UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

July 30, 2007

 

COMMUNITY HEALTH SYSTEMS, INC.

(Exact name of Registrant as specified in charter)

Delaware		001-15925		13-3893191
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

4000 Meridian Boulevard
Franklin, Tennessee 37067
(Address of principal executive offices)
Registrant’s telephone number, including area code: (615) 465-7000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240 .14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

          The information contained in this Form 8-K (including the exhibits hereto) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

ITEM 2.02 Results of Operations and Financial Condition

          On July 30, 2007, Community Health Systems, Inc. (the “Company”) announced operating results for the quarter ended June 30, 2007. A copy of the press release making this announcement is attached as Exhibit 99.1 to this Form 8-K.

ITEM 7.01 Regulation FD Disclosure

          Attached as Exhibit 99.2 are unaudited condensed consolidated statements of operations and selected operating data for Triad Hospitals, Inc., (“Triad”), which are being provided to supplement the information that will be discussed on the Company’s conference call scheduled for July 31, 2007. Certain unaudited financial information relating to Triad for the three months and six months ended June 30, 2007, has not been and is not required to be filed by Triad with the Securities and Exchange Commission (the “SEC”) because on July 25, 2007 following the Company’s acquisition of Triad, Triad filed with the SEC a Form 15 — 12B which suspended Triad’s duty to file such information. This information has been prepared and reviewed by Triad’s senior management in place prior to that acquisition.

ITEM 9.01 Financial Statements and Exhibits

   Exhibits

   The following exhibits are furnished herewith:

	99.1		Community Health Systems, Inc. Press Release dated July 30, 2007.
	99.2		Unaudited condensed consolidated statements of operations and selected operating data for Triad Hospitals, Inc., for the three and the six months ended June 30, 2007 and 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

Index to Exhibits

Exhibit Number		Description
99.1		Press Release dated July 30, 2007
99.2		Regulation FD Disclosure — Triad Hospitals, Inc. Financial and Operating Data

Exhibit Number
99.1

Investor Contact:		W. Larry Cash
		Executive Vice President
		and Chief Financial Officer
		(615) 465-7000

COMMUNITY HEALTH SYSTEMS, INC. ANNOUNCES
SECOND QUARTER 2007 RESULTS WITH NET OPERATING REVENUES UP 17.7%

FRANKLIN, TN. (July 30, 2007) — Community Health Systems, Inc. (NYSE: CYH) today announced financial and operating results for the three and six months ended June 30, 2007.

          Net operating revenues for the quarter ended June 30, 2007, totaled $1.249 billion, a 17.7% increase compared with $1.061 billion for the same period last year. Income from continuing operations and net income increased 2.7% to $53.8 million, or $0.57 per share (diluted), on 94.6 million weighted average shares outstanding for the quarter ended June 30, 2007, compared with $52.4 million, or $0.54 per share (diluted), on 96.9 million weighted average shares outstanding for the same period last year.

          Adjusted EBITDA for the second quarter of 2007 was $172.5 million, compared with $156.7 million for the same period last year, representing a 10.1% increase. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations and minority interest in earnings. The Company uses adjusted EBITDA as a measure of liquidity. Net cash provided by operating activities for the second quarter of 2007 was $95.6 million, compared with $116.2 million for the same period last year.

          The consolidated financial results for the quarter ended June 30, 2007, reflect a 10.9% increase in total admissions compared with the same period last year. This increase is attributable to hospitals acquired during 2007 and 2006. On a same-store basis, admissions decreased 0.2% and adjusted admissions decreased 0.4%, compared with the same period last year. On a same-store basis, net operating revenues increased 4.5%, compared with the same period last year.

