Document:

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                                                                    EXHIBIT 10.5

                          MERGER AND TRANSFER AGREEMENT

                   GALESBURG COTTAGE HOSPITAL RETIREMENT PLAN

                                       AND

                   COMMUNITY HEALTH SYSTEMS, INC. 401(K) PLAN

         Scudder Trust Company, as directed trustee ("Trustee") of the Galesburg
Cottage Hospital Retirement Plan ("Galesburg Plan") and separately of the
Community Health Systems, Inc. 401(k) Plan ("CHS Plan"), Galesburg Cottage
Hospital ("Galesburg"), and CHS/Community Health Systems, Inc. ("CHS") enter
into this MERGER AND TRANSFER AGREEMENT ("Agreement") by and among themselves in
their separate, respective capacities as the Trustee and plan administrators of
the Galesburg Plan and of the CHS Plan.

                                   WITNESSETH:

         WHEREAS, CHS and its affiliate Galesburg Hospital Corporation have
agreed to purchase substantially all of the assets of Galesburg according to the
terms of that certain Asset Purchase Agreement entered into by and between the
parties as of March 15, 2004, as amended; and

         WHEREAS, in connection with its purchase of substantially all of the
assets of Galesburg, CHS wishes to merge the Galesburg Plan with and into the
CHS Plan, effective as of July 1, 2004, and Galesburg wishes to effect and
consent to such merger; and

         WHEREAS, the Galesburg Plan grants the Trustee and plan administrator
of the Galesburg Plan specific authority, and Galesburg as the plan
administrator directs the Trustee, to enter into a transfer of plan assets
agreement or to transfer plan assets as a party to any such agreement; and

         WHEREAS, the CHS Plan grants the Trustee and plan administrator of the
CHS Plan specific authority, and CHS as the plan administrator directs the
Trustee, to accept the transfer of plan assets; and

         WHEREAS, Galesburg deems it in the best interest of the administration
of the Galesburg Plan and in the best interest of the participants in the
Galesburg Plan to transfer and assign all participant accounts in the Galesburg
Plan to the CHS Plan in a plan merger; and

         WHEREAS, CHS deems it in the best interest of the administration of the
CHS Plan to accept the transfer and assignment of all participant accounts from
the Galesburg Plan to the CHS Plan in a plan merger.

         NOW, THEREFORE, for and in consideration of the premises, the Trustee
and plan administrators, acting in their respective capacities on behalf of the
CHS Plan and on behalf of the Galesburg Plan, hereby agree as follows:

                  (1) EMPLOYER MATCHING CONTRIBUTION. Prior to June 30, 2004,
Galesburg shall contribute and allocate to the accounts of eligible participants
in the Galesburg

                                      -1-

<PAGE>

                                                                    EXHIBIT 10.5

Plan the employer matching contributions to which such participants are entitled
under the terms of the Galesburg Plan for the period ending June 30, 2004, and
all prior periods.

                  (2) TRANSFER OF ASSETS. Following such allocation of employer
matching contributions, the Galesburg Plan trustee shall transfer and assign
directly to the CHS Plan trustee the accounts of all participants in the
Galesburg Plan.

                  (3) HOLDING AND INVESTMENT OF ASSETS. The Trustee and plan
administrator of the CHS Plan shall thereafter hold, invest, administer and
distribute the assets of the Galesburg Plan transferred and assigned in
accordance with the terms of the CHS Plan.

                  (4) PARTICIPANTS' ACCOUNTS. With respect to the accounts of
the participants in the Galesburg Plan transferred to the CHS Plan, the
following conditions shall apply:

                      (a) The sum of the account balances in the Galesburg Plan
                          and the CHS Plan shall equal the fair market value
                          (determined as of the date of the merger) of the
                          entire plan assets of the CHS Plan as of the date of
                          the merger;

                      (b) The assets of the Galesburg Plan and CHS Plan shall be
                          combined to form the assets of the CHS Plan as merged;

                      (c) Immediately after the merger, each participant in the
                          CHS Plan as merged shall have an account balance equal
                          to the sum of the account balances each participant
                          had in the Galesburg Plan immediately prior to the
                          merger;

                      (d) Participants shall continue to vest in their interest
                          in the amounts attributable to the Galesburg Plan in
                          accordance with the vesting schedule set forth in the
                          CHS Plan; and

                      (e) The transfer of the accounts shall not result in
                          elimination of any Internal Revenue Code Section
                          411(d)(6) protected benefit, except to the extent
                          permitted by the Internal Revenue Code or the Treasury
                          Regulations thereunder, and CHS shall amend the CHS
                          Plan to prevent the elimination of any such benefit.

