COMMUNITY HEALTH SYSTEMS INC Segments Disclosure
14. SEGMENT INFORMATION
The Company is principally engaged in the provision of healthcare services, including a broad range of general and specialized hospital healthcare services and outpatient services. Services are delivered within hospitals that the Company owns or operates as well as related healthcare entities that exist to support and supplement services provided in their associated hospital, including, for example, physician practices, urgent care centers, freestanding emergency departments, occupations medicine clinics, imaging centers, cancer centers and ambulatory surgery centers.
The Company has a reportable segment represented by hospital operations which includes its general acute care hospitals and related healthcare entities that provide inpatient and outpatient healthcare services. The Company defined its single reportable segment consistent with the manner in which internally reported financial information is regularly reviewed by the Company’s who is the Company’s chief operating decision maker (“CODM”). Resources are allocated and financial performance is assessed on a consolidated basis. The individual serving as the Company’s CODM changed effective October 1, 2025, in connection with the appointment of Kevin J. Hammons as the Company’s interim Chief Executive Officer on such date (Mr. Hammons was subsequently appointed Chief Executive Officer effective on December 10, 2025).
The CODM does not review assets at a different level or category than the amounts disclosed in the consolidated balance sheets.
The CODM uses net income (loss), as presented in the consolidated statements of income (loss), to assess performance and allocate resources. Net income (loss) is used in the annual budgeting process as well as throughout the period when projecting or forecasting quarterly and full-year performance. The CODM considers budget-to-actual and actual versus prior period (prior month, prior year, etc.) variances on a periodic basis as a means of assessing performance. The following segment information, including significant segment expenses, is presented in millions:
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|
Year Ended December 31, |
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|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Net operating revenues |
|
$ |
12,485 |
|
|
$ |
12,634 |
|
|
$ |
12,490 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Salaries and benefits |
|
|
5,412 |
|
|
|
5,418 |
|
|
|
5,415 |
|
Supplies |
|
|
1,864 |
|
|
|
1,946 |
|
|
|
1,993 |
|
Medical specialist fees |
|
|
648 |
|
|
|
640 |
|
|
|
606 |
|
Other segment items |
|
|
3,053 |
|
|
|
3,301 |
|
|
|
3,101 |
|
Depreciation and amortization |
|
|
426 |
|
|
|
486 |
|
|
|
505 |
|
Interest expense |
|
|
872 |
|
|
|
863 |
|
|
|
832 |
|
Interest income |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(2 |
) |
Impairment and (gain) loss on sale of businesses, net |
|
|
(406 |
) |
|
|
301 |
|
|
|
(87 |
) |
Gain from early extinguishment of debt |
|
|
(97 |
) |
|
|
(25 |
) |
|
|
(72 |
) |
Equity in earnings of unconsolidated affiliates |
|
|
(9 |
) |
|
|
(10 |
) |
|
|
(8 |
) |
Provision for income taxes |
|
|
48 |
|
|
|
79 |
|
|
|
191 |
|
Net income (loss) |
|
$ |
676 |
|
|
$ |
(362 |
) |
|
$ |
16 |
|
Other segment items include various purchased services and other operating expenses including, for example, lease cost and rent expense, contract labor, repairs and maintenance, utilities, professional liability claims expense and software maintenance fees.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 17, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.