LHC (LHCG) 5 Nov 212021 Q3 Earnings call transcript

Greetings and welcome to LHC Group Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Mr. President and Vice Relations. Senior Elliott, of Investor Finance Eric Thank you.

You begin. may

third everyone. and Quarterly earnings our to the release XXth, and Rob our our you, the copy commentary we I'd Last conference ended Relations night, XXXX. Investor good for posted Group's Thank on earnings LHC and of morning like a Results issued deck September section to welcome call page. of a quarter prepared you supplemental

copy release available earnings XX-Q and on the of to a of when the ultimately, information, call this addition can transcript a In and supplemental found page. this be

Our detail XXXX guidance on supplemental assumptions and among full breakdown COVID-XX performance. sector of deck includes the our the year impact

our non-GAAP and of adjustments reconciliations are of All well. breakdown included as

information feedback Josh Executive our response today With majority Chief Financial in In is call Officer. this the analysts, Q&A. Myers, this from Chief and and our be Chairman today. to Officer; time of on me Proffitt, Mackel, Keith will President; morning's remarks will Dale We to investors devoted reference and

Before to this press to in read to carefully. on our apply commentary forward-looking statements our you made statements our point two our and them like we of I our page to supplemental in and supplemental They everyone call presentation start, in in the would encourage information. prepared release financial

the turn Keith. I'll to Now, over call

morning good everyone. and Eric you Thank

supplemental we night. everyone growing a LHC for administrative all commentary of work the throughout I'd acknowledge serve and I chance and families of you on They to that the family to Thank the of hope privileged begin, Group like tirelessly patients' our we review physician work and health sincerely. staff. communities Before to are extenders, hard last information nurses, country. support we professionals, you allied posted behalf had do dedication that our and

response and analysts to Eric is feedback As request from this in mentioned, and investors.

for thorough forward calls go before are There we discussion want adopt a time further. allow practice during I in morning few to to more is intent this our points Q&A. this going Our reinforce to

The first does a to that since time policy this cumulative a from been long demand, it's is industry legislative, perspective. tailwinds the had and it date very

some overwhelming down among efforts to patients I'm slow there policy and desire and get working are from home. is we to the a treated to standpoint in progress, their the lobbying will. entrenched families that While We need confident that right the be

would focused and and I'm for And satisfaction, quality, I'm I hospitals with laser a confident we remaining systems, joint and the talk in related Second, overcome the morning but organic lastly, ventures faced that our the this will in hill that were inorganic more the temporary a are -- patient sure. impacting spike again, employee in growth and leader on capacity cost we that in to us for our meet our and be were a cases to challenge is headwinds caused labor issues to will care. we quarter about growth. health we'll COVID the in higher both Yes, hurricane note third organic this industry for all, by demand retention,

Operator, I'd for be Josh, the call questions. go we'll of table. or to issues to we're all on and discussion robust the to So, around this At your to questions forward to up ready questions happy a look point, the to take Dale, like myself. open

Markets. RBC first your a this from conducting comes you. we'll Morgan question. time, today Please line of with Our [Operator Capital Frank be question-and-answer with proceed Thank Instructions] At the session. question

would make I puts not number. And just of kind color thinking the morning. takes then growth you'd think fourth that But MSSP know and guidance? that bridge and takes? we on maybe of fourth a puts fourth start guess quarter how from Good from bridge in the looking maybe I'm you when third I the you about at some and that how XXXX? do any how be quarter for quarter quarter quarter curious the results, Obviously, third about the to Thanks.

and Dale. Good is morning Thank Yes. you this for Frank, everyone. the morning good question

Your question question on not is sure that's of most one an important I'm if it's and all minds. your a

how so you a this about jump-off we the to we're to the like point from how -- to talk And QX, take we year. sure that run next into minutes deliberately rate through plays out what -- is give how then QX, make I do would and few explain really you of and thinking

go me the bear said is unique Medicare everyone is good Savings million event. was million a Frank, it quarter the thing every year us at for few And this you Shared to ago. a payment. the for important that us very QX, compared result $XX.X $X.X for to a quarter-only is third through minutes. year for But a this QX item in So, third as we with But as remember

so take of out the results. rate from reported And the to you run have that

a EBITDA point do sorry $XXX.X you -- if revenue quarter perspective our baseline, a So, million I'm that, perspective. $XXX.X a from from and EBITDA $XX.X is from perspective perspective from third and an revenue just jump-off million an adjusted

that's So, the out backing $XX.X million.

you about million The look about $X.X is number or implied of of EBITDA an our revenue a or $XXX.X and you million and growth the $XX.X for the numbers QX and to $XX.X look growth revenue is see million midpoint EBITDA implied full about midpoint guidance, X% or at XX%. can we QX about of number As year million.

an revenue and from services responding coming should and off in in a to of facilities so at are the we look our lost that's that million coming Ida, the And return so From that we'll $X.X we or All right? the that QX the online, back here obviously. components recover of lost from capacity quarantine are improvement us. are COVID, perspective, expect When that seeing blocks restored, you building we our are to revenue revenue where from. clinicians

so be that a to from to COVID going it's in switch. still the flip are And But so XX% that impact the recover will we expect there spike. QX that some not clinicians we XX% are quarantine, about of

million $X to another revenue of health. in home that's million So, $X

to home So, is roughly $XX million revenue $XX million recovery. health

If you expecting there hospice, to $X sequential about will in from in a revenue. X building to revenue a add know, X% we're QX census revenue million QX. really should million then Brookdale $X all a of $XX for deal million $XX as perspective look that in block X% the to on growth HCA two is final at you closed of And – that we million add the months November from

the next the on business expecting come cost bit COVID cost $XX.X as integrate QX. will we'll perspective, $X.X we're of to $X.X recovery. after Ida EBITDA that $X to bringing a million a well, on growth. From the the HCA improvements, are we sequential quarter, So From of the And into and work contribution volume – improvements little million million in growth Josh into and we when EBITDA $X essentially business, color start about be and growth, you year. Brookdale EBITDA improvements up add an more – me, about those components this as QX, closure from from improvement million no revenue playing hospice $X expecting year you from we're with health to together, from contribution from to the which give million cost in of operational then QX next fourth of that and expecting again, for home million

