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.
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.
Major Capitated Contract with National Healthcare System
AdaptHealth signed a 5-year definitive agreement to become the exclusive provider for a major national healthcare system covering over 10 million members across multiple states.
The contract is projected to generate over $1 billion in revenue during its term, with adjusted EBITDA margins aligned with the company's enterprise margins.
Once fully ramped, this partnership will elevate capitated revenue to at least 10% of total revenue, significantly increasing recurring revenue.
The contract is expected to start generating revenue 2-3 months after infrastructure setup, with full ramp-up by 2027.
Management emphasized this as a historic, transformative deal that supports long-term growth and market consolidation.
Capital position remains strong with $5.4 billion in cash and investments and $579 million in excess capital at insurance subsidiaries.
Loss from operations was $230 million in Q2, a $298 million decrease year-over-year; adjusted EBITDA loss was $199 million, a $304 million decrease year-over-year.
Membership grew 28% year-over-year to over 2 million members, supported by strong retention and SEP additions.
Oscar Health reported Q2 2025 total revenue of $2.9 billion, a 29% year-over-year increase driven by higher membership.
SG&A expense ratio improved by 90 basis points year-over-year to 18.7%, driven by lower exchange fee rates and fixed cost leverage.
The medical loss ratio (MLR) increased 12 points year-over-year to 91.1%, impacted by a $316 million increase in risk adjustment payable due to higher market morbidity.
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
