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Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

5. INCOME TAXES

The total amount of unrecognized benefit that would affect the effective tax rate, if recognized, was $44 million at September 30, 2025. A total of $8 million of interest and penalties is included in the amount of the liability for uncertain tax positions at September 30, 2025. It is the Company’s policy to recognize interest and penalties related to unrecognized benefits in its condensed consolidated statements of income (loss) as income tax expense.

It is possible the amount of unrecognized tax benefit could change in the next 12 months as a result of a lapse of the statute of limitations and settlements with taxing authorities; however, the Company does not anticipate the change will have a material impact on the Company’s condensed consolidated results of operations or financial position.

The Company’s income tax returns for the 2021 and 2022 tax years are under examination by the Internal Revenue Service. The Company believes the result of this examination will not be material to its consolidated results of operations or consolidated financial position. The Company has extended the federal statute of limitations through December 31, 2026 for Community Health Systems, Inc. for the tax periods ended December 31, 2021 and 2022.

The Company’s benefit from income taxes was $(173) million and $(64) million for the three months ended September 30, 2025 and 2024, respectively, and $(13) million and $(13) million for the nine months ended September 30, 2025 and 2024, respectively. The Company’s effective tax rates were 8,650.0% and 15.3% for the three months ended September 30, 2025 and 2024, respectively, and (2.6)% and 3.7% for the nine months ended September 30, 2025 and 2024, respectively.

The tax effects of the federal budget reconciliation legislation, which was enacted on July 4, 2025, were recorded during the three months ended September 30, 2025. A decrease in valuation allowances stemming from increased interest deductibility and increased bonus depreciation resulted in an income tax benefit of approximately $163 million during the three months ended September 30, 2025. This income tax benefit increased the effective tax rate by 8,150.0% for the three months ended September 30, 2025 and reduced the effective tax rate by 32.4% for the nine months ended September 30, 2025.

Cash paid for income taxes, net of refunds received, resulted in a net payment of $91 million and $48 million during the three months ended September 30, 2025 and 2024, respectively, and $192 million and $132 million during the nine months ended September 30, 2025 and 2024, respectively. During the three and nine months ended September 30, 2025, approximately $52 million and $126 million, respectively, of cash paid for taxes related to gains on hospitals divested during the period. During the three and nine months ended September 30, 2024, approximately $17 million of cash paid for taxes related to the gain on a hospital divested during the periods.