[February 18, 2014]

Community Health Systems, Inc. Announces Fourth Quarter 2013 Results with Net Operating Revenues of $3.2 Billion

Community Health Systems, Inc. (NYSE: CYH) (the "Company") today announced financial and operating results for the three months and year ended December 31, 2013.

Net operating revenues for the three months ended December 31, 2013, totaled $3.2 billion, a 1.4 percent decrease compared with $3.3 billion for the same period in 2012. Income from continuing operations decreased to $52.3 million for the three months ended December 31, 2013, compared with $85.6 million for the same period in 2012. Both income from continuing operations and net income attributable to Community Health Systems, Inc. common stockholders were $0.30 per share (diluted) for the three months ended December 31, 2013, compared with $0.69 per share (diluted) for the same period in 2012. The results for the three months ended December 31, 2013, include $0.02 per share (diluted) of reserves related to the settlement of claims arising from the government's investigation into the Company's short-stay hospital admissions, a $0.12 per share (diluted) loss from the impairment of certain long-lived assets, and $0.05 per share (diluted) of expenses related to the acquisition of Health Management Associates, Inc. ("HMA"). Excluding these items, both income from continuing operations and net income attributable to Community Health Systems, Inc. common stockholders were $0.49 per share (diluted) for the three months ended December 31, 2013. Weighted-average shares outstanding (diluted) were 94.7 million for the three months ended December 31, 2013, and 90.8 million for the three months ended December 31, 2012.

Adjusted EBITDA for the three months ended December 31, 2013, was $441.8 million compared with $481.9 million for the same period in 2012, representing an 8.3 percent decrease. Excluding the $3.5 million of reserves related to certain legal matters and $8.8 million of expenses related to the HMA acquisition, Adjusted EBITDA was $454.1 million for the three months ended December 31, 2013. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations, loss from early extinguishment of debt, impairment of long-lived assets and net income attributable to non-controlling interests. The Company uses Adjusted EBITDA as a measure of liquidity. A reconciliation of Adjusted EBITDA to net cash provided by operating activities is included in the attached footnotes.

The consolidated and same-store operating results for the three months ended December 31, 2013, reflect a 10.5 percent decrease in total admissions and a 6.7 percent decrease in total adjusted admissions compared with the same period in 2012.

Net operating revenues for the year ended December 31, 2013, totaled $13.00 billion, a 0.2 percent decrease compared with $13.03 billion for the same period in 2012. Income from continuing operations decreased to $217.3 million for the year ended December 31, 2013, compared with $346.3 million for the same period in 2012. Both income from continuing operations and net income attributable to Community Health Systems, Inc. common stockholders were $1.51 per share (diluted) for the year ended December 31, 2013, compared with $2.96 per share (diluted) for the same period in 2012. The results for the year ended December 31, 2013, include $0.67 per share (diluted) of reserves related to the settlement of claims arising from the government's investigation into the Company's short-stay hospital admissions, $0.09 per share (diluted) of expenses related to the acquisition of HMA, a $0.12 per share (diluted) loss from the impairment of certain long-lived assets, and a $0.01 per share (diluted) loss from the early extinguishment of debt.

Excluding these items, both income from continuing operations and net income attributable to Community Health Systems, Inc. common stockholders were $2.40 per share (diluted) for the year ended December 31, 2013. Weighted-average shares outstanding (diluted) were 93.8 million for the year ended December 31, 2013, and 89.8 million for the year ended December 31, 2012.

Adjusted EBITDA for the year ended December 31, 2013, was $1.73 billion compared with $1.98 billion for the same period in 2012, representing a 12.8 percent decrease. Excluding the $101.5 million reserve for the settlement of claims arising from the government's investigation into the Company's short-stay hospital admissions and $14.1 million of expenses related to the HMA acquisition, Adjusted EBITDA was $1.84 billion for the year ended December 31, 2013. A reconciliation of Adjusted EBITDA to net cash provided by operating activities is included in the attached footnotes.

The consolidated operating results for the year ended December 31, 2013, reflect a 6.7 percent decrease in total admissions and a 4.0 percent decrease in total adjusted admissions compared with the same period in 2012. On a same-store basis, admissions decreased 7.2 percent while adjusted admissions decreased 4.6 percent compared with the same period in 2012. On a same-store basis, net operating revenues decreased 0.2 percent compared with the same period in 2012.

