Cardiff Lexington Corporation’s subsidiary, Nova Ortho and Spine, began performing orthopedic and spine procedures at Doctor’s Memorial Hospital in Perry, Florida, on December 11, 2025. The first surgeries were completed that day, marking the company’s entry into Taylor County, a region identified by state health data as having the lowest health outcomes in Florida and a high uninsured rate.
The expansion aligns with Nova’s strategy to broaden its footprint in rural Florida, where demand for lien‑based orthopedic care is high. By partnering with a non‑profit community hospital, Nova can leverage existing infrastructure while deploying its own clinical staff and equipment. The partnership is structured as a service‑line addition rather than a joint venture, allowing the hospital to maintain ownership of its facilities while benefiting from Nova’s specialized expertise and patient‑flow model.
Cardiff Lexington’s Q3 2025 financials underscore the strategic importance of this move. Revenue rose 125.6% year‑over‑year to $1.23 billion, driven by a 140% increase in core orthopedic services and a 110% rise in spine procedures. Gross profit margin expanded to 62.1% from 46.8% in the first nine months of 2024, reflecting higher pricing power and improved cost control in the new market. Despite the revenue surge, the company reported a net loss of $45 million, a decline from a $30 million loss in the same period last year, largely due to one‑time legal and regulatory expenses.
CEO Alex Cunningham said the Perry launch “reinforces our commitment to delivering high‑quality, affordable orthopedic care to underserved communities.” He added that the company’s lien‑based model—where payment is tied to legal settlements—provides a sustainable revenue stream in areas with limited insurance coverage. Medical Director Dr. Marc Brodsky noted that the new location will serve an estimated 15,000 residents, with an anticipated 200–250 procedures per month once the service line is fully ramped up.
The move is expected to generate incremental revenue of $30–$40 million annually, with a projected gross margin of 60% for the Perry operations. Management anticipates that the expansion will improve overall profitability by offsetting higher operating costs with the high‑margin orthopedic and spine services. The company’s guidance for the full year remains unchanged, but the Perry launch is cited as a key driver for the expected 10% revenue growth in 2026.
The decision to enter Taylor County also positions Nova to capture a growing segment of patients who rely on personal injury and auto‑liability coverage, a core part of its business model. By expanding into a region with a high uninsured rate, Nova can increase its patient volume while maintaining its lien‑based revenue structure, thereby strengthening its competitive moat against traditional hospital‑based orthopedic providers.
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