SERP in the amounts of $137 million and $131 million at June 30, 2017 and December 31, 2016, respectively. These amounts are included in other assets, net on the condensed consolidated balance sheets. During the six months ended June 30, 2017, certain members of executive management of the Company that were participants in the SERP retired and met the requirements for payout of their SERP retirement benefit. The SERP payout provisions require payment to the participant in an actuarially determined lump sum amount six months after the participant retires from the Company. Such amounts will be paid out of the rabbi trust during the latter half of 2017. As required by the pension accounting rules in U.S. GAAP, the Company will recognize a non-cash settlement loss of approximately $6 million during the second half of 2017 that represents a pro-rata portion of the accumulated unrecognized actuarial loss out of accumulated other comprehensive loss. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information [Abstract] | |
Segment Information Disclosure | 16. SEGMENT INFORMATION The Company operates in one distinct operating segment, represented by hospital operations (which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services). Prior to the Company’s sale on December 31, 2016 of 80% of its ownership interest in the home care division, the Company also had an additional distinct operating segment represented by its home care agency operations (which provided in-home care). However, only the hospital operations segment met the criteria as a separate reportable segment due to the fact that the financial information for the home care agency segment did not meet the quantitative thresholds for a separate identifiable reportable segment and as such was combined into the corporate and all other reportable segment. The distribution between reportable segments of the Company’s net operating revenues and loss from continuing operations before income taxes, for the three and six months ended June 30, 2016, prior to the sale of an 80% ownership interest in the home care division, is summarized in the following tables (in millions): Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Net operating revenues: Hospital operations $ 4,530 $ 9,475 Corporate and all other 60 114 Total $ 4,590 $ 9,589 Loss from continuing operations before income taxes: Hospital operations $ (1,452) $ (1,309) Corporate and all other (91) (171) Total $ (1,543) $ (1,480) |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity [Abstract] | |
Other Comprehensive Income Disclosure | 17. OTHER COMPREHENSIVE INCOME The following tables present information about items reclassified out of accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2017 and 2016 (in millions, net of tax): Change in Change in Fair Change in Fair Unrecognized Accumulated Other Value of Interest Value of Available Pension Cost Comprehensive Rate Swaps for Sale Securities Components Income (Loss) Balance as of March 31, 2017 $ (26) $ (7) $ (21) $ (54) Other comprehensive (loss) income before reclassifications (7) 2 - (5) Amounts reclassified from accumulated other comprehensive income 5 - 1 6 Net current-period other comprehensive (loss) income (2) 2 1 1 Balance as of June 30, 2017 $ (28) $ (5) $ (20) $ (53) Change in Change in Fair Change in Fair Unrecognized Accumulated Other Value of Interest Value of Available Pension Cost Comprehensive Rate Swaps for Sale Securities Components Income (Loss) Balance as of December 31, 2016 $ (31) $ (10) $ (21) $ (62) Other comprehensive (loss) income before reclassifications (8) 5 - (3) Amounts reclassified from accumulated other comprehensive income 11 - 1 12 Net current-period other comprehensive income 3 5 1 9 Balance as of June 30, 2017 $ (28) $ (5) $ (20) $ (53) Change in Change in Fair Change in Fair Unrecognized Accumulated Other Value of Interest Value of Available Pension Cost Comprehensive Rate Swaps for Sale Securities Components Income (Loss) Balance as of March 31, 2016 $ (67) $ 3 $ (25) $ (89) Other comprehensive loss before reclassifications (12) (3) - (15) Amounts reclassified from accumulated other comprehensive income 10 - 2 12 Net current-period other comprehensive (loss) income (2) (3) 2 (3) AOCI distributed to QHC in spin-off - - 2 2 Balance as of June 30, 2016 $ (69) $ - $ (21) $ (90) Change in Change in Fair Change in Fair Unrecognized Accumulated Other Value of Interest Value of Available Pension Cost Comprehensive Rate Swaps for Sale Securities Components Income (Loss) Balance as of December 31, 2015 $ (48) $ 1 $ (26) $ (73) Other comprehensive loss before reclassifications (40) (1) - (41) Amounts reclassified from accumulated other comprehensive income 19 - 3 22 Net current-period other comprehensive (loss) income (21) (1) 3 (19) AOCI distributed to QHC in spin-off - - 2 2 Balance as of June 30, 2016 $ (69) $ - $ (21) $ (90) The following tables present a subtotal for each significant reclassification to net income (loss) out of AOCL and the line item affected in the accompanying condensed consolidated statements of loss for the three and six months ended June 30, 2017 and 2016 (in millions): Amount reclassified from AOCL Affected line item in the Details about accumulated other Three Months Ended Six Months Ended statement where net comprehensive income (loss) components June 30, 2017 June 30, 2017 income (loss) is presented Gains and losses on cash flow hedges Interest rate swaps $ (8) $ (17) Interest expense, net 3 6 Tax benefit $ (5) $ (11) Net of tax Amortization of defined benefit pension items Prior service costs $ (1) $ (1) Salaries and benefits Actuarial losses - (1) Salaries and benefits (1) (2) Total before tax - 1 Tax benefit $ (1) $ (1) Net of tax Amount reclassified from AOCL Affected line item in the Details about accumulated other Three Months Ended Six Months Ended statement where net comprehensive income (loss) components June 30, 2016 June 30, 2016 income (loss) is presented Gains and losses on cash flow hedges Interest rate swaps $ (16) $ (30) Interest expense, net 6 11 Tax benefit $ (10) $ (19) Net of tax Amortization of defined benefit pension items Prior service costs $ - $ (1) Salaries and benefits Actuarial losses (2) (3) Salaries and benefits (2) (4) Total before tax - 1 Tax benefit $ (2) $ (3) Net of tax |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Contingencies [Abstract] | |
Contingencies Disclosure | 18. CO NTINGENCIES 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, including the matters described herein, will have a material adverse effect on the condensed 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. In connection with the spin-off of QHC, the Company agreed to indemnify QHC for certain liabilities relating to outcomes or events occurring prior to April 29, 2016, the closing date of the spin-off, including (i) certain claims and proceedings that were known to be outstanding at or prior to the consummation of the spin-off and involved multiple facilities and (ii) certain claims, proceedings and investigations by governmental authorities or private plaintiffs related to activities occurring at or related to QHC’s healthcare facilities prior to the closing date of the spin-off, but only to the extent, in the case of clause (ii), that such claims are covered by insurance policies maintained by the Company, including professional liability and employer practices. In this regard, the Company continues to be responsible for HMA Legal Matters (as defined below) covered by the CVR agreement that relate to QHC’s business, and any amounts payable by the Company in connection therewith will continue to reduce the amount payable by the Company in respect of the CVRs. Notwithstanding the foregoing, the Company is not required to indemnify QHC in respect of any claims or proceedings arising out of or related to the business operations of Quorum Health Resources, LLC at any time or QHC’s compliance with the corporate integrity agreement. Subsequent to the spin-off of QHC, the Office of the Inspector General provided the Company with written assurance that it would look solely at QHC for compliance for its facilities under the Company’s Corporate Integrity Agreement; however, the Office of the Inspector General declined to enter into a separate corporate integrity agreement with QHC. HMA Legal Matters and Related CVR The CVR agreement entitles the holder to receive a one-time cash payment of up to $1.00 per CVR, subject to downward adjustment based on the final resolution of certain litigation, investigations (whether formal or informal, including subpoenas), or other actions or proceedings related to HMA or its affiliates existing on or prior to July 29, 2013 (the date of the Company’s merger agreement with HMA) as more specifically provided in the CVR agreement (all such matters are referred to as the “HMA Legal Matters”), which include, but are not limited to, investigation and litigation matters as previously disclosed by HMA in public filings with the SEC and/or as described in more detail below. The adjustment reducing the ultimate amount paid to holders of the CVR is determined based on the amount of losses incurred by the Company in connection with the HMA Legal Matters as more specifically provided in the CVR agreement, which generally includes the amount paid for damages, costs, fees and expenses (including, without limitation, attorneys’ fees and expenses), and all fines, penalties, settlement amounts, indemnification obligations and other liabilities (all such losses are referred to as “HMA Losses”). If the aggregate amount of HMA Losses exceeds a deductible of $18 million, then the amount payable in respect of each CVR shall be reduced (but not below zero) by an amount equal to the quotient obtained by dividing: (a) the product of (i) all losses in excess of the deductible and (ii) 90% ; by (b) the number of CVRs outstanding on the date on which final resolution of the existing litigation occurs. There are 264,544,053 CVRs outstanding as of the date hereof. If total HMA Losses (including HMA Losses that have occurred to date as noted in the table below) exceed approximately $ 312 million, then the holders of the CVRs will not be entitled to any payment in respect of the CVRs. The CVRs do not have a finite payment date. Any payments the Company makes under the CVR agreement will be payable within 60 days after the final resolution of the HMA Legal Matters. The CVRs are unsecured obligations of CHS and all payments under the CVRs will be subordinated in right of payment to the prior payment in full of all of the Company’s senior obligations (as defined in the CVR agreement), which include outstanding indebtedness of the Company (subject to certain exceptions set forth in the CVR agreement) and the HMA Losses. The CVR agreement permits the Company to acquire all or some of the CVRs, whether in open market transactions, private transactions or otherwise. As of June 30, 2017, the Company had acquired no CVRs. The following table represents the impact of legal expenses paid or incurred and settlements paid or deemed final as of June 30, 2017 on the amounts owed to CVR holders (in millions): Allocation of Expenses and Settlements Paid Reduction to Total Expenses Company's Amount Owed and Settlement Responsibility to CVR Holders Cost Deductible at 10% at 90% As of December 31, 2016 $ 62 $ 18 $ 4 $ 40 Settlements paid - - - - Legal expenses incurred and/or paid during the six months ended June 30, 2017 1 - - 1 As of June 30, 2017 $ 63 $ 18 $ 4 $ 41 Amounts owed to CVR holders are dependent on the ultimate resolution of the HMA Legal Matters and determination of HMA Losses incurred. The settlement of any or all of the claims and expenses incurred on behalf of the Company in defending itself will (subject to the deductible) reduce the amounts owed to the CVR holders. Underlying the CVR agreement are a number of claims included in the HMA Legal Matters asserted against HMA. The Company has recorded a liability in connection with those claims as part of the acquired assets and liabilities at the date of acquisition pursuant to the provisions of Financial Accounting Standards Board Accounting Standards Codification Topic 805 “Business Combinations.” For the estimate of the Company’s liabilities associated with the HMA Legal Matters that will be covered by the CVR and were not previously accrued by HMA, the Company recorded a liability of $284 million as part of the acquisition accounting for the HMA merger based on the Company’s estimate of fair value of such liabilities as of the date of acquisition. There was a $8 million increase in the liability during the six months ended June 30, 2017 and the estimated fair value of such liabilities, after consideration of amounts paid and current estimates of valuation inputs, was $260 million as of June 30, 2017, which is recorded in other long-term liabilities on the accompanying condensed consolidated balance sheet. As of June 30, 2017, there is currently no accrual recorded for the probable contingency claims underlying the CVR agreement. The estimated liability for probable contingency claims underlying the CVR agreement that was previously recorded by HMA, and reflected in the purchase accounting for HMA as an acquired liability has been settled and was paid during the year ended December 31, 2015. In addition, although legal fees are not included in the amounts currently accrued, such legal fees are taken into account in determining HMA Losses under the CVR agreement. Certain significant HMA Legal Matters underlying these liabilities are discussed in greater detail below. HMA Matters Recorded at Fair Value Medicare/Medicaid Billing Lawsuits Beginning during the week of December 16, 2013, eleven qui tam lawsuits filed by private individuals against HMA were unsealed in various United States district courts. The United States has elected to intervene in all or part of eight of these matters; namely U.S. ex rel. Craig Brummer v. Health Management Associates, Inc. et al. (Middle District Georgia) (“Brummer”); U.S. ex rel. Ralph D. Williams v. Health Management Associates, Inc. et al. (Middle District Georgia) (“Williams”); U.S. ex rel. Scott H. Plantz, M.D. et al. v. Health Management Associates, Inc., et al. (Northern District Illinois) (“Plantz”); U.S. ex rel. Thomas L. Mason, M.D. et al. v. Health Management Associates, Inc. et al. (Western District North Carolina) (“Mason”); U.S. ex rel. Jacqueline Meyer, et al. v. Health Management Associates, Inc., Gary Newsome et al. (“Jacqueline Meyer”) (District of South Carolina); U.S. ex rel. George Miller, et al. v. Health Management Associates, Inc. (Eastern District of Pennsylvania) (“Miller”); U.S. ex rel. Bradley Nurkin v. Health Management Associates, Inc. et al. (Middle District of Florida) (“Nurkin”); and U.S. ex rel. Paul Meyer v. Health Management Associates, Inc. et al. (Southern District Florida) (“Paul Meyer”). The United States has elected to intervene with respect to allegations in these cases that certain HMA hospitals inappropriately admitted patients and then submitted reimbursement claims for treating those individuals to federal healthcare programs in violation of the False Claims Act or that certain HMA hospitals had inappropriate financial relationships with physicians which violated the Stark law, the Anti-Kickback Statute, and the False Claims Act. Certain of these complaints also allege the same actions violated various state laws which prohibit false claims. The United States has declined to intervene in three of the eleven matters, namely U.S. ex rel. Anita France, et al. v. Health Management Associates, Inc. (Middle District Florida) (“France”) which involved allegations of wrongful billing and was settled; U.S. ex rel. Sandra Simmons v. Health Management Associates, Inc. et al. (Eastern District Oklahoma) (“Simmons”) which alleges unnecessary surgery by an employed physician and which was settled as to all allegations except alleged wrongful termination; and U.S. ex rel. David Napoliello, M.D. v. Health Management Associates, Inc. (Middle District Florida) (“Napoliello”) which alleges inappropriate admissions. On April 3, 2014, the Multi District Litigation Panel ordered the transfer and consolidation for pretrial proceedings of the eight intervened cases, plus the Napoliello matter, to the District of the District of Columbia under the name In Re: Health Management Associates, Inc. Qui Tam Litigation. On June 2, 2014, the court entered a stay of this matter until October 6, 2014, which was subsequently extended until February 27, 2015, May 27, 2015, September 25, 2015, January 25, 2016, May 25, 2016, September 26, 2016, December 27, 2016, April 27, 2017 and now until August 28, 2017. The Company intends to defend against the allegations in these matters, bu t a lso continues to cooperate with the government in the ongoing investigation of these allegations. The Company has been in discussions with the Civil Division of the United States Department of Justice (“DOJ”) regarding the resolutions of these matters. During the first quarter of 2015, the Company was informed that the Criminal Division continues to investigate former executive-level employees of HMA, and continues to consider whether any HMA entities should be held criminally liable for the acts of the former HMA employees. The Company is voluntarily cooperating with these inquiries and has not been served with any subpoenas or other legal process. Other Probable Contingencies Lopez v. Yakima Regional Medical & Cardiac Center and Toppenish Community Hospital. This class action lawsuit arose out of alleged conduct at these hospitals prior to the HMA acquisition. The suit alleges the hospitals’ charity care policies did not comply with Washington state law. The trial court has certified a class and granted partial summary judgment in favor of the plaintiffs. This matter has now been settled, and the trial court has approved the settlement. The Company expects to fund the settlement in the third quarter of 2017. The Company recorded an estimate of the probable liability at December 31, 2016 based on the settlement of this matter. Becker v. Community Health Systems, Inc. d/b/a Community Health Systems Professional Services Corporation d/b/a Community Health Systems d/b/a Community Health Systems PSC, Inc. d/b/a Rockwood Clinic P.S. and Rockwood Clinic, P.S. (Superior Court, Spokane, Washington). This suit was filed on February 29, 2012, by a former chief financial officer at Rockwood Clinic in Spokane, Washington. Becker claims he was wrongfully terminated for allegedly refusing to certify a budget for Rockwood Clinic in 2012. On February 29, 2012, he also filed an administrative complaint with the Department of Labor, Occupational Safety and Health Administration alleging that he is a whistleblower under Sarbanes-Oxley, which was dismissed by the agency and was appealed to an administrative law judge for a hearing that occurred on January 19-26, 2016. In a decision dated November 9, 2016, the law judge awarded Becker approximately $1.9 million for front pay, back pay and emotional damages with attorney fees to be later determined. The Company has appealed the award to the Administrative Review Board and is awaiting its decision. At a hearing on July 27, 2012, the trial court dismissed Community Health Systems, Inc. from the state case and subsequently certified the state case for an interlocutory appeal of the denial to dismiss his employer and the management company. The appellate court accepted the interlocutory appeal, and it was argued on April 30, 2014. On August 14, 2014, the court denied the Company’s appeal. On October 20, 2014, the Company filed a petition to review the denial with the Washington Supreme Court. The appeal was accepted and oral argument was heard on June 9, 2015. On September 15, 2015, the court denied the Company’s appeal and remanded to the trial court; a previous trial setting of September 12, 2016 has been vacated and not reset. The Company continues to vigorously defend these actions. Eliel Ntakirutimana, M.D. and Anesthesia Healthcare Partners of Laredo, P.A., Jose Berlioz, M.D. and Jose Berlioz, M.D., P.A. d/b/a Safari Pediatrics v. Laredo Texas Hospital Company, L.P. d/b/a Laredo Medical Center, CHS/Community Health Systems, Inc., Webb Hospital Corporation, Community Health Systems Professional Services Corporation, Community Health Systems, Inc., Abraham “Abe” Martinez, Argelia “Argie” Martinez, Michael Portacci, Wayne Smith, Timothy P. Adams, and Timothy Schmidt. On December 28, 2012, two physicians and each of their professional associations, who previously contracted as independent contractors with Laredo Medical Center under contracts that could be terminated without cause upon certain written notice, filed a first amended complaint. The first amended complaint alleged claims for breaches of contracts, unjust enrichment, violation of the Texas Theft Liability Act, negligence, breach of fiduciary duty, knowing participation in breach of fiduciary duty, defamation and business disparagement, R.I.C.O., economic duress/coercion, tortious interference with contracts or prospective business relations, conspiracy, respondent superior, actual and apparent authority, ratification, vice-principal liability, and joint enterprise liability. The first amended complaint, in part, alleges facts concerning payments made by Dr. Eliel Ntakirutimana to former Laredo Medical Center CEO, Abe Martinez, who is also a defendant in the suit. On October 23, 2013, an order staying the case until further notice was entered. On April 13, 2016, the magistrate judge entered an order lifting the stay and set a scheduling conference that was held on June 8, 2016. On July 22, 2016, the Company filed several motions for summary judgment. The Company recorded an estimate of the probable liability at June 30, 2017 based on the settlement of this matter. Summary of Recorded Amounts The table below presents a reconciliation of the beginning and ending liability balances (in millions) during the six months ended June 30, 2017, with respect to the Company’s fair value determination in connection with HMA Legal Matters that were not previously accrued by HMA, and the remaining contingencies of the Company in respect of which an accrual has been recorded. In addition, future legal fees (which are expensed as incurred) and costs related to possible indemnification and criminal investigation matters associated with the HMA Legal Matters have not been accrued or included in the table below. Furthermore, although not accrued, such costs, if incurred, will be taken into account in determining the total amount of reductions applied to the amounts owed to CVR holders. CVR-Related Other Liability Probable at Fair Value Contingencies Balance as of December 31, 2016 $ 252 $ 14 Expense 8 12 Cash payments - (1) Balance as of June 30, 2017 $ 260 $ 25 With respect to the “Other Probable Contingencies” referenced in the chart above, 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 on the condensed consolidated balance sheet and are included in the table above in the “Other Probable Contingencies” column. 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 on the condensed consolidated balance sheet. In the aggregate, attorneys’ fees and other costs incurred but not included in the table above related to probable contingencies, and CVR-related contingencies accounted for at fair value, totaled $1 million for both the three months ended June 30, 2017 and 2016, and $1 million and $2 million for the six months ended June 30, 2017 and 2016, respectively, and are included in other operating expenses in the accompanying condensed consolidated statements of loss. Matters for which an Outcome Cannot be Assessed For the following legal matter, due to the uncertainties surrounding the ultimate outcome of the case, the Company cannot at this time assess what the outcome may be and is further unable to determine any estimate of loss or range of loss. Class Action Shareholder Federal Securities Cases . Three purported class action cases have been filed in the United States District Court for the Middle District of Tennessee; namely, Norfolk County Retirement System v. Community Health Systems, Inc., et al., filed May 9, 2011; De Zheng v. Community Health Systems, Inc., et al., filed May 12, 2011; and Minneapolis Firefighters Relief Association v. Community Health Systems, Inc., et al., filed June 21, 2011. All three seek class certification on behalf of purchasers of the Company’s common stock between July 27, 2006 and April 11, 2011 and allege that misleading statements resulted in artificially inflated prices for the Company’s common stock. In December 2011, the cases were consolidated for pretrial purposes and NYC Funds and its counsel were selected as lead plaintiffs/lead plaintiffs’ counsel. In lieu of ruling on the Company’s motion to dismiss, the court permitted the plaintiffs to file a first amended consolidated class action complaint, which was filed on October 5, 2015. The Company’s motion to dismiss was filed on November 4, 2015 and oral argument was held on April 11, 2016. The Company’s motion to dismiss was granted on June 16, 2016 and on June 27, 2016, the plaintiffs filed a notice of appeal to the Sixth Circuit Court of Appeals. The matter is fully briefed, and oral argument was heard on May 3, 2017. The Company believes this consolidated matter is without merit and will vigorously defend this case. Other Matters Shareholder Derivative Actions . Three purported shareholder derivative actions have also been filed in the United States District Court for the Middle District of Tennessee; Plumbers and Pipefitters Local Union No. 630 Pension Annuity Trust Fund v. Wayne T. Smith, et al., filed May 24, 2011; Roofers Local No. 149 Pension Fund v. Wayne T. Smith, et al., filed June 21, 2011; and Lambert Sweat v. Wayne T. Smith, et al., filed October 5, 2011. These three cases allege breach of fiduciary duty arising out of allegedly improper inpatient admission practices, mismanagement, waste and unjust enrichment. These cases have been consolidated into a single, consolidated action. The plaintiffs filed an operative amended derivative complaint in these three consolidated actions on March 15, 2012. The Company’s motion to dismiss was argued on June 13, 2013. On September 27, 2013, the court issued an order granting in part and denying in part the Company’s motion to dismiss. This case was settled pursuant to a final order entered on January 17, 2017. As a result of the settlement, the Company recorded a gain of approximately $40 million for the amount of settlement proceeds received, net of related legal expenses. Pursuant to the terms of the settlement, the Company is required to adopt and maintain for a specified period certain corporate governance measures. For more information, see the order and stipulation of settlement filed as Exhibit 99.2 to the 2016 Form 10-K. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events Disclosure | 19. SUBSEQUENT EVENTS The Company has evaluated all material events occurring subsequent to the balance sheet date for events requiring disclosure or recognition in the condensed consolidated financial statements. Effective July 1, 2017 , one or more subsidiaries of the Company sold four Pennsylvania hospitals and their associated assets to subsidiaries of PinnacleHealth System for approximately $231 million in cash, which was received at closing on July 3, 2017. Hospitals included in the transaction are Memorial Hospital of York ( 100 licensed bed) in York, Pennsylvania; Lancaster Regional Medical Center ( 214 licensed bed) in Lancaster, Pennsylvania; Heart of Lancaster Regional Medical Center ( 148 licensed bed) in Lititz, Pennsylvania; and Carlisle Regional Medical Center ( 165 licensed bed) in Carlisle, Pennsylvania. Effective July 1, 2017 , one or more subsidiaries of the Company sold Tomball Regional Medical Center ( 350 licensed beds) in Tomball, Texas and the associated assets to subsidiaries of HCA, and South Texas Regional Medical Center ( 67 licensed beds) in Jourdanton, Texas, and the associated assets to subsidiaries of HCA and Methodist Healthcare System of San Antonio, Ltd., L.L.P (a partnership between HCA and Methodist Healthcare Ministries) for approximately $135 million in cash, which was received at the preliminary closing on June 30, 2017. Effective July 1, 2017 , one or more subsidiaries of the Company sold two hospitals, a clinic and their associated assets to MultiCare Health System for approximately $424 million in cash, of which $414 million was received at the preliminary closing on June 30, 2017 with the remainder held in escrow. Facilities included in this transaction were Deaconess Hospital ( 388 licensed beds) in Spokane, Washington, Valley Hospital ( 123 licensed beds) in Spokane Valley, Washington, and the multi-specialty Rockwood Clinic in Spokane, Washington. On July 11, 2017 , one or more subsidiaries of the Company signed a definitive agreement for the sale of Weatherford Regional Medical Center ( 103 licensed beds) in Weatherford, Texas, and its associated assets to subsidiaries of HCA. On July 21, 2017 , one or more subsidiaries of the Company signed a definitive agreement for the sale of Highlands Regional Medical Center ( 126 licensed beds) in Sebring, Florida, and its associated assets to subsidiaries of HCA. On July 7, 2017, using a portion of the net proceeds from the divestitures that preliminarily closed on June 30, 2017 and that closed on July 3, 2017, the Company paid approximately $343 million to reduce its outstanding borrowings under the Credit Facility. |
