Ardent Health (ARDT) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Company overview and market strategy

• Operates 30 hospitals and 200+ care sites across eight mid-sized, high-growth urban markets in six states, mainly in the South Central U.S.

• Focuses on a hub-and-spoke model, going deep in each market to maximize utilization and volume growth, with markets growing three times faster than the U.S. average.

• Differentiates through joint ventures with academic and nonprofit partners, enabling expansion and access to specialized services.

• Academic partnerships have enabled unique offerings, such as being the only provider of ECMO services in East Texas.

• Partnerships help with clinical and nurse recruiting, training, and expanding the academic brand statewide.

Financial performance and growth outlook

• Achieved strong Q2 results with robust volume growth and normalization of labor costs post-pandemic.

• Contract labor costs have declined to 4.3% of salaries and wages, with nurse turnover below 14%, better than pre-pandemic levels.

• Targets mid-to-high single-digit revenue growth, low-to-mid double-digit EBITDA growth, and mid-teens EBITDA margin.

• Growth drivers include above-average population and wage growth, improved commercial rates, and expansion of ambulatory access points.

• Margin improvement expected as more beds are covered by DPP programs and as operational integration continues.

Operational initiatives and technology investments

• Supply chain initiatives have reduced costs by over 100 basis points year-over-year, with further improvements expected into 2025.

• Investments in Epic EHR ($250M) and technology to enhance patient engagement and operational efficiency.

• Piloting next-generation care delivery with partners, including wearable monitoring devices and virtual nursing to improve care and reduce staff burden.

• Virtual nursing and technology investments are improving patient and nurse satisfaction and expected to reduce turnover.