Leadership Transition and CEO Retirement Announcement
Tim Hingtgen announced his decision to retire at the end of September for personal reasons, emphasizing his desire to spend more time with family and pursue personal interests.
He expressed confidence in Kevin Hammons' ability to lead CHS forward and committed to supporting a seamless transition.
Tim highlighted his 17-year tenure and contributions to the company's regional network development.
Commercial Transformation and Sales Process Overhaul
The commercial transformation aims to capitalize on large enterprise and IDN opportunities, with a focus on moving from early-stage to later-stage deals.
The company has retooled its sales team to target hospital CNOs and other key decision-makers, emphasizing change management and clinical benefits.
Progress includes a more disciplined approach to sales forecasting, pipeline management, and deal closure, setting the stage for sustained growth.
Capital Allocation and Shareholder Return Strategy
The company is committed to returning capital to shareholders through share repurchases and debt reduction, leveraging improved EBITDA and free cash flow.
Management announced a plan to reduce stock-based compensation as a percentage of revenue to mid- to high-single digits in 2026.
The company has no near-term plans for acquisitions, focusing instead on profitability and organic growth.
Leadership emphasizes that profitability improvements will help close the gap between intrinsic and market value, benefiting shareholders.
Recognition of Top-Ranked Rehabilitation Hospitals and Strategic Development Achievements
Eight hospitals recognized among the nation's best by U.S. News & World Report, with Kessler Institute for Rehabilitation ranked #4 for 33rd consecutive year.
Opened new facilities including a 12-bed hospital with UPMC in Pennsylvania, a neuro transitional care unit in Missouri, and expansions in Florida.
Plans to open multiple new hospitals in 2026 and 2027, including partnerships with Banner Health and Cox Health Systems, with a focus on high-demand markets.
Vertex's Leadership Transition and Scientific Legacy
Retirement of CSO David Altshuler effective August 1, 2026, after 13 years of scientific leadership.
Promotion of Mark Bunnage to EVP and CSO role starting February 1, 2026, with a strong background in research and pipeline development.
Management's emphasis on David Altshuler's contributions to advancing CF medicines and scientific breakthroughs, highlighting his creative thinking and team-building skills.
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