          Net operating revenues for the six months ended June 30, 2007, totaled $2.453 billion, a 17.5% increase compared with $2.088 billion for the same period last year. Income from continuing operations decreased 1.4% to $108.1 million compared with $109.6 million for the same period last year. As a result of a decrease in the number of weighted average shares outstanding on a per share (diluted) basis, income from continuing operations increased to $1.14 per share (diluted) on 94.4 million weighted average shares outstanding compared to $1.13 per share (diluted) on 97.5 million weighted average shares outstanding for the same period last year. Net income increased to $108.1 million, or $1.14 per share (diluted), for the six months ended June 30, 2007, compared with $106.4 million, or $1.09 per share (diluted), for the same period last year.

          Adjusted EBITDA for the six months ended June 30, 2007, was $342.7 million, compared with $315.2 million for the same period last year, representing an 8.7% increase. Net cash provided by operating activities for the six months ended June 30, 2007, was $216.0 million, compared with $207.0 million for the same period last year.

CYH Announces Second Quarter 2007 Results
Page 2
July 30, 2007

          The consolidated financial results for the six months ended June 30, 2007, reflect an 11.8% increase in total admissions compared with the same period last year. This increase is primarily attributable to hospitals acquired during 2007 and 2006. On a same-store basis, admissions increased 0.4% and adjusted admissions increased 0.4%, compared with the same period last year. On a same-store basis, net operating revenues increased 5.3%, compared with the same period last year.

          “Community Health Systems delivered a solid financial and operating performance for the second quarter of 2007,” said Wayne T. Smith, chairman, president and chief executive officer of Community Health Systems, Inc. “These results reflect consistent execution of our centralized and standardized operating strategy and our ongoing focus on quality care. This strategy has enabled us to continue to be successful in meeting our objectives in a challenging, constantly evolving healthcare environment.”

          On July 25, 2007, the Company completed its acquisition of Triad Hospitals, Inc. (“Triad”) (former NYSE: TRI). Pursuant to the merger agreement under which the acquisition was completed, shareholders of Triad received $54 in cash per share of common stock, or approximately $6.968 billion in the aggregate, including the assumption of approximately $1.702 billion of existing indebtedness of Triad. Triad stock ceased to trade on the New York Stock Exchange effective at the close of business on July 25, 2007.

          In connection with the consummation of the merger, the Company obtained $7.215 billion of senior secured financing under a new credit facility and its wholly-owned subsidiary, CHS/Community Health Systems, Inc. issued $3.021 billion aggregate principal amount ($3.000 billion, net of discount) of 8.875% senior notes due 2015 (the “Notes”) at the closing of the merger. The Company used the net proceeds of $3.000 billion from the Notes offering and the net proceeds from the $6.065 billion of term loan under the new credit facility to pay the consideration under the merger agreement, to repay certain of its indebtedness and indebtedness of Triad, to complete certain related transactions, to pay certain costs and expenses of the transactions and for general corporate uses. A $750.0 million revolving credit facility and a $400.0 million delayed draw term loan facility is available to the Company for working capital and general corporate purposes under the new credit facility. The revolving credit facility will include a subfacility for letters of credit and a swingline subfacility.

          “We are very pleased to complete the acquisition of Triad Hospitals, Inc.,” added Smith. “This transaction marks a significant milestone for the Company, establishing in our view Community Health Systems as the leading publicly traded hospital management company in the United States, with the expertise and scale inherent in this position. We believe this merger represents a significant growth opportunity as we begin to focus on the incremental value of the newly acquired assets. We are very excited about our ability to further expand our reach and geographic scope and look forward to the successful integration of the Triad operations.”

          Effective April 1, 2007, the Company completed the acquisition of Lincoln General Hospital, a 157 bed acute care hospital in Ruston, Louisiana. Ruston is approximately 70 miles east of Shreveport, Louisiana, and is home to both Louisiana Tech University and Grambling State University .

          Effective May 1, 2007, the Company completed the acquisition of Porter Memorial Hospital, a 301 bed acute care hospital located in Valparaiso, Indiana. Hospital campuses are located in Valparaiso and Portage, Indiana, and outpatient medical campuses in Chesterton, Dermotte and Hebron, Indiana. Valparaiso is the county seat of Porter County, and is located 40 miles southeast of Chicago, Illinois, and 40 miles west of South Bend, Indiana.

