Acadia Healthcare (ACHC) 4 May 222022 Q1 Earnings call transcript

Good morning. And welcome to Acadia Healthcare's first quarter 2022 earnings call. All participants will be in listen-only mode. Should you need assistance [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator question a ask Instructions]. To event Please recorded. being note this is conference to Gretchen I like the over would now turn to Hommrich. Please go ahead.

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

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

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

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

as leadership, benefit CEO leadership ahead continuing directors, personally her thank role the continue of want look work her our start for and place, will know Acadia into on she to time we for grateful as Acadia her our a CEO. line your today the by by will it strong, we Following building comments, successful want new for and Debra just and But company, transition the team. with be on open expertise. to is and an leaves for future questions. to what we since Osteen plan. I'm is results, I foundation Debra I the respected forward in saying her before I trajectory the the set joined board I solid get to our from that honor you the the organization, for we Debra is

healthcare now industry me. and the in and IT. managed for Some over about I've decades lives. I'm care on quick and people's worked our background in difference makes healthcare passionate two industry the healthcare

different For roles. I've at in the eight years, two past Humana worked

most need corporate for health Humana, provider have I ran the TriZetto the Humana's members solutions. combined the with behavioral for firsthand And these together in acquisitions, Chief the Prior mergers as unit that Officer business XX President from at of witnessed corporation. I as multiple critical vantage strategy to states. First, points, the effective XX recently a and and Strategy and served million business the responsibility

around pandemic, to only elevated to mental COVID-XX XXXX As Americans pandemic. that the compared the challenges increasing. symptoms of height X.X% depressive the studies from Recent there's evidence experienced emerging health may finally the are only of prior in be approximately that we reported clear X/X

While more received than XX% of condition. for no their the mental adults with illness treatment

our of also a ago, address and continue our critical societal have provider within health responsibility significant of behavioral to in care I'm real patient pure-play environment execute with continuing our leading those in country. of that meet three operations, And encouraged weeks take COVID joined across need. the Acadia this be are been to has health, to Acadia growing well-positioned to Since I services, service that is needs serve opportunity impressed pathways our We to across commitment I labor seriously. a the meet strong while growth our offering across tough with which behavioral our need patients. focused disciplined undertreated diversified As challenges shared businesses demand and a this team's all ability very we lines. growing services the have to comprehensive on in to by ensure this

an to foundation we operating strategic the update on our solid to quarter, growth build proven four Moving Acadia's pathways. continued on and through model first

continue reach beds facility new expansions unmet markets. this existing We and to efforts patients healthcare demand added XX more first quarter calendar and year. through expansion expect to add facilities approximately behavioral address the to in facility the our in beds for First, XXX services current and

health facilities the that treatment avenue facilities three for non-operational novo in behavioral under-served wholly-owned XXXX, this purchase of fill of and the second end completed growth help Acadia de gap. develop is Our Chicago. markets to identify At

on for children's the have since hospital XX-bed work commenced that a open to plant we expect We month. improvements next

begin will facility as and Health Behavioral hospitals. are and XXXX Montrose hospital operate both Chicago addition, In adult slated to outpatient XXX-bed in operations an

more to dealing growing expand five least which In new address in CTCs, open and treatment of CTCs designed we Comprehensive we our need opened first of for one Virginia. Centers or XXXX. are And CTC continued to network the medication-assisted to the with we disorder. Treatment use Additionally, for critical opioid XXXX, in quarter at plan patients

in Tennessee announced continued growth for in third joint to partnerships. XXXX this Our with systems and in new Working these new expect Knoxville, expertise a with operations partnerships with in and partnership partnership with health we commitment Wayne, Fort We expand XXXX. access combine Network new summer facility in and a Indiana to partners, with venture resources to together open lever the quality our healthcare. shared a Covenant Health Acadia's plan later through can six is Lutheran in behavioral launch to facility Health in

and and necessary pathway investments will is service high-growth growth framework. identify make our to to disciplined for where strategy fourth our we for a of model that programs has operating our our the and allocation look further markets criteria add acquisition proven meet for we expansion, and to facilities and scale the Finally, opportunities capital offerings continuum can enhance of leverage expertise, continue care. Acadia

