Acadia Healthcare (ACHC) 3 Aug 212021 Q2 Earnings call transcript

Good morning, and welcome to the Acadia Healthcare Second Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Gretchen Hommrich, Director of Investor Relations. Please go ahead.

Good morning, and welcome to Acadia's Second Quarter 2021 Conference Call. of for Director Hommrich, Gretchen Investor Acadia. Relations I'm our before Executive turning first Debbie provide call harbor with you Chief I'll the safe over Osteen. Officer, to is you To news in the release viewing link. GAAP most measure Investors of financial on any financial the to measure under comparable according extent that measure the today's find will yesterday's calculated call, directly a our reconciliation non-GAAP by discussed to website Securities Litigation conference expected meaning Private This performance may of statements, beyond. including statements contain quarterly and financial Acadia's Act the within Reform among call forward-looking annual for regarding XXXX, XXXX of the others, and

this For statements. foregoing believes, intended anticipates, may statements fact be forward-looking call this deemed similar to plans, to identify expects the that words and statements. during expressions the are purpose, be are statements limiting historical any not of forward-looking made Without

statements cautioned in information, whether differ release. filings factors, the operations to forth may update statements materially Executive Debbie to like no call forward-looking others, hereby to undertakes result conference set At over as time, that are and results or Consequently, events and from You Commission Osteen. obligation be Securities these important Chief the a quarter discussed results affected news Officer, remarks, statements. of among forward-looking company's any in I second would the Exchange otherwise. Acadia's by in publicly actual The may new the this future opening company for with turn the the and

Duckworth, will our second some conference guidance call. quarter and the Chief and today increased And management of our today for quarter for operating Good Financial and financial XXXX for provide for I our members with thank results David executive with us XXXX about here XXXX. other of team. you remarks our and morning. Officer, David being I'm second

David's open questions. comments, your the will for Following we line

Acadia as second favorable health and efficiencies financial while operating our providing lines. services trends momentum our increased across patient delivered performance. business our of and for care reflect on very experienced all These behavioral quarter are in focus pleased with our the We results volume delivering a operations. continued We service the solid for exceptional our across demand

get Acadia's Before employees and services high-quality operations and into results, critical in to accessible our I want for we care the who've across dedicated our meet and to a commend clinicians continued manner. safe demand this provide

supported our more financial support by We as model, services. team need the to an as have patients strength who a reach to ability proven well operating experienced our

strong For XXXX, quarter facilities the of our produced second results.

Our same-facility revenue revenue X.X% increased the XX% in patient patient days a day. in second including quarter XXXX, increase X.X% per and compared with of a increase

the impact of quarter in second increased COVID patient last days X.X% as to from an Same-facility As XXXX, this increase approximately compared reversed and patient second the X.X% impact last X.X% patient quarter decreased in and May experienced approximate of and the year, days year. restrictions, of the the for volume X% surpassed pre-COVID When related X.X%. we days lower COVID April volumes a adjusted our from reminder pandemic in of June, XXXX for to of increased year. in

treatment. pathways, reach long-term previous we our strategy shared we around expect I'm that those especially Acadia on calls, lines, and growth mental the already these we diversified have to demand. will anxiety to well for strength access new Acadia's seeking our those investor in solid of growth many those had the The profound see the trends. We hospital lines. strategy patients our expanded added incremental individuals, effect a a pandemic XXX-bed Acadia growth for Leveraging meet treatment of continue volume needs treatment, service to centered see to organic Facility make issues options health stress with behavioral pleased to and are existing a the service positioned remain pleased that and struggling as we continued which for substance growth We that additional is replacement Hospital related the drive return in from and pandemic health investments at for to to growth our and in pandemic, impacts state-of-the-art is we half who Belmont from on worry the X beds in to demand about we On to the across expansions percentage which investment. societal quarter, coverage provide XX are acceptance of of opportunities Behavioral the of We higher report our mental push a Kaiser in July XXXX A make seek Philadelphia. increases seeing March opening behavioral second greater disorders. operations of XXXX. distinct the designed with health about negative believe compares the or study with also same in strategic continue and to use markets. XX primary to that more related believe beds progress found to support and adults focus and our the stress best included of height

