COMMUNITY HEALTH SYSTEMS INC — Director's Dealing 2011

Feb 25, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY HEALTH SYSTEMS INC (CYH)
CIK: 0001108109
Period of Report: 2011-02-23

Reporting Person: SMITH WAYNE T (Director, Chairman, President & CEO)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2011-02-24	Common Stock	M	200000	$0.00	Acquired	970687	Direct
2011-02-24	Common Stock	F	24300	$37.85	Disposed	946387	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-02-24	Performance Based Restricted	$0.00	M	200000	Disposed		Common Stock (200000)	Direct
2011-02-23	Performance Based Restricted	$0.00	A	200000	Acquired		Common Stock (200000)	Direct
2011-02-23	Stock Options (Right to Buy)	$37.96	A	50000	Acquired	2021-02-22	Common Stock (50000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	2000	Indirect
Common Stock	107383	Indirect
Common Stock	200000	Indirect
Common Stock	51059	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Options (Right to Buy)	$33.90	2020-02-23	Common Stock (50000)	50000	Direct
Stock Options (Right to Buy)	$18.18	2019-02-24	Common Stock (50000)	50000	Direct
Stock Options (Right to Buy)	$32.28	2018-02-26	Common Stock (200000)	200000	Direct
Stock Options (Right to Buy)	$37.21	2015-02-28	Common Stock (100000)	100000	Direct
Stock Options (Right to Buy)	$40.41	2017-07-24	Common Stock (500000)	500000	Direct
Stock Options (Right to Buy)	$38.30	2014-03-01	Common Stock (100000)	100000	Direct
Stock Options (Right to Buy)	$32.37	2013-02-28	Common Stock (100000)	100000	Direct
Stock Options (Right to Buy)	$20.30	2013-05-22	Common Stock (500000)	500000	Direct

Footnotes

F1: The performance objectives governing these shares of Performance Based Restricted Stock have been met, and, accordingly, these shares will now be reported in Table 1 as directly owned shares of Restricted Stock. The restrictions lapse in 1/3 increments on the first, second and third anniversary of the date of grant.

F2: Each performance based restricted share represents a contingent right to receive one share of CYH common stock. There are two elements to the lapsing of the restriction; first, the Company must achieve specified targeted amount of earnings per share from continuing operations, or net revenue from continuing operations, and if the performance objective is met, the vesting restrictions will lapse in 1/3 increments on the first, second and third anniversary of the date of grant. If the objectives are not met, the shares will be forfeited.