Ardent Health, Inc.
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
ARDT$17.30+8.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-06.
0001628280-26-031299
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001628280-26-055215
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 639 previous paragraphs and 705 current paragraphs.
470 unchanged; 83 reworded; 132 added; 78 removed; 8 previous and 20 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (132)
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programs, which may result in decreased revenue from certain Medicaid supplemental payment programs in future periods
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once program changes take effect.
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payment programs was primarily attributable to the delayed renewal of New Mexico's program during the prior year, which
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Geographic Concentration
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market.
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market.
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period. Thedecrease in total revenue for the three months ended June 30, 2026 was driven by adecrease in net patient service
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revenue per adjusted admission of 3.9%, partially offset by an increase in adjusted admissions of 2.5%. Theincrease in
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outpatient sites of care and growth in physician and urgent care clinic visits partially offset by declines in admissions and
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total surgeries of 1.0% and 2.9%, respectively. Thedecrease in net patient service revenue per adjusted admission was
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primarily attributable to changes in payor mix and a decrease in revenue from Medicaid supplemental payment programs of
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$57.8 million compared to the same prior year period due to the delayed renewal of New Mexico's Medicaid supplemental
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payment program during the prior year, which corresponded to the recognition of two quarters of program revenue during the
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three months ended June 30, 2025.
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Total revenue for thesix months ended June 30, 2026 increased $81.6 million, or 2.6%, compared to the same prior year
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period. The increase in total revenue for thesix months ended June 30, 2026 was driven by anincrease in adjusted
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admissions of 2.3% andan increase in net patient service revenue per adjusted admission of 0.6%. Theincrease in adjusted
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admissions was primarily attributable to an increase in outpatient service revenue driven by a shift from inpatient to
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and 28.0%, respectively, of our total revenue for such periods. During thesix months ended June 30, 2026 and 2025, total
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revenue related to these entities was$934.9 million and$888.6 million, respectively, which represented 29.0% and 28.3%,
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a percentage of total revenue.
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Total revenue for the three months ended June 30, 2026 decreased $23.0 million, or 1.4%, compared to the same prior year
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period. Thedecrease in total revenue for the three months ended June 30, 2026 was driven by adecrease in net patient service
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revenue per adjusted admission of 3.9%, partially offset by an increase in adjusted admissions of 2.5%. Theincrease in
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outpatient sites of care and growth in physician and urgent care clinic visits partially offset by declines in admissions and
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total surgeries of 1.0% and 2.9%, respectively. Thedecrease in net patient service revenue per adjusted admission was
Current report
primarily attributable to changes in payor mix and a decrease in revenue from Medicaid supplemental payment programs of
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$57.8 million compared to the same prior year period due to the delayed renewal of New Mexico's Medicaid supplemental
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payment program during the prior year, which corresponded to the recognition of two quarters of program revenue during the
Current report
three months ended June 30, 2025.
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Total operating expenses increased $55.8 million, and 4.7% as a percentage of total revenue, for the three months ended June
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30, 2026 compared to the same prior year period. When total revenue for the three months ended June 30, 2025 is normalized
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to exclude$54.9 million of revenue related to the additional quarter of New Mexico supplemental payment program revenue,
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total operating expenses increased 1.5% as a percentage of total revenuefor the three months ended June 30, 2026 compared
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Total revenue —Total revenue for the three months ended June 30, 2026 decreased $23.0 million, or 1.4%, compared to the
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same prior year period. Thedecrease in total revenue for the three months ended June 30, 2026 was driven by adecrease in
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net patient service revenue per adjusted admission of 3.9%, partially offset by an increase in adjusted admissions of 2.5%.
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Theincrease in adjusted admissions was primarily attributable to an increase in outpatient service revenue driven by a shift
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from inpatient to outpatient sites of care and growth in physician and urgent care clinic visits partially offset by declines in
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admissions and total surgeries of 1.0% and 2.9%, respectively. Thedecrease in net patient service revenue per adjusted
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Term Loan B Facility Refinancing
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On September 18, 2025, we executed an amendment to our term loan credit agreement (the "Term Loan B Credit
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of the application of prepayments), with the remaining balance due upon the new maturity date in September 2032. All other
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programs. We expect revenue from certain Medicaid supplemental payment programs to decline in 2026 compared to 2025 as
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program changes take effect.
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Geographic Data
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Mexico market.
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Jersey market.