We this expect add to meet beds approximately demand. our to year to the goal meet growing XXX

use CTCs and following first medication quarter. To combine trauma achieve CDC as for to from increased basis mixed of Fentanyl of nearly isolation, deaths therapy behavioral that identify from disorder. and losses X use CTC on this the the substance treatment use social to and need, X opioid in suffering illicit recovery pandemic new of result underserved second indicates and long-term health a the We opioid quarter spread overdose operate job an in and outpatient the CTCs address including drug the patients also from of markets treatment, behavioral with XX% in opened we critical drugs. opened disorder. data Preliminary continued and XXXX growing XXXX, in

in more second of to continue X with individuals struggling XXXX. We opportunities half to CTCs to the see expect we and open more help addiction,

de with facility an a markets are in treatment Glenwood co-occurring a Ohio. mental in with novo of beds opportunity health Cincinnati, shortage inpatient for Another struggling who for the for psychiatric important provides opened disorder. the or hospital of XX, May On health growth This XX-bed treatment. Acadia facilities is those behavioral Behavioral substance development wholly-owned we use Health,

attractive Bronson We health national a we leading systems build health as a place clinical partnerships with one venture joint preferred care our gained with expertise outcomes. Bronson announced a health to As venture XX venture country this ways facility and to provide network new in integrated health treatment expand care for an to Joint partner across systems have joint care access many combined in With mental as treatment partnerships options. country. and behavioral reputation attention, markets. opportunity Michigan. are expand the more Michigan's Healthcare, of leading Creek, with XX-bed improve now in systems, integrate developed a and health providers recently Battle issues a addition, resources achieve communities looking quality Acadia for and has to have more to premier in leverage provide the around to strong shared such commitment favorable our

this and the will for important of ahead beyond. to growth pathway We Acadia year in continue pursue

future fragmented expansions, place wholly-owned to joint behavioral acquisitions, strategy prospects acquisitions. strategic opportunities. capital believe these health through has care novo our bed we additional Acadia We ventures also the industry expand network to sufficient believe Finally, in for de with well and pursue positioned the facilities, that we and are offers right

We on services. in well demand are business encouraged capitalize our by and for in are health the believe expected positioned favorable trends we growth to the behavioral

patients support to primary As this is mission the and meet always, and demand we serve. our communities

extending while a will patient We to advancing market leading continue position and care providing the on focus care our our health provider. quality highest reach behavioral of as

in financial Now, call discuss the detail. turn Duckworth I to more to will David over our results

for rate compared morning. with Revenue good was million the and a $XXX.X quarter the XX.X%. million XXXX, second Debbie, of growth quarter second Thanks, for of $XXX.X

net $X.XX. XXXX, or For $XX.X was income the share stockholders share attributable per stockholders to Acadia Acadia was $X.XX per second million income diluted adjusted attributable quarter and diluted to of

transaction-related income for and adjusted last of $XXX.X same impairment compared to to of EBITDA tax income XXX in points debt basis year presented adjusted Acadia's million adjustments to the with $XXX.X extinguishment effect Same-facility improved the for release, period costs, XX% second these margin our periods prior adjusted quarter earnings on For the and current loss excludes income. XXXX the EBITDA XX.X%. year. increased million expenses,

million recognized During the $XX company the CARES of Relief second or XXXX Provider Funds the our in in Act. received been under the additional quarter not included of quarter XXXX, funds guidance. have second These

be whether determine are of evaluating will or returned. guidelines any to will funds be recognized the the We

approximately X.Xx of million XX, and $XXX company's million including quarter second debt, of credit $XXX cash XX, million the The June outstanding we our of second the million. the June was reducing During end ratio million repaid on the leverage net was quarter, at XXXX. revolving revolver balance to $XX facility, at XXXX, as $XX $XXX.X

we press of year revised the have our first our due year year. performance noted and As half in full and our outlook half operating of the our to the strong this for financial second for release, expectations

to to per our range of $XXX billion; $XXX a earnings of and to now of $X.XX adjusted diluted million financial revenue a We $X.XXX $X.XXX million range of range cash million; $X.XX; a operating have XXXX in million. in in increased flows a now follows: $XXX as guidance range in share, billion adjusted now now to EBITDA $XXX

pricing and expectation that in the the trends will on and cost the for and guidance discipline Our year. our focus second reflects in volume recent continue patient XXXX half of the efficiencies