Supplemental Condensed Consolid
Supplemental Condensed Consolidating Financial Information | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Condensed Consolidating Financial Information [Abstract] | |
Supplemental Condensed Consolidating Financial Information Disclosure | 20. SUPPLEMENTAL CONDENSED CONSOLIDATING FINANCIAL INFORMATION The Senior Notes due 2019, 2020 and 2022, which are senior unsecured obligations of CHS, the 5⅛% Senior Secured Notes due 2021, and the 6¼% Senior Secured Notes due 2023 (collectively, “the Notes”) are guaranteed on a senior basis by the Company and by certain of its existing and subsequently acquired or organized 100 % owned domestic subsidiaries. The Notes are fully and unconditionally guaranteed on a joint and several basis, with exceptions considered customary for such guarantees, limited to the release of the guarantee when a subsidiary guarantor’s capital stock is sold, or a sale of all of the subsidiary guarantor’s assets used in operations. The following condensed consolidating financial statements present Community Health Systems, Inc. (as parent guarantor), CHS (as the issuer), the subsidiary guarantors, the subsidiary non-guarantors and eliminations. These condensed consolidating financial statements have been prepared and presented in accordance with SEC Regulation S-X Rule 3-10 “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” The accounting policies used in the preparation of this financial information are consistent with those elsewhere in the condensed consolidated financial statements of the Company, except as noted below: • Intercompany receivables and payables are presented gross in the supplemental condensed consolidating balance sheets. • Cash flows from intercompany transactions are presented in cash flows from financing activities, as changes in intercompany balances with affiliates, net. • Income tax expense is allocated from the parent guarantor to the income producing operations (other guarantors and non-guarantors) and the issuer through stockholders’ equity. As this approach represents an allocation, the income tax expense allocation is considered non-cash for statement of cash flow purposes. • Interest expense, net has been presented to reflect net interest expense and interest income from outstanding long-term debt and intercompany balances. The Company’s intercompany activity consists primarily of daily cash transfers for purposes of cash management, the allocation of certain expenses and expenditures paid for by the Parent on behalf of its subsidiaries, and the push down of investment in its subsidiaries. This activity also includes the intercompany transactions between consolidated entities as part of the Receivables Facility that is further discussed in Note 12. The Company’s subsidiaries generally do not purchase services from one another; thus, the intercompany transactions do not represent revenue generating transactions. All intercompany transactions eliminate in consolidation. From time to time, subsidiaries of the Company sell and/or repurchase noncontrolling interests in consolidated subsidiaries, which may change subsidiaries between guarantors and non-guarantors. Effective with the spin-off of QHC, all subsidiaries of the Company that were part of that distribution have been removed as guarantors. Condensed Consolidating Statement of Loss Three Months Ended June 30, 2017 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Operating revenues (net of contractual allowances and discounts) $ - $ (6) $ 2,970 $ 1,859 $ - $ 4,823 Provision for bad debts - - 438 241 - 679 Net operating revenues - (6) 2,532 1,618 - 4,144 Operating costs and expenses: Salaries and benefits - - 990 930 - 1,920 Supplies - - 440 257 - 697 Other operating expenses - - 669 348 - 1,017 Government and other legal settlements and related costs - - 7 - - 7 Electronic health records incentive reimbursement - - (11) (6) - (17) Rent - - 55 49 - 104 Depreciation and amortization - - 137 86 - 223 Impairment and (gain) loss on sale of businesses, net - - 89 (9) - 80 Total operating costs and expenses - - 2,376 1,655 - 4,031 (Loss) income from operations - (6) 156 (37) - 113 Interest expense, net - 87 148 4 - 239 Loss from early extinguishment of debt - 10 - - - 10 Equity in earnings of unconsolidated affiliates 137 51 23 - (216) (5) (Loss) income from continuing operations before income taxes (137) (154) (15) (41) 216 (131) (Benefit from) provision for income taxes - (17) 33 (31) - (15) (Loss) income from continuing operations (137) (137) (48) (10) 216 (116) Discontinued operations, net of taxes: Loss from operations of entities sold or held for sale - - 2 (3) - (1) Impairment of hospitals sold or held for sale - - (5) - - (5) Loss from discontinued operations, net of taxes - - (3) (3) - (6) Net loss (137) (137) (51) (13) 216 (122) Less: Net income attributable to noncontrolling interests - - - 15 - 15 Net loss attributable to Community Health Systems, Inc. stockholders $ (137) $ (137) $ (51) $ (28) $ 216 $ (137) Condensed Consolidating Statement of Loss Three Months Ended June 30, 2016 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Operating revenues (net of contractual allowances and discounts) $ - $ (6) $ 3,220 $ 2,076 $ - $ 5,290 Provision for bad debts - - 452 248 - 700 Net operating revenues - (6) 2,768 1,828 - 4,590 Operating costs and expenses: Salaries and benefits - - 1,130 1,024 - 2,154 Supplies - - 495 264 - 759 Other operating expenses - - 683 373 - 1,056 Electronic health records incentive reimbursement - - (21) (10) - (31) Rent - - 56 56 - 112 Depreciation and amortization - - 181 95 - 276 Impairment and (gain) loss on sale of businesses, net - - 1,134 505 - 1,639 Total operating costs and expenses - - 3,658 2,307 - 5,965 Loss from operations - (6) (890) (479) - (1,375) Interest expense, net - 39 186 21 - 246 Loss from early extinguishment of debt - 30 - - - 30 Gain on sale of investments in unconsolidated affiliates - - (94) - - (94) Equity in earnings of unconsolidated affiliates 1,432 1,384 462 - (3,292) (14) Loss from continuing operations before income taxes (1,432) (1,459) (1,444) (500) 3,292 (1,543) Benefit from income taxes - (27) (57) (54) - (138) Loss from continuing operations (1,432) (1,432) (1,387) (446) 3,292 (1,405) Discontinued operations, net of taxes: (Loss) income from operations of entities sold or held for sale - - (2) 1 - (1) (Loss) income from discontinued operations, net of taxes - - (2) 1 - (1) Net loss (1,432) (1,432) (1,389) (445) 3,292 (1,406) Less: Net income attributable to noncontrolling interests - - - 26 - 26 Net loss attributable to Community Health Systems, Inc. stockholders $ (1,432) $ (1,432) $ (1,389) $ (471) $ 3,292 $ (1,432) Condensed Consolidating Statement of Loss Six Months Ended June 30, 2017 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Operating revenues (net of contractual allowances and discounts) $ - $ (12) $ 6,336 $ 3,667 $ - $ 9,991 Provision for bad debts - - 928 434 - 1,362 Net operating revenues - (12) 5,408 3,233 - 8,629 Operating costs and expenses: Salaries and benefits - - 2,125 1,856 - 3,981 Supplies - - 952 494 - 1,446 Other operating expenses - - 1,420 654 - 2,074 Government and other legal settlements and related costs - - (34) - - (34) Electronic health records incentive reimbursement - - (13) (10) - (23) Rent - - 116 98 - 214 Depreciation and amortization - - 291 167 - 458 Impairment and (gain) loss on sale of businesses, net - - 273 57 - 330 Total operating costs and expenses - - 5,130 3,316 - 8,446 (Loss) income from operations - (12) 278 (83) - 183 Interest expense, net - 157 300 11 - 468 Loss from early extinguishment of debt - 31 - - - 31 Equity in earnings of unconsolidated affiliates 335 171 77 - (592) (9) Loss from continuing operations before income taxes (335) (371) (99) (94) 592 (307) (Benefit from) provision for income taxes - (36) 69 (48) - (15) Loss from continuing operations (335) (335) (168) (46) 592 (292) Discontinued operations, net of taxes: Loss from operations of entities sold or held for sale - - (1) (1) - (2) Impairment of hospitals sold or held for sale - - (5) - - (5) Loss from discontinued operations, net of taxes - - (6) (1) - (7) Net loss (335) (335) (174) (47) 592 (299) Less: Net income attributable to noncontrolling interests - - - 36 - 36 Net loss attributable to Community Health Systems, Inc. stockholders $ (335) $ (335) $ (174) $ (83) $ 592 $ (335) Condensed Consolidating Statement of Loss Six Months Ended June 30, 2016 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Operating revenues (net of contractual allowances and discounts) $ - $ (12) $ 6,507 $ 4,549 $ - $ 11,044 Provision for bad debts - - 929 526 - 1,455 Net operating revenues - (12) 5,578 4,023 - 9,589 Operating costs and expenses: Salaries and benefits - - 2,235 2,235 - 4,470 Supplies - - 991 568 - 1,559 Other operating expenses - - 1,362 867 - 2,229 Government and other legal settlements and related costs - - 1 - - 1 Electronic health records incentive reimbursement - - (29) (20) - (49) Rent - - 113 118 - 231 Depreciation and amortization - - 366 208 - 574 Impairment and (gain) loss on sale of businesses, net - - 1,145 511 - 1,656 Total operating costs and expenses - - 6,184 4,487 - 10,671 Loss from operations - (12) (606) (464) - (1,082) Interest expense, net - 74 366 56 - 496 Loss from early extinguishment of debt - 30 - - - 30 Gain on sale of investments in unconsolidated affiliates - - (94) - - (94) Equity in earnings of unconsolidated affiliates 1,421 1,325 469 - (3,249) (34) Loss from continuing operations before income taxes (1,421) (1,441) (1,347) (520) 3,249 (1,480) Benefit from income taxes - (20) (19) (73) - (112) Loss from continuing operations (1,421) (1,421) (1,328) (447) 3,249 (1,368) Discontinued operations, net of taxes: (Loss) income from operations of entities sold or held for sale - - (3) 1 - (2) Impairment of hospitals sold or held for sale - - - (1) - (1) Loss from discontinued operations, net of taxes - - (3) - - (3) Net loss (1,421) (1,421) (1,331) (447) 3,249 (1,371) Less: Net income attributable to noncontrolling interests - - - 50 - 50 Net loss attributable to Community Health Systems, Inc. stockholders $ (1,421) $ (1,421) $ (1,331) $ (497) $ 3,249 $ (1,421) Condensed Consolidating Statement of Comprehensive Loss Three Months Ended June 30, 2017 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Net loss $ (137) $ (137) $ (51) $ (13) $ 216 $ (122) Other comprehensive income, net of income taxes: Net change in fair value of interest rate swaps, net of tax (2) (2) - - 2 (2) Net change in fair value of available-for-sale securities, net of tax 2 2 2 - (4) 2 Amortization and recognition of unrecognized pension cost components, net of tax 1 1 1 - (2) 1 Other comprehensive income 1 1 3 - (4) 1 Comprehensive loss (136) (136) (48) (13) 212 (121) Less: Comprehensive income attributable to noncontrolling interests - - - 15 - 15 Comprehensive loss attributable to Community Health Systems, Inc. stockholders $ (136) $ (136) $ (48) $ (28) $ 212 $ (136) Condensed Consolidating Statement of Comprehensive Loss Three Months Ended June 30, 2016 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Net loss $ (1,432) $ (1,432) $ (1,389) $ (445) $ 3,292 $ (1,406) Other comprehensive loss, net of income taxes: Net change in fair value of interest rate swaps, net of tax (2) (2) - - 2 (2) Net change in fair value of available-for-sale securities, net of tax (3) (3) (3) - 6 (3) Amortization and recognition of unrecognized pension cost components, net of tax 2 2 2 - (4) 2 Other comprehensive loss (3) (3) (1) - 4 (3) Comprehensive loss (1,435) (1,435) (1,390) (445) 3,296 (1,409) Less: Comprehensive income attributable to noncontrolling interests - - - 26 - 26 Comprehensive loss attributable to Community Health Systems, Inc. stockholders $ (1,435) $ (1,435) $ (1,390) $ (471) $ 3,296 $ (1,435) Condensed Consolidating Statement of Comprehensive Loss Six Months Ended June 30, 2017 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Net loss $ (335) $ (335) $ (174) $ (47) $ 592 $ (299) Other comprehensive income, net of income taxes: Net change in fair value of interest rate swaps, net of tax 3 3 - - (3) 3 Net change in fair value of available-for-sale securities, net of tax 5 5 5 - (10) 5 Amortization and recognition of unrecognized pension cost components, net of tax 1 1 1 - (2) 1 Other comprehensive income 9 9 6 - (15) 9 Comprehensive loss (326) (326) (168) (47) 577 (290) Less: Comprehensive income attributable to noncontrolling interests - - - 36 - 36 Comprehensive loss attributable to Community Health Systems, Inc. stockholders $ (326) $ (326) $ (168) $ (83) $ 577 $ (326) Condensed Consolidating Statement of Comprehensive Loss Six Months Ended June 30, 2016 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Net loss $ (1,421) $ (1,421) $ (1,331) $ (447) $ 3,249 $ (1,371) Other comprehensive (loss) income, net of income taxes: Net change in fair value of interest rate swaps, net of tax (21) (21) - - 21 (21) Net change in fair value of available-for-sale securities, net of tax (1) (1) (1) - 2 (1) Amortization and recognition of unrecognized pension cost components, net of tax 3 3 3 - (6) 3 Other comprehensive (loss) income (19) (19) 2 - 17 (19) Comprehensive loss (1,440) (1,440) (1,329) (447) 3,266 (1,390) Less: Comprehensive income attributable to noncontrolling interests - - - 50 - 50 Comprehensive loss attributable to Community Health Systems, Inc. stockholders $ (1,440) $ (1,440) $ (1,329) $ (497) $ 3,266 $ (1,440) Condensed Consolidating Balance Sheet June 30, 2017 Parent Other Non - Guarantor Issuer Guarantors Guarantors Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ - $ - $ 685 $ 83 $ - $ 768 Patient accounts receivable, net of allowance for doubtful accounts - - 684 2,255 - 2,939 Supplies - - 281 157 - 438 Prepaid income taxes 22 - - - - 22 Prepaid expenses and taxes - - 157 53 - 210 Other current assets - - 489 189 - 678 Total current assets 22 - 2,296 2,737 - 5,055 Intercompany receivable 282 14,341 4,781 5,955 (25,359) - Property and equipment, net - - 4,557 2,755 - 7,312 Goodwill - - 3,404 2,761 - 6,165 Other assets, net 14 14 2,512 1,020 (1,219) 2,341 Net investment in subsidiaries 1,402 22,217 9,347 - (32,966) - Total assets $ 1,720 $ 36,572 $ 26,897 $ 15,228 $ (59,544) $ 20,873 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ - $ - $ 38 $ 8 $ - $ 46 Accounts payable - - 596 321 - 917 Accrued interest - 235 - 1 - 236 Accrued liabilities 14 - 694 471 - 1,179 Total current liabilities 14 235 1,328 801 - 2,378 Long-term debt - 13,802 197 703 - 14,702 Intercompany payable - 19,915 21,925 12,370 (54,210) - Deferred income taxes 396 - - - - 396 Other long-term liabilities 12 1,218 1,117 328 (1,219) 1,456 Total liabilities 422 35,170 24,567 14,202 (55,429) 18,932 Redeemable noncontrolling interests in equity of consolidated subsidiaries - - - 548 - 548 Equity: Community Health Systems, Inc. stockholders’ equity: Common stock 1 - - - - 1 Additional paid-in capital 1,984 549 907 732 (2,188) 1,984 Accumulated other comprehensive loss (53) (53) (20) (6) 79 (53) (Accumulated deficit) retained earnings (634) 906 1,443 (343) (2,006) (634) Total Community Health Systems, Inc. stockholders’ equity 1,298 1,402 2,330 383 (4,115) 1,298 Noncontrolling interests in equity of consolidated subsidiaries - - - 95 - 95 Total equity 1,298 1,402 2,330 478 (4,115) 1,393 Total liabilities and equity $ 1,720 $ 36,572 $ 26,897 $ 15,228 $ (59,544) $ 20,873 Condensed Consolidating Balance Sheet December 31, 2016 Parent Other Non - Guarantor Issuer Guarantors Guarantors Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ - $ - $ 162 $ 76 $ - $ 238 Patient accounts receivable, net of allowance for doubtful accounts - - 843 2,333 - 3,176 Supplies - - 324 156 - 480 Prepaid income taxes 17 - - - - 17 Prepaid expenses and taxes - - 133 54 - 187 Other current assets - - 283 285 - 568 Total current assets 17 - 1,745 2,904 - 4,666 Intercompany receivable 295 14,966 667 6,985 (22,913) - Property and equipment, net - - 5,403 2,746 - 8,149 Goodwill - - 3,735 2,786 - 6,521 Other assets, net 15 - 2,820 995 (1,222) 2,608 Net investment in subsidiaries 1,728 22,205 8,607 - (32,540) - Total assets $ 2,055 $ 37,171 $ 22,977 $ 16,416 $ (56,675) $ 21,944 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ - $ 149 $ 56 $ 250 $ - $ 455 Accounts payable - - 715 280 - 995 Accrued interest - 205 1 1 - 207 Accrued liabilities 17 - 775 438 - 1,230 Total current liabilities 17 354 1,547 969 - 2,887 Long-term debt - 14,018 233 538 - 14,789 Intercompany payable - 19,811 17,508 13,393 (50,712) - Deferred income taxes 411 - - - - 411 Other long-term liabilities 12 1,259 1,187 339 (1,222) 1,575 Total liabilities 440 35,442 20,475 15,239 (51,934) 19,662 Redeemable noncontrolling interests in equity of consolidated subsidiaries - - - 554 - 554 Equity: Community Health Systems, Inc. stockholders’ equity: Common stock 1 - - - - 1 Additional paid-in capital 1,975 676 1,080 816 (2,572) 1,975 Accumulated other comprehensive loss (62) (62) (22) (9) 93 (62) (Accumulated deficit) retained earnings (299) 1,115 1,444 (297) (2,262) (299) Total Community Health Systems, Inc. stockholders’ equity 1,615 1,729 2,502 510 (4,741) 1,615 Noncontrolling interests in equity of consolidated subsidiaries - - - 113 - 113 Total equity 1,615 1,729 2,502 623 (4,741) 1,728 Total liabilities and equity $ 2,055 $ 37,171 $ 22,977 $ 16,416 $ (56,675) $ 21,944 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 Parent Other Non - Guarantor Issuer Guarantors Guarantors Eliminations Consolidated (In millions) Net cash (used in) provided by operating activities $ (11) $ (163) $ 381 $ 296 $ - $ 503 Cash flows from investing activities: Acquisitions of facilities and other related equipment - - - (4) - (4) Purchases of property and equipment - - (182) (92) - (274) Proceeds from disposition of hospitals and other ancillary operations - - 921 - - 921 Proceeds from sale of property and equipment - - 2 1 - 3 Purchases of available-for-sale securities - - (27) (10) - (37) Proceeds from sales of available-for-sale securities - - 38 9 - 47 Increase in other investments - - (51) (9) - (60) Net provided by (cash used) in investing activities - - 701 (105) - 596 Cash flows from financing activities: Repurchase of restricted stock shares for payroll tax withholding requirements (5) - - - - (5) Deferred financing costs and other debt-related costs - (62) - - - (62) Proceeds from noncontrolling investors in joint ventures - - - 5 - 5 Redemption of noncontrolling investments in joint ventures - - - (4) - (4) Distributions to noncontrolling investors in joint ventures - - - (53) - (53) Changes in intercompany balances with affiliates, net 16 578 (536) (58) - - Borrowings under credit agreements - 795 26 19 - 840 Issuance of long-term debt - 3,100 - - - 3,100 Proceeds from receivables facility - - - 26 - 26 Repayments of long-term indebtedness - (4,248) (49) (119) - (4,416) Net cash provided by (used in) financing activities 11 163 (559) (184) - (569) Net change in cash and cash equivalents - - 523 7 - 530 Cash and cash equivalents at beginning of period - - 162 76 - 238 Cash and cash equivalents at end of period $ - $ - $ 685 $ 83 $ - $ 768 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 Parent Other Non - Guarantor Issuer Guarantors Guarantors Eliminations Consolidated (In millions) Net cash (used in) provided by operating activities $ (5) $ (294) $ 599 $ 332 $ - $ 632 Cash flows from investing activities: Acquisitions of facilities and other related equipment - - (3) (111) - (114) Purchases of property and equipment - - (282) (125) - (407) Proceeds from disposition of hospitals and other ancillary operations - - 8 4 - 12 Proceeds from sale of property and equipment - - 4 3 - 7 Purchases of available-for-sale securities - - (21) (42) - (63) Proceeds from sales of available-for-sale securities - - 14 219 - 233 Proceeds from sale of investments in unconsolidated affiliates - - 403 - - 403 Distribution from Quorum Health Corporation - 1,219 - - - 1,219 Increase in other investments - - (84) (29) - (113) Net cash provided by (used in) investing activities - 1,219 39 (81) - 1,177 Cash flows from financing activities: Repurchase of restricted stock shares for payroll tax withholding requirements (5) - - - - (5) Deferred financing costs and other debt-related costs - (22) - - - (22) Redemption of noncontrolling investments in joint ventures - - - (16) - (16) Distributions to noncontrolling investors in joint ventures - - - (47) - (47) Changes in intercompany balances with affiliates, net 10 497 (469) (38) - - Borrowings under credit agreements - 2,783 2 21 - 2,806 Proceeds from receivables facility - - - 31 - 31 Repayments of long-term indebtedness - (4,183) (25) (71) - (4,279) Net cash provided by (used in) financing activities 5 (925) (492) (120) - (1,532) Net change in cash and cash equivalents - - 146 131 - 277 Cash and cash equivalents at beginning of period - - 32 152 - 184 Cash and cash equivalents at end of period $ - $ - $ 178 $ 283 $ - $ 461 |
Basis of Presentation and Sig27
Basis of Presentation and Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of Accounting, Policy | The unaudited condensed consolidated financial statements of Community Health Systems, Inc. (the “Parent” or “Parent Company”) and its subsidiaries (the “Company”) as of June 30, 2017 and December 31, 2016 and for the three-month and six-month periods ended June 30, 2017 and 2016, 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, 2017, are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2017. Certain information and disclosures normally included in the notes to condensed 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, 2016, contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 21, 2017 (“2016 Form 10-K”). |
Consolidation, Policy | Noncontrolling interests in less-than-wholly-owned consolidated subsidiaries of the Parent are presented as a component of total equity on 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 on the condensed consolidated balance sheets. Throughout these notes to the 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 or any particular subsidiary of the Parent owns or operates any asset, business, or property. The hospitals, operations and businesses described in this filing are owned and operated by distinct and indirect subsidiaries of Community Health Systems, Inc. |
