Hospitals Monthly Check-Up: May Foot Traffic Picks Up Q/Q; MSPP Activity Strong YTD, Although Proposed SDP Rule Portends Limited Upside to Future Approvals

Research evidence excerpt

Hospitals Monthly Check-Up: May Foot Traffic Picks Up Q/Q; MSPP Activity Strong YTD, Although Proposed SDP Rule Portends Limited Upside to Future Approvals

J P M O R G A N North America Equity Research

28 May 2026

Hospitals

Monthly Check-Up: May Foot Traffic Picks Up Q/Q;

MSPP Activity Strong YTD, Although Proposed SDP

Rule Portends Limited Upside to Future Approvals

Managed Care and Facilities

Benjamin Rossi AC

(1-212) 622-9603

benjamin.rossi@jpmorgan.com

Lisa C. Gill AC

Hospital foot traffic trends appear to have have picked up q/q, with aggregate data (1-212) 622-6466

lisa.c.gill@jpmorgan.com

for HCA/THC/UHS showing an acceleration during the latter half of April that has

John Stansel, CFA ACcontinued into May. MSPP activity also remained strong to start 2Q26, with CMS

(1-212) 622-0083

data through the end of April showing YTD hospital-related approved funding up john.stansel@jpmorgan.com

+18% y/y and details regarding the FL DPP approval suggesting a material

Cole Harris

windfall for HCA/THC/UHS during the quarter. Despite the favorable lift to (1-212) 622-9068

topline indicators (along with the continuation of a stable labor backdrop), cole.harris@jpmorgan.com

valuations remain well below historical averages on subdued sentiment. We think J.P. Morgan Securities LLC

this is reflective of a challenging 2Q-4Q ramp and more limited upside

opportunities on waning expectations regarding go-forward benefits from MSPPs

and AI-related benefits, particularly following last week’s Medicaid SDP rule that

we believe will result in more modest program development ahead of the

mandatory phase-down in 2028. We also highlight recent moves by HCA and UHS,

with the former bolstering HCA’s position as one of the largest clinical educators

in the U.S.