                  (5) BINDING EFFECT. The terms and conditions of this Agreement
shall bind the Trustee (and its successors) of the Galesburg Plan and of the CHS
Plan and shall operate as if fully set forth within the CHS Plan.

                  (6) EFFECTIVE DATE. The merger of the plans and the transfer
and assignment of account balances in the Galesburg Plan to the CHS Plan shall
take place as of July 1, 2004.

         IN WITNESS WHEREOF, the plan administrators have signed this Agreement
in their fiduciary capacities on behalf of the Galesburg Plan and separately on
behalf of the CHS Plan, and Scudder Trust Company has signed this Agreement, at
the direction of Galesburg and CHS as the plan administrators of their
respective plans, solely in its capacity as directed trustee on

                                      -2-

<PAGE>

                                                                    Exhibit 10.5

behalf of the Galesburg Plan and separately on behalf of the CHS Plan, as set
forth following their names below on this 1st day of July, 2004.

                                GALESBURG COTTAGE HOSPITAL--Plan
                                Administrator of the Galesburg Cottage Hospital
                                Retirement Plan

                                    BY:   /s/ [ILLEGIBLE]
                                        ---------------------------------------

                                    Title:  President & CEO
                                           ------------------------------------

                                CHS/COMMUNITY HEALTH SYSTEMS, INC.--
                                Plan Administrator of the Community Health
                                Systems, Inc. 401(k) Plan

                                    BY:   /s/ [ILLEGIBLE]
                                        ---------------------------------------

                                    Title:  Vice President
                                           ------------------------------------

                                Scudder Trust Company--Trustee of the Galesburg
                                Cottage Hospital Retirement Plan

                                    BY:   /s/ [ILLEGIBLE]
                                        ---------------------------------------

                                    Title:  Vice President
                                           ------------------------------------

                                Scudder Trust Company--Trustee of the
                                Community Health Systems, Inc. 401(k) Plan

                                    BY:   /s/ [ILLEGIBLE]
                                        ---------------------------------------

                                    Title:  Vice President
                                           ------------------------------------

                                      -3-
<PAGE>

                                                                    Exhibit 10.5

(BC LOGO) (BOULT o CUMMINGS  o                                    B. David Joffe
CONNERS o BERRY PLC LETTERHEAD)                                    (615)252-2368
                                                              Fax: (615)252-6368
                                                 Email: djoffe@boultcummings.com

                                  July 20, 2004

Mr. Chip Cain
Community Health Systems, Inc.
155 Franklin Road, Suite 400
P.O. Box 217
Brentwood, TN 37024-0217

      RE:   MERGER AND TRANSFER AGREEMENT ENTERED INTO BY GALESBURG COTTAGE
            HOSPITAL RETIREMENT PLAN AND COMMUNITY HEALTH SYSTEMS, INC. 401(k)
            PLAN

 Dear Chip:

         Enclosed you will find for your files a fully-executed original Merger
and Trust Agreement as referenced above. If you have any questions regarding
this matter, please do not hesitate to contact me.

                                     Yours truly,

                                     BOULT, CUMMINGS, CONNERS & BERRY, PLC

                                     By:  /s/ B. DAVID JOFFE

                                          B. David Joffe

BDJ/sl
Enclosure
cc:  Ms. Linda Parsons (w/encl.)

