LHC (LHCG) 28 Feb 192018 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the LHC Group Fourth Quarter 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would like to introduce your host for today's conference Mr. President Vice Senior Elliott, of Finance. Eric ahead. go Please

should page. I'd Thank posted supplemental of you the welcome the release The earnings quarter XXXX. last everyone. our would information copy for conference on highlight you, deck the XXXX guidance can our on and page. quarter good fourth Investor of results that Everyone quarterly XX, are ultimately be December like our as Christie, Relations full-year well night. like this available transcript ended received on to earnings section supplemental the as some call for a a XX-K of XXXX the to call morning, of have also LHC are this found to I a earnings and Group's have copy and released, we

our supplemental and reconciliations breakdown all of includes Our adjustments. deck of the

We from Operating Chief will a Officer; non-GAAP have In these Chief Chief Proffitt, Stelly, we'll some and during Myers, today. call Financial Don Keith President measures our refer Officer; Josh to and prepared Officer. Chairman comments moment Executive and

provided filings. subsequent call uncertainties from are LHC could SEC this and within no materially we to of our results beyond. may reflect Private those would regarding in Annual like to release and in this XXXX for limited comments Act. but financial remind supplemental a Before Securities to the events. statements the our to Actual These conference update have meaning our call shall Reform and start, discussed of because which differ constitute number information not obligation our Litigation press that forward-looking forward-looking projected statements and information on in risk Group factors financial include, are everyone I in Quarterly statements included of in the results statements

and Now Keith LHC I'm the to Group, of introduce pleased CEO Chairman Myers.

morning's for call. Eric, you, this in in participating and Thank dialing and thank you, everyone

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on Now, our Josh? here's color some the financial Josh XXXX to results and provide guide

joining Thank you, you Keith, good morning, Thank and our call. all for everyone.

and sector service successful all, heartfelt that you family financial Group information all a and the outlook. XXXX the thank providing guidance themes tirelessly my transition. on of I assumptions, how and to patients you my country you the would the our Office family members like teams our from evident have our and supplemental who the like they With special. and to do Almost do breakdown LHC To for time Family results prepared so remarks I family on care each our website worked the I thank to this a care our for. also ensure to what and professionals would more all and clinical focus just high larger performance, very to Support on that day by for Home morning always, quality saying to like among every our smooth across much As makes provide detail and I in begin posted appreciate

here to to strong growth the the the our expectations management For The are takeaways. due top solid expenses. on for year results, adjusted to the the pushed big strong general our financial XXXX us finish fourth fourth of cost and quarter within EPS end admissions and quarter administrative

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we as We was Our a revenue points a our important adjusted loss some impairment our sequentially to highlight costs, severance costs basis of of XX.X% million. consolidated total in optimize is point lease approximately quarter that connection basis up both termination locations points $X million in part related and that year-over-year. to XX EBITDA intangibles in was strategy results those portfolio, fourth and $XX that XXX XX the with closures. approximately fees contribution close to and encouraged did of represented One

All can take great XX close to trajectory of improvement notes deck by deck. was and adjustments down all accounted Pages metrics XX XX across the in locations these our broad-based. through the be This put X results adjustments. of were how and key the found on on in details the supplemental these Page us supplemental XXXX. the loud was Page staff segment. of This us right for those The for a move of to unprofitable costs

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and provide With remained X.Xx EBITDA capacity. credit sheet strong adjusted additional at leverage with $XXX facility an on million million our can feature balance available $XXX Our of an accordion year-end. that

to We supplemental EPS On remain of XXXX. growth EBITDA XX.X% cost we've attention AFAM growth net growth At outlined are well, Page The we're the to as in on are $XX the acquisition foreseeable our future. mode well-positioned $XX range million from of XX XXXX. call and of the your the the of I'll adjusted of we for growth expecting of midpoint XX.X% key to this million in front adjusted service to XX.X%, deck, for but guidance compared acquisition are expecting XXXX. as listed assumptions synergies the revenue

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expecting The that first increase Health XXXX Medicare we is PPS the X.X% a from update. Home are

of The our annual in is second earlier million that fourth XXXX $XX locations XX revenue included closed not that revenue. of the quarter the represented included is nearly XXXX that results the I That in referenced that we guide.