With include open this future to reminder, transaction-related expenses. acquisitions, discontinued are operations of that, divestitures call for does impact the not Andrea, we questions. or a any ready As the guidance or

first Bank [Operator our from of Instructions] Fischbeck come And America. of question Kevin will

Great.

labor into and to to like signaling difficult getting It of wanted been that more have some the dig is seems Just labor source. providers more cost.

Some being getting to about as that talking growth. factored companies are

what just going Just on how labor and pressure want growing the feel the or hear your forward? -- to about you seeing margins

tight Well, a we have that through done generally, think, it. market, I seen believe very I but a job labor have managing of good we Kevin,

and focus We have markets. also strong, recruiting We're many consistent retention. in very a on

we see, time, challenges. XX We and are in staffing states, time to do from isolated

very team I I in job. think good approach. They're our has very aggressive, and as we've done, proactive said, that a been the

is markets. our be to our goal So competitive in

We have a supports efforts facilities. the team we that And very have focus. local corporate robust also and

are So they with are some of there. that helping and the recruiting facilities challenges the

cost the disruption haven't of in change our seen or significant a staffing. We

Our It's has been pretty labor. consistent. around X% our of agency labor total

we're through think I it. managing So

focus. just have I job sure we're limiting managing because they've team think not that lot of think I growth. our with a again, the commend making good I done a effort that it takes and and to And just

color your And press high-profile just commercial release there a that, release referenced about specifically, favorable environment. more reimbursement to speaking, in among was and payers? hear, the I I want Great. certainly guess, out-of-network. broadly reimbursement guess right. a what earlier, think like United the outlook on I about press you All going maybe then but I looks

Yes, commercial our relationships in-network. payers Kevin. of over group We including diversified The XX% revenue, majority strong across of do payers. long have very and of our our our commercial, is lasting, commercial

pleased so that relationships that the with payers. that with our the have, And get strategy we and commercial across pleased are referrals we we

We benefit not are are but most United. that to believe believe could we are of with our volumes has that we it have in that And do the that in-network. company, our because see do to, with of we some fact, aware strategy, announcement on you referring facilities mostly in-network our impact given an

our And for U.S. again, company across revenue. revenue our the is commercial about operations in-network. X% of our out-of-network So over XX% is of

So well facilities. could in impact, provide potential limited, we some could markets any also be certain but we're benefit certain only positioned and not think and

The Ralph Citi. of comes next from question Giacobbe

to that talked for it can prepared you Hoping is Is payers? your to behavioral telehealth incremental bit push that context. remarks, for you behavioral in it little health. Debbie, more give where it Just access states? influence? trying about Does push Is the seeing for Great. employer, from. a access relate more coming understand

a our a facilities shortage when think of in lower And I access we practitioners of that there come that start markets. in inpatient about think I many level our think many of certainly to services, Ralph, is care. usually to our patients,

what mental where through reach these people think think needs that we can to help funding going -- addiction telehealth I health about professional can for person, trying pandemic, during centers we is we are crisis some just think in us. can people diagnose that out. make and sure crisis really other a are sources that make we have a instituted outpatient reach So people hotlines seen is a and to forward, have them hotline for that last we do done really We've year that access see as and but sure have there that the companies assistance are. the and I can need what trying their of our

suicide the be the have that With and get wait people more to rates right that it's think able or time not ER I in climbing, an are even important to other service at places.

making we're our and for that But facilities. then I individuals a on pandemic partners real this sure so with it, So has think as that they frankly, working access needs. around funding have just many can movement there's unfolded generally, our and access

of One read impacts. of half I the adults negative report health to recently, studies continue mental

as be that to can able So this, someone we help to access see need they them.

the happening we're think so I part a of really across it's And that, but industry.

