CHS Posts $509M Net Income as Hospital Sales Boost 2025 Results

The healthcare company saw improved operating margins and reduced long-term debt.

Published on Feb. 24, 2026

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Community Health Systems (CHS), a healthcare company based in Franklin, Tennessee, reported a net income of $509 million in 2025, a significant turnaround from the $516 million loss in 2024. This was driven by hospital divestitures and improved operating margins, with the company's operating income reaching $1.5 billion (11.9% margin) for the year.

Why it matters

CHS's financial turnaround highlights the company's strategic shift towards divesting underperforming hospitals and focusing on improving operational efficiency. This comes as the healthcare industry continues to face challenges, making it crucial for providers to optimize their financial performance and position themselves for long-term sustainability.

The details

In the fourth quarter of 2025, CHS reported an operating income of $450 million (14.5% margin), up from $279 million (8.5% margin) in the same quarter the previous year. The company's total revenue for the fourth quarter was $3.1 billion, down from $3.3 billion in the prior year period, while total expenses decreased from $3 billion to $2.7 billion. For the full year 2025, CHS's total revenue was $12.5 billion, and total expenses were $11 billion.

  • In 2025, CHS divested: 50% of its ownership in two hospitals, one that was completed on Feb. 1 and the other on May 1; 80% ownership interest in one hospital on June 30; and four other hospitals, with two completed on March 1, one on April 1 and one on Dec. 1, 2025.
  • In December 2025, CHS sold select ambulatory outreach laboratory assets to LabCorp for $194 million.
  • In October 2025, CHS received an additional $91 million related to its August 2024 divestiture of Tennova Healthcare-Cleveland.
  • On Feb. 1, 2026, CHS sold three Pennsylvania hospitals to Tenor Health Foundation for $33 million cash plus a $15 million promissory note.
  • On Feb. 1, 2026, CHS sold Tennova Healthcare-Clarksville (Tenn.) to Vanderbilt University Medical Center for $623 million.

The players

Community Health Systems (CHS)

A healthcare company based in Franklin, Tennessee, that operates hospitals and other healthcare facilities across the United States.

Kevin Hammons

The director and CEO of Community Health Systems.

LabCorp

A clinical laboratory company that acquired select ambulatory outreach laboratory assets from CHS in December 2025.

Tenor Health Foundation

A healthcare organization that acquired three Pennsylvania hospitals from CHS on Feb. 1, 2026.

Vanderbilt University Medical Center

A healthcare system based in Nashville, Tennessee, that acquired Tennova Healthcare-Clarksville from CHS on Feb. 1, 2026.

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What they’re saying

“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 (CHS News Release)

What’s next

CHS is expected to continue its strategic divestment of underperforming hospitals and focus on improving operational efficiency to further strengthen its financial position in 2026 and beyond.

The takeaway

CHS's financial turnaround in 2025, driven by hospital divestitures and improved operating margins, demonstrates the company's ability to adapt to the changing healthcare landscape and position itself for long-term sustainability. This highlights the importance for healthcare providers to continuously evaluate their portfolio and optimize their operations to remain competitive in the industry.