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of more this much year. see will that You

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Brian Instructions] Our [Operator Jefferies. question is of you. Thank Tanquilut first from

Your line is open.

guys. great good Hey, on morning year. Congratulations a

week. guys on announced Geisinger so I this joint guess question venture, earlier So you first the my is

think remaining can and that be market? you assets? in to we Thanks. agreement and So also growth us can thinking JVs rollout within for the for continue just strategy more the Geisinger opportunity how organic and you in plan give ramp the how the JV the growth should pipeline about And color if you the

Sure.

ask Geisinger that. involved tag Josh a has help very we'll venture. to been that team with Josh the joint me on I'll So little.

it's payer systems. we're the be So want processes perform in more us JV on and mix on from in and we and been bullish of our larger strategy on past strategy, in. if it the value-based even continuously that to But They participate more past. then the to to we've bullish JV possible, because I different we on today harder. bullish learn They're the improve harder think been terms we've hurdle we much and lot challenge learned models a they and have more overcome very

the like was have sets looking to that the Ochsner that that we that able there of capabilities they or bring knowing learned I in why I'm And the other say to were a that and were good involved. to of important and forward to to was so today. like that looking we sorry. process that And process; that our process at to be process. places on whole understand like that in to me them all about. based to on to feel we and it inbound are I'm want skill see years performance, compliment team people about over really to Geisinger, win excited in salesmanships an things I to those not opportunity that are it's a number just But the getting rewarding something it's bring that participate respond any a want and The number it's joint for Ochsner a - us calls when and a thing then the is we venture, and politics process

out our pipeline majority a the to And knocking true. The we development up mainstream. of people's that first known are we're the you decade and activities And inbound there hospital that's is we've made of us joint that doing you much very ago that venture For our now have the around doors. for wasn't when that And were was up was know model with of many opposite years, well majority going at did on a coming our very of business of something made of XXXX all. pipeline corporate weren't we component calls and and where those many us. been in been created

are in model of that like see can we that developed have It's organic the these looking in into really growth the value there. come future behind And going we predictable. number of leading that and momentum patient it create systems the from where simply want satisfaction, and add that lives to become models that business you the by And as very because through quality can says be system is Josh at something earn that for. we we it. health me caring replicated. anything organic a to that and So terms We've we to do ourselves growth, real scores well. exceptionally plug

that's mean exciting great. I at Geisinger for the great Keith as us such Pennsylvania I an is LHC and well Yes. Brian, question. markets. brand have everyone a Group. guess and such strong here is opportunity aware, New and I Jersey mean they reputation

of in in So part they bit New chose a closely planning, in underway, working their more have it their months, opportunities with for and partner. few previously. some we done, ahead us a well already executive the couldn't little be closing better to that of excited probably an other and team June momentum advance on been X I to is compared April the conversations for ahead the Pennsylvania be had of transition Jersey, and the integration acquisitions schedule of and identifying improvement we've planning, very

that it's run and partner, that little revenue conversation the a with they're rate but XX these is markets great the in really we've and The million know also more in great them it that had only and affiliated with thing with their I of other a quite innovative they've a bit unique exciting, about exhibited already would highlight as Geisinger partner makes not to around bringing the as talking health the scores you're clinical to to the coming programs, be take where and managed years, over that health JV I as results. managed plan really our capabilities plan. more well our And Medicaid here conversations Medicare going Geisinger the readmission bringing the and and is in going next quality own was somewhere and few about with products

those appreciate comments. I

we are on a Medicare So highlighted by through of Thanks. follow-up just So and potential working you good the plans just things are mind way, deck, how with downside deck, don't slide a the different us payers contracts slide that about risk? the advantage job with with you're that private should if in one on that the thinking be or contracts underway? in those that, the walking the upside you

