COMMUNITY HEALTH SYSTEMS INC — Director's Dealing 2017

Mar 2, 2017

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY HEALTH SYSTEMS INC (CYH)
CIK: 0001108109
Period of Report: 2017-03-01

Reporting Person: Horrar Robert O (Division President)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2017-03-01	Common Stock	M	35000	$0.00	Acquired	57739	Direct
2017-03-01	Common Stock	A	20000	$0.00	Acquired	77739	Direct
2017-03-01	Common Stock	F	9090	$9.19	Disposed	68649	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2017-03-01	Performance Based Restricted	$0.00	M	35000	Disposed	2026-02-28	Common Stock (35000)	Direct
2017-03-01	Performance Based Restricted	$0.00	A	20000	Acquired	2027-02-28	Common Stock (20000)	Direct

Footnotes

F1: The time-vesting restrictions on this award of restricted stock will lapse in 1/3 increments on the first, second and third anniversary of the date of grant.

F2: 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 time-vesting restrictions lapse in 1/3 increments on the first, second and third anniversary of the date of grant.

F3: The vesting of 80% of these performance-based restricted shares is subject to the attainment of a pre-determined level of Cumulative Same-Store Adjusted EBITDA Growth between January 1, 2017 and December 31, 2019 (the "Performance Period"). The vesting of the remaining 20% of these performance-based restricted shares is subject to the attainment of a pre-determined level of Cumulative Adjusted EPS for the Performance Period. The target number (100%) of the total performance-based restricted shares is reported in the table set forth above. Between 0% and 200% of the target number of performance-based restricted shares subject to the attainment of the Cumulative Same-Store Adjusted EBITDA Growth and Cumulative Adjusted EPS criteria, as applicable, will ultimately vest on the third anniversary of the date of grant, with the vesting percentage to be determined based upon achievement with respect to the applicable criteria during the Performance Period.