Commitments and Contingencies

9 Months Ended

Sep. 30, 2026

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Professional Liability Claims

On or about August 29, 2026, the Company reached a settlement on a professional liability suit involving four plaintiffs. The

settlement calls for $40.0 million to be paid to the plaintiffs prior to the end of 2026. Typically, depending on the insurance

carrier involved, the carriers either pay their portion of the settlement directly to the plaintiff(s) or reimburse the Company for

covered amounts paid to the plaintiff(s). In this situation, in reliance on the carriers’ agreement to fund the settlement, the

Company agreed to settle the case; however, certain carriers have subsequently refused to fund their portion of the settlement.

Management of the Company believes that this matter is fully covered by the Company's insurance and that any amounts paid

by the Company that exceed its self-insured retention are collectible. Management intends to pursue all available remedies to

receive full funding of the insured amount. At September 30, 2026, the Company's professional and general liability accrual

included $40.0 million related to the settlement in other accrued expenses and liabilities on the condensed consolidated

balance sheet and $34.0 million in other current assets that represents an estimate of the amounts above the Company's self-

insured retention that it expects to recover under its professional liability insurance policies. Although management believes

that the $34.0 million is recoverable, the timing and ultimate amount of such recovery will depend, in part, on the resolution

of the disputes with the applicable carriers.

Litigation and Regulatory Matters

From time to time, claims and suits arise in the ordinary course of the Company's business. The Company has been, is

currently, and may in the future be subject to claims, lawsuits, qui tam actions, civil investigative demands, subpoenas,

investigations, audits and other inquiries related to its operations. In certain of these actions, plaintiffs request punitive or

other damages against the Company that may not be covered by insurance. These claims, lawsuits, and proceedings are in

various stages of adjudication or investigation and involve a wide variety of claims and potential outcomes. Depending on

whether the underlying conduct in these or future inquiries or investigations could be considered systemic, their resolution

could have a material adverse effect on the Company's results of operations, financial position or liquidity. 

The Company records accruals for such contingencies to the extent that the Company concludes it is probable that a liability

has been incurred and the amount of the loss can be reasonably estimated. Apart from ongoing litigation associated with

unresolved professional liability claims as described in Note 7 above, management does not believe that the Company is

party to any proceeding that, either individually or in the aggregate, could have a material adverse effect on its business,

financial condition, results of operations or liquidity. However, in light of the inherent uncertainties involved, it is possible

that the settlement of these unresolved claims could have a material adverse impact on the Company’s future results of

operations, financial position, or liquidity.

Securities Litigation

On January 7, 2026, a purported stockholder filed a putative securities class action against the Company and certain current

officers in the lawsuit styled Postiwala v. Ardent Health, Inc., et al., Case No. 3:26-cv-00022, which is pending in the United

States District Court for the Middle District of Tennessee, Nashville Division. An amended complaint was filed August 12,

2026. The complaint is brought on behalf of a putative class consisting of all persons (other than defendants) who purchased

Company securities between July 18, 2024 and November 12, 2025, and alleges that defendants violated Sections 11 and 15

of the Securities Act of 1933, as amended (the "Securities Act"), and Sections 10(b) and 20(a) of the Securities Exchange Act

of 1934, as amended (the "Exchange Act"), and Rule 10b-5 promulgated thereunder based on allegedly false and misleading

statements and omissions. Specifically, the complaint alleges that the Company made material misstatements and omissions

in the Company’s initial public offering registration statement on Form S-1 and incorrectly accounted for and reported on

certain accounts receivable and certain insurance reserves during 2024 and 2025 which caused its stock price to be inflated.

The complaint seeks unspecified monetary damages, recovery of fees and costs, and other relief that the court may find

appropriate. 

The Company intends to vigorously defend the claims made; however, currently no assessment can be made as to the likely

outcome. At this time, the Company is not able to reasonably estimate the amount or range of the ultimate liability, if any, in

connection with this case.

On July 31, 2026, the Company received a letter from the Atlanta regional office of the SEC in connection with a non-public,

fact-finding inquiry, requesting that the Company voluntarily provide information regarding the $42.6 million decrease in

revenue related to the collectability of accounts receivable as reported in the Company's Form 10-Q filed on November 14,

2025. The Company is cooperating with the SEC's request. At this time, the Company cannot predict the timing or outcome

of this inquiry.