Brian. Yes, great question,

to emergency a we nature. have to reducing earn XXXX, achieve, base months. few that to now and you things expect as operating it a the start and those improvement starts incremental rate. talked last improvements rate, into ahead of the in base We I these then coming to they're of some on belt. have to quality up true probably metrics But care would margin as in them, that you got department managed to So upside arrangements. LHC downside, have the on underlying if at some a they ammunition point, we've when improvement ability payers components the evidence that the that generate get quality we therefore the for more and we've ours it to within metrics a interesting new quite XX,XXX And engage areas, go would conversations we're improvement, all more getting bit three have as under some rate, we're foot level, the be your but about I in as be across continuing they that business. are little have finalized Almost call, side rates, utilization, with to Brian, we Family monitoring see and and and but different really well are But both would side, with that A four of And say savings And to candid. more potential upside mostly we got little now them. some upside arrangements rehospitalization more a think other bit of our

point. Don. find we years think for about side? those what a a once yes, quality downside, the really Josh to is emphatically and payer that I'll outcomes. is said around how we've And it's us; we that an the have this aligned we deploy Brian, achieve brings and say up that up should on with down interesting we'll

because going downside payment I like you that to period. and us the So programs if much are announce done we're even ACO that us wouldn't the value our continued hear an these and the underscore the for on him get really topside with to when confident of focus we've

off got get and the back right, Thank jump you. I'll All it. call with you.

Thanks Brian.

Thank you.

next Ellich Our Kevin from Craig-Hallum. with question is

open. Your is line

Hey I the wanted of off integration's on, questions. April. in Almost guys, deal start the Family. realizing guys I going up ahead with Keith; Clearly were you handle thanks schedule, you for guess well taking the coming to

your what if Just it's and and the that kind deal to how some Family, could could areas about contrast use surprised talk and also you Almost relative you initial about of work? the most wondering gone expectations positively compare you announced both when

from a negative were something negative that there the surprises, the to end. you? incredible surprises surprise on with of we me But BRG feel I work say no guess way we developed we I live. in amount there like diligence diligence but process to the no before because standpoint, of did you And So want streams front were the went

So we didn't leave much to risk.

know we - So desire thought learn day been be move would obviously and were together team. practices approach a side though side we rivalry And biggest on the venture. the I off message that LHC would with that anticipated leadership together two is answers then walking together messaging, that's we didn't one. trained what battles think the to president of those. my best really some began And in presidents internal we me came incredible around came the have We have the bringing us function things that that hat's think the to the Don let at the a That we've I to approach. Donald from welcome than joint everyone that division of may worst an for A that as Even same us culturally. do. and had Almost really case organizations other. about to and And now, fight. got one help have to small a creating from would important. really to do From rather the I hospital and and lot long division we can from LHC, you that surprise, think was something with job and all there of rivals cultures for saying all. identify that any when Almost to who way some how anticipated together that. go I competitors Family political Family and have each for face we our of probably the one-time. them, time wasn't example, To at and and one to did

very successful. on not sense If and day of to you arrogance you're have about in walk be one you you, going a

those to So getting this want the on question my thoughts. I'm I fly so but are you're just that it expecting

Homebase I'm we a have optimization. little Smack closer home. very we're in middle remodeled, when I'll Yes. sit We've and I and of level to not high announced in we open. pleased Homecare leadership restructured one the [indiscernible]. all open I that very were echo everything we will this about And say think Keith were we there candidly. and surprises said that position no the deal Dab we

Those based as they well poisoning all at and comments going instrumental in actually and continually, moving PCMS. our is finalize our talked prepared both integration two the of community components the which that from us be are to about. three As growth the to legacy in platform on this home side

no and So confidence feeling steps have and verbose there out in conservative The of being the well. what we're on I those in echo for us and there already up so XXXX half lot back this. about you for what Keith summary, give should Then where followed recognized us be of and who extremely upside said, were surprises. to this a is

managed success negotiating again, increase guys. Can I some in you XXXX great the In should some going And - slide this clearly for about seen agreements we to legacy negotiating done are payers your rate environment and with the with the front, you've managed or you see the business. deck more care X% potentially we increases then year? guess, care payers. remarks. the the appreciate That's candid back I see talk

will Kevin, ask be, quarter come. every the now you answer can for And that no. years me from question to

models the having value healthcare as managed of by in care or in what's care providing evidenced journey done in laps track. on these believe it's managed ecosystem, payers it's the home. journey. evidenced of that a And care innovative more in tell optimism than the rates improvements We the in a this few going greater and the fully more the This around that definitely are overall by the is the negotiating. can journey proposition fact benefit the the momentum were kind has now, last you now payers it's and has not more had the downstream value But and that whether

us conversations them have cost when the you in component The see bend they've PMPM that trying lot been and past. are that. finally basis as to strategic a a just you are a with So than to they and the on know, more curve breakthrough they key doing as

is negotiations we where far and headed. about very sit from the where today very and won. So battle we're over, are not confident The but encouraged

of having and a as out perspective and top conversations. rate You those and stand from readmission more positions we that us overlay position on a we're really well our quality that

two for then And helpful. That's last Nope. ones me.

