Friday, November 7, 2025

BeautyHealth Upgrades 2025 EBITDA Guidance to $37M–$39M Amid Strong Margin Management

BeautyHealth Upgrades 2025 EBITDA Guidance to $37M–$39M Amid Strong Margin Management

BeautyHealth Upgrades 2025 EBITDA Guidance to $37M–$39M Amid Strong Margin Management

Strategic Shifts and Operational Improvements

Pedro Malha, CEO & President of The Beauty Health Company, opened the earnings call by expressing gratitude for the previous leadership and team efforts in stabilizing the business. He emphasized the company's potential to leverage its Hydrafacial device platform and expand it into a category-leading ecosystem of skin health technology solutions. Malha highlighted the unique recurring razor and blade business model and the company’s position to benefit from a market shift toward less invasive, personalized, and science-backed treatments.

Malha outlined four strategic priorities: protecting and growing the Hydrafacial installed base of over 35,000 devices, driving consumable utilization, innovating across device and consumable platforms, and strengthening operational discipline in areas such as cost control, margin expansion, supply chain, and quality.

For Q3, Malha reported total net sales of $70.7 million, noting a 10.3% year-over-year decline but stated this was "slightly ahead of the high end of our forecast for the quarter." Device segment revenue was $20.8 million, down 24.6% year-over-year, while consumables revenue was $49.8 million, down 2.6% year-over-year, mainly due to the China business model transition. He emphasized that excluding China, consumables sales would have increased modestly, with the consumable mix rising to 71% of net sales.

Malha noted operational achievements, including inventory levels below $60 million—"the lowest in 3 years"—and cited Q3 adjusted gross margins at 68%, down approximately 150 basis points year-over-year. Adjusted EBITDA reached $8.9 million, up 11% from Q3 last year, reflecting "tight control of cost and a solid operational execution." He announced a raise in adjusted EBITDA guidance and the midpoint of full-year revenue guidance.

CFO Michael Monahan stated, "I'm pleased to share another quarter of steady execution and disciplined financial performance in which we once again exceeded our initial expectations." He highlighted the impact of operational discipline, reporting net sales at $70.7 million, with device sales declining 24.6% and consumables down 2.6%. Monahan also pointed to regional revenue declines and outlined the company’s strategy for managing inventory and cost controls.

Outlook and Financial Results

The company raised the low end of its full year 2025 revenue guidance to between $293 million and $300 million and increased adjusted EBITDA guidance to between $37 million and $39 million. For Q4, expected net sales are between $74.5 million and $81.5 million, with adjusted EBITDA between $6.9 million and $8.9 million. Management stated the guidance reflects "reduced year-over-year revenue declines and continued cost management discipline."

Financial results showed Q3 net sales were $70.7 million compared to $78.8 million in the prior year, with device revenue at $20.8 million and consumables at $49.8 million. The Americas declined 7% to $48.3 million, APAC dropped 41.5% to $6.3 million, and EMEA remained flat at $16.1 million. GAAP gross profit was $45.6 million, with a GAAP gross margin of 64.6%. Adjusted gross margin was 68%, driven by a higher mix of consumables. Operating expenses fell 16.5% to $51.9 million, led by reduced sales and marketing spending (down 24.2%) and G&A expense (down 12.5%). Operating loss improved to $6.2 million from a loss of $21.5 million in the prior year.

Adjusted EBITDA was $8.9 million, up from $8.1 million, with margin improving to 12.6%. The company ended the quarter with $219.4 million in cash, reflecting refinancing activities and improved cash flow from operations.

Q&A Highlights

Oliver Chen, TD Cowen, asked about regional performance and cautious trends in the Americas. Malha responded that "Americas was down 7%...devices was down 16.3%," citing macro pressures but noted stabilization in device declines. For EMEA, "overall, we were flat...devices were down in EMEA about 21%." Consumables in EMEA grew double digits, driven by Germany and the medical channel.

Chen inquired about near-term vs. long-term strategic focus. Malha outlined that immediate priorities include driving utilization and device placement, with innovation and commercial execution as ongoing efforts, and highlighted targeted strategies for both devices and consumables.

John-Paul Wollam, ROTH Capital Partners, queried international strategy and channel mix. Malha stated there is continued reliance on distributor networks internationally, with plans for targeted commercial programs and investment in education and training.

Wollam also asked about the recent consumable price increase. Malha confirmed, "the team has been very pleased how the market...took that price increase," and noted average selling price is up.

Susan Anderson, Canaccord, asked about stabilizing device sales. Malha emphasized improving pipeline and commercial execution, predicting "the performance of our ability to sell devices into the market to get better and better as the quarters progress."

