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CHS Stock Sinks to New Low

By Steven Porter  
   July 02, 2018

The company's stock price has declined 94% since its peak three years ago.

After closing at an all-time low of $3.32 on Friday, shares for Community Health Systems slipped even further on Monday, falling as low as $3.12 in mid-day trading.

The company's stock price has declined about 94% since its peak at $52.71 three years ago. The hospital operator, based in Franklin, Tennessee, has struggled financially in recent years, selling off hospitals as it grapples with a high debt burden.

The latest slump in CHS shares comes after the company offered more than $1 billion in senior secured notes Thursday, which CHS plans to use to pay some of its outstanding loans and related fees, according to documents filed with the Securities & Exchange Commission.

The sale of the notes, which is expected to be completed this Friday, comes after S&P Global Ratings lowered its corporate credit rating for CHS last spring.

The company has quarreled with Quorum Health Corporation, which it spun off in 2016, and been sued by Microsoft for alleged copyright infringement.

CHS Board Chairman and CEO Wayne T. Smith, meanwhile, has seen his pay sink alongside the company's stock price. Smith earned neither a bonus nor incentive pay last year.

Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.

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