Allowance for Doubtful Accounts, Policy | Allowance for Doubtful Accounts . Accounts receivable are reduced by an allowance for amounts that could become uncollectible in the future. Substantially all of the Company’s receivables are related to providing healthcare services to patients at its hospitals and affiliated businesses. The Company estimates the allowance for doubtful accounts by reserving a percentage of all self-pay accounts receivable without regard to aging category, based on collection history, adjusted for expected recoveries and any anticipated changes in trends. The Company’s ability to estimate the allowance for doubtful accounts is not impacted by not utilizing an aging of net accounts receivable as the Company believes that substantially all of the risk exists at the point in time such accounts are identified as self-pay. For all other non-self-pay payor categories, the Company reserves an estimated amount on historical collection rates for the uncontractualized portion of all accounts aging over 365 days from the date of discharge. These amounts represent an immaterial percentage of the outstanding accounts receivable. The percentage used to reserve for all self-pay accounts is based on the Company’s collection history. The Company collects substantially all of its third-party insured receivables, which include receivables from governmental agencies. Collections are impacted by the economic ability of patients to pay and the effectiveness of the Company’s collection efforts. Significant changes in payor mix, business office operations, economic conditions or trends in federal and state governmental healthcare coverage could affect the Company’s collection of accounts receivable and the estimates of the collectability of future accounts receivable and are considered in the Company’s estimates of accounts receivable collectability. The Company also continually reviews its overall reserve adequacy by monitoring historical cash collections as a percentage of trailing net revenue less provision for bad debts, as well as by analyzing current period net revenue and admissions by payor classification, aged accounts receivable by payor, days revenue outstanding, the composition of self-pay receivables between pure self-pay patients and the patient responsibility portion of third-party insured receivables and the impact of recent acquisitions and dispositions. |
Electronic Health Records Incentive Reimbursement Policy | Electronic Health Records Incentive Reimbursement. The federal government has implemented a number of regulations and programs designed to promote the use of electronic health records (“EHR”) technology and, pursuant to the Health Information Technology for Economic and Clinical Health Act (“HITECH”), established requirements for a Medicare and Medicaid incentive payments program for eligible hospitals and professionals that adopt and meaningfully use certified EHR technology. The Company utilizes a gain contingency model to recognize EHR incentive payments. Recognition occurs when the eligible hospitals adopt or demonstrate meaningful use of certified EHR technology for the applicable payment period and have available the Medicare cost report information for the relevant full cost report year used to determine the final incentive payment. Medicaid EHR incentive payments are calculated based on prior period Medicare cost report information available at the time when eligible hospitals adopt, implement, upgrade or demonstrate meaningful use of certified EHR technology. Since the information for the relevant full Medicare cost report year is available at the time of attestation, the incentive income from resolving the gain contingency is recognized when eligible hospitals adopt, implement, upgrade or demonstrate meaningful use of certified EHR technology. Medicare EHR incentive payments are calculated based on the Medicare cost report information for the full cost report year that began during the federal fiscal year in which meaningful use is demonstrated. Since the necessary information is only available at the end of the relevant full Medicare cost report year and after the cost report is settled, the incentive income from resolving the gain contingency is recognized when eligible hospitals demonstrate meaningful use of certified EHR technology and the information for the applicable full Medicare cost report year to determine the final incentive payment is available. In some instances, the Company may receive estimated Medicare EHR incentive payments prior to when the Medicare cost report information used to determine the final incentive payment is available. In these instances, recognition of the gain for EHR incentive payments is deferred until all recognition criteria described above are met. Eligibility for annual Medicare incentive payments is dependent on providers successfully attesting to the meaningful use of EHR technology. Medicaid incentive payments are available to providers in the first payment year that they adopt, implement or upgrade certified EHR technology; however, providers must demonstrate meaningful use of such technology in any subsequent payment years to qualify for additional incentive payments. Medicaid EHR incentive payments are fully funded by the federal government and administered by the states; however, the states are not required to offer EHR incentive payments to providers. The Company recognized approximately $17 million and $31 million for the three months ended June 30, 2017 and 2016, respectively, and $23 million and $49 million for the six months ended June 30, 2017 and 2016, respectively, of incentive reimbursement for HITECH incentives from Medicare and Medicaid related to certain of the Company’s hospitals and for certain of the Company’s employed physicians that have demonstrated meaningful use of certified EHR technology or have completed attestations to their adoption or implementation of certified EHR technology. These incentive reimbursements are presented as a reduction of operating costs and expenses on the condensed consolidated statements of loss. The Company received cash related to the incentive reimbursement for HITECH incentives of approximately $25 million and $18 million for the three months ended June 30, 2017 and 2016, respectively, and approximately $36 million and $102 million for the six months ended June 30, 2017 and 2016, respectively. The Company recorded $2 million and $4 million as deferred revenue in connection with the receipt of these payments at June 30, 2017 and 2016, respectively, as all criteria for gain recognition had not been met. |
Accounting for the Impairment or Disposal of Long-Lived Assets, Policy | Accounting for the Impairment or Disposal of Long-Lived Assets. During the six months ended June 30, 2017, the Company recorded a total combined impairment charge and loss on disposal of approximately $330 million to reduce the carrying value of certain hospitals that have been deemed held for sale based on the difference between the carrying value of the hospital disposal groups compared to estimated fair value less costs to sell. Included in the carrying value of the hospital disposal groups is a net allocation of approximately $357 million of goodwill allocated from the hospital operations reporting unit goodwill based on a calculation of the disposal groups’ relative fair value compared to the total reporting unit. |
New Accounting Pronouncements, Policy | New Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which outlines a single comprehensive model for recognizing revenue and supersedes most existing revenue recognition guidance, including guidance specific to the healthcare industry. This ASU provides companies the option of applying a full or modified retrospective approach upon adoption. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted for annual periods beginning after December 15, 2016. The Company expects to adopt this ASU on January 1, 2018 and is currently implementing its plan for adoption and evaluating the impact on its revenue recognition policies, procedures and control framework and the resulting impact on its consolidated financial position, results of operations and cash flows. The Company has established an implementation group for this ASU with an implementation plan to transition to the new standard and determine its impact during 2017. A significant element of executing this plan is the process of reviewing sources of revenue and evaluating the patient account population to determine the appropriate distribution of patient accounts into portfolios with similar collection experience that, when evaluated for collectability, will result in a materially consistent revenue amount for such portfolios as if each patient account was evaluated on a contract-by-contract basis. The Company is currently evaluating the appropriate portfolios to apply in its collectability analysis and is considering the impact of applying the new standard when its patient accounts are evaluated in those portfolios. The Company expects this process will be completed later in 2017. The Company is also in the process of assessing the impact of the new standard on various reimbursement programs that represent variable consideration, including settlements with third party payors, disproportionate share payments, supplemental state Medicaid programs, bundled payment of care programs and other reimbursement programs in which our hospitals participate. Due to the many different forms of calculation and reimbursement that these programs take that vary from state to state, the application of the new accounting standard could have an impact on the revenue recognized for variable consideration. Moreover, industry guidance is continuing to develop around this issue, and any conclusions in the final industry guidance that is inconsistent with the Company’s application could result in changes to the Company’s expectations regarding the impact that this new accounting standard could have on the Company’s financial statements. For example, in July 2017, a draft of industry guidance was issued on the application of this ASU on settlements with third party payors. The Company is evaluating whether such industry guidance will have an impact on its current accounting policies and procedures related to third party settlements. Final drafts of industry guidance on this and other reimbursement programs unique to the healthcare industry are expected later in 2017. The Company is monitoring the development of such guidance. Additionally, the adoption of the new accounting standard will impact the presentation on the Company’s statement of operations for a significant component of its provision for bad debts. After adoption of the new standard, the majority of what is currently classified as the provision for bad debts will be reflected as an implicit price concession as defined in the standard and therefore an adjustment to net patient revenue. The Company will continue to evaluate certain changes in collectability on its self-pay patient accounts receivable resulting from certain credit and collection issues not assessed at the date of service, including bankruptcy, and recognize such amounts in the provision for bad debts included in operating expenses on the statement of operations. The Company has decided to apply the full retrospective approach upon adoption. The Company cannot reasonably estimate at this time the quantitative impact that the adoption of this accounting standard will have on the financial statements of the Company. In January 2016, the FASB issued ASU 2016-01, which amends the measurement, presentation and disclosure requirements for equity investments, other than those accounted for under the equity method or that require consolidation of the investee. The ASU eliminates the classification of equity investments as available-for-sale with any changes in fair value of such investments recognized in other comprehensive income, and requires entities to measure equity investments at fair value, with any changes in fair value recognized in net income. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt this ASU on January 1, 2018, and is currently evaluating the impact that adoption of this ASU will have on its consolidated financial position and results of operations. In February 2016, the FASB issued ASU 2016-02, which amends the accounting for leases, requiring lessees to recognize most leases on their balance sheet with a right-of-use asset and a lease liability. Leases will be classified as either finance or operating leases, which will impact the expense recognition of such leases over the lease term. The ASU also modifies the lease classification criteria for lessors and eliminates some of the real estate leasing guidance previously applied for certain leasing transactions. This ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company expects to adopt this ASU on January 1, 2019. Because of the number of leases the Company utilizes to support its operations, the adoption of this ASU is expected to have a significant impact on the Company’s consolidated financial position and results of operations. Management is currently evaluating the extent of this anticipated impact on the Company’s consolidated financial position and results of operations, and the quantitative and qualitative factors that will impact the Company as part of the adoption of this ASU, as well as any changes to its leasing strategy that may occur because of the changes to the accounting and recognition of leases. Most recently, the Company has organized an implementation group of cross-functional departmental management to ensure the completeness of its lease information, analyze the appropriate classification of current leases under the new standard, and develop new processes to execute, approve and classify leases on an ongoing basis. The Company has also engaged outside experts to assist in the development of this plan, as well as the identification and selection of software tools and processes to maintain lease information critical to applying the new standard. In March 2016, the FASB issued ASU 2016-09, which was issued to simplify some of the accounting guidance for share-based compensation. Among the areas impacted by the amendments in this ASU is the accounting for income taxes related to share-based payments, accounting for forfeitures, classification of awards as equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016. The Company adopted this ASU on January 1, 2017. Because of the recent decline in the Company’s stock price below the Company’s stock price at the stock award grant date for outstanding share-based awards, the principal impact from adopting this ASU has been a $16 million increase in the Company’s current provision for income taxes due to the deficiency created by a difference between the actual tax deduction that will be recognized from the vesting of outstanding share-based awards during the six months ended June 30, 2017, compared to the higher stock compensation expense previously recorded over the vesting period as determined based on the fair value of the restricted stock at the grant date. In January 2017, the FASB issued ASU 2017-04, which simplifies the accounting for goodwill impairment by eliminating step two from the goodwill impairment test. Instead of a two-step impairment model, if the carrying amount of a reporting unit exceeds its fair value as determined in step one of the impairment test, an impairment loss is measured at the amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. This ASU is effective for any interim or annual impairment tests for fiscal years beginning after December 15, 2019, with early adoption permitted. As noted in the Company’s critical accounting policy discussion on goodwill, during the fourth quarter of 2016 the Company performed its annual goodwill impairment analysis. While the result of the step two valuation in that analysis did not indicate an impairment of goodwill, the initial calculation of hospital operations reporting unit fair value in the step one test indicated that the carrying amount of the hospital operations reporting unit exceeded its fair value by approximately $800 million. Depending on future changes in fair value and the impact of allocated goodwill for planned divestitures, at adoption there could be a material impairment charge recorded for this excess amount. The Company is evaluating whether to early adopt this ASU and what impact it will have on its consolidated financial position and results of operations . In March 2017, the FASB issued ASU 2017-07, which changes the presentation of the components of net periodic benefit cost for sponsors of defined benefit plans for pensions. Under the changes in this ASU, the service cost component of net periodic benefit cost will be reported in the same income statement line as other employee compensation costs arising from services during the reporting period. The other components of net periodic benefit cost will be presented separately in a line item outside of operating income. This ASU is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt this ASU on January 1, 2018, and is currently evaluating the impact that adoption of this ASU will have on its consolidated results of operations. Since the changes required in this new ASU only change the income statement classification of the components of net periodic benefit cost, no changes are expected to income from continuing operations or net income. Currently, the Company reports all of the components of net periodic benefit cost as a component of salaries and benefits on the consolidated statement of income . |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Acquisitions And Divestitures [Abstract] | |
Acquisitions Policy | 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 as of the date of acquisition. 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. |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Asset Impairment [Abstract] | |
Goodwill, Policy | 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 hospital operations segment meets the criteria to be classified as a single reporting unit. At June 30, 2017, the Company had approximately $6.2 billion of goodwill recorded, all of which resides at its hospital operations reporting unit. Goodwill is evaluated for impairment at the same time every year 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. There is a two-step method for determining goodwill impairment. Step one is to compare the fair value of the reporting unit with the unit’s carrying amount, including goodwill. If this test indicates the fair value is less than the carrying value, then step two is required to compare the implied fair value of the reporting unit’s goodwill utilizing a hypothetical purchase price allocation with the carrying value of the reporting unit’s goodwill. The Company performed its last annual goodwill evaluation during the fourth quarter of 2016. No impairment was indicated by this evaluation. The next annual goodwill evaluation will be performed during the fourth quarter of 2017, or sooner if the Company identifies certain indicators of impairment. While no impairment was indicated by the fourth quarter of 2016 evaluation, the reduction in the Company’s fair value and the resulting goodwill impairment charge recorded during 2016 reduced the excess of fair value calculated in the step two analysis over the carrying value of the Company’s hospital operations reporting unit to an amount less than 1% of the Company’s carrying value. This minimal amount in the excess fair value over carrying value of the hospital operations reporting unit increases the risk that future declines in fair value could result in goodwill impairment. The determination of fair value in the Company’s goodwill impairment analysis is based on an estimate of fair value for each 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 or fair value of long-term debt, estimates of future revenue and expense growth, estimated market multiples expected capital expenditures, income tax rates, and costs of invested capital. Future estimates of fair value could be adversely affected if the actual outcome of one or more of these assumptions changes materially in the future, including further decline in the Company’s stock price or fair value of long-term debt, lower than expected hospital volumes, or increased operating costs. Such changes impacting the calculation of fair value could result in a material impairment charge in the future. The Company estimates the fair value of the related reporting units using both a discounted cash flow model as well as a market multiple model. The cash flow forecasts are adjusted by an appropriate discount rate based on the Company’s estimate of a market participant’s weighted-average cost of capital. These models are both based on the Company’s best estimate of future revenues and operating costs and are reconciled to the Company’s consolidated market capitalization, with consideration of the amount a potential acquirer would be required to pay, in the form of a control premium, in order to gain sufficient ownership to set policies, direct operations and control management decisions. |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments, Policy | 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 14 . 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 from the administrative agent to the Credit Facility to determine fair values or through publicly available subscription services such as Bloomberg 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). Available-for-sale 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. Contingent Value Right . Estimated fair value is based on the closing price as quoted on the public market where the CVR is traded. Credit Facility. Estimated fair value is based on publicly available trading activity and supported with information from the Company’s bankers regarding relevant pricing for trading activity among the Company’s lending institutions. 8% Senior Notes. Estimated fair value is based on the closing market price for these notes. 7⅛% Senior Notes. Estimated fair value is based on the closing market price for these notes. 5⅛% Senior Secured Notes due 2018. Estimated fair value is based on the closing market price for these notes. 5⅛% Senior Secured Notes due 2021. Estimated fair value is based on the closing market price for these notes. 6⅞% Senior Notes. Estimated fair value is based on the closing market price for these notes. 6¼% Senior Secured Notes. Estimated fair value is based on the closing market price for these notes. Receivables Facility and other debt. The carrying amount of the Receivables Facility and all other debt approximates fair value due to the nature of these obligations. Interest rate swaps. The fair value of interest rate swap agreements is the amount at which they could be settled, based on estimates calculated by the Company using a discounted cash flow analysis based on observable market inputs and validated by comparison to estimates obtained from the counterparty. The Company incorporates credit valuation adjustments (“CVAs”) to appropriately reflect both its own nonperformance or credit risk and the respective counterparty’s nonperformance or credit risk in the fair value measurements. In adjusting the fair value of its interest rate swap agreements for the effect of nonperformance or credit risk, the Company has considered the impact of any netting features included in the agreements. |
Fair Value (Policy)
Fair Value (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value [Abstract] | |
Fair Value Measurement, Policy | 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-month periods ending June 30, 2017 or June 30, 2016 . |
Contingencies (Policy)
Contingencies (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Contingencies [Abstract] | |
Legal Costs, Policy | 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, including the matters described herein, will have a material adverse effect on the condensed 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. |
Supplemental Condensed Consol33
Supplemental Condensed Consolidating Financial Information (Policy) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Condensed Consolidating Financial Information [Abstract] | |
Guarantor Financial Information Policy | These condensed consolidating financial statements have been prepared and presented in accordance with SEC Regulation S-X Rule 3-10 “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” The accounting policies used in the preparation of this financial information are consistent with those elsewhere in the condensed consolidated financial statements of the Company, except as noted below: • Intercompany receivables and payables are presented gross in the supplemental condensed consolidating balance sheets. • Cash flows from intercompany transactions are presented in cash flows from financing activities, as changes in intercompany balances with affiliates, net. • Income tax expense is allocated from the parent guarantor to the income producing operations (other guarantors and non-guarantors) and the issuer through stockholders’ equity. As this approach represents an allocation, the income tax expense allocation is considered non-cash for statement of cash flow purposes. • Interest expense, net has been presented to reflect net interest expense and interest income from outstanding long-term debt and intercompany balances. The Company’s intercompany activity consists primarily of daily cash transfers for purposes of cash management, the allocation of certain expenses and expenditures paid for by the Parent on behalf of its subsidiaries, and the push down of investment in its subsidiaries. This activity also includes the intercompany transactions between consolidated entities as part of the Receivables Facility that is further discussed in Note 12. The Company’s subsidiaries generally do not purchase services from one another; thus, the intercompany transactions do not represent revenue generating transactions. All intercompany transactions eliminate in consolidation. From time to time, subsidiaries of the Company sell and/or repurchase noncontrolling interests in consolidated subsidiaries, which may change subsidiaries between guarantors and non-guarantors. Effective with the spin-off of QHC, all subsidiaries of the Company that were part of that distribution have been removed as guarantors. |
Basis of Presentation and Sig34
