Supplemental Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2011

Supplemental Financial Information [Abstract]

Condensed Consolidating Balance Sheet (unaudited)

Condensed Consolidating Balance Sheet

September 30, 2011

	Parent Guarantor			Issuer			Other Guarantors			Non- Guarantors		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	163,693		$	102,619	$	—		$	266,312
Patient accounts receivable, net of allowance for doubtful accounts		—			—			1,015,730			757,395		—			1,773,125
Supplies		—			—			207,562			128,900		—			336,462
Deferred income taxes		115,819			—			—			—		—			115,819
Prepaid expenses and taxes		—			156			88,033			30,884		—			119,073
Other current assets		—			10,000			139,327			76,410		—			225,737
Total current assets		115,819			10,156			1,614,345			1,096,208		—			2,836,528
Intercompany receivable		1,168,828			9,347,366			1,634,809			1,672,003		(13,823,006	)		—
Property and equipment, net		—			—			4,148,382			2,425,558		—			6,573,940
Goodwill		—			—			2,381,712			1,851,201		—			4,232,913
Other assets, net of accumulated amortization		—			110,799			483,044			610,698		—			1,204,541
Net investment in subsidiaries		1,710,955			6,065,149			2,467,348			—		(10,243,452	)		—
Total assets	$	2,995,602		$	15,533,470		$	12,729,640		$	7,655,668	$	(24,066,458	)	$	14,847,922
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	—		$	49,954		$	7,907		$	3,205	$	—		$	61,066
Accounts payable		—			24			448,540			187,763		—			636,327
Current income tax payable		17,705			—			—			—		—			17,705
Deferred income taxes		8,882			—			—			—		—			8,882
Accrued interest		—			83,872			110			2		—			83,984
Accrued liabilities		7,580			567			607,283			279,766		—			895,196
Total current liabilities		34,167			134,417			1,063,840			470,736		—			1,703,160
Long-term debt		—			8,696,988			46,081			25,608		—			8,768,677
Intercompany payable		—			4,697,847			9,206,345			6,072,049		(19,976,241	)		—
Deferred income taxes		608,177			—			—			—		—			608,177
Other long-term liabilities		5,255			293,266			391,206			285,436		—			975,163
Total liabilities		647,599			13,822,518			10,707,472			6,853,829		(19,976,241	)		12,055,177
Redeemable noncontrolling interests in equity of consolidated subsidiaries		—			—			—			383,745		—			383,745
Equity:
Community Health Systems, Inc. stockholders’ equity:
Preferred stock		—			—			—			—		—			—
Common stock		918			—			1			2		(3	)		918
Additional paid-in capital		1,084,415			690,233			734,808			128,911		(1,553,952	)		1,084,415
Treasury stock, at cost		(6,678	)		—			—			—		—			(6,678	)
Accumulated other comprehensive (loss) income		(201,051	)		(201,051	)		(13,313	)		—		214,364			(201,051	)
Retained earnings		1,470,399			1,221,770			1,300,672			228,184		(2,750,626	)		1,470,399
Total Community Health Systems, Inc. stockholders’ equity		2,348,003			1,710,952			2,022,168			357,097		(4,090,217	)		2,348,003
Noncontrolling interests in equity of consolidated subsidiaries		—			—			—			60,997		—			60,997
Total equity		2,348,003			1,710,952			2,022,168			418,094		(4,090,217	)		2,409,000
Total liabilities and equity	$	2,995,602		$	15,533,470		$	12,729,640		$	7,655,668	$	(24,066,458	)	$	14,847,922

