Community Health Systems (CYH) investor relations material

Strategic priorities and operational focus

• Leadership has set new priorities on quality, employee engagement, physician and patient experience, with clearer processes and measurement of impact.

• Expansion of ambulatory footprint is a key growth area, with four new ambulatory surgery centers (ASCs) added this year and ongoing investments in outpatient services.

• Maintenance and growth capital allocation remains consistent, with growth focused on ambulatory and freestanding emergency departments.

• Market share has remained stable, with potential opportunities if 340B cuts persist and competitors are impacted.

• Divestitures have slowed, but remain a tool for deleveraging, with significant runway before major debt maturities in 2029 and 2030.

Financial performance and guidance

• Same-store adjusted admissions grew nearly 3%, but growth was driven by self-pay and uninsured visits, with softness in payer and service mix.

• Elective surgical volumes showed improvement in June, with expectations for further recovery in Q4 as patients meet deductibles.

• EBITDA guidance was revised down by $60–$70 million for the back half of the year, offset partially by $50 million in new state-directed payment programs.

• Out-of-period state-directed payments and divestitures largely offset each other, with a net $15 million benefit in 2026 from prior period payments.

• Operating cash flow guidance was reduced due to slower commercial payer payments and timing differences in state-directed payment programs.

Policy and reimbursement environment

• Medicaid work requirements and redetermination rules will impact about half of Medicaid revenues, with ongoing efforts to educate and enroll eligible patients.

• Exchange business is less than 4% of net revenue; a spike in uninsured visits occurred in Q2 as some lost enhanced premium tax credits and remained self-pay.

• State-directed payment programs in Georgia, Indiana, and Florida are expected to provide $50 million in tailwinds, with Florida's recognition varying by guidance scenario.

• Rural Health Transformation Fund grants are being pursued, with income recognized over multiple years and allocations determined by states.

• Medicare outpatient rate is proposed to increase by 5–5.5%, providing a potential tailwind.