Anderson followed up on consumables focus. Malha disclosed a pause on the skin care initiative: "we have decided to actually pause the skin care initiative...our competitive advantage lies rather on the clinical differentiation, on recurring consumables, on stronger provider partnerships."

Lillian Moffett, Raymond James, asked about channel trends and consumer behavior. Malha described stability in medical and non-medical segments but noted pressure among plastic surgeons as consumers shift toward less invasive care. Monahan added, "booster attachment rates were very high...the end consumer...has been under a bit of pressure."

K. Gong, JPMorgan, asked about balancing growth vs. profitability for 2026. Malha stressed focus on top line growth and recurring revenue, indicating momentum heading into next year is contingent on improved macro conditions.

Joseph Federico, Stifel, queried guidance raise and margin dynamics. Monahan explained Q3 outperformance and Q4 margin expectations, noting, "gross margins tend to be a little bit lower quarter-over-quarter because we run the consumables promotion in the fourth quarter."

Federico asked about churn. Malha acknowledged churn is elevated at 1.8%, attributing it to "financial pressure being the primary factor" among low-volume providers, with proactive reengagement initiatives underway.

Sentiment Analysis and Risks

Analysts maintained a neutral tone, probing regional trends, strategic focus, pricing, and stabilization efforts, with particular attention on macro headwinds and device sales challenges. Management projected cautious confidence, with Malha stating, "we are encouraged by the momentum we are building as we enter 2026." Monahan’s tone reflected operational focus and discipline, noting "continued cost control even in the face of lower top line volume."

Compared to the previous quarter, management’s prepared remarks showcased increased optimism on stabilization and improvement in guidance, while analyst tone remained neutral but focused on risk factors and execution.

Quarter-over-Quarter Comparison

The current quarter featured a new CEO, Pedro Malha, succeeding Marla Beck, and a strategic pause on the skin care initiative. Guidance for full-year revenue and adjusted EBITDA was raised from the prior quarter’s range of $285 million–$300 million and $27 million–$35 million, respectively, to $293 million–$300 million and $37 million–$39 million.

Device revenue pressure persisted, but consumables mix improved. Operational discipline and cost controls remained central, while innovation shifted focus from skin care to clinically backed boosters and core consumables.

Analysts in both quarters concentrated on device sales, churn, and regional performance, but this quarter’s Q&A included increased scrutiny of churn and pricing power.

Management’s tone moved from cautious progress in Q2 to greater emphasis on momentum and margin resilience in Q3.

Risks and Concerns

Management cited ongoing macroeconomic headwinds, persistent inflation, challenging access to financing for capital equipment, and uneven consumer confidence as key external risks. Device sales remain under pressure, especially in the Americas and APAC, with churn elevated at 1.8%. The China market transition continues to impact results, though mitigation includes inventory planning and a shift to distributor models.

Proactive measures include greater support and training for low-volume providers, a focus on innovation in consumables, and a pause on non-core initiatives to preserve capital.

Final Takeaway

The Beauty Health Company delivered resilient Q3 2025 results amid challenging macro conditions, highlighted by improved profitability, disciplined cost control, and strategic clarity under new leadership. The company raised guidance for both revenue and adjusted EBITDA for the year, underscoring confidence in its recurring consumables model, operational improvements, and targeted innovation. Management remains focused on stabilizing device sales, reactivating providers, and leveraging its core strengths to drive growth into 2026.

Ben and Candy Carson's Struggle for Families

Ben and Candy Carson's Struggle for Families

A Lasting Partnership

Dr. Ben Carson, a renowned neurosurgeon, former Republican presidential candidate, and former U.S. Housing and Urban Development secretary, is known for his strong public presence. However, those who follow his social media accounts will notice that he is not alone in sharing the spotlight. His wife, Candy Carson, plays an equally significant role in their public life. She is credited on the cover of many of his books and has been a constant presence in his career. The Carsons have built a partnership that extends beyond personal life into professional endeavors, making it difficult to find a public-facing platform where they are apart.

This close collaboration is by design. The Carsons, who will be honored by the Sutherland Institute at its 30th anniversary awards dinner, are recognized as prominent advocates for the American family. Their work, particularly in the 2024 book "The Perilous Fight," highlights their commitment to defending the family as a core institution. The Sutherland Institute’s decision to present the Family Values Award to both Dr. and Candy Carson together reflects the deep connection between their lives and work.

Rick Larsen, president and CEO of the Sutherland Institute, explained that while the award was initially considered for Dr. Carson alone, the team realized how integral Candy Carson is to their message. “When you read their book and Candy’s book, ‘A Doctor in the House,’ you realize they’re inseparable,” Larsen said. “They’re in this together.”

