Ardent Health outlines $40M annual benefit from impact program as cost headwinds persist

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• Year-to-date through Q3, adjusted EBITDA grew 30% and margins expanded 150 basis points to 8.7%

  80% confidence

• There is strong durable demand going into 2026

  80% confidence

• Strong platform and initiatives drove admissions growth of 5.8% in Q3

  80% confidence

• It would be premature to discuss share repurchases, but Board will look at every option to optimize shareholder value over time

  80% confidence

• Cost pressures are not demand-driven; revenue guidance remains unchanged but earnings pull-through has been impacted

  80% confidence

• Company terminated a payer contract, payer came back to negotiate better rates and terms to prevent denial activity

  80% confidence

• Updated outlook prudently assumes industry headwinds observed in Q3 will persist at elevated levels in Q4

  80% confidence

• Q3 adjusted EBITDA increased 46% to $143 million with margin increasing by 240 basis points to 9.1%

  80% confidence

• Margin enhancement and efficiency initiatives will provide annual benefit of more than $40 million at full run rate in early 2026

  80% confidence

• Company is ramping up litigation efforts and demand letters to address payer denials

  80% confidence

• Payer denials are fairly uniform across all categories including managed care, Medicare, Medicaid, and health exchanges

  80% confidence

• Q3 revenue increased 8.8% to $1.58 billion driven by adjusted admissions growth of 2.9% and net patient service revenue per adjusted admission growth of 5.8%

  80% confidence

• The $43M revenue reduction from Kodiak RCA is a change in accounting estimate, representing difference in reserve timing between the two models

  80% confidence

• Earnings performance in Q3 did not meet expectations

  80% confidence

• 100% of the $54M malpractice charge relates to New Mexico market experiencing significant social inflationary pressure in medical malpractice cases

  80% confidence

• Year-to-date adjusted EBITDA is up 30% with margin improvements

  80% confidence