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 the company's highly leveraged debt leverage and ongoing industry prospects for uncertain third-party reimbursement, significant bad debt expense, and relatively weak industry patient volume trends. Community's diversified hospital portfolio, good local market positions, and management's experience operating a large hospital portfolio lessen downside business risk compared with peer companies with a more concentrated portfolio. Community historically has grown by acquiring weak, underperforming hospitals and building revenues by enhancing physician
