Brentwood, Tenn.-based Ardent Health recorded operating income of $43.2 million (2.7% operating margin) during the second quarter, down from $122 million (7.4% margin) during the same quarter last year, according to its Aug. 4 financial report.
Seven things to know:
1. Ardent Health said Q2 2026 year-over-year growth was negatively impacted because the prior-year quarter had captured two quarters of benefit from New Mexico’s state directed payment program, due to a delayed 2025 renewal.
2. Total revenue declined 1.4% year over year for the three months ended June 30, which Ardent said was primarily driven by a 3.9% decrease in net patient service revenue per adjusted admission. This was largely attributable to recording two quarters of the New Mexico state directed payment program benefit in Q2 2025.
3. Total operating expenses increased 3.7% year over year in the second quarter to $1.6 billion. Salaries and benefits totaled $676.2 million, a 0.7% increase. Professional fees totaled $327.8 million, a 10.4% increase. Supply expenses totaled $279.6 million, up 3.3%.
4. Admissions decreased 1% year over year in the second quarter, though adjusted admissions — which accounts for both inpatient and outpatient volume — grew 2.5%. Surgeries decreased 2.9%. The decrease in total surgeries reflected declines in outpatient and inpatient surgery volume of 0.9% and 7.5%, respectively.
5. Net income totaled $16.9 million in the second quarter of 2026, down from $73 million during the same period last year.
6. Dave Caspers was named Ardent’s president and CEO on June 2, after previously serving as the system’s COO. He succeeded Marty Bonick, who stepped down to pursue other opportunities after serving as CEO since 2020. Mr. Caspers said in the report that he sees “clear opportunities to further improve performance and unlock the full potential of the platform.” He added that the system’s growth strategy remains unchanged, but sharpening operational execution is his highest priority.
“We are focused on the levers we can control — staffing, contracting, capital allocation, standardization and accountability — while continuing to deliver high-quality care to the patients and communities we serve,” he said.
7. Ardent updated its net income guidance for full-year 2026. The system now projects net income between $110 million and $163 million. Ardent reaffirmed guidance for total revenue (between $6.4 billion and $6.7 billion) and adjusted EBITDA (between $485 million and $535 million).
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