Basis of Presentation and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Schedule of Operating Revenues, Net of Contractual Allowances and Discounts (But Before the Provision for Bad Debts) | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Medicare $ 1,086 $ 1,265 $ 2,308 $ 2,696 Medicaid 529 553 1,059 1,145 Managed Care and other third-party payors 2,619 2,816 5,403 5,839 Self-pay 589 656 1,221 1,364 Total $ 4,823 $ 5,290 $ 9,991 $ 11,044 |
Accounting for Stock-Based Co35
Accounting for Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting for Stock-Based Compensation [Abstract] | |
Schedule of Share-based Compensation Expense | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Effect on loss from continuing operations before income taxes $ (6) $ (12) $ (15) $ (26) Effect on net loss $ (4) $ (7) $ (9) $ (15) |
Schedule of Share-based Compensation, Stock Options, Activity | Weighted- Aggregate Average Intrinsic Weighted- Remaining Value as of Average Contractual June 30, Shares Exercise Price Term 2017 Outstanding at December 31, 2016 1,185,320 $ 28.12 Granted - - Exercised - - Forfeited and cancelled (16,815) 28.82 Outstanding at March 31, 2017 1,168,505 31.71 Granted - - Exercised - - Forfeited and cancelled (16,168) 36.59 Outstanding at June 30, 2017 1,152,337 $ 31.65 2.5 years $ - Exercisable at June 30, 2017 1,152,337 $ 31.65 2.5 years $ - |
Schedule of Share-based Compensation, Restricted Stock, Activity | Weighted- Average Grant Shares Date Fair Value Unvested at December 31, 2016 2,969,285 $ 29.39 Granted 1,323,000 9.15 Vested (1,470,171) 35.31 Forfeited (32,837) 28.35 Unvested at March 31, 2017 2,789,277 16.69 Granted 133,000 9.15 Vested (15,002) 35.58 Forfeited (84,336) 16.24 Unvested at June 30, 2017 2,822,939 16.25 |
Schedule of Share-based Compensation, Restricted Stock Units, Activity | Weighted- Average Grant Shares Date Fair Value Unvested at December 31, 2016 120,386 $ 22.06 Granted 110,988 9.19 Vested (48,876) 29.95 Forfeited - - Unvested at March 31, 2017 182,498 13.19 Granted - - Vested (10,420) 19.97 Forfeited - - Unvested at June 30, 2017 172,078 12.78 |
Acquisitions and Divestitures36
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Acquisitions And Divestitures [Abstract] | |
Schedule of Net Operating Revenues and Loss and Assets and Liabilities Classified as Discontinued Operations | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Net operating revenues $ 21 $ 26 $ 45 $ 52 Loss from operations of entities sold or held for sale before income taxes $ (2) $ (2) $ (3) $ (3) Impairment of hospitals sold or held for sale (7) - (7) (2) Loss on sale, net (1) - (1) - Loss from discontinued operations, before taxes (10) (2) (11) (5) Income tax benefit (4) (1) (4) (2) Loss from discontinued operations, net of taxes $ (6) $ (1) $ (7) $ (3) |
Schedule of Balance Sheet Items Classified as Held for Sale | June 30, 2017 December 31, 2016 Other current assets $ 182 $ 117 Other assets, net 1,316 878 Accrued liabilities 116 81 |
Spin-Off of Quorum Health Cor37
Spin-Off of Quorum Health Corporation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Spin-Off of Quorum Health Corporation [Abstract] | |
Schedule of Operating Results included in Consolidated Statement of Income | Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Loss from operations before income taxes $ (7) $ (12) Less: Income attributable to noncontrolling interests - (1) Loss from operations before income taxes attributable to Community Health Systems, Inc. stockholders $ (7) $ (13) |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Other Intangible Assets [Abstract] | |
Schedule of Goodwill | Balance as of December 31, 2016 $ 6,521 Goodwill acquired as part of acquisitions during current year 3 Consideration and purchase price allocation adjustments for prior year’s acquisitions and other adjustments (2) Goodwill allocated to hospitals held for sale (357) Balance as of June 30, 2017 $ 6,165 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Numerator: Loss from continuing operations, net of taxes $ (116) $ (1,405) $ (292) $ (1,368) Less: Income from continuing operations attributable to noncontrolling interests, net of taxes 15 26 36 50 Loss from continuing operations attributable to Community Health Systems, Inc. common stockholders — basic and diluted $ (131) $ (1,431) $ (328) $ (1,418) Loss from discontinued operations, net of taxes $ (6) $ (1) $ (7) $ (3) Less: Loss from discontinued operations attributable to noncontrolling interests, net of taxes - - - - Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders — basic and diluted $ (6) $ (1) $ (7) $ (3) Denominator: Weighted-average number of shares outstanding — basic 111,909,858 110,879,285 111,582,911 110,563,576 Effect of dilutive securities: Restricted stock awards - - - - Employee stock options - - - - Other equity-based awards - - - - Weighted-average number of shares outstanding — diluted 111,909,858 110,879,285 111,582,911 110,563,576 |
Schedule of Antidilutive Securities | Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Dilutive securities outstanding not included in the computation of earnings per share because their effect is antidilutive: Employee stock options and restricted stock awards 2,360,317 2,530,686 2,934,023 2,601,706 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity [Abstract] | |
Schedule of Stockholders' Equity | Community Health Systems, Inc. Stockholders Redeemable Noncontrolling Interest Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings (Accumulated Deficit) Noncontrolling Interest Total Stockholders’ Equity Balance, December 31, 2016 $ 554 $ 1 $ 1,975 $ (62) $ (299) $ 113 $ 1,728 Comprehensive income 29 - - 9 (335) 7 (319) Contributions from noncontrolling interests 5 - - - - - - Distributions to noncontrolling interests (39) - - - - (14) (14) Purchase of subsidiary shares from noncontrolling interests (4) - - - - - - Disposition of less-than-wholly owned entity 4 - - - - (13) (13) Other reclassifications of - noncontrolling interests (1) - - - - 1 1 Noncontrolling interests in acquired entity - - - - - 1 1 Cancellation of restricted stock for tax withholdings on vested shares - - (5) - - - (5) Share-based compensation - - 14 - - - 14 Balance, June 30, 2017 $ 548 $ 1 $ 1,984 $ (53) $ (634) $ 95 $ 1,393 |
Schedule of Impact of Noncontrolling Interest to Stockholders' Equity | Six Months Ended June 30, 2017 Net loss attributable to Community Health Systems, Inc. stockholders $ (335) Transfers from the noncontrolling interests: Net decrease in Community Health Systems, Inc. paid-in-capital for purchase of subsidiary partnership interests - Net transfers from the noncontrolling interests - Change to Community Health Systems, Inc. stockholders’ equity from net loss attributable to Community Health Systems, Inc. stockholders and transfers to noncontrolling interests $ (335) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument [Line Items] | |
Schedule of Debt | June 30, December 31, 2017 2016 Credit Facility: Term A Loan $ - $ 749 Term F Loan - 1,445 Term G Loan 1,331 1,528 Term H Loan 2,440 2,811 Revolving credit loans - - 8% Senior Notes due 2019 1,925 1,925 7⅛% Senior Notes due 2020 1,200 1,200 5⅛% Senior Secured Notes due 2018 - 700 5⅛% Senior Secured Notes due 2021 1,000 1,000 6⅞% Senior Notes due 2022 3,000 3,000 6¼% Senior Secured Notes due 2023 3,100 - Receivables Facility 600 677 Capital lease obligations 285 328 Other 62 74 Less: Unamortized deferred debt issuance costs and note premium (195) (193) Total debt 14,748 15,244 Less: Current maturities (46) (455) Total long-term debt $ 14,702 $ 14,789 |
Senior Notes at 8.0, Due 2019 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Early Redemption Prices on Notes | Period Redemption Price November 15, 2016 to November 14, 2017 102.000 % November 15, 2017 to November 14, 2019 100.000 % |
Senior Notes at 7.125, Due 2020 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Early Redemption Prices on Notes | Period Redemption Price July 15, 2017 to July 14, 2018 101.781 % July 15, 2018 to July 14, 2020 100.000 % |
Senior Secured Notes At 5.125 Due 2018 [Member] | Senior Secured Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Early Redemption Prices on Notes | Period Redemption Price August 15, 2016 to August 14, 2017 101.281 % August 15, 2017 to August 14, 2018 100.000 % |
Senior Secured Notes at 5.125, Due 2021 [Member] | Senior Secured Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Early Redemption Prices on Notes | Period Redemption Price February 1, 2017 to January 31, 2018 103.844 % February 1, 2018 to January 31, 2019 102.563 % February 1, 2019 to January 31, 2020 101.281 % February 1, 2020 to January 31, 2021 100.000 % |
Senior Notes at 6.875, Due 2022 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Early Redemption Prices on Notes | Period Redemption Price February 1, 2018 to January 31, 2019 103.438 % February 1, 2019 to January 31, 2020 101.719 % February 1, 2020 to January 31, 2022 100.000 % |
Senior Secured Notes at 6.25, Due 2023 [Member] | Senior Secured Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Early Redemption Prices on Notes | Period Redemption Price March 31, 2020 to March 30, 2021 103.125 % March 31, 2021 to March 30, 2022 101.563 % March 31, 2022 to March 30, 2023 100.000 % |
Fair Value of Financial Instr42
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Schedule of Estimated Fair Value of Financial Instruments, by Balance Sheet Grouping | June 30, 2017 December 31, 2016 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Assets: Cash and cash equivalents $ 768 $ 768 $ 238 $ 238 Available-for-sale securities 309 309 299 299 Trading securities 53 53 80 80 Liabilities: Contingent Value Right 5 5 1 1 Credit Facility 3,718 3,769 6,456 6,370 8% Senior Notes 1,921 1,942 1,920 1,615 7⅛% Senior Notes 1,190 1,173 1,189 917 5⅛% Senior Secured Notes due 2018 - - 698 690 5⅛% Senior Secured Notes due 2021 975 1,015 972 930 6⅞% Senior Notes 2,937 2,622 2,932 2,102 6¼% Senior Secured Notes 3,061 3,216 - - Receivables Facility and other debt 661 661 749 749 |
Schedule of Interest Rate Swaps | Swap # Notional Amount (in millions) Fixed Interest Rate Termination Date Fair Value (in millions) 1 $ 400 1.882 % August 30, 2019 $ 2 2 200 2.515 % August 30, 2019 4 3 200 2.613 % August 30, 2019 4 4 300 2.041 % August 30, 2020 2 5 300 2.738 % August 30, 2020 9 6 300 2.892 % August 30, 2020 10 7 300 2.363 % January 27, 2021 5 8 200 2.368 % January 27, 2021 4 |
Schedule of Pre-tax (Loss) Gain Recognized as a Component of Other Comprehensive Income | Amount of Pre-Tax Loss Recognized in OCI (Effective Portion) Derivatives in Cash Flow Hedging Relationships Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest rate swaps $ (8) $ (18) $ (8) $ (62) |
Schedule of Effective Portion of the Pre-tax Loss Reclassified from AOCL into Interest Expense on the Consolidated Statements of Income | Amount of Pre-Tax Loss Reclassified Location of Loss Reclassified from from AOCL into Income (Effective Portion) AOCL into Income (Effective Portion) Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Interest expense, net $ 8 $ 16 $ 17 $ 30 |
Schedule of the Fair Value of Derivative Instruments in the Consolidated Balance Sheet | Asset Derivatives Liability Derivatives June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Balance Balance Balance Balance Sheet Sheet Sheet Sheet Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as Other Other Other Other hedging assets, assets, long-term long-term instruments net $ - net $ - liabilities $ 40 liabilities $ 49 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | June 30, 2017 Level 1 Level 2 Level 3 Available-for-sale securities $ 309 $ 171 $ 138 $ - Trading securities 53 53 - - Total assets $ 362 $ 224 $ 138 $ - Contingent Value Right (CVR) $ 5 $ 5 $ - $ - CVR-related liability 260 - - 260 Fair value of interest rate swap agreements 40 - 40 - Total liabilities $ 305 $ 5 $ 40 $ 260 December 31, 2016 Level 1 Level 2 Level 3 Available-for-sale securities $ 299 $ 163 $ 136 $ - Trading securities 80 80 - - Total assets $ 379 $ 243 $ 136 $ - Contingent Value Right (CVR) $ 1 $ 1 $ - $ - CVR-related liability 252 - - 252 Fair value of interest rate swap agreements 49 - 49 - Total liabilities $ 302 $ 1 $ 49 $ 252 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information [Abstract] | |
Schedule of Segment Reporting Information by Segment | Three Months Ended Six Months Ended June 30, 2016 June 30, 2016 Net operating revenues: Hospital operations $ 4,530 $ 9,475 Corporate and all other 60 114 Total $ 4,590 $ 9,589 Loss from continuing operations before income taxes: Hospital operations $ (1,452) $ (1,309) Corporate and all other (91) (171) Total $ (1,543) $ (1,480) |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component | Change in Change in Fair Change in Fair Unrecognized Accumulated Other Value of Interest Value of Available Pension Cost Comprehensive Rate Swaps for Sale Securities Components Income (Loss) Balance as of March 31, 2017 $ (26) $ (7) $ (21) $ (54) Other comprehensive (loss) income before reclassifications (7) 2 - (5) Amounts reclassified from accumulated other comprehensive income 5 - 1 6 Net current-period other comprehensive (loss) income (2) 2 1 1 Balance as of June 30, 2017 $ (28) $ (5) $ (20) $ (53) Change in Change in Fair Change in Fair Unrecognized Accumulated Other Value of Interest Value of Available Pension Cost Comprehensive Rate Swaps for Sale Securities Components Income (Loss) Balance as of December 31, 2016 $ (31) $ (10) $ (21) $ (62) Other comprehensive (loss) income before reclassifications (8) 5 - (3) Amounts reclassified from accumulated other comprehensive income 11 - 1 12 Net current-period other comprehensive income 3 5 1 9 Balance as of June 30, 2017 $ (28) $ (5) $ (20) $ (53) Change in Change in Fair Change in Fair Unrecognized Accumulated Other Value of Interest Value of Available Pension Cost Comprehensive Rate Swaps for Sale Securities Components Income (Loss) Balance as of March 31, 2016 $ (67) $ 3 $ (25) $ (89) Other comprehensive loss before reclassifications (12) (3) - (15) Amounts reclassified from accumulated other comprehensive income 10 - 2 12 Net current-period other comprehensive (loss) income (2) (3) 2 (3) AOCI distributed to QHC in spin-off - - 2 2 Balance as of June 30, 2016 $ (69) $ - $ (21) $ (90) Change in Change in Fair Change in Fair Unrecognized Accumulated Other Value of Interest Value of Available Pension Cost Comprehensive Rate Swaps for Sale Securities Components Income (Loss) Balance as of December 31, 2015 $ (48) $ 1 $ (26) $ (73) Other comprehensive loss before reclassifications (40) (1) - (41) Amounts reclassified from accumulated other comprehensive income 19 - 3 22 Net current-period other comprehensive (loss) income (21) (1) 3 (19) AOCI distributed to QHC in spin-off - - 2 2 Balance as of June 30, 2016 $ (69) $ - $ (21) $ (90) |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss | Amount reclassified from AOCL Affected line item in the Details about accumulated other Three Months Ended Six Months Ended statement where net comprehensive income (loss) components June 30, 2017 June 30, 2017 income (loss) is presented Gains and losses on cash flow hedges Interest rate swaps $ (8) $ (17) Interest expense, net 3 6 Tax benefit $ (5) $ (11) Net of tax Amortization of defined benefit pension items Prior service costs $ (1) $ (1) Salaries and benefits Actuarial losses - (1) Salaries and benefits (1) (2) Total before tax - 1 Tax benefit $ (1) $ (1) Net of tax Amount reclassified from AOCL Affected line item in the Details about accumulated other Three Months Ended Six Months Ended statement where net comprehensive income (loss) components June 30, 2016 June 30, 2016 income (loss) is presented Gains and losses on cash flow hedges Interest rate swaps $ (16) $ (30) Interest expense, net 6 11 Tax benefit $ (10) $ (19) Net of tax Amortization of defined benefit pension items Prior service costs $ - $ (1) Salaries and benefits Actuarial losses (2) (3) Salaries and benefits (2) (4) Total before tax - 1 Tax benefit $ (2) $ (3) Net of tax |
Contingencies (Tables)
Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Contingencies [Abstract] | |
Impact of Legal Expenses Paid or Incurred to Date and Settlements Paid or Deemed Final | Allocation of Expenses and Settlements Paid Reduction to Total Expenses Company's Amount Owed and Settlement Responsibility to CVR Holders Cost Deductible at 10% at 90% As of December 31, 2016 $ 62 $ 18 $ 4 $ 40 Settlements paid - - - - Legal expenses incurred and/or paid during the six months ended June 30, 2017 1 - - 1 As of June 30, 2017 $ 63 $ 18 $ 4 $ 41 |
Schedule of Reconciliation of the Beginning and Ending Liability Balances in Connection with Probable Contingencies | CVR-Related Other Liability Probable at Fair Value Contingencies Balance as of December 31, 2016 $ 252 $ 14 Expense 8 12 Cash payments - (1) Balance as of June 30, 2017 $ 260 $ 25 |
Supplemental Condensed Consol47
Supplemental Condensed Consolidating Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Condensed Consolidating Financial Information [Abstract] | |
Schedule of Condensed Consolidating Statement of Loss | Condensed Consolidating Statement of Loss Three Months Ended June 30, 2017 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Operating revenues (net of contractual allowances and discounts) $ - $ (6) $ 2,970 $ 1,859 $ - $ 4,823 Provision for bad debts - - 438 241 - 679 Net operating revenues - (6) 2,532 1,618 - 4,144 Operating costs and expenses: Salaries and benefits - - 990 930 - 1,920 Supplies - - 440 257 - 697 Other operating expenses - - 669 348 - 1,017 Government and other legal settlements and related costs - - 7 - - 7 Electronic health records incentive reimbursement - - (11) (6) - (17) Rent - - 55 49 - 104 Depreciation and amortization - - 137 86 - 223 Impairment and (gain) loss on sale of businesses, net - - 89 (9) - 80 Total operating costs and expenses - - 2,376 1,655 - 4,031 (Loss) income from operations - (6) 156 (37) - 113 Interest expense, net - 87 148 4 - 239 Loss from early extinguishment of debt - 10 - - - 10 Equity in earnings of unconsolidated affiliates 137 51 23 - (216) (5) (Loss) income from continuing operations before income taxes (137) (154) (15) (41) 216 (131) (Benefit from) provision for income taxes - (17) 33 (31) - (15) (Loss) income from continuing operations (137) (137) (48) (10) 216 (116) Discontinued operations, net of taxes: Loss from operations of entities sold or held for sale - - 2 (3) - (1) Impairment of hospitals sold or held for sale - - (5) - - (5) Loss from discontinued operations, net of taxes - - (3) (3) - (6) Net loss (137) (137) (51) (13) 216 (122) Less: Net income attributable to noncontrolling interests - - - 15 - 15 Net loss attributable to Community Health Systems, Inc. stockholders $ (137) $ (137) $ (51) $ (28) $ 216 $ (137) Condensed Consolidating Statement of Loss Three Months Ended June 30, 2016 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Operating revenues (net of contractual allowances and discounts) $ - $ (6) $ 3,220 $ 2,076 $ - $ 5,290 Provision for bad debts - - 452 248 - 700 Net operating revenues - (6) 2,768 1,828 - 4,590 Operating costs and expenses: Salaries and benefits - - 1,130 1,024 - 2,154 Supplies - - 495 264 - 759 Other operating expenses - - 683 373 - 1,056 Electronic health records incentive reimbursement - - (21) (10) - (31) Rent - - 56 56 - 112 Depreciation and amortization - - 181 95 - 276 Impairment and (gain) loss on sale of businesses, net - - 1,134 505 - 1,639 Total operating costs and expenses - - 3,658 2,307 - 5,965 Loss from operations - (6) (890) (479) - (1,375) Interest expense, net - 39 186 21 - 246 Loss from early extinguishment of debt - 30 - - - 30 Gain on sale of investments in unconsolidated affiliates - - (94) - - (94) Equity in earnings of unconsolidated affiliates 1,432 1,384 462 - (3,292) (14) Loss from continuing operations before income taxes (1,432) (1,459) (1,444) (500) 3,292 (1,543) Benefit from income taxes - (27) (57) (54) - (138) Loss from continuing operations (1,432) (1,432) (1,387) (446) 3,292 (1,405) Discontinued operations, net of taxes: (Loss) income from operations of entities sold or held for sale - - (2) 1 - (1) (Loss) income from discontinued operations, net of taxes - - (2) 1 - (1) Net loss (1,432) (1,432) (1,389) (445) 3,292 (1,406) Less: Net income attributable to noncontrolling interests - - - 26 - 26 Net loss attributable to Community Health Systems, Inc. stockholders $ (1,432) $ (1,432) $ (1,389) $ (471) $ 3,292 $ (1,432) Condensed Consolidating Statement of Loss Six Months Ended June 30, 2017 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Operating revenues (net of contractual allowances and discounts) $ - $ (12) $ 6,336 $ 3,667 $ - $ 9,991 Provision for bad debts - - 928 434 - 1,362 Net operating revenues - (12) 5,408 3,233 - 8,629 Operating costs and expenses: Salaries and benefits - - 2,125 1,856 - 3,981 Supplies - - 952 494 - 1,446 Other operating expenses - - 1,420 654 - 2,074 Government and other legal settlements and related costs - - (34) - - (34) Electronic health records incentive reimbursement - - (13) (10) - (23) Rent - - 116 98 - 214 Depreciation and amortization - - 291 167 - 458 Impairment and (gain) loss on sale of businesses, net - - 273 57 - 330 Total operating costs and expenses - - 5,130 3,316 - 8,446 (Loss) income from operations - (12) 278 (83) - 183 Interest expense, net - 157 300 11 - 468 Loss from early extinguishment of debt - 31 - - - 31 Equity in earnings of unconsolidated affiliates 335 171 77 - (592) (9) Loss from continuing operations before income taxes (335) (371) (99) (94) 592 (307) (Benefit from) provision for income taxes - (36) 69 (48) - (15) Loss from continuing operations (335) (335) (168) (46) 592 (292) Discontinued operations, net of taxes: Loss from operations of entities sold or held for sale - - (1) (1) - (2) Impairment of hospitals sold or held for sale - - (5) - - (5) Loss from discontinued operations, net of taxes - - (6) (1) - (7) Net loss (335) (335) (174) (47) 592 (299) Less: Net income attributable to noncontrolling interests - - - 36 - 36 Net loss attributable to Community Health Systems, Inc. stockholders $ (335) $ (335) $ (174) $ (83) $ 592 $ (335) Condensed Consolidating Statement of Loss Six Months Ended June 30, 2016 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Operating revenues (net of contractual allowances and discounts) $ - $ (12) $ 6,507 $ 4,549 $ - $ 11,044 Provision for bad debts - - 929 526 - 1,455 Net operating revenues - (12) 5,578 4,023 - 9,589 Operating costs and expenses: Salaries and benefits - - 2,235 2,235 - 4,470 Supplies - - 991 568 - 1,559 Other operating expenses - - 1,362 867 - 2,229 Government and other legal settlements and related costs - - 1 - - 1 Electronic health records incentive reimbursement - - (29) (20) - (49) Rent - - 113 118 - 231 Depreciation and amortization - - 366 208 - 574 Impairment and (gain) loss on sale of businesses, net - - 1,145 511 - 1,656 Total operating costs and expenses - - 6,184 4,487 - 10,671 Loss from operations - (12) (606) (464) - (1,082) Interest expense, net - 74 366 56 - 496 Loss from early extinguishment of debt - 30 - - - 30 Gain on sale of investments in unconsolidated affiliates - - (94) - - (94) Equity in earnings of unconsolidated affiliates 1,421 1,325 469 - (3,249) (34) Loss from continuing operations before income taxes (1,421) (1,441) (1,347) (520) 3,249 (1,480) Benefit from income taxes - (20) (19) (73) - (112) Loss from continuing operations (1,421) (1,421) (1,328) (447) 3,249 (1,368) Discontinued operations, net of taxes: (Loss) income from operations of entities sold or held for sale - - (3) 1 - (2) Impairment of hospitals sold or held for sale - - - (1) - (1) Loss from discontinued operations, net of taxes - - (3) - - (3) Net loss (1,421) (1,421) (1,331) (447) 3,249 (1,371) Less: Net income attributable to noncontrolling interests - - - 50 - 50 Net loss attributable to Community Health Systems, Inc. stockholders $ (1,421) $ (1,421) $ (1,331) $ (497) $ 3,249 $ (1,421) |
Schedule of Condensed Consolidating Statement of Comprehensive Loss | Condensed Consolidating Statement of Comprehensive Loss Three Months Ended June 30, 2017 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Net loss $ (137) $ (137) $ (51) $ (13) $ 216 $ (122) Other comprehensive income, net of income taxes: Net change in fair value of interest rate swaps, net of tax (2) (2) - - 2 (2) Net change in fair value of available-for-sale securities, net of tax 2 2 2 - (4) 2 Amortization and recognition of unrecognized pension cost components, net of tax 1 1 1 - (2) 1 Other comprehensive income 1 1 3 - (4) 1 Comprehensive loss (136) (136) (48) (13) 212 (121) Less: Comprehensive income attributable to noncontrolling interests - - - 15 - 15 Comprehensive loss attributable to Community Health Systems, Inc. stockholders $ (136) $ (136) $ (48) $ (28) $ 212 $ (136) Condensed Consolidating Statement of Comprehensive Loss Three Months Ended June 30, 2016 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Net loss $ (1,432) $ (1,432) $ (1,389) $ (445) $ 3,292 $ (1,406) Other comprehensive loss, net of income taxes: Net change in fair value of interest rate swaps, net of tax (2) (2) - - 2 (2) Net change in fair value of available-for-sale securities, net of tax (3) (3) (3) - 6 (3) Amortization and recognition of unrecognized pension cost components, net of tax 2 2 2 - (4) 2 Other comprehensive loss (3) (3) (1) - 4 (3) Comprehensive loss (1,435) (1,435) (1,390) (445) 3,296 (1,409) Less: Comprehensive income attributable to noncontrolling interests - - - 26 - 26 Comprehensive loss attributable to Community Health Systems, Inc. stockholders $ (1,435) $ (1,435) $ (1,390) $ (471) $ 3,296 $ (1,435) Condensed Consolidating Statement of Comprehensive Loss Six Months Ended June 30, 2017 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Net loss $ (335) $ (335) $ (174) $ (47) $ 592 $ (299) Other comprehensive income, net of income taxes: Net change in fair value of interest rate swaps, net of tax 3 3 - - (3) 3 Net change in fair value of available-for-sale securities, net of tax 5 5 5 - (10) 5 Amortization and recognition of unrecognized pension cost components, net of tax 1 1 1 - (2) 1 Other comprehensive income 9 9 6 - (15) 9 Comprehensive loss (326) (326) (168) (47) 577 (290) Less: Comprehensive income attributable to noncontrolling interests - - - 36 - 36 Comprehensive loss attributable to Community Health Systems, Inc. stockholders $ (326) $ (326) $ (168) $ (83) $ 577 $ (326) Condensed Consolidating Statement of Comprehensive Loss Six Months Ended June 30, 2016 Parent Guarantor Issuer Other Guarantors Non - Guarantors Eliminations Consolidated (In millions) Net loss $ (1,421) $ (1,421) $ (1,331) $ (447) $ 3,249 $ (1,371) Other comprehensive (loss) income, net of income taxes: Net change in fair value of interest rate swaps, net of tax (21) (21) - - 21 (21) Net change in fair value of available-for-sale securities, net of tax (1) (1) (1) - 2 (1) Amortization and recognition of unrecognized pension cost components, net of tax 3 3 3 - (6) 3 Other comprehensive (loss) income (19) (19) 2 - 17 (19) Comprehensive loss (1,440) (1,440) (1,329) (447) 3,266 (1,390) Less: Comprehensive income attributable to noncontrolling interests - - - 50 - 50 Comprehensive loss attributable to Community Health Systems, Inc. stockholders $ (1,440) $ (1,440) $ (1,329) $ (497) $ 3,266 $ (1,440) |