          Located in Franklin, Tennessee, Community Health Systems, Inc. is a leading operator of general acute care hospitals in non-urban and mid-market communities throughout the country. Through its subsidiaries, the Company currently owns, leases or operates 130 hospitals in 28 states. Its hospitals offer a broad range of inpatient medical and surgical services, outpatient treatment and skilled nursing care. Shares in Community Health Systems, Inc. are traded on the New York Stock Exchange under the symbol “CYH.”

CYH Announces Second Quarter 2007 Results
Page 3
July 30, 2007

          Community Health Systems, Inc. will hold a conference call to discuss this press release on Tuesday, July 31, 2007, at 11:30 a.m. Central, 12:30 p.m. Eastern. Investors will have the opportunity to listen to a live internet broadcast of the conference call by clicking on the Investor Relations link of the Company’s website at www.chs.net, or at www.earnings.com. To listen to the live call, please go to the website at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and continue through August 31, 2007. A copy of the Company’s Form 8-K (including this press release) and conference call slide show will also be available on the Company’s website at www.chs.net.

     Statements contained in this news release regarding expected operating results, acquisition transactions and other events are forward-looking statements that involve risk and uncertainties. Actual future events or results may differ materially from these statements. Readers are referred to the documents filed by Community Health Systems, Inc. with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K and, current reports on Form 8-K and 10-Q. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

CYH Announces Second Quarter 2007 Results
Page 4
July 30, 2007

COMMUNITY HEALTH SYSTEMS, INC.
Financial Highlights
(Unaudited)
(In thousands, except per share amounts)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2007				2006				2007				2006
Net operating revenues		$	1,249,128			$	1,061,054			$	2,453,125			$	2,087,616
Adjusted EBITDA (a)		$	172,549	(b)		$	156,744			$	342,748			$	315,202
Income from continuing operations		$	53,763			$	52,369			$	108,087			$	109,623
Net income		$	53,763			$	52,369			$	108,087			$	106,407
Income from continuing operations per share — basic		$	0.57			$	0.55			$	1.16			$	1.14
Income from continuing operations per share — diluted		$	0.57	(b)		$	0.54			$	1.14			$	1.13
Net income per share — basic		$	0.57			$	0.55			$	1.16			$	1.11
Net income per share — diluted		$	0.57	(b)		$	0.54			$	1.14			$	1.09
Weighted average number of shares outstanding — basic			93,519				95,769				93,373				96,159
Weighted average number of shares outstanding — diluted			94,648				96,870				94,422				97,537
Net cash provided by operating activities		$	95,641			$	116,232			$	215,988			$	207,046

CYH Announces Second Quarter 2007 Results
Page 5
July 30, 2007

COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)

		Three Months Ended
		June 30,
		2007								2006
						% of Net								% of Net
						Operating								Operating
		Amount				Revenue				Amount				Revenue
Net operating revenues		$	1,249,128				100.0	%		$	1,061,054				100.0	%
Operating expenses:
Salaries and benefits			495,085				39.6	%			420,147				39.6	%
Provision for bad debts			148,661				11.9	%			115,704				10.9	%
Supplies			146,033				11.7	%			125,700				11.8	%
Other operating expenses			258,556				20.7	%			219,113				20.7	%
Rent			28,244				2.3	%			23,646				2.2	%
Depreciation and amortization			53,349				4.3	%			47,183				4.5	%
Minority interest in earnings			625				0.0	%			455				0.0	%
Total expenses			1,130,553				90.5	%			951,948				89.7	%
Income from operations			118,575				9.5	%			109,106				10.3	%
Interest expense, net			31,155				2.5	%			23,870				2.3	%
Income from continuing operations before income taxes			87,420				7.0	%			85,236				8.0	%
Provision for income taxes			33,657				2.7	%			32,867				3.1	%
Net income		$	53,763				4.3	%		$	52,369				4.9	%
Net income per share — basic		$	0.57							$	0.55
Net income per share — diluted		$	0.57							$	0.54
Weighted average number of shares outstanding:
Basic			93,519								95,769
Diluted			94,648								96,870
Weighted average number of shares outstanding — basic			93,519								95,769
Add effect of dilutive securities:
Stock awards			1,129								1,101
Weighted average number of shares outstanding — diluted			94,648								96,870

