Ardent Health Partners (ARDT) 2025 Conference May 20, 2025 08:00 AM ET Speaker0 Of Ardent Health Care Partners. We are, hosting Marty Bonnick, chief executive officer, and Alfred Lumsdain, chief financial officer. We also have in the room senior vice president investor relations, Dave Styblo. Welcome, guys. Thank you for joining us. Good to be here, Ben. Great. Maybe if you can kind of just open with a few words on your thoughts on the state of the world. Speaker1 Yeah. No. It's it's certainly been an inter ...

Summary of Arden Health Partners Conference Call Company Overview - **Company**: Arden Health Partners - **Industry**: Healthcare Facilities and Managed Care Key Points Volume Trends - Q1 volumes were at the higher end of full-year guidance, indicating strong performance despite calendar headwinds such as flu season [2][3] - The company operates in eight mid-sized urban markets that are growing approximately three times faster than the U.S. average, contributing to volume growth [4] - Strategies such as service line development and rationalization are in place to sustain and accelerate volume growth [5] Outpatient vs. Inpatient Trends - Outpatient volumes were weaker compared to inpatient volumes, attributed to calendar impacts and economic uncertainty [6] - The company is focusing on expanding outpatient services, including urgent care and ambulatory surgical centers (ASCs), to capture more patient volume [8][10] - The total addressable market consists of approximately 5.6 million people in the company's markets, with significant opportunities for outpatient growth [9] Joint Venture Model - Arden's joint venture model is unique in the publicly traded hospital sector, allowing for operational efficiencies and improved service delivery [21][22] - Partnerships with academic institutions, such as the University of Texas, have led to improved services and financial performance [24][27] - The model fosters a "flywheel effect," enhancing recruitment and training of medical professionals [27] Labor and Cost Management - The workforce has stabilized, with a reduction in contract labor usage from COVID-19 peaks [46][47] - The company is focused on improving nurse retention and reducing turnover, which has positively impacted labor costs [47] - Professional fees, which account for about 7% of revenues, are a growing cost pressure, but the company is negotiating with payers to manage these costs [51][52] Regulatory Environment - The company is optimistic about the durability of directed payment programs (DPPs) and believes initial proposals will not negatively impact existing programs [30][31] - There are ongoing discussions in Congress regarding physician payment reforms, with hopes for sustainable solutions [55][57] Growth Strategy - Arden is exploring acquisition opportunities to expand its market presence, particularly in struggling hospitals [66][67] - The company is managing cash flow tightly while balancing slow payments from payers and capital expenditures [68] Financial Outlook - The company expects continued margin improvement through operational efficiencies and outpatient growth, with a long-term volume growth target of 2-3% [8][40] - The focus remains on building a scalable and robust operating model to enhance profitability [41][42] Additional Insights - The company emphasizes the importance of physician relationships in driving patient volume and ensuring facility-based care referrals [28][29] - There is a noted increase in denial rates, but the majority of claims are being paid, indicating a focus on improving revenue cycle management [62][63] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Arden Health Partners' operational performance, market strategies, and financial outlook.

Ardent Health Partners, Inc. (ARDT) closed the last trading session at $14.83, gaining 19.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $20.25 indicates a 36.6% upside potential.The average comprises 10 short-term price targets ranging from a low of $15.50 to a high of $24, with a standard deviation of $2.80. While the lowest estimate indicates an increase of 4.5% from the cur ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________ FORM 10-Q _______________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-42180 Ardent He ...

Ardent Health Partners (ARDT) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Company Participants David Styblo - SVP - Investor RelationsMarty Bonick - CEOAlfred Lumsdaine - Chief Financial OfficerWhit Mayo - Senior Managing DirectorCraig Hettenbach - Executive DirectorBen Hendrix - Vice PresidentBenjamin Rossi - Equity Research Associate Conference Call Participants Ann Hynes - Senior Healthcare Services Equity Analyst & Managing DirectorJoanna Gajuk - Equity Research AnalystMatthew Gillmor - Director & Eq ...

Ardent Health Partners (ARDT) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Speaker0 Ladies and gentlemen, thank you for standing by, and welcome to the Ardent Health Partners First Quarter twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. As a reminder, today's call is being recorded. I will now hand today's call over to David Styblo, Senior Vice President of Investor Re ...

