Ben Rossi

Filton reported no material change in denials or patient status changes and credited revenue cycle investment with holding the line.

Filton confirmed the drag was in line, noted Medicare certification in late June, and said the 2025 Florida DPP program does not apply.

Filton said Medicaid utilization slightly declining as expected. Outside of HIX, payer mix changes minor and consistent with full-year expectations. No signs of unusual eligibility friction beyond what was anticipated.

Filton said Florida de novo loss expected to be offset by Cedar Hill improvement for near-wash on year. Cedar Hill improvement now more back-end loaded due to weather. New towers in Las Vegas, Florida West Coast, and California replacement facility should ramp quickly contributing in back half.

Filton said historical 75-80% of operating income less NCI conversion should apply in 2026. 2025 cash flow impacted by $50M de novo hospital AR and $145M DPP timing. No unusual items expected in 2026.

Filton said supply costs best-controlled category in 2025 at +1.8%. Tariffs not impacting industry. Ongoing opportunities in clinician supply preference management for high-cost items. Supply not a significant cost exposure risk for 2026.

Filton attributed AR increase to $90M D.C. DPP collection timing (Q4), Cedar Hill's inability to bill until September certification, and West Henderson's growing business. Underlying days in receivables consistent with historical levels.

Filton said no major changes in Medicare, commercial, or self-pay volumes. Only notable shift is Medicaid to exchange. Other payer classes stable.

Filton excluded Tennessee DPP (incremental) but included other states. Behavioral revenue growth of 5.4% ex-Tennessee split between 4.2% pricing and 1.2% volume.

Filton said post-pandemic length of stay normalization continues with some incremental room. Biggest challenge is placing patients into subacute facilities due to capacity scarcity.

Filton said exchange volumes up ~20% like peers, now about 6% of acute admissions, likely coming from Medicaid population. No significant impact on pricing or profitability.

Filton acknowledged structural shift toward temporary nursing limits further premium pay reduction below $60M. Modest tweaks possible but no significant savings expected.

Filton said multiyear supply contracts with pricing protection shift tariff risk to manufacturers. No significant 2025 supply expense impact expected from tariffs.

Marks confirmed anesthesia and radiology as the elevated components, gave 8.5% quarterly and 10% year-to-date growth, and described the mitigation playbook.

Sam detailed $5.5-6B pipeline of approved projects, slightly accelerated 2026 expectations, and outpatient M&A focus in urgent care, ASCs, and freestanding ERs.

Sam confirmed no capacity constraints: workforce improved, surge planning in place, more capital coming online in 2026. Mike added length of stay improvements creating additional room for volume growth.

Mike acknowledged awareness of drug pricing executive order but unable to comment on potential impact without draft rules and additional specificity.

Sam confirmed 50/50 split remains appropriate. Hurricane repairs were mostly at Largo and not changing overall capital allocation strategy.