Community Health Systems, Inc. (NYSE:CYH) was founded in 1985 and is headquartered in Franklin, Tennessee, USA. It has 77,000 full-time employees (2018). It is one of the largest hospital operators in the United States with many similar companies , Such as: HCA Holdings , Tenet Healthcare , Global Health Services , LifePoint Health, etc.
Community Health Systems (CYH):
Community Health System Corporation is an enterprise engaged in hospital operation. It is an operator of community-affiliated acute care hospitals across the United States. It provides medical and health services in the suburbs and selected cities of the United States through its owned and operated hospitals and affiliated companies.
Community Health Systems’ operations can be divided into hospital operations and home care organization operations. The company’s hospital business includes emergency hospitals and healthcare organizations that provide inpatient and outpatient medical services; home care organization business provides family outpatient treatment.
CHS is one of the largest hospital management and operation companies in the United States, and its hospital system occupies a dominant position in several southern states of the United States. More than 50% of its revenue comes from 83 hospitals in Tennessee, Florida, Pennsylvania, Texas and Indiana.
Chen Tianqiao holds more than 22% of the shares in the community health system company through Shanda Media Group.
As of December 31, 2017, Community Health Systems owned or leased 125 hospitals in 19 states in the United States, including 123 general acute care hospitals and 2 independent rehabilitation or psychiatric hospitals, with a total of 20,850 licensed beds.
Community Health Systems (CYH) history:
- In 1985, E. Thomas Chaney, an executive of Hospital Affiliates, Inc., and David Steffy and Richard Ragsdale, executives of Hospital Corporation of America, spun off Republic Health Corporation and established Community Health Systems;
- In 1991, the IPO of Community Health Systems;
- In 1996, the community health system company was acquired by the private equity company Forstmann Little & Company;
- In 2000, Community Health Systems IPO again and landed on the New York Stock Exchange;
- In August 2003, the community health system company acquired Southside Regional Medical Center-a triad medical center with 534 beds;
- In 2007, Community Health Systems acquired McKenzie-Willamette Hospital in Springfield, Oregon;
- In 2011, peer Tenet Healthcare accused Community Health Systems of excessive medical treatment;
- In 2013, Community Health Systems and Health Management Associates reached an agreement to acquire HMA for US$3.6 billion. This merger made CYH the largest for-profit hospital company in the United States;
- On August 18, 2014, there was a report that hackers broke into the Community Health Systems system and stole 4.5 million patient data, including the patient’s name, social security number, address, birthday, and phone number;
- In 2014, CHS acquired the hospitals of the US hospital operator HMA (Health Management Associates) for US$3.9 billion, but the latter greatly dragged down its revenue and profits. As a last resort, CHS management began to reverse CHS’s operating dilemma through divestiture of loss-making hospitals and active asset restructuring;
- In August 2016, Chen Tianqiao purchased 9.9% of CHS common stock through Shanda Media Group at a price of US$11.3 million, and officially entered the US hospital investment. Subsequently, through a series of acquisitions, Chen Tianqiao’s shares in CHS held in March 2017 rose to 13.7%;
- In 2016, CHS separated its 38 smallest hospitals and rural hospitals separately and established a new company Quorum Health, and all the US$1.2 billion obtained from this was used to repay debts. Since then, CHS turn its four joint-venture hospitals for $ 445 million sold to Universal Health Services (Universal Health Services);
- In May 2017, some doctors and private equity groups tried to acquire CHS’s 8 hospitals around Fort Wayne, Indiana for US$2.4 billion, but CHS believed that the offer price was at least US$1 billion less, and therefore rejected the offer;
- In August 2017, Chen Tianqiao increased his stake in Community Health Systems for 4 consecutive days, at a total cost of US$71.2 million. After the increase, Chen Tianqiao’s shareholding rose from 13.7% to a dominant 22.1%.