So avenues XXXX, additions opening to expect two existing [Indiscernible], to facilities inpatient beds least in facilities, over growth for recap add beds XXX JV we XXX at approximately partners, locations. to two in CTC and with through these total six

the communities. seeking our reduction need we significant a patients health build As seen in of need. upon and often is the stigma effective My market patients more also strong greater extend as that from mental and goal our as other acceptance we momentum to have the treatment, they at well to is a public for health with help reach witness issues, parity prevented more

all months industry address address determine and reviews value unmet the on the our businesses the this to lines. lead into continue to to Day our how forward needs strategic headwinds. we execute opportunities year. and New Acadia incremental across can I we plans, conduct Acadia York to to each to best of to also in later growth as this will service industry create exist position of conducting sharing our our to order I of that the look like We plan ongoing identify some in first would coming Investor future. I in long-term perspective

country, team's through other unwavering dealing healthcare providers our are currently with to across other environment ability manage At I've market. industries this treating time, many with As and been on our the labor impressed patients. tight focus a the same with with an we

manage recruiting in staff And believe our and patient line with retaining effectively We clinical have potential be we continue to through in to we tools the intentional needs. challenges.

efforts employees centralized support function local with recruiting to new to utilizing We robust recruiting be our continue successful facilities. our through and

our to account continues have pay competitive our market While on and manageable, our for percentage a is employees, inflation and stable low focused wage valuable for of we pay is premium cost. our labor

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

more and in continue financial now serve providing XXXX on Duckworth to more will turn advancing our while our patient on this our and the to quarter our guidance provider behavioral a is counting and in call reach that I market time, as need. healthcare position to the leading David to over our care, We will grow families for country results extending discuss At detail. high-quality focus

And good Christopher. Thanks, morning.

and first marking performance start the quarter, a at Looking we strong solid to operating XXXX. financial delivered a

While some our we March. and to the in quickly of January trends early faced the COVID-XX, surge in operating February challenges variant meaningful of with Omicron improvement related recovered

first our quarter was to first quarter adjusted period on through protocols stockholders EBITDA first disruption of Acadia's compared year. with was was standards operations. patients delivered in execution ensure per $XXX.X XXX Revenue minimal of adjusted quarter $XXX.X successfully our XX.X% Our facilities And the with strict of Adjusted high place to million year. with quarter prior to the compared our last the We consistent the XXXX for of in well XX% income managed for with million for our compared the $XXX.X strategy. Acadia diluted XX.X% for in performance have increased $X.XX. each stage share first metrics XXXX. key the attributable to with of EBITDA pandemic for demonstrating million safety the same million $XXX.X -- margin

expenses our period income tax For current excludes transaction-related earnings presented effects. income in and adjusted release, the

X.X% first of in For increase per the patient patient increase of X.X% of days an revenue an in and compared the XXXX, first increased including with day XXXX, X.X%. revenue same-facility quarter of our quarter

our support and of care. clinicians Care operations experienced have patient robust dedicated demand employees our with patients to and have across Behavioral our We high-quality our team Health for Services, continued

sheet liquidity, balance capital remains with our and Our growth flexibility, to future ample and investments. support strategy strong

had of cash revolving XX, Acadia credit March a under our million As available million $XXX and $XXX million in cash and $XXX.X facility. equivalents,

the leverage net X.X Our was ratio approximately of times. end the at quarter

of the of million pursuant received amounts its payments and and million company the made the Accelerated first the of in $XX During Advanced repaid Medicare of XXXX. received company quarter, the $XX payments quarter repayment in Program XXXX, to CARES Of $X XXXX, the the Act. Payment in under continued advanced first million additional

to balance repay continue XXXX. will throughout the remaining We

approximately half also of $XX XXXX. second half the in the deferrals million will tax remaining We of payroll repay of the XXXX

XXXX, range for per to includes release, we to which share guidance our $X.XX Now affirming turning in $XXX adjusted adjusted of a guidance a previously press our billion, our billion diluted of million, and of in $X.XX to noted $X.X a billion. to EBITDA as million revenue billion in earnings $X.XX in are range stated $XXX range