Derivative Action

On February 26, 2026, a stockholder derivative action styled Thompson v. Sotir, et al., Case No. 3:26-cv-00219 was filed in

the United States District Court for Middle District of Tennessee, Nashville Division, against certain current officers and

directors. The Company is named as a nominal defendant only. The factual basis of the complaint is largely the same as in the

Postiwala case mentioned above but includes some additional allegations. The complaint alleges breaches of fiduciary duties,

gross mismanagement, waste of corporate assets, unjust enrichment, and violation of Section 14(a) of the Exchange Act. The

complaint seeks unspecified monetary damages, restitution, the adoption of certain governance reforms, recovery of fees and

costs, and other relief that the court may find appropriate. 

The Company intends to vigorously defend the claims made; however, currently no assessment can be made as to the likely

outcome. At this time, the Company is not able to reasonably estimate the amount or range of the ultimate liability, if any, in

connection with this case.

Cybersecurity Incident Litigation

In November 2023, the Company determined that a ransomware cybersecurity incident had impacted and disrupted a number

of the Company's operational and information technology systems (the "Cybersecurity Incident"). During this time, the

Company's hospitals remained operational and continued to deliver patient care utilizing established downtime procedures.

The Company immediately suspended user access to impacted information technology applications, executed cybersecurity

protection protocols, and took steps to restrict further unauthorized activity. Additionally, because of the time taken to contain

and remediate the Cybersecurity Incident, online electronic billing systems were not functioning at their full capacities and

certain billing, reimbursement and payment functions were delayed, which had an adverse impact on the Company's results

of operations and cash flows for 2023 and the first quarter of 2024.

As a result of the Cybersecurity Incident, three putative class actions were filed against the Company in the U.S. District

Court for the Middle District of Tennessee: Burke v. AHS Medical Holdings LLC, No. 3:23-cv-01308; Redd v. AHS Medical

Holdings, LLC, No. 3:23-cv-01342; and Epperson v. AHS Management Company, Inc., No. 3:24-cv-00396. These cases

were consolidated by the District Court on April 24, 2024, under the caption Hodge v. AHS Management Company, Inc., No.

3:23-cv-01308 (M.D. Tenn.). The complaint for the consolidated class action, filed on behalf of approximately 38,000

individuals who alleged their personal information and protected health information were affected by the Cybersecurity

Incident, generally asserted state common law claims of negligence, breach of implied contract, unjust enrichment, breach of

fiduciary duty, and invasion of privacy with respect to how the Company managed sensitive data. On October 4, 2024, the

Company executed a settlement agreement to resolve the consolidated class action litigation. On October 9, 2024, the District

Court preliminarily approved the settlement. Plaintiffs filed a Motion for Final Approval of the Settlement ("Motion for Final

Approval"), which the Company did not oppose. Following a hearing on the Motion for Final Approval that was conducted

on August 1, 2025, the Court ordered class counsel, the settlement administrator and the Company to implement the agreed

upon settlement of the consolidated case. Pursuant to the settlement, the Company made settlement payments, the total of

which did not have a material impact on the Company's results of operations, financial position or liquidity. Upon entry of the

Final Order, the clerk was ordered to close the case.

During the nine months ended September 30, 2025, the Company received $21.5 million of business insurance recovery

proceeds related to the Cybersecurity Incident, all of which was included in other non-operating gains on the Company's

condensed consolidated income statement. No business insurance recovery proceeds related to the Cybersecurity Incident

were received during the nine months ended September 30, 2026.

Acquisitions

The Company has acquired, and plans to continue to acquire, businesses with prior operating histories. Acquired companies

may have unknown or contingent liabilities, including liabilities for failure to comply with healthcare laws and regulations,

such as billing and reimbursement, fraud and abuse and anti-kickback laws. The Company has from time to time identified

certain past practices of acquired companies that do not conform to its standards. Although the Company institutes policies

designed to conform such practices to its standards following completion of acquisitions, there can be no assurance that the

Company will not become liable for the past activities of these acquired facilities that may later be asserted to be improper by

private plaintiffs or government agencies. Although the Company generally seeks to obtain indemnification from prospective

sellers covering such matters, there can be no assurance that any such matter will be covered by indemnification or, if

covered, that such indemnification will be adequate to cover potential losses and fines.