Nutex Health (NUTX) investor relations material

Company overview and mission

• Focuses on micro-hospitals, providing concierge-level care to improve patient experience and accessibility.

• Operates 24 locations in 11 states, with plans to reach 27 by the end of 2025, opening 3-5 new hospitals annually.

• Two main divisions: micro-hospitals (95% of revenue) and population health/IPAs (5% of revenue), with a symbiotic relationship between them.

• Aligns strategically and financially with local doctors to enhance care quality and patient satisfaction.

• Targets urban, blue-collar areas underserved by large hospital systems.

Business model and operations

• Micro-hospitals are small, fully licensed facilities (about 20,000 sqft) with 4-10 inpatient beds, ER, pharmacy, lab, and radiology.

• Specializes in mid-acuity cases, filling the gap between urgent care and large hospitals, with high patient satisfaction ratings.

• Cost to open a hospital is $4.5M–$5M, with break-even typically reached in 12–15 months, sometimes sooner depending on demand.

• Population health division (IPA) contracts with insurers and coordinates care, aiming to place an IPA around each hospital for better integration.

• Growth levers include new construction, potential acquisitions, and joint ventures, with a robust pipeline extending to 2027–2028.

Financial performance and regulatory impact

• Historically achieved 30–40% margins as a private company; became public in 2022.

• Revenue dropped 35% in 2022 due to the No Surprises Act, impacting adjusted EBITDA from $145M to $12M.

• Recovered by increasing patient volume, admissions, and leveraging arbitration under the Act, regaining prior revenue and margin levels by late 2024.

• Arbitration process, refined by CMS in 2024, now results in favorable outcomes 85% of the time, ensuring fair reimbursement.

• Current financials reflect a return to pre-Act profitability, with continued confidence in the arbitration mechanism.