Ardent Health (ARDT) Q1 2025 Earnings Call May 07, 2025 10:00 AM ET Company Participants David Styblo - SVP - Investor RelationsMarty Bonick - CEOAlfred Lumsdaine - Chief Financial OfficerWhit Mayo - Senior Managing DirectorCraig Hettenbach - Executive DirectorBen Hendrix - Vice PresidentBenjamin Rossi - Equity Research Associate Conference Call Participants Ann Hynes - Senior Healthcare Services Equity Analyst & Managing DirectorJoanna Gajuk - Equity Research AnalystMatthew Gillmor - Director & Equity Rese ...

Important Disclaimers Forward-Looking Statements This presentation may contain certain "forward-looking statements," as that term is defined in the U.S. federal securities laws. These forward-looking statements include, but are not limited to, statements other than statements of historical facts, including, among others, statements relating to our future financial performance, our business prospects and strategy, anticipated financial position, liquidity and capital needs, the industry in which we operate a ...

Financial Performance - Total revenue for Q1 2025 was $1.50 billion, reflecting a 4.0% year-over-year growth[3] - Net income attributable to Ardent Health was $41 million, or $0.29 per diluted share, compared to $27 million, or $0.21 per diluted share in Q1 2024[11] - Adjusted EBITDA increased 2.5% year-over-year to $98 million[11] - Total revenue for Q1 2025 was $1,497,234, an increase of 4.0% from $1,439,046 in Q1 2024[27] - Net income attributable to Ardent Health Partners, Inc. for Q1 2025 was $41,383, representing a 53.3% increase from $27,047 in Q1 2024[27] - Basic net income per share increased to $0.30 in Q1 2025 from $0.21 in Q1 2024, reflecting a 42.9% growth[27] - Net income for Q1 2025 increased to $58,965, up from $45,851 in Q1 2024[39] - Adjusted EBITDA for Q1 2025 was $98,201, compared to $95,814 in Q1 2024, marking a growth of 2.0%[39] Operational Metrics - Admissions rose by 7.6% year-over-year, driven by a heightened flu season and solid inpatient surgery growth[5] - Adjusted admissions grew by 2.7% year-over-year, tracking toward the upper end of the 2025 guidance[5] - Emergency room visits increased by 2.3% year-over-year to 161,249[7] - The number of admissions in Q1 2025 rose to 41,389, a 7.6% increase from 38,469 in Q1 2024[34] - Utilization of licensed beds improved to 50% in Q1 2025, up from 46% in Q1 2024, representing an 8.7% increase[34] - The average length of stay for patients increased to 4.74 days in Q1 2025, compared to 4.66 days in Q1 2024[34] Financial Guidance - The company reaffirmed its full-year 2025 guidance, projecting total revenue between $6.2 billion and $6.45 billion[10] - The guidance for full-year 2025 net income is projected between $342 million and $386 million[50] - Adjusted EBITDA guidance for the full year 2025 is estimated to be between $575 million and $615 million[51] Cash and Debt Position - As of March 31, 2025, total cash and cash equivalents were $495 million, with total debt of $1.1 billion[8] - The company's net leverage ratio was 1.4x, and the lease-adjusted net leverage ratio was 3.0x as of March 31, 2025[8] - Cash and cash equivalents at the end of Q1 2025 were $495,044, down from $556,785 at the end of Q4 2024[32] - Long-term debt, less current installments, was $1,090,549 as of March 31, 2025, slightly up from $1,085,818 at the end of 2024[32] - Total assets decreased to $4,911,257 in Q1 2025 from $4,956,100 at the end of 2024[32] Strategic Initiatives - The company is evaluating a growing pipeline of attractive inorganic growth opportunities to enhance long-term value for stockholders[5] - The company is focused on leveraging technology, including artificial intelligence and machine learning, to enhance operational efficiencies and patient outcomes[23] - The company closed UT Health East Texas Specialty Hospital, transferring its assets to other facilities, indicating a strategic consolidation effort[35] - The company operated 30 hospitals at the end of Q1 2025, a decrease of 3.2% from 31 hospitals at the end of Q1 2024[34]

