Community Health Systems (CYH) Oppenheimer 35th Annual Health Care MedTech and Services Conference summary

Business update and outlook

• Entering 2025 with positive momentum and more favorable conditions than recent years.

• Anticipates additional DPP funding, though timing is delayed due to regulatory processes.

• Recent and upcoming divestitures are expected to support material deleveraging in 2025.

Volume, admissions, and capacity

• Forecasts 2%-3% volume growth, with strong inpatient admissions and added bed capacity in key markets.

• Late and heavy flu season in Q1 boosted volume but disrupted higher acuity services; expects higher acuity to rebound in Q2.

Managed care and rate environment

• Managed care rates have risen about 100 basis points above historical levels due to inflation.

• Expects 4%-6% average rate increases in 2025, with similar trends likely in 2026.