guys think was capital I capital, working if that Thanks. size AP quarter? to you quarter, Josh, this of if there expenses going decent statement, and was consolidation and plans parts or next flow a wondering then about. moving anything of that or be to reverse First, is or some that's XX locations we some like use closures if more there's cash closed on see looks cash, And thinking driving wondering should the centers there and accrued

one, look agencies in our process we've why. of we MLRS each the point, operations and part. like the would scaled, all Case this over to at closing when more Don. want see into by and you look monthly never go falling we to could some So in after the in right review actually close is Certainly EBITDA general always Tennessee, this and market accretive at we as call. be market. We other locations I'll we find ourselves take is Kentucky continue and here's states or first surprise

at always will that. We look

just analyze we decision make that's and best So say all do part account them, short it's of of do the our close long-term. would though, to discipline we goodwill, the still take sure we that I and when into rigor.

to So do will. that continue and always

take second part. will Josh the So

Yes.

is expenses, won't an business. attributable A AP good prepaid CapEx the all continuous Almost just uptick. are company that and of size those recurring. areas, So Family that you both portion see to be There to that the pieces do and and of some -

piece in For and you do what's is for Home probably of underway. of project AP, some side have Almost million And example, to X the or then and that related for of million software example, IP bringing Family the costs in licenses the new our expansion business. a X accruals contracts Office

that coming going up. throughout that to XXXX see You're and we before then XXXX wrap to

flows So extent. flow still with that cash free to We free an of cash some will for $XXX impact adjusted our resulted million XXXX.

us you'll free Office. $XXX to square see that, in Home pull do things. building expansion. likely just the of at give financial reason we're allocation for million nugget every little a on that main there's foot But you But to would very And make, decision $XXX here the XXXX. a million cash we capital with those XX,XXX fiscally conservative range as You responsible that have a flow on a we in our prudent Office for bit Home

other two have that's locations Lafayette another feet. throughout We square XX,XXX about

end project, to they one be of as We will creative definitely other a into XXXX. and consolidating lease costs and we our eliminating go into the all it are line lot project, bottom of at the a

Excellent. Thanks guys. all for that. Thanks

Yup.

you. Thank

question Bank is with America. from Our Gajuk of Joanna next

line Your open. is

Hey, Thank you. morning. good

the of questions a So guidance, couple here. on

I the a million comment So synergies. appreciate guidance of that $XX assumes

earnings are these correct? So cost synergies,

That's correct, Joanna.

assuming the on any mentioned, higher revenue top assets and the AFAM you that any are you the acceleration also the what for So then it can calls potential on margin of type around give terms us, AFAM improvement of assumes are of assets? there on assumptions you or color any guidance prior around in moving margins

Sure, sure, great question.

So is to anchored cost of the run guidance synergies. still as rate you pointed realized the out, million $XX

exceed of that confident that potential are we upside there's there. bit little back half We the of year, so a will the by

already Joanna, improvement to QX to seen we in QX. On We've QX improvement, the QX, again from from will margin AFAM tell you the margin some. I saw business

of lot in a run rate. that So is already the

margin We on that on assets have of improvement some reflected bit budgeted our guidance. a more AFAM little incremental the is

the late co-located see realized Revenue strategies Homecare we're two and deploying. for guide. of the But you heels that XXXX. of market X.X% intelligence this into that have So conservative for is and projecting this of that as and of we're will revenue beyond the reasons. may as XXXX But - is of synergies. that really the that utilize you None as well. tools some that's as But some of and this our we the we've the AFAM we're two, not growth well if year. One, some some of some until growth either year in growth Homebase market off for lift and upside sales we that in deploying synergies we that do then the of part is really for in conversion come

we'll to to prior confident welcome growth, maintain of which business AFAM to to be is able improvement merger. the the continue that We are positive book

you much that then how piece is the deals of deals, the - the also announced on outline. in Geisinger like included? sounds more And not Right. It of were of maybe the terms the but I one guidance, included, recently guess

us you just clarify So that to can too?

