Core Viewpoint - Community Health Systems, Inc. (CYH) is taking significant steps to improve its financial position through the divestment of its 180-bed Crestwood Medical Center for $450 million, which exceeds its current market value of $433.6 million [1][2]. Financial Position - The transaction is expected to close in the second quarter of 2026, marking a crucial move for CYH, which operates general acute care hospitals and outpatient facilities [2]. - As of the end of the third quarter, CYH had cash and cash equivalents of $123 million and long-term debt of $10.6 billion, resulting in a net debt to EBITDA ratio of 7.6, significantly higher than the industry average of 3.9 [3]. - The high debt burden has led to increased interest expenses, with expectations of a 2% rise in net interest expense for 2025 [3]. Impact of Divestments - The latest divestment, along with previous sales, is anticipated to substantially reduce CYH's debt burden, leading to interest savings and improved profit margins [4]. - Previous divestments include the sale of ambulatory outreach laboratory services for approximately $194 million and an agreement to sell 80% ownership interests in two Tennessee joint ventures for $600 million [4]. Stock Performance - Over the past year, CYH's shares have declined by about 3.5%, underperforming the industry, which has seen a gain of 6.9% [5]. Zacks Rank - CYH currently holds a Zacks Rank of 3 (Hold), while other stocks in the medical sector, such as CoDiagnostics, Pediatrix Medical Group, and Universal Health Services, have better rankings [6].