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

begin will session. We pause the assemble momentarily At to will we question-and-answer time, Instructions]. this now [Operator roster. the

from Tanquilut will ahead. Company, Our Inc. Jefferies come Brian first Please go & from question

obviously, Hey, before welcome the here. guys. call. on for this sure my I'm you you, company I Nice to to diligence And, done but the you new position. a of lot morning, took job, you've first good meet the to Christopher, question guess

the in seeing I you're mandate laid see as look how of maybe CEO enhance earlier, then about anything know as And are into can you strategy. where terms but Just strategy with the or where to at there opportunities the how goals out Board can conversations you the I as your you're thinking step growth you Acadia, curious guess improve. you or the role. you

things substance appreciate disorders with patients health [Indiscernible] the even few that outset. I'd use all the start from Thank ages. you, serving from and those the all of psychiatric like I really areas needs disorder I Brian. A of really diversification to behavioral and across with question.

business, of execution strong the the started payer role. impressed have geography. with into And diversification I've I'm particularly We mix, lines all across the team. of

really and to probably say COVID the growth levers building But just I benefits, off think a ahead think, we around would of around labor digitization like future sector, enhance and embraced ways continue prospects. we headwinds and balance and But market. of would technology a there's see particularly us. revenue have platform. it's I lot have during our opportunity sheet, with overall, of prepared to just And the me as tight discussed strong the our of enhancements, the will further take and I very with remarks significant discussed foundational that and behavioral excites difficult in to the cost, earlier, think and that a efficiencies stretch I industry strength. other even advantage we I base that

the clearly that from board are positioned in But yet. Week a and I meeting to and of the of we the have across board in of terms real company, board excited. business. mandate, just In am the levers And how tailwinds first us, we Three demand spoken our to haven't the I all I'm four of my lines strategic had about with grow very standpoint ability front

in the anything growth of per metric? call was David, follow-up out question. And I that to do strong. think sustainability patient how about my then, appreciate Revenue that. level then just that Is And there, of day there pretty you

performance, We and say rate have we continued significant service our the first XXXX broadly of throughout that we most and seeing lines. revenue which day that seen are we would component is across our and many saw increases per quarter, that a of payers into many of the strong

are collaborative our and increases. the We care with Payer is facility our increases of commercial rate at local but have at relationship well getting very worked on quarter, revenue this saw at close part most just rate level over company that those strong saw payers, and with them a a maintains managed per have on from other increase and of X.X% same we level we corporate for day mix is a our that a that payers. we team volumes that and basis commercial our our XX%,

Awesome thank you.

question next SVB Whit from Securities go comes Our with Mayo LLC. Please ahead.

any given all level on joint across process just the around construction the front that there new Maybe, strategy side? talent all you these enhanced thanks. refine this the to with or costs just you changes anything projects, ventures, activity are some construction opportunities construction that the in have increased development all drive David, of Hey, as the should scale resources some there It feels be these activity. of

of in on on course, continually And growth years. execute that next significant a for bed need resources over are, We the plan. we the of the several planning focus additions we amount to

We online. right for built strong joint we have already new those we've a Many of strong the will have those planned. are as we continue to partners relationships look that those bring venture team with facilities team but already where at facilities we relationships

our are the construction But We the the able to can, on of as resources initiatives. will them Many within are quickly be beds might building we of certain cost we a construction. many of process can as opening to that are look for parts we we where of need we've at have number continue the those beds? shorten at also find and and that and focused resources the last we as always done. department over perspective, to to those open From year added construction looking a efficiencies

beds all the we team we our continue quickly we'll build we focused on and the growth. team open have to efficiently and stay as can those built around as and these as want We initiatives. So to

helpful. maybe in about just And it maybe of pandemic. compare that or has maybe That's Thanks. business, evolved context talk the the this get labor just if on labor. psych contrast staff or you I of to how And a follow-up the We I some and treatment. the guess in around and lot in one just residential that acute the CTC questions trends model you as of could mean business

locations line, a at new and continue added opiate as have business state see from to states That performance on has options CTC and focused the reimbursement and many we've grown treatment been improved our more and treatment. more Medicaid use Yeah, strong have opened clinics Whit. coverage service has level a for and

mix a of our of is and that a From model component and that and more with the therapists significant ability we we clinical CTCs counselors the grow other and for have line The service line, have. therapists, but a LPNs relative our lines. counselors there the of locations would higher the continue so business along look open a service model of within grown already remain just therapist, utilization both to counselors a that employees, staffing around third the other And that a much utilize and does service and higher for does compared and versus LPNs nursing our have category staffing service on look and do at RNs, greater new have ones lines. acute significant to to different perspective, focused have but the