A Half-Century of Partnership

Dr. Carson and Candy have been married for 50 years, and their relationship has evolved over time. In the early days of his medical career, Dr. Carson was incredibly busy as a pediatric neurosurgeon. When he became director of pediatric neurosurgery at Johns Hopkins, the division was not well-known. He spent years working to elevate its reputation, which eventually led to it being named the No. 1 pediatric neurosurgery division by U.S. News and World Report in 2008.

During this time, Candy focused on raising their children. Despite having an advanced degree from Yale and an MBA, she put her career on hold to care for their family. At the same time, she was also starting the Carsons Scholars Program, which provides college scholarships to students who excel academically and serve their communities.

Defending Family and Faith

In today’s political climate, discussing families and communities of faith can be controversial. The Sutherland Institute has long defended these institutions based on data and historical evidence. “Data shows that intact families in communities of faith tend to thrive,” Larsen said. “We’re completely aligned with Dr. Carson and Candy Carson’s new book where they make these points.”

The Carsons argue that the American family is under attack from various forces, including modern-day Marxists, socialists, and globalists. They reference W. Cleon Skousen’s 1958 book “The Naked Communist,” which outlines strategies aimed at undermining traditional values. These include discrediting the family and encouraging promiscuity and easy divorce.

The Perilous Fight

The title of the Carsons’ book, "The Perilous Fight," is inspired by a line from "The Star-Spangled Banner." They use this metaphor to describe the ongoing challenges facing the American family. Like Fort McHenry during the War of 1812, the family is under sustained attack, with enemies chipping away at its foundation for decades.

For Dr. Carson, the importance of a strong, two-parent family stems from his own childhood. His father left when he was young, and his mother worked multiple jobs to support her sons. Despite having only a grade-school education, she instilled a love of learning in her children. One of the most poignant stories involves her requiring her sons to write book reports every week, even though she could not read them herself.

Education as a Solution

Dr. Carson believes that education is key to addressing many of the challenges facing society. He argues that ignorance is a major issue, citing examples of people who lack basic knowledge. “We have to fight that,” he said. “We have to educate people so they understand the values that have made this nation prosperous.”

Through the American Cornerstone Institute, the Carsons are working to promote conservative principles and policy solutions. Their Young Patriots program aims to teach children to value faith, liberty, community, and life. “We have a wonderful story to tell with this nation,” Dr. Carson said. “It has a moral base, and as we allow all of that to recede, we’re suffering the consequences.”

Melatonin May Harm Your Heart, Experts Warn — 5 Ways to Sleep Fast Without It

Melatonin May Harm Your Heart, Experts Warn — 5 Ways to Sleep Fast Without It

Key Findings of the Study

A recent preliminary study has uncovered a potential link between long-term use of melatonin supplements and an increased risk of heart failure, as well as other serious health outcomes. The research, set to be presented at the American Heart Association’s Scientific Sessions 2025, analyzed five years of health data for 130,828 adults with insomnia. Half of these individuals had used melatonin supplements for at least a year, while the other half had not been prescribed it.

The results showed that those using melatonin long-term had a 4.6% chance of developing heart failure over five years, compared to 2.7% in the non-melatonin group. This means that melatonin users had a 90% higher risk of heart failure than those who did not take the supplement. Additionally, they were three and a half times more likely to be hospitalized for heart failure and twice as likely to die from any cause during the same period.

However, the researchers emphasized that their findings show an association, not causation. They noted that people with insomnia may already have underlying health issues that could contribute to both the need for melatonin and the risk of heart problems.

Should You Be Concerned?

Dr. Fady Hannah-Shmouni, MD FRCPC, Medical Director at Eli Health, advised caution but not panic. He explained that the study does not prove that melatonin directly causes these health issues. Instead, he pointed out that insomnia itself can lead to hormonal changes, such as increased cortisol levels, which may affect cardiac health. He also noted that the study's limitations include the lack of information on the severity of insomnia and the possibility that some participants in the non-melatonin group may have taken over-the-counter melatonin.

Despite these uncertainties, Dr. Shmouni stressed the importance of consulting a healthcare provider before starting any new supplement, including melatonin.

Tips for Falling Asleep Without Melatonin

If you're looking for alternatives to melatonin, experts suggest several strategies to improve sleep quality:

  1. Keep Your Sleep Schedule Consistent
    Maintaining a regular sleep and wake time helps regulate your circadian rhythm. This consistency ensures that your body releases the right hormones at the right times, promoting better sleep and alertness during the day.