correct. That's

So point guide as Q&A. I'll in this just and go ahead maybe the revenue and well address at

and you So lists JVs occurred Family. our Slide it since XX Almost that guidance, if a deck, lot look the of at have supplemental

our them is included Geisinger would we unity, basis guidance. closed an All on never, guidance. unity as our annual not is million including from included it in in until of the $X is

of several the guide confusion bit to continued locations around none of revenue XX the Geisinger our and though, end points, will I've has from the the attributable And be be end obviously revenue. and price of million in a to So then to Geisinger, few of folks and we and year little guidance revenue Eric not before among would clarify to June concession. a is adjustment that April revenue closed year $XX on revenue the annual consensus the after the the that of just and if had you half on Within of half conversations few the guide. other of on to a there to implicit in an and then our

that we for clear real once in all are and guided hopeful revenue, for variables we've appropriately kind all made of place. it XXXX those down and with nailed So our for

the competitor your last And helpful. to prepare you that's Great, as I spending the piece assuming talk about additional there. you some PDGM? guidance, guess are for changes any on

I prepare you I currently. So it also that assuming Congress and do of assumed direct what here, in it prepare it a in space just that assuming how release but the the way is doesn't appreciate get it? the the you one kind building about, comments introduced

there prepare did how you So XXXX. prepare incremental XXXX you any - any for you as not are and incurring costs could

to you. we Yes, great into gave what are do question, frank, foresee but And that the costs our baked any of is Joanna. don't issued. be have we've a the that that to answer the And ones costs baked short guidance we in lot

All right.

your require might you some out types the and you there health. staffing specifically current guess any of you Are anything models Health behavioral doing new maybe are or I doing there's systems Home of So in from services you terms acres. discussions patients in introduce set anything, PVG that or of or terms also that to like are different to can you preparing find us around,

there as Thank you flag that prepare? to can you anything you. So of kind us

Don. is this Joanna,

do detailed and think at work Almost that a to accordance do to that a about. to very integration that talking the into you're say really and and has What somewhere high go what us or alluded to required in actually be work having we interventions the That's as exactly June we're July. you We're looked for to I that is that call. call that with to word maturation what the The makes level our PDGM patients around similar work playbook far look looking types and able BRG more I'll would excerpted developed I discipline give at the that. color to of in and Keith with plan stream would streams now you're level I that streams developing Family. probably come we the right going

could latitude alone to the think give the I you it you. rent if appease will So way cover us

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this we'll I these Thank much so guess talk questions. you, So taking later. about for

Thank you.

William from is Blair. with Matt question Larew next Our

Your open. line is

ask morning. in to HCI, is about focuses of good wanted mentioned that to one I XXXX your Hi, maximize HCI. value You of

that So acceleration manifest do XXXX or how what there? steps of are does opportunities you going in no potential see and terms in to take revenue might and new

very to I'm runs their Is this. has budgets it's note. opportunity leaders it's kind about, huge them say there care Imperium, pleased the let portfolio which are out of We've basis. and the have was it is on that our opportunity merger, thing did we they own are creek. that to doing advanced calls, house had start a put of made, a MDXU, with now was the with and lost such when formerly view that corrected. And that this has of I been but now whether that So in Fabulous a these same the up PMPM within lost each know for service off me the general, that HCI progress make a lines thought segment, one that live her in some that speaking taken different

I it. segment. of Medicare the couldn't LTS savings not it's that shared that the And loss that runs, something So is top but enough highly speak that in pays on for finally,

like as and And LHC fundamentals it. do And let I'll from market Josh. in out and with well others then congruent everything on Group. Keith, maybe to some let's expand it a myself and first that and and Bruce else as So Keith fashion listen, operations take different said, perspective, or Josh, get of very let's an things with the

Imperium going the the Kudos talk doing in merger. been times the Imperium; all in care the of the and the But that was to is and excitement bear all know in advance we're to same there candidate. a dividends several improvements and it with approach alluded It's calls almost just for I to him ACO for managed of earlier. heard on payer I jump our LTS I in that want I'll care fruit a about learnings specifically me Don's the really house are great you business. and already The diamond source. this the a having rough give in job conversations different pay lot

those very So those we are in able what on going executing then and in to contracts. is to And learn there helpful implementing be negotiations.