M&A out QX QX. are adjusted revenue those you to number XXXX, take XXXX into EBITDA. that build of to and top $XX.X respectively, how pretty $XXX EBITDA, baseline So play that EBITDA $XX QX $XX $X.X When point, based revenue. million the to million from On or to forward blocks million from look high of of that, get mid of acquired building of million much up roughly are locked then at about you million point of our million on that on down $XXX if we and does about now you annualize our out,

margin for bit. $XX softened that And revenue a will $XX EBITDA to so roughly million We've contribute that XXXX. of EBITDA million

know, XXX that guys in points of take lot a of As acquired are – dealing get newly comments, the his mentioned But always with right Keith as corporate XX standards. we're to about months basis headwinds labor to entities there we because to XXX, it you we XX our softened now.

color more and play at, about we're the to digit improvement incremental realistic how next after going next will line health little out hospice, of to then, So expect around additional mainly of and million terms top range to Josh home admission the we $XX mid-single we will our our a in right organic bit provide expect growth, million what year. that improvements those contribute million next look acquired here, businesses in roughly are you organic organic are being about get growth And I then for if growth. growth expectations EBITDA of cost in $XX $XX million that initiatives operational year done cost $XX operational year. on And

expect on awarded year. similar result MSSP, we next You we that a this year what very add were of to top

So Medicare of million. The the that's those another return rate sequestration final as $XX million and to updates, $XX PAT. offsetting expiration of the essentially we see

So numbers those guidance. be neutralizing to next we and COVID-related our events. our year, lastly, are into costs takeaway And as into a going then baking are

million now our around this million. $XX for COVID As adjusting to those are year, expectation you expenditures out guys XXXX know, $XX we're so right and

that the would bridge. takeaway from So be a

million. you so an to view of $XXX of of add And with come all $XXX XXXX is up our right EBITDA what number together, now and you of million those

year's out this So like going are and for year-over-year year. that oranges, adjusted next this which apples represents number bake and COVID has year's adjusted kind obviously roughly growth number, a our because XX% we're over expenditures an to EBITDA to X% – in of those comps

our a let that's and Josh runway on I'll provide cost improvements. little So the Frank, operational color

morning, real Good I'll get be morning. and specifics details. everyone. good more or Frank, into can Yeah, I any then brief

side. was get on are reduce, I'll more initiatives into and labor. to, lot saving the As dependence working as of for through there's Dale on throughout our he the clearly going is cost buildup a labor a we as us operational to of that for can few builds that and XXXX, lot A points just well for now morning. the more hit contract kind as initiatives and a Q&A supply One alluded few of as

XXX on net and the between into put difference million contract we points, labor for reduce per cost labor around to come nursing, savings. nursing We're the save our every is of which we anyone. for can That's of employed basis $X.XX context, would labor, surprise of our significantly side, net that dependence labor visits quarter the one X%. cost. were And in going from just made to on to utilizing that, norms home I running X% health as is QX historical up think around contract our a around the contract

to gain point on as real the extended some PTA identify year And as well. into and So that's two, as LPN areas ours going of needle operations the on real focused front, into then well quickly opportunity Dale enter working our just next focus go year next we other mover continued described, I really maybe we're line would a out to leverage next that a into efficiencies, for year as side. we growth G&A laser the because continuing and is top the on utilization and to the G&A as some just we're have

Thank you.

your question Please proceed A.J. Suisse. Credit with from comes next Rice question. with Our

play a think pandemic of burning much sort And and labor surge don't of scrambling. you out topic. are out more much to how will comes a the it for how parse the starting more Thanks. a another have you're and think other in much the whatever, down, ease mean, And Hi, you everybody. the on thing talking with labor you gotten continuing It's just nurses supply or quarantine little I out of that long-term on families, would is obviously, quarter. while? as from COVID about surge just some contract bit just then replace of aspects can if persist so up? might we versus retiring nature of do need the down tight those it, this and drill I do

Yeah. is Sure, A.J. Josh. morning. This Good

we bit – question, about little hires. there? look there that So And you at I record would expect a it's out numbers when three I have because when quarters for positive guess, sounding think than the us, I may start available is last your had out supply I question, for more of

just home a of is contraction general care the do care, scheduling there although, in market health think nursing across benefits other the in So to due and the some our in I labor and industry flexible health home.

in the the almost we're in made. seeing to went of hires and an hospice We of QX. we've home up and hires think number health uptick across X,XXX from I in X,XXX applicants number over QX,

mean, that which fruit. we're of want So have the we seeing. is are maybe trends we that I issue from is I that this I the a an And by But year started on this that earlier a standpoint, encouraged supply A.J. to yes, all But recruiting feel initiatives touch of we're facing. I few bear some to then going helping on think

