The following highlights the financial and operating results for the three months ended March 31, 2022.

• Net operating revenues totaled $3.111 billion.
• Net loss attributable to Community Health Systems, Inc. stockholders was $(1) million, or $(0.01) per share (diluted), compared to $(64) million, or $(0.51) per share (diluted), for the same period in 2021. Excluding the adjusting items as presented in the table in footnote (e) on page 12, net income attributable to Community Health Systems, Inc. stockholders was $0.14 per share (diluted), compared to $0.36 per share (diluted) for the same period in 2021.
• Adjusted EBITDA was $409 million, including $47 million of pandemic relief funds.
• Net cash provided by operating activities was $101 million for both of the three-month periods ended March 31, 2022 and 2021.
• On a same-store basis, admissions decreased 0.3 percent and adjusted admissions increased 3.2 percent, compared with the same period in 2021.

Net operating revenues for the three months ended March 31, 2022, totaled $3.111 billion, a 3.3 percent increase compared with $3.013 billion for the same period in 2021.

Net loss attributable to Community Health Systems, Inc. stockholders was $(1) million, or $(0.01) per share (diluted), for the three months ended March 31, 2022, compared to $(64) million, or $(0.51) per share (diluted), for the same period in 2021. Excluding the adjusting items as presented in the table in footnote (e) on page 12, net income attributable to Community Health Systems, Inc. stockholders was $0.14 per share (diluted) for the three months ended March 31, 2022, compared to $0.36 per share (diluted) for the same period in 2021. Pandemic relief funds, as more specifically described below, had a positive impact on net loss attributable to Community Health Systems, Inc. stockholders (both on a consolidated and adjusted basis) of approximately $35 million, or $0.27 on a per share (diluted) basis, and approximately $62 million, or $0.54 on a per share (diluted) basis, for the three months ended March 31, 2022 and 2021, respectively. Weighted-average shares outstanding (diluted) were 128 million and 126 million for the three months ended March 31, 2022 and 2021, respectively.

Adjusted EBITDA for the three months ended March 31, 2022, was $409 million compared with $495 million for the same period in 2021. Pandemic relief funds had a positive impact on Adjusted EBITDA of approximately $47 million and $82 million for the three months ended March 31, 2022 and 2021, respectively.

The consolidated operating results for the three months ended March 31, 2022, reflect a 1.7 percent decrease in admissions and a 2.2 percent increase in adjusted admissions, compared with the same period in 2021. On a same-store basis, admissions decreased 0.3 percent and adjusted admissions increased 3.2 percent for the three months ended March 31, 2022, compared with the same period in 2021. On a same-store basis, net operating revenues increased 3.8 percent for the three months ended March 31, 2022, compared with the same period in 2021.

As a provider of healthcare services, the Company continues to be affected by the public health and economic effects of the COVID-19 pandemic. During the three months ended March 31, 2022 and 2021, the Company received approximately $42 million and $3 million, respectively, in pandemic relief fund payments through various federal, state and local programs. During the three months ended March 31, 2022 and 2021, the Company recognized approximately $47 million and $82 million, respectively, of the pandemic relief funds eligible to be claimed as a reduction in operating costs and expenses. Amounts recognized are denoted by the caption “pandemic relief funds” in the condensed consolidated statements of loss. Pandemic relief funds that have not yet been recognized as a reduction in operating costs and expenses or otherwise refunded to the U.S. Department of Health and Human Services or the various state and local agencies as of March 31, 2022, totaled approximately $9 million and are reflected within accrued liabilities-other in the condensed consolidated balance sheet.

Commenting on the results, Tim L. Hingtgen, chief executive officer of Community Health Systems, Inc., said, “We experienced the largest COVID surge to date during the first quarter, which negatively impacted net operating revenues, labor expense, and length of stay during the quarter. The Company’s leadership teams and healthcare providers continued their remarkable efforts – providing safe, quality care while at the same time managing through a challenging environment. As COVID case counts subsided, our operational and financial performance significantly improved during the month of March, as patient volumes returned and COVID-related expenses moderated. Moving through the second quarter and the remainder of the year, we anticipate contract labor rates to remain elevated, however, we expect our operational momentum to continue, as we anticipate capturing deferred healthcare demand, benefitting from recent strategic investments, and continuing the execution of the Company’s margin improvement program.”

Financial and statistical data for 2022 and 2021 presented in this press release includes the operating results of divested or closed businesses for the periods prior to the consummation of the respective divestiture or closing. Same-store operating results exclude businesses divested or closed in 2021.

Information About Non-GAAP Financial Measures

This press release presents Adjusted EBITDA, a non-GAAP financial measure, which is EBITDA adjusted to add back net income attributable to noncontrolling interests and to exclude loss (gain) from early extinguishment of debt, impairment and (gain) loss on sale of businesses, gain on sale of equity interests in Macon Healthcare, LLC, expense incurred in the fourth quarter of 2020 related to the settlement of certain professional liability claims for which the third-party insurers’ obligation to insure the Company against the underlying loss was being litigated along with income during the fourth quarter of 2021 associated with the settlement of such litigation for the recovery of amounts covered by such third-party insurance policies, expense related to employee termination benefits and other restructuring charges, and expense from settlement and fair value adjustments on the contingent value right agreement liability related to the Health Management Associates, Inc. (“HMA”) legal proceedings and related legal expenses. For information regarding why the Company believes Adjusted EBITDA provides useful information to investors, and for a reconciliation of Adjusted EBITDA to net loss attributable to Community Health Systems, Inc. stockholders, see footnote (c) to the Financial Highlights, Financial Statements and Selected Operating Data below.

Additionally, this press release presents adjusted net income attributable to Community Health Systems, Inc. stockholders per share (diluted), a non-GAAP financial measure, to reflect the impact on net loss attributable to Community Health Systems, Inc. stockholders per share (diluted) from the selected items used in the calculation of Adjusted EBITDA. For information regarding why the Company believes this non-GAAP financial measure provides useful information to investors, and for a reconciliation of this non-GAAP financial measure to net loss attributable to Community Health Systems, Inc. stockholders per share (diluted), see footnote (e) to the Financial Highlights, Financial Statements and Selected Operating Data below.

The non-GAAP financial measures set forth above are not measurements of financial performance under U.S. GAAP, and should not be considered in isolation or as a substitute for any financial measure calculated in accordance with U.S. GAAP. Additionally, the calculation of these non-GAAP financial measures may not be comparable to similarly titled measures disclosed by other companies.

Included on pages 13, 14, 15, 16 and 17 of this press release are tables setting forth the Company’s 2022 updated annual earnings guidance. The 2022 guidance is based on the Company’s historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time as more specifically discussed below.

Community Health Systems, Inc. is one of the largest publicly traded providers of healthcare services in the United States and a leading operator of general acute care hospitals and outpatient facilities in communities across the country. The Company, through its subsidiaries, owns or leases 83 affiliated hospitals in 16 states with an aggregate of approximately 13,000 licensed beds.

The Company’s headquarters are located in Franklin, Tennessee, a suburb south of Nashville. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.” More information about the Company can be found on its website at www.chs.net.

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. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will continue to be available for approximately 30 days. Copies of this press release and conference call slide show, as well as the Company’s Current Report on Form 8-K (including this press release), will be available on the Company’s website at www.chs.net.