Community Health Systems (CYH) RBC Capital Markets Global Healthcare Conference 2026 summary

Market and volume trends

• Indiana DPP approved by CMS, expected to benefit financials once details are finalized.

• Q1 saw a decline in same-store adjusted admissions and inpatient admissions, with softness in commercial insurance volumes.

• Diagnostic and imaging tests increased in Q1, expected to drive downstream admissions and surgeries in H2.

• Orthopedic surgeries accounted for most of the Q1 surgery decline, but higher MRI rates suggest a rebound.

• Anticipated volume recovery in H2 as patients meet deductibles and economic pressures ease.

Labor and physician strategy

• Average hourly wage growth slowed to 2.3% in Q1, with contract labor down 11%.

• Labor costs expected to remain slightly above pre-COVID levels, with some premium pay as volumes return.

• Net addition of 30 physicians in Q1, with a focus on improving physician experience and reducing turnover.

• Professional fees rose 11% year-over-year, mainly due to anesthesia and radiology contracts.

• Hospitalist staffing is now 80% insourced, reducing previous pain points.

Managed care and reimbursement

• Aggressive managed care practices, especially pre-authorization denials, continue to impact volumes.

• Physician advisor group overturns over 50% of denied pre-authorization claims.

• AI tools are used for appeals and documentation, but payer denials and delays persist.

• Independent physicians face similar pre-authorization challenges, slowing patient flow.