I other think piece is retention. the

going. once as you those that to a the and strategies retain this out year initiatives on So But lot keep have recruiting that are to throughout new employees momentum year we're doing we've the some side, hire to going next what well really year are all your roll them. we what done and

and experience our us past organizations. acquisition just that's we've month team, for with over strategy our set recruitment also this year-over-year. department. to recruiting drive recruitment very in-house We've the some of XX% about talent She front our acquisition senior talent a large helping be comes increased She new and that. to On leader going hired very lot excited our joined a so

XX So recruiters. as we're up dedicated And all local. is A.J. know you to now healthcare

a other are recruiters perspective market on attracting those talent. areas sure retaining competitive make that the are targeted level, So around wage to and very from and at much the we all benefit and new a perspective, local bringing trying

started really there initiatives the supply. them and qualified critical talent that's velocity couple we've hiring. things think we've things also the brought all trying of out out belabor to do done a And when are just doing grow in and a business reasons, And help employees bear on The talent quarter hire not we're from almost the the executives time actually So where you that them of hired those really I We've of Group obvious the employee I bring internal details process. way started needle. that's of some and track other whether to almost there dedicated our our there We've recruiting members get for done XX to on We whether on can that traveler that's this quicker moving really tighter referral accelerated incentivized, year. We of short with future or through focused and efforts. year that a started redeployed We've longer-term to as former got side have interview, the And the team I done the we're also through go a in and get that smaller but earlier other won't recruiting it's launched labor team then our but effort. the pipeline on only LHC the front. but amount time identify improve since then all when like I And a place then in our do onboard better. I there's a our won't already fruit. XXX really employees last talent. our some members big as things And this the effort. a development new to point very sales of it's think ambassador some a account new period to few program that for we've A.J., just, program family something nurses. more because re-recruiting building program June strategies almost just XXXX candidate we've compete applies, and into you're we've on what through onboarding acquisition getting alumni are

the Louisiana got of some University initiatives going and to with country. on universities other trying across of the with Some partner we've

point net And XX if there down. So look the our you'll and that's industry would Page grow. below to I are sure best hires deck, data front to supply very the continue see making on our I that at supplemental retention on we on the driving turnover our you, that give A.J. of kind side. then continues the you would laser-focused you norms And tell be is, much quarter-over-quarter

gross So numbers net now. not is, all is and of right applicant in but netting growing positive only the our hires are our service our we lines

Thanks lot. That’s great. a

you. Thank

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

morning. you. Thank right. All Good

So improve the obviously the And retention. almost But to recruitment and the helpful send almost I visit numbers about I into guess efforts think direct just -- home Because next the X% And stay I to that on thinking to employed we just was growth? focused about labor X% on in the which definitely that you of topic. around should and in you up terms all we off, about the talk in see obviously outlook health was color here, per how or guess wage year-over-year slides is sequentially. segment you cost year? afterwards up appreciate

So should rate Should think it quantify wage I growth be inflation? maybe for historically of more because going in think X%, terms growth? we historical forward to trying it about kind So that for run about thanks we was the the of like Is that? how to guess us? this X% above

is This Joanna, thank Yes you. Dale.

right. you're So

I those. to the like get I the think in at to which more environment we're everybody next into at probably annually. X% a with is we think X% really familiar of into year we're with terms of least the headwinds, we're increase historically X% of challenges X% in increase won't the details today labor that. And [indiscernible] type in so But looking

utilization right? to all around got lessen got labor our out and mitigate right I And pockets under-mention real things, through pulling understand our the about opportunities always our talking deploy productivity on that one to be not that's there, optimizing we're we more of of biggest to how important got what was to We've but improvement, our the some think a extenders real levers -- and from optimized more efforts like manner resources so Telehealth utilization. There's earlier, to thing of retention in because also cost more increases. we've contract is Josh some recruiting productivity. those those going to levers using costs the again dependence we've visit

able effectively of manage to definitely all that in have like we place combined we're seeing we X% to X% feel next cost really to a So, for good environment plans those year increases. levers or in and But neutralize expecting we've be together place so. the been

may Thank talk the remind you. you I inflation, just of release can And front health -- wage guess on if And guess care follow-up you coming just When about out. you that. vaccination the mandate vaccinated? are the a taking the into I on came are that workers that employees that for us I the is account percent

Josh. Yes the is Joanna, live, Yes I morning. released. two was think mandate vaccine it minutes good before This went got we like

So details than there then healthcare mandate employers obviously we you've haven't as for and it's but digested the are greater is all of XXX got out aware mandate OSHA the yet, of which the that well.

been So we since and on our an a the entire to strong and and throughout really the made vaccine were be available. vaccinated to say supporter workforce front; I workforce readily get vaccines ever our initiative, would that foremost, have first driving advocate continue

company-wide the to our on approximately question. are We're company. throughout where XX% rates Specifically, vaccination your we

very will national kind that I of follows much Now geographical patterns. Joanna you, tell the

see even up the for like were and that in started South in Gulf see South the division least those Out in that that really But down our example, entire sure And in regions closely what that board, in our that to I to say high down improvements state XX% make teens of state anywhere the at marketplace. north XX% states. week-over-week we the continue states, of some look Gulf the more move would closely from almost to we you then we're recently. really we're in more outperforming range are We're X% above averages Northeastern across percentage XXs. in watching So the if West, even geography. upper it to we've we across

state in we're vaccination averages the the And upper Alabama, So, in state in state's in of upper XXs. the XXs like XXs in up a in the and the the Northeast, the low state in mid-XXs. we're a

it tracking in that of So, we're way. kind a

And of medical certain mandate, in national have some but we've today, those we're mandates sit As as got the it on experience these night, the XXX% qualifying with would for seven to the are in in obviously Joanna, operate relates exemptions. that states exemptions last exception states the Columbia our of here numbers I that we clinicians states, instituted we out not that complying have point we scale, District religious I with. and that of those today vaccinated already or have we have a exemption confirmed you

