News from Nashville

Research evidence excerpt

News from Nashville

RBC Capital Markets, LLC

Ben Hendrix (Analyst)

(615) 372-1323, ben.hendrix@rbccm.com

Michael Murray, CFA (AVP)

(615) 372-1321, michael.murray@rbccm.com

Drew Sterrett (Associate)

(615) 487-8638, drew.sterrett@rbccm.com

May 11, 2026

News from Nashville Quote of the week "We're encouraged to see the recognition of theRESEARCH importance of value-based care providers and the A weekly perspective on Healthcare: industry and

company news, valuation update detrimental impact of the proposed risk model changes, as well as the critical role of clinician-led

Our view: Last week's 1Q26 prints were mixed as we continue to see documentation in the chart review process. This

managed care outperform the Hospital providers this year. CVS, our top is a clear example of how we're working to engage

MCO idea for 2026, delivered a strong beat-and-raise with 1Q MBR with CMS, regulators, and legislators, discussing

of 84.6% well ahead of our 86.2% estimate on improved government what's not working, developing constructive

business performance. PNTG and BKD, two of our three top post-acute solutions, and being disciplined in the actions weEQUITY ideas for 2026, both reported this week. PNTG posted a solid quarter with control... We saw where the market needed to go

integration of the UNH/AMED assets tracking to plan, as management more than two years ago, we have been leading

pointed investors to the upper end of guidance. BKD shares fell on a softer- that transition. Recent regulatory actions are

than-expected 1Q EBITDA print, though reaffirmed guidance implies full- helping clarify that direction and reinforcing our

year RevPAR growth in the upper half of the 8–9% range. focus on simpler pricing, greater transparency,

and lower out-of-pocket costs for patients at the