a just of easy to how MA the economics the simply catalyst the on COVID the relationship with it joint or little with bit helpful. help And think venture and de us you be Okay. there. anything driving JV systems sort efforts or and or build, this more that Is is else operate pandemic is at larger That's the it? And seem if point, maybe accelerating. you would give can and it pipeline hospitals versus does then difficult the like us integrate novo

health mean, and to that think more. the we together. discussion put and saw we that I potential wanted less keep thought fact, health really going. I started, see partners actually systems pandemic, I we the health large would these physical to see They Sure. want during momentum really think have And our and mental in

before started I in do throughout which be Bronson, a in I projects remarks. have have different robust We strong We my pipeline, recently that it but has and So think do pandemic, to the continued we mentioned announced stages. this the XXXX. are

in week build also Health We a to with -- Network later just announced a partnership Indiana. Geisinger JV we X plan a to We have actually for groundbreaking with this hospitals. Lutheran

a that think stands we as with for record process. been to think chosen competitive pipeline and systems. are we But going our There So just about others preferred there's track seeking have forward, health I because partner. many usually as itself, fortunate are been partners we've our

that have signed not have We LOIs several announced. we

reputation. agreement. have partner, we a enter do together, will we definitive they have think when a we And We that so able is have a to we're work strong I seen that as what with established market

their always with And that's fact, with build is a payers facility, beds relationships they're so usually which together, referral as in we together usually, what folded certainly, pipeline, closing their and happens, partnership. and into the

give advantage a do partner. does if it a with us to an entering that market So we're

credit think make price as As helps payer far partnerships I with other we all we have in have think a will think with very they when the a a And it see to several because we these our things, right ramp-up to bit because over working partners, little these Again, faster. But in certainly, just they of lot relationships and we're that with fortunate the pipeline and we're And negotiations really fortunate such now. that as we for we that us a want give that field payers. those the a I and decision, growth reputation. pathway that strong moves that now. references have check XX years continue I usually do XX are

Brian The Tanquilut next Jefferies. from comes of question

guess, you. I David, really quarter. a I'll on Congrats strong start with

that in into you QX. mentioned expect about to your You prepared cost over something remarks efficiencies carry

tight would where targets about are land? kind But we pretty should market? a same-store long-term about given be we thinking well. Just think And managed also, that as about I you of where from perspective, know you've through margin wondering how that thinking the labor it

the several to has Brian, and job operations in drive have. done quarters opportunity managing to fantastic incremental structure we the a seeing really now with cost for is And and the volumes, the margin. Yes, seen, volumes the we've team leverage that reflected efficiencies our that that

market, going but sustained can benefits the of of volumes, mentioned, Debbie couple see have we're labor tight a we we And for the programs years. we've as now. really managing through know last that talked that about that through, I right market manage cost incremental through many show seen the as savings are labor We we it of the that

the So also costs costs dashboards on to that match really our according see. staff our do discipline that growth into maintaining continues the the weekly volumes see level at job, focused the using team good to so and to and we we data, visibility able a just and see facility that our we're volume

is we to pipelines that our We that forward, Going The do additional drive should will continue Brian, growth to part that, We're existing beds our way we we improvement that pathways. that basis of all around opportunities. group to of working points do think of adding add our is margin capacity. on add And improvement of further same-facility facilities. XX that, our facilities. that capacity margin add size across

We in novos. continue, of to ventures de will new and facilities, joint course, invest

very an that's Those of we of improvement, basis same-facility to And those XX margin But expect be the attractive to opportunities. investment that. longer-term see accretive process, those once we But think that a margins so that's in where are see points as we'll well. start-up investment. mature, outside will some group,

the plan we see to to margin continue capacity So that additional add, we'll improvement that think we opportunity. with

pipeline? right tuck-in for M&A, at lot sizable of Debbie, That's maybe your there's awesome. now. this share in chatter you any are just about there thinking point How lot of out -- And deals versus insight are that market then on And some are picking on large about transactions? you, assets you I guess, a a the the view can

fragmented and future present certainly a are there single-facility a behavioral. see remarks I number do which for market, smaller multi-facility operators that us. of in to opportunities And my then for that the continue systems we Brian, mentioned think Well, I

