Healthcare Facilities & Managed Care "5/13/26 Conference Recaps" Rice

Research evidence excerpt

Healthcare Facilities & Managed Care "5/13/26 Conference Recaps" Rice

rity for the

company, although most deals are likely to be oriented around the Personal Care market

given the fragmented nature of the business and more attractive valuations. Hospice

valuations were said to be elevated. ADUS said it has line of sight into some larger

personal care assets that it believes are going to be either in market or coming to market

over the next several months that it is excited about.

ALHC - Addressing 2Q MLR; Continuing to Plow Ahead

ALHC noted that for 2Q MLR, there is typically a step down in MLR from 1Q to 2Q due to

seasonality. Additionally, seasonality remains a key factor, particularly with Part D. From

the company's perspective, the MLR step-down, while greater than typical, is due to a

couple of factors. Management cited the January UM headwind, Pat D sloping, and

slightly heavier utilization in 2Q25. Factoring in those items, the MLR step-down is

consistent with historical patterns from their perspective. On the MA final notice, the

rate remains below trend from their perspective. Management was unsure if changes to

the risk model would come about in the near-term. As for global capitation and value

based providers, given the pressures from v28, it is unclear from the company's view if

the model can be sustained in its current iteration.

THC - Solid Start to Year, Continued Focus on Higher Acuity Services

THC's commentary was consistent with past appearances. The company was not asked

about any recent supplemental payment program developments. THC noted that 1Q

utilization trends improved sequentially despite a weak flu season, with strong operating

flexibility driving a ~$50M hospital segment EBITDA beat and increasing confidence in

meeting full-year guidance.