                                   LAW OFFICES
    414 UNION STREET o SUITE 1600 o P.O. BOX 198062 o NASHVILLE o TN o 37219
      TELEPHONE 615.244.2582 FACSIMILE 615.252.6380 WWW.BOULTCUMMINGS.OOM<PAGE>
                                                                    Exhibit 10.6

                         PLAN-TO-PLAN TRANSFER AGREEMENT

              ASSOCIATED HEALTHCARE SYSTEMS 401(k) RETIREMENT PLAN

                                       AND

                   COMMUNITY HEALTH SYSTEMS, INC. 401(K) PLAN

         A. Ronald Turner and James L. Marshall, Jr. (collectively the
"Associated Trustee"), as Co-Trustees of the Associated Healthcare Systems
401(k) Retirement Plan (the "Associated Plan"); Scudder Trust Company (the "CHS
Trustee"), as the directed Trustee of the Community Health Systems, Inc. 401(k)
Plan (the "CHS Plan"); Associated Healthcare Systems, Inc. ("Associated"), as
the Plan Administrator of the Associated Plan; and the CHS/Community Health
Systems, Inc. Retirement Committee ("CHS"), as the Plan Administrator of the CHS
Plan, enter into this Plan-to-Plan Transfer Agreement ("Agreement") by and among
themselves in their separate, respective capacities as the Trustees and Plan
Administrators of the Associated Plan and CHS Plan as of the 30th day of
September, 2004 (the "Effective Date").

                                   WITNESSETH:

         WHEREAS, Associated has agreed to purchase all of the outstanding
shares of the capital stock of National Healthcare of Pocahontas, Inc., Randolph
County Clinic Corp., Sabine Medical Center, Inc., and Sabine Medical Clinic,
Inc. ("Facilities"), according to the terms of that certain Purchase Agreement
entered into by and between Associated, CHS, Hallmark Holdings Corp., and CHS
Holdings Corp., on July 2,2004; and

         WHEREAS, employees of the Facilities are eligible to participate in the
CHS Plan, subject to the terms of the CHS Plan; and

         WHEREAS, employees of the Facilities will become eligible to
participate in the Associated Plan following the sale of shares, subject to the
terms of the Associated Plan; and

         WHEREAS, the CHS Plan and the Associated Plan are intended to be
tax-qualified under Section 401(a) of the Internal Revenue Code ("Code"); and

         WHEREAS, in connection with its sale of shares in the Facilities, CHS
wishes to effect the transfer of the CHS Plan accounts of the employees of the
Facilities who are participants in the CHS Plan to the Associated Plan,
effective as of the Effective Date, and Associated wishes to effect and consent
to such transfer; and

         WHEREAS, the Plan Administrator of the CHS Plan has the authority to
enter into a transfer of plan assets agreement, and to direct the CHS Trustee
Plan to effect any such transfer; and

         WHEREAS, the Associated Plan grants the Associated Trustee and the Plan
Administrator of the Associated Plan specific authority, and Associated as the
plan administrator directs the Associated Trustee, to enter into a transfer of
plan assets agreement; and

                                        -1-

<PAGE>
                                                                    Exhibit 10.6

         WHEREAS, CHS deems it in the best interest of the administration of the
CHS Plan and in the best interest of the participants in the CHS Plan who are
employees of the Facilities to transfer and assign all such participant and
related accounts in the CHS Plan to the Associated Plan on the terms set forth
herein; and

         WHEREAS, Associated deems it in the best interest of the administration
of the Associated Plan and in the best interests of the employees at the
Facilities who will become eligible to participate in the Associated Plan, to
accept the transfer and assignment to the Associated Plan of the participant and
related accounts in the CHS Plan on the terms set forth herein.

         NOW, THEREFORE, for and in consideration of the premises, the Trustees
and Plan Administrators, acting in their respective capacities on behalf of the
CHS Plan and on behalf of the Associated Plan, hereby agree as follows:

                  (1) TRANSFER OF ASSETS. The CHS Trustee shall transfer and
assign directly to the Associated Trustee the accounts and related assets of all
participants in the CHS Plan who are employees of the Facilities, including the
accounts and related assets of any beneficiaries of such employees and of any
alternate payees with respect to such employees and any participant plan loans,
and the Associated Trustee shall accept such transfer and assignment to the
Associated Plan.

