Tom McGovern's questions to Nutex Health Inc (NUTX) leadership • Q3 2024
Question
Tom McGovern from Maxim Group asked for an update on the timeline for the remaining 2024 hospital openings, the expected cadence for 2025 openings, new services being introduced to drive patient volume, details on cost-saving initiatives, and the status of removing two variable interest entities (VIEs) from the balance sheet.
Answer
Executive Thomas Vo confirmed one hospital is on track for a November opening, while the second, located in Florida, might be slightly delayed into early 2025 due to a hurricane but is still targeted for December. For 2025, he expects one hospital in Q1/Q2 and three by year-end. He also mentioned exploring new services like personal injury and wellness. COO Joshua DeTillio detailed cost-saving efforts in labor, supply chain (targeting a 15% reduction), and contract services, highlighting new software for labor analytics and scheduling. Thomas Vo concluded that the bank intends to remove the final two VIEs by the end of the year.