Operations and Market Presence - Ardent Health Partners operates 30 acute care hospitals and approximately 280 sites of care, serving over 1.2 million unique patients with approximately 5.8 million visits in 2024 [13]. - The company operates in eight mid-sized urban markets across six states, with an average of more than 500 beds per hospital, positioning itself for continued growth in these markets [21]. - The estimated market share for Ardent's hospitals ranges from 15.8% to 59.0% across different markets, indicating a strong competitive position [24]. - The company operates 18 JV-operated hospitals across various markets, with majority ownership interests in most of them [31]. - The joint venture with UTHSCT allows the company to share earnings on a 70% (Ardent) / 30% (UTHSCT) basis, despite owning 100% of the assets of the hospitals involved [32]. - The company aims to enter new markets through acquisitions and partnerships, focusing on joint ventures with leading not-for-profit and academic health systems [79]. Healthcare Services and Quality - The company has a provider network of over 1,800 providers, including more than 390 primary care providers and over 1,450 specialists, which supports its value-based care initiatives covering over 220,000 lives [27]. - In 2024, Ardent achieved a 7.2% increase in Sepsis Bundle compliance, leading to a greater than 13% reduction in Septic Shock mortality and a 33% decrease in catheter-associated urinary tract infections [20]. - Ardent's hospitals have received recognition for safety and quality, with 81% of graded hospitals achieving a Leapfrog Hospital Safety Grade of A or B, compared to the national average of 56% [20]. - The company has over 80 value-based care contracts and plans to expand its participation in these programs to drive better health and cost outcomes [76]. Technology and Innovation - The implementation of a system-wide Epic technology platform has improved care coordination and operational standardization, earning a "Gold Stars 9" level designation from Epic [28]. - The company leverages advanced technologies, including artificial intelligence and remote patient monitoring, to enhance patient care and outcomes [29]. - The company has invested nearly $37.0 million in enhanced technologies over the last three years to broaden service capabilities and increase patient engagement [30]. - The BioButton device has shown an approximately 9-hour reduction in length of stay (LOS) in medical surgical units where it is used [30]. - The implementation of a single instance of Epic as the clinical operating platform aims to improve clinical efficiency and financial outcomes [67]. Financial Performance and Market Trends - The U.S. national healthcare expenditures (NHE) represented approximately 17% of GDP, or nearly $4.9 trillion, in 2023, with projections to grow to over $7.7 trillion by 2032 [44]. - Hospital expenditures are expected to rise at an average annual growth rate of 5.8% from 2023 to 2032, outpacing the GDP growth rate of 4.3% [44]. - The serviceable addressable market for the company is estimated to be approximately $800 billion in 2020, expected to grow at an average annual growth rate of approximately 5.7% to nearly $1.4 trillion by the end of the decade [47]. - Hospital services accounted for nearly $1.5 trillion, or approximately 31% of total healthcare spending in 2023, expected to grow to $2.4 trillion by 2032 [49]. - Physician and clinical services represented nearly $1.0 trillion, or approximately 20% of total spending in 2023, projected to increase to approximately $1.5 trillion by 2032 [49]. Regulatory Environment and Compliance - Regulatory compliance is critical, as failure to meet laws and regulations could result in penalties, loss of licenses, and inability to participate in government programs [143]. - The use of artificial intelligence in clinical decision-making is under increased regulatory scrutiny, with potential future laws affecting its implementation [149][150]. - Recent U.S. Supreme Court decisions have introduced regulatory uncertainty, impacting the healthcare industry's compliance landscape [151]. - The Affordable Care Act (ACA) has expanded health insurance coverage and reduced Medicare spending growth, but its future is uncertain due to ongoing legislative attempts to amend it [152]. - The Anti-Kickback Statute prohibits remuneration to induce referrals for services covered by federal healthcare programs, with severe penalties for violations [157]. Cybersecurity and Operational Challenges - The Cybersecurity Incident in November 2023 had an estimated pre-tax impact of approximately $74 million, including lost revenues and remediation costs [187]. - The company experienced delays in billing claims and obtaining reimbursements and payments through the first quarter of 2024 due to the Cybersecurity Incident [189]. - The company faced three consolidated class action lawsuits due to a Cybersecurity Incident, involving approximately 38,000 individuals alleging data mismanagement [190]. - The company activated incident response protocols and engaged cybersecurity experts immediately upon detecting the Cybersecurity Incident [187]. - The unauthorized actor acquired a copy of certain personal information and PHI of a limited number of patients and employees, but did not gain access to the EHR platform [187]. Workforce and Human Resources - As of December 31, 2024, the company employed approximately 24,900 individuals, including over 19,200 full-time employees [199]. - The company is experiencing significant challenges in recruiting and retaining qualified medical personnel due to industry-wide labor shortages [200]. - The company has established nursing and medical residency programs across five states to improve access to care and build a pipeline of skilled providers [206]. - The company invests in employee safety and welfare, maintaining a secure workplace and promoting a culture of well-being [204].