  2. Practice a Nighttime Routine
    A calming bedtime routine signals to your body that it's time to wind down. Activities like taking a bath with Epsom salts, drinking chamomile tea, or reading can help reduce stress and prepare you for sleep. Avoid screens before bed, or use night mode settings to minimize blue light exposure.

  3. Try Relaxation Exercises
    Techniques such as deep breathing, yoga, progressive muscle relaxation, or meditation can lower cortisol levels and promote mental balance. Guided meditations or visualization exercises can also help ease you into a relaxed state.

  4. Stay Physically Active
    Regular exercise can improve sleep quality by reducing stress and regulating cortisol levels. However, it's best to avoid strenuous workouts close to bedtime, as they may interfere with sleep onset and quality.

  5. Create the Ideal Sleep Environment
    A cool, dark, and quiet bedroom supports better rest. Aim for a temperature between 65 to 70°F (18 to 21°C) and use tools like earplugs, white noise machines, or eye masks to block out disturbances.

Foods Needed During SNAP Freeze — Safe Donation Guide

Foods Needed During SNAP Freeze — Safe Donation Guide

The Crisis of Food Insecurity Amid Government Shutdown

Amid the uncertainty surrounding a government shutdown and the ongoing debate over whether Supplemental Nutrition Assistance Program (SNAP) benefits will be released to nearly 42 million Americans, food banks and giving networks across the country are working tirelessly to meet the growing demand in their communities. This situation has placed many food banks in what is being called "crisis mode," as families who rely on SNAP benefits face an uncertain future.

Jason Jakubowski, President and CEO of Connecticut Foodshare, explained that the uncertainty around SNAP benefits combined with the approaching holiday season has created a "nightmare scenario" for families. He noted that people who depend on SNAP don’t know when or if their full benefits will arrive, which has led to a surge in demand at food pantries and mobile food distribution sites. “For every one meal we can provide at the food bank, SNAP can provide nine,” he said.

With increased demand, there is also a growing number of individuals looking to help. Operation Food Search in St. Louis reported that a recent food drive with City Foundry saw 20,000 pounds of food donated—enough to feed 5,000 people in a day. However, in triage situations, it can be difficult for those new to food rescue and donation to understand how they can make the most effective impact.

Experts in food donation and safety provided guidance on how to ensure donations are as helpful as possible. Before making any donations, reaching out to the specific organization you're interested in supporting is a key step. This helps avoid well-intentioned but potentially unnecessary donations that may not align with the needs of the community.

“Before making a donation, the most helpful thing donors can do is check the guidelines of the organization they’re donating to,” said Kyle Waide, president and CEO of Atlanta Community Food Bank. “Food banks, pantries, and community fridges often have different storage capacities, safety requirements, and community needs.”

Jakubowski echoed this advice, noting that “a quick phone call can make your gift more impactful” and prevent donations from going to waste. He emphasized that each pantry serves a different community with unique needs and storage capacities, so checking in first ensures that donations go where they are needed most.

In addition to food donations, monetary contributions and volunteering are also valuable ways to support these networks. “We need donations to help us purchase food and transport it to our pantries and mobile sites. We need volunteers to help sort through donated food before it goes out on our mobile trucks,” Jakubowski said.

What to Donate: Tips from Experts

When choosing what to donate, experts recommend considering what you would feed your own family. Melissa Weissler of Operation Food Search advised, “Think about what you and your family enjoy eating, and let that be your guide.” She noted that food banks and pantries serve a wide variety of personal and cultural preferences, and it's important to be sensitive to these differences.

Kyle Waide added that donors should choose items that are nutritious, shelf-stable, and easy to prepare. He also stressed the importance of ensuring that items are unopened, in good condition, and within their expiration period.

Some of the most commonly requested items include:

  • Peanut butter
  • Canned meats (tuna, chicken, etc.)
  • Canned vegetables and fruits
  • Rice, beans, and pasta
  • Cereal
  • Shelf-stable instant meals
  • Shelf-stable milk
  • Granola bars
  • Fruit cups and applesauce
  • Crackers
  • Soups, stews, and broths

Jakubowski noted that protein-rich foods and dairy products are among the most sought-after items. However, he also mentioned that under-donated items like meat proteins can vary depending on the community’s needs. Calling ahead to check on under-donated items is a great way to build a relationship with your local food pantry.

Common Mistakes to Avoid

There are several common mistakes that donors can avoid by reaching out before donating. Wagner highlighted that many people tend to bring items high in carbohydrates that don't promote a balanced diet. These types of items are already abundant at food banks, so balancing them with more needed items is ideal.

