Nutex Health issues NSA arbitration update

Nutex Health (NUTX) provided an update regarding its strategic participation in arbitration known as the Independent Dispute Resolution process under the No Surprises Act. As previously disclosed in our September 30, 2024 Form 10-Q, on July 1, 2024 the company contracted with a third-party vendor to assist in the recovery of certain out of network claims under the arbitration process. Since implementing its arbitration strategy, the company has reached its goal of submitting between 60%-70% of its billable visits to arbitration each month, achieving an arbitration success rate in excess of 80% during the fourth quarter of 2024. These increasingly favorable outcomes are expected to allow the company to recover substantial amounts previously underpaid by insurers. Due to significant administrative time built into the federal arbitration process and delays in collections, the company is now beginning to realize the full cash impact of its enhanced arbitration process that was commenced in July 2024. Additionally, there is a significant cost to enter the arbitration process. The arbitration process includes expenses associated with third party providers, including independent dispute resolution entities, which typically collect fees at the beginning of the process, before the claim award amounts are decided by arbitrators.