Community Health Systems (CYH) operates in non-urban areas and select urban areas throughout the US.
According to the US Census Bureau, 19.3% of the total US population resides in non-urban areas. Also, out of the total hospitals in the US, 40% are located in these areas. Most of these hospitals are non-profit hospitals.
Community Health Systems is one of the few for-profit hospitals, along with LifePoint Hospitals (LPNT), concentrating on these non-urban markets and providing a broad range of healthcare services. These services include general and specialty surgery, internal medicine, general acute care, emergency room, and critical care.
You can reduce your exposure to a single market by investing in the Healthcare Select Sector SPDR ETF (XLV).
Major geographical markets
The major geographical markets of Community Health Systems in terms of revenues are Texas, Pennsylvania, and Indiana.
The graph above shows that all the major markets have increased in revenue concentration from 2011 to 2013. The share of Texas in consolidated operating revenues has increased from 13.1% in 2011 to 14.8% in 2013. In the same period, Pennsylvania increased its share from 11.5% to 13.0% and Indiana from 10.3% to 10.5%. You can attribute these changes to several acquisitions that the company undertook, such as Tomball Regional Hospital in Texas and Memorial Health Systems in Pennsylvania.
Community Health Systems underwent a mega-merger with Health Management Associates in January 2014. After this, the company will also earn substantial revenues from its hospitals in Florida and Tennessee.