We that that exempted in all So to is, we're isn't going the by go mandate in post, one state there big end changing live, either but very we're or real just we we've to that qualifying fear we're of think have if states vaccinated the any mandate not healthy seen see, or described. I because your then states. a it vaccine either experience turnover tracking I the those saw everyone that's we those is was saw has would in And exodus rates. way. is of closely where a backdrop in our our to ensure And issues movement we in of compliance testing. good a going to to pre-mandate waiting in mention labor the the a lot in, result very the to workforce an additional late weekly turnover adoption from workforce

field compliant. tools, monitoring about operations easy XX some internal in we've in ago, only and that proprietary but monitor our that, for we we it's released have up to so is what So, the tracking if minutes where place real and remain that, that protocols ends do in, what not being team then be just to developed uploading

Joanna, to you we're So, give wanted clearly whole focused on effort. some really but I color it's your question to I lot this very because, know a

states. I'm I did a I movement in you. appreciate good those you to very No, see real hear thank it. turnover the -- not guess that. on

So thank you.

I before chambers -- times and I think asked I go this us. by last helps might I our members add. go wanted question a just health direction. that I D.C. in to this Washington hospitals -- next I might really the lot week, question, both do and when system partners we was several in because in of have to was

us did implemented concern lax Some asked that like who employees to But something have was going follow. other our leaving us and more if are this, this and we and to went out could we area. providers in then

this So, us. where everyone, test by vaccine or it's leveling really the believe playing for either do I field, helps

Our next Bowers Justin Please from your with proceed Deutsche with Bank. question. question is

everyone. Hi, good morning

to as on have follow-up Keith, then, an strategy? provide the us Choose I can relates And update relates SCP just Home the the DC up some follow to So, a that on topic. cost. on and I it of maybe want you legislation to how

Okay, sure.

Home start I'll guess with of you just legislation. I Most first, So, but Choose recap. know, probably

are who support of to get the appropriate to it in level. when from sign indications to in we But more have their but about important course, sponsors think support Senate committing those does the leadership This the the us I update get support House. to wouldn't every is day bill XX positions, that on in more currently their was yesterday. is So, And and XX what's maybe now. growing giving them

reconciliation We're forward? So in play course is and those First conversations. current we're process. the path of what's in the

we that's then two an into Medicare because likely. extenders this But challenging the all Congress, XXXX this is think which is in support, One a what that would realize to introduced the with the that, XXXX. strong don't also of I that XXXth being year-end omnibus I more that opportunities and one, limit budget of think beyond expected package. most we bill was and goes package say into XXXX. package people But have some that efforts

all play XXXX. way through bill the So didn't the for

about reconciliation sponsors to XXXX of opportunities or first. -- Senate through talk those of want -- have this let's give the moves up. and packages back to going we're I whatever though a again the Within nuggets to in couple that. just about So, support

is Other on Stabenow the the sponsors the good met Aging I And important. the our of Committee. partnership a Senator indications are, are Senator is bill sponsor, Chair is of of lead are with Senate who Chair -- Finance One of Committee. Wyden the Health Casey, Senator I sponsors the with who Subcommittee very group. mean,

so Legal he's Finance of And in the it's center Gray the us for the Chair began Head founder now he Committee of the attorney And -- Senate he of Panthers that Oregon, in the the Oregon. was an the career where good his Services as for and elderly. was Oregon in

options life's has seniors. is type this to So, been these provide work his to

need it the in So voiced things he naturally all move to for forward. would advocate his reaches we support do that. that the to When scoring it and his level, that he

We're I reconciliation package. into about less So current probably I XX-XX chance That reconciliation package know. now, that's encouraged that you're this would in we is again why hearing we're don't this quite some in it. about noise play get say that. than a and

So year good chance or a – a have really at year-end package. even and but think – this we package I extended

of Got PDGM Maybe rule just or follow-up. latest final it. the been it quick has kind as With what's thinking and and one the that what's week, earlier year the on relates next to coming with – the XXXX? out respect there this kind to – of

that? Josh, take do want you to

Josh. is this Justin, Yes,

kind that with we're with around that environment ultimate the of through, all update for and the underneath As that final very of faced rule, in. some points are cost pleased of the signal we the it in the came that rate kind relates even to appreciation an underlying X.X%. I And think

the of all in of things. were all the PHE expiration some that's and rate. help for earlier pleased update sequestration when factored building those in was the the XXXX of increased So outlook, in going the of away we And his building and kind to with Dale kind all, blocks that offset

just at and deck. again was in I support the for a delivery So and of Keith home all even tailwinds real healthcare supplemental that in a talked lot our to about it we've signal macro the all, put in level the think the positive that

is And – this add I Dale. Justin, would

I it. favorable believe lot was no got think still there studied. going think being that's obviously, adjustment obviously, And that a factor, be a the more of to around analytics right? but forward behavioral that's we I should And

the And of so hopeful on right get it stayed cost the right continue will a data make especially and and we're neutral that at least to focus this environment. the that kind it right in to decision

Justin, I I left think one part.

to how You I vehicle mean partnership another the home. here's settings Care@Home. – acuity patients to this Advanced around is just how. SCP inpatient connected higher our Choose moves Home And asked new our also that from with through

we each we're Care@Home all our view call we at is, it or We're Choose Advanced is way home hospital is patients them that way to Care@Home. hospital to you moving higher moving SNF-at-home, initiative the same. unique. Home We acuity think it as of see whether the So And hospitals, Advanced choose the of now go those the to home.

