Healthcare Facilities & Managed Care "1Q26 Hospital Recap: Noisy Quarter..."

Research evidence excerpt

Healthcare Facilities & Managed Care "1Q26 Hospital Recap: Noisy Quarter..."

Global Research

21 May 2026ab

Healthcare Facilities & Managed Care Equities

Americas1Q26 Hospital Recap: Noisy Quarter from

Weather and Flu, Though ACA Trending Healthcare Providers

Modestly Better; Recent DPP Approvals to AJAnalystRice

Benefit 2Q Results +1-212-713aj.rice@ubs.com4299

Joseph Overman

Associate Analyst

Weather and Flu Contribute to a Noisy 1Q joseph.overman@ubs.com

+1-212-882 0086

Unusually bad winter weather and a meaningfully lighter flu season compared to last

year both weighed on first quarter volumes and earnings. 1Q same store volumes were James Kurek

up just 0.7% on average, with each company (other than ARDT) coming in below full Analyst

james.kurek@ubs.com

year guidance ranges. HCA cited a 70 bps drag on admissions growth from the milder

+1-212-713 3704

flu season and another 30 bps of drag from the winter weather. Adjusting for this ~100

bps headwind from unusual items, HCA's SS volume growth would have been 2.3%, Jonathan Yong

Analystwithin the company's 2-3% guidance range for the full year. HCA estimated a $180 mln

jonathan.yong@ubs.com

EBITDA headwind in 1Q from flu/weather, while UHS estimated a ~$30 mln headwind

+1-212-713 6268

(both around 4.5% of total EBITDA). Given the noisy 1Q results and the significant

interest from many investors in determing "core growth" in the quarter, we expect that Michael Wei

Associate Analystinvestors will be particularly focused on deciphering inputs related to volume trends

michael.wei@ubs.com

during the second quarter. +1-212-713 2565

DPPs Boost 1Q Results; Recent Approvals in Florida and Colorado to Come in 2Q

We've seen significant movement in Medicaid DPP approvals over the past few months.