Community Health Systems, Inc (NYSE:CYH) shares rose 19.65%, as of 11:38 AM PST, on Thursday.
The company operates 127 hospitals, within 20 states around the United States. Investors of the stock can thank the company’s largest shareholder for the bump as it was announced this morning that Shanda Group, a Chinese investment firm, has increased its position in the company. A filing given out by the SEC revealed that the investment firm now owns 27.5 million shares of CYH, which averages to about 24% of the total.
The reason for the bump is unknown at this time, as the company’s stock performance and financial statements haven’t been the greatest the last few years.
Community Health Systems is one of the largest publicly traded hospital companies in the United States and is the front-leader of general acute care hospitals. The company’s headquarters is located in Franklin, Tennessee just outside of Nashville.
As healthcare is rapidly changing in the United States, acute care is on the rise. Insurance plans have become astronomically unaffordable and preventative medicine has been dying for nearly a decade. As insurance companies become stricter with policies, long-term hospital stays have become increasingly harder to bill and hospitals have had to fight to get reimbursed for everything. The country as a whole has begun to shift the way it practices medicine in the best interest of the patients, as it deals with the insurance crisis.
Although the company’s stock has been all over the place within the last year, I believe its future goals within the scope of healthcare have given its largest shareholder, some confidence. While Community Health System’s financial statements may leave some of its investors scratching their heads, the boost in shares from Shanda group should put some at ease as its largest shareholder believes in the company’s future trajectory.
Featured Image: twitter