handful Some hospitals acuity their just want a home. of patients lower to move to the

much to do of list much are at their different to want larger the capability a capacity home, lower as move patients systems the and as which always to and waiting a acuity requires program of that XX% with Some cost that. greater

cared movement them it they financially. beds payer want towards driven. are consumer better hospitals for I with for that's to So and preferred each But that home, be it's into think it to allows tailored. them one at geared this it's patients for those can, higher acuity and fit does is and People backfill whole if

and follow-ups Understood. Thanks a lot hop queue. the I’ll back in for

Justin. Thanks,

with Our Fidel your question. proceed with Stephens. Scott next question comes Please from

morning. good and thanks Hi,

XXXX First get waste per you if pressure us stat the with saves. and that XQ to the the And some can how quarter How wanted you relative just question that cost of about thinking and thinking reported the the we maybe thinking well? about to or where moving help about into X think you to back as visit that, in go then be you are XX. into third as and should about

is So Scott, hi, this Dale.

was sort of what the contract So number number I an health, non-nursing X with you think that's per there right? all-in nursing everything. respect visit so to specifically in XX home saw –

– slope, or increase that the slope quarter. see did a about that we in right? – XX% That was so And actually X%

temper in quarter. a tempered but we're So a that ago starting higher It's obviously XX.X% to bit. again year the seeing than

that we're stable. that to be somewhat encouraged and hopeful So continues

a again much on. think the are we I what we think all that's where lessen because is Like to our is hard our people there's What tempered clinicians predict how there. is levers going. I that's on going of seeing opportunity. our But looks greatest opportunity And control contract buying said, it. bit biggest but We're our to utilize. right? how we it's like visits. lot control now, it's I can't I where we we can those that's to discussed out dependence be Again really a it try think focus right rates through And for

we monthly is labor is were may a not Josh. geographies, there's one labor. deeper. little mean most mean you traditional go Scott, certain contract equal some I numbers. spend analyzing really of than contract contract of labor component operations as traveler this when the coming look contract layer reviews, out different it, the And even But recent more all are in I labor our at these our created bit And component I aggregated that either. of looks

first, continue some of that cost So we're as we to capacity. focusing contract alleviate on labor the higher

that for do to Got X% labor is staff have in October, of an you it. best percentage XQ? the I update on where so relative contract And sort trending guess far

think I relatively it's nursing? For Yes. right now. stagnant

we're yes that next so. said lot is of week or so how we'll a to visibility the of there's use forth have of for We through contract. improvement a would health optimize MBRs X% lags can bit that But in have the X.X% a the see strong contract expect been at We – and Josh So just home Overall, focus on next little the point bit. that don't what labor. are data visits more around for we yet on a based – of into little on our nursing we're nursing.

contribution And question revenue. thinking follow-up would business that's the my you just of Obviously acquired to, how be much would margin you're assuming interested from you block some mentioned, just then on could -- initially. progression about insights And be a us Brookdale the the not I give Understood. big pretty you're HCA. as just maybe that know if

sort business? in will margins that think those of how ultimately are that to do you initially? how expect online do see progression Do coming your of how long book then And So you get take? that to that average? you Thanks. corporate And

the But is I the area. -- or so these I $XX of when it $XXX do to it in and call million the is and corporate average. Scott Yes, health and $XX million services you is get million the full expect assets remaining mean then look therapy at is about home to revenue Josh. hospice this

one I good I is this continue strengthen and of with So we the relationship why do primary markets, And which were we excited would had drivers to the build so and Brookdale. that and highlight in have to they're would transaction. say signal

it this that margin So one to perspective, I kind of to -- is XX get think XX a take from there. going months to

this also really what continue and I well. to our team dig some building We're We've finalizing really is we think you in that you're go review I good of it. some year. there's next we earlier together upside progression growth week budget some budget. as the in would get nice the to of going But this and asset a as saw and through did -- and next tell in progression deeper see to year as pieces that into quarter-over-quarter

grow we margins get those will it healthier. So as even

for contribute XXXX part us opportunity be So all think that really be in that's Dale, of good and that to going this a a in transaction bridge in described beyond. all us and big but XXXX is for I

that And I would echo well. as

of and exciting. facing. that environment always then We're a tempered combinations opportunity asset that think the labor operational see very that I is we're around Those as about staying we lot growth. the well are as

those a slow down just So of it all while those we're probably headwinds, improvements, dealing some all So also right? with we're working little bit.

Okay. Thanks

Our UBS. proceed question. Please next question comes from Andrew your with with Mok

COVID to be morning. guide think the excluded current called that I $XX And are million around year. guidance Good this million reentering the expected from costs and cost those are COVID those how next year. what be year? on that of guide the Can have costs us, visibility Hi. next much $XX bucket remind $XX costs are million out you number you COVID entering Thanks you to --

absolutely. Yes

in said that So costs what year this be to to year high-level million $XX you if you Expect we had XXXX. COVID million the $XX well is as look then coming next sort in million and of million at $XX $XX million. just to COVID-incurred costs of context down $XX

things. that's labor you kind component The look largest of to about in expense and XX% treatments. what testing of we're bonuses, those the of pay all piping, hazard components there's at the for our their all around diagnosis mean is dependents of and If of right? own buckets, About employees it. the is XX% cost around cost. It's COVID I three main incurring health kinds the our COVID

we is remaining because cost. it's And the a the then us PPE the did a expense And lift, up well. real job of lesser our obviously, PPE, nice plenty becoming been for about then of so cost it PPE. inventorying That's on the is of a And as health right? very of XX% expensive

uncertainties forward. have we going any supply So for adequate

that's but the remainder impact. a So that's becoming lesser

we at into But health expect look to labor but component heaviest would component to predict down. also -- the going we what come year. know And definitely and well we clearly But new -- health cost much to expect improvement. improved going it's down get for the variant, -- can't components care, level I'd We labor expect still lower are that of permanent than curve. see next XXXX, but forecasting to obviously. be would we looking the expecting we're you that some then the We there's going care hopefully say to As XXXX, we're be can and some. be come expect