Schedule of Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet June 30, 2017 Parent Other Non - Guarantor Issuer Guarantors Guarantors Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ - $ - $ 685 $ 83 $ - $ 768 Patient accounts receivable, net of allowance for doubtful accounts - - 684 2,255 - 2,939 Supplies - - 281 157 - 438 Prepaid income taxes 22 - - - - 22 Prepaid expenses and taxes - - 157 53 - 210 Other current assets - - 489 189 - 678 Total current assets 22 - 2,296 2,737 - 5,055 Intercompany receivable 282 14,341 4,781 5,955 (25,359) - Property and equipment, net - - 4,557 2,755 - 7,312 Goodwill - - 3,404 2,761 - 6,165 Other assets, net 14 14 2,512 1,020 (1,219) 2,341 Net investment in subsidiaries 1,402 22,217 9,347 - (32,966) - Total assets $ 1,720 $ 36,572 $ 26,897 $ 15,228 $ (59,544) $ 20,873 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ - $ - $ 38 $ 8 $ - $ 46 Accounts payable - - 596 321 - 917 Accrued interest - 235 - 1 - 236 Accrued liabilities 14 - 694 471 - 1,179 Total current liabilities 14 235 1,328 801 - 2,378 Long-term debt - 13,802 197 703 - 14,702 Intercompany payable - 19,915 21,925 12,370 (54,210) - Deferred income taxes 396 - - - - 396 Other long-term liabilities 12 1,218 1,117 328 (1,219) 1,456 Total liabilities 422 35,170 24,567 14,202 (55,429) 18,932 Redeemable noncontrolling interests in equity of consolidated subsidiaries - - - 548 - 548 Equity: Community Health Systems, Inc. stockholders’ equity: Common stock 1 - - - - 1 Additional paid-in capital 1,984 549 907 732 (2,188) 1,984 Accumulated other comprehensive loss (53) (53) (20) (6) 79 (53) (Accumulated deficit) retained earnings (634) 906 1,443 (343) (2,006) (634) Total Community Health Systems, Inc. stockholders’ equity 1,298 1,402 2,330 383 (4,115) 1,298 Noncontrolling interests in equity of consolidated subsidiaries - - - 95 - 95 Total equity 1,298 1,402 2,330 478 (4,115) 1,393 Total liabilities and equity $ 1,720 $ 36,572 $ 26,897 $ 15,228 $ (59,544) $ 20,873 Condensed Consolidating Balance Sheet December 31, 2016 Parent Other Non - Guarantor Issuer Guarantors Guarantors Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ - $ - $ 162 $ 76 $ - $ 238 Patient accounts receivable, net of allowance for doubtful accounts - - 843 2,333 - 3,176 Supplies - - 324 156 - 480 Prepaid income taxes 17 - - - - 17 Prepaid expenses and taxes - - 133 54 - 187 Other current assets - - 283 285 - 568 Total current assets 17 - 1,745 2,904 - 4,666 Intercompany receivable 295 14,966 667 6,985 (22,913) - Property and equipment, net - - 5,403 2,746 - 8,149 Goodwill - - 3,735 2,786 - 6,521 Other assets, net 15 - 2,820 995 (1,222) 2,608 Net investment in subsidiaries 1,728 22,205 8,607 - (32,540) - Total assets $ 2,055 $ 37,171 $ 22,977 $ 16,416 $ (56,675) $ 21,944 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ - $ 149 $ 56 $ 250 $ - $ 455 Accounts payable - - 715 280 - 995 Accrued interest - 205 1 1 - 207 Accrued liabilities 17 - 775 438 - 1,230 Total current liabilities 17 354 1,547 969 - 2,887 Long-term debt - 14,018 233 538 - 14,789 Intercompany payable - 19,811 17,508 13,393 (50,712) - Deferred income taxes 411 - - - - 411 Other long-term liabilities 12 1,259 1,187 339 (1,222) 1,575 Total liabilities 440 35,442 20,475 15,239 (51,934) 19,662 Redeemable noncontrolling interests in equity of consolidated subsidiaries - - - 554 - 554 Equity: Community Health Systems, Inc. stockholders’ equity: Common stock 1 - - - - 1 Additional paid-in capital 1,975 676 1,080 816 (2,572) 1,975 Accumulated other comprehensive loss (62) (62) (22) (9) 93 (62) (Accumulated deficit) retained earnings (299) 1,115 1,444 (297) (2,262) (299) Total Community Health Systems, Inc. stockholders’ equity 1,615 1,729 2,502 510 (4,741) 1,615 Noncontrolling interests in equity of consolidated subsidiaries - - - 113 - 113 Total equity 1,615 1,729 2,502 623 (4,741) 1,728 Total liabilities and equity $ 2,055 $ 37,171 $ 22,977 $ 16,416 $ (56,675) $ 21,944 |
Schedule of Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2017 Parent Other Non - Guarantor Issuer Guarantors Guarantors Eliminations Consolidated (In millions) Net cash (used in) provided by operating activities $ (11) $ (163) $ 381 $ 296 $ - $ 503 Cash flows from investing activities: Acquisitions of facilities and other related equipment - - - (4) - (4) Purchases of property and equipment - - (182) (92) - (274) Proceeds from disposition of hospitals and other ancillary operations - - 921 - - 921 Proceeds from sale of property and equipment - - 2 1 - 3 Purchases of available-for-sale securities - - (27) (10) - (37) Proceeds from sales of available-for-sale securities - - 38 9 - 47 Increase in other investments - - (51) (9) - (60) Net provided by (cash used) in investing activities - - 701 (105) - 596 Cash flows from financing activities: Repurchase of restricted stock shares for payroll tax withholding requirements (5) - - - - (5) Deferred financing costs and other debt-related costs - (62) - - - (62) Proceeds from noncontrolling investors in joint ventures - - - 5 - 5 Redemption of noncontrolling investments in joint ventures - - - (4) - (4) Distributions to noncontrolling investors in joint ventures - - - (53) - (53) Changes in intercompany balances with affiliates, net 16 578 (536) (58) - - Borrowings under credit agreements - 795 26 19 - 840 Issuance of long-term debt - 3,100 - - - 3,100 Proceeds from receivables facility - - - 26 - 26 Repayments of long-term indebtedness - (4,248) (49) (119) - (4,416) Net cash provided by (used in) financing activities 11 163 (559) (184) - (569) Net change in cash and cash equivalents - - 523 7 - 530 Cash and cash equivalents at beginning of period - - 162 76 - 238 Cash and cash equivalents at end of period $ - $ - $ 685 $ 83 $ - $ 768 Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2016 Parent Other Non - Guarantor Issuer Guarantors Guarantors Eliminations Consolidated (In millions) Net cash (used in) provided by operating activities $ (5) $ (294) $ 599 $ 332 $ - $ 632 Cash flows from investing activities: Acquisitions of facilities and other related equipment - - (3) (111) - (114) Purchases of property and equipment - - (282) (125) - (407) Proceeds from disposition of hospitals and other ancillary operations - - 8 4 - 12 Proceeds from sale of property and equipment - - 4 3 - 7 Purchases of available-for-sale securities - - (21) (42) - (63) Proceeds from sales of available-for-sale securities - - 14 219 - 233 Proceeds from sale of investments in unconsolidated affiliates - - 403 - - 403 Distribution from Quorum Health Corporation - 1,219 - - - 1,219 Increase in other investments - - (84) (29) - (113) Net cash provided by (used in) investing activities - 1,219 39 (81) - 1,177 Cash flows from financing activities: Repurchase of restricted stock shares for payroll tax withholding requirements (5) - - - - (5) Deferred financing costs and other debt-related costs - (22) - - - (22) Redemption of noncontrolling investments in joint ventures - - - (16) - (16) Distributions to noncontrolling investors in joint ventures - - - (47) - (47) Changes in intercompany balances with affiliates, net 10 497 (469) (38) - - Borrowings under credit agreements - 2,783 2 21 - 2,806 Proceeds from receivables facility - - - 31 - 31 Repayments of long-term indebtedness - (4,183) (25) (71) - (4,279) Net cash provided by (used in) financing activities 5 (925) (492) (120) - (1,532) Net change in cash and cash equivalents - - 146 131 - 277 Cash and cash equivalents at beginning of period - - 32 152 - 184 Cash and cash equivalents at end of period $ - $ - $ 178 $ 283 $ - $ 461 |
Basis of Presentation and Sig48
Basis of Presentation and Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for Doubtful Accounts, Policy [Abstract] | ||||
Number of days from the date of discharge over which all accounts are reserved 100% | 365 days | |||
Electronic Health Records Reimbursement, Policy [Abstract] | ||||
Electronic health records incentive reimbursement under HITECH | $ 17 | $ 31 | $ 23 | $ 49 |
Electronic Health Records Incentive Reimbursement, Cash Received | 25 | 18 | 36 | 102 |
Accounting for the Impairment or Disposal of Long-Lived Assets [Abstract] | ||||
Goodwill allocated to hospital disposal group held for sale | 357 | 357 | ||
New Accounting Pronouncements, Policy [Abstract] | ||||
Current provision for income taxes | 16 | |||
Reporting Unit Carrying Amount In Excess Of Estimated Fair Value | 800 | 800 | ||
Electronic Health Records Incentive Reimbursements [Member] | ||||
Electronic Health Records Reimbursement, Policy [Abstract] | ||||
Deferred Revenue | $ 2 | $ 4 | 2 | $ 4 |
Certain Hospitals [Member] | ||||
Accounting for the Impairment or Disposal of Long-Lived Assets [Abstract] | ||||
Long-lived assets at certain of the hospitals intended to sell | $ 330 |
Basis of Presentation and Sig49
Basis of Presentation and Significant Accounting Policies (Schedule of Operating Revenue, Net of Contractual Allowances and Discounts (But Before the Provision for Bad Debts)) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Operating revenues (net of contractual allowances and discounts) | $ 4,823 | $ 5,290 | $ 9,991 | $ 11,044 |
Medicare [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Operating revenues (net of contractual allowances and discounts) | 1,086 | 1,265 | 2,308 | 2,696 |
Medicaid [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Operating revenues (net of contractual allowances and discounts) | 529 | 553 | 1,059 | 1,145 |
Managed Care And Other Third Party Payors [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Operating revenues (net of contractual allowances and discounts) | 2,619 | 2,816 | 5,403 | 5,839 |
Self-Pay [Member] | ||||
Health Care Organization, Receivable and Revenue Disclosures [Line Items] | ||||
Operating revenues (net of contractual allowances and discounts) | $ 589 | $ 656 | $ 1,221 | $ 1,364 |
Accounting for Stock-Based Co50
Accounting for Stock-Based Compensation (Narrative) (Details) - USD ($) | Mar. 01, 2017 | Mar. 01, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate intrinsic value of options exercised | $ 0 | $ 0 | $ 0 | $ 0 | |||
Common Class A [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Price | $ 9.96 | $ 9.96 | |||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards | $ 0 | $ 0 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted, Shares | 110,988 | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | one-third increments on each of the first three anniversaries of the award date | ||||||
Granted, Shares | 133,000 | 1,323,000 | |||||
Restricted Stock and Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards | $ 31,000,000 | $ 31,000,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 22 months | ||||||
Restricted Stock, Performance-Based Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | one-third increments on each of the first three anniversaries of the award date | ||||||
Plan 2000 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | one-third increments on each of the first three anniversaries of the award date | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 0 | 0 | |||||
Plan 2009 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | one-third increments on each of the first three anniversaries of the award date | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,868,024 | 3,868,024 | |||||
Plan 2009 [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | 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, other than for cause | ||||||
Fair value of units granted | $ 170,000 | $ 170,000 | |||||
Share-based Compensation, Number of Shares Received by Each Director | 18,498 | 11,017 | |||||
Contractual Term of Option Granted Prior to 2005 [Member] | Plan 2000 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based Compensation Contractual Term of Option Granted | 10 years | ||||||
Contractual Term of Option Granted From 2005 Through 2007 [Member] | Plan 2000 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based Compensation Contractual Term of Option Granted | 8 years | ||||||
Contractual Term Of Option Granted From 2008 Through 2011 [Member] | Plan 2000 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based Compensation Contractual Term of Option Granted | 10 years | ||||||
Contractual Term of Option Granted in 2011 or Later [Member] | Plan 2009 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based Compensation Contractual Term of Option Granted | 10 years |
Accounting for Stock-Based Co51
Accounting for Stock-Based Compensation (Schedule of Share-based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting for Stock-Based Compensation [Abstract] | ||||
Effect on loss from continuing operations before income taxes | $ (6) | $ (12) | $ (15) | $ (26) |
Effect on net loss | $ (4) | $ (7) | $ (9) | $ (15) |
Accounting for Stock-Based Co52
Accounting for Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details) - Employee Stock Option [Member] - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Balance, shares | 1,168,505 | 1,185,320 | 1,185,320 |
Forfeited and Cancelled, Shares | (16,168) | (16,815) | |
Ending Balance, shares | 1,152,337 | 1,168,505 | 1,152,337 |
Beginning of Period, Weighted Average Exercise Price | $ 31.71 | $ 28.12 | $ 28.12 |
Forfeited and Cancelled, Weighted Average Exercise Price | 36.59 | 28.82 | |
End of Period, Weighted Average Exercise Price | $ 31.65 | $ 31.71 | $ 31.65 |
Weighted Average Remaining Contractual Term | 2 years 6 months | ||
Exercisable, Shares | 1,152,337 | 1,152,337 | |
Exercisable, Weighted Average Exercise Price | $ 31.65 | $ 31.65 | |
Exercisable, Weighted Average Remaining Contractual Term | 2 years 6 months |
Accounting for Stock-Based Co53
Accounting for Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock, Activity) (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, Unvested Shares | 2,789,277 | 2,969,285 |
Granted, Shares | 133,000 | 1,323,000 |
Vested, Shares | (15,002) | (1,470,171) |
Forfeited, Shares | (84,336) | (32,837) |
Ending Balance, Unvested Shares | 2,822,939 | 2,789,277 |
Beginning of Period, Weighted Average Grant Date Fair Value | $ 16.69 | $ 29.39 |
Granted, Weighted Average Grant Date Fair Value | 9.15 | 9.15 |
Vested, Weighted Average Grant Date Fair Value | 35.58 | 35.31 |
Forfeited, Weighted Average Grant Date Fair Value | 16.24 | 28.35 |
End of Period, Weighted Average Grant Date Fair Value | $ 16.25 | $ 16.69 |
Accounting for Stock Based Comp
Accounting for Stock Based Compensation (Schedule of Share-based Compensation, Restricted Stock Units, Activity) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, Unvested Shares | 182,498 | 120,386 |
Granted, Shares | 110,988 | |
Vested, Shares | (10,420) | (48,876) |
Ending Balance, Unvested Shares | 172,078 | 182,498 |
Beginning of Period, Weighted Average Grant Date Fair Value | $ 13.19 | $ 22.06 |
Granted, Weighted Average Grant Date Fair Value | 9.19 | |
Vested, Weighted Average Grant Date Fair Value | 19.97 | 29.95 |
End of Period, Weighted Average Grant Date Fair Value | $ 12.78 | $ 13.19 |
Cost of Revenue (Details)
Cost of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cost of Revenue [Abstract] | ||||
Corporate Office Costs | $ 40 | $ 44 | $ 92 | $ 104 |
Share-based Compensation | $ 6 | $ 12 | $ 15 | $ 26 |
Acquisitions and Divestitures56
Acquisitions and Divestitures (Acquisitions Narrative) (Details) $ in Millions | Apr. 01, 2016USD ($)item | Mar. 01, 2016USD ($)item | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||
Business Combination, Acquisition Related Costs | $ 1 | $ 1 | $ 1 | $ 3 | |||
Business Acquisition, Purchase Price Allocation, Goodwill | 6,165 | 6,165 | $ 6,521 | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent | |||||||
Physicians' Specialty Hospital [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Apr. 1, 2016 | ||||||
Business Acquisition, Number of Licensed Hospital or Facility Beds | item | 20 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 2 | ||||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 14 | ||||||
Business Acquisition, Purchase Price Allocation, Goodwill | 12 | $ 12 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | ||||||
Business Combination, Assumed Noncontrolling Interest, Fair Value | $ 2 | ||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 12 | ||||||
Indiana University Health [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Effective Date of Acquisition | Mar. 1, 2016 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | $ 8 | ||||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 104 | ||||||
Business Acquisition, Purchase Price Allocation, Goodwill | 45 | $ 45 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | ||||||
Business Combination, Assumed Noncontrolling Interest, Fair Value | $ 25 | ||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | $ 96 | ||||||
IU Health La Porte Hospital [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Number of Licensed Hospital or Facility Beds | item | 227 | ||||||
IU Health Starke Hospital [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Number of Licensed Hospital or Facility Beds | item | 50 | ||||||
Physician Practices Clinics and Other Ancillary Businesses [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | 4 | ||||||
Business Acquisition, Purchase Price Allocation, Property, Plant and Equipment | 1 | 1 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 3 | $ 3 |
Acquisitions and Divestitures57
Acquisitions and Divestitures (Divestitures Narrative) (Details) $ in Millions | Jun. 30, 2017USD ($)item | May 01, 2017USD ($)item | Dec. 31, 2016USD ($) | Sep. 03, 2016USD ($)item | Feb. 01, 2016USD ($)item | Jan. 01, 2016USD ($)item | Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 921 | $ 12 | ||||||||||||
Impairment of goodwill | 1,400 | $ 1,395 | ||||||||||||
Impairment and (gain) loss on sale of businesses, net | $ 80 | $ 1,639 | 330 | 1,656 | ||||||||||
Impairment of hospitals in discontinued operations | $ 5 | 5 | $ 1 | |||||||||||
Goodwill, Written off Related to Disposal of Assets Held-for-Sale | $ 357 | |||||||||||||
Williamson Memorial Hospital [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 76 | 76 | 76 | |||||||||||
Lehigh Regional Medical Center [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Disposal Date | Feb. 1, 2016 | |||||||||||||
Number of licensed beds | item | 88 | |||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 11 | |||||||||||||
Impairment and (gain) loss on sale of businesses, net | $ 4 | |||||||||||||
Bartow Regional Medical Center [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Disposal Date | Jan. 1, 2016 | |||||||||||||
Number of licensed beds | item | 72 | |||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 60 | |||||||||||||
Impairment and (gain) loss on sale of businesses, net | $ 5 | |||||||||||||
McNairy Regional Hospital [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Impairment and (gain) loss on sale of businesses, net | $ 7 | $ 0 | ||||||||||||
Alliance Health Blackwell [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Disposal Date | Sep. 3, 2016 | |||||||||||||
Number of licensed beds | item | 53 | |||||||||||||
Impairment and (gain) loss on sale of businesses, net | $ 3 | |||||||||||||
Home Care [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Disposal Date | Dec. 31, 2016 | |||||||||||||
Percentage of ownership interest sold | 80.00% | 80.00% | ||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 128 | |||||||||||||
Gain on sale | $ 91 | |||||||||||||
Lake Area Medical Center [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Disposal Date | Jun. 30, 2017 | |||||||||||||
Number of licensed beds | item | 88 | 88 | 88 | |||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 32 | |||||||||||||
Stringfellow Memorial Hospital [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Disposal Date | May 1, 2017 | |||||||||||||
Number of licensed beds | item | 125 | |||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 14 | |||||||||||||
Curae Health, Inc. [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Disposal Date | May 1, 2017 | |||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 32 | |||||||||||||
Merit Health Gilmore Memorial [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 95 | |||||||||||||
Merit Health Batesville [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 112 | |||||||||||||
Steward Health, Inc. [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Disposal Date | May 1, 2017 | |||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 304 | |||||||||||||
Easton Hospital [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 196 | |||||||||||||
Sharon Regional Health System [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 258 | |||||||||||||
Northside Medical Center [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 355 | |||||||||||||
Trumbull Memorial Hospital [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 311 | |||||||||||||
Hillside Rehabilitation Hospital [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 69 | |||||||||||||
Wuesthoff Health System - Rockledge [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 298 | |||||||||||||
Wuesthoff Health System - Melbourne [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 119 | |||||||||||||
Sebastian River Medical Center [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Number of licensed beds | item | 154 | |||||||||||||
AllianceHealth Pryor [Member] | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Disposal Date | May 1, 2017 | |||||||||||||
Number of licensed beds | item | 52 | |||||||||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ 1 |
Acquisitions and Divestitures58
Acquisitions and Divestitures (Schedule of Net Operating Revenues and Loss and Assets and Liabilities Classified as Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Acquisitions And Divestitures [Abstract] | ||||
Net operating revenues | $ 21 | $ 26 | $ 45 | $ 52 |
Loss from operations of entities sold or held for sale before income taxes | (2) | (2) | (3) | (3) |
Impairment of hospitals sold or held for sale | (7) | (7) | (2) | |
Loss on sale, net | (1) | (1) | ||
Loss from discontinued operations, before taxes | (10) | (2) | (11) | (5) |
Income tax benefit | (4) | (1) | (4) | (2) |
Loss from discontinued operations, net of taxes | $ (6) | $ (1) | $ (7) | $ (3) |
Acquisitions and Divestitures59
Acquisitions and Divestitures (Schedule of Balance Sheet Items Classified as Held for Sale) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Acquisitions And Divestitures [Abstract] | ||
Other current assets | $ 182 | $ 117 |
Other assets, net | 1,316 | 878 |
Accrued liabilities | $ 116 | $ 81 |
Spin-Off of Quorum Health Cor60
Spin-Off of Quorum Health Corporation (Narrative) (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($) | Apr. 29, 2016item | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Noncash Dividend | $ | $ 713 | |
Quorum Health Corporation [Member] | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Spinoff [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of hospitals owned and leased by the Company | item | 38 |
Spin-Off of Quorum Health Cor61
Spin-Off of Quorum Health Corporation (Schedule of Operating Results included in Consolidated Statement of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Spin-Off of Quorum Health Corporation [Abstract] | ||
Loss from operations before income taxes | $ (7) | $ (12) |
Less: Income attributable to noncontrolling interests | (1) | |
Loss from operations before income taxes attributable to Community Health Systems, Inc. stockholders | $ (7) | $ (13) |
Income Taxes (Income Tax Contin
Income Taxes (Income Tax Contingency and Taxes Paid Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Contingency [Abstract] | ||||
Unrecognized benefit that would affect the effective tax rate | $ 9 | $ 9 | ||
Amount of interest and penalties included in liabilities for uncertain tax positions | $ 3 | $ 3 | ||
Effective Income Tax Rate, Continuing Operations | 11.50% | 8.90% | 4.90% | 7.60% |
Effective Income Tax Rate, Continuing Operations, Including Net Income from Noncontrolling Interests | 10.30% | 8.80% | 4.40% | 7.30% |
Current provision for income taxes | $ 16 | |||
Cash Paid for Income Taxes, Net of Refunds Received [Abstract] | ||||
Cash paid for income taxes (refunds received), net | $ 5 | $ 4 | 6 | $ 4 |
Certain Hospitals [Member] | ||||
Income Tax Contingency [Abstract] | ||||
Impairment of long-lived assets held for sale | $ 330 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets (Schedule of Goodwill) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance, beginning of year | $ 6,521 |
Goodwill acquired as part of acquisitions during current year | 3 |
Consideration and purchase price allocation adjustments for prior year's acquisitions and other adjustments | (2) |
Goodwill allocated to hospitals held for sale | (357) |
Balance, end of year | $ 6,165 |
Goodwill and Other Intangible64
Goodwill and Other Intangible Assets (Goodwill Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Sep. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | ||||
Goodwill | $ 6,165 | $ 6,521 | ||
Goodwill, Impairment Loss | $ 1,400 | $ 1,395 | ||
