Ardent Health, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
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.
Sep 30, 2026 · Filed Nov 5, 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 2026-06-30; filed 2026-08-10.
0001628280-26-055215
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001628280-26-071073
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 705 previous paragraphs and 780 current paragraphs.
417 unchanged; 162 reworded; 193 added; 119 removed; 7 previous and 8 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 (193)
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events.
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Sale of Interest in Kansas JV
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On September 28, 2026, the Company entered into a definitive agreement to sell its 70.5% equity interest in St. Francis to the
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University of Kansas Hospital Authority for $58.4 million. The sale is expected to close in the fourth quarter of 2026, subject
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to customary closing conditions.
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assessments or taxes, or increasing the rates of existing provider assessments, and, beginning in the federal fiscal year 2028,
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phases down the safe harbor threshold for existing provider taxes in Medicaid expansion states, while also limiting the
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rate.
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ACA plans. We expect the expiration of the enhanced subsidies to adversely impact results in 2026, and the OBBBA reforms
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to ACA marketplace exchange-based plans to adversely impact results in future periods, partially offset by our ongoing
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resiliency and cost reduction initiatives.
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through 2030. In December 2025, CMS awarded funding allocations to all 50 states. Each state is responsible for determining
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2025, we recorded revenue of$541.8 million and$550.3 million, respectively, related to Medicaid supplemental payment
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programs.
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Mexico market.
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Jersey market.
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Total revenue for the three months ended September 30, 2026 increased $48.1 million, or 3.1%, compared to the same prior
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adjusted admissions of 2.9% and anincrease in net patient service revenue per adjusted admission of 0.7%. Theincrease in
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adjusted admissions was primarily attributable to a growth in outpatient service revenue resulting from a combination of
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from inpatient to outpatient sites of care. Theincrease in adjusted admissions was also attributable to increases in admissions
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and emergency room visits of 0.1% and 1.7%, respectively, and partially offset by a decrease in total surgeries of 1.9%
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the three months ended September 30, 2025 is adjusted to exclude the$42.6 million reduction to revenue attributable to the
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change in accounting estimate, net patient service revenue per adjusted admission was$17,730 for the three months ended
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September 30, 2025, resulting in a decrease in net patient service revenue per adjusted admission of 2.0% for the three
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months ended September 30, 2026 compared to the adjusted prior year period. This decrease was primarily attributable to a
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decrease in revenue from Medicaid supplemental payment programs of$29.6 million compared to the same prior year period.
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Total revenue for thenine months ended September 30, 2026 increased $129.7 million, or 2.7%, compared to the same prior
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year period. The increase in total revenue for thenine months ended September 30, 2026 was driven by anincrease in
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adjusted admissions of 2.5% andan increase in net patient service revenue per adjusted admission of 0.6%. Theincrease in
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adjusted admissions was primarily attributable to an increase in outpatient service revenue resulting from a combination of
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from inpatient to outpatient sites of care. Theincrease in adjusted admissions was partially offset by decreases in admissions,
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total surgeries, and emergency room visits of 0.7%,1.2%, and 0.4%, respectively, compared to the prior year period.
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Total revenue for the three months ended September 30, 2026 increased $48.1 million, or 3.1%, compared to the same prior
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adjusted admissions of 2.9% and anincrease in net patient service revenue per adjusted admission of 0.7%. Theincrease in
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adjusted admissions was primarily attributable to a growth in outpatient service revenue resulting from a combination of
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from inpatient to outpatient sites of care. Theincrease in adjusted admissions was also attributable to increases in admissions
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and emergency room visits of 0.1% and 1.7%, respectively, and partially offset by a decrease in total surgeries of 1.9%
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the three months ended September 30, 2025 is adjusted to exclude the impact of the$42.6 million reduction to revenue
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attributable to the change in accounting estimate, net patient service revenue per adjusted admission was$17,730 for the three
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months ended September 30, 2025, resulting in a decrease in net patient service revenue per adjusted admission of 2.0% for
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security laws, regulations, standards and other requirements could adversely affect our business, results of operations and
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increasing the rates of existing provider assessments, for state fiscal years beginning after October 1, 2026, while also
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effective tax rate.
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significant cost increases for ACA plans. We also expect these reforms to ACA marketplace exchange-based plans to
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adversely impact results in 2026, partially offset by our ongoing resiliency and cost reduction initiatives.
