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 financial risk profile tied to acquisition activity and ongoing industry prospects for uncertain third-party reimbursement, significant bad debt expense, and relatively weak patient volume. Community's diversified hospital portfolio and well-established positions in many of its local markets contribute to its fair business risk profile compared with the lower business risk profiles of several rated peer companies. Community's hospitals are the only provider of inpatient acute
