US MedTech & Life Sciences: Hospital Diligence Check-In: State of the Union Underscores Hospital Conservatism

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US MedTech & Life Sciences: Hospital Diligence Check-In: State of the Union Underscores Hospital Conservatism

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09 Jul 2026 16:11:29 ET │ 9 pages

US MedTech & Life Sciences

Hospital Diligence Check-In: State of the Union Underscores Hospital

Conservatism

Joanne Wuensch AC

CITI'S TAKE +1-212-816-9606

We had the opportunity to sit down with two hospital administrators, joanne.wuensch@citi.com

Ronda K. Lehman from Mercy Health Toledo & Lima and Hollie Harris Phillips AC Patrick Donnellyfrom Appalachian Regional Healthcare (ARH), where we dove into the health

of the hospital landscape. Broadly, procedures were flat-to-up low SD in +1-212-816-0701

2Q26 and YTD, with one noting that May, June, and July were busy months patrick.b.donnelly@citi.com

given strong robotics-based programs, flat orthopaedic procedures, and Anthony Occhiogrosso

variation in procedure setting demand. A fair bit of time was spent on the +1-212-816-7579impact of ACA and Medicaid cuts, the 340B proposal, and hospital capex,

not just today but as they budget/plan the future. Laboratory utilization anthony.occhiogrosso@citi.com

appears to maintain its strong trajectory, with mixed outsourcing Jane-Marie Lai

strategies, and lean inventory management continues on the distributor +1-212-816-3628

side. Despite some significant forward concerns, both seemed to believe janemarie.lai@citi.comthat caring for patients will prevail as it moves through expense

management, investments, and planning. Nikhil Guddeti

+1-212-816-2606

Volumes were mixed across geographies — In the ARH system (spanning nikhiltej.guddeti@citi.com

Southeast West Virginia to Eastern Kentucky), in-patient volumes over the past 3-6

months have been “very strong” with 3-5% increases in in-patient admissions as Brendan Digan