It is worth noting that CYH Management is continuing to push forward with their strategy to delever their balance sheet & sell off underperforming hospitals assets in order to improve cash flow. They seem to be making progress in these efforts, although early, evidenced by their recently published financial and operating results for the three months ended March 31, 2019. On April 30th CYH released an announcement post reporting Q1 earnings that included the following comments from Wayne T. Smith, chairman, and chief executive officer of Community Health Systems, Inc.,
“We continued to see incremental improvements in same-store net revenue and volume across our key markets in the first quarter of 2019, as well as a strengthening of our overall portfolio as additional divestitures have occurred. We believe our recent investments, including physician recruitment, employment and alignment strategies, and the development of new access points, will drive continued improvement in our performance moving forward. We remain focused on all aspects of operational excellence, with a high priority on the efficient use of our resources, diligent efforts to continuously improve processes and results, and consistent execution of our growth initiatives. Finally, we remain committed to continuing to provide high-quality, safe care across our continuum of services.”CYH further confirmed the following progress in the same press release:
The Company completed seven hospital divestitures during the three months ended March 31, 2019 (including two divestitures that preliminarily closed on December 31, 2018). In addition, the Company has entered into a definitive agreement to sell one additional hospital, which divestiture has not yet been completed. The Company intends to continue its portfolio rationalization strategy during the remainder of 2019 and is pursuing additional interests for sale transactions, which are currently in various stages of negotiation with potential buyers. There can be no assurance that these potential divestitures (or the potential divestiture currently subject to a definitive agreement) will be completed, or if they are completed, the ultimate timing of the completion of these divestitures. The Company continues to receive interest from potential acquirers for certain of its hospitals.CYH shares closed at $3.18 today up 93.14% on trading of 1.23 Million shares. The 3 month avg volume is 2.29 Million shares. The 52-week range is 2.48 – $5.35.