Specialty items that require specific storage conditions can also be problematic if the pantry isn’t equipped to handle them. Additionally, holiday-specific items may sit unused for too long, leading to waste. Glass containers, condiments, specialty sauces, homemade foods, and baby food are also less effective, as they may not be versatile enough for the diverse needs of the community.

Weissler also pointed out that some staples, like rice and beans, while nutritious, can be time-consuming to prepare. People on SNAP benefits are often working and may not have the time or resources to prepare dried beans properly.

By following these guidelines, donors can make the most impactful contribution to their local food banks and help address the growing need in their communities.

The One Thing 95% of Healthcare Execs Agree On, Says HFMA CEO

The One Thing 95% of Healthcare Execs Agree On, Says HFMA CEO

This is a preview of the November 6 edition of Access Health—Tap here to get this newsletter delivered straight to your inbox. Good morning. Yesterday was the submission deadline for Rural Health Transformation applications, and some states have started releasing overviews of their plans. Here’s what we know so far (a special thanks to my colleague Lauren Giella for her reporting on this topic).

At the time of writing on Wednesday, three state governors had publicly unveiled their blueprints: North Dakota Governor Kelly Armstrong, Missouri Governor Mike Kehoe and Mississippi Governor Tate Reeves. Unsurprisingly, telehealth expansion and stronger workforce pipelines were core to their proposals.

But I did find another common thread throughout the states’ plans: They all called for some level of interoperability between health care stakeholders. Missouri aims to create a “unified, regional network” that will connect providers, public health agencies, at-home resources and digital health tools to expand access, according to Kehoe’s news release. Mississippi wants to build a “connected, data-driven network of emergency, clinical and community-based services,” Reeves said. And Armstrong outlined four strategic initiatives for his state, including “connecting technology, data and providers for a stronger North Dakota.”

A few weeks ago, on the heels of the Summit on the Future of Rural Health Care, I wrote about the skepticism that many health care executives expressed when asked about the $50 billion transformation fund. (If you missed it, you can check out that newsletter here.) I’ve come across a few recurring concerns: (1) that the plans will be too broad to effect real change, (2) that they’ll set up costly programs that won’t be sustainable once the cash infusions end and (3) that $50 billion is not nearly enough to offset the $1 trillion in Medicaid and CHIP cuts that hospitals are expecting in the next decade.

We don’t have every state’s plan yet, and the information we do have isn’t very detailed. But so far, those concerns I outlined above appear to be valid—especially when it comes to the sections on “connected networks.”

Health care IT executives know that data exchanges aren’t easy to build. Leaders spoke about this in depth at My healthy of life’s Digital Health Care Forum, chronicling privacy concerns, internal data silos and complex relationships among competitors. And those are concerns from well-funded health systems, which have more solid IT infrastructures than their rural, independent counterparts.

Plus, maintaining a connected network will undoubtedly take resources, and the fund only lasts five years. It is unclear how these projects will sustain themselves over the next few decades.

Fortunately, states won’t be working toward these goals on their own. This week, a coalition of health tech companies launched the Collaborative for Healthy Rural America, specifically designed to advance the Rural Health Transformation projects. The group intends to address access challenges through “shared infrastructure, unified data and modern technology,” and will work up an “AI-enabled interoperable operating platform” to help states carry out their visions, according to the Collaborative’s website and news release.

Founding members include Lumeris (primary care), Teladoc Health (virtual care), Nuna (an app with an AI “coach” for chronic disease patients), Deloitte (for data systems interoperability expertise), and Unite Us (a company that builds networks to coordinate care and improve communications between health care and human services organizations).

Plus, the Collaborative aims to improve access nationwide, not just in awarded states. Perhaps these companies, which are well-resourced and nationally scaled, could give some of the state-wide plans a helpful boost—and keep this entire endeavor from being a bust. We’ll know more when the winners are announced December 31, and as the funds are distributed in early 2026.

What stood out to you from the early Rural Health Transformation Fund proposals? Send me an email at a.kayser@newseek.com and let me know.

In Other News Major health care headlines from the week

My healthy of life will host a live webinar, “Traveler to Teammate: Becoming a Hospital Where Nurses Choose to Stay,” on Wednesday, November 19, at 2 p.m. Eastern.

My colleague Aman Kidwai will host the discussion with Dr. Regina Foley (Chief Nursing Executive and Chief Clinical Transformation and Integration Officer, Hackensack Meridian Health), David Rutherford (Senior Advisor, HR Transformation, OhioHealth) and Dr. Vikas Sinai (President of the Lown Institute). Learn more and register for free here. I hope to see you there!

