We re-initiated a position in Community Health Systems, Inc. (CYH, Financial), one of the largest publicly traded hospital companies in the U.S. and a leading operator of general acute care hospitals in non-urban and mid-sized markets. We believe Community is an extremely well-run company that will benefit from changes in U.S. healthcare delivery driven by healthcare reform, aging demographics and a shift in reimbursement to favor those that can deliver high quality patient outcomes at lower cost. An active and experienced acquirer in a sector that should experience accelerating consolidation, we believe Community's recently formed strategic alliance with the Cleveland Clinic makes it an even more attractive partner for struggling not-for profit hospitals that face continued capital needs, greater regulatory challenges and the need for more sophisticated, costly IT systems. Community is well represented on the new healthcare exchanges and we think should experience higher volumes and lower bad debt under the reform. (Susan Robbins)
From Ron Baron’s Baron Funds third quarter 2013 letter.
From Ron Baron’s Baron Funds third quarter 2013 letter.