- MORE -

CYH Announces Second Quarter 2007 Results
Page 6
July 30, 2007

COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except per share amounts)

		Six Months Ended
		June 30,
		2007								2006
						% of Net								% of Net
						Operating								Operating
		Amount				Revenue				Amount				Revenue
Net operating revenues		$	2,453,125				100.0	%		$	2,087,616				100.0	%
Operating expenses:
Salaries and benefits			981,421				40.0	%			827,815				39.7	%
Provision for bad debts			284,360				11.6	%			223,295				10.7	%
Supplies			286,541				11.7	%			248,520				11.9	%
Other operating expenses			503,815				20.5	%			426,156				20.4	%
Rent			54,240				2.2	%			46,628				2.2	%
Depreciation and amortization			104,619				4.3	%			89,689				4.3	%
Minority interest in earnings			818				0.0	%			1,068				0.0	%
Total expenses			2,215,814				90.3	%			1,863,171				89.2	%
Income from operations			237,311				9.7	%			224,445				10.8	%
Interest expense, net			61,559				2.5	%			45,657				2.2	%
Income from continuing operations before income taxes			175,752				7.2	%			178,788				8.6	%
Provision for income taxes			67,665				2.8	%			69,165				3.3	%
Income from continuing operations			108,087				4.4	%			109,623				5.3	%
Discontinued operations, net of taxes:
Loss from operations			—				0.0	%			(657	)			-0.1	%
Loss on sale of hospitals			—				0.0	%			(2,559	)			-0.1	%
Loss on discontinued operations			—				0.0	%			(3,216	)			-0.2	%
Net income		$	108,087				4.4	%		$	106,407				5.1	%
Income from continuing operations per share-basic		$	1.16							$	1.14
Income from continuing operations per share-diluted		$	1.14							$	1.13
Net income per share — basic		$	1.16							$	1.11
Net income per share — diluted		$	1.14							$	1.09
Weighted average number of shares outstanding:
Basic			93,373								96,159
Diluted			94,422								97,537
Net Income per share calculation:
Net income		$	108,087							$	106,407
Add — Convertible notes interest, net of taxes			—								135
Adjusted net income		$	108,087							$	106,542
Weighted average number of shares outstanding — basic			93,373								96,159
Add effect of dilutive securities:
Stock awards			1,049								1,085
Convertible notes			—								293
Weighted average number of shares outstanding — diluted			94,422								97,537

- MORE -

CYH Announces Second Quarter 2007 Results
Page 7
July 30, 2007

COMMUNITY HEALTH SYSTEMS, INC.
Selected Operating Data
(Unaudited)
($ in thousands)