We've growth lives side in getting new XXX,XXX and XX to in into currently incremental volume XX as got grown new ACO and as ACOs from the PMPM we've well. on You're going XXXX the commercial from Imperium ACOs to contracts well product. ACOs see attributed up XXX,XXX. as Both Medicare

is let has leadership evident team you're Bruce level think with second and the taking to allowing just not in additional that the third proven quarter. stand growth. really to is its And the year. the own to to this Don's more growth I driving and MSSP now So the MSSP it point, another see to make jolt of that it profitable, but an into on get going as then we already just for incremental the there, And half

anything have do to Bruce, you add?

total Josh looking of cost bit what a a to the of at add spectrum. ground mentioned. company total just training for be to I'll across post-acute our care It's

for the within patterns those that interested company is physicians able care as Home the ACO. recognized of with plans that be ACO the as with for a ACO then ACO for solutions our from like are care at customers. of spending customers. coming up of are Medicare look well as expenses for becomes externality the able positive out we across understand to managed continuum. to We've look what care manage that post-acute to to a help But know how the costs our all help perspective, we our to the the customers. ACO, the as segment And us we were And cost to managing ACO side to from gets Health for So work LHC with in the total the solutions costs the total Group our mine our work expenditures and data bring entire

for payers been a Josh growing sides. positive and same as growing on growth the have the with window positive of of outlook At within as mentioned, in non-Medicare And for contracts of recognized the time, enrollment company the both book Imperium the we've opens year. business expect both as well well. itself the later see for we large ACO form year, financial it's the Medicare much so commercial as deficiencies and the side, to So more as rest the there this of

Okay. Thanks This for side here. that with as question Bruce. which may stick you personal on care well, the is

in maybe care incorporate been payers advantage of But April, these ahead that more might there plans the now quite to you wondering personal there's benefits. With change the having what be year of year to some broadly belt, for the there. of terms rule the type Medicare using under them July a just supplemental with of enough time last out in conversations business wasn't help

wire in came make at right the some Yes, we're with a start two are provider We with. these also side work Home where a and types either we rates the that MA sense filing XXXX had having the of of work and agreeing to for to as date agreeing - we with conversations. most to provider on the to us Health are plans we large our be

have start interesting they services, experience these services. in to don't lot of a it's mainly the venture plant deploying care into As large personal because

well. We as from markets our the core have Family range a Almost experiences group then from broad of and

time, to care to as long for services services best total So meaningful across care care over it the managed to manage to it understand and the a well cost of helping use plans make how we're run. use benefit offer personal their affordable post-acute as

So working out conversations. our be we these provider in arrangements We're today. continue to

conversations lot for service be a here and the there'll those robust more XXXX expect are We right now.

Thank Okay. you.

you. Thank

with Our Patrick is Barclays. question next Feeley from

line Your is open.

everyone. Hey, Good morning, thanks.

seeing to Just little is introducing One if star also get and expect rating And recent of in April? your are trending? it measures Thanks. curious the to release long update the competitors star acquisition there Almost to the any may LHC bit decline with same-store how a you the on decline Family up ratings to about program? the take any in that new was ratings April just due talking CMS of see where

is internal decline. does system from would that that monitor our SHP, concurrent I not say which more show

as of process. performance movement demonstrated isn't the slip Certainly So now. but the expect would accordance up about that through six don't our would down, important regions inside finished It's putting aggregate. one reason Almost incremental anticipate the the to with I each up that's Homebase, been aggregate so from But instance. not. after. Family told audit Board we moving I dovetail agencies has slipped not finished end of Homebase our to all but so is in And until way episode LHC the that and I Homecare in that, months substantive admin improvement some Group the improvement processes the what week, structure And in from our really last of Homecare the right

as portfolio. of year characteristics all that in star next would have those as April rate in somewhere well of around that very improvement I probably XXXX, similar totality, expect So and of LHC

disclosed the helpful. revenue Thank them. $XX run on just you And rate about at closer clarification quarter, you. the those million a with during location fourth That's associated

of impact the much on that fourth those how in have majority the quarter? out to an Where quarter? of the revenue Just

you're where bridge to $X the as million $X.X That about of million, to revenue fourth on trying impact we ended? was quarter

Yes.

great. Okay,

much the pretty they So from beginning. out were

Yes.

