Community Health Systems CEO to retire, interim leadership named

FRANKLIN, Tenn. - Community Health Systems, Inc. (NYSE:CYH), which according to InvestingPro data has shown strong returns of over 28% year-to-date and appears undervalued based on current Fair Value estimates, announced Wednesday that Chief Executive Officer Tim Hingtgen will retire effective September 30, 2025, with current President and Chief Financial Officer Kevin Hammons stepping in as interim CEO.

The company also named Jason K. Johnson, currently senior vice president and chief accounting officer, to serve as interim chief financial officer following Hingtgen’s departure.

Hingtgen, who has been with CHS for nearly 18 years and has served as CEO since January 2021, cited personal reasons for his retirement decision, including spending more time with family. The company indicated he is expected to enter into a consulting agreement to continue advising management after his retirement.

"My decision to retire this year is for personal reasons, including a desire to spend more time with my family and to pursue a few dreams I have for my life," Hingtgen said in the press release statement.

Hammons, who will take over as interim CEO, has been with the company for more than 28 years and was appointed CFO in January 2020. Johnson, the incoming interim CFO, joined CHS in 2012 and has served as chief accounting officer since 2019.

Wayne T. Smith, chairman of the CHS board of directors, expressed confidence in the leadership transition, stating the board believes Hammons and Johnson "will excel in their interim roles."

Community Health Systems operates 70 affiliated hospitals with more than 10,000 beds across 14 states, along with over 1,000 other healthcare facilities including physician practices, urgent care centers, and surgery centers. The healthcare provider generates annual revenue of $12.65 billion and maintains an EBITDA of $1.25 billion. For deeper insights into CYH’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

In other recent news, Community Health Systems reported its Q1 2025 earnings, slightly exceeding expectations with an earnings per share (EPS) of -$0.03 against the anticipated -$0.04. The company’s revenue for the quarter reached $3.16 billion, surpassing the projected $3.1 billion. Additionally, Community Health Systems has entered into an agreement to sell select ambulatory outreach laboratory services to Labcorp for $195 million in cash. This transaction includes outreach laboratory assets across 13 states but excludes inpatient and emergency department laboratories.

S&P Global Ratings recently upgraded Community Health Systems’ credit rating to ’CCC+’ from ’SD’, citing improvements in operational performance, such as increased adjusted admissions and net revenue per admission. Conversely, the company had previously been downgraded to ’SD’ after repurchasing a significant portion of its senior unsecured notes due 2028, which was considered a selective default by S&P Global Ratings. The rating agency plans to restore the credit rating to ’CCC+’ with a negative outlook. These developments highlight Community Health Systems’ ongoing efforts to manage its financial obligations and operational performance.

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