Community Health Systems Inc. (NYSE:CYH) is one of the country’s largest hospital operators, with 31,000 beds in 29 states, primarily located in small and midsized markets. Shares were weak on concerns that Affordable Care Act tailwinds are largely over and that comps will be more difficult going forward. We maintain a positive view as we believe the spinoff of Quorum Health will create shareholder value, synergies from the merger with HMA will exceed initial guidance, more states will expand Medicaid, and deleveraging will accelerate. (Susan Robbins)
From Baron Growth Fund's third quarter 2015 letter.