Condensed Consolidating Balance Sheet

December 31, 2010

	Parent Guarantor			Issuer			Other Guarantors			Non- Guarantors		Eliminations			Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—		$	212,992		$	86,177	$	—		$	299,169
Patient accounts receivable, net of allowance for doubtful accounts		—			—			968,290			746,252		—			1,714,542
Supplies		—			—			195,131			133,983		—			329,114
Deferred income taxes		115,819			—			—			—		—			115,819
Prepaid expenses and taxes		118,464			116			88,749			11,889		—			219,218
Other current assets		—			41			139,628			53,662		—			193,331
Total current assets		234,283			157			1,604,790			1,031,963		—			2,871,193
Intercompany receivable		1,079,295			9,002,158			1,418,776			1,370,494		(12,870,723	)		—
Property and equipment, net		—			—			3,880,653			2,443,784		—			6,324,437
Goodwill		—			—			2,331,452			1,818,795		—			4,150,247
Other assets, net of accumulated amortization		—			131,352			466,289			754,605		—			1,352,246
Net investment in subsidiaries		1,510,062			5,315,935			2,055,423			—		(8,881,420	)		—
Total assets	$	2,823,640		$	14,449,602		$	11,757,383		$	7,419,641	$	(21,752,143	)	$	14,698,123
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	—		$	49,953		$	11,069		$	2,117	$	—		$	63,139
Accounts payable		—			—			362,357			163,981		—			526,338
Current income tax payable		—			—			—			—		—			—
Deferred income taxes		8,882			—			—			—		—			8,882
Accrued interest		—			146,297			116			2		—			146,415
Accrued liabilities		7,595			567			568,845			320,259		—			897,266
Total current liabilities		16,477			196,817			942,387			486,359		—			1,642,040
Long-term debt		—			8,734,473			44,831			29,078		—			8,808,382
Intercompany payable		—			3,667,726			8,554,015			5,903,193		(18,124,934	)		—
Deferred income taxes		608,177			—			—			—		—			608,177
Other long-term liabilities		9,522			340,526			372,236			279,391		—			1,001,675
Total liabilities		634,176			12,939,542			9,913,469			6,698,021		(18,124,934	)		12,060,274
Redeemable noncontrolling interests in equity of consolidated subsidiaries		—			—			—			387,472		—			387,472
Equity:
Community Health Systems, Inc. stockholders’ equity:
Preferred stock		—			—			—			—		—			—
Common stock		936			—			1			2		(3	)		936
Additional paid-in capital		1,126,751			640,683			683,340			100,550		(1,424,573	)		1,126,751
Treasury stock, at cost		(6,678	)		—			—			—		—			(6,678	)
Accumulated other comprehensive (loss) income		(230,927	)		(230,927	)		(12,990	)		—		243,917			(230,927	)
Retained earnings		1,299,382			1,100,304			1,173,563			172,683		(2,446,550	)		1,299,382
Total Community Health Systems, Inc. stockholders’ equity		2,189,464			1,510,060			1,843,914			273,235		(3,627,209	)		2,189,464
Noncontrolling interests in equity of consolidated subsidiaries		—			—			—			60,913		—			60,913
Total equity		2,189,464			1,510,060			1,843,914			334,148		(3,627,209	)		2,250,377
Total liabilities and equity	$	2,823,640		$	14,449,602		$	11,757,383		$	7,419,641	$	(21,752,143	)	$	14,698,123

Condensed consolidating statement of income (unaudited)

