Nutex Health (US:NUTX)2025-11-18 21:57Employment and Operations - As of June 30, 2025, Nutex Health Inc. employed approximately 846 full-time employees and contracted 255 doctors, partnering with over 2,100 physicians within its networks[121]. - The company operates 24 hospital facilities across 11 states, implementing innovative healthcare models such as micro-hospitals and specialty hospitals[120]. - The population health management division includes a management services organization and operates under contracts with independent physician associations[126]. - The company plans to open three new hospital facilities by the end of 2025, which are currently under construction or in advanced planning stages[146]. - The company expects to launch one to three additional independent physician associations (IPAs) per year, primarily in areas surrounding existing micro-hospitals[146]. Revenue and Financial Performance - For the three months ended June 30, 2025, 97% of net patient service revenue was from insurance, compared to 93% for the same period in 2024, indicating a 4% increase in insurance revenue[129]. - The hospital division's revenue is primarily derived from federal agencies, private insurance carriers, and patients, with over 98% of net patient service revenue coming from non-patient third parties[128]. - In the hospital division, revenue for the three months ended June 30, 2025, was $236.3 million, compared to $67.6 million for the same period in 2024, representing a significant increase[160]. - Total revenue for the six months ended June 30, 2025, was $455.8 million, up from $143.5 million in the same period in 2024, indicating a growth of approximately 217%[161]. - Hospital Division revenue for the three months ended June 30, 2025 totaled $236.3 million, an increase of $168.7 million or 249.5% compared to $67.6 million for the same period in 2024[165]. - Hospital Division revenue for the six months ended June 30, 2025 totaled $440.2 million, an increase of $312.6 million or 244.9% compared to $127.6 million for the same period in 2024[180]. Profitability and Loss - The hospital division's gross profit for the three months ended June 30, 2025, was $125.6 million, compared to $22.8 million in the prior year, reflecting a substantial improvement[161]. - The population health management division reported a gross loss of $536,000 for the three months ended June 30, 2025, compared to a loss of $230,000 in the same period in 2024[161]. - Net loss attributable to Nutex Health Inc. increased to $3.5 million, or income of $0.60 per diluted share, for the six months ended June 30, 2025, compared to a net loss of $0.4 million, or loss of $0.07 per share, for the same period in 2024[178]. - The net income attributable to Nutex Health Inc. for the six months ended June 30, 2025, was a loss of $3.5 million, compared to a loss of $728,000 in the same period in 2024[161]. - Net loss attributable to Nutex Health Inc. decreased to $17.7 million, or loss of $2.95 per diluted share, for the three months ended June 30, 2025, compared to a net loss of $0.4 million, or loss of $0.07 per share, for the same period in 2024[162]. Adjusted EBITDA - The company reported an adjusted EBITDA of $144.4 million for the six months ended June 30, 2025, compared to $6.4 million in the same period in 2024[161]. - Adjusted EBITDA for the three months ended June 30, 2025 increased to $71.6 million from $6.8 million for the comparable period in 2024[163]. - Adjusted EBITDA for the three months ended June 30, 2025, was $71.6 million, a decrease from $78.3 million in the prior year[204]. Costs and Expenses - Corporate and other costs totaled $91.2 million for the three months ended June 30, 2025, an increase of 428.6% compared to $17.3 million for the same period in 2024[174]. - The total cost of arbitration for Nutex hospital and professional services was $48.0 million for the three months ended June 30, 2025, and $74.3 million for the six months ended June 30, 2025[145]. - Total finance lease payments for the six months ended June 30, 2025, amounted to $13.0 million, which should be deducted from EBITDA[204]. Cash and Financing - As of June 30, 2025, the company had $96.7 million of cash and equivalents, compared to $40.6 million as of December 31, 2024[194]. - As of June 30, 2025, the company had cash from operating activities of $78.2 million, primarily driven by significantly higher net income due to favorable developments in the arbitration process[202]. - The company had remaining availability of $4.1 million under outstanding lines of credit as of June 30, 2025[199]. - The company is currently working to supplement or replace smaller lines of credit with larger financing commitments, subject to market conditions[198]. - The company reported total repayments of lines of credit and notes payable of $6.0 million during the period[202]. Regulatory and Legal Matters - The No Surprises Act (NSA) was enacted to protect patients from surprise medical bills, establishing an IDR process for billing disputes between providers and insurers[130]. - The Independent Dispute Resolution (IDR) process is designed to take no more than 30 days, but in practice, it can take between three to five months for payment adjustments to be received[139]. - The company engaged HaloMD on July 1, 2024, to assist in challenging underpaid out-of-network claims, highlighting the complexity of the federal arbitration process[137]. Mergers and Acquisitions - The merger with Clinigence Holdings, Inc. was accounted for as a reverse business combination, with Nutex Health Holdco LLC treated as the accounting acquirer[119]. - The company made payments for acquisitions of businesses, net of cash acquired, totaling $2.6 million[202]. Shareholder Actions - On August 14, 2025, the Board authorized a stock repurchase program of up to $25.0 million to enhance shareholder value[151].