Sec Form 4 Filing - Smith Martin Dewayne @ COMMUNITY HEALTH SYSTEMS INC - 2013-02-27

Insider filing report for Changes in Beneficial Ownership
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FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person
Smith Martin Dewayne
2. Issuer Name and Ticker or Trading Symbol
COMMUNITY HEALTH SYSTEMS INC [ CYH]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
X __ Officer (give title below) _____ Other (specify below)
Division President
(Last) (First) (Middle)
4000 MERIDIAN BLVD
3. Date of Earliest Transaction (MM/DD/YY)
02/27/2013
(Street)
FRANKLIN, TN37067
4. If Amendment, Date Original Filed (MM/DD/YY)
6. Individual or Joint/Group Filing (Check Applicable Line)
__ X __ Form filed by One Reporting Person
_____ Form filed by More than One Reporting Person
(City) (State) (Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 02/27/2013( 1 ) M 20,167 A $ 0 107,915 D
Common Stock 02/27/2013 F 2,821 D $ 41.71 105,094 D
Common Stock 02/27/2013 M 5,000 A $ 32.37 110,094 D
Common Stock 02/27/2013 S 5,000 D $ 40.35 105,094 D
Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(MM/DD/YY)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Performance Based Restricted $ 0 02/27/2013 M 20,167 02/16/2013( 1 ) 02/15/2022 Common Stock 20,167 $ 0 0 D
Performance Based Restricted $ 0 02/27/2013 A 25,000 02/27/2014( 2 ) 02/26/2023 Common Stock 25,000 $ 0 25,000 D
Stock Options (Right to Buy) $ 32.37 02/27/2013 M 5,000 02/28/2006 02/27/2013 Common Stock 5,000 $ 0 0 D
Stock Options (Right to Buy) $ 25.7 12/09/2004 12/08/2013 Common Stock 5,000 5,000 D
Stock Options (Right to Buy) $ 25.13 05/25/2005 05/24/2014 Common Stock 2,000 2,000 D
Stock Options (Right to Buy) $ 38.3 03/01/2007 02/29/2016 Common Stock 3,000 3,000 D
Stock Options (Right to Buy) $ 37.21 02/28/2008 02/27/2017 Common Stock 1,500 1,500 D
Stock Options (Right to Buy) $ 40.41 07/25/2008 07/24/2017 Common Stock 8,000 8,000 D
Stock Options (Right to Buy) $ 32.28 02/27/2010 02/26/2019 Common Stock 1,500 1,500 D
Stock Options (Right to Buy) $ 33.9 02/24/2011 02/23/2020 Common Stock 10,000 10,000 D
Stock Options (Right to Buy) $ 37.96 02/23/2012 02/22/2021 Common Stock 10,000 10,000 D
Stock Options (Right to Buy) $ 21.07 02/16/2013 02/15/2022 Common Stock 8,000 8,000 D
Reporting Owners
Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Smith Martin Dewayne
4000 MERIDIAN BLVD
FRANKLIN, TN37067
Division President
Signatures
Christopher G. Cobb, Attorney in Fact for Martin D. Smith 02/28/2013
Signature of Reporting Person Date
Explanation of Responses:
( 1 )Financial information necessary to determine if performance criteria had been satisfied was not publicly available on February 16, 2013, the first anniversary of the date of the award. At a meeting of the Compensation Committee ("Committee") held February 26, 2013, and confirmed by the Board of Directors ("Board") on February 27, 2013, the Committee and the Board determined that the performance conditions had been satisfied. The shares will now be reported as owned shares in Table I, and restrictions on the remaining shares will lapse on the 2nd and 3rd anniversary of the original date of the award, all in accordance with the award agreement.
( 2 )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.

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