		For the Three Months Ended June 30,
		Consolidated												Same-Store
		2007				2006				% Change				2007				2006				% Change
Number of hospitals (at end of period)			79				74								73				73
Licensed beds (at end of period)			9,550				8,546								8,479				8,466
Beds in service (at end of period)			7,777				6,871								6,863				6,796
Admissions			86,739				78,248				10.9	%			77,300				77,425				-0.2	%
Adjusted admissions			163,882				147,223				11.3	%			145,359				145,920				-0.4	%
Patient days			353,474				321,573				9.9	%			314,721				319,014				-1.3	%
Average length of stay (days)			4.1				4.1								4.1				4.1
Occupancy rate (average beds in service)			50.9	%			52.5	%							51.6	%			52.6	%
Net operating revenues		$	1,249,128			$	1,061,054				17.7	%		$	1,102,325			$	1,054,956				4.5	%
Net inpatient revenue as a % of total net operating revenues			48.1	%			49.8	%							48.2	%			49.8	%
Net outpatient revenue as a % of total net operating revenues			50.6	%			48.9	%							50.5	%			48.9	%
Income from operations		$	118,575			$	109,106				8.7	%		$	110,925			$	110,121				0.7	%
Income from operations as a % of net operating revenues			9.5	%			10.3	%							10.1	%			10.4	%
Depreciation and amortization		$	53,349			$	47,183							$	47,903			$	46,822
Minority interest in earnings		$	625			$	455							$	625			$	455
Liquidity Data:
Adjusted EBITDA		$	172,549			$	156,744				10.1	%
Adjusted EBITDA as a % of net operating revenues			13.8	%			14.8	%
Net cash provided by operating activities		$	95,641			$	116,232
Net cash provided by operating activities as a % of net operating revenue			7.7	%			11.0	%

CYH Announces Second Quarter 2007 Results
Page 8
July 30, 2007

COMMUNITY HEALTH SYSTEMS, INC.
Selected Operating Data
(Unaudited)
($ in thousands)

		For the Six Months Ended June 30,
		Consolidated												Same-Store
		2007				2006				% Change				2007				2006				% Change
Number of hospitals (at end of period)			79				74								73				73
Licensed beds (at end of period)			9,550				8,546								8,479				8,466
Beds in service (at end of period)			7,777				6,871								6,863				6,796
Admissions			175,763				157,214				11.8	%			156,330				155,696				0.4	%
Adjusted admissions			326,960				290,305				12.6	%			289,197				288,022				0.4	%
Patient days			717,654				654,822				9.6	%			641,224				649,396				-1.3	%
Average length of stay (days)			4.1				4.2								4.1				4.2
Occupancy rate (average beds in service)			52.8	%			54.5	%							53.5	%			54.7	%
Net operating revenues		$	2,453,125			$	2,087,616				17.5	%		$	2,182,151			$	2,072,549				5.3	%
Net inpatient revenue as a % of total net operating revenues			49.2	%			50.3	%							49.3	%			50.3	%
Net outpatient revenue as a % of total net operating revenues			49.6	%			48.4	%							49.5	%			48.4	%
Income from operations		$	237,311			$	224,445				5.7	%		$	225,635			$	225,266				0.2	%
Income from operations as a % of net operating revenues			9.7	%			10.8	%							10.3	%			10.9	%
Depreciation and amortization		$	104,619			$	89,689							$	93,686			$	88,961
Minority interest in earnings		$	818			$	1,068							$	818			$	1,068
Liquidity Data:
Adjusted EBITDA		$	342,748			$	315,202				8.7	%
Adjusted EBITDA as a % of net operating revenues			14.0	%			15.1	%
Net cash provided by operating activities		$	215,988			$	207,046
Net cash provided by operating activities as a % of net operating revenue			8.8	%			9.9	%

Continuing operating results and statistical data exclude discontinued operations for all periods presented.

CYH Announces Second Quarter 2007 Results
Page 9
July 30, 2007

COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
($ in thousands)

