Core Insights - Kirby McInerney LLP is investigating potential claims against Ardent Health, Inc. regarding possible violations of federal securities laws or unlawful business practices [1][3] Financial Results - On November 12, 2025, Ardent announced its third-quarter financial results, revealing a $43 million reduction in revenue due to changes in accounting estimates related to accounts receivable [3] - The company also disclosed a $54 million increase in professional liability reserves for claims in New Mexico [3] - Following this announcement, Ardent's share price fell by $4.75, approximately 33.8%, from $14.05 to $9.30 [3]

Operations and Facilities - As of September 30, 2025, Ardent Health operates 30 acute care hospitals and approximately 280 sites of care, employing 1,917 providers, marking a 3.0% increase in affiliated providers compared to the previous year[139]. - The company operates 13 acute care hospital facilities in Texas, with a total of 1,436 licensed beds[160]. - The company generated 35.8% of total revenue from the Texas market, 23.6% from Oklahoma, and 17.1% from New Mexico for the nine months ended September 30, 2025[160][161]. Financial Performance - Total revenue for the three months ended September 30, 2025, increased by $126.9 million, or 8.8%, compared to the same period in the prior year, driven by a 5.8% increase in net patient service revenue per adjusted admission and a 2.9% increase in adjusted admissions[167]. - For the nine months ended September 30, 2025, total revenue increased by $359.5 million, or 8.2%, with net patient service revenue per adjusted admission rising by 5.7%[168]. - Medicare accounted for 38.0% of total revenue for the three months ended September 30, 2025, while Medicaid represented 9.8% and other managed care accounted for 44.5%[171]. - Net income attributable to Ardent Health, Inc. for the nine months ended September 30, 2025 was $90,855, representing 1.9% of total revenue[176]. - For the three months ended September 30, 2025, net income was $1.2 million, a significant decrease from $46.0 million in the same period of 2024[218]. Expenses and Costs - Total operating expenses increased by $186.2 million, representing 95.9% of total revenue for the three months ended September 30, 2025, compared to 96.1% for the same prior year period[183]. - Salaries and benefits for the three months ended September 30, 2025, were $676.962 million, representing 42.9% of total revenue, compared to $635.223 million, or 43.8%, in the prior year[173]. - Other operating expenses increased to 12.6% of total revenue for the three months ended September 30, 2025, compared to 8.2% for the same prior year period[191]. - Interest expense for the nine months ended September 30, 2025 was $42,819, representing 0.9% of total revenue[176]. Debt and Financing - On September 18, 2025, Ardent Health refinanced its Term Loan B Facility, reducing the interest rate by 50 basis points to Term SOFR plus 2.25% and extending the maturity date to September 18, 2032[141]. - The company amended its ABL Credit Agreement on June 26, 2024, increasing the revolving commitment by $100.0 million to $325.0 million and extending the maturity date to June 26, 2029[152]. - As of September 30, 2025, total long-term debt obligations amount to $1,533.2 million, with $24.8 million due within one year[247]. - The Term Loan B Facility has a refinanced balance of $777.5 million, requiring quarterly installment payments of 0.25%[241]. Regulatory and Economic Environment - The OBBBA may reduce federal Medicaid expenditures and tighten eligibility requirements, potentially impacting Ardent Health's financial performance[144]. - Changes in federal tax law under the OBBBA include a return to the EBITDA formula for calculating business interest expense limitations and 100% bonus depreciation for qualifying property, which will reduce current tax liability[146]. - The OBBBA is expected to decrease the number of individuals obtaining health insurance from ACA marketplace exchanges, likely resulting in significant cost increases for ACA plans[148]. - The company is sensitive to regulatory, economic, and competitive conditions in Texas and Oklahoma, where its facilities are heavily concentrated[136]. Capital Expenditures and Investments - Capital expenditures for non-acquisitions were $127.9 million for the nine months ended September 30, 2025, compared to $106.2 million in 2024, reflecting a 20.5% increase[225]. - The company expects to finance future capital expenditures with internally generated and borrowed funds, indicating a strategic focus on maintaining and modernizing facilities[230]. Other Financial Metrics - Adjusted EBITDA for the nine months ended September 30, 2025, was $411.1 million, up 30.2% from $315.9 million in the same period of 2024[218]. - Cash flows provided by operating activities for the nine months ended September 30, 2025, totaled $247.1 million, an increase of 26.4% compared to $195.5 million for the same period in 2024[224]. - Total cash and cash equivalents as of September 30, 2025, were $609.4 million, contributing to available liquidity of $903.8 million[222].

Ardent Health Inc (NYSE:ARDT) reported downbeat earnings for the third quarter and lowered its FY2025 GAAP EPS guidance after the closing bell on Wednesday.Ardent Health Partners reported quarterly losses of 17 cents per share which missed the analyst consensus estimate of earnings of 41 cents per share. The company reported quarterly sales of $1.577 billion which beat the analyst consensus estimate of $1.547 billion.Ardent Health cut its FY2025 GAAP EPS guidance from $1.73-$2.01 to $0.85-$1.03.“Our third q ...