Athenahealth announced an ambient scribing tool and a clinical copilot named Sage at its annual customer event on Tuesday. The new capabilities will begin user testing in the first half of 2026, at no additional charge to customers.

I spoke with the EHR vendor’s CEO, Bob Segert, about his decision to build these tools internally—and what it might mean for external solutions that currently live atop the platform. Get the scoop here.

Hospitals and health systems across the nation are rebranding. At least six organizations shared new names this week, with many of them symbolizing new visions.

BJC Health System in St. Louis is dropping the “system” from its name and adopting a new tagline (“Because every moment deserves exceptional care”). Franciscan Missionaries of Our Lady Health System in Louisiana will now be known as FMOL Health. CHI Memorial hospitals across Tennessee and Georgia will adopt the name of their parent company, Chicago-based CommonSpirit Health. The national senior living provider CareSouth Health System is rebranding across all its divisions and lines of business, launching an updated website and logo.

Some of the updates apply to recently acquired facilities. For example, Washington Regional Medical Center in Fayetteville, Arkansas, is renaming Physicians’ Specialty Hospital once it assumes operations of the facility on December 1. The new name will include “Washington Regional” ahead of the existing title. And HCA Healthcare has rebranded more than 35 care sites across Charleston, unifying them under the for-profit system’s name, according to The Summerville Journal Scene.

These announcements come as many health systems seek to create a more seamless health care experience for patients—and some look to form competitive brands that can go head-to-head with household names like Amazon and marketing wizards like Hims & Hers.

The government has been closed for more than a month, and anxieties are festering amid lingering policy questions—especially the fate of the Affordable Care Act (ACA) enhanced premium tax credits (APTCs).

On Monday, a pair of House Democrats and a pair of House Republicans released a bipartisan statement of principles, proposing a temporary two-year extension of the APTCs, among other reforms to prevent fraud and “ghost beneficiaries.” It’s not a guarantee, but it is a welcome signal of compromise.

Pulse Check Executive perspectives on key industry issues

Financial sustainability is a top concern for health system CEOs and CFOs. That’s why I sat down with Ann Jordan, president and CEO of the HFMA, for this week’s Pulse Check.

The HFMA (or the Healthcare Financial Management Association) is in a unique position. It’s a non-lobbying organization and expands beyond the traditional definition of a professional association because it speaks to a number of players rather than to a single trade, like nursing or cardiology. In other words, it occupies a “horizontal lane of an industry that is becoming increasingly dynamic and destabilized,” as Jordan put it.

Currently, the HFMA is focused on equipping members with insights to advance their organizations’ financial management and applying that acumen to guide strategy in the broader health care industry, Jordan said. To advance that goal, the HFMA recently launched the business initiative Vitalic Health, which focuses on convening stakeholders to discuss industrywide solutions. In mid-August, they launched a “Vitals Tracker” to rapidly assess the health of the health care system—and declared that it is in “serious condition.”

Here’s what Jordan told me about the new tool and the work to stabilize health systems’ finances.

Editor’s Note: Responses have been edited for length and clarity.

What are the main barriers to financial sustainability for hospitals and health systems right now, and how are you working to address them?

Point number one is understanding what we should look at in terms of financial sustainability and from what perspective. When your practice [is] horizontal [like the HFMA’s], should it be from the perspective of sustaining a business, a stakeholder group or the overall “greater system,” if you want to call it that, to advance health care generally to our communities?

When you talk about sustainability, one, naturally, is making sure that there is financial sustainability so that service can be delivered right, at the end of the day. If health systems and hospitals cannot stay open, health care is not going to be delivered. So that’s primal, that’s basic.

But this longer-term play in terms of financial sustainability and outcomes, there really has not been a meaningful and objective conversation on what that means, and that’s a little scary, given the fact we have a $5 trillion industry pushing upward to 20 percent [of the nation’s] GDP. So, part of this initiative underlying Vitalic Health and the tracker was, for the first time, to start identifying those measures and sub-measures, how they have interconnectivity and [whether they are] getting better or worse. It’s strange that that has not been done before at the macro level.

For me, in terms of what are we thinking about [when it comes to] how we become financially sustainable, we’re trying to educate and understand [that] ourselves, and we want the whole industry to help us.

Tell me a little bit more about the Vitals Tracker. As you were building this out, what did you find that is pertinent to call out?

When we began this initiative of Vitalic Health, we didn’t want to tell people what we were doing and why, because then they would bring bias to the table. So there was a whole working task force for about a year behind the scenes that looked into the components and elements of financial sustainability from the top lines in health care. That was done generatively, and that was purposeful. [We] gathered up a big vat of knowledge to begin with, starting with the question, do you believe the system is financially sustainable? Over 95 percent of that big group said “no.” And you can’t get experts to agree with that percentage on anything, right?

