Revenue and EBITDA Growth
Revenue for the second quarter increased 12% to $1.46 billion and adjusted EBITDA increased 17.2% to $308.6 million, driven by a 7.2% discharge growth and a 4.2% increase in net revenue per discharge.
Increased 2025 Guidance
Based on strong Q2 performance, guidance for 2025 has been raised to net operating revenue of $5.88 billion to $5.98 billion, adjusted EBITDA of $1.22 billion to $1.25 billion, and adjusted earnings per share of $5.12 to $5.34.
Expansion and New Hospital Openings
Opened a new 60-bed hospital in Fort Myers, Florida, and a 50-bed hospital in Daytona Beach, Florida, with plans to open 5 additional hospitals and expand existing ones, adding significant capacity.
Strong Free Cash Flow
Q2 adjusted free cash flow increased 30.5% to approximately $186 million, with year-to-date adjusted free cash flow rising 31.7% from the first half of 2024.
VA Community Care Network Growth
Managed care pricing improved due to increased volume from the VA Community Care Network, which now comprises almost 18% of managed care business, paying at the Medicare CMG.
Labor Cost Management
Contract labor and sign-on bonuses declined by $4.9 million or 15.1%, while turnover rates for nurses returned to pre-pandemic levels.