Commenting on the results, Wayne T. Smith, chairman and chief executive officer of Community Health Systems, Inc., said, "Our financial and operating results for the fourth quarter reflect a continuation of the challenging operating environment for health care providers over the past year. As we previously announced, weakness in volume, combined with higher bad debts and a less favorable payor mix, affected our operating revenues during the fourth quarter. However, we have continued to focus on our cost management and strategic initiatives to efficiently manage our operations in this challenging environment, and we are pleased with the progress being made across our hospital network."

On January 27, 2014, the Company completed its acquisition of HMA (formerly NYSE: HMA). Under the terms of the transaction, the Company acquired each issued and outstanding share of the common stock of HMA for $10.50 in cash, 0.06942 of a share of the Company's common stock, and a Contingent Value Right ("CVR"), which could yield additional cash consideration of up to $1.00 per CVR, depending on the outcome of certain litigation matters. Pursuant to an agreement with the Federal Trade Commission relating to the acquisition, the Company is required to divest two acute care facilities and related outpatient businesses that were acquired upon the acquisition of HMA: Riverview Regional Medical Center, a 281-bed hospital located in Gadsden, Alabama, and Carolina Pines Regional Medical Center, a 116-bed hospital in Hartsville, South Carolina.

Included on pages 15 and 16 of this press release are tables setting forth the Company's 2014 annual earnings guidance. The 2014 guidance is based on the Company's historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time.

Located in the Nashville, Tennessee, suburb of Franklin, Community Health Systems, Inc. is one of the largest publicly-traded hospital companies in the United States and a leading operator of general acute-care hospitals in non-urban and mid-size markets throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 206 hospitals in 29 states with an aggregate of approximately 30,900 licensed beds. Its hospitals offer a broad range of inpatient and surgical services, outpatient treatment and skilled nursing care.

Community Health Systems, Inc. will hold a conference call on Wednesday, February 19, 2014, at 10:00 a.m. Central, 11:00 a.m. Eastern, to review financial and operating results for the fourth quarter ended December 31, 2013. 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. 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 will continue to be available through March 19, 2014. Copies of the Company's current report on Form 8-K (including this press release) and conference call slide show will be available on the Company's website at www.chs.net.

Regulation FD Disclosure

The following tables set forth selected information concerning the Company's projected consolidated operating results for the year ending December 31, 2014. These projections update selected preliminary guidance provided on January 6, 2014, and are based on the Company's historical operating performance, current trends and other assumptions that the Company believes are reasonable at this time. The 2014 guidance should be considered in conjunction with the assumptions included herein. See page 17 for a list of factors that could affect the future results of the Company or the healthcare industry generally.

The following is provided as guidance to analysts and investors:

The following assumptions were used in developing the 2014 guidance provided above:

• The Company's projection excludes the following:
  • Payments related to the contingent value rights issued in connection with the HMA acquisition;
  • Future losses on the early extinguishment of debt;
  • Impairment of long-lived assets;
  • Resolution of government investigations or other significant legal settlements;
  • Transaction costs and other expenses incurred in connection with the acquisition of HMA;
  • Gains or losses from conforming accounting adjustments between CHS and HMA; and
  • Other significant gains or losses that neither relate to the ordinary course of our business nor reflect our underlying business performance.
• The 2014 projections include the results of operations from the acquisition of HMA effective January 27, 2014.
• Excluded from these projections are two hospitals required to be divested as part of receiving regulatory approval from the Federal Trade Commission, one hospital being sold as a result of the exercise of a right of first refusal and one hospital for which HMA had entered into a definitive agreement to sell prior to the Company's acquisition of HMA.
• The 2014 projections assume completing three to four additional targeted hospital acquisitions, of those currently in process.