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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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respectively, related to Medicaid supplemental payment programs. Thedecrease in revenue from Medicaid supplemental
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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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corresponded to the recognition of two quarters of program revenue during the three months ended June 30, 2025. During
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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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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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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
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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 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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to exclude$54.9 million of revenue related to the additional quarter of New Mexico supplemental payment program revenue,
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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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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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Report on Form 10-Q for the quarter ended June 30, 2026 (this "Quarterly Report") and our audited consolidated financial
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Report on Form 10-Q for the quarter ended September 30, 2026 (this "Quarterly Report") and our audited consolidated
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statements for the year ended December 31, 2025 and related notes contained in our Annual Report. The following
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financial statements for the year ended December 31, 2025 and related notes contained in our Annual Report. The following
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(11) inability to successfully complete acquisitions or strategic JVs or inability to realize all of the anticipated benefits; (12)
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(11) inability to successfully complete acquisitions, divestitures or strategic JVs or inability to realize all of the anticipated
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liabilities because of professional liability and other claims brought against our hospitals, physician practices, outpatient
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benefits; (12) liabilities because of professional liability and other claims brought against our hospitals, physician practices,
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facilities or other business operations; (13) exposure to certain risks and uncertainties by the JVs through which we conduct a
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outpatient facilities or other business operations; (13) exposure to certain risks and uncertainties by the JVs through which we
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significant portion of our operations, including anticipated synergies of past acquisitions and the risk that transactions may
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conduct a significant portion of our operations, including anticipated synergies of past acquisitions and the risk that
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not receive necessary government clearances; (14) failure to obtain drugs and medical supplies at favorable prices or
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transactions may not receive necessary government clearances; (14) failure to obtain drugs and medical supplies at favorable
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sufficient volumes; (15) operational, legal and financial risks associated with outsourcing functions to third parties; (16) our
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prices or sufficient volumes; (15) operational, legal and financial risks associated with outsourcing functions to third parties;
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facilities are heavily concentrated in Texas and Oklahoma, which makes us sensitive to regulatory, economic and competitive
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(16) our facilities are heavily concentrated in Texas and Oklahoma, which makes us sensitive to regulatory, economic and
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conditions and changes in those states; (17) negative impact of severe weather, climate change, and other factors beyond our
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competitive conditions and changes in those states; (17) negative impact of severe weather, climate change, and other factors
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control, which could restrict patient access to care or cause one or more facilities to close temporarily or permanently; (18)
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beyond our control, which could restrict patient access to care or cause one or more facilities to close temporarily or
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risks related to the Master Lease with Ventas ("Ventas Master Lease") and its restrictions and limitations on our business;
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permanently; (18) risks related to the Master Lease with Ventas ("Ventas Master Lease") and its restrictions and limitations
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(19) the impact of our significant indebtedness and the ability to refinance such indebtedness on acceptable terms; (20) our
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on our business; (19) the impact of our significant indebtedness and the ability to refinance such indebtedness on acceptable
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failure to comply with complex laws and regulations applicable to the healthcare industry or to adjust our operations in
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terms; (20) our failure to comply with complex laws and regulations applicable to the healthcare industry or to adjust our
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response to changing laws and regulations; (21) the impact of governmental claims or governmental investigations, payor
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operations in response to changing laws and regulations; (21) the impact of governmental claims or governmental
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audits and litigation brought against our hospitals, physician practices, outpatient facilities or other business operations; (22)
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investigations, payor audits and litigation brought against our hospitals, physician practices, outpatient facilities or other
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actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards and
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business operations; (22) actual or perceived failures to comply with applicable data protection, privacy and security laws,
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other requirements; (23) the impact of a deterioration of public health conditions associated with a future pandemic, epidemic
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regulations, standards and other requirements; (23) the impact of a deterioration of public health conditions associated with a
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financial condition; (25) inability to or delay in building, acquiring, selling, renovating or expanding our healthcare facilities;
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future pandemic, epidemic or outbreak of infectious disease; (24) inability to or delay in building, acquiring, selling,
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(26) failure to comply with federal and state laws relating to Medicare and Medicaid enrollment, permit, licensing and
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renovating or expanding our healthcare facilities; (25) failure to comply with federal and state laws relating to Medicare and
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accreditation requirements; (27) the results of our efforts to use technology, including artificial intelligence ("AI") and
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Medicaid enrollment, permit, licensing and accreditation requirements; (26) the results of our efforts to use technology,
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machine learning, to drive efficiencies, better outcomes and an enhanced patient experience; (28) our status as a controlled
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including artificial intelligence ("AI") and machine learning, to drive efficiencies, better outcomes and an enhanced patient
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company; (29) conflicts of interest between our controlling stockholder and other holders of our common stock; and (30)
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experience; (27) our status as a controlled company; (28) conflicts of interest between our controlling stockholder and other
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other risk factors described in our filings with the SEC, including the Annual Report.