Okay. Thanks lot a guys.

Yes. Thanks, Patrick.

Thank you.

Morgan Capital Markets. Our is question Frank from with next RBC

open. is line Your

Good morning.

the see the deal was care Home liquidity you we balance you you But I'm what terms be would You in what action in backlog? to across backlog when external Health of a opportunities care on say, for talked those? should and skewed How at year? able Hospice of the to expect in realistically curious, about your versus look most to that the see of growth execute personal that

that Health, coming typically from majority the the I and Home that's just our of whereas of market. lot the in new a think lead interest

platform and then so different Home different is then you is are we as is in Hospice. Of on for out take into course there lot lucky in margin buying bullish to that. startup, And our Geisinger, we of and more us rebranding don't know, Health mind, others. we Hospice Geisinger, with each it moves potentially out a some a to both because state get are the to little states. We're that than building we go and personal different pick case of different up Hospice a because build If opportunity, there state a personal up care pick that consideration Hospice, bolting small but harder as and are work, reimbursement states things when a care every prioritization and not you we appropriate. is a and And build on and regional market we have strategy if and scoring out if

- over record, be actually the XXXX The place closes, that just your second closes? in But but that question, I the the that your apologize to it about once you and here, the for will guidance all the for not when being talked fact in accretive conservatism Geisinger is guidance. in

No, either. XXXX. at I not to for accretive to in be about a it XXXX when be additive creative Frank. but It's It's in revenue. should is This was question. talking upside to get not not and that referring great of is very guidance be Geisinger to ready Josh. going and was to question, going I make transition stabilization dilute, Joanna's I a would and kind much That's be all to the XXXX. it one not the anything and

I'll Gotcha. one hop. One and last

the I'll off. those Maybe any arrangement, rates rates we those there. the are think and then bonuses about of I the Thanks. talked there? Kevin, Are structured? You talked or base some rates? those you about the those color - hop and about episodic base are asked perdiems And How risk

both. Frank, are are some some that with per upside. some are upside Yes, there's of visit with There there and that are an episodic then

we have So some of each.

you. Thank Okay.

Thank you.

from next Mayo question UBS. is Our Whit with

Your line is open.

Nathan Yes. This Thanks. is Whit. on for

Is looking detail revenue Thanks. could expect or markets cost slide and into that this, give you savings it in the at assets have is Home couple mentioned think both or the more mean us accelerate around growth what from and said then And existing any hospice already that. of you pace, times can there I building a co-location existing acquiring are terms to of overlap perspective? of more you strategy deck you about Health location? or where consolidating your agencies single some You

So really good later question. And it's first. actually the

would part to at first a for assets. X% we of that versus our to part where multiple is if look one have to this That domain co-locate the kind lead Home We how the The for you buildup and X% long would create of approach to of X% Health pace we and is want hospice. of that in acceleration. X% the organic and

is I that. underscoring of But by values So it's markets markets. those how budget that many identified it because really about. locations the way are about in many there we literally I've talked really different our say XX two versus market or baked do how location that by we We've could go kind growth organic

kind our way out singer out purview alluded to operations of that and the the As and to the he put in that Keith of is go deck. guy in field gave, the that something it we've and outside normal go acquire we've for strategy the of example is got earlier we

opportunity a cost this a it of like so And than a more sounds savings topline just around is the single rather bit building? having little

from may building to on because and the but paperwork go which that proposition. G&A the and lose underscoring has XXXs be the regulatory away. all rent, mostly absolutely This cost the the is savings, and growth you remember a is doesn't still about long-term It's infrastructure, same organic little leadership on the a in the that

up essentially give adjustments if did it adjustments, just CMS is in neutral increase on make have the in the then correct? And clarification PDGM you not that industry just extent to behavioral make to keep XXXX the budget modeling, to behavioral a would extra for it to an to

year again. results it in come is that that I intention it's the from keep and the theory happening a if budget in cut, neutral one recalibrate Yes. they it and next then, were and and mean, then year back

