Financial Data and Key Metrics Changes - Total revenue grew more than 6% year-over-year in Q4 2025, with full-year revenue increasing over 5% [8][10] - Adjusted EBITDA declined 10% to $104.7 million from $116 million in the prior year, with a margin decrease to 9% from 9.8% [9][10] - Earnings per common share from continuing operations was $0.16, compared to a diluted loss per common share of $0.19 in the prior year [9] Business Line Data and Key Metrics Changes - Inpatient Rehab Hospital Division revenue increased over 15% year-over-year to $339.2 million, with Adjusted EBITDA rising 11% to $69.2 million [10] - Critical Illness Recovery Hospital Division revenue increased nearly 5% to $629.7 million, with Adjusted EBITDA growing 5% to $66.4 million [11] - Outpatient Rehab Division revenue increased to $324.6 million from $319.6 million, driven by nearly 5% growth in patient visits, but net revenue per visit declined to $98 from $102 [12] Market Data and Key Metrics Changes - The company added 150 beds in Q4 2025, with a total of 212 rehab beds added for the full year [5][6] - The average daily census grew nearly 10% in the Inpatient Rehab Hospital Division, with occupancy improving to 82% from 81% [10] Company Strategy and Development Direction - The company is focused on expanding its inpatient rehabilitation business, with plans to add 399 beds across 2026 and 2027 [6][8] - A cash dividend of $0.0625 per share was approved, reflecting a commitment to returning value to shareholders [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the outpatient division, indicating that recent health insurance expenses were likely one-time impacts [20] - The company expects revenue for 2026 to be in the range of $5.6 billion to $5.8 billion, with Adjusted EBITDA projected between $520 million and $540 million [15] Other Important Information - The company received a non-binding indication of interest for a take-private proposal, which is under review by a special committee [4] - The company ended the quarter with $1.8 billion of debt and $26.5 million of cash on the balance sheet [13] Q&A Session Summary Question: Impact of higher health costs on outpatient business - Management indicated that health insurance expenses impacted the outpatient division by approximately $5 million, with variable discounts adding around $6 million, totaling about $11 million [18] Question: Guidance and market pressures - Management expressed confidence in the inpatient rehab division and cautiously optimistic outlook for outpatient, suggesting that the $11 million impact was likely a one-time issue [20] Question: Special committee and strategic alternatives - Management was unable to provide further details on the special committee's review process [25] Question: Weather impact on segments - Management noted that there was no significant impact on inpatient divisions, but outpatient experienced some effects due to weather [26] Question: Payer mix and variable discounts - Management explained that the outpatient division faced challenges due to a shift in payer mix and higher managed care discounts, impacting net revenue per visit [40] Question: Labor and staffing issues - Management reported improvements in labor costs and staffing levels, with no significant threats from union activities [68]