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holders of our common stock; and (29) other risk factors described in our filings with the SEC, including the Annual Report.
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We caution you that the foregoing list may not contain all the forward-looking statements made in this Quarterly Report. You
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We caution you that the foregoing list may not contain all of the risks and uncertainties that may affect the forward-looking
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should not rely upon forward-looking statements as predictions of future events.
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statements made in this Quarterly Report. You should not rely upon forward-looking statements as predictions of future
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On July 4, 2025, Congress passed the OBBBA, its budget reconciliation act for fiscal year 2025. The OBBBA includes
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On July 4, 2025, the OBBBA, a budget reconciliation act for fiscal year 2025, was signed into law. The OBBBA includes
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received by state Medicaid programs. The law prohibits states from establishing new provider assessments or taxes, or
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received by state Medicaid programs. Effective upon enactment, the law prohibits states from establishing new provider
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limiting the structure and application of such assessments. The OBBBA also directs the U.S. Department of Health and
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structure and application of such assessments. The OBBBA also directs the U.S. Department of Health and Human Services
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Human Services to revise regulations governing state directed payment ("SDP") arrangements to cap total payment rates paid
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to revise regulations governing state directed payment ("SDP") arrangements to cap total payment rates paid by Medicaid
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by Medicaid managed care organizations for certain services at Medicare payment rates instead of average commercial rates
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managed care organizations for certain services at Medicare payment rates instead of average commercial rates and imposes
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and imposes lower caps in Medicaid expansion states. The revised regulations apply to SDP arrangements established on or
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lower caps in Medicaid expansion states. The revised regulations apply to SDP arrangements established on or after July 4,
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after July 4, 2025 unless the program meets certain grandfathering criteria. The OBBBA provides that payments under
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2025 unless the program meets certain grandfathering criteria. The OBBBA provides that payments under grandfathered
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grandfathered programs will be reduced beginning January 1, 2028.
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programs will be reduced beginning January 1, 2028.
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Internal Revenue Code ("IRC") Section 163(j) and (ii) the allowance of 100% bonus depreciation for qualifying property
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Internal Revenue Code Section 163(j) and (ii) the allowance of 100% bonus depreciation for qualifying property placed in
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placed in service after January 19, 2025. The provisions of the OBBBA are not expected to have a material impact on our
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service after January 19, 2025. The provisions of the OBBBA are not expected to have a material impact on our effective tax
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For example, the OBBBA effectively ends automatic renewals of coverage by requiring pre-enrollment verification of
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For example, beginning with plan year 2028, the OBBBA effectively ends automatic renewals of coverage by requiring pre-
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eligibility. In addition to ending automatic renewals of ACA plans, the federal enhanced subsidies of ACA marketplace
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enrollment verification of eligibility. In addition, the federal enhanced subsidies of ACA marketplace exchange-based plans
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exchange-based plans expired at the end of 2025 and were not extended by the OBBBA, which is likely to result in
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expired at the end of 2025 and were not extended by the OBBBA, which is likely to result in significant cost increases for
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modernization of healthcare delivery in rural communities nationwide. CMS indicated that funding allocations will be made
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modernization of healthcare delivery in rural communities nationwide. The RHTP authorizes total federal funding of $50
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year period. Theincrease in total revenue for the three months ended September 30, 2026 was driven by anincrease in
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year period. Theincrease in total revenue for the three months ended September 30, 2026 was driven by anincrease in
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compared to the prior year period.
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September 30, 2026. Thedecrease in total operating expenses as a percentage of total revenue for the three months ended
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to the same prior year period. Theincrease in total revenue for the three months ended September 30, 2026 was driven by an
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primarily attributable to the ongoing execution of strategic productivity initiatives, including a reduction in contract labor of
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related to the Ventas Master Lease and other lease agreements with Ventas for certain medical office buildings.
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(a)Cybersecurity Incident recoveries, net primarily represent gains on insurance recovery proceeds associated with the Cybersecurity Incident, net of
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or outbreak of infectious disease; (24) actual or perceived failures to comply with applicable data protection, privacy and
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billion available annually from federal fiscal years 2026 through 2030. Funding may be awarded by states through
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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 June 30, 2026 compared to the same prior year period. Theincrease in total operating expenses as a percentage of total
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incremental information technology and litigation costs.
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the Ventas Master Lease and other lease agreements with Ventas for certain medical office buildings.
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terminating pre-existing contracts at acquired facilities, (iii) third-party professional fees and expenses, salaries and benefits, and other