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 Partners, Inc.(ARDT) - 2025 Q3 - Quarterly Report