Financial Data and Key Metrics Changes - The company estimates a potential revenue impact of $50 million to $100 million due to the expiration of enhanced subsidies, primarily affecting the acute care division [5][4] - Same-store revenue growth is projected to be in the 5% to 7% range, with a midpoint of 6%, split evenly between price and volume [16][17] - The company experienced a $25 million EBITDA loss in Q2 due to delays in obtaining DEEM status for Cedar Hill Hospital, with an additional estimated loss of $25 million in the second half of the year [20][21] Business Line Data and Key Metrics Changes - The acute care division is expected to see a return to historically normative growth, while surgical volumes have been somewhat soft compared to previous years [16][17] - The behavioral health segment is experiencing labor shortages, impacting the ability to meet demand, but improvements in recruitment are anticipated [36][37] Market Data and Key Metrics Changes - Approximately 6% of adjusted acute admissions are exchange patients, which is lower than peers like Tenet and HCA, indicating geographical differences in patient demographics [9] - The company expects to capture more market share in behavioral care, particularly in outpatient settings, as care delivery becomes more fragmented [40][41] Company Strategy and Development Direction - The company is prepared to implement cost efficiencies and productivity improvements in response to potential revenue reductions from lost exchange volumes and Medicaid payments [10][12] - M&A activity is being considered, particularly for underperforming not-for-profit hospitals, but recent market conditions have made such opportunities less frequent [48][49] Management's Comments on Operating Environment and Future Outlook - Management describes the current operating environment as the first clean post-COVID year, with expectations for sustainable growth rates [16][17] - Labor pressures have eased, with wage inflation stabilizing at more normative levels, although challenges remain in hiring for behavioral health facilities [25][36] Other Important Information - The company is leveraging technology, including AI, to improve efficiency in revenue cycle management and clinical operations [32][33] - Approval for three Medicaid supplemental payment programs could add $150 million to $200 million in annual benefits if approved [14] Q&A Session Summary Question: Impact of enhanced subsidies expiration - Management provided estimates of $50 million to $100 million in potential revenue loss, primarily in the acute care division [5][4] Question: Volume trends and payer types - Management indicated that surgical volumes have been soft but expect a return to normative levels as the year progresses [16][17] Question: Cedar Hill Hospital's financial progression - Cedar Hill Hospital is expected to reach divisional margins within 24 months of opening, pending DEEM status approval [22][23] Question: Labor market conditions - Labor pressures have stabilized, with wage inflation returning to more normative levels, although some challenges remain in hiring [25][36] Question: Outlook for behavioral rates - Management anticipates a sustainable growth model for the behavioral business with same-store revenue growth targets in the 6% to 8% range [45][46] Question: M&A outlook - The company remains open to M&A opportunities, particularly for underperforming hospitals, but recent market conditions have limited such transactions [48][49]