Hospital Operations [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 6,200 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets (Other Intangible Assets Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets acquired during the year | $ 0 | ||||
Finite-Lived Intangible Assets, Gross | $ 18,000,000 | 18,000,000 | $ 41,000,000 | ||
Finite-Lived Intangible Assets, Net | 12,000,000 | 12,000,000 | 14,000,000 | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 79,000,000 | 79,000,000 | 86,000,000 | ||
Capitalized Computer Software, Gross | 1,300,000,000 | 1,300,000,000 | 1,300,000,000 | ||
Capitalized Computer Software, Net | 514,000,000 | 514,000,000 | $ 574,000,000 | ||
Capitalized Computer Software, Development Stage Costs | 42,000,000 | 42,000,000 | |||
Impairment of Long-Lived Assets Held-for-use | $ 330,000,000 | $ 1,656,000,000 | |||
Finite-Lived Intangible Assets, Except Capitalized Internal-Use Software [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 6 years | ||||
Acquired Finite-lived Intangible Asset, Residual Value | 0 | $ 0 | |||
Amortization expense | 1,000,000 | $ 3,000,000 | 3,000,000 | 7,000,000 | |
Amortization expense for remainder 2017 | 2,000,000 | 2,000,000 | |||
Amortization expense for 2018 | 3,000,000 | 3,000,000 | |||
Amortization expense for 2019 | 1,000,000 | 1,000,000 | |||
Amortization expense for 2020 | 1,000,000 | 1,000,000 | |||
Amortization expense for 2021 | 1,000,000 | 1,000,000 | |||
Amortization expense for 2022 | 1,000,000 | 1,000,000 | |||
Amortization expense thereafter | 3,000,000 | 3,000,000 | |||
Capitalized Internal Use Software [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Asset, Residual Value | 0 | 0 | |||
Amortization expense | 47,000,000 | $ 50,000,000 | 95,000,000 | $ 105,000,000 | |
Amortization expense for remainder 2017 | 89,000,000 | 89,000,000 | |||
Amortization expense for 2018 | 143,000,000 | 143,000,000 | |||
Amortization expense for 2019 | 89,000,000 | 89,000,000 | |||
Amortization expense for 2020 | 65,000,000 | 65,000,000 | |||
Amortization expense for 2021 | 52,000,000 | 52,000,000 | |||
Amortization expense for 2022 | 38,000,000 | 38,000,000 | |||
Amortization expense thereafter | $ 38,000,000 | $ 38,000,000 | |||
Capitalized Internal Use Software, Except Significant System Conversions [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 3 years | ||||
Minimum [Member] | Capitalized Internal Use Software, Significant System Conversions [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 8 years | ||||
Maximum [Member] | Capitalized Internal Use Software, Significant System Conversions [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Weighted-Average Useful Life | 10 years |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Calculation of Numerator and Denominator in Earnings Per Share) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Loss from continuing operations, net of taxes | $ (116) | $ (1,405) | $ (292) | $ (1,368) |
Less: Income from continuing operations attributable to noncontrolling interests, net of taxes | 15 | 26 | 36 | 50 |
Loss from continuing operations attributable to Community Health Systems, Inc. common stockholders - basic and diluted | (131) | (1,431) | (328) | (1,418) |
Loss from discontinued operations, net of taxes | (6) | (1) | (7) | (3) |
Less: Loss from discontinued operations attributable to noncontrolling interests, net of taxes | ||||
Loss from discontinued operations attributable to Community Health Systems, Inc. common stockholders - basic and diluted | $ (6) | $ (1) | $ (7) | $ (3) |
Denominator: | ||||
Weighted-average number of shares outstanding - basic | 111,909,858 | 110,879,285 | 111,582,911 | 110,563,576 |
Effect of dilutive securities: | ||||
Weighted-average number of shares outstanding - diluted | 111,909,858 | 110,879,285 | 111,582,911 | 110,563,576 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Increase in number of shares to diluted shares calculation if income from continuing operations would have been generated | 215,313 | 168,764 | 147,043 | 115,135 |
Earnings Per Share (Schedule 68
Earnings Per Share (Schedule of Antidilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Employee stock options and restricted stock awards | 2,360,317 | 2,530,686 | 2,934,023 | 2,601,706 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Class of Stock [Line Items] | ||||
Total capital stock, shares authorized | 400,000,000 | 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 | |||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.25 | |||
Maximum amount of dividends or stock repurchases permissible under the Credit Facility | $ 200,000,000 | |||
Annual amount of dividends or stock repurchases permissible under the Credit Facility | 25,000,000 | |||
Noncash Dividend | $ 713,000,000 | |||
Amount available for dividend payments, stock repurchases or Senior Notes repurchases at period end | $ 318,000,000 | |||
Open Market Repurchase Program for Common Stock, Adopted November 6, 2015 [Member] | ||||
Class of Stock [Line Items] | ||||
Maximum number of shares authorized for repurchase | 10,000,000 | |||
Maximum value of shares authorized under repurchase program | $ 300,000,000 | |||
Number of shares repurchased and retired | 0 | 0 | 532,188 | |
Weighted-average price of repurchased and retired shares, per share | $ 27.31 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Stockholders' Equity) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Equity, beginning balance | $ 1,728 |
Redeemable Noncontrolling Interests, beginning balance | 554 |
Comprehensive income including portion attributable to nonredeemable noncontrolling interests | (319) |
Distributions to noncontrolling interests, net of contributions | (14) |
Disposition of less-than-wholly owned entity | (13) |
Other reclassifications of noncontrolling interests | 1 |
Noncontrolling interests in acquired entity | 1 |
Cancellation of restricted stock for tax withholdings on vested shares | (5) |
Stock-based compensation | 14 |
Equity, ending balance | 1,393 |
Redeemable Noncontrolling Interests, ending balance | 548 |
Redeemable Noncontrolling Interests [Member] | |
Redeemable Noncontrolling Interests, beginning balance | 554 |
Comprehensive income attributable to redeemable noncontrolling interest | 29 |
Contributions from noncontrolling interests | 5 |
Distributions to redeemable noncontrolling interests, net of contributions | (39) |
Purchase of subsidiary shares from noncontrolling interests | (4) |
Disposition of less-than-wholly owned entity | 4 |
Other reclassifications of redeemable noncontrolling interests | (1) |
Equity, ending balance | 548 |
Redeemable Noncontrolling Interests, ending balance | |
Common Stock [Member] | |
Equity, beginning balance | 1 |
Equity, ending balance | 1 |
Additional Paid-in Capital [Member] | |
Equity, beginning balance | 1,975 |
Cancellation of restricted stock for tax withholdings on vested shares | (5) |
Stock-based compensation | 14 |
Equity, ending balance | 1,984 |
Accumulated Other Comprehensive Income (Loss) [Member] | |
Equity, beginning balance | (62) |
Comprehensive income including portion attributable to nonredeemable noncontrolling interests | 9 |
Equity, ending balance | (53) |
Retained Earnings (Accumulated Deficit) [Member] | |
Equity, beginning balance | (299) |
Comprehensive income including portion attributable to nonredeemable noncontrolling interests | (335) |
Equity, ending balance | (634) |
Noncontrolling Interests [Member] | |
Equity, beginning balance | 113 |
Comprehensive income including portion attributable to nonredeemable noncontrolling interests | 7 |
Distributions to noncontrolling interests, net of contributions | (14) |
Disposition of less-than-wholly owned entity | (13) |
Other reclassifications of noncontrolling interests | 1 |
Noncontrolling interests in acquired entity | 1 |
Equity, ending balance | $ 95 |
Stockholders' Equity (Schedul71
Stockholders' Equity (Schedule of Impact of Noncontrolling Interest to Stockholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stockholders' Equity [Abstract] | ||||
Net loss attributable to Community Health Systems, Inc. stockholders | $ (137) | $ (1,432) | $ (335) | $ (1,421) |
Net decrease in Community Health Systems, Inc. paid-in capital for purchase of subsidiary partnership interests | ||||
Net transfers from the noncontrolling interests | ||||
Change to Community Health Systems, Inc. stockholders' equity from net loss attributable to Community Health Systems, Inc. stockholders and transfers to noncontrolling interests | $ (335) |
Equity Investments (Narrative)
Equity Investments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investments | $ 177 | $ 170 | $ 170 | $ 177 | ||
Equity in earnings of unconsolidated affiliates | $ 5 | $ 14 | $ 9 | $ 34 | ||
Proceeds from sale of equity method investments | 403 | |||||
Gain on sale of equity method investments | $ 94 | $ 94 | ||||
Three Hospitals in Macon Georgia, [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 38.00% | 38.00% | ||||
HealthTrust [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 23.10% | 23.10% | ||||
Home Care [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of Ownership Interest Sold | 80.00% | 80.00% | ||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | ||||
Equity Method Investments | $ 32 | $ 32 | ||||
Disposal Date | Dec. 31, 2016 |
Long-Term Debt (Schedule of Deb
Long-Term Debt (Schedule of Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt | $ 14,748 | $ 15,244 |
Less: Current maturities | (46) | (455) |
Long-term debt | 14,702 | 14,789 |
Secured Debt [Member] | Credit Facility, Term Loan A [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 749 | |
Secured Debt [Member] | Credit Facility, Term Loan F [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,445 | |
Secured Debt [Member] | Credit Facility, Term Loan G [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,331 | 1,528 |
Secured Debt [Member] | Credit Facility, Term Loan H [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 2,440 | 2,811 |
Senior Notes [Member] | Senior Notes at 8.0, Due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,925 | 1,925 |
Senior Notes [Member] | Senior Notes at 7.125, Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,200 | 1,200 |
Senior Notes [Member] | Senior Notes at 6.875, Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 3,000 | 3,000 |
Senior Notes [Member] | Senior Secured Notes at 6.25, Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 3,100 | |
Senior Secured Notes [Member] | Senior Secured Notes At 5.125 Due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 700 | |
Senior Secured Notes [Member] | Senior Secured Notes at 5.125, Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 1,000 | 1,000 |
Receivables Facility [Member] | Receivables Facility, Name [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 600 | 677 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Debt | 285 | 328 |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Less: Unamortized deferred debt issuance costs and note premium | (195) | (193) |
Debt | $ 62 | $ 74 |
Long-Term Debt (Credit Facility
Long-Term Debt (Credit Facility as Amended, Amendments and Modifications Narrative) (Details) - USD ($) | Jun. 30, 2017 | May 12, 2017 | May 04, 2017 | Mar. 16, 2017 | Dec. 30, 2016 | Apr. 29, 2016 | May 18, 2015 | Aug. 17, 2012 | Jun. 30, 2017 | Jun. 30, 2016 | May 30, 2017 | Mar. 09, 2015 | Jan. 27, 2014 | Jan. 26, 2014 |
Debt Instrument [Line Items] | ||||||||||||||
Issuance of long-term debt | $ 3,100,000,000 | |||||||||||||
Proceeds from QHC spinoff | $ 1,200,000,000 | $ 1,219,000,000 | ||||||||||||
Credit Facility, Revolving Credit Loans [Member] | Line of Credit [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 929,000,000 | |||||||||||||
Credit Facility, Term Loan A [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Extinguishment of Debt, Amount | $ 39,000,000 | |||||||||||||
Credit Facility, Term Loan A [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Extinguishment of Debt, Amount | $ 713,000,000 | $ 26,000,000 | ||||||||||||
Credit Facility, Term Loan B, Initial Funding [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance of Remaining Non-extended Term Loans | $ 60,000,000 | |||||||||||||
Extinguishment of Debt, Amount | $ 1,600,000,000 | |||||||||||||
Credit Facility, Term Loan F [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 1,700,000,000 | |||||||||||||
Extinguishment of Debt, Amount | $ 1,445,000,000 | 48,000,000 | $ 190,000,000 | |||||||||||
Credit Facility, Term Loan G [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Extinguishment of Debt, Amount | $ 122,000,000 | 75,000,000 | ||||||||||||
Credit Facility, Term Loan G [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | 1,600,000,000 | |||||||||||||
Extinguishment of Debt, Amount | 52,000,000 | |||||||||||||
Credit Facility, Term Loan H [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Extinguishment of Debt, Amount | $ 225,000,000 | $ 147,000,000 | ||||||||||||
Credit Facility, Term Loan H [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 2,900,000,000 | |||||||||||||
Extinguishment of Debt, Amount | $ 96,000,000 | |||||||||||||
Credit Facility, Term Loan A, March 6, 2012 Amendment [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Balance of Remaining Non-extended Term Loans | $ 637,000,000 | |||||||||||||
Credit Facility, Revolving Credit Loans, Third Amendment and Restatement [Member] | Line of Credit [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000,000 | |||||||||||||
Credit Facility, Revolving Credit Loans, January 27, 2021 [Member] | Line of Credit [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 739,000,000 | |||||||||||||
Credit Facility, Term Loan A, Third Amendment and Restatement [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | 1,000,000,000 | |||||||||||||
Credit Facility, Term Loan D, Third Amendment and Restatement [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | 4,600,000,000 | |||||||||||||
Credit Facility, Term Loan E, Third Amendment and Restatement [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt Instrument, Face Amount | $ 1,700,000,000 | |||||||||||||
Senior Secured Notes at 6.25, Due 2023 [Member] | Secured Debt [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Issuance of long-term debt | 900,000,000 | |||||||||||||
Debt Instrument, Face Amount | 3,100,000,000 | |||||||||||||
Senior Secured Notes at 6.25, Due 2023 [Member] | Senior Secured Notes [Member] | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Issuance of long-term debt | 900,000,000 | |||||||||||||
Debt Instrument, Face Amount | $ 3,100,000,000 | $ 2,200,000,000 |
Long-Term Debt (Credit Facili75
Long-Term Debt (Credit Facility Terms Narrative) (Details) | Oct. 01, 2020 | Jan. 01, 2020 | Jan. 01, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | ||||
Ratio of secured debt to EBITDA | 3.82 | |||
Interest coverage ratio | 2.36 | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest coverage ratio | 1.75 | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Ratio of secured debt to EBITDA | 4.50 | |||
Credit Facility, Revolving Credit Loans [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||
Credit Facility, Term Loans [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Equivalent Percentage of Term Loan Facility Related to Net Cash Proceeds of Certain Asset Sales and Dispositions by Company and Its Subsidiaries | 100.00% | |||
Equivalent Percentage of Term Loan Facility Related to Net Cash Proceeds of Issuance of Certain Debt Obligations or Receivables Based Financing by Company and Its Subsidiaries | 100.00% | |||
Equivalent Percentage of Term Loan Facility Subject to Reduction to Lower Percentage Based on Company Leverage Ratio | 50.00% | |||
Credit Facility, Term Loan F, Term Loan G or Term Loan H [Member | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Paydown Percentage of Original Principal | 1.00% | |||
Alternate Base Rate [Member] | Credit Facility, Term Loan A [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Alternate Base Rate [Member] | Credit Facility, Term Loan G [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Alternate Base Rate [Member] | Credit Facility, Term Loan H [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||
Alternate Base Rate [Member] | Credit Facility, Term Loan G and Term Loan H [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Floor Interest Rate | 2.00% | |||
Federal Funds Effective Rate [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
LIBOR [Member] | Credit Facility, Revolving Credit Loans [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
LIBOR [Member] | Credit Facility, Revolving Credit Loans [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||
LIBOR [Member] | Credit Facility, Term Loan G [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | |||
LIBOR [Member] | Credit Facility, Term Loan H [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||
LIBOR [Member] | Credit Facility, Term Loan G and Term Loan H [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Floor Interest Rate | 1.00% | |||
Scenario, Forecast [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest coverage ratio | 2 | |||
Scenario, Forecast [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Ratio of secured debt to EBITDA | 4 | 4.25 |
Long-Term Debt (Credit Facili76
Long-Term Debt (Credit Facility End of Period Disclosures Narrative) (Details) | 6 Months Ended |
Jun. 30, 2017USD ($)item | |
Credit Facility, Name [Member] | Credit Facility, Type of Debt [Member] | |
Debt Instrument [Line Items] | |
Minimum Number of Additional Tranches Available in Future | item | 1 |
Aggregate Principal Amount of Each Tranche Available in Future | $ 1,500,000,000 |
Debt, Weighted Average Interest Rate | 6.30% |
Credit Facility, Name [Member] | Credit Facility, Type of Debt, Amendment No. 2 [Member] | |
Debt Instrument [Line Items] | |
Aggregate Principal Amount of Each Tranche Available in Future | $ 750,000,000 |
Credit Facility, Revolving Credit Loans [Member] | Line of Credit [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Remaining Borrowing Capacity | 929,000,000 |
Letters of Credit Outstanding, Amount | 71,000,000 |
Credit Facility, Revolving Credit Loans, January 27, 2021 [Member] | Line of Credit [Member] | |
Debt Instrument [Line Items] | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 739,000,000 |
Long-Term Debt (Schedule of Ear
Long-Term Debt (Schedule of Early Redemption Prices on 8.0% Senior Notes) (Details) - Senior Notes at 8.0, Due 2019 [Member] - Senior Notes [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 102.00% |
Debt Instrument, Redemption Period, Start Date | Nov. 15, 2016 |
Debt Instrument, Redemption Period, End Date | Nov. 14, 2017 |
Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 100.00% |
Debt Instrument, Redemption Period, Start Date | Nov. 15, 2017 |
Debt Instrument, Redemption Period, End Date | Nov. 14, 2019 |
Long-Term Debt (Schedule of E78
Long-Term Debt (Schedule of Early Redemption Prices on 7.125% Senior Notes) (Details) - Senior Notes at 7.125, Due 2020 [Member] - Senior Notes [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 101.781% |
Debt Instrument, Redemption Period, Start Date | Jul. 15, 2017 |
Debt Instrument, Redemption Period, End Date | Jul. 14, 2018 |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 100.00% |
Debt Instrument, Redemption Period, Start Date | Jul. 15, 2018 |
Debt Instrument, Redemption Period, End Date | Jul. 14, 2020 |
Long-Term Debt (Schedule of E79
Long-Term Debt (Schedule of Early Redemption Prices on 5.125% Senior Secured Notes due 2018) (Details) - Senior Secured Notes At 5.125 Due 2018 [Member] - Senior Secured Notes [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 101.281% |
Debt Instrument, Redemption Period, Start Date | Aug. 15, 2016 |
Debt Instrument, Redemption Period, End Date | Aug. 14, 2017 |
Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 100.00% |
Debt Instrument, Redemption Period, Start Date | Aug. 15, 2017 |
Debt Instrument, Redemption Period, End Date | Aug. 14, 2018 |
Long-Term Debt (Schedule of E80
Long-Term Debt (Schedule of Early Redemption Prices on 5.125% Senior Secured Notes due 2021) (Details) - Senior Secured Notes at 5.125, Due 2021 [Member] - Senior Secured Notes [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 103.844% |
Debt Instrument, Redemption Period, Start Date | Feb. 1, 2017 |
Debt Instrument, Redemption Period, End Date | Jan. 31, 2018 |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 102.563% |
Debt Instrument, Redemption Period, Start Date | Feb. 1, 2018 |
Debt Instrument, Redemption Period, End Date | Jan. 31, 2019 |
Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 101.281% |
Debt Instrument, Redemption Period, Start Date | Feb. 1, 2019 |
Debt Instrument, Redemption Period, End Date | Jan. 31, 2020 |
Debt Instrument, Redemption, Period Six [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 100.00% |
Debt Instrument, Redemption Period, Start Date | Feb. 1, 2020 |
Debt Instrument, Redemption Period, End Date | Jan. 31, 2021 |
Long-Term Debt (Schedule of E81
Long-Term Debt (Schedule of Early Redemption Prices on 6.785% Senior Notes) (Details) - Senior Notes at 6.875, Due 2022 [Member] - Senior Notes [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 103.438% |
Debt Instrument, Redemption Period, Start Date | Feb. 1, 2018 |
Debt Instrument, Redemption Period, End Date | Jan. 31, 2019 |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 101.719% |
Debt Instrument, Redemption Period, Start Date | Feb. 1, 2019 |
Debt Instrument, Redemption Period, End Date | Jan. 31, 2020 |
Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 100.00% |
Debt Instrument, Redemption Period, Start Date | Feb. 1, 2020 |
Debt Instrument, Redemption Period, End Date | Jan. 31, 2022 |
Long-Term Debt (Schedule of E82
Long-Term Debt (Schedule of Early Redemption Prices on 6.25% Senior Secured Notes) (Details) - Senior Secured Notes at 6.25, Due 2023 [Member] - Senior Secured Notes [Member] | 6 Months Ended |
Jun. 30, 2017 | |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 103.125% |
Debt Instrument, Redemption Period, Start Date | Mar. 31, 2020 |
Debt Instrument, Redemption Period, End Date | Mar. 30, 2021 |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 101.563% |
Debt Instrument, Redemption Period, Start Date | Mar. 31, 2021 |
Debt Instrument, Redemption Period, End Date | Mar. 30, 2022 |
Debt Instrument, Redemption, Period Five [Member] | |
Debt Instrument, Redemption [Line Items] | |
Debt Instrument Redemption Price Percentage | 100.00% |
Debt Instrument, Redemption Period, Start Date | Mar. 31, 2022 |
Debt Instrument, Redemption Period, End Date | Mar. 30, 2023 |
Long-Term Debt (8.0% Senior Not
Long-Term Debt (8.0% Senior Notes, Due 2019 Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jul. 18, 2012 | Mar. 21, 2012 | Nov. 22, 2011 | Jun. 30, 2017 | Dec. 31, 2011 | Dec. 31, 2016 | |
Senior Notes at 8.875, Due 2015 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Extinguishment of Debt, Amount | $ 934,000,000 | $ 850,000,000 | $ 1,000,000,000 | |||
Senior Notes at 8.0, Due 2019 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Offering Date | Nov. 22, 2011 | |||||
Debt Instrument, Maturity Date | Nov. 15, 2019 | |||||
Debt Instrument, Face Amount | $ 1,000,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||
Debt Instrument, Repurchase Amount | $ 75,000,000 | |||||
Senior Notes at 8.0, Due 2019, March 21, 2012 Secondary Offering [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||||
Senior Notes at 8.0, Due 2019, March 21, 2012 Secondary Offering [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Offering Date | Mar. 21, 2012 | |||||
Debt Instrument, Face Amount | $ 1,000,000,000 | |||||
Debt Instrument, Premium Percentage | 102.50% | |||||
Debt Instrument, Redemption, Period Two [Member] | Senior Notes at 8.0, Due 2019 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Minimum Period Notice for Redemption of Debt | 30 days | |||||
Maximum Period Notice for Redemption of Debt | 60 days |
Long-Term Debt (7.125% Senior N
Long-Term Debt (7.125% Senior Notes, Due 2020 Narrative) (Details) - Senior Notes [Member] - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jul. 18, 2012 | Mar. 21, 2012 | Jun. 30, 2017 | Dec. 31, 2011 | |
Senior Notes at 8.875, Due 2015 [Member] | ||||
Debt Instrument [Line Items] | ||||
Extinguishment of Debt, Amount | $ 934 | $ 850 | $ 1,000 | |
Senior Notes at 7.125, Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Offering Date | Jul. 18, 2012 | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | |||
Debt Instrument, Redemption, Period Two [Member] | Senior Notes at 7.125, Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Minimum Period Notice for Redemption of Debt | 30 days | |||
Maximum Period Notice for Redemption of Debt | 60 days |
Long-Term Debt (5.125% Senior N
Long-Term Debt (5.125% Senior Notes, Due 2018 Narrative) (Details) - USD ($) $ in Millions | Mar. 16, 2017 | Aug. 17, 2012 | Jun. 30, 2017 | Dec. 31, 2016 | May 16, 2016 |
Debt Instrument [Line Items] | |||||
Debt | $ 14,748 | $ 15,244 | |||
Senior Secured Notes [Member] | Senior Secured Notes At 5.125 Due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Offering Date | Aug. 17, 2012 | ||||
Extinguishment of Debt, Amount | $ 231 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | ||||
Debt tender offer | $ 469 | $ 900 | |||
Debt | $ 700 | ||||
Secured Debt [Member] | Credit Facility, Term Loan B, Initial Funding [Member] | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of Debt, Amount | $ 1,600 | ||||
Debt Instrument, Redemption, Period Two [Member] | Senior Secured Notes [Member] | Senior Secured Notes At 5.125 Due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Minimum Period Notice for Redemption of Debt | 30 days | ||||
Maximum Period Notice for Redemption of Debt | 60 days | ||||
Maximum [Member] | Senior Secured Notes [Member] | Senior Secured Notes At 5.125 Due 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of Debt, Amount | $ 700 |
Long-Term Debt (5.125% Senior86
Long-Term Debt (5.125% Senior Notes, Due 2021 Narrative) (Details) - Senior Secured Notes [Member] - Senior Secured Notes at 5.125, Due 2021 [Member] - USD ($) | 1 Months Ended | 6 Months Ended |