                  (2) HOLDING AND INVESTMENT OF ASSETS. The Associated Trustee
and Associated shall thereafter hold, invest, administer, and distribute the
assets of the CHS Plan transferred and assigned in accordance with the terms of
the Associated Plan.

                  (3) PARTICIPANTS' ACCOUNTS. With respect to the accounts of
the participants in the CHS Plan transferred to the Associated Plan, the
following conditions shall apply:

                      (a) The sum of the transferred CHS Plan account balances
                          and the account balances in the Associated Plan shall
                          equal the fair market value (determined as of the date
                          of transfer) of the entire plan assets of the
                          Associated Plan as required under Treas. Reg.
                          Section 1.414(1)-1(d)(1)

                      (b) The transferred assets of the CHS Plan and the assets
                          of the . Associated Plan immediately prior to the
                          transfer shall be combined to form the assets of the
                          Associated Plan as required under Treas. Reg. Section
                          1.414(1)-1(d)(2);

                      (c) Immediately after the transfer, each participant whose
                          account is transferred to the Associated Plan shall
                          have an account balance equal to the sum of the
                          account balances each participant had in the CHS Plan
                          immediately prior to the transfer as required under
                          Treas. Reg. Section 1.414(1)-1(d)(3);

                                      - 2-

<PAGE>

                                                                    Exhibit 10.6

                      (d) Participants shall continue to vest in their interest
                          in the amounts attributable to the CHS Plan in
                          accordance with the vesting schedule set forth in the
                          Associated Plan, which will be no less generous than
                          the vesting schedule in the CHS Plan;

                      (e) The transfer of the accounts shall not result in
                          elimination of any Code Section 411(d)(6) protected
                          benefit, except to the extent permitted by the
                          Internal Revenue Code of 1986 or the Treasury
                          Regulations promulgated thereunder, and Associated
                          shall amend the Associated Plan to prevent the
                          elimination of any such benefit; and

                      (f) Plan loans of participants in the CHS Plan shall
                          continue under the Associated Plan according to the
                          same terms and conditions and no plan loans shall be
                          deducted from the CHS Plan account balances or the
                          transferred assets.

                  (4) BINDING EFFECT. The terms and conditions of this Agreement
shall bind the Trustees (and their successors) of the Associated Plan and of the
CHS Plan and shall operate as if fully set forth within the Associated Plan.

                  (5) REPRESENTATIONS.

                      (a) Associated hereby represents and warrants to CHS and
                          the CHS Trustee as 'follows: The Associated Plan is
                          intended to be and has been intended since its
                          inception to be qualified and tax-exempt under the
                          provisions of Sections 401 (a) and 501 (a) of the
                          Code; is and has been since its inception in material
                          compliance with its terms and, both as to form and in
                          operation, with the requirements prescribed by law
                          that are applicable to such plan. All returns,
                          reports, and disclosure statements required to be made
                          with respect to the Associated Plan have been timely
                          filed or delivered. The Associated Plan is not
                          currently and has not been under audit, inquiry, or
                          investigation, and there are no outstanding issues
                          with reference to the Associated Plan pending before
                          any governmental agency. Other than routine claims for
                          benefits, there are no actions, audits, arbitrations,
                          suits, claims, or investigations pending or threatened
                          against or with respect to the Associated Plan, and
                          there are no threatened or pending claims with respect
                          to the Associated Plan alleging a breach of fiduciary
                          duty or violation of law, nor is there any basis for
                          such.

                      (b) CHS hereby represents and warrants to Associated and
                          the Associated Trustee as follows: The CHS Plan is
                          intended to be and has been intended since its
                          inception to be qualified and tax-exempt under the
                          provisions of Sections 401(a) and 501(a) of the Code;
                          is and has been since its inception in material
                          compliance with its terms and, both as to form and in
                          operation, with the

                                      -3-

<PAGE>

                                                                    Exhibit 10.6

                          requirements prescribed by law that are applicable to
                          such plan. All returns, reports, and disclosure
                          statements required to be made with respect to the CHS
                          Plan have been timely filed or delivered. The CHS Plan
                          is not currently and has not been under audit,
                          inquiry, or investigation, and there are no
                          outstanding issues with reference to the CHS Plan
                          pending before any governmental agency. Other than
                          routine claims for benefits, there are no actions,
                          audits, arbitrations, suits, claims, or investigations
                          pending or threatened against or with respect to the
                          CHS Plan, and there are no threatened or pending
                          claims with respect to the CHS Plan alleging a breach
                          of fiduciary duty or violation of law, nor is there
                          any basis for such.

