Community Health Systems 2010 Annual Report Download - page 6

Community Health Systems, Inc. celebrated its tenth
anniversary as a public company during 2010. As we
reflect on the past decade, we have many reasons to be
proud of our Company and our accomplishments.
We have enjoyed a solid record of operational excellence
and a pattern of steady growth that has positioned
Community Health Systems, Inc. at the top of our
industry. Our proven centralized operating platform
leverages our scale and experience and continues to
deliver favorable results. Above all, we have established
strong relationships with the communities across the
United States that we serve, and we are especially proud
of the reputation we have earned as a trusted partner
and consistent and effective health care provider.
We have successfully fulfilled our mission to enhance
the level and quality of healthcare services in our local
communities and, at the same time, delivered greater
value for our stockholders. More importantly, through
the investments we have made in our hospitals, our
people and our communities, we have positioned the
Company for continued success in the decades to come.
We are pleased that 2010 not only marked an important
anniversary milestone, but also extended our record of
delivering solid financial and operating performance.
Revenues for the year were a record $13.0 billion,
surpassing the previous year’s record of $12.1 billion by
7.3 percent. Income from continuing operations
increased to $348.4 million in 2010, up 14 percent over
the prior year. We also delivered increased earnings to
our shareholders as net income increased by 15.1 percent
to $280 million, or $3.01 per diluted share, compared
with $243.2 million, or $2.66 per diluted share, in 2009.
Today, more than ever, the hospital industry faces a
variety of challenges across the country and many of
our communities are experiencing economic hardships.
Proposed legislative changes to our national healthcare
system continue to evolve, creating another level of
uncertainty. Our track record demonstrates that
Community Health Systems, Inc. has the ability to
meet these challenges head on and succeed in a dynamic
environment. As a national hospital company with
facilities in 29 states, our geographically diverse portfolio
has provided a competitive advantage, especially in an
uncertain economic environment. Our hospitals have
strong positions in each of their respective markets and
no one state represents a disproportionate percentage of
our revenues or admissions. Even in difficult market
conditions, we have been able to consistently drive cost
efficiencies, recruit and retain qualified physicians, and
implement administrative and clinical best practices in
all of our hospitals.
As we have added more hospital facilities to our
portfolio, we have also made the necessary capital
investments to expand and enhance the level of
healthcare services, keep pace with technological
advancements and improve the patient experience.
While each of our markets has unique strengths and
needs, our shared goal is to ensure we have the right
infrastructure, technologies and clinical services for all
of our hospitals. In 2010, we spent over $667 million
on major capital improvement projects, including
$36 million for replacement hospital facilities.
We believe our ongoing commitment to make the
appropriate capital investments for organic growth has
continued to drive market share expansion. Over time,
we have demonstrated that these investments have
provided incremental benefits for both the Company
and the communities we serve.
Letter to Stockholders: