NEW YORK (TheStreet) -- Community Health Systems (CYH) - Get Report stock is retreating by 2.71% to $27.66 in early morning trading on Tuesday, following a rating downgrade to "market perform" from "outperform" at Leerink this morning.

The firm slashed its price target to $33 from $75 on the stock. 

The hospital operator reported preliminary third quarter 2015 financial results on Wednesday, missing "meaningfully" on revenue and earnings, Leerink said in a note.

Payer mix, or the percentage of revenue from private insurance versus government insurance versus self-paying individuals, has been declining while labor costs rise, the firm adds.

Community Health Systems's pre-earnings announcement reflects pressure from "more challenging" Affordable Care Act comps as well, the firm notes. 

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There is little indication that of a cyclical rebound for medical cost trends, according to Leerink.

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