Then [we started] breaking down all the components: First of all, what matters from a macro-economic standpoint? Our intuition is to go mezzo, to go [are] organizations surviving? That’s not what this [tracker focuses on]. This is really looking at that dynamic part of the industry, year over year. Are we getting better or worse?

Of all these different factors that we’re hearing, there are two main buckets. One is the cost, the financial element, so we wrestled it as expenditures and affordability. The other is the outcome, which we’re calling functional longevity, and that takes into account not only the wellbeing of the population, but the social determinants of health that are interconnected with those outcomes. Think of it as your hardcore financial components and what’s going into it, and then the outcome side of them, breaking down all the measures and sub-measures that are seen as the most critical indicators, year over year.

The beauty of this tracker is we didn’t have to invent sub-measures on our own and collect data. There are enough first-class institutions that have been collecting this for a very, very, very long time. But how do we create a storytelling and a measurement device that can not only look backwards to allow us to learn, but proactively be turned forward to see how potential policy could impact us in the future?

You mentioned that 95 percent of experts said the health care system is not financially sustainable. But how many believe that it can become sustainable? Is there optimism there?

This is where you begin to have different views. If you go back to innovative disruption models—incumbents versus disruptors, builders versus fixers—we’re at that epicenter right now, and I think it’s going to be a combination.

So, do we think we can get there? We don’t have a choice. There’s too much on the line when you’re talking about health care. To serve our communities, we have to figure out a way to do it, and there are a lot of brilliant people out there looking at this.

But what needs to happen is a concerted effort so [that], at the end of the day, it’s not a few that survive; there is that interconnectivity across all stakeholders to go forward together. Right now, you see a lot of trends going around the country where different groups are incubating together, right? They’re forming these different initiatives, where stakeholders, maybe 10 or so, are coming together to look at how our model can be successful. Well, that’s going to just lead to bigger silos across the country.

How do we make sure there is that ongoing concern, so that overall, we’re delivering health care in a way that is available to all Americans? I believe there is optimism that it can become sustainable. I believe there are very divergent theories right now in terms of the incumbents versus the disruptors, on what that looks like.

From your perspective, what does a path to financial sustainability require? How do we get the entire health system on the same page?

We’re calling it solve-based convening. There needs to be a purposeful effort to bring together stakeholders that are aligned in purpose, [that] put down [their] own self-interest and bias. Look at the opportunity or the problem before you, and come together and solve it, because there’s so much of that collaboration that can occur, starting with payers and providers.

I think everyone can admit there’s a lot of administrative waste that’s driving up cost in health care. There are ways to solve that. An army of the willing, if you want to call it that, can do this in a safe, unbiased place.

Now, going back to HFMA, we’re non-money, we are apolitical, and we play in that horizontal plane, and that’s why we do feel it’s upon us to step forward at this time, to be one of those few organizations that can set a table and bring everyone to it. I truly believe, too, when your mission is leading the financial management of health care and the data is showing that your system is financially unsustainable…what obligation do we have to step up right now? That is the soul-searching that we had to do, and it’s critical for all the players in health care to do right now.

The other comment that I’ll say is, if we are the leaders of health care financial management [and] we don’t [take action], if not us, who? Eventually someone is going to have to lead this. We can either be active leaders and participants, or we can let someone else come that might have bias or different interests than our own.

What’s one thing that you would recommend all hospital and health system CFOs do to improve their organizations’ financial sustainability?

I want to thank them for their perseverance and resilience. They have been going through [a lot, from] the pandemic to this current environment of drastic change. Whether it be from AI and technology or the [Trump] administration, the role of the CFO in the United States health care realm has changed so much. And, man, are they stepping up to the task.

Number one, I want to recognize that [at a] higher level, they have become the ultimate risk managers, and to understand the consequences to the community of not making this work. That’s a lot of pressure. I want to give credit to those financial professionals leading us through all this change.

But in terms of what we need to be mindful of for sustainability, when you’re in a financial realm, it comes down to your payment model. All these different changes that are going on, we’re going to assess that a lot of it comes down to their payer mix, and a lot of it comes down to understanding risk pools.

So, as we’re going through all of this, be mindful [that] despite the fact we have all these things going on from supply chain, or going on from accelerating labor costs, the core comes down to that payment model—and that’s going to have to change, too.

The complexity of the CFO…think about it. They’re getting hit from all these macro-factors, [including rising] litigation costs. But to serve the patient, you gotta have that payment model intact.

