Board Dossier

Kevin Hammons

CEO, Community Health Systems · FAH Director

High

Threat Assessment

RoleFAH Director (2026)
OrganizationCommunity Health Systems (NYSE: CYH)
Revenue~$12.3B (FY2024)
Hospitals~70 hospitals, 1,000+ sites, 14 states
Current Debt$11.5B
Credit RatingS&P CCC+ Outlook Negative; Fitch B- RR2
Threat LevelHigh

Role and Organization

Community Health Systems operates approximately 70 hospitals and 1,000+ sites across 14 states with FY2024 revenue of approximately $12.3 billion. Hammons joined the FAH board in 2026 as CHS’s representative following his appointment as permanent CEO on December 10, 2025, after a period as interim CEO. He has been at CHS for 28+ years. Former Chairman Wayne T. Smith, who architected CHS’s expansion strategy, remains on the board as Chairman.

Patient Debt Lawsuits

Between March 2020 and May 2021, CHS filed over 19,000 lawsuits against individual patients for unpaid medical bills across 16 states, with significant concentrations in Tennessee, Texas, and Indiana. During the same period, CHS received approximately $705 million in federal pandemic relief through the CARES Act Provider Relief Fund. CHS continued pursuing debt from patients of hospitals it had already divested, retaining the legal right to accounts receivable as part of divestiture terms. The practices prompted inquiry from the House Committee on Oversight and Reform.

Sources: CNN; Fierce Healthcare (2021)

DOJ Settlement

Case: United States v. Carlisle HMA, LLC (Case No. 1:18-cr-00288, D.D.C.)

In September 2018, CHS/HMA paid $262 million to resolve criminal and civil allegations of systemic Medicare fraud. Allegations: ER physicians pressured to admit patients who did not meet inpatient criteria; illegal kickbacks to physicians for referrals. Former HMA CEO Gary Newsome personally paid $3.5 million to settle related allegations in 2019. Five-year Corporate Integrity Agreement with HHS OIG imposed.

Source: DOJ press release (justice.gov)

Data Breach

Between April and June 2014, state-sponsored Chinese hacking group APT 18 compromised the personal data of 6.1 million individuals — names, addresses, birthdates, telephone numbers, and Social Security numbers.

HHS OCR investigation found “longstanding systemic noncompliance” with HIPAA Security Rules including failure to conduct risk analyses and implement timely security updates.

Penalties

Sources: HHS OCR; multi-state AG announcement

HMA Acquisition Collapse

2014: CHS acquired Health Management Associates for $7.6 billion including $3.7 billion in debt. Peak debt reached approximately $19 billion. CHS subsequently divested from 206 hospitals to the current portfolio of approximately 70. Current total debt: $11.5 billion. S&P Global rating: CCC+ Outlook Negative. Fitch: B- RR2.

Source: SEC 10-K; S&P Global; Fitch (2025–2026)

Compensation

Current base salary: $1,250,000 (53% increase from prior role). Total compensation as interim CEO/CFO (2024): approximately $3,473,366. CEO-to-median worker pay ratio: approximately 110:1.

Political

CHS PAC raised over $500,000 in the 2024 cycle. Top recipients include members of House Ways and Means and Energy and Commerce committees.

Source: OpenSecrets

Sources