Largest nonurban U.S. hospital provider; Good position in small rural markets; and Diversified hospital portfolio. Highly leveraged; Significant bad debt expenses; Vulnerable to legislative and economic changes in key markets; and Subject to potential reduction in government reimbursement for services. The speculative-grade rating on Franklin, Tenn.-based Community Health Systems Inc. reflects its significant debt leverage as a result of its July 2007 debt-financed acquisition of Triad Hospitals Inc., and industry challenges that the company faces, such as uncertain third-party reimbursement, significant bad debt expense, and relatively weak patient volume trends. The company also faces the risk of integrating a large number of hospitals into its existing operations. These factors are somewhat mitigated by Community's diversified hospital portfolio and management's experience