		June 30,				December 31,
		2007				2006
ASSETS
Current assets
Cash and cash equivalents		$	21,357			$	40,566
Patient accounts receivable, net of allowance for doubtful accounts of $498,473 and $478,565 at June 30, 2007 and December 31, 2006, respectively			876,523				773,984
Supplies			121,964				113,320
Deferred income taxes			13,249				13,249
Prepaid expenses and taxes			36,287				32,385
Other current assets			62,933				47,880
Total current assets			1,132,313				1,021,384
Property and equipment			2,809,988				2,630,366
Less accumulated depreciation and amortization			(720,846	)			(643,789	)
Property and equipment, net			2,089,142				1,986,577
Goodwill			1,344,956				1,336,525
Other assets, net			226,700				162,093
Total assets		$	4,793,111			$	4,506,579
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term debt		$	25,757			$	35,396
Accounts payable			257,730				247,747
Current income taxes payable			49,010				7,626
Accrued interest			8,375				7,122
Accrued liabilities			270,152				277,392
Total current liabilities			611,024				575,283
Long-term debt			1,974,240				1,905,781
Deferred income taxes			141,472				141,472
Other long-term liabilities			205,408				160,370
Stockholders’ equity
Preferred stock, $.01 par value per share, 100,000,000 shares authorized; none issued			—				—
Common stock, $.01 par value per share, 300,000,000 shares authorized; 95,881,020 shares issued and 94,905,471 shares outstanding at June 30, 2007 and 95,026,494 shares issued and 94,050,945 shares outstanding at December 31, 2006			959				950
Additional paid-in capital			1,215,321				1,195,947
Treasury stock, at cost, 975,549 shares at June 30, 2007 and December 31, 2006			(6,678	)			(6,678	)
Accumulated other comprehensive income			15,622				5,798
Retained earnings			635,743				527,656
Total stockholders’ equity			1,860,967				1,723,673
Total liabilities and stockholders’ equity		$	4,793,111			$	4,506,579

CYH Announces Second Quarter 2007 Results
Page 10
July 30, 2007

COMMUNITY HEALTH SYSTEMS, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)

		Six Months Ended
		June 30,
		2007				2006
Cash flows from operating activities
Net income		$	108,087			$	106,407
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			104,619				89,689
Minority interest in earnings			818				1,068
Stock-based compensation expense			14,295				8,946
Excess tax benefits relating to stock-based compensation			(2,295	)			(4,588	)
Other non-cash expenses, net			(1,542	)			3,306
Changes in operating assets and liabilities, net of effects of acquisitions and divestitures:
Patient accounts receivable			(47,415	)			(57,961	)
Supplies, prepaid expenses and other current assets			(13,458	)			(93	)
Accounts payable, accrued liabilities and income taxes			46,353				69,988
Other			6,526				(9,716	)
Net cash provided by operating activities			215,988				207,046
Cash flows from investing activities
Acquisitions of facilities and other related equipment			(187,955	)			(178,015	)
Purchases of property and equipment			(108,849	)			(94,194	)
Disposition of hospital and other anciliary operations			12,662				750
Proceeds from sale of equipment			234				74
Increase in other assets			(25,362	)			(24,382	)
Net cash used in investing activities			(309,270	)			(295,767	)
Cash flows from financing activities
Proceeds from exercise of stock options			6,693				8,699
Excess tax benefits relating to stock-based compensation			2,295				4,588
Stock buy-back			—				(137,666	)
Deferred financing costs			(367	)			(16	)
Redemption of convertible notes			—				(128	)
Proceeds from minority investors in joint ventures			1,105				3,060
Redemption of minority investments in joint ventures			(1,369	)			(530	)
Distributions to minority investors in joint ventures			(1,705	)			(1,977	)
Borrowings under credit agreement			132,000				176,000
Repayments of long-term indebtedness			(64,579	)			(43,260	)
Net cash provided by financing activities			74,073				8,770
Net change in cash and cash equivalents			(19,209	)			(79,951	)
Cash and cash equivalents at beginning of period			40,566				104,108
Cash and cash equivalents at end of period		$	21,357			$	24,157

