Acquired 1.9 million shares at a cost of approximately $332 million in the first half of 2025, repurchasing about 34% of outstanding shares since 2019.
Available borrowing capacity was approximately $1 billion under a $1.3 billion revolving credit facility as of June 30, 2025.
Behavioral health hospitals' same-facility net revenues increased 5.4% excluding Tennessee Medicaid directed payment program, driven by 4.2% revenue per adjusted day increase and 1.2% adjusted patient days growth.
Capital expenditures were $505 million in the first half of 2025, with 25% related to two new/replacement facilities opening in spring 2026.
Cash generated from operating activities decreased by $167 million to $909 million in the first half of 2025 compared to the same period in 2024.
Net income attributable to UHS per diluted share was $5.43 for Q2 2025, with adjusted net income per diluted share at $5.35 after adjustments.
Operating expenses on a same-facility basis increased 3.1% excluding insurance subsidiary impact.
Same-facility adjusted admissions to acute care hospitals increased 2.0% year-over-year, while surgical volumes declined slightly.
Same-facility EBITDA in acute care hospitals increased by 10% due to solid revenues and expense controls.
Same-facility net revenues in acute care hospitals increased 5.7% excluding insurance subsidiary impact.
Strategic Focus on Advanced Practitioner Model and Center Utilization
The company operates 170 infusion centers with over 750 chairs, actively expanding their utilization for both home and center-based care.
Progress in deploying nurse practitioners for complex and high-acuity patients, including oncology and neurological disorders like Alzheimer's.
Centers are being optimized for better nurse productivity, with utilization increasing from 17% to over 35%, enabling more efficient care delivery and capacity expansion.
Challenges in Commercial Rollout of Inspire V System
Encountered delays in customer training, contracting, and onboarding, especially with implementing SleepSync, which is over 50% complete and expected to be near full implementation by end of Q3.
Impact of delayed billing for Medicare patients due to software update from July 1, affecting transition to Inspire V.
Patients delaying therapy in anticipation of Inspire V, with some centers waiting to treat Medicare patients until billing issues are resolved.
Strategic pause on patient marketing and footprint expansion in H1 2025, with ramp-up in H2 to support Inspire V adoption.
Headwinds from inventory burn-down of Inspire IV units, which will continue into H2 2025.
Adjusted EBITDA was $46 million in Q2, surpassing guidance range of $10 million to $18 million, with a margin of 4.5%, expanding 360 basis points year-over-year.
Adjusted gross profit was $135 million, a 76% increase year-over-year, with a consolidated MBR of 86.7%, improving by 200 basis points.
Adjusted SG&A ratio improved by 160 basis points year-over-year to 8.8%.
Balance sheet ended Q2 with $504 million in cash, cash equivalents, and investments.
First half 2025 adjusted EBITDA was $66 million, exceeding the high end of initial full year guidance ($35 million to $60 million).
Health plan membership reached 223,700 members in Q2 2025, a 28% year-over-year increase.
Total revenue for Q2 2025 was $1 billion, up approximately 49% year-over-year.
Revised Full-Year Guidance and Strategic Response to Cost Trends
Elevance Health revised its 2025 adjusted EPS guidance to approximately $30, citing industry-wide increased morbidity and slower Medicaid rate adjustments.
Management emphasized actions to stabilize trends, improve pricing, and reinforce operational foundations, including cost management and targeted investments.
The company is focusing on long-term margin stability through initiatives in specialty services, post-acute care, and outpatient settings, with a strategic emphasis on Carelon platform expansion.
Barbara highlighted ongoing concerns with CMS' final hospice and home health rules, noting a modest 2.6% rate increase for hospice but significant dissatisfaction with the lack of full cost recovery.
The proposed 2026 home health rule includes continued cuts, with cumulative reductions exceeding 20% since PDGM implementation, despite rising care costs and demand for home-based services.
Management emphasized that these reimbursement cuts threaten access to care, especially in rural and underserved areas, and could force closures or consolidations of branches.
Enhabit is actively engaging with trade associations and policymakers to oppose these cuts, arguing that the industry provides cost-effective care that reduces overall healthcare expenditures.
Dafinchi
