The rating on Brentwood, Tenn.-based Community Health Systems Inc. reflects the industry challenges that the company faces, particularly the uncertain future reimbursement it will receive from the government and other third-party payors. This uncertainty is somewhat mitigated by Community Health's diversified hospital portfolio. The company's total debt outstanding was $1.7 billion as of June 30, 2006. Community Health operates 76 hospitals in 22 states, primarily in small non-urban markets with stable or growing populations. The company acquires weak, underperforming hospitals and attempts to build revenues by enhancing physician recruitment and broadening services. Community Health is expected to continue to expand, adding several hospitals per year, net of any hospital dispositions. This strategy is somewhat risky because of the difficulty in