CYH Announces Second Quarter 2007 Results
Page 11
July 30, 2007

Footnotes for Page 4

(a)		EBITDA consists of income before interest, income taxes, and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted to exclude discontinued operations and minority interest in earnings. The Company has from time to time sold minority interests in certain of its subsidiaries or acquired subsidiaries with existing minority interest ownership positions. The Company believes that it is useful to present adjusted EBITDA because it excludes the portion of EBITDA attributable to these third party interests and clarifies for investors the Company’s portion of EBITDA generated by continuing operations. The Company uses adjusted EBITDA as a measure of liquidity. The Company has included this measure because it believes it provides investors with additional information about the Company’s ability to incur and service debt and make capital expenditures. Adjusted EBITDA is the basis for a key component in the determination of the Company’s compliance with some of the covenants under the Company’s senior secured credit facility, as well as to determine the interest rate and commitment fee payable under the senior secured credit facility.
		Adjusted EBITDA is not a measurement of financial performance or liquidity under generally accepted accounting principles. It should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating, investing or financing activities, or any other measure calculated in accordance with generally accepted accounting principles. The items excluded from adjusted EBITDA are significant components in understanding and evaluating financial performance and liquidity. This calculation of adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
		The following table reconciles adjusted EBITDA, as defined, to net cash provided by operating activities as derived directly from the consolidated financial statements for the three months and six months ended June 30, 2007 and 2006 (in thousands):

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2007				2006				2007				2006
Adjusted EBITDA		$	172,549			$	156,744			$	342,748			$	315,202
Interest expense, net			(31,155	)			(23,870	)			(61,559	)			(45,657	)
Provision for income taxes			(33,657	)			(32,867	)			(67,665	)			(69,165	)
Loss from operations of hospital sold, net of taxes			—				—				—				(657	)
Other non-cash expenses, net			4,755				5,026				10,459				3,727
Net changes in operating assets and liabilities, net of effects of acquisitions			(16,851	)			11,199				(7,995	)			3,596
Net cash provided by operating activities		$	95,641			$	116,232			$	215,988			$	207,046

(b)		Includes additional stock-based compensation expense of approximately $2.7 million, or $0.01 per diluted share and $5.3 million, or $0.03 per diluted share for the three months and six months ended June 30, 2007, respectively, representing an additional incremental year of stock-based compensation expense as no restricted stock or options were granted in 2004.

Exhibit Number
99.2

Regulation FD Disclosure

The following unaudited condensed consolidated statements of operations and selected operating data for Triad Hospitals, Inc., (“Triad”), are being provided to supplement the information that will be discussed on the Community Health Systems, Inc., conference call scheduled for July 31, 2007. Certain unaudited financial information relating to Triad for the three months and six months ended June 30, 2007, has not been and is not required to be filed by Triad with the SEC because on July 25, 2007, following the Community Health Systems’ acquisition of Triad, Triad filed with the Securities Exchange Commission (the “SEC”) a Form 15 — 12B which suspended Triad’s duty to file such information. This information has been prepared and reviewed by Triad’s senior management in place prior to that acquisition and had been prepared on a basis consistent with the December 31, 2006 audited financial statements of Triad.

Triad Hospitals, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands)

		For the Three Months Ended June 30,
		2007								2006
						% of								% of
		Amount				Revenue				Amount				Revenue
Revenues		$	1,485,176				100.0	%		$	1,378,067				100.0	%
Salaries and benefits, including share-based compensation expense of $7,900 and $6,900 for the three months ended June 30, 2007 and 2006			615,569				41.5	%			553,853				40.2	%
Reimbursable expenses			11,924				0.8	%			12,206				0.9	%
Supplies			251,507				16.9	%			234,538				17.0	%
Other operating expenses (a)			306,008				20.6	%			272,353				19.8	%
Provision for doubtful accounts			155,489				10.5	%			128,209				9.3	%
Depreciation			60,143				4.0	%			55,527				4.0	%
Amortization			1,895				0.1	%			2,109				0.2	%
Interest expense, net			23,813				1.6	%			23,773				1.7	%
ESOP expense			3,976				0.3	%			3,056				0.2	%
(Gain) loss on sales of assets			(55	)			0.0	%			(531	)			0.0	%
Total operating expenses			1,430,269				96.3	%			1,285,093				93.3	%
Income from continuing operations before minority interest, equity in earnings and income tax provision			54,907				3.7	%			92,974				6.7	%
Minority interest in earnings of consolidated entities			(5,991	)			-0.4	%			(5,106	)			-0.3	%
Equity in earnings of unconsolidated affiliates			9,481				0.6	%			9,790				0.7	%
Income from continuing operations before income tax provision			58,397				3.9	%			97,658				7.1	%
Income tax provision			(28,219	)			-1.9	%			(37,632	)			-2.7	%
Income from continuing operations			30,178				2.0	%			60,026				4.4	%
Income from discontinued operations, net of tax			212				0.0	%			51				0.0	%
Net income		$	30,390				2.0	%		$	60,077				4.4	%