Condensed Consolidating Statement of Income

Three Months Ended September 30, 2011

	Parent Guarantor			Issuer			Other Guarantors			Non- Guarantors			Eliminations			Consolidated
	(In thousands)
Net operating revenues	$	—		$	—		$	1,990,666		$	1,445,334		$	—		$	3,436,000
Operating costs and expenses:
Salaries and benefits		—			—			765,198			627,953			—			1,393,151
Provision for bad debts		—			—			262,124			188,172			—			450,296
Supplies		—			—			263,255			195,891			—			459,146
Other operating expenses		—			—			362,132			261,476			—			623,608
Rent		—			—			30,665			33,816			—			64,481
Depreciation and amortization		—			—			97,821			63,694			—			161,515
Total operating costs and expenses		—			—			1,781,195			1,371,002			—			3,152,197
Income from operations		—			—			209,471			74,332			—			283,803
Interest expense, net		—			15,484			133,859			10,137			—			159,480
Equity in earnings of unconsolidated affiliates		(74,304	)		(68,064	)		(40,407	)		—			174,581			(8,194	)
Income from continuing operations before income taxes		74,304			52,580			116,019			64,195			(174,581	)		132,517
Provision for (benefit from) income taxes		—			(21,724	)		41,883			16,558			—			36,717
Income from continuing operations		74,304			74,304			74,136			47,637			(174,581	)		95,800
Discontinued operations, net of taxes:
Income (loss) from operations of entities sold and held for sale		—			—			(5,437	)		2,334			—			(3,103	)
Impairment of hospitals sold and held for sale		—			—			—			—			—			—
Loss on sale		—			—			—			(66	)		—			(66	)
Loss from discontinued operations, net of taxes		—			—			(5,437	)		2,268			—			(3,169	)
Net income		74,304			74,304			68,699			49,905			(174,581	)		92,631
Less: Net income attributable to noncontrolling interests		—			—			—			18,327			—			18,327
Net income attributable to Community Health Systems, Inc.	$	74,304		$	74,304		$	68,699		$	31,578		$	(174,581	)	$	74,304

Condensed Consolidating Statement of Income

Three Months Ended September 30, 2010

	Parent Guarantor			Issuer			Other Guarantors			Non- Guarantors		Eliminations			Consolidated
	(In thousands)
Net operating revenues	$	—		$	—		$	1,816,782		$	1,343,041	$	—		$	3,159,823
Operating costs and expenses:
Salaries and benefits		—			—			686,701			580,402		—			1,267,103
Provision for bad debts		—			—			225,631			161,881		—			387,512
Supplies		—			—			245,593			188,846		—			434,439
Other operating expenses		—			—			317,299			259,350		—			576,649
Rent		—			—			29,416			32,757		—			62,173
Depreciation and amortization		—			—			86,787			60,502		—			147,289
Total operating costs and expenses		—			—			1,591,427			1,283,738		—			2,875,165
Income from operations		—			—			225,355			59,303		—			284,658
Interest expense, net		—			30,632			123,648			8,588		—			162,868
Equity in earnings of unconsolidated affiliates		(70,401	)		(78,900	)		(37,584	)		—		177,347			(9,538	)
Income from continuing operations before income taxes		70,401			48,268			139,291			50,715		(177,347	)		131,328
Provision for (benefit from) income taxes		—			(22,133	)		51,259			14,193		—			43,319
Income from continuing operations		70,401			70,401			88,032			36,522		(177,347	)		88,009
Discontinued operations, net of taxes:
Income (loss) from operations of entities sold and held for sale		—			—			(9,132	)		5,977		—			(3,155	)
Impairment of hospitals sold and held for sale		—			—			—			—		—			—
Loss on sale		—			—			—			—		—			—
Loss from discontinued operations, net of taxes		—			—			(9,132	)		5,977		—			(3,155	)
Net income		70,401			70,401			78,900			42,499		(177,347	)		84,854
Less: Net income attributable to noncontrolling interests		—			—			—			14,453		—			14,453
Net income attributable to Community Health Systems, Inc.	$	70,401		$	70,401		$	78,900		$	28,046	$	(177,347	)	$	70,401

