April '26 Hospital Survey: +3.6% Revenue YTY, +4.1% ex-Calendar Impact

Research evidence excerpt

April '26 Hospital Survey: +3.6% Revenue YTY, +4.1% ex-Calendar Impact

TD SECURITIES (USA) LLC SECTOR NOTE

May 19, 2026

■Health Care Facilities & Services April '26 Hospital Survey: +3.6% Revenue YTY,

+4.1% ex-Calendar Impact

Ryan Langston THE TD COWEN INSIGHT

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April '26 hospital revenue grew +3.6% yty (+4.1% calendar adj). The April results are above 1Q26

ryan.langston@tdsecurities.com

+2.2% average but below March +5.1%. FL's DPP was approved and represents a material OOP

William Spivack benefit in 2Q26. Despite the positive development, we expect continued scrutiny on "core"

202 868 5302 growth. If April results were to hold through 2Q26, we expect HCA/THC to least meet our

william.spivack@tdsecurities.com

current revenue ests (ex FL DPP).

Christian Borgmeyer, CFA

646 562 1430 April 2026 Results - Hospital revenue grew +3.6% yty, a seq'l deceleration of -150bps vs

christian.borgmeyer@tdsecurities.com March's +5.1% (but above 1Q26 average of +2.2%). We estimate April had a -0.5% yty seasonal

Gary Taylor calendar headwind, such that adj revenue growth was +4.1%.

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Positioning & Impact to Stocks - April results are above the tepid 1Q26. However, results

gary.taylor@tdsecurities.com

may not be much to get excited about for hospitals and generally correlate with recent

payer commentary on April cost trends that were in line to favorable vs expectations. For-

profits have demonstrated tight labor and opex controls to offset weaker volumes and ACA

headwinds, as evidenced in 1Q26 results. FL's DPP was approved and represents a material

prior period pricing benefit recorded in 2Q26. We see this tailwind as larger than investors

originally anticipated (UHS confirms this) but expect continued scrutiny on "core" growth