Core Viewpoint - Ardent Health, Inc. is under investigation for potential securities fraud due to improper accounting practices related to accounts receivable and professional liability reserves [3]. Financial Performance - On November 12, 2025, Ardent reported a $43 million decrease in revenue for Q3 2025 after conducting "hindsight evaluations of historical collection trends" [4]. - The company also increased its professional liability reserves by $54 million due to adverse claim developments from 2019 to 2022 and broader industry trends [4]. - Following these disclosures, Ardent's stock price dropped over 33% during trading on November 13, 2025 [4]. Legal Context - Bleichmar Fonti & Auld LLP is leading the investigation into Ardent Health for potential violations of federal securities laws [1]. - Investors are encouraged to seek additional information and may have legal options available [2][5].

Core Insights - Ardent Health, Inc. experienced a significant decline in share price, dropping over 33% in intraday trading on November 13, 2025, following the announcement of a $43 million decrease in revenue and a $54 million increase in professional liability reserves [1][3]. Financial Performance - The company reported a $43 million drop in revenue for Q3 2025, attributed to new insights from "hindsight evaluations of historical collection trends" and adjustments in estimating accounts receivable collectability [2]. - A $54 million rise in professional liability reserves was noted, linked to adverse prior period claim developments due to recent settlements and ongoing litigation in New Mexico [2]. Legal Investigation - Gibbs Mura is investigating a potential securities class action lawsuit against Ardent Health, focusing on possible violations of federal securities laws following the company's financial disclosures [1][6].

Core Viewpoint - Ardent Health, Inc. is under investigation for potential violations of federal securities laws following a significant revenue drop and a 33% decline in stock price [1][3][4]. Financial Performance - In Q3 2025, Ardent reported a $43 million decrease in revenue due to "hindsight evaluations of historical collection trends" [4]. - The company also increased its professional liability reserves by $54 million due to adverse prior period claim developments from 2019 to 2022 and broader industry trends [4]. Stock Market Reaction - Following the financial results announcement on November 12, 2025, Ardent's stock price fell over 33% during trading on November 13, 2025 [4]. Legal Implications - Bleichmar Fonti & Auld LLP has initiated an investigation into Ardent Health, Inc. for potential securities fraud, urging affected investors to contact them for more information [1][2][5].

Core Viewpoint - Johnson Fistel, PLLP is investigating potential violations of federal securities laws by Ardent Health, Inc. and its officers regarding misleading statements and undisclosed material information to investors [1]. Financial Results and Impact - On November 12, 2025, Ardent Health announced a $43 million reduction in revenue due to changes in accounting estimates related to accounts receivable collectability [2]. - The company also reported a $54 million increase in professional liability reserves for claims in New Mexico [2]. - Following these disclosures, Ardent's stock price experienced a significant decline during pre-market trading on November 13, 2025 [2].

Financial Data and Key Metrics Changes - Year-to-date adjusted EBITDA increased by 30%, with a revised full-year guidance of $530 million to $555 million due to industry-wide cost pressures [4][17] - Revenue for the third quarter grew by 8.8% to $1.58 billion, or 11.7% excluding a one-time revenue adjustment [15][17] - Adjusted EBITDA for the third quarter rose by 46% to $143 million, with margins expanding by 240 basis points to 9.1% [7][15] Business Line Data and Key Metrics Changes - Admissions growth was 5.8% in the third quarter, with year-to-date admissions up 6.7% [6][14] - Adjusted admissions increased by 2.9%, consistent with the 2025 guidance range of 2-3% [7][14] - Inpatient surgery growth was 9.7% in the third quarter, while outpatient surgeries declined by 1.8% [14] Market Data and Key Metrics Changes - The company's markets are growing two to three times faster than the national average, supported by rising care complexity [6][23] - Strong demand across markets is expected to continue, providing a foundation for strategic growth [6][23] Company Strategy and Development Direction - The company is focused on optimizing costs and strengthening margins through its impact program, which includes contract renegotiations and staffing adjustments [10][11] - Strategic investments will continue to support long-term growth, with plans to open several urgent care and imaging centers in 2026 [21][22] - The company aims to enhance operational efficiencies in labor, supply chain, and revenue cycle management [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent industry-wide cost pressures, particularly in professional fees and payer denials, impacting earnings more than anticipated [4][9] - Despite these challenges, management remains confident in the company's ability to deliver sustainable growth and long-term shareholder value [5][23] - The company is taking decisive actions to mitigate the impact of industry headwinds and strengthen performance [9][10] Other Important Information - The company recorded a $43 million revenue reduction due to a change in accounting estimate related to the transition to the Kodiak RCA net revenue platform [18] - An increase of $54 million in professional and general liability reserves was attributed to adverse claims development in the New Mexico market [19] Q&A Session Summary Question: What are the headwinds and tailwinds for 2026? - Management indicated that it is too early to provide definitive guidance for 2026 but noted strong durable demand and ongoing outpatient development [26][28] Question: Are there discussions about implementing a share repurchase program? - Management stated it would be premature to discuss a share repurchase program but emphasized a commitment to optimizing shareholder value [30] Question: What drove the increase in professional fees? - The increase in professional fees was attributed to pressures in anesthesia and radiology, with expectations for moderation in the future [58][60] Question: How widespread is the payer denial issue? - Payer denials have increased across managed care, Medicare, Medicaid, and health exchanges, prompting the company to ramp up appeals and litigation efforts [44][46] Question: How is the company addressing the elevated denial activity? - The company is focusing on improving contract terms and increasing the number of appeals filed, with a significant rise in demand letters sent to payers [46][48] Question: What is the status of contract negotiations for 2026? - Management reported that approximately three-quarters of contracts for 2026 have been negotiated, with a focus on improving yield under contracts [81]

