Organized in 1985, Community Health Systems (CHS) is based near Nashville, Tennessee. The company specializes in operating community hospitals in cities with 20,000 to 400,000 residents and it currently operates 80 hospitals in 23 states, representing nearly 9,400 licensed beds.
EHS’ Board members were given the invitation to visit any CHS facility and chose two CHS hospitals—in Easton, Pennsylvania and Lancaster, South Carolina, both of which had been acquired by CHS in transactions similar to the contemplated transaction between EHS and CHS. Board members were extremely impressed with CHS’ commitment to clinical quality, facilities, the staff and the results these hospitals have achieved. They spoke with employees, managers, physicians, board members and community members who had gone through the partnership process in the last five to ten years.
Since CHS understands the specific needs of hospitals, it is able to work with communities to create a partnership that maintains local involvement while providing necessary resources to expand services, improve facilities and enhance technology. This approach has helped dozens of hospitals thrive while producing consistently high levels of patient and physician satisfaction.
CHS' family of hospitals benefits from economies of scale, volume purchasing agreements, enhanced physician recruitment capabilities, management expertise and access to capital.
FACT SHEET
History
· Community Health Systems (CHS) was founded in March 1985.
· In 1996, CHS relocated its corporate headquarters in Houston, Texas and combined it with the company’s operations group in Nashville, Tennessee.
· In June 1996, an affiliate of Forstmann Little & Co. acquired the company in a $1.1 billion leveraged buyout.
· In 1997, Wayne T. Smith was recruited as president and chief executive officer.
· The company was taken public on the New York Stock Exchange in June 2000 at a price of $13 per share.
· From 1997 through 2006, CHS grew from $742 million in net revenue to more than $4 billion. This represents a compound annual growth rate of 22 percent – the strongest record of revenue growth in the industry.
Today
· With the completion of the merger with Triad Hospitals, Inc. earlier this summer, CHS is now the largest publicly traded hospital company in the country:
§ 130 hospitals (129 in 28 states and 1 hospital in Ireland);
§ aggregate bed count of more than 18,000;
§ 13 ambulatory surgery centers;
§ more than 90,000 employees.
§ annual revenues of approximately billion.
· The consolidated organization owns and leases community hospitals that offer quality, cost-effective healthcare including a range of inpatient medical and surgical services, outpatient treatment and skilled nursing care.
· In addition, through its QHR subsidiary, the organization provides hospital management, consulting, and advisory services to more than 180 independent community hospitals and health systems throughout the U.S.
· CHS is headquartered in the Nashville suburb of Franklin, Tennessee, where it employs approximately 1,000 people.
In its Local Markets
· CHS strengthens its local hospitals by improving operations; recruiting quality primary physicians and specialists; expanding services; increasing ER patient visits; improving hospital operations and effectively integrating new facilities.
· When a hospital becomes affiliated with CHS, that facility has access to significant capital investment to expand services, add equipment, upgrade technology and make physical improvements. It also benefits from volume purchasing, managed care negotiating strength and the shared best practices of more than 100 other hospitals.
· CHS recognizes that community hospitals are important community assets and, typically, one of the largest local employers. CHS assists hometown hospitals in achieving or maintaining a position as the healthcare provider of choice.
For more information about Community Health Systems, please visit their website at www.chs.net