Community Health Systems, Inc. Announces Second Quarter 2007 Results with Net Operating Revenues up 17.7%.

FRANKLIN, Tenn. -- Community Health Systems, Inc. (NYSE: CYH) today announced financial and operating results for the three and six months ended June 30, 2007.

Net operating revenues for the quarter ended June 30, 2007, totaled $1.249 billion, a 17.7% increase compared with $1.061 billion for the same period last year. Income from continuing operations and net income increased 2.7% to $53.8 million, or $0.57 per share (diluted), on 94.6 million weighted average shares outstanding for the quarter ended June 30, 2007, compared with $52.4 million, or $0.54 per share (diluted), on 96.9 million weighted average shares outstanding for the same period last year.

Adjusted EBITDA for the second quarter of 2007 was $172.5 million, compared with $156.7 million for the same period last year, representing a 10.1% increase. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations and minority interest in earnings. The Company uses adjusted EBITDA as a measure of liquidity. Net cash provided by operating activities for the second quarter of 2007 was $95.6 million, compared with $116.2 million for the same period last year.

The consolidated financial results for the quarter ended June 30, 2007, reflect a 10.9% increase in total admissions compared with the same period last year. This increase is attributable to hospitals acquired during 2007 and 2006. On a same-store basis, admissions decreased 0.2% and adjusted admissions decreased 0.4%, compared with the same period last year. On a same-store basis, net operating revenues increased 4.5%, compared with the same period last year.

Net operating revenues for the six months ended June 30, 2007, totaled $2.453 billion, a 17.5% increase compared with $2.088 billion for the same period last year. Income from continuing operations decreased 1.4% to $108.1 million compared with $109.6 million for the same period last year. As a result of a decrease in the number of weighted average shares outstanding on a per share (diluted) basis, income from continuing operations increased to $1.14 per share (diluted) on 94.4 million weighted average shares outstanding compared to $1.13 per share (diluted) on 97.5 million weighted average shares outstanding for the same period last year. Net income increased to $108.1 million, or $1.14 per share (diluted), for the six months ended June 30, 2007, compared with $106.4 million, or $1.09 per share (diluted), for the same period last year.

Adjusted EBITDA for the six months ended June 30, 2007, was $342.7 million, compared with $315.2 million for the same period last year, representing an 8.7% increase. Net cash provided by operating activities for the six months ended June 30, 2007, was $216.0 million, compared with $207.0 million for the same period last year.

The consolidated financial results for the six months ended June 30, 2007, reflect an 11.8% increase in total admissions compared with the same period last year. This increase is primarily attributable to hospitals acquired during 2007 and 2006. On a same-store basis, admissions increased 0.4% and adjusted admissions increased 0.4%, compared with the same period last year. On a same-store basis, net operating revenues increased 5.3%, compared with the same period last year.

"Community Health Systems delivered a solid financial and operating performance for the second quarter of 2007," said Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc. "These results reflect consistent execution of our centralized and standardized operating strategy and our ongoing focus on quality care. This strategy has enabled us to continue to be successful in meeting our objectives in a challenging, constantly evolving healthcare environment."

On July 25, 2007, the Company completed its acquisition of Triad Hospitals, Inc. ("Triad") (former NYSE: TRI). Pursuant to the merger agreement under which the acquisition was completed, shareholders of Triad received $54 in cash per share of common stock, or approximately $6.968 billion in the aggregate, including the assumption of approximately $1.702 billion of existing indebtedness of Triad. Triad stock ceased to trade on the New York Stock Exchange effective at the close of business on July 25, 2007.

In connection with the consummation of the merger, the Company obtained $7.215 billion of senior secured financing under a new credit facility and its wholly-owned subsidiary, CHS/Community Health Systems, Inc. issued $3.021 billion aggregate principal amount ($3.000 billion, net of discount) of 8.875% senior notes due 2015 (the "Notes") at the closing of the merger. The Company used the net proceeds of $3.000 billion from the Notes offering and the net proceeds from the $6.065 billion of term loan under the new credit facility to pay the consideration under the merger agreement, to repay certain of its indebtedness and indebtedness of Triad, to complete certain related transactions, to pay certain costs and expenses of the transactions and for general corporate uses. A $750.0 million revolving credit facility and a $400.0 million delayed draw term loan facility is available to the Company for working capital and general corporate purposes under the new credit facility. The revolving credit facility will include a subfacility for letters of credit and a swingline subfacility.

"We are very pleased to complete the acquisition of Triad Hospitals, Inc.," added Smith. "This transaction marks a significant milestone for the Company, establishing in our view Community Health Systems as the leading publicly traded hospital management company in the United States, with the expertise and scale inherent in this position. We believe this merger represents a significant growth opportunity as we begin to focus on the incremental value of the newly acquired assets. We are very excited about our ability to further expand our reach and geographic scope and look forward to the successful integration of the Triad operations."

Effective April 1, 2007, the Company completed the acquisition of Lincoln General Hospital, a 157 bed acute care hospital in Ruston, Louisiana. Ruston is approximately 70 miles east of Shreveport, Louisiana, and is home to both Louisiana Tech University and Grambling State University.

Effective May 1, 2007, the Company completed the acquisition of Porter Memorial Hospital, a 301 bed acute care hospital located in Valparaiso, Indiana. Hospital campuses are located in Valparaiso and Portage, Indiana, and outpatient medical campuses in Chesterton, Dermotte and Hebron, Indiana. Valparaiso is the county seat of Porter County, and is located 40 miles southeast of Chicago, Illinois, and 40 miles west of South Bend, Indiana.

Located in Franklin, Tennessee, Community Health Systems, Inc. is a leading operator of general acute care hospitals in non-urban and mid-market communities throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 130 hospitals in 28 states. Its hospitals offer a broad range of inpatient medical and surgical services, outpatient treatment and skilled nursing care. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol "CYH."

Community Health Systems, Inc. will hold a conference call to discuss this press release on Tuesday, July 31, 2007, at 11:30 a.m. Central, 12:30 p.m. Eastern. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the Investor Relations link of the Company's website at www.chs.net, or at www.earnings.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and continue through August 31, 2007. A copy of the Company's Form 8-K (including this press release) and conference call slide show will also be available on the Company's website at www.chs.net.

Statements contained in this news release regarding expected operating results, acquisition transactions and other events are forward-looking statements that involve risk and uncertainties. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Community Health Systems, Inc. with the Securities and Exchange Commission, including the Company's annual report on Form 10-K and, current reports on Form 8-K and 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

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