Liability Reserve And Insurance CostsHigher professional liability and insurance reserve builds have forced management to lower adjusted earnings expectations and are expected to keep liability costs elevated, constraining cash available for strategic actions.
Payor Reimbursement PressurePressure from Medicaid managed care organizations on authorized patient days is reducing patient volumes at certain facilities and directly weighing on revenue.
Regulatory And Legal ProbeAn ongoing Department of Justice investigation is generating substantial legal expenses and higher reserves, creating unquantified balance-sheet risk and pressuring free cash flow.