Ardent Health (ARDT) investor relations material

Growth strategy and market positioning

• Operating 30 hospitals and over 280 assets in eight fast-growing urban markets, with a focus on expanding urgent care, ASCs, imaging centers, and outpatient services.

• Growth driven by M&A, new market entry, and ambulatory site development, with a target of mid-single digit top-line growth and high single-digit EBITDA growth long-term.

• Margin expansion targeted at 100–200 basis points over the next two years, accelerated to get ahead of anticipated 2028 OBBA cuts.

• Partnerships with academics and nonprofits are central, enabling expansion and de-risking new market entry.

• Capital deployment prioritizes outpatient development, selective acquisitions, and new hospital builds, supported by a strong balance sheet and improving leverage.

Regulatory and reimbursement environment

• OBBA changes could impact EBITDA by $150–$175 million in 2028, but mitigation strategies include operational improvements and expected state contributions.

• Rural Health Transformation Fund may provide near-term benefits, with about a third of hospitals potentially qualifying.

• State-directed payment changes in Texas and Kansas have minimal impact, while Oklahoma and New Mexico approvals have increased the proportion of beds in states with SDPs.

• Ongoing advocacy for health insurance exchange subsidies, with 7% of revenue from exchanges; potential shifts to employer-sponsored plans seen as positive.

Operational initiatives and technology investments

• Service line rationalization, transfer center improvements, and technology adoption have driven strong admission growth and operational efficiencies.

• Investments in AI, machine learning, and virtual nursing aim to improve productivity, reduce length of stay, and enhance care quality.

• Epic EHR serves as a clinical and financial backbone, enabling system-wide visibility, operational efficiencies, and integration with AI and ambient listening technologies.

• Outsourced revenue cycle management to Ensemble Health Partners, leveraging advanced technology to address payer denials and optimize reimbursement.