As we I fit at approach, we we the comment don't mean, and as are any strategic look well we opportunities, a use transaction. look But at on as we disciplined financials. -- the M&A the at specific looking as

might So are what invested the which able the to for as be the a the component, synergies return us, fit, look strategic market, at we're return capital. metrics is financial to whether going also at looking the we on be, IRR, new enter we

thorough which us. sure M&A. think think we what's to I fortunately, that think think that But the And opportunities I something opportunity that opportunity be of the we We and be we I I to will there it have that for think, fits of to an will that, ways of see be we what stay make term, for thing we're of see good and with grow, number even good out a I in that. a number job to going is we're will future have grow have also, will is And have well with to just think very, evaluate. I for But I about a disciplined, facilities. ways single and opportunity. also informed going long there. We're just Acadia, us we a then The organically. do do will

frankly, to have, some we who for, team do all what what as an here And of we're look through through us disciplined But it. suffered think that we the well I stay knows have pandemic. fared to and as going not have experienced

Rice from Crédit Suisse. comes A.J. The question next of

guess. I X questions,

does in comments of I terms look dynamics and -- First your I are treating appreciate aware implications mix are that diagnosis the services wonder, services more how now I the or illnesses have patient the materially that have or orientation any about on pre concerns. in you're is now, behavioral if maybe prevalent we than payer the be the And the pandemic? you for metrics should the certain changed changed all at of? -- that population other right of pandemic guess, you that have much

medical have we A.J., into meet our that see facilities, certainly, Well, as coming necessity. the I think patients to they

individuals specialized very are need acute they and are that they services. So

from that seen real out I I think diagnosis for the use. staggering, of that's multi statistic can just area the impact, think we is that, see a just the something we've treatment need. needing think overdose about deaths for that, me, And that are to as we CDC the that and just substance put was those by

issue. which we a our not mental the are see facilities, So but also that are health substance use co-occurring, just part in that issues specialty of patient's

We steady during locations, the that demand being risen are And very just CTC of have in done that's also some we patients develop We that stayed have opening individuals year, into suicidal. we job has the number it's I our year, but facilities more across even think, which pandemic. this depressed are It's payers by criteria, some one I prior treating, our seeing -- That's to that the but done. that of think pandemic but why and the clinics. the see asked been of new do prepared. of that of a and and really we've continued And programs, seen great actually our again, were we've we're more now acuity. last specialized our to more CTC

I think and just line. But think really, acute strong that's specialty very continue. I going service benefited again, have demand. to the And specialty the been both that's

going marketplace forth, view to do that from of important address discussion So looking to you're would that? a the silo as be Maybe and so you about of things how of telemedicine a outpatient. Do totally feel view integrated around needs Do be with use those guys the it's over about distinct sort some there's think at to for the of the follow-up behavioral like do -- you focused question time, you you -- that? people in be lot the you on? How outpatient initiatives?

come do the pandemic of part in we see has use found to facilities be it it are be environment as our I us way as the of to really for also going when do, and country, with that programs. what across stay coverage -- have just of in use also it and We've telehealth and regulatory services around that positives going using it our payment we are We We is the some our the support expanding we're services. specialty now. we of one to existing out probably that's think I Well, of the environment. our be part physicians, use to it a oftentimes, will alternative forward. physician for them to that We've not we key telehealth And locum. to for think extension an a case, a replace think we're this our to care. going locum connected shortage, we I -- forced to It's an which coverage. going is do inpatient

to we're Chief And up. Our have to we a safe they're it integrate. come in Medical where be that of we part ways to patients doing. looking need the some Officer, companies we're we I a just think our A.J., environment. as team, that can I by see of have connected for led think do what But telehealth And be that going it's

about have We year, it's it seen year, year was XX%. And of a XX%. this this about usage. Last decline in telehealth

are rural have are But individuals have to the that or that really to access those in there prefer it. don't that use also face-to-face. there areas So are individuals want that

therapy, extension for even the and we and counseling more. a it's on use do, have be right industry. using CTC, our can now, patients looking It's think just something for asked I an that So we it's and been for ways But what we we're the it providing. for will it and we're positive even of

to environment going know at done, because up how to for be up. looking for, pay watching And to going and very how I see they're to It how way here it's the will pay it, to that regulatory delivery it's are ends advocating payers we're should to for stay. that being. it, I access. see the frankly, what's interesting be do appropriate, so a ends think what what extend closely they're And