Condensed Consolidating Statement of Income

Nine Months Ended September 30, 2011

	Parent Guarantor			Issuer			Other Guarantors			Non- Guarantors			Eliminations			Consolidated
	(In thousands)
Net operating revenues	$	—		$	—		$	5,923,622		$	4,300,259		$	—		$	10,223,881
Operating costs and expenses:
Salaries and benefits		—			—			2,275,499			1,881,115			—			4,156,614
Provision for bad debts		—			—			761,557			521,710			—			1,283,267
Supplies		—			—			789,166			577,076			—			1,366,242
Other operating expenses		—			—			1,100,935			792,203			—			1,893,138
Rent		—			—			92,272			97,810			—			190,082
Depreciation and amortization		—			—			287,240			193,806			—			481,046
Total operating costs and expenses		—			—			5,306,669			4,063,720			—			9,370,389
Income from operations		—			—			616,953			236,539			—			853,492
Interest expense, net		—			65,799			378,598			41,531			—			485,928
Equity in earnings of unconsolidated affiliates		(171,017	)		(182,668	)		(118,116	)		—			433,456			(38,345	)
Income from continuing operations before income taxes		171,017			116,869			356,471			195,008			(433,456	)		405,909
Provision for (benefit from) income taxes		—			(54,148	)		128,686			51,092			—			125,630
Income from continuing operations		171,017			171,017			227,785			143,916			(433,456	)		280,279
Discontinued operations, net of taxes:
Income (loss) from operations of entities sold and held for sale		—			—			(1,278	)		(3,268	)		—			(4,546	)
Impairment of hospitals sold and held for sale		—			—			(47,930	)		—			—			(47,930	)
Loss on sale		—			—			—			(3,300	)		—			(3,300	)
Loss from discontinued operations, net of taxes		—			—			(49,208	)		(6,568	)		—			(55,776	)
Net income		171,017			171,017			178,577			137,348			(433,456	)		224,503
Less: Net income attributable to noncontrolling interests		—			—			—			53,486			—			53,486
Net income attributable to Community Health Systems, Inc.	$	171,017		$	171,017		$	178,577		$	83,862		$	(433,456	)	$	171,017

Condensed Consolidating Statement of Income

Nine Months Ended September 30, 2010

	Parent Guarantor			Issuer			Other Guarantors			Non- Guarantors			Eliminations			Consolidated
	(In thousands)
Net operating revenues	$	—		$	—		$	5,362,911		$	3,946,170		$	—		$	9,309,081
Operating costs and expenses:
Salaries and benefits		—			—			2,028,716			1,716,627			—			3,745,343
Provision for bad debts		—			—			668,161			452,854			—			1,121,015
Supplies		—			—			728,225			558,900			—			1,287,125
Other operating expenses		—			—			930,729			762,501			—			1,693,230
Rent		—			—			87,669			97,412			—			185,081
Depreciation and amortization		—			—			257,392			183,579			—			440,971
Total operating costs and expenses		—			—			4,700,892			3,771,873			—			8,472,765
Income from operations		—			—			662,019			174,297			—			836,316
Interest expense, net		—			88,079			358,942			36,029			—			483,050
Equity in earnings of unconsolidated affiliates		(210,473	)		(245,197	)		(88,435	)		—			510,997			(33,108	)
Income from continuing operations before income taxes		210,473			157,118			391,512			138,268			(510,997	)		386,374
Provision for (benefit from) income taxes		—			(53,355	)		144,076			34,908			—			125,629
Income from continuing operations		210,473			210,473			247,436			103,360			(510,997	)		260,745
Discontinued operations, net of taxes:
Income (loss) from operations of entities sold and held for sale		—			—			(2,901	)		(1,652	)		—			(4,553	)
Impairment of hospitals sold and held for sale		—			—			—			—			—			—
Loss on sale		—			—			—			—			—			—
Loss from discontinued operations, net of taxes		—			—			(2,901	)		(1,652	)		—			(4,553	)
Net income		210,473			210,473			244,535			101,708			(510,997	)		256,192
Less: Net income attributable to noncontrolling interests		—			—			—			45,719			—			45,719
Net income attributable to Community Health Systems, Inc.	$	210,473		$	210,473		$	244,535		$	55,989		$	(510,997	)	$	210,473

Condensed consolidating statement of cash flows (unaudited)

