Today on HITshow:







For-profit hospitals shine in Q3 earnings season. Today's HITshow Daily spotlights strong results from HCA Healthcare and Community Health Systems, a surge in hospital M&A activity, and Optum's real-time claims platform. Then in our second half, digital health funding exceeds 2024 totals, and CVS layoffs signal Medicare strategy retreat.







HOST: RHONDA BROOKS







📍 Hospital Earnings — Logan Stokes







HCA Healthcare exceeds expectations with Q3 revenue of $19.16 billion (up 10% YoY) and net income of $1.64 billion (up 29%). Performance driven by state supplemental payments, improved payer mix (6.1% increase in inpatient revenue per equivalent admission), and Hurricane Helene recovery. Shares traded 2.5% higher following announcement.







📍 CHS Performance — Xavier Banks







Community Health Systems beats estimates with $3.09 billion in net operating revenues (above $2.99 billion consensus). Same-location revenues rose 6% and adjusted admissions jumped 7.7%. Shares traded 25%+ higher as company crosses from negative to positive free cash flow after nine consecutive quarters of improvement.







📍 Hospital M&A — Teresa Vaughn







Q3 hospital deal activity increases with 15 new transaction announcements. This activity reflects "ongoing realignment in transitioning or less attractive market models" as organizations seek resilience through outpatient care, labs, and health plan management capabilities.







📍 Claims Processing — Jade Romero







Optum launches Optum Real at HLTH—AI-powered platform providing real-time claims and reimbursement processing. Over 5,000 visits processed show reduced administrative errors and improved patient experience.







📍 Digital Health Investment — Nate Collier







U.S. digital health raises $3.5 billion in Q3 across 107 deals, bringing YTD total to $9.9 billion—already exceeding 2024's $8.4 billion through Q3, per Rock Health. Sector recorded 19 mega-deals ($100M+) accounting for 40% of year's funding ($3.8 billion). Notable rounds include Ambience Healthcare (AI documentation), Judi Health (benefits platform), and OpenEvidence (AI medical search).







📍 Workforce Reduction — Anika Shah







CVS Health lays off 72 employees (remote workers in OH, MI, KY reporting to Hartford office) following exit from Aetna Medicare Medicaid Program after losing 2026 contract. Cuts occur December 31, 2025 through March 31, 2026, affecting primarily case manager RNs plus analysts, associates, and social workers.







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