NEW YORK (Standard&Poor's) June 23, 2004--Standard&Poor's Ratings Services said today that the ratings and outlook on hospital owner and operator Community Health Systems Inc. (BB-/Stable/--) will not change as a result of the company's definitive agreement to acquire Phoenixville Hospital from the University of Pennsylvania Health System (A/Stable/--). The acquisition is consistent with Community's aggressive but disciplined acquisition strategy. Community focuses on the possibilities of physician recruitment and service enhancement in the hospitals it acquires. The rating reflects the risks of Community's aggressive growth strategies and capital spending in tandem with a likely moderation in reimbursement rates for hospital services.
