Community Health Systems Acquires Phoenixville, Pennsylvania Hospital From the University of Pennsylvania Health System.

BRENTWOOD, Tenn. -- Community Health Systems, Inc. (NYSE: CYH) announced today the closing of the acquisition of Phoenixville Hospital, a 143-bed acute general hospital from the University of Pennsylvania Health System. Phoenixville is located approximately 30 miles west of Philadelphia and 35 miles east of Reading, Pennsylvania. The acquisition also included a 95,000 square foot medical complex in nearby Limerick, which houses an ambulatory surgical facility, an imaging center, and medical office space. The transaction was structured as a purchase of assets; the effective date of the acquisition was August 1, 2004.

"We are very pleased to bring this significant transaction to a conclusion and add Phoenixville Hospital to our system of quality facilities," said Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc. "The demographics of this community make this facility an ideal fit with our acquisition model. The plans for expansion of this facility and the services to be provided will return numerous benefits to the community while at the same time returning value to our Company. The continuation of the clinical and academic affiliation with the University of Pennsylvania Health System will likewise benefit all participants. We look forward to working with the dedicated employees and licensed professionals in Phoenixville and to forming strong alliances with the community foundation and the University."

Located in the Nashville, Tennessee, suburb of Brentwood, Community Health Systems is a leading operator of general acute care hospitals in non-urban communities throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 74 hospitals in 22 states. Its hospitals offer a broad range of inpatient and outpatient medical and surgical services. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol "CYH."

Statements contained in this news release are forward-looking statements that involve risks 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, specifically the most recent filings which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including execution of our growth, acquisition, and business strategies. These and other applicable risks are summarized under the caption "risk factors" in the Company's Securities and Exchange Commission filings.