Community Health Systems (CYH) investor relations material

Business update and strategic priorities

• Achieved positive free cash flow in 2025 and further reduced leverage, with optimism for continued improvement into 2026.

• Completed additional divestitures, positioning for stronger cash flow and lower leverage.

• New leadership is focused on improving quality, patient and physician experience, and employee satisfaction to drive financial performance.

• Progress on these priorities is expected to enhance market share and financial results.

Financial guidance and key assumptions

• 2026 guidance assumes a 5% net revenue increase and 4% EBITDA growth, adjusted for divestitures and one-time items.

• Guidance excludes potential benefits from unapproved State Directed Payment programs and the Rural Health Transformation Program.

• Volume growth is expected to be low single digits, with consumer confidence as a key variable.

• Revenue growth is primarily driven by rate increases, with Medicare inpatient up 4% and managed care/commercial contracts up 3%-5%.

Market trends and regulatory impacts

• Economic conditions and high-deductible plans are influencing patient decisions, especially for elective care.

• Healthcare exchange business represents less than 5% of volumes and revenues, with a projected $20-$30 million EBITDA impact from expiring premium tax credits.

• State Directed Payment programs in Georgia and Florida are expected to provide $10-$15 million annual EBITDA impact each once finalized.

• Medicaid cuts under OB3 are minimal in 2027 but could reach $250-$300 million annually by 2028-2038 if unchanged.

• Rural Health Transformation Fund distributions are pending, with states developing allocation plans.