Okay. to follow-up valuations flow on everything M&A. right that elevated have spread That's on multiples, and deals remain valuation widening public desire Based though Thanks How helpful. do And market private in we're does then meaningfully. just influence even deal contracted your a market now? hearing

Yes.

hospital refocused joint a that's it's -- very our to strategy The So good where area we because go us on don't question. that it's typically, that's venture great done have margins. an what is hospitals

deliver will. now So care if more be to have really the ,and they and lot we turn for of you efficiently. volume a to There's is lot and time And us. what for revenue well do upside those of a a turnarounds around to long able

this out look on level you it's COVID, that, the focused not With in year health same chose in when M&A of related feel it to because the with for of we're market. year. So pipeline back consistent all our co-located And to this there. health and next in this while have year hospice let be said but forward in again the hospice you've activity seen me take we've we're dating hospice I delay us say home 'XXs to footprint. that late activity home every will to strategy the opportunity from build and -- we at to our like

year. put we big -- in that this a Going dent

think moving just in we're even of refocused on joint XX% pipeline into be hospital venture patients really as health. be by in spot home that it lower we able being now already at we'll That In much activity. Care is now Advanced pipeline, the be ventures. acuity have I'll home some and will quick sweet a move Maybe but I'm doing downstream. higher so than our going adding we're our -- filling we'll and evidenced more I math. more add of to as percentage forward is been, has still markets our So where hospice, joint And always hospital and and

Got it. call for Thanks the

Our Please of with your James Sarah next question question. Barclays. from is proceed

have in signing from duration is idea retention increases as then, seeing Thank short-term we wages an you're how related much higher inflation around those I can is how isolate the related, just of actual bonus you. buckets versus they is to And hourly that contract I bonus have so different points? guess, waiver, costs? sustained be? the how together going the and wanted put you much try some of to figures pressure Do to

Yeah.

I'd bonus which bonus the most at in question, of the look more obviously you the part bonus So retention on of first sign the say there when area, right, on is pressure the is right. of

merit permanent increases can increasing normalize our you from base -- a best definitely cost in one we to if of to try each that So permanent year. things like follow the as keep compounding we rates will

higher mentioned So I some pretty right. increases we of XX% And -- in heavy think line then pressure put But the I you more but there, probably because that, obviously is a with our much area, historical, little think going in wage that maybe adjustments as bonus over from bit say bonus also XX% keeping area. coming would the we're the highlighted some Josh around strategies as very some on it well. market I have on pressure

provide So stickiness arrangements and some we're help defer looking more that multiyear type retention at costs.

simply of to that terms the one -- contract think more to labor, right. contract is because lever take quickest is In quickest labor I add around off lever

staffing. internal is really it and So dependent internal upon our it's binary. our And capacity

-- the we retention equal, on lever And honestly. quite have and the so that the Josh of quickest those are labor recruiting born the is not around and not optimizing, more -- anything do we all can said just the contract every as

it. we policies the accounting divergence for And found a in bonuses. Got

for spreading it So the are out others expensing some period. are full them away for and retention that? right over your the accounting companies and signing policy What's retention the bonuses, amount

yet. we point. this at We're haven't Well, evaluating started those those

of haven't the think making accounting really to will it point appropriate I the that -- for we what gotten So we But that decision. is. evaluate

you. Thank Okay.

question William proceed Please Our next with is Larew Blair. your Matt question. from with

morning. good Hi,

five now to say Delta normalized despite So third consecutive here in variant had in quarter. hospice of months you've line the

a and how into referral can like what for access looked mix looks able has the stabilize, generally what senior living been sense give maybe to more you facilities So your that's like? us just

the because they're type the focusing for coming which operators has We're the lessening to hospice shorter to stay. and also recognize would that length our quarters. length bolster have we've three pretty patients of the But hospitals, Yeah, referrals want had growth on I have say our stayed SNFs over facility the teams and is stay. Josh. our of Matt last morning. consistent this which norms that in XXX I IRFs out longer community of down a historical patients, really referral a length tend from a hospice Good what probably stay still mix points in by lot and of further our basis on would

when healthy to So referral think side. that's make that length you helping stay consistency in hospice I composition, the the look at the of on

on the to Okay. limited nearly inclusion emissions in or contracts side, call to networks on non-Medicare on home XX% health and relationships growth then And up rate, new out X% changes there? any

Yeah. be I maybe to expand the to on little Matt of if the well. making you there. you to and and just general, how focused don't efforts mind on an bit we're everyone I'm laser continue to because update because share I it a side in some just talk as may we I'll Medicare growth But take get just traditional excited that on MA give about growth question the want piece the front

take perspective want going for maybe so much reasons deploying, continued of So do to things is specifics growth to I I'm strategies for going a think not we're get to of opportunity obvious we've of even organizational mention done from an some market Medicare share. and the bear tactics into I lot the fruit the that of lot to -- a but and the some