Other assumptions used in the above guidance:

• Benefits to Adjusted EBITDA from Healthcare Reform in 2014 of 0.5% to 0.8% of net operating revenues
• Achievement of acquisition synergies related to the HMA acquisition of approximately $100 million during the first year of operations.
• Health Information Technology (HITECH) electronic health records incentive reimbursement of approximately 1.0% to 1.3% of net operating revenues for the year ended December 31, 2014. For the first quarter ending March 31, 2014, HITECH incentive reimbursement is projected to be approximately $30 million.
• Continuation and approval of the California hospital provider fee program for 2014.
• Same-store hospital annual adjusted admissions growth does not take into account service closures and weather-related or other unusual events.
• Expressed as a percentage of net operating revenues, depreciation and amortization of approximately 6.2% to 6.5% for 2014, an increase over 2013 primarily relating to the investments being made in information systems technology and the acquisition of HMA; however, the adjustment to fair market value of the acquired HMA assets remains subject to finalization, therefore depreciation and amortization may vary accordingly. Additionally, this is a fixed cost and the percentages may vary as revenue varies. Such amounts exclude the possible impact of any future hospital fixed asset impairments.
• Interest expense, expressed as a percentage of net operating revenues, of approximately 5.0% to 5.2%; however, interest expense is a fixed cost and percentages may vary as revenue varies. Total fixed rate debt, including swaps, is expected to average approximately 60% to 70% of total debt during 2014.
• Expressed as a percentage of net operating revenues, equity in earnings of unconsolidated affiliates of approximately 0.2% to 0.3% for 2014.
• Expressed as a percentage of net operating revenues, net income attributable to noncontrolling interests of approximately 0.6% to 0.8% for 2014.
• Expressed as a percentage of income from continuing operations before income taxes, provision for income tax of approximately 29.0% to 32.0% for 2014.
• Capital expenditures are projected as follows (in millions):

• Net cash provided by operating activities is projected as follows (in millions):

• Weighted average shares outstanding are projected to be approximately 113 million to 115 million for 2014 and have been adjusted to include the estimated dilutive impact from "in-the-money" stock options and restricted shares.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995 that involve risk and uncertainties. All statements in this press release other than statements of historical fact, including statements regarding projections, expected operating results, and other events that depend upon or refer to future events or conditions or that include words such as "expects," anticipates," "intends," "plans," "believes," "estimates," "thinks," and similar expressions, are forward-looking statements. Although the Company believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant economic and competitive uncertainties and contingencies, which are difficult or impossible to predict accurately and are beyond the control of the Company. Accordingly, the Company cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. A number of factors could affect the future results of the Company or the healthcare industry generally and could cause the Company's expected results to differ materially from those expressed in this press release.

These factors include, among other things:

• general economic and business conditions, both nationally and in the regions in which we operate;
• implementation and effect of adopted and potential federal and state healthcare legislation;
• risks associated with our substantial indebtedness, leverage, and debt service obligations;
• demographic changes;
• changes in, or the failure to comply with, governmental regulations;
• potential adverse impact of known and unknown government investigations, audits, and Federal and State False Claims Act litigation and other legal proceedings;
• our ability, where appropriate, to enter into and maintain managed care provider arrangements and the terms of these arrangements;
• changes in, or the failure to comply with, managed care provider contracts, which could result in, among other things, disputes and changes in reimbursements, both prospectively and retroactively;
• changes in inpatient or outpatient Medicare and Medicaid payment levels;
• increases in the amount and risk of collectability of patient accounts receivable;
• increases in wages as a result of inflation or competition for highly technical positions and rising supply costs due to market pressure from pharmaceutical companies and new product releases;
• liabilities and other claims asserted against us, including self-insured malpractice claims;
• competition;
• our ability to attract and retain, at reasonable employment costs, qualified personnel, key management, physicians, nurses and other health care workers;
• trends toward treatment of patients in less acute or specialty healthcare settings, including ambulatory surgery centers or specialty hospitals;
• changes in medical or other technology;
• changes in U.S. generally accepted accounting principles;
• the availability and terms of capital to fund additional acquisitions or replacement facilities;
• our ability to successfully make acquisitions or complete divestitures;
• our ability to successfully integrate any acquired hospitals, including those of HMA, or to recognize expected synergies from acquisitions;
• the impact of the acquisition of HMA on third-party relationships;
• our ability to obtain adequate levels of general and professional liability insurance;
• timeliness of reimbursement payments received under government programs; and
• the other risk factors set forth in our public filings with the Securities and Exchange Commission.

The consolidated operating results for the three months and year ended December 31, 2013, are not necessarily indicative of the results that may be experienced for any such future period or for any future year. The Company cautions that the projections for calendar year 2014 set forth in this press release are given as of the date hereof based on currently available information. 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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