The from Deutsche Bank. Pito of next Chickering question comes

And Just a revenue increases you mix? that into break at per this little biggest What's a pricing commercial more? point. about Can talk versus day payers Can how you collaboration think per should from me about the couple the on your revenue you and we of And years? over increasing there? days about driver couple specialty? the talk between next day -- the

for drivers we all trends also seeing we are of where the which revenue revenue And XXX, Pito, rate of and strong favorable day to to X% of saw quarter X%. payers, payer key were across had Yes. range increases we meet, in a We quarter. our our this continue. that did our pleased per similar something The expected see mix very we're first day per grown reflect also performance commercial a And And over really relationships which XX%, our quarter, commercial XX%. have higher our was to mix it slightly specialty level U.S. see our across the does of we our just typically as and we of has that strong it's the percentage revenue. revenue, of commercial where a payers this XX% under just of facilities, volumes. is commercial close

last and well perspective relationships a to that in There long-term the per to offering from have is our with component our also with So believe our and volumes. we little a revenue a facilities in with specialty payers. therefore, quarter acute bit of positioned that was is expect mix are lower service specialty different temporarily growth we a this second XXXX, we have being on service continue do of And mix commercial patient did to day year. comp a see the quarter challenging and higher. RTC We

year, probably per see trends that comparison we to So and will this the But we growth a year. continue do a more that the this We our will moving X% of look continue quarter. where to ahead, expect is very metric. and to the But day we think revenue range growth, that see as we per that X.X% think last day that we to revenue component per continue a do provide in given is right strong lot the are into that's we X% of quarter XXX forward. part this day the of now, revenue

have have -- more a we mentioned payers our around sure also that to David providing, that, rates as and it, the services And it's able that Pito, higher specialty outcomes with the we're do we're making and are them. a we that And go to And focus for that we we it. sure demonstrate our making outcomes. demonstrating we ability are seeing have because

also this quarter. to has out-of-state Our that added during

to bring as specialized forward. commercial we out-of-state we continue from and we higher go as mix, to our programs, So highly that tend to expect patients they be do a

XQ? quick and sort time. talk what to of Great. back labor XQ Delta a behavioral pressure more on look other? ask seeing see the save the And year, few or seasonality technicians them upfront any Any the Can side, you And of in variant of more follow-ups, you're at the on what I'll then on we in July? one sort on all type nurses, you should less if think versus the and about details about then you half employee versus of for do

the I'll part take of that. Well, first

a We the have of COVID a in few in slight seen patients number uptick facilities.

this making robust lot We impact well we're We and of point, this our think it at staying do had impact We're procedures. prepared sure that on they're in volumes do -- is an with our there's ready. going everyone. about then haven't that I it or another certainly to a discussion seen facilities, feel how a with communication way, significant hasn't we staffing. our increase if see

I still access to protocols patients start treat to I ensure want to I as think, maintained, have as we as think COVID important, they as us, even decline. which our PPE they we of have well supplies our to is want we to emphasize most just But as our care. all saw come plan We -- to

our the in If manage. see we ready. and think to were we So able and good I we the do about the really procedures feel of variant, Delta COVID that pandemic, heights we're

something watching I'll we're prepared closely, let but is it. that David, for So we're you…

third the to we similar very seasonality, to do quarter. quarter expect on the Pito, be second

so quarter, that to do service past. lines impact size And a it lot as In there's around that's compared fourth the million typically it's having million the third would quarter We the census. been $X in our to in seasonal the and we where significant a around $X quarter about the third least holiday that's quarter. not second and in to the see has quarter, seasonality fourth some impact, certain from at typically