It’s a very hard role right now. I definitely don’t have all the answers, but I think through the convening that we’re seeing, particularly of CFOs across the country, we’re trying very hard to figure it out.

C-Suite Shuffles Where health care leaders are coming and going

Dr. David Kirk has joined Regard as chief medical officer. He comes to the technology company—which specializes in proactive documentation solutions that review EHR data to recommend diagnoses—from WakeMed Health & Hospitals in Raleigh, North Carolina. He most recently served as the system’s chief clinical integration officer and executive medical director of critical care medicine and eICU.

AdventHealth named Todd Goodman its new CFO, just months after David Banks took the reins as president and CEO. Goodman has worked at the Altamonte Springs, Florida-based health system since 1991. He was promoted to CFO after serving as its executive vice president of finance. Read more at My healthy of life.

In Montgomery, Alabama, Jackson Hospital is assembling a power team to guide it through ongoing Chapter 11 bankruptcy proceedings— including a few former executives from the for-profit health system giant, HCA Healthcare. The 344-bed hospital appointed John Quinlivan as CEO. He spent nearly two decades at HCA Healthcare, overseeing hospitals in Florida and Georgia, and is charged with leading a restructuring to “avoid hospital closure,” according to a press release from Jackson Hospital.

The hospital also selected a new three-person board of trustees to help carry out the restructuring plan. That team includes Charles Evans (former president of HCA Healthcare’s Eastern Group), Jeff Crudele (former CFO of Allegheny Health Network) and Gary Murphey (a former CEO, CFO and chief restructuring officer at financially distressed companies in various industries, and the current managing director of Resurgence Financial Services). Click here for the full scoop from My healthy of life Senior Reporter Lauren Giella.

Executive Edge How health care execs are managing their own health

We’re heading into that end-of-year push, and many leaders are feeling the pressure to finish out 2025 strong and set expectations for 2026. But 10 tumultuous months behind us, it’s not uncommon to feel a little bit burnt out—and to feel like that holiday break can’t come soon enough.

This week, I asked Ellen Sexton, executive vice president and chief growth officer at Blue Shield of California, how she prioritizes herself while juggling the demands of health care leadership—especially as part of a team that serves 6 million members in the nation’s most populous state. Here’s what she told me.

Editor’s Note: Responses have been edited for length and clarity.

“Working in the health care industry means that every day, we are working for our members. Over the years, I’ve learned I have to take care of my own health and stay grounded to keep showing up fully for my team, my family and the members, partners and communities we serve. For me, that grounding comes from doing what I love, what brings me joy and by giving back to the community.

“In addition to making sure I schedule regular checkups (including dental and vision appointments) and follow preventive care recommendations, I find that how I spend my free time also impacts my overall health. After all, what we find joy in doing impacts our mood, our overall outlook on life and how we feel each day. I spend my free time listening to podcasts, reading (I highly recommend Poor Charlie’s Almanack, a collection of speeches and lessons encouraging lifelong learning), attending music festivals, walking my dog, Sugar, and doing anything that gives me an opportunity to get away from my desk and have fun.

“I also find that laughing with my family (I’m a proud hockey mom to a teenage son), friends and colleagues plays a big role in how I feel. I also strongly believe in giving back, and for me, that is expressed through service. It’s how I reconnect to the reason I chose this field in the first place: to support the whole person, including body, mind and spirit. That same belief guides my professional work, seeing our members as individuals with stories, families, and dreams.

“Giving back doesn’t always have to mean large-scale volunteerism. Sometimes it’s mentoring a colleague, checking in on a team member, or offering encouragement to a peer after a tough meeting. These seemingly small gestures create a ripple effect—lifting others while restoring my own sense of balance and purpose.

“Whether I’m volunteering with the Salvation Army, preparing for a Milwaukee Public Library Foundation Board of Directors meeting, or contributing to the Wisconsin School of Business External Advisory Board, these experiences remind me of the ‘why’ behind my work and the broader impact we can make when we lead with empathy.

“Through the years, I’ve learned that service is sustaining. It recharges my energy, deepens my empathy and reminds me that leading with heart is the best strategy for longevity, and thus, professional wellbeing.”

CEO Circle Insights from health care thought leaders around the world

Before you go, check out this profile of Dr. Bhana Chandrakamol, the director overseeing eight hospitals for the BPK Hospital Group in Thailand, and a member of My healthy of life’s CEO Circle. His interview traces his path from the “aha” moment that sparked his career in medicine, to the top of an innovative health system.

This is a preview of the November 6 edition of Access Health—Tap here to get this newsletter delivered straight to your inbox.

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