Medicare build side. penetration share the continues MA Although there's opportunities gains on for to market

just the patient side. growth-minded clearly from do leaders some on Matt, operations talk way area job ops up the area would through that So Medicare across have. from really about managing the the the second. to and satisfaction, the where the more of sales But side we at of board on we've leadership across the on and proven some side growth. we We are core operations board in business are that a not the done reorgs on more restructuring what organization this side, say outcomes, I'm do got regional, really some operations organizationally, have marginalizing I going But the have great I'm saying all the to there quality to

learn bit that they responsibility sales helping sphere to work them the with help so I of to again highlight launch leaders that Medicare more those side others, growth our a from also successful really some additional the some of some more just in to a efforts. little in way. give be influence growth going and So would lead that can bigger to Medicare partner that and them with of restructure senior are brought really them and be our on that is leaders in we've

and leaders the was side. So group operations reorg the first I described of on

side the And around lot sales of focusing that rolling The leaders really on lastly to behavior. for really elevating on and structure going then would out going continue year that is be that analytics more our our say, second to is are sales that. a next strategies and group the we're sales and the to incentives data I drive

space end day, So take the to this we're where to sophisticated to Matt, got we're I at at growth, Medicare the in the point in feel portion really now on good discussions. the opportunity and the the on you've payers about the needle and And MA larger the that growth. on would you of really emphasis of much I discussions non-Medicare placing based Then tell we're risk move the more be with risk. providers a willing having

about year. driving some from system and with on opportunity the next of our And Shared there's larger is into of our Savings perspective, these then with I'm experience total of that in to years of at little the Program that for exit the to because background there Imperium. year personally taking Dale one partners. go we've a my And I with this on going an value-based the gain where his with our as excited we've we table lot myself upside take you able Medicare top the our are operated an priorities been with can risk go frankly into But cost improvements health of care from learned we've purchasing what downside generate. reason confidence So drive state from this risk be discussions. on this, those so year-over-year of along a with savings of bit the the and experience discussions of operations And in experience to

a saying it's this the that But really board been bring will I a into Matt, going journey. across the future. pay for So at we've good. We've huge to experience risk table the dividends bear seat really to got while, a feel our

you. Okay. Thank

Hey, is before we Dale. go to question this the -- next

evaluating think on, read still the I for treating you're your are agreements. accounting if those bonuses. I actually multi-year Sorry, misunderstood agreements, multi-year question question right around we're for We're your now. doing as not we I how

are our paid out. expensed bonuses of retention and XXX% when All sign-on

So I wanted to just clarify that.

I misunderstood your think have I question. may

question with Jefferies. comes proceed with your Brian Tanquilut next Our Please from question.

question just I follow-up Hey. guys. to asked. guess Good the Matt morning I'll that

growth post-COVID how growth your the -- or the for I here you organic So the remarks outlook in mean, release think growth fundamental about that's of as of sort the your its home shift the are X% year? prepared of about How underway. talked to thinking -- X% press we we of and in trajectory or maybe the but business? half you know, like about But terms thinking I growth recovery is next back organic be XXXX, or get mind post Where trajectory QX. for for you kind for about right health? once should

there you where glad is it once is high-single had years in because we call I'll we've we sit and gut in I'm through temporary we've more that more based data, question, of Yeah. here Brian volume not some is a headwinds. these, in past when poised just Josh. this this digits. And on asked good an that morning, environment feeling, growth than get been

health looked that data just the year-over-year pre-release, we growth X% we over of XX% then, And in up. put referral year XXXX of the you some out If -- there And was XXXX in up. home is the in pandemic. the over what was XXXX at first XXXX

and for tells the that services. you, our So just the demand trajectory growth

you there's now. continue past in not growth would should we we be as so that years high-single in our because to if the definitely you labor XXXX, in get and organic coming on potential, the once tell the staffing much digits out right double-digits situation, way knocking I volume solve the So

Got it. you briefly And Imperium, there. talked Josh then, about

getting contract recruit doc Agilents wondering, as growth world to to drive are the thinking for or clinicians. Imperium? or see physicians to about are in are or relationship you we aggressive partnering with trying the interest world Street care growth the just value-based So new other of And go the How the more-and-more demand Oak into the ability of new opportunity groups.

And that's great question a Brian.

more And a savings upside then, or large Imperium share definitely geared with on for potential cost historically, So a ACO, but also payer type to was I got of space ACOs would the basis are of really of an there hospitals that systems, more-and-more physician kind that and health it MSSP we're well say of more And Most our it's in activity have physician where outside are seeing you've we're your Imperium in practice in practice is growth a of kind point. lot that a that arrangements. pretty PMPM groups engaging groups we the We're model blended. cost as manage. pipeline with them. driving that growth in large

really, are -- where to. environment and lot have about feel next and their that growth with macro have of we So a about relationship a team, year really dedicated good own but it we Imperium for the conversations leading some growth separate team we a and don't have goals those talk and

question. for So that thanks asking

Yeah.

Of course, thanks Josh.

from Sutherland Benchmark question with Please with proceed next Bill the is Our your Company. question.

of the was SCP an Thanks. you have year? have about expectation taking for of is we I -- that traction going Just wondering, Josh, is kind some by impact if it to next I partnership have -- them? the everybody. guess Hey Thanks. should

the to -- interest in positive of say our even but we've the as program is to Keith maybe the an I overwhelmingly I And going timing from they're from positive, alluded even rollout size But as response each Yeah. had would partners mean would different. JV be the and program. overwhelmingly word I earlier, use different.