So is intent, the Nathan. that definitely

That's All for it right. Thanks. me.

you. Thank

from is with Stephens. Dana question Hambly next Our

is open. Your line

thanks Hey, me. for getting

times choppier mentioned while it's have following couple of great XXXX nature, You've raise and us conservative pretty was, line have result, the LHCG a was who but was been within would beaten bit a expected. historically for consistent than a and most and of you in a probably a

So visibility year some year? just things? was curious, AFAM not do feel just more was or for better think divesting this observation? a is lot you your fair it you think about AFAM you XXX around this in do a and challenge visibility last Or do you ASC And on a

right. for very head say, But a you've was we of been financials with fair into little the long our as I and a Yes, that's perspective us from And term XXXX And a easier now time you're we lot a visibility observation. be have clear. could side a would XXXX choppy. not more on

did proud XXXX. we very team what again, of in pleased the So deliver deliver and to

merger, potentially when range the of we there you As the when range. that we've we could we a AFAM reissued in accretive XX% up that. said, guidance, put we consummated deliver with it out get And

tell may on our been it may sit a the and AFAM I into core I'll sit been the of going here choppy principles that you've there we think nature LHC visibility. But Group and you where future, have here where is lack and are we our along got February way Now, have conservative little XX.

to good very hear. much. Okay, Thanks

next And our Gillmor you. Matthew question Thank is Robert from with Baird.

Your line is open.

have that on one some for you to and recapture means and of the those or is that not perhaps closures, guidance a curious the guidance. that that to revenue of able of agency be you're first some of The revenue? with with closures to nature source recapture I the going agencies any opportunity just is was as the conservatism other there to

legacy a AFAM great overlap a have the where situations you may LHC a with in have And locations location half legacy that's I that it say, opportunity, would of and question. Matt, example. probably for been

close eliminate one over and runs, underperformer, have and it, all the you the market and then time loss back you the you go So you share. G&A rebuild

ability build back. of some a observation. So some That's to there that be will good

referrals Can question, of percent have one, opportunity the joint rate Okay. there's provide setting. on from the then get just what the sort going PGDM just could update and be some the hospitals associated of inpatient strategy reimbursement that advantages dollars second all you And venture us would you or strategy you real because more obviously with from of forward? the referrals your collaboration sort JV on

Yes.

really So question. good that's

have XX% of probably we close the and community. the to now XX% front of company come hospitals but don't from of of exact stats from the referrals, number the and take come think in about admissions the of out I So me, into -

a that. bit say little me about Let

out health rely we hospitalization in the providing reaching on the admissions hospital. we're to nearly operation hospital. agency of of not the who first what for that patients a go don't from the us in we They're want Home and only the discharged to the need from where inherit Part coming hospital-based place. a avoid basis XXX%, are and care patients have when may that the So a from Health venture pre-acute discharges essentially Health don't joint partners on Health, XXX% every community Home are we home in, in, ahead that hospital being a and go from Home we

on really that partners bring and that's For table. based important, something value so that population we are models focused becomes those health the to that

that sure understands First, I that. that want had make to everyone you

question. and just a SNIFF earlier, from from back it there transitional is discharged a) more incentivize and that Health are question should low the not to more more costly Home investing times Home can Home and patients And to setting. though, on appropriate we're Home great care discharged playing settings patients IRF for setting long-term. That's true as and going cost your move the a hospital more verticals straight We Now being to identify avoiding the but hospital moving Health. to that cost out that mainly Health, Care reimbursement post-acute That's of favorable bypassing, and their real hospital. the move for at high to from role to Home journey partners downstream being quickly, it patients those there's resources we're other Health to are in to

you. Thank it. Got

to call to you. does over conclude the remarks. for Thank back turn like Mr. Keith session further I'd our And Q&A that any for Myers today.

operator, questions. thanks, us you, excellent this Thank Okay. joining everyone and for morning for

speak Eric to contact earnings at Elliott is the questions. for to We take with always be Eric like of with And would call. team, answer time can management you between to here you to if that. always, any members arrange you need call, available if As us your directly want

So again thank day. and the for supporting Group family. in for you Have good you a joining thank LHC

and does Ladies today's and have gentlemen, thank Everyone all participating This great today's conclude you a may in day. program for conference. you disconnect.