The speculative-grade ratings on Community Health Systems Inc. reflect in its diversified nonurban portfolio the company's solid market position and its improved financial profile, offset by its moderately aggressive acquisition activity and ongoing uncertainty regarding future reimbursement. Brentwood, Tenn.-based Community Health is an owner and operator of 59 hospitals in 20 states, primarily in small, nonurban markets with stable or growing population bases of between 20,000 and 100,000. The company maintains strong market positions, as 86% of its hospitals are the sole hospital provider in the community. The company maintains an aggressive, but disciplined acquisition approach focused on the potential for physician recruitment and service enhancement. Despite rapid growth over the past few years, the company's use of both debt
