CYH

Business Context and Reporting Period

Company: Community Health Systems, Inc. (CYH)
Filing Type: Form 8-K (Current Report)
Date of Report: December 1, 2023
Event: Completion of a significant asset disposition involving the sale of three acute care hospitals in Florida.

Key Financial Metrics

Transaction Value: Approximately $294 million in cash.
Assets Sold: Substantially all assets and certain liabilities related to the "Bravera Health hospitals."
Specific Facilities:

• Bravera Health Brooksville (120 licensed beds)
• Bravera Health Seven Rivers (128 licensed beds)
• Bravera Health Spring Hill (124 licensed beds)

Other Metrics: The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the reporting period. Unaudited pro forma financial information is referenced in Exhibit 99.1 but not detailed in the text of this report.

Material Changes

The Company completed the sale of the Bravera Health hospitals to Florida Health Sciences Center, Inc. and its affiliates. This transaction was previously disclosed on July 25, 2023, and finalized on December 1, 2023, following a preliminary closing on November 30, 2023. The purchase price was subject to estimated working capital and purchase price adjustments.

Guidance, Outlook, and Risks

Management Commentary: The Company issued a press release (Exhibit 99.2) announcing the completion of the transaction.
Risks and Contingencies: The filing includes standard disclaimers regarding the Asset Purchase Agreement, noting that representations and warranties were made solely for the benefit of the parties and may differ from an investor's view of materiality. The transaction is classified as a significant disposition under Item 2.01 of Form 8-K.

Investor Verification Checklist

• Review Exhibit 99.1 for the Unaudited Pro Forma Condensed Consolidated Financial Statements to assess the impact of the disposition on the Company's financial position.
• Verify the final purchase price adjustments in the definitive closing documentation, as the $294 million figure is preliminary and subject to working capital adjustments.
• Examine the Asset Purchase Agreement (Exhibit 2.1) for specific liabilities assumed by the purchaser and any retained obligations by the Company.
• Confirm the operational status of the remaining hospital portfolio following the exit from the Florida market segment.