Financial Data and Key Metrics Changes - Year-to-date adjusted EBITDA increased by 30%, with a third-quarter adjusted EBITDA growth of 46% to $143 million, and margins expanded by 240 basis points to 9.1% [5][11][20] - Revenue for the third quarter grew by 8.8% to $1.58 billion, or 11.7% excluding a one-time revenue adjustment [10][19] - Lease adjusted net leverage improved from 2.7 times to 2.5 times [11][21] - Full-year adjusted EBITDA guidance revised to $530 million to $555 million due to persistent industry-wide cost pressures [6][22] Business Line Data and Key Metrics Changes - Admissions growth of 5.8% in the third quarter, with year-to-date admissions up 6.7% [9][10] - Adjusted admissions increased by 2.9%, consistent with the 2025 guidance range of 2% to 3% [10][19] - Inpatient surgery growth was 9.7% in the third quarter, while outpatient surgeries declined by 1.8% [18] Market Data and Key Metrics Changes - Markets are growing two to three times faster than the national average, supported by rising care complexity [8][28] - Strong demand environment with robust surgical trends contributing to growth [5][8] Company Strategy and Development Direction - Company is focused on optimizing costs and strengthening margins through the impact program, which includes contract renegotiations and staffing adjustments [14][16] - Continued investment in outpatient services, with plans to open several urgent care and imaging centers in 2025 and 2026 [26][27] - Emphasis on maintaining a disciplined approach to strategic investments while addressing near-term earnings challenges [14][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledges industry headwinds, particularly around professional fees and payer denials, which are expected to persist [12][13] - Confidence in the ability to deliver sustainable growth and long-term shareholder value despite current challenges [7][29] - Management is optimistic about the strong demand environment and the potential for margin expansion in the future [28][29] Other Important Information - Two nonrecurring items impacted financials: a $43 million revenue reduction due to a change in accounting estimate and a $54 million increase in professional and general liability reserves [22][24] - The company is taking proactive steps to address payer denials and improve revenue cycle management [16][56] Q&A Session Summary Question: What are the headwinds and tailwinds for 2026? - Management indicated it is too early to provide guidance for 2026 but noted strong demand and ongoing outpatient development as positive factors [34][36] Question: Is there consideration for a share repurchase program? - Management stated it would be premature to discuss a share repurchase program but emphasized a commitment to optimizing shareholder value [39] Question: Why won't the malpractice charge lift recurring accruals? - The charge is specific to the New Mexico market and relates to historical claims, with management confident it won't impact future accruals [42][43] Question: What drove the increase in professional fees? - The increase is attributed to pressures in radiology and anesthesia, with management expecting moderation in the future [78] Question: How is the company addressing payer denials? - Management is ramping up appeals and litigation efforts to address increased payer denials, which are widespread across managed care products [54][56] Question: What is the status of commercial negotiations for 2026? - Management reported being close to three-quarters contracted for 2026, with a focus on improving yield under contracts [107][108]

3Q25 Performance - Total revenue increased by 8.8% to $1.577 billion in 3Q25[14] - Adjusted EBITDA grew by 46.3% to $143 million in 3Q25[14] - Adjusted EBITDA margin expanded by 240 bps to 9.1% in 3Q25[14] - Operating cash flow increased by 72.1% to $154 million in 3Q25[14] Year-to-Date (YTD) Performance - Total revenue increased by 8.2% to $4.719 billion YTD[14] - Adjusted EBITDA increased by 30.1% to $411 million YTD[14] - Adjusted EBITDA margin expanded by 150 bps to 8.7% YTD[14] - Operating cash flow increased by 26.4% to $247 million YTD[14] Volume and Revenue Drivers - Admissions increased by 5.8% in 3Q25 and 6.7% YTD[12] - Adjusted admissions increased by 2.9% in 3Q25 and 2.4% YTD[12] - Net patient service revenue per adjusted admission grew by 5.8% to $17,252 in 3Q25[14] Full-Year 2025 Guidance - Total revenue guidance reaffirmed at $6.2 billion to $6.45 billion[25] - Adjusted EBITDA guidance revised to $530 million to $555 million[25] - Adjusted admissions growth expected to be between 2.0% and 3.0%[25]