Jan. 27, 2014 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Offering Date | Jan. 27, 2014 | |
Debt Instrument, Face Amount | $ 1,000,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | |
Debt Instrument, Redemption, Period Two [Member] | ||
Debt Instrument [Line Items] | ||
Minimum Period Notice for Redemption of Debt | 30 days | |
Maximum Period Notice for Redemption of Debt | 60 days |
Long-Term Debt (6.875% Senior N
Long-Term Debt (6.875% Senior Notes, Due 2022 Narrative) (Details) - Senior Notes [Member] - Senior Notes at 6.875, Due 2022 [Member] - USD ($) | 1 Months Ended | 6 Months Ended |
Jan. 27, 2014 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Offering Date | Jan. 27, 2014 | |
Debt Instrument, Face Amount | $ 3,000,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | |
Debt Instrument, Redemption, Period Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Redemption Price Percentage | 100.00% | |
Debt Instrument, Redemption Period, End Date | Feb. 1, 2018 | |
Debt Instrument, Redemption, Description | plus a "make-whole" premium, as described in the indenture governing the 6⅞% Senior Notes. | |
Minimum Period Notice for Redemption of Debt | 30 days | |
Maximum Period Notice for Redemption of Debt | 60 days |
Long-Term Debt (6.25% Senior Se
Long-Term Debt (6.25% Senior Secured Notes, Due 2023 Narrative) (Details) - USD ($) | May 12, 2017 | May 04, 2017 | Mar. 16, 2017 | Dec. 30, 2016 | Apr. 29, 2016 | Aug. 17, 2012 | Jun. 30, 2017 | Mar. 09, 2015 |
Debt Instrument [Line Items] | ||||||||
Issuance of long-term debt | $ 3,100,000,000 | |||||||
Credit Facility, Term Loan A [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of Debt, Amount | $ 39,000,000 | |||||||
Senior Secured Notes [Member] | Senior Secured Notes at 6.25, Due 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 3,100,000,000 | $ 2,200,000,000 | ||||||
Issuance of long-term debt | 900,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | |||||||
Senior Secured Notes [Member] | Senior Secured Notes At 5.125 Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Offering Date | Aug. 17, 2012 | |||||||
Extinguishment of Debt, Amount | $ 231,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | |||||||
Secured Debt [Member] | Senior Secured Notes at 6.25, Due 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | 3,100,000,000 | |||||||
Issuance of long-term debt | 900,000,000 | |||||||
Secured Debt [Member] | Credit Facility, Term Loan F [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 1,700,000,000 | |||||||
Extinguishment of Debt, Amount | $ 1,445,000,000 | $ 48,000,000 | $ 190,000,000 | |||||
Secured Debt [Member] | Credit Facility, Term Loan A [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of Debt, Amount | $ 713,000,000 | $ 26,000,000 | ||||||
Debt Instrument, Redemption, Period One [Member] | Senior Secured Notes [Member] | Senior Secured Notes at 6.25, Due 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument Redemption Price Percentage | 100.00% | |||||||
Debt Instrument, Redemption, Description | plus a "make-whole" premium, as described in the indenture governing the 6¼% Senior Secured Notes. | |||||||
Minimum Period Notice for Redemption of Debt | 30 days | |||||||
Maximum Period Notice for Redemption of Debt | 60 days | |||||||
Debt Instrument, Redemption, Period Two [Member] | Senior Secured Notes [Member] | Senior Secured Notes at 6.25, Due 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Max Principal Redeemable Using Proceeds from a Public Equity Offering, as a Percentage of Principal Amount | 40.00% | |||||||
Debt Instrument Redemption Price Percentage | 106.25% | |||||||
Debt Instrument, Redemption, Period Two [Member] | Senior Secured Notes [Member] | Senior Secured Notes At 5.125 Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Minimum Period Notice for Redemption of Debt | 30 days | |||||||
Maximum Period Notice for Redemption of Debt | 60 days | |||||||
Maximum [Member] | Senior Secured Notes [Member] | Senior Secured Notes At 5.125 Due 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of Debt, Amount | $ 700,000,000 |
Long-Term Debt (Receivables Fac
Long-Term Debt (Receivables Facility Narrative) (Details) - USD ($) | Jun. 23, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Nov. 18, 2016 | Mar. 31, 2014 | Mar. 07, 2013 | Mar. 21, 2012 |
Debt Instrument [Line Items] | |||||||
Debt | $ 14,748,000,000 | $ 15,244,000,000 | |||||
Debt, noncurrent | $ 14,702,000,000 | 14,789,000,000 | |||||
Receivables Facility, Name [Member] | Receivables Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Issuance Date | Mar. 21, 2012 | ||||||
Maximum Borrowing Capacity of Receivables Facility | $ 300,000,000 | ||||||
Debt | $ 600,000,000 | $ 677,000,000 | |||||
Receivables Facility, March 7, 2013 Amendment [Member] | Receivables Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Issuance Date | Mar. 7, 2013 | ||||||
Maximum Borrowing Capacity of Receivables Facility | $ 500,000,000 | ||||||
Receivables Facility, March 31, 2014 Amendment [Member] | Receivables Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Borrowing Capacity of Receivables Facility | $ 700,000,000 | ||||||
Receivables Facility, November 18, 2016 Amendment [Member] | Receivables Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Issuance Date | Nov. 18, 2016 | ||||||
Maximum Borrowing Capacity of Receivables Facility | $ 450,000,000 | ||||||
Receivables Facility, June 23, 2017 Amendment [Member] | Receivables Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date | Nov. 13, 2018 | ||||||
Maximum Borrowing Capacity of Receivables Facility | $ 600,000,000 | $ 600,000,000 | |||||
Maximum Borrowing Capacity of Receivables Facility, Long-term | 600,000,000 | ||||||
Receivables included in the Receivables Facility | $ 1,700,000,000 | ||||||
Receivables Facility, Expiring November 13, 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Borrowing Capacity of Receivables Facility | 250,000,000 | ||||||
Receivables Facility, Expiring November 13, 2017 [Member] | Receivables Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Extinguishment of Debt | 100,000,000 | ||||||
Receivables Facility, Expiring November 13, 2018 [Member] | Receivables Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum Borrowing Capacity of Receivables Facility | $ 150,000,000 |
Long-Term Debt (Loss from Early
Long-Term Debt (Loss from Early Extinguishment of Debt Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Extinguishment of Debt Disclosures [Abstract] | ||||
Loss from early extinguishment of debt | $ 10 | $ 30 | $ 31 | $ 30 |
Loss on Extinguishment of Debt, Net of Tax | $ 7 | $ 20 | $ 20 | $ 20 |
Long-Term Debt (Other Debt and
Long-Term Debt (Other Debt and Interest Payments Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)item | Jun. 30, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Interest Paid on borrowing | $ 130,000,000 | $ 182,000,000 | $ 409,000,000 | $ 489,000,000 |
Interest Rate Swap [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative Liability, Number of Instruments Held | item | 8 | 8 | ||
Interest Rate Swap, Currently Effective [Member] | ||||
Debt Instrument [Line Items] | ||||
Notional Amount, Liability | $ 2,200,000,000 | $ 2,200,000,000 | ||
Credit Facility, Revolving Credit Loans [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Basis Spread on Variable Rate | 2.50% | 2.50% | ||
Secured Debt [Member] | Credit Facility, Term Loan G [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Basis Spread on Variable Rate | 2.75% | 2.75% | ||
Secured Debt [Member] | Credit Facility, Term Loan G [Member] | Alternate Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Basis Spread on Variable Rate | 1.75% | 1.75% | ||
Secured Debt [Member] | Credit Facility, Term Loan H [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Basis Spread on Variable Rate | 3.00% | 3.00% | ||
Secured Debt [Member] | Credit Facility, Term Loan H [Member] | Alternate Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Basis Spread on Variable Rate | 2.00% | 2.00% | ||
Secured Debt [Member] | Credit Facility, Term Loan G and Term Loan H [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Floor Interest Rate | 1.00% | 1.00% | ||
Secured Debt [Member] | Credit Facility, Term Loan G and Term Loan H [Member] | Alternate Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Floor Interest Rate | 2.00% | 2.00% |
Fair Value of Financial Instr92
Fair Value of Financial Instruments (Schedule of Estimated Fair Value of Financial Instruments, by Balance Sheet Grouping) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Available-for-sale securities | $ 309 | $ 299 |
Trading securities | 53 | 80 |
Liabilities: | ||
Contingent Value Right, Fair Value Disclosure | 5 | 1 |
Carrying Amount Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 768 | 238 |
Available-for-sale securities | 309 | 299 |
Trading securities | 53 | 80 |
Liabilities: | ||
Contingent Value Right, Fair Value Disclosure | 5 | 1 |
Carrying Amount Measurement [Member] | Credit Facility, Type of Debt [Member] | Credit Facility, Name [Member] | ||
Liabilities: | ||
Credit Facility, Fair Value Disclosure | 3,718 | 6,456 |
Carrying Amount Measurement [Member] | Senior Notes [Member] | Senior Notes at 8.0, Due 2019 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 1,921 | 1,920 |
Carrying Amount Measurement [Member] | Senior Notes [Member] | Senior Notes at 7.125, Due 2020 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 1,190 | 1,189 |
Carrying Amount Measurement [Member] | Senior Notes [Member] | Senior Notes at 6.875, Due 2022 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 2,937 | 2,932 |
Carrying Amount Measurement [Member] | Senior Secured Notes [Member] | Senior Secured Notes At 5.125 Due 2018 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 698 | |
Carrying Amount Measurement [Member] | Senior Secured Notes [Member] | Senior Secured Notes at 5.125, Due 2021 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 975 | 972 |
Carrying Amount Measurement [Member] | Senior Secured Notes [Member] | Senior Secured Notes at 6.25, Due 2023 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 3,061 | |
Carrying Amount Measurement [Member] | Receivables Facility and Other Debt, Type [Member] | Receivables Facility and Unsecured Debt [Member] | ||
Liabilities: | ||
Other Liabilities, Fair Value Disclosure | 661 | 749 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 768 | 238 |
Available-for-sale securities | 309 | 299 |
Trading securities | 53 | 80 |
Liabilities: | ||
Contingent Value Right, Fair Value Disclosure | 5 | 1 |
Estimate of Fair Value Measurement [Member] | Credit Facility, Type of Debt [Member] | Credit Facility, Name [Member] | ||
Liabilities: | ||
Credit Facility, Fair Value Disclosure | 3,769 | 6,370 |
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | Senior Notes at 8.0, Due 2019 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 1,942 | 1,615 |
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | Senior Notes at 7.125, Due 2020 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 1,173 | 917 |
Estimate of Fair Value Measurement [Member] | Senior Notes [Member] | Senior Notes at 6.875, Due 2022 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 2,622 | 2,102 |
Estimate of Fair Value Measurement [Member] | Senior Secured Notes [Member] | Senior Secured Notes At 5.125 Due 2018 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 690 | |
Estimate of Fair Value Measurement [Member] | Senior Secured Notes [Member] | Senior Secured Notes at 5.125, Due 2021 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 1,015 | 930 |
Estimate of Fair Value Measurement [Member] | Senior Secured Notes [Member] | Senior Secured Notes at 6.25, Due 2023 [Member] | ||
Liabilities: | ||
Notes Payable, Fair Value Disclosure | 3,216 | |
Estimate of Fair Value Measurement [Member] | Receivables Facility and Other Debt, Type [Member] | Receivables Facility and Unsecured Debt [Member] | ||
Liabilities: | ||
Other Liabilities, Fair Value Disclosure | $ 661 | $ 749 |
Fair Value of Financial Instr93
Fair Value of Financial Instruments (Schedule of Interest Rate Swaps) (Details) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Interest Rate Swaps One [Member] | |
Derivative [Line Items] | |
Notional Amount, Liability | $ 400,000,000 |
Fixed Interest Rate | 1.882% |
Termination Date | Aug. 30, 2019 |
Fair Value of Liability | $ 2,000,000 |
Interest Rate Swaps Two [Member] | |
Derivative [Line Items] | |
Notional Amount, Liability | $ 200,000,000 |
Fixed Interest Rate | 2.515% |
Termination Date | Aug. 30, 2019 |
Fair Value of Liability | $ 4,000,000 |
Interest Rate Swaps Three [Member] | |
Derivative [Line Items] | |
Notional Amount, Liability | $ 200,000,000 |
Fixed Interest Rate | 2.613% |
Termination Date | Aug. 30, 2019 |
Fair Value of Liability | $ 4,000,000 |
Interest Rate Swaps Four [Member] | |
Derivative [Line Items] | |
Notional Amount, Liability | $ 300,000,000 |
Fixed Interest Rate | 2.041% |
Termination Date | Aug. 30, 2020 |
Fair Value of Liability | $ 2,000,000 |
Interest Rate Swaps Five [Member] | |
Derivative [Line Items] | |
Notional Amount, Liability | $ 300,000,000 |
Fixed Interest Rate | 2.738% |
Termination Date | Aug. 30, 2020 |
Fair Value of Liability | $ 9,000,000 |
Interest Rate Swaps Six [Member] | |
Derivative [Line Items] | |
Notional Amount, Liability | $ 300,000,000 |
Fixed Interest Rate | 2.892% |
Termination Date | Aug. 30, 2020 |
Fair Value of Liability | $ 10,000,000 |
Interest Rate Swaps Seven [Member] | |
Derivative [Line Items] | |
Notional Amount, Liability | $ 300,000,000 |
Fixed Interest Rate | 2.363% |
Termination Date | Jan. 27, 2021 |
Fair Value of Liability | $ 5,000,000 |
Interest Rate Swaps Eight [Member] | |
Derivative [Line Items] | |
Notional Amount, Liability | $ 200,000,000 |
Fixed Interest Rate | 2.368% |
Termination Date | Jan. 27, 2021 |
Fair Value of Liability | $ 4,000,000 |
Fair Value of Financial Instr94
Fair Value of Financial Instruments (Narrative) (Details) $ in Millions | Jun. 30, 2017USD ($) |
Fair Value of Financial Instruments [Abstract] | |
Interest expense arising from spread in fixed and floating rates of interest rate swap agreements that will be recognized in next 12 months | $ 28 |
Fair Value of Financial Instr95
Fair Value of Financial Instruments (Schedule of Pre-tax Loss Recognized as a Component of Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Pre-Tax Loss Recognized in OCI (Effective Portion) | $ (8) | $ (18) | $ (8) | $ (62) |
Fair Value of Financial Instr96
Fair Value of Financial Instruments (Schedule of Effective Portion of the Pre-tax Loss Reclassified from AOCL into Interest Expense on the Consolidated Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Pre-Tax Loss Reclassified from AOCL into Income (Effective Portion) | $ 8 | $ 16 | $ 17 | $ 30 |
Fair Value of Financial Instr97
Fair Value of Financial Instruments (Schedule of the Fair Value of Derivative Instruments in the Consolidated Balance Sheet) (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset derivatives designated as hedging instruments | ||
Other Long-term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability derivatives designated as hedging instruments | $ 40 | $ 49 |
Fair Value (Schedule of Fair Va
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 309 | $ 299 |
Trading securities | 53 | 80 |
Total assets | 362 | 379 |
Contingent Value Right (CVR) | 5 | 1 |
CVR-related liability | 260 | 252 |
Fair value of interest rate swap agreements | 40 | 49 |
Total liabilities | 305 | 302 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 171 | 163 |
Trading securities | 53 | 80 |
Total assets | 224 | 243 |
Contingent Value Right (CVR) | 5 | 1 |
Total liabilities | 5 | 1 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 138 | 136 |
Total assets | 138 | 136 |
Fair value of interest rate swap agreements | 40 | 49 |
Total liabilities | 40 | 49 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
CVR-related liability | 260 | 252 |
Total liabilities | $ 260 | $ 252 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 |
Fair Value Disclosures [Line Items] | |||
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 | |
Interest Rate Swap [Member] | |||
Fair Value Disclosures [Line Items] | |||
Credit risk valuation adjustment, decrease in fair value of liability | 2 | $ 3 | |
Credit risk valuation adjustment, decrease in fair value of liability, net of tax | $ 1 | $ 2 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - Supplemental Employee Retirement Plans, Defined Benefit [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Net Periodic Benefit Cost | $ 3 | $ 3 | $ 7 | $ 6 | |
Accrued benefits liabilities | $ 126 | $ 126 | $ 122 | ||
Defined benefit plans and other post-retirement plans, weighted-average assumptions to determine net periodic cost, discount rate | 3.55% | 3.55% | |||
Defined benefit plans and other post-retirement plans, weighted-average assumptions to determine net periodic cost, rate of compensation increase | 2.00% | 2.00% | |||
Defined Benefit Plan, Noncash Settlement Loss | $ 6 | ||||
Available-for-sale Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Assets in a rabbi trust generally designated to pay benefits of the SERP | $ 137 | $ 137 | $ 131 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segment | Dec. 31, 2016 | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | |||
Number of Operating Segments | 1 | ||
Home Care [Member] | |||
Segment Reporting Information [Line Items] | |||
Percentage of ownership interest sold | 80.00% | 80.00% |
Segment Information (Schedule o
Segment Information (Schedule of Segment Reporting Information by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Net operating revenues | $ 4,144 | $ 4,590 | $ 8,629 | $ 9,589 |
Income from continuing operations before income taxes | $ (131) | (1,543) | $ (307) | (1,480) |
Hospital Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net operating revenues | 4,530 | 9,475 | ||
Income from continuing operations before income taxes | (1,452) | (1,309) | ||
Corporate and All Other Reporting Units [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net operating revenues | 60 | 114 | ||
Income from continuing operations before income taxes | $ (91) | $ (171) |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive (Loss) Income, Beginning Balance | $ (54) | $ (89) | $ (62) | $ (73) |
Other comprehensive income (loss) before reclassifications | (5) | (15) | (3) | (41) |
Amounts reclassified from accumulated other comprehensive income (loss) | 6 | 12 | 12 | 22 |
Other comprehensive income (loss) | 1 | (3) | 9 | (19) |
AOCI distributed to QHC in spin-off | 2 | 2 | ||
Accumulated Other Comprehensive (Loss) Income, Ending Balance | (53) | (90) | (53) | (90) |
Change in Fair Value of Interest Rate Swaps [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive (Loss) Income, Beginning Balance | (26) | (67) | (31) | (48) |
Other comprehensive income (loss) before reclassifications | (7) | (12) | (8) | (40) |
Amounts reclassified from accumulated other comprehensive income (loss) | 5 | 10 | 11 | 19 |
Other comprehensive income (loss) | (2) | (2) | 3 | (21) |
Accumulated Other Comprehensive (Loss) Income, Ending Balance | (28) | (69) | (28) | (69) |
Change in Fair Value of Available for Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive (Loss) Income, Beginning Balance | (7) | 3 | (10) | 1 |
Other comprehensive income (loss) before reclassifications | 2 | (3) | 5 | (1) |
Amounts reclassified from accumulated other comprehensive income (loss) | ||||
Other comprehensive income (loss) | 2 | (3) | 5 | (1) |
AOCI distributed to QHC in spin-off | ||||
Accumulated Other Comprehensive (Loss) Income, Ending Balance | (5) | (5) | ||
Change in Unrecognized Pension Cost Components [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive (Loss) Income, Beginning Balance | (21) | (25) | (21) | (26) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | 2 | 1 | 3 |
Other comprehensive income (loss) | 1 | 2 | 1 | 3 |
AOCI distributed to QHC in spin-off | 2 | 2 | ||
Accumulated Other Comprehensive (Loss) Income, Ending Balance | $ (20) | $ (21) | $ (20) | $ (21) |
Other Comprehensive Income (104
Other Comprehensive Income (Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | $ 239 | $ 246 | $ 468 | $ 496 |
Loss from continuing operations before income taxes | (131) | (1,543) | (307) | (1,480) |
Tax benefit | 15 | 138 | 15 | 112 |
Net loss attributable to Community Health Systems, Inc. stockholders | (137) | (1,432) | (335) | (1,421) |
Reclassification, net of tax | (6) | (12) | (12) | (22) |
Change in Fair Value of Interest Rate Swaps [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification, net of tax | (5) | (10) | (11) | (19) |
Change in Fair Value of Interest Rate Swaps [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax benefit | 3 | 6 | 6 | 11 |
Net loss attributable to Community Health Systems, Inc. stockholders | (5) | (10) | (11) | (19) |
Change in Fair Value of Interest Rate Swaps [Member] | Interest Rate Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | (8) | (16) | (17) | (30) |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification, Total before tax | (1) | (1) | (1) | |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification, Total before tax | (2) | (1) | (3) | |
Change in Unrecognized Pension Cost Components [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification, Total before tax | (1) | (2) | (2) | (4) |
Tax benefit | 1 | 1 | ||
Reclassification, net of tax | $ (1) | $ (2) | $ (1) | $ (3) |
Contingencies (Contingencies Na
Contingencies (Contingencies Narrative) (Details) $ / shares in Units, $ in Millions | Jan. 17, 2017USD ($) | Nov. 09, 2016USD ($) | Jun. 30, 2017USD ($)$ / shares | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)item$ / shares | Jun. 30, 2016USD ($) | Jan. 27, 2014USD ($) |
Loss Contingencies [Line Items] | |||||||
Business Combination Contingent Consideration Arrangements, Contingent Value Right, Amount Per Share | $ / shares | $ 1 | $ 1 | |||||
Deductible related to litigation and contingent value right | $ 18 | ||||||
Contingent value right, percentage multiplier | 90.00% | ||||||
Number of contingent value rights outstanding | item | 264,544,053 | ||||||
Amount which CVR holders are no longer entitled to payment | $ 312 | $ 312 | |||||
Contingent value right, period payable after final resolution | 60 days | ||||||
Business Combination, Contingent Consideration, Liability, Noncurrent | 260 | $ 260 | $ 284 | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 8 | ||||||
Business Combination, Contingent Consideration, Liability, Current | 0 | 0 | |||||
Pending Litigation [Member] | Legal Matters Where Negative Outcome is Known or Probable [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Legal Fees | $ 1 | $ 1 | $ 1 | $ 2 | |||
U.S. ex re. Baker vs. Community Health Systems, Inc. [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Judgment awarded | $ 1.9 | ||||||
Class Action Shareholder Federal Securities Cases [Member] | Pending Litigation [Member] | Litigation Matters For Which An Outcome Cannot Be Assessed [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of legal cases filed | item | 3 | ||||||
Shareholder Derivative Actions [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Proceeds from legal settlement | $ 40 | ||||||
Shareholder Derivative Actions [Member] | Pending Litigation [Member] | Litigation Matters For Which An Outcome Cannot Be Assessed [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of legal cases filed | item | 3 |
Contingencies (Impact of Legal
Contingencies (Impact of Legal Expenses Paid or Incurred to Date and Settlements Paid or Deemed Final) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | |
Beginning Balance | $ 62 |
Settlements paid | |
Legal expenses incurred and/or paid | 1 |
Ending Balance | 63 |
Deductible [Member] | |
Loss Contingencies [Line Items] | |
Beginning Balance | 18 |
Settlements paid | |
Legal expenses incurred and/or paid | |
Ending Balance | 18 |
Company's Responsibility at 10% [Member] | |
Loss Contingencies [Line Items] | |
Beginning Balance | 4 |
Settlements paid | |
Legal expenses incurred and/or paid | |
Ending Balance | 4 |
Reduction to Amount Owed to CVR Holders at 90% [Member] | |
Loss Contingencies [Line Items] | |
Beginning Balance | 40 |
Settlements paid | |
Legal expenses incurred and/or paid | 1 |
Ending Balance | $ 41 |
Contingencies (Schedule of Reco
Contingencies (Schedule of Reconciliation of the Beginning and Ending Liability Balances in Connection with Probable Contingencies) (Details) - Pending Litigation [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($) | |
CVR Related Liability at Fair Value [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Beginning Balance | $ 252 |
Expense (income) | 8 |
Cash payments | |
Ending Balance | 260 |
Other Probable Contingencies [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Beginning Balance | 14 |
Expense (income) | 12 |
Cash payments | (1) |
Ending Balance | $ 25 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) $ in Millions | Jul. 21, 2017item | Jul. 11, 2017item | Jul. 07, 2017USD ($) | Jul. 01, 2017USD ($)item | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Subsequent Event [Line Items] | ||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ | $ 921 | $ 12 | ||||
Repayments of Long-term Debt | $ | 4,416 | $ 4,279 | ||||
Tomball Regional Medical Center and South Texas Regional Medical Center [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ | 135 | |||||
MultiCare Health System [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ | $ 414 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Repayments of Long-term Debt | $ | $ 343 | |||||
Subsequent Event [Member] | Tomball Regional Medical Center and South Texas Regional Medical Center [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Disposal Date | Jul. 1, 2017 | |||||
Subsequent Event [Member] | Tomball Regional Medical Center [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of licensed beds | 350 | |||||