                  (6) INDEMNIFICATION.

                      (a) Associated hereby agrees to defend, indemnify, and
                          hold harmless CHS (including, without limitation, the
                          trustees, officers, directors, independent
                          contractors, employees, agents, plan fiduciaries,
                          successors, and assigns of CHS, its parent, and
                          subsidiaries) for, from, and/or against any and all
                          claims, losses, liabilities, damages, costs
                          (including, without limitation, court costs and costs
                          of appeal) and expenses (including, without
                          limitation, reasonable attorneys' fees and fees of
                          expert consultants and witnesses) that the indemnified
                          parties incur as a result of, with respect to, arising
                          out of, or related to any breach by Associated or
                          Associated Trustee of this Agreement and/or the
                          transfer contemplated by this Agreement.

                      (b) CHS hereby agrees to defend, indemnify, and hold
                          harmless Associated (including, without limitation,
                          the trustees, officers, directors, independent
                          contractors, employees, agents, plan fiduciaries,
                          successors, and assigns of Associated, its parent, and
                          subsidiaries) for, from, and/or against any and all
                          claims, losses, liabilities, damages, costs
                          (including, without limitation, court costs and costs
                          of appeal) and expenses (including, without
                          limitation, reasonable attorneys' fees and fees of
                          expert consultants and witnesses) that the indemnified
                          parties incur as a result of, with respect to, arising
                          out of, or related to any breach by CHS or CHS Trustee
                          of this Agreement and/or the transfer contemplated by
                          this Agreement.

                  (7) EFFECTIVE DATE. The transfer and assignment herein
described of account balances in the CHS Plan to the Associated Plan shall take
place as of the Effective Date.

                  (8) MULTIPLE COUNTERPARTS. This Assignment may be executed in
two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

                                      -4-

<PAGE>
                                                                    Exhibit 10.6

IN WITNESS WHEREOF, the Plan Administrators have signed this Agreement in their
fiduciary capacities on behalf of the Associated Plan and separately on behalf
of the CHS Plan; the Associated Trustee has signed this Agreement, at the
direction of Associated as the Plan Administrator of the Associated Plan, solely
in its capacity as Trustee of the Associated Plan; and the CHS Trustee has
signed this Agreement, at the direction of CHS as the Plan Administrator of the
CHS Plan, solely in its capacity as directed Trustee of the CHS Plan, below as
of the Effective Date.

                                ASSOCIATED HEALTHCARE SYSTEMS, INC.

                                Plan Administrator of the Associated Healthcare
                                Systems 401(k) Retirement Plan

                                  By:     /s/ KRISTINE HILL
                                          --------------------------------------
                                          Kristine Hill,
                                  Title:  Director of HR and Risk Management

                                CHS/COMMUNITY HEALTH SYSTEMS, INC.
                                RETIREMENT COMMITTEE

                                Plan Administrator of the Community Health
                                Systems, Inc. 401(k) Plan

                                  By:     /s/ LINDA K. PARSONS
                                          --------------------------------------
                                          Linda K. Parsons,
                                  Title:  Member of the Committee

                                A. RONALD TURNER AND JAMES L.
                                MARSHALL, JR.

                                Co-Trustees of the Associated Healthcare Systems
                                401(k) Retirement Plan

                                          A. RONALD TURNER
                                          --------------------------------------
                                          A. Ronald Turner, Trustee

                                          JAMES L. MARSHALL
                                          --------------------------------------
                                          James L. Marshall, Trustee

                                SCUDDER TRUST COMPANY

                                Trustee of the Community Health Systems, Inc.
                                401(k) Plan

                                  By:     [Illegible]
                                          --------------------------------------

                                  Title:  Vice President
                                          --------------------------------------

                                      -5-

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