Community Health Systems 2014 Annual Report Download - page 7

This is the age of consumerism and our customers have more
options than ever before. Our business model is evolving in
response to these rapidly changing market dynamics. We
have launched new telemedicine programs to increase access
and convenience. We are collaborating with other providers
to coordinate care, including a new partnership with CVS
Health in several key markets—a relationship we expect to
grow over time. Many of our physician practices have extended
hours and now offer same day or walk-in appointments.
We have created eleven regional healthcare networks that
encompass more than 30 percent of our affiliated hospitals.
As more care shifts to outpatient environments, we are invest-
ing in freestanding emergency rooms, diagnostic clinics, sur-
gery centers, and multi-specialty group practices. Our ability
to effectively deliver outpatient services already is evident in
the hundreds of clinics, 63 ambulatory surgery centers, 41
urgent treatment centers, and 130 home health agencies we
currently operate.
Of course, our Company’s success is not built on bricks and
mortar or large-scale acquisitions alone. It depends on a
strong foundation of trusted relationships with physicians and
other clinicians. In 2014, we recruited 3,765 physicians and 163
mid-level practitioners to provide care in our hospitals and
clinics. Today, more than 22,500 physicians serve on our med-
ical staffs and more than 3,300 physicians have chosen to be
employed within our organization. In a medical staff survey,
88 percent of participating physicians told us they would rec-
ommend their CHS-affiliated hospital to their own family or
friends and 91 percent said they are satisfied with their hospi-
tal’s efforts to provide safe care for patients.
Our employees are valued partners in the care of millions of
patients. We appreciate their skills and professionalism and
see, daily, how their kindness brings comfort to those who are
sick or hurting.
As partners in our communities, we invested more than $850
million in 2014 to fund capital improvements; bringing better
facilities and the latest medical technologies to the communi-
ties we serve. Other tangible benefits in cities and towns
across America include jobs for 135,000 people, tens of millions
of dollars paid in taxes, and nearly $3.3 billion provided in charity
care and discounts for those who can’t afford health services.
Over the past year, we have demonstrated our ability to
resolve difficult issues. In September, we successfully settled
the U.S. Department of Justice investigation into short-stay
admissions at CHS Legacy hospitals. This case concluded with
no finding of illegal or improper conduct by Community
Health Systems or its affiliated hospitals. There are investiga-
tions and lawsuits involving the former HMA hospitals still
pending and we are fully cooperating in these investigations
to resolve them as expeditiously as possible.
We will remember 2014 as a good year in the life of our
Company. When the opening bell rang on January 2nd, CYH
shares traded at $39.20. We ended the year with a stock price
of $53.92. Our consolidated revenues exceeded $18.6 billion
and our Adjusted EBITDA (Earnings before Interest,
Taxes, Depreciation and Amortization) was over $2.7 billion.
Excluding certain unusual adjustments, our adjusted earnings
per share from continuing operations were $3.29 (diluted).
Finally, as we mark the successful turn of another year, I want
to point out that 2015 is not just a new calendar year for us.
This marks the 30th anniversary of Community Health
Systems. As we forge ahead now, we renew our commitment
to the quality care, responsible operations and public service
on which CHS is built.
We are grateful for the millions of patients who turn to us
in their time of need, and we thank our medical staffs and
employees who dedicate themselves daily to the highest clini-
cal and ethical standards. We appreciate the leadership of our
hospitals and company executives and the support of our
board of directors. And we thank you, our stockholders, for
the confidence that your investment in Community Health
Systems confirms. We will continue earning your trust, every
day of 2015 and beyond.
Sincerely,
Wayne T. Smith
Chairman of the Board and Chief Executive Officer
2014 ANNUAL REPORT // 3
“ This is the age of consumerism and our customers
have more options than ever before. Our busi-
ness model is evolving in response to these rapidly
changing market dynamics.”