Healthcare Services: Weekly Check-Up: Death Care and Hospitals Outperform; Physician Practice Bankruptcies; 340B Rebate Case

Research evidence excerpt

Healthcare Services: Weekly Check-Up: Death Care and Hospitals Outperform; Physician Practice Bankruptcies; 340B Rebate Case

a's provider tax and supplemental payment programs. Given

this, we believe it is more likely for the hospital companies to recognize the catchup

payments in 3Q rather than in 2Q earnings later this week. (Link to Note)

A Look at IDR Stats, Some Perspective on Recent UNH Comments (July 20, 2026)

UNH More Exposed to IDR; Likely more Real than Not: Following UNH's 2Q26 earnings

results, there have been some questions over the company's comments regarding the

IDR process and its impact on its commercial business. Overall, given where UNH's

commercial footprint stands in relation to where the largest amount of IDR disputes are

occurring, it would seem that the company has outsized exposure to the IDR disputes

compared to peers. As such, this would correlate with UNH's commentary that they are

facing IDR-related headwinds. CMS data shows that 39% of IDR dispute initiations

occur in Texas where UNH is the #2 commercial plan by enrollment per KFF. While a

company such as Cigna is ranked 3 in Texas, Cigna's absolute enrollment exposure is

significantly less on an absolute basis at 134k versus UNH's 713k in the large group

market. Additionally the magnitude of absolute disputes against UNH are significant

with 175k disputes initiated against UNH vs Cigna at 18k in 2Q25 (the latest quarter for

which there is data). Net, the headwinds UNH faces appear real, and the company's

comment could be both a combination of actual headwinds but also reform advocacy

on the IDR process. (Link to Note)

Recently Published Company Notes

SGRY Sells Idaho Falls Facilities for $795 mln; ~9.5x Implied Trailing

EBITDA Multiple; Reaffirms Full year Guidance July 24, 2026)