Franklin, Tenn.-based Community Health Systems saw an operating income of $450 million (14.5% margin) in the fourth quarter ended Dec. 31, 2025, up from a $279 million operating income (8.5% margin) in the same quarter last year.
CHS reported a net income of $110 million in the fourth quarter, compared to a $70 million loss in the same quarter last year.
“We are pleased to deliver financial and operating results consistent with our expectations, and to enter 2026 with solid momentum and an improved financial position,” Kevin Hammons, director and CEO of CHS, said in a Feb. 18 news release. “In addition, our clinical staff and leaders are rallying behind our shared vision — to make the healthcare experience exceptional for our patients, our communities, and each other — and we are putting our values into action.”
Here are six things to know:
1. Total revenue for CHS was $3.1 billion in the fourth quarter, down from $3.3 billion over the prior year period. Total expenses were $2.7 billion, down from $3 billion in the same quarter last year.
2. CHS saw an operating income of $1.5 billion (11.9% margin) for the year ended Dec. 31, 2025, up from $542 million (4.3% margin) during the previous year, driven in part by hospital divestiture gains. The organization’s total revenue decreased to $12.5 billion and total expenses were $11 billion in 2025. Net income was $509 million in 2025, up from a $516 million loss in 2024.
3. Long-term debt for CHS was $10.4 billion in 2025, down from $11.4 billion in 2024.
4. In 2025, CHS divested: 50% of its ownership in two hospitals, one that was completed Feb. 1 and the other on May 1; 80% ownership interest in one hospital June 30; and four other hospitals, with two completed on March 1, one on April 1 and one on Dec. 1, 2025.
5. The health system sold select ambulatory outreach laboratory assets to LabCorp for $194 million in December. It also received an additional $91 million in October related to its August 2024 divestiture of Tennova Healthcare-Cleveland.
6. In 2026, CHS sold three Pennsylvania hospitals to Tenor Health Foundation for $33 million cash plus a $15 million promissory note, which closed Feb. 1, 2026. It also sold Tennova Healthcare-Clarksville (Tenn.) to Nashville, Tenn.-based Vanderbilt University Medical Center for $623 million on Feb. 1, 2026, and signed a deal in January 2026 to sell Crestwood Medical Center in Huntsville, Ala., to Huntsville Hospital Health System for $450 million.