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Total revenue for thethree months ended March 31, 2026 increased $104.6 million, or 7.0%, compared to the same prior year
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period. The increase in total revenue for thethree months ended March 31, 2026 was driven by anincrease in adjusted
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admissions of 2.0% andan increase in net patient service revenue per adjusted admission of 5.5%. Theincrease in adjusted
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admissions reflected growth in total surgeries of 1.2%, offset by a decline in admissions and emergency room visits of 1.1%
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and 3.2%, respectively. Growth in adjusted admissions also was attributable to an increase in outpatient services relative to
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inpatient services. Theincrease in net patient service revenue per adjusted admission was primarily attributable to an increase
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in revenue from Medicaid supplemental payment programs compared to the same prior year period. During thethree months
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supplemental payment programs. The increase in revenue from Medicaid supplemental payment programs during thethree
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months ended March 31, 2026 was primarily attributable to the delayed renewal of New Mexico's Healthcare Delivery and
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Access Act during the prior year.
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Total revenue for thethree months ended March 31, 2026 increased $104.6 million, or 7.0%, compared to the same prior year
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period. The increase in total revenue for thethree months ended March 31, 2026 was driven by anincrease in adjusted
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admissions of 2.0% andan increase in net patient service revenue per adjusted admission of 5.5%. Theincrease in adjusted
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admissions reflected growth in total surgeries of 1.2%, offset by a decline in admissions and emergency room visits of 1.1%
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and 3.2%, respectively. Growth in adjusted admissions also was attributable to an increase in outpatient services relative to
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inpatient services. Theincrease in net patient service revenue per adjusted admission was primarily attributable to an increase
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in revenue from Medicaid supplemental payment programs of$78.9 million compared to the same prior year period. The
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increase in revenue from Medicaid supplemental payment programs during thethree months ended March 31, 2026 was
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primarily attributable to the delayed renewal of New Mexico's Healthcare Delivery and Access Act during the prior year.
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Total operating expenses increased $104.2 million, and increased 0.3% as a percentage of total revenue, for thethree months
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total revenue was primarily driven by increases in other operating expenses and professional fees and a decrease in other non-
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operating gains. The increase in other operating expenses as a percentage of total revenue was primarily driven byincreased
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provider assessments related to Medicaid supplemental payment programs during thethree months ended March 31, 2026 as
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compared to the same prior year period. The increase inprofessional fees as a percentage of total revenue was primarily
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thethree months ended March 31, 2026 as compared to the same prior year period. The decrease in othernon-operating gains
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as a percentage of total revenue was primarily due to the recognition of $21.5 million in insurance recovery proceeds during
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percentage of total revenue was partially offset by decreases in salaries and benefits and supplies as percentages of total
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revenue due to a combination of decreased contract labor, ongoing productivity and supply chain initiatives, and increased
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the same prior year period. The increase in total revenue for thethree months ended March 31, 2026 was driven by an
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increase in adjusted admissions of 2.0% andan increase in net patient service revenue per adjusted admission of 5.5%. The
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increase in adjusted admissions reflected growth in total surgeries of 1.2%, offset by a decline in admissions and emergency
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room visits of 1.1% and 3.2%, respectively. Growth in adjusted admissions also was attributable to an increase in outpatient
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Reworded paragraphs (83)
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progresses. During the three months ended March 31, 2026, no RHTP funds were obligated to or received by us.
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progresses. During thesix months ended June 30, 2026, no RHTP funds were obligated to or received by us.
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revenue from Medicaid supplemental payment programs.
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respectively, related to Medicaid supplemental payment programs. Thedecrease in revenue from Medicaid supplemental
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three months ended March 31, 2026 and 2025, respectively.
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corresponded to the recognition of two quarters of program revenue during the three months ended June 30, 2025. During
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ended March 31, 2026 and 2025, we recorded revenue of$187.8 million and$108.9 million, respectively, related to Medicaid
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thesix months ended June 30, 2026 and 2025, we recorded revenue of$384.9 million and$363.8 million, respectively,
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areas of Tyler, Amarillo and Killeen, Texas. For thethree months ended March 31, 2026, we generated 35.1% of our total
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areas of Tyler, Amarillo and Killeen, Texas. For thesix months ended June 30, 2026, we generated 35.3% of our total
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For thethree months ended March 31, 2026, we generated 22.8% of our total revenue in the Oklahoma market.
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For thesix months ended June 30, 2026, we generated 22.9% of our total revenue in the Oklahoma market.
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Roswell, New Mexico. For thethree months ended March 31, 2026, we generated 17.9% of our total revenue in the New
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Roswell, New Mexico. For thesix months ended June 30, 2026, we generated 17.9% of our total revenue in the New Mexico
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Westwood, New Jersey. For thethree months ended March 31, 2026, we generated 10.9% of our total revenue in the New
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Westwood, New Jersey. For thesix months ended June 30, 2026, we generated 10.3% of our total revenue in the New Jersey
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compared to the same prior year period.
