Image by fernando zhiminaicela from PixabayDespite some setbacks in the third quarter, Ardent Health (NYSE: ARDT) continues to progress with its expansion plans in 2026 after adjusting its business strategy.
That’s according to Ardent leadership’s remarks during the company’s Q3 earnings call on Nov. 13.
During the call, leaders announced the company generated significant patient volumes and revenue growth, driven by improving surgical trends and sustained industry strength.
It was also reported that in the second half of 2025, Ardent will have opened several urgent care clinics and imaging centers, with plans to open two ambulatory surgery centers (ASCs), four additional urgent care clinics and one freestanding emergency department while expanding into new markets in 2026.
“Our third quarter results reflect a continuation of the strong demand trends we saw in the first half of 2025,” Marty Bonick, president and CEO, said during the call. “Admissions grew 5.8%, adjusted admissions increased 2.9% and total surgeries trended positive for the first time this year, rising 1.4%.”
The total year-over-year increase in surgeries for the third quarter was 1.4%, driven by a 9.7% rise in inpatient surgeries and a 1.8% decrease in outpatient surgeries.
Additionally, Bonick stated that revenue and adjusted EBITDA rose 9% and 46%, respectively. Year-to-date adjusted EBITDA through the third quarter increased 30% to $143 million.
The company reported an operating cash flow of $154 million in the third quarter, up from $90 million in the same quarter of 2024.
Battling headwinds
Ardent Health’s third quarter 2025 revenue came in at $1.58 billion, up 8.8% compared to the same period a year ago.
While positive, company leaders stated that earnings did not meet their expectations. They partly attributed the results to increases from professional fees, which rose 11% year over year, along with a significant rise in payer denials starting in the second quarter of 2024 and continuing through the third quarter of 2025.
To close the gap, leaders are concentrating on immediate priorities, including contract renegotiations and targeted staffing adjustments, with additional initiatives ramping up in early 2026 that are expected to deliver measurable impact across revenue cycle, labor and supply chain performance.
“While we continue to execute on our strategic priorities, certain industry headwinds are persisting more than anticipated,” Bonick explained.
He noted that the company expected professional fee expense growth to slow to the upper-single digit range. The first half of 2025 was reportedly in line with this, but professional fee growth accelerated to 11% in the third quarter.
Additionally, payer denials were more significant in the third quarter.
“These dynamics caused a shortfall in our third quarter adjusted EBITDA forecasts, and we expect fourth quarter earnings to be below our initial targets,” he explained. “As a result, we are revising 2025 adjusted EBITDA guidance to $530 to $555 million.”
To address these industry pressures, leaders have started implementing “deliberate, measurable actions.”
Bonick announced that the company has undertaken a workforce optimization program and renegotiated key contracts, including with certain payers and agency labor, which are expected to benefit earnings in the fourth quarter. It has also launched targeted initiatives in precision staffing, supply chain discipline and tighter inventory management in its operating rooms.
“Our excellence program is focusing on improving case mix and evaluating additional service line rationalization opportunities to ensure the right surgeries happen at the right time in the right setting,” Bonick said. “While payer headwinds remain an industry-wide challenge, we are taking proactive steps within our control to drive sustainable improvement.”
Brentwood, Tennessee-based Ardent Health is a health care provider serving growing mid-sized urban communities across the U.S. Through its subsidiaries, the company offers care via a network of 30 acute care hospitals and approximately 280 care sites with over 1,900 employed and affiliated providers across six states.
