Pediatrix Medical Group (PDC) Q3 2026 Earnings Report

The call was predominantly positive: Pediatrix reported adjusted EBITDA above expectations, revenue and same-unit growth, favorable payer mix and pricing drivers, substantial share repurchases, low leverage, and continued strategic flexibility. Offsetting concerns included lower operating cash flow, higher labor and other operating costs, the reversal of prior collection-related pricing benefits, declines in certain neonatology services, and regulatory and hospital-environment uncertainty.

Pediatrix narrowed its full year 2026 outlook to $290 million to $300 million in adjusted EBITDA; management said payer mix may remain stable, hospital administrative fee conversations and successes are expected to continue, and acuity is considered sustainable, although there is variability and factors “do bounce around a bit.” RCM impacted the quarter by a little over 100 basis points and is currently “very stable,” with the company continuing to look for ways to further automate and deliver improvement over the next coming years. Clinical salary growth is expected to remain in that 3%, 3.5% area, while management provided no guidance for 2027, said the 2027 coding rules should be finalized in the next few weeks in November, and said the OBH business is not a material part of the company.