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Total revenue for the three months ended June 30, 2026 decreased $23.0 million, or 1.4%, compared to the same prior year
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2025, total revenue related to these entities was$470.2 million and$428.6 million, respectively, which represented 29.4%
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2025, total revenue related to these entities was$464.7 million and$460.0 million, respectively, which represented 28.6%
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and 28.6%, respectively, of our total revenue for such periods.
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respectively, of our total revenue for such periods.
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driven by higher costs for hospital based providers due to higher patient volumes and rising physician related expenses during
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by increases in professional fees related to higher costs for hospital-based providers due to rising physician-related expenses.
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Other operating expenses — Other operating expenses as a percentage of total revenue were 10.2% for thethree months
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Other operating expenses — Other operating expenses as a percentage of total revenue were 10.8% for the three months
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ended March 31, 2026 compared to 8.7% for the same prior year period. Other operating expenses are comprised primarily of
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ended June 30, 2026 compared to 10.0% for the same prior year period. Other operating expenses are comprised primarily of
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repairs and maintenance, utility, insurance (including professional liability insurance) and provider assessments. Theincrease
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repairs and maintenance, utilities, insurance (including professional liability insurance) and provider assessments. When total
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Income tax expense— We recorded income tax expense of$16.1 million, which equates to an effective tax rate of 21.6%, for
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Income tax expense— We recorded income tax expense of$8.5 million, which equates to an effective tax rate of 19.7%, for
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thethree months ended March 31, 2026 compared to income tax expense of$15.2 million, which equates to an effective tax
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the three months ended June 30, 2026 compared to income tax expense of$26.3 million, which equates to an effective tax
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ended March 31, 2026 compared to the same prior year period. Theincrease in total operating expenses as a percentage of
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ended June 30, 2026 compared to the same prior year period. Theincrease in total operating expenses as a percentage of total
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Medicaid supplemental payment programs and professional and general liability losses compared to the same prior year
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Medicaid supplemental payment programs and professional and general liability expense compared to the same prior year
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Total revenue —Total revenue for thethree months ended March 31, 2026 increased $104.6 million, or 7.0%, compared to
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Total revenue —Total revenue for thesix months ended June 30, 2026 increased $81.6 million, or 2.6%, compared to the
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Salaries and benefits —Salaries and benefits as a percentage of total revenue were 41.3% for thethree months ended March
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Salaries and benefits —Salaries and benefits as a percentage of total revenue were 41.5% for thesix months ended June 30,
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Professional fees — Professional fees as a percentage of total revenue were 19.8% for thethree months ended March 31,
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Professional fees — Professional fees as a percentage of total revenue were 20.0% for thesix months ended June 30, 2026
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Supplies —Supplies as a percentage of total revenue were 16.8% for thethree months ended March 31, 2026 compared to
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Supplies —Supplies as a percentage of total revenue were 17.0% for thesix months ended June 30, 2026 compared to 16.8%
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31, 2026 compared to 43.9% for the same prior year period. Thedecrease in salaries and benefits as a percentage of total
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for the same prior year period.
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Rents and leases — Rents and leases were$27.1 million and$27.8 million for thethree months ended March 31, 2026 and
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Rents and leases — Rents and leases were$55.0 million and$55.6 million for thesix months ended June 30, 2026 and 2025,
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Lease and other lease agreements with Ventas for certain medical office buildings. Rents and leases, related party, were$38.7
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Lease and other lease agreements with Ventas for certain medical office buildings. Rents and leases, related party, were$77.4
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in other operating expenses as a percentage oftotal revenue was primarily due to increases in provider assessments related to
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total revenue was primarily due to increases in provider assessments related to Medicaid supplemental payment programs and
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Interest expense — Interest expense was$12.2 million and$14.2 million for thethree months ended March 31, 2026 and
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Interest expense — Interest expense was$24.8 million and$28.9 million for thesix months ended June 30, 2026 and 2025,
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Other non-operating gains — Other non-operating gains were$5.9 million and$21.3 million for thethree months ended
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Other non-operating gains — Other non-operating gains were$5.9 million and$20.7 million for thesix months ended June
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March 31, 2026 and 2025, respectively. During thethree months ended March 31, 2025, other non-operating gains included a
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30, 2026 and 2025, respectively. During thesix months ended June 30, 2025, other non-operating gains included a gain on
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gain on business interruption insurance proceeds of$21.5 million related tothe Cybersecurity Incident.
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business interruption insurance proceeds of$21.5 million related to a cybersecurity incident that impacted our operations and
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technology systems in November 2023 (the "Cybersecurity Incident"). The increase in total operating expenses as a
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information technology systems in November 2023 (the "Cybersecurity Incident").