focused the wouldn't more we of does our labor any can techs. will the able only we're where there local census. service of level sure just that on all to depend quarter. as than level right might make and of some It the trends the and line. on And the techs facilities. of our specialty, I staff corporate So we're in think groups end Certain resources clinical your employees we year And do be On nurses depend the would we're And quarter employees. the would group nurses. the service a highlight be But be many at lines fourth highlight as recruiting nurses are But does health mental service we very of really depend around continue. therapists at market, other Debbie more seasonality bit market, to but it to third mentioned, it clinical not would approach. market-specific of be the more and on it's line and on the the the business the compared specific little RTC as the stronger our our on think a would employees, and on question, focused reliant

of comes Raymond James. The John from question Ransom next

at how same-store of growth? the look we in CTC a if David, factors much as you business think do XXXX, revenue your percent

last service the stable. X that part in specialty had service were really of are very the year quarter, trends. John, I and to were CTC the stay lines a year did is current And that just last that part of very strong census. think decline the acute those that impact -- contributors And year seeing strong growth. is for and their temporary our seeing this particular lines

strong our would more some And in business, say CTC is strong our are CTC leading the growth because type service lines. year, growth for where single-digit typical of range, revenue specialty, X and this the so trends and of comp census I acute because among

in migration kind guys just if capital so, you next have to electronic investment idea records. And what from might over of the like? Great. kind something made of to is paper that the not years, medical of records sort And think your that medical or X looking know Is that future? you look I have have any do you

facilities actually health do we that an do record electronic have certain John, Yes, system. have

implementations. to those EHR [Indiscernible] many facilities acute of our We'll facilities. plan, where have We are online. venture facilities. on many our have and a of implementing that within And in That's this we have system. year, acute more existing our We portfolio investing joint and on some it later do focused of are we begin of again, focused and many facilities that do begins some bring our

expecting, use. on it that system capital the depends course, you that So we're the of

the of to that I a transition have evaluated a many think slightly and know with cost our we've lower improve we investments in partner a make I than systems be past. plan will good that the that

move probably more but So work beginning on that We'll into share transition. have to year, we're next to we are that we on as excited.

project? point your Can at who that for you say this is vendor

know No. I if don't we can.

we no, say, will sharing that right just now, I'll So later. can't but we be

Markets. comes next Frank question from of The Capital Morgan RBC

discussion just us has give there? the been expect continue any on to changes kind know updates an you payments supplemental any Or of around getting of that get? seeing state kind if But you reimbursement to may you a to expect of see update curious, I lot you're or commercial side, pricing. be could the

level Yes. The and our that's course, different have that significant do that XX of revenue state of Medicaid across states a in. we, portion is we're reimbursement,

our in acute most very So XX% this of point Medicaid over a that Medicaid acute revenue. revenue within with is And diversified our managed at we Medicaid course, line, are payer. of our think I service of

trends. So we at very the level, continue positive to state coverage see

our state our to the but we've business the at CTC talked for that coverage strong across really level. course, behavioral with states, be health improving continues about very Of

our see within historical any to And to be have really is We increases each think within could that seen each like than to decreases X% rate forward, not payer. and Medicaid on states state going -- expect stronger what X% looked depends rate payers. continue many the but have Medicaid within how about we

a continues be very And it diversified very our to that So be us. continue stable, see very across good to for states. payer

Back one sequential I third Okay. -- the tough third for for to the quarter. Maybe the the a guidance know one. always or quarter has fourth comments and one. been last

a quarter of level of past what guess where has do you it confidence have this versus I always -- seems been years predictable? year, sort So as not like third say,

-- the first business, and this other with U.K. was is the quarter. we dynamics some interesting of Well, do vacation years and particular, that in third our seasons know U.K. without I and summer did the third quarter in in August, the in a number

So business. lot in earlier, we a we in think, the most as quarter been do our second quarter. U.S. has third mentioned should case like the that, look years, And the

throughout here that We July pleased saw August, have very seen We're in numbers. we've and seen trends July. second into quarter continuing with so we're we July, the early the

that have third that And second no reasons it there's so quarter, of a be nothing we highlight different have we would to confidence than any And should provided. the think the guidance lot quarter. the for that in we revision

to concludes for closing session. Osteen any Debbie over like to would conference back question-and-answer our I This turn remarks. the

Andrea. you, Thank

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today's you has now may you Thank conference now The for attending concluded. disconnect. presentation, and