So I at some try impact year and project all. to that want from next material financial don't into

bridge next rolling in first what none quarter real it. programs those and of EBITDA think bridge material I and for start in us the number Dale XXXX, has described of But year. from Advanced build Care@Home and out build our any earlier you'll revenue see

Okay.

upside gain be So a would little if that of do I a in. bit more that we then whole momentum wouldn't lot it, of to but make

to one visits of per cost you are be guess side pretty I on levers optimized the there? then, episode going or And is Okay. the

that's a been slight there episode pretty we're were and But mean, good around honestly. improvement No around model. the a tight a year-over-year. sequentially XX.XX. quarter question. there. I Current I slight pretty think quite per very visits our That's optimized improvement we've We're tight

we're depending the You just the the of mix get pretty tight patient. the guess I patient acuity feel may and back have And here change around But that's that. on or temp two, where like I there we to productivity.

it. there's locations -- for opportunity always some around up You where tighten have pockets some to right, certain

important to we're on don't the top we And continue -- our holistically where thing feel what at very that, quality we opportunities. VPE. is But So, that scores there's important and is So complements it. about point good right? respect is with don't always some have then, to go Telehealth over in-person. of the episode what with really count improve we do which visits per data a very that's we to a And average as little well three

like again? sub-X% some you it quarantine I seen --do working when others. sense I've than Are it's you last have you you're the a of number down one, then, stickier down can it a little seems And know get for

and I that. the ball give a to I would date crystal try to Yes. look and into mean, hate

daily. track week over data ways some really it seeing and are week we this in We

days data even based. I what bit little put gotten located as our business states out of and is X.X% the it up to is to ago. than improvement, X% geographic day-over-day look in half now of -- really So is the there And previously would a at Southeastern two we that's in where and more we this down again have had

overall in QX come Bill. So under X% back well as were we number drives those to down that down. back states continue the But

our or sight do in month barring the and spikes will that have serve of weeks line direct some back really kind all we contributor next down good the But data here very down So COVID in they markets in additional I encouraged. and I'm number last kind on the anything. over to that expect of mean hopefully have we'll well. bringing I this so or no as there of out get there come and deck coming put cases or month be a We that

help. Yes, and mandates have the to

Okay. Thanks, guys.

Bill, thanks.

SVB is question next question. Leerink. proceed Our with Whit with from Please Mayo your

here. time one I'll thanks. for the it of with Hi, just question sake keep

wouldn't towards seasonal should in XXXX, at think mean more is patterns quarterly we that normal year. of progression first more I the and headwinds next challenges looking some apply weighted are half loaded. labor growth other second the half the I presumably Just to

You've got payroll the taxes.

I think But of year I sequentially good first the a to of that in versus half quarter got off down frame half? the the impacts way second just quarter. fourth could quarter. think first kind the bit you next that off first there head any top to is be your of

some heartburn I'm So here. proactively to just trying relieve future

any So helpful. be have thoughts you would

but right process as from a about in to. you you're all in timing not year, budgeting think, for numbers, of we're the the just numbers on, midst which perspective referred Yes. we're next mean, our still still No of the the I is budgeting -- Obviously right? I

the as it think you've of be expect hangover just to a refer again. good QX out I the quarter, You right? coming the laid it stable we because front-end holiday tax kind stronger of mean of payroll the QX I our off So to of toughest then as around on the as off QX expectations falling and tax holidays toughest are as back-end because because headwinds our unemployment year QX quarter and being of well

way perspective So I say think the our would is applicable the seasonal is pretty to I history it.

quantify -- more I in? rural just off. number on just question. Okay. Thanks. Actually hop any add one it? small is The sneak then year I a headwind quick it's to but there And a And I'll way a just can next know

is million that. -- million, yes kind $X on in $X what to million fact. $X think we of $X based

Thanks. Okay. $X million. $X million to

Our from next Please proceed with is Deutsche Bowers Bank. question Justin your with question.

Hello, little the labor differently. address to wanted the just I labor or and a staffing again. -- ask

way workforce Just growth you on based another example? could of levels sort type on back now staffing if to we would quarantine be health could accommodate, to X% home or like clinical load your maybe you hospice and say current quarantine X% the or on for accommodate to what in of go current census kind were have staff what of of X%

there back. number Yes week in get MORs that if Justin, again up exact of circle census the and there could don't tell last census come We model in have is I probably opportunities current with for are will. you. I -- through you you even would to an kind growth

Some are opportunities. of those productivity

of visits. up as you admission some because more capacity are do opportunities visits utilization shift your those extender that example to frees for Some certain some over to LPMS,

staffing into into new think kind quarter quarter-over-quarter on deliver we give rest momentum growth So fuel the growth Dale in of I potential going we confidence current have this hires what that net will next to of continued do census census have And bringing in then us today year. to the said.

Justin impact at impact back about that other ADC a that if to was we QX Yes. And color look us. add would the COVID you I had only XXXX right the to is

So can pre-QX to look that's we was get spike our X,XXX if it one component to at where ADC. back roughly there's clinicians

As as optimizing Josh there our to around said there's more continue opportunity we resource work utilization.

follow-up. the Appreciate you. Thank

reached I Myers the have to now the for closing to comments. of would session. question-and-answer the end Keith back over call We like turn

and here Okay. format Well everyone new this participating for to sitting in it. you listening thank

was appreciate Thanks. it your same. really the future calls more and and questions forward We think a I I lot. to look very productive helps of It input. and us

you. Thank

This today's conference. concludes

may this your thank you time participation. disconnect lines your we You and for at