Subsequent Event [Member] | South Texas Regional Medical Center [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of licensed beds | 67 | |||||
Subsequent Event [Member] | PinnacleHealth System [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Disposal Date | Jul. 1, 2017 | |||||
Number of Hospitals Sold | 4 | |||||
Proceeds from Divestiture of Businesses, Net of Cash Divested | $ | $ 231 | |||||
Subsequent Event [Member] | Memorial Hospital of York [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of licensed beds | 100 | |||||
Subsequent Event [Member] | Lancaster Regional Medical Center [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of licensed beds | 214 | |||||
Subsequent Event [Member] | Heart of Lancaster Regional Medical Center [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of licensed beds | 148 | |||||
Subsequent Event [Member] | Carlisle Regional Medical Center [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of licensed beds | 165 | |||||
Subsequent Event [Member] | MultiCare Health System [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Disposal Date | Jul. 1, 2017 | |||||
Number of Hospitals Sold | 2 | |||||
Total Cash and Non Cash Proceeds | $ | $ 424 | |||||
Subsequent Event [Member] | Deaconess Hospital [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of licensed beds | 388 | |||||
Subsequent Event [Member] | Valley Hospital [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of licensed beds | 123 | |||||
Subsequent Event [Member] | Weatherford Regional Medical Center [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Disposal Date | Jul. 11, 2017 | |||||
Number of licensed beds | 103 | |||||
Subsequent Event [Member] | Highlands Regional Medical Center [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Disposal Date | Jul. 21, 2017 | |||||
Number of licensed beds | 126 |
Supplemental Condensed Conso109
Supplemental Condensed Consolidating Financial Information (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Supplemental Condensed Consolidating Financial Information [Abstract] | |
Percentage of owned domestic subsidiaries which guaranteed senior notes | 100.00% |
Supplemental Condensed Conso110
Supplemental Condensed Consolidating Financial Information (Schedule of Condensed Consolidating Statement of Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidating Statements of Income | ||||
Operating revenues (net of contractual allowances and discounts) | $ 4,823 | $ 5,290 | $ 9,991 | $ 11,044 |
Provision for bad debts | 679 | 700 | 1,362 | 1,455 |
Net operating revenues | 4,144 | 4,590 | 8,629 | 9,589 |
Operating costs and expenses: | ||||
Salaries and benefits | 1,920 | 2,154 | 3,981 | 4,470 |
Supplies | 697 | 759 | 1,446 | 1,559 |
Other operating expenses | 1,017 | 1,056 | 2,074 | 2,229 |
Government and other legal settlements and related costs | 7 | (34) | 1 | |
Electronic health records incentive reimbursement | (17) | (31) | (23) | (49) |
Rent | 104 | 112 | 214 | 231 |
Depreciation and amortization | 223 | 276 | 458 | 574 |
Impairment and (gain) loss on sale of businesses, net | 80 | 1,639 | 330 | 1,656 |
Total operating costs and expenses | 4,031 | 5,965 | 8,446 | 10,671 |
Income (loss) from operations | 113 | (1,375) | 183 | (1,082) |
Interest expense, net | 239 | 246 | 468 | 496 |
Loss from early extinguishment of debt | 10 | 30 | 31 | 30 |
Gain on sale of investments in unconsolidated affiliates | (94) | (94) | ||
Equity in earnings of unconsolidated affiliates | (5) | (14) | (9) | (34) |
Loss from continuing operations before income taxes | (131) | (1,543) | (307) | (1,480) |
Provision for (benefit from) income taxes | (15) | (138) | (15) | (112) |
Loss from continuing operations | (116) | (1,405) | (292) | (1,368) |
Discontinued operations, net of taxes: | ||||
(Loss) income from operations of entities sold or held for sale | (1) | (1) | (2) | (2) |
Impairment of hospitals sold or held for sale | (5) | (5) | (1) | |
Loss from discontinued operations, net of taxes | (6) | (1) | (7) | (3) |
Net loss | (122) | (1,406) | (299) | (1,371) |
Less: Net income attributable to noncontrolling interests | 15 | 26 | 36 | 50 |
Net loss attributable to Community Health Systems, Inc. stockholders | (137) | (1,432) | (335) | (1,421) |
Parent Company [Member] | ||||
Operating costs and expenses: | ||||
Equity in earnings of unconsolidated affiliates | 137 | 1,432 | 335 | 1,421 |
Loss from continuing operations before income taxes | (137) | (1,432) | (335) | (1,421) |
Loss from continuing operations | (137) | (1,432) | (335) | (1,421) |
Discontinued operations, net of taxes: | ||||
Net loss | (137) | (1,432) | (335) | (1,421) |
Net loss attributable to Community Health Systems, Inc. stockholders | (137) | (1,432) | (335) | (1,421) |
Issuer [Member] | ||||
Condensed Consolidating Statements of Income | ||||
Operating revenues (net of contractual allowances and discounts) | (6) | (6) | (12) | (12) |
Net operating revenues | (6) | (6) | (12) | (12) |
Operating costs and expenses: | ||||
Income (loss) from operations | (6) | (6) | (12) | (12) |
Interest expense, net | 87 | 39 | 157 | 74 |
Loss from early extinguishment of debt | 10 | 30 | 31 | 30 |
Equity in earnings of unconsolidated affiliates | 51 | 1,384 | 171 | 1,325 |
Loss from continuing operations before income taxes | (154) | (1,459) | (371) | (1,441) |
Provision for (benefit from) income taxes | (17) | (27) | (36) | (20) |
Loss from continuing operations | (137) | (1,432) | (335) | (1,421) |
Discontinued operations, net of taxes: | ||||
Net loss | (137) | (1,432) | (335) | (1,421) |
Net loss attributable to Community Health Systems, Inc. stockholders | (137) | (1,432) | (335) | (1,421) |
Other Guarantor [Member] | ||||
Condensed Consolidating Statements of Income | ||||
Operating revenues (net of contractual allowances and discounts) | 2,970 | 3,220 | 6,336 | 6,507 |
Provision for bad debts | 438 | 452 | 928 | 929 |
Net operating revenues | 2,532 | 2,768 | 5,408 | 5,578 |
Operating costs and expenses: | ||||
Salaries and benefits | 990 | 1,130 | 2,125 | 2,235 |
Supplies | 440 | 495 | 952 | 991 |
Other operating expenses | 669 | 683 | 1,420 | 1,362 |
Government and other legal settlements and related costs | 7 | (34) | 1 | |
Electronic health records incentive reimbursement | (11) | (21) | (13) | (29) |
Rent | 55 | 56 | 116 | 113 |
Depreciation and amortization | 137 | 181 | 291 | 366 |
Impairment and (gain) loss on sale of businesses, net | 89 | 1,134 | 273 | 1,145 |
Total operating costs and expenses | 2,376 | 3,658 | 5,130 | 6,184 |
Income (loss) from operations | 156 | (890) | 278 | (606) |
Interest expense, net | 148 | 186 | 300 | 366 |
Gain on sale of investments in unconsolidated affiliates | (94) | (94) | ||
Equity in earnings of unconsolidated affiliates | 23 | 462 | 77 | 469 |
Loss from continuing operations before income taxes | (15) | (1,444) | (99) | (1,347) |
Provision for (benefit from) income taxes | 33 | (57) | 69 | (19) |
Loss from continuing operations | (48) | (1,387) | (168) | (1,328) |
Discontinued operations, net of taxes: | ||||
(Loss) income from operations of entities sold or held for sale | 2 | (2) | (1) | (3) |
Impairment of hospitals sold or held for sale | (5) | (5) | ||
Loss from discontinued operations, net of taxes | (3) | (2) | (6) | (3) |
Net loss | (51) | (1,389) | (174) | (1,331) |
Net loss attributable to Community Health Systems, Inc. stockholders | (51) | (1,389) | (174) | (1,331) |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Consolidating Statements of Income | ||||
Operating revenues (net of contractual allowances and discounts) | 1,859 | 2,076 | 3,667 | 4,549 |
Provision for bad debts | 241 | 248 | 434 | 526 |
Net operating revenues | 1,618 | 1,828 | 3,233 | 4,023 |
Operating costs and expenses: | ||||
Salaries and benefits | 930 | 1,024 | 1,856 | 2,235 |
Supplies | 257 | 264 | 494 | 568 |
Other operating expenses | 348 | 373 | 654 | 867 |
Electronic health records incentive reimbursement | (6) | (10) | (10) | (20) |
Rent | 49 | 56 | 98 | 118 |
Depreciation and amortization | 86 | 95 | 167 | 208 |
Impairment and (gain) loss on sale of businesses, net | (9) | 505 | 57 | 511 |
Total operating costs and expenses | 1,655 | 2,307 | 3,316 | 4,487 |
Income (loss) from operations | (37) | (479) | (83) | (464) |
Interest expense, net | 4 | 21 | 11 | 56 |
Loss from continuing operations before income taxes | (41) | (500) | (94) | (520) |
Provision for (benefit from) income taxes | (31) | (54) | (48) | (73) |
Loss from continuing operations | (10) | (446) | (46) | (447) |
Discontinued operations, net of taxes: | ||||
(Loss) income from operations of entities sold or held for sale | (3) | 1 | (1) | 1 |
Impairment of hospitals sold or held for sale | (1) | |||
Loss from discontinued operations, net of taxes | (3) | 1 | (1) | |
Net loss | (13) | (445) | (47) | (447) |
Less: Net income attributable to noncontrolling interests | 15 | 26 | 36 | 50 |
Net loss attributable to Community Health Systems, Inc. stockholders | (28) | (471) | (83) | (497) |
Consolidation, Eliminations [Member] | ||||
Operating costs and expenses: | ||||
Equity in earnings of unconsolidated affiliates | (216) | (3,292) | (592) | (3,249) |
Loss from continuing operations before income taxes | 216 | 3,292 | 592 | 3,249 |
Loss from continuing operations | 216 | 3,292 | 592 | 3,249 |
Discontinued operations, net of taxes: | ||||
Net loss | 216 | 3,292 | 592 | 3,249 |
Net loss attributable to Community Health Systems, Inc. stockholders | $ 216 | $ 3,292 | $ 592 | $ 3,249 |
Supplemental Condensed Conso111
Supplemental Condensed Consolidating Financial Information (Schedule of Condensed Consolidating Statement of Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidating Statement of Comprehensive Income (Unaudited) | ||||
Net loss | $ (122) | $ (1,406) | $ (299) | $ (1,371) |
Other comprehensive income (loss), net of income taxes: | ||||
Net change in fair value of interest rate swaps, net of tax | (2) | (2) | 3 | (21) |
Net change in fair value of available-for-sale securities, net of tax | 2 | (3) | 5 | (1) |
Amortization and recognition of unrecognized pension cost components, net of tax | 1 | 2 | 1 | 3 |
Other comprehensive income (loss) | 1 | (3) | 9 | (19) |
Comprehensive loss | (121) | (1,409) | (290) | (1,390) |
Less: Comprehensive income attributable to noncontrolling interests | 15 | 26 | 36 | 50 |
Comprehensive loss attributable to Community Health Systems, Inc. stockholders | (136) | (1,435) | (326) | (1,440) |
Parent Company [Member] | ||||
Condensed Consolidating Statement of Comprehensive Income (Unaudited) | ||||
Net loss | (137) | (1,432) | (335) | (1,421) |
Other comprehensive income (loss), net of income taxes: | ||||
Net change in fair value of interest rate swaps, net of tax | (2) | (2) | 3 | (21) |
Net change in fair value of available-for-sale securities, net of tax | 2 | (3) | 5 | (1) |
Amortization and recognition of unrecognized pension cost components, net of tax | 1 | 2 | 1 | 3 |
Other comprehensive income (loss) | 1 | (3) | 9 | (19) |
Comprehensive loss | (136) | (1,435) | (326) | (1,440) |
Comprehensive loss attributable to Community Health Systems, Inc. stockholders | (136) | (1,435) | (326) | (1,440) |
Issuer [Member] | ||||
Condensed Consolidating Statement of Comprehensive Income (Unaudited) | ||||
Net loss | (137) | (1,432) | (335) | (1,421) |
Other comprehensive income (loss), net of income taxes: | ||||
Net change in fair value of interest rate swaps, net of tax | (2) | (2) | 3 | (21) |
Net change in fair value of available-for-sale securities, net of tax | 2 | (3) | 5 | (1) |
Amortization and recognition of unrecognized pension cost components, net of tax | 1 | 2 | 1 | 3 |
Other comprehensive income (loss) | 1 | (3) | 9 | (19) |
Comprehensive loss | (136) | (1,435) | (326) | (1,440) |
Comprehensive loss attributable to Community Health Systems, Inc. stockholders | (136) | (1,435) | (326) | (1,440) |
Other Guarantor [Member] | ||||
Condensed Consolidating Statement of Comprehensive Income (Unaudited) | ||||
Net loss | (51) | (1,389) | (174) | (1,331) |
Other comprehensive income (loss), net of income taxes: | ||||
Net change in fair value of available-for-sale securities, net of tax | 2 | (3) | 5 | (1) |
Amortization and recognition of unrecognized pension cost components, net of tax | 1 | 2 | 1 | 3 |
Other comprehensive income (loss) | 3 | (1) | 6 | 2 |
Comprehensive loss | (48) | (1,390) | (168) | (1,329) |
Comprehensive loss attributable to Community Health Systems, Inc. stockholders | (48) | (1,390) | (168) | (1,329) |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Consolidating Statement of Comprehensive Income (Unaudited) | ||||
Net loss | (13) | (445) | (47) | (447) |
Other comprehensive income (loss), net of income taxes: | ||||
Comprehensive loss | (13) | (445) | (47) | (447) |
Less: Comprehensive income attributable to noncontrolling interests | 15 | 26 | 36 | 50 |
Comprehensive loss attributable to Community Health Systems, Inc. stockholders | (28) | (471) | (83) | (497) |
Consolidation, Eliminations [Member] | ||||
Condensed Consolidating Statement of Comprehensive Income (Unaudited) | ||||
Net loss | 216 | 3,292 | 592 | 3,249 |
Other comprehensive income (loss), net of income taxes: | ||||
Net change in fair value of interest rate swaps, net of tax | 2 | 2 | (3) | 21 |
Net change in fair value of available-for-sale securities, net of tax | (4) | 6 | (10) | 2 |
Amortization and recognition of unrecognized pension cost components, net of tax | (2) | (4) | (2) | (6) |
Other comprehensive income (loss) | (4) | 4 | (15) | 17 |
Comprehensive loss | 212 | 3,296 | 577 | 3,266 |
Comprehensive loss attributable to Community Health Systems, Inc. stockholders | $ 212 | $ 3,296 | $ 577 | $ 3,266 |
Supplemental Condensed Conso112
Supplemental Condensed Consolidating Financial Information (Schedule of Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||||
Cash and cash equivalents | $ 768 | $ 238 | $ 461 | $ 184 | ||
Patient accounts receivable, net of allowance for doubtful accounts | 2,939 | 3,176 | ||||
Supplies | 438 | 480 | ||||
Prepaid income taxes | 22 | 17 | ||||
Prepaid expenses and taxes | 210 | 187 | ||||
Other current assets | 678 | 568 | ||||
Total current assets | 5,055 | 4,666 | ||||
Property and equipment, net | 7,312 | 8,149 | ||||
Goodwill | 6,165 | 6,521 | ||||
Other assets, net | 2,341 | 2,608 | ||||
Total assets | 20,873 | 21,944 | ||||
Current liabilities: | ||||||
Current maturities of long-term debt | 46 | 455 | ||||
Accounts payable | 917 | 995 | ||||
Accrued interest | 236 | 207 | ||||
Accrued liabilities | 1,179 | 1,230 | ||||
Total current liabilities | 2,378 | 2,887 | ||||
Long-term debt | 14,702 | 14,789 | ||||
Deferred income taxes | 396 | 411 | ||||
Other long-term liabilities | 1,456 | 1,575 | ||||
Total liabilities | 18,932 | 19,662 | ||||
Redeemable noncontrolling interests in equity of consolidated subsidiaries | 548 | 554 | ||||
Community Health Systems, Inc. stockholders' equity: | ||||||
Preferred stock | ||||||
Common stock | 1 | 1 | ||||
Additional paid-in capital | 1,984 | 1,975 | ||||
Accumulated other comprehensive loss | (53) | $ (54) | (62) | (90) | $ (89) | (73) |
Accumulated deficit | (634) | (299) | ||||
Total Community Health Systems, Inc. stockholders' equity | 1,298 | 1,615 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 95 | 113 | ||||
Total equity | 1,393 | 1,728 | ||||
Total liabilities and equity | 20,873 | 21,944 | ||||
Parent Company [Member] | ||||||
Current assets: | ||||||
Prepaid income taxes | 22 | 17 | ||||
Total current assets | 22 | 17 | ||||
Intercompany receivable | 282 | 295 | ||||
Other assets, net | 14 | 15 | ||||
Net investment in subsidiaries | 1,402 | 1,728 | ||||
Total assets | 1,720 | 2,055 | ||||
Current liabilities: | ||||||
Accrued liabilities | 14 | 17 | ||||
Total current liabilities | 14 | 17 | ||||
Deferred income taxes | 396 | 411 | ||||
Other long-term liabilities | 12 | 12 | ||||
Total liabilities | 422 | 440 | ||||
Community Health Systems, Inc. stockholders' equity: | ||||||
Common stock | 1 | 1 | ||||
Additional paid-in capital | 1,984 | 1,975 | ||||
Accumulated other comprehensive loss | (53) | (62) | ||||
Accumulated deficit | (634) | (299) | ||||
Total Community Health Systems, Inc. stockholders' equity | 1,298 | 1,615 | ||||
Total equity | 1,298 | 1,615 | ||||
Total liabilities and equity | 1,720 | 2,055 | ||||
Issuer [Member] | ||||||
Current assets: | ||||||
Intercompany receivable | 14,341 | 14,966 | ||||
Other assets, net | 14 | |||||
Net investment in subsidiaries | 22,217 | 22,205 | ||||
Total assets | 36,572 | 37,171 | ||||
Current liabilities: | ||||||
Current maturities of long-term debt | 149 | |||||
Accrued interest | 235 | 205 | ||||
Total current liabilities | 235 | 354 | ||||
Long-term debt | 13,802 | 14,018 | ||||
Intercompany payable | 19,915 | 19,811 | ||||
Other long-term liabilities | 1,218 | 1,259 | ||||
Total liabilities | 35,170 | 35,442 | ||||
Community Health Systems, Inc. stockholders' equity: | ||||||
Additional paid-in capital | 549 | 676 | ||||
Accumulated other comprehensive loss | (53) | (62) | ||||
Accumulated deficit | 906 | 1,115 | ||||
Total Community Health Systems, Inc. stockholders' equity | 1,402 | 1,729 | ||||
Total equity | 1,402 | 1,729 | ||||
Total liabilities and equity | 36,572 | 37,171 | ||||
Other Guarantor [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 685 | 162 | 178 | 32 | ||
Patient accounts receivable, net of allowance for doubtful accounts | 684 | 843 | ||||
Supplies | 281 | 324 | ||||
Prepaid expenses and taxes | 157 | 133 | ||||
Other current assets | 489 | 283 | ||||
Total current assets | 2,296 | 1,745 | ||||
Intercompany receivable | 4,781 | 667 | ||||
Property and equipment, net | 4,557 | 5,403 | ||||
Goodwill | 3,404 | 3,735 | ||||
Other assets, net | 2,512 | 2,820 | ||||
Net investment in subsidiaries | 9,347 | 8,607 | ||||
Total assets | 26,897 | 22,977 | ||||
Current liabilities: | ||||||
Current maturities of long-term debt | 38 | 56 | ||||
Accounts payable | 596 | 715 | ||||
Accrued interest | 1 | |||||
Accrued liabilities | 694 | 775 | ||||
Total current liabilities | 1,328 | 1,547 | ||||
Long-term debt | 197 | 233 | ||||
Intercompany payable | 21,925 | 17,508 | ||||
Other long-term liabilities | 1,117 | 1,187 | ||||
Total liabilities | 24,567 | 20,475 | ||||
Community Health Systems, Inc. stockholders' equity: | ||||||
Additional paid-in capital | 907 | 1,080 | ||||
Accumulated other comprehensive loss | (20) | (22) | ||||
Accumulated deficit | 1,443 | 1,444 | ||||
Total Community Health Systems, Inc. stockholders' equity | 2,330 | 2,502 | ||||
Total equity | 2,330 | 2,502 | ||||
Total liabilities and equity | 26,897 | 22,977 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 83 | 76 | $ 283 | $ 152 | ||
Patient accounts receivable, net of allowance for doubtful accounts | 2,255 | 2,333 | ||||
Supplies | 157 | 156 | ||||
Prepaid expenses and taxes | 53 | 54 | ||||
Other current assets | 189 | 285 | ||||
Total current assets | 2,737 | 2,904 | ||||
Intercompany receivable | 5,955 | 6,985 | ||||
Property and equipment, net | 2,755 | 2,746 | ||||
Goodwill | 2,761 | 2,786 | ||||
Other assets, net | 1,020 | 995 | ||||
Total assets | 15,228 | 16,416 | ||||
Current liabilities: | ||||||
Current maturities of long-term debt | 8 | 250 | ||||
Accounts payable | 321 | 280 | ||||
Accrued interest | 1 | 1 | ||||
Accrued liabilities | 471 | 438 | ||||
Total current liabilities | 801 | 969 | ||||
Long-term debt | 703 | 538 | ||||
Intercompany payable | 12,370 | 13,393 | ||||
Other long-term liabilities | 328 | 339 | ||||
Total liabilities | 14,202 | 15,239 | ||||
Redeemable noncontrolling interests in equity of consolidated subsidiaries | 548 | 554 | ||||
Community Health Systems, Inc. stockholders' equity: | ||||||
Additional paid-in capital | 732 | 816 | ||||
Accumulated other comprehensive loss | (6) | (9) | ||||
Accumulated deficit | (343) | (297) | ||||
Total Community Health Systems, Inc. stockholders' equity | 383 | 510 | ||||
Noncontrolling interests in equity of consolidated subsidiaries | 95 | 113 | ||||
Total equity | 478 | 623 | ||||
Total liabilities and equity | 15,228 | 16,416 | ||||
Consolidation, Eliminations [Member] | ||||||
Current assets: | ||||||
Intercompany receivable | (25,359) | (22,913) | ||||
Other assets, net | (1,219) | (1,222) | ||||
Net investment in subsidiaries | (32,966) | (32,540) | ||||
Total assets | (59,544) | (56,675) | ||||
Current liabilities: | ||||||
Intercompany payable | (54,210) | (50,712) | ||||
Other long-term liabilities | (1,219) | (1,222) | ||||
Total liabilities | (55,429) | (51,934) | ||||
Community Health Systems, Inc. stockholders' equity: | ||||||
Additional paid-in capital | (2,188) | (2,572) | ||||
Accumulated other comprehensive loss | 79 | 93 | ||||
Accumulated deficit | (2,006) | (2,262) | ||||
Total Community Health Systems, Inc. stockholders' equity | (4,115) | (4,741) | ||||
Total equity | (4,115) | (4,741) | ||||
Total liabilities and equity | $ (59,544) | $ (56,675) |
Supplemental Condensed Conso113
Supplemental Condensed Consolidating Financial Information (Schedule of Condensed Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | May 18, 2015 | Jun. 30, 2017 | Jun. 30, 2016 |
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | $ 503 | $ 632 | |
Cash flows from investing activities: | |||
Acquisitions of facilities and other related equipment | (4) | (114) | |
Purchases of property and equipment | (274) | (407) | |
Proceeds from disposition of hospitals and other ancillary operations | 921 | 12 | |
Proceeds from sale of property and equipment | 3 | 7 | |
Purchases of available-for-sale securities | (37) | (63) | |
Proceeds from sales of available-for-sale securities | 47 | 233 | |
Proceeds from sale of investments in unconsolidated affiliates | 403 | ||
Distribution from Quorum Health Corporation | $ 1,200 | 1,219 | |
Increase in other investments | (60) | (113) | |
Net cash provided by investing activities | 596 | 1,177 | |
Cash flows from financing activities: | |||
Repurchase of restricted stock shares for payroll tax withholding requirements | (5) | (5) | |
Deferred financing costs and other debt-related costs | (62) | (22) | |
Proceeds from noncontrolling investors in joint ventures | 5 | ||
Redemption of noncontrolling investments in joint ventures | (4) | (16) | |
Distributions to noncontrolling investors in joint ventures | (53) | (47) | |
Borrowings under credit agreements | 840 | 2,806 | |
Issuance of long-term debt | 3,100 | ||
Proceeds from receivables facility | 26 | 31 | |
Repayments of long-term indebtedness | (4,416) | (4,279) | |
Net cash used in financing activities | (569) | (1,532) | |
Net change in cash and cash equivalents | 530 | 277 | |
Cash and cash equivalents at beginning of period | 238 | 184 | |
Cash and cash equivalents at end of period | 768 | 461 | |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | (11) | (5) | |
Cash flows from financing activities: | |||
Repurchase of restricted stock shares for payroll tax withholding requirements | (5) | (5) | |
Changes in intercompany balances with affiliates, net | 16 | 10 | |
Net cash used in financing activities | 11 | 5 | |
Issuer [Member] | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | (163) | (294) | |
Cash flows from investing activities: | |||
Distribution from Quorum Health Corporation | 1,219 | ||
Net cash provided by investing activities | 1,219 | ||
Cash flows from financing activities: | |||
Deferred financing costs and other debt-related costs | (62) | (22) | |
Changes in intercompany balances with affiliates, net | 578 | 497 | |
Borrowings under credit agreements | 795 | 2,783 | |
Issuance of long-term debt | 3,100 | ||
Repayments of long-term indebtedness | (4,248) | (4,183) | |
Net cash used in financing activities | 163 | (925) | |
Other Guarantor [Member] | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | 381 | 599 | |
Cash flows from investing activities: | |||
Acquisitions of facilities and other related equipment | (3) | ||
Purchases of property and equipment | (182) | (282) | |
Proceeds from disposition of hospitals and other ancillary operations | 921 | 8 | |
Proceeds from sale of property and equipment | 2 | 4 | |
Purchases of available-for-sale securities | (27) | (21) | |
Proceeds from sales of available-for-sale securities | 38 | 14 | |
Proceeds from sale of investments in unconsolidated affiliates | 403 | ||
Increase in other investments | (51) | (84) | |
Net cash provided by investing activities | 701 | 39 | |
Cash flows from financing activities: | |||
Changes in intercompany balances with affiliates, net | (536) | (469) | |
Borrowings under credit agreements | 26 | 2 | |
Repayments of long-term indebtedness | (49) | (25) | |
Net cash used in financing activities | (559) | (492) | |
Net change in cash and cash equivalents | 523 | 146 | |
Cash and cash equivalents at beginning of period | 162 | 32 | |
Cash and cash equivalents at end of period | 685 | 178 | |
Non-Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net cash (used in) provided by operating activities | 296 | 332 | |
Cash flows from investing activities: | |||
Acquisitions of facilities and other related equipment | (4) | (111) | |
Purchases of property and equipment | (92) | (125) | |
Proceeds from disposition of hospitals and other ancillary operations | 4 | ||
Proceeds from sale of property and equipment | 1 | 3 | |
Purchases of available-for-sale securities | (10) | (42) | |
Proceeds from sales of available-for-sale securities | 9 | 219 | |
Increase in other investments | (9) | (29) | |
Net cash provided by investing activities | (105) | (81) | |
Cash flows from financing activities: | |||
Proceeds from noncontrolling investors in joint ventures | 5 | ||
Redemption of noncontrolling investments in joint ventures | (4) | (16) | |
Distributions to noncontrolling investors in joint ventures | (53) | (47) | |
Changes in intercompany balances with affiliates, net | (58) | (38) | |
Borrowings under credit agreements | 19 | 21 | |
Proceeds from receivables facility | 26 | 31 | |
Repayments of long-term indebtedness | (119) | (71) | |
Net cash used in financing activities | (184) | (120) | |
Net change in cash and cash equivalents | 7 | 131 | |
Cash and cash equivalents at beginning of period | 76 | 152 | |
Cash and cash equivalents at end of period | $ 83 | $ 283 |