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Net income attributable to noncontrolling interests— During thethree months ended March 31, 2026 and 2025, net income
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Net income attributable to noncontrolling interests— During thesix months ended June 30, 2026 and 2025, net income
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attributable to noncontrolling interests was$18.6 million and$17.6 million, respectively, which consists of net income
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attributable to noncontrolling interests was$36.4 million and$40.3 million, respectively, which consists of net income
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restructuring and enterprise system conversion costs; equity-based compensation expense; and (income) loss from
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restructuring and enterprise system conversion costs; equity-based compensation expense; and loss (income) from
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(c)Other expenses, including development, restructuring and enterprise system conversion costs include (i) salaries and benefits of$4.3
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(c)Other expenses, including development, restructuring and enterprise system conversion costs consist of (i) enterprise restructuring costs,
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March 31, 2026 and 2025, respectively, and (iii) other expenses of$0.2 million for each of thethree months ended March 31, 2026 and
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respectively, and$13.1 million and$2.0 million for thesix months ended June 30, 2026 and 2025, respectively, and (iii) other expenses
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At March 31, 2026, we had total cash and cash equivalents of$609.7 million and available liquidity of$878.9 million. Our
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At June 30, 2026, we had total cash and cash equivalents of$724.5 million and available liquidity of$992.5 million. Our
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available liquidity was comprised of$609.7 million of total cash and cash equivalents plus$269.2 million in available
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available liquidity was comprised of$724.5 million of total cash and cash equivalents plus$268.0 million in available
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March 31, 2026, our net leverage ratio was 1.0 x, and our lease-adjusted net leverage ratio was 2.6 x. Our lease-adjusted net
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June 30, 2026, our net leverage ratio was 0.8 x, and our lease-adjusted net leverage ratio was 2.6 x. Our lease-adjusted net
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During thethree months ended June 30, 2026 and 2025, we recorded revenue of$197.1 million and$254.9 million,
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related to Medicaid supplemental payment programs.
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Operating Results Summary for the Six Months Ended June 30, 2026 and 2025
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The following table sets forth, for the periods indicated, the consolidated results of our operations expressed in dollars and as
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to the same prior year period. Theincrease in total operating expenses as a percentage of total revenue was primarily driven
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Salaries and benefits —Salaries and benefits as a percentage of total revenue were 41.7% for the three months ended June
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Professional fees — Professional fees as a percentage of total revenue were 20.2% for the three months ended June 30, 2026
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Supplies —Supplies as a percentage of total revenue were 17.2% for the three months ended June 30, 2026 compared to
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during the prior year period, was primarily due to increases in provider assessments related to Medicaid supplemental
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payment programs and professional and general liability expense compared to the same prior year period.
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Net income attributable to noncontrolling interests— Duringthe three months ended June 30, 2026 and 2025, net income
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liability companies ("LLCs") and consolidated by us. Income from operations before income taxes related to these LLCs was
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revenue was primarily attributable to increases in professional fees driven by higher costs for hospital-based providers due to
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months ended June 30, 2026 compared to the same prior year period.
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Rents and leases, related party— Rents and leases, related party, consisted of lease expense related to the Ventas Master
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Income tax expense— We recorded income tax expense of$24.6 million, which equates to an effective tax rate of 20.9%, for
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attributable to minority partners’ interests in hospitals and ambulatory services that are owned and operated though limited
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the Ventas Master Lease and other lease agreements with Ventas for certain medical office buildings.
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agreement governing the Term Loan B Facility(the "Term Loan B Credit Agreement")provided funding up to a principal
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million, respectively, related to the Ventas Master Lease and other lease agreements with Ventas for medical office buildings and rent
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2.25% and from the base rate plus 1.75% to the base rate plus 1.25%, (ii) extended the maturity date to September 18, 2032
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and (iii) increased the baskets for certain fixed dollar negative covenants and (iv) reestablished principal payments under the
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amended Term Loan B Facility, which are due in consecutive equal quarterly installments of 0.25% of the refinanced
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$777.5 million principal amount beginning on December 31, 2025 (subject to certain reductions from time to time as a result
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thethree months ended March 31, 2025 related to a cybersecurity incident that impacted our operations and information
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respectively, related to the Ventas Master Lease and other lease agreements with Ventas for certain medical office buildings.
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interest rate by 50 basis points from Term SOFR plus 3.25% to Term SOFR plus 2.75% and from the base rate plus 2.25% to
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September 18, 2025, we executed an amendment to refinance the outstanding term loans under our Term Loan B Credit