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2011

	Parent Guarantor			Issuer			Other Guarantors			Non- Guarantors			Eliminations		Consolidated
	(In thousands)
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(23,970	)	$	(120,269	)	$	595,670		$	368,804		$	—	$	820,235
Cash flows from investing activities:
Acquisitions of facilities and other related equipment		—			—			(163,397	)		(46,054	)		—		(209,451	)
Purchases of property and equipment		—			—			(295,298	)		(237,547	)		—		(532,845	)
Proceeds from disposition of hospitals and other ancillary operations		—			—			—			172,578			—		172,578
Proceeds from sale of property and equipment		—			—			1,269			7,982			—		9,251
Increase in other non-operating assets		—			—			(90,009	)		(40,971	)		—		(130,980	)
Net cash used in investing activities		—			—			(547,435	)		(144,012	)		—		(691,447	)
Cash flows from financing activities:
Proceeds from exercise of stock options		18,880			—			—			—			—		18,880
Deferred financing costs		—			(100	)		—			—			—		(100	)
Excess tax benefit relating to stock-based compensation		4,616			—			—			—			—		4,616
Stock buy-back		(85,790	)		—			—			—			—		(85,790	)
Proceeds from noncontrolling investors in joint ventures		—			—			—			1,229			—		1,229
Redemption of noncontrolling investments in joint ventures		—			—			—			(4,784	)		—		(4,784	)
Distributions to noncontrolling investors in joint ventures		—			—			—			(49,928	)		—		(49,928	)
Changes in intercompany balances with affiliates, net		86,264			157,854			(90,312	)		(153,806	)		—		—
Borrowings under credit agreement		—			83,000			—			—			—		83,000
Repayments of long-term indebtedness		—			(120,485	)		(7,222	)		(1,061	)		—		(128,768	)
Net cash provided by (used in) financing activities		23,970			120,269			(97,534	)		(208,350	)		—		(161,645	)
Net change in cash and cash equivalents		—			—			(49,299	)		16,442			—		(32,857	)
Cash and cash equivalents at beginning of period		—			—			212,992			86,177			—		299,169
Cash and cash equivalents at end of period	$	—		$	—		$	163,693		$	102,619		$	—	$	266,312

Condensed Consolidating Statement of Cash Flows

Nine Months Ended September 30, 2010

	Parent Guarantor			Issuer			Other Guarantors			Non- Guarantors			Eliminations		Consolidated
	(In thousands)
Cash flows from operating activities:
Net cash (used in) provided by operating activities	$	(150,750	)	$	(101,498	)	$	804,039		$	346,586		$	—	$	898,377
Cash flows from investing activities:
Acquisitions of facilities and other related equipment		—			—			(39,140	)		(28,401	)		—		(67,541	)
Purchases of property and equipment		—			—			(211,023	)		(170,830	)		—		(381,853	)
Proceeds from disposition of hospitals and other ancillary operations		—			—			—			—			—		—
Proceeds from sale of property and equipment		—			—			2,398			447			—		2,845
Increase in other non-operating assets		—			—			(64,177	)		(34,325	)		—		(98,502	)
Net cash used in investing activities		—			—			(311,942	)		(233,109	)		—		(545,051	)
Cash flows from financing activities:
Proceeds from exercise of stock options		53,839			—			—			—			—		53,839
Deferred financing costs		—			—			—			—			—		—
Excess tax benefit relating to stock-based compensation		10,109			—			—			—			—		10,109
Stock buy-back		(107,932	)		—			—			—			—		(107,932	)
Proceeds from noncontrolling investors in joint ventures		—			—			—			5,155			—		5,155
Redemption of noncontrolling investments in joint ventures		—			—			—			(2,467	)		—		(2,467	)
Distributions to noncontrolling investors in joint ventures		—			—			—			(41,870	)		—		(41,870	)
Changes in intercompany balances with affiliates, net		194,734			134,102			(246,860	)		(81,976	)		—		—
Borrowings under credit agreement		—			—			—			—			—		—
Repayments of long-term indebtedness		—			(32,604	)		(12,788	)		(1,560	)		—		(46,952	)
Net cash provided by (used in) financing activities		150,750			101,498			(259,648	)		(122,718	)		—		(130,118	)
Net change in cash and cash equivalents		—			—			232,449			(9,241	)		—		223,208
Cash and cash equivalents at beginning of period		—			—			238,709			105,832			—		344,541
Cash and cash equivalents at end of period	$	—		$	—		$	471,158		$	96,591		$	—	$	567,749