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CFO Alfred Lumsdaine estimated that of the 10.2% growth in net revenue per adjusted admission, the New Mexico program contributed about 6.5 percentage points. He stated that the core rate increase was around 4%, consistent with historical trends. He did not provide a specific number for the case mix index increase but noted acuity was good.

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CEO Christopher Hunter and CFO Heather Dixon quantified the drag from underperforming facilities at about 80 basis points on same-facility volume growth, with the expected full-year EBITDA headwind now slightly worse at ~$23 million. Dixon provided a guidance bridge, citing a ~$30M drag from softer volumes and a $10M increase in startup costs, partially offset by a $25-30M increase in expected net supplemental payments.

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EVP & COO Pat Tuer described the physiatrist market as stable, supported by a dedicated recruitment team and residency partnerships. EVP & CFO Doug Coltharp agreed that with leverage below two times, and after funding capacity expansions, increased share repurchase activity is a likely use of capital, aided by favorable cash flow from bonus depreciation.

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CEO Mark Ordan explained that the company's strong cash position provides flexibility for debt reduction, strategic opportunities, or share repurchases, emphasizing they will not simply hoard cash. He also confirmed that the IDR process has been favorable for Pediatrix and that the company remains overwhelmingly in-network with its hospital partners.

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CEO Eric Evans confirmed no change in recruiting strategy, which remains focused on orthopedics and other key service lines, and highlighted the compounding multi-year return from new physicians. CFO Dave Doherty reported that the company is now ahead of the payer authorization pressures discussed in the prior year and is midway through a three-year revenue cycle standardization project, which contributed to a three-day sequential improvement in DSO.

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CFO David Doherty confirmed all five acquisitions were consolidating ASCs and that the company maintains a target of having 10 de novos under development annually. CEO J. Evans added that most de novos start as unconsolidated. Regarding portfolio management, Evans stated that after significant divestitures last year, no similar large-scale activity is expected in 2025, though minor, ongoing optimization will continue.

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CEO J. Evans confirmed the 'less than 5%' figure is inclusive of all Medicaid and associated state-based programs. Regarding operational initiatives, Evans stated they are still in the 'early innings' on revenue cycle with a long way to run. CFO David Doherty added that these initiatives are not drying up, citing a 3-day DSO improvement in the quarter and successful navigation of tariff threats by the procurement team. He affirmed these will be an ongoing source of margin enhancement.

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CEO Jon Rousseau expressed confidence in the infusion business, citing new leadership and operational progress as drivers for its double-digit EBITDA growth, which he expects to continue. He emphasized a strategy that includes focusing on the large acute therapy market. CFO Jennifer Phipps explained that the higher gross profit per script was driven by a 38% year-over-year increase in specialty scripts, which carry higher margins.

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CEO John Kao stated that new member engagement is incrementally better, moving from the 50s to around the 60th percentile, but he aims for 70-75% engagement. He sees upside opportunity through deeper integration with IPAs. Regarding Star Ratings, Kao expressed confidence in Alignment's own performance, expecting it to be 'distinctly better' than last year and at least 4-stars in all markets, but he did not have visibility into the broader industry's results.

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CFO Robert Freeman explained that as a health plan, they have direct visibility into the paid revenue PMPM for new members in January, allowing them to book revenue conservatively until midyear sweeps. CEO John Kao added that their Stars strategy is an 'across the board emphasis' on core operations, including performance-managing IPAs on CAHPS and stepping in directly when needed, rather than relying solely on regulatory changes.

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CEO John Kao explained that fixing CAHPS scores requires a foundational change in how they handle utilization management, shifting from simple approvals to active care navigation to improve member access. Executive Robert Freeman noted that their Part D deductible strategy is competitive within their specific local markets, where Part D benefits are a key differentiator, even if it appears as an outlier nationally.

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President and CEO James Rechtin stated there was little new color to provide on the topic, citing ongoing litigation and numerous unknowns. George Renaudin, President of Insurance, added that Humana supports auditing contracts, provided it properly accounts for the actuarial equivalence between MA and fee-for-service.

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CEO Jim Rechtin confirmed that a total of three calls across both metrics would need to be overturned in the appeal. George Renaudin, President of Insurance, added that beyond the appeal, Humana is also advocating for greater transparency from CMS on how rating thresholds are calculated.

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CFO Mike Marks reported no significant impact from denial activities, attributing this to substantial investments in their revenue cycle operations. He highlighted new partnership activities with key managed care payers focused on digital integration, administrative simplification, and dispute management to improve collaboration and efficiency.

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CEO Sam Hazen described the company's digital agenda as being at an 'inflection point.' He highlighted promising, though not yet material, results from using AI in scheduling tools for better demand forecasting and workforce allocation, as well as in the revenue cycle to mitigate denials. He confirmed HCA is increasing resources for these initiatives for incremental gains in the coming years.

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Chairman & CEO Saum Sutaria noted that case mix was up, consistent with the high-acuity strategy. EVP & CFO Sun Park specified the case mix index increased about 1% year-over-year. Regarding USPI, Mr. Sutaria explained that revenue growth is dynamic, driven by same-store growth, payer contracts, and new facility additions, rather than singling out a specific synergy contribution.

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Dr. Saum Sutaria, Chairman and CEO, stated they have not provided specific updates on new health system partners. He emphasized that the USPI platform is effective with or without partners. He described de novo development as a multi-pronged strategy that includes expansion in existing and new markets, and with various types of partners, not just one vector.

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Chairman and CEO Dr. Saum Sutaria explained that while costs are adjusted, the company has ongoing obligations through transition service agreements. EVP and CFO Sun Park clarified that long-term Conifer relationships with divested hospitals are expected to be a benefit in 2025, and this is part of their overall expectations, with more detail to come with formal guidance.

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Executive Suzanne Foster explained that the 'One Adapt' initiative is focused on leveraging the company's scale, which includes brand consolidation, entity simplification, and creating a unified commercial team that presents the full portfolio to large accounts. She confirmed the Humana relationship continues to be a 'bright spot' and that the pipeline for new capitated arrangements is not only growing but advancing, with optimism for future announcements.

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CEO Suzanne Foster stated that the Humana partnership is performing "incredibly" well and is a model for future business. She confirmed that the newly expanded enterprise sales and managed care teams are actively exploring similar large-scale opportunities with other payers.

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