Exhibit Number
99.2 Continued

Triad Hospitals, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands)

		For the Six Months Ended June 30,
		2007								2006
						% of								% of
		Amount				Revenue				Amount				Revenue
Revenues		$	2,975,910				100.0	%		$	2,747,265				100.0	%
Salaries and benefits, including share-based compensation expense of $16,000 and $13,700 for the six months ended June 30, 2007 and 2006			1,230,591				41.4	%			1,111,382				40.5	%
Reimbursable expenses			24,582				0.8	%			25,954				0.9	%
Supplies			505,762				17.0	%			471,750				17.2	%
Other operating expenses (a)			610,284				20.5	%			525,430				19.1	%
Provision for doubtful accounts			303,564				10.2	%			248,874				9.1	%
Depreciation			119,363				4.0	%			108,781				4.0	%
Amortization			3,876				0.1	%			3,597				0.1	%
Interest expense, net			48,225				1.6	%			47,414				1.7	%
ESOP expense			7,504				0.3	%			6,099				0.2	%
(Gain) loss on sales of assets			388				0.0	%			(614	)			0.0	%
Total operating expenses			2,854,139				95.9	%			2,548,667				92.8	%
Income from continuing operations before minority interest, equity in earnings and income tax provision			121,771				4.1	%			198,598				7.2	%
Minority interest in earnings of consolidated entities			(12,831	)			-0.4	%			(9,984	)			-0.4	%
Equity in earnings of unconsolidated affiliates			23,608				0.8	%			19,824				0.8	%
Income from continuing operations before income tax provision			132,548				4.5	%			208,438				7.6	%
Income tax provision			(60,710	)			-2.1	%			(80,552	)			-2.9	%
Income from continuing operations			71,838				2.4	%			127,886				4.7	%
Income (loss) from discontinued operations, net of tax			(384	)			0.0	%			15,279				0.5	%
Net income		$	71,454				2.4	%		$	143,165				5.2	%

Exhibit Number
99.2 Continued

Triad Hosptials, Inc.
Selected Operating Data
(Unaudited)
($ in thousands)

		For the Three Months Ended June 30,												For the Six Months Ended June 30,
		2007				2006				% Change				2007				2006				% Change
Consolidated Data:
Number of hospitals (at end of period)(b)			51				49								51				49
Admissions			87,843				85,818				2.4	%			179,717				174,344				3.1	%
Adjusted admissions			154,283				147,448				4.6	%			310,098				295,935				4.8	%
Adjusted EBITDA(a)(c)		$	154,160			$	186,698				-17.4	%		$	324,735			$	383,700				-15.4	%
Adjusted EBITDA as a % of revenues			10.4	%			13.5	%							10.9	%			14.0	%
Net cash provided by operating activities		$	111,536			$	36,700							$	215,779			$	132,900
Same-Store Data(d):
Revenue		$	1,443,345			$	1,378,067				4.8	%		$	2,823,977			$	2,680,332				5.4	%
Admissions			86,237				85,818				0.5	%			171,112				168,749				1.4	%
Adjusted admissions			150,241				147,448				1.9	%			292,337				285,523				2.4	%