Financial Data and Key Metrics Changes - Total revenue for Q1 2025 reached $211.8 million, a 214% increase from $67.5 million in Q1 2024 [7][15] - Adjusted EBITDA was $72.8 million, up from a negative $0.4 million in the same quarter last year [7][20] - Net income attributable to Newtek Health was $14.6 million or $2.65 per basic share, compared to a net loss of $0.4 million or a loss of $0.08 per share in Q1 2024 [7][19] - Cash in the bank increased to $87.7 million from $43.5 million at year-end 2024 [8][21] - Net cash flow from operating activities was $51 million, compared to $3.1 million in the same period in 2024 [8][22] Business Line Data and Key Metrics Changes - The hospital division generated $203.9 million in revenue, a 240% increase from $60 million in Q1 2024, with $105 million tied to arbitration efforts [15] - Mature hospitals saw a revenue increase of 860.5% compared to the same period in 2024 [15] - The population health division revenue increased by 5.4% to $7.8 million from $7.4 million in Q1 2024 [16][28] Market Data and Key Metrics Changes - Total patient visits reached 48,269, a 20.5% increase from 40,068 in Q1 2024 [6][29] - Mature hospitals achieved a 5.3% increase in visits, indicating sustained demand for services [6][16] Company Strategy and Development Direction - The company plans to open three additional hospitals in 2025, with a pipeline extending to 2028 [12][25] - The growth strategy emphasizes increasing patient volume, expanding services, optimizing revenue through efficient management, and maintaining disciplined cost control [13] - The micro hospital model is seen as a key growth driver, providing efficient access and high-quality care [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the arbitration process, indicating a high win rate and improved collections [10][12] - The company is well-positioned for continued growth, with a strong balance sheet and a clear pipeline of projects [14][25] - Management noted that the current operating environment remains favorable, with no significant payer behavioral changes observed [10][12] Other Important Information - The arbitration process has been refined, with a high percentage of billable visits submitted through the arbitration portal [9][10] - Legislative developments, such as the proposed Murphy Act, could enhance the arbitration process and improve payment timeliness [12][81] Q&A Session Summary Question: Is Q1 performance repeatable in future quarters? - Management indicated that while Q1 shows positive trends, it is still early in Q2 to predict consistency [37][40] Question: How is the company managing prior quarter revenue recognition? - Management noted that they are improving accuracy in revenue recognition based on historical data and trends [60][62] Question: Will the addition of new arbitrators accelerate the process? - Management believes that adding more arbitrators will help reduce backlog and improve the arbitration process [66][68] Question: How does arbitration revenue impact future periods? - Management clarified that there is currently no penalty for timely payments, but future legislative changes could enhance revenue [80][82] Question: Was there any seasonality affecting hospital visits? - Management confirmed that this year's flu season was longer, contributing to increased patient visits, but overall growth is attributed to improved community awareness and service quality [86][88]