Nutex Health (US:NUTX)2025-11-19 21:07Employment and Operations - As of September 30, 2025, Nutex Health Inc. employed approximately 880 full-time employees and contracted 255 doctors, partnering with over 2,100 physicians within its networks[135]. - The company operates 24 hospital facilities across 11 states, implementing innovative healthcare models including micro-hospitals and specialty hospitals[134]. - The population health management division includes a management services organization and operates as a primary beneficiary of certain physician-affiliated entities[140]. - The company has consolidated certain Real Estate Entities as Variable Interest Entities (VIEs) due to its hospital entities being guarantors or co-borrowers under mortgage loans[138]. - The company acquired 51% membership interest in an Indiana-based limited liability company for $2.3 million in cash, strengthening operations in Indiana[180]. Financial Performance - For the three months ended September 30, 2025, total revenue was $267.8 million, a 239.5% increase from $78.8 million in the same period of 2024[169]. - The hospital division generated revenue of $260.2 million for the three months ended September 30, 2025, up 262.8% from $71.7 million in the same period of 2024[172]. - Net income attributable to Nutex Health Inc. was $55.4 million, or $8.27 per diluted share, for the three months ended September 30, 2025, compared to a net loss of $8.8 million, or a loss of $1.72 per share, for the same period in 2024[170]. - Adjusted EBITDA for the three months ended September 30, 2025, increased to $98.5 million from $9.7 million for the comparable period in 2024[170]. - Revenue for the hospital division totaled $700.5 million for the nine months ended September 30, 2025, an increase of 251.4% compared to $199.4 million for the same period in 2024[190]. - Net income attributable to Nutex Health Inc. was $59.0 million, or $9.63 per diluted share, for the nine months ended September 30, 2025, compared to a net loss of $8.8 million, or a loss of $1.72 per share, for the same period in 2024[187]. - Adjusted EBITDA for the nine months ended September 30, 2025, increased to $243.0 million from $16.1 million for the comparable period in 2024[188]. - The company reported an EBITDA of $142,871,000 for the nine months ended September 30, 2025, compared to $19,942,000 in the same period of 2024[216]. Patient Services and Revenue Sources - The hospital division recognized net patient service revenue with over 99% of this revenue coming from insurers, federal agencies, and other non-patient third parties[142]. - For the three months ended September 30, 2025, insurance accounted for 97% of total patient service revenue, up from 95% in the same period of 2024[143]. - The number of patient visits in the hospital division increased to 46,232 for the three months ended September 30, 2025, an 11.0% increase from 41,668 in the same period in 2024[173]. - Total patient visits increased by 13.9% during the nine months ended September 30, 2025, totaling 140,074 visits compared to 122,944 visits in 2024[191]. - Revenue per visit increased due to higher rates obtained through the Independent Dispute Resolution process and increased utilization of higher paid services[178]. Costs and Expenses - Corporate and other costs totaled $153.4 million for the nine months ended September 30, 2025, an increase of 301.4% compared to $38.2 million for the same period in 2024[201]. - Higher income tax expense of $55.1 million for the nine months ended September 30, 2025, compared to $5.9 million for the same period in 2024, an increase of $49.2 million[187]. - Income tax expense for the three months ended September 30, 2025, is $27,140,000, compared to $4,585,000 in the same period of 2024, indicating a substantial increase[216]. - Finance lease payments deducted from EBITDA for the nine months ended September 30, 2025, amount to $19,512,000, compared to $13,957,000 in the prior year[216]. - Total depreciation and amortization for the three months ended September 30, 2025, is $5,003,000, slightly up from $4,972,000 in 2024[216]. Arbitration and Regulatory Matters - Nutex Health has engaged HaloMD to support out-of-network claims and navigate the complexities of the arbitration process under the No Surprises Act[151]. - The Independent Dispute Resolution (IDR) process can take between three to five months before payments are received, despite being intended to take no more than 30 days[153]. - The total cost of arbitration for Nutex hospital and professional services was $41.9 million for the three months ended September 30, 2025[158]. - The Federal IDR program dispute closure volume rose month over month, with CIDREs closing 264,805 disputes in May 2025, an 8% increase from April 2025[156]. - The No Surprises Act, effective January 1, 2022, aims to protect patients from surprise medical bills and establishes an IDR process for billing disputes[144]. Future Plans and Developments - The company plans to open three new hospital facilities by the end of 2025, which are either under construction or in advanced planning stages[160]. - There have been no material changes in the company's primary market risk exposures since the 2024 Form 10-K[218]. - The company has not reported any material changes in its significant accounting policies since December 31, 2024[217]. - The updated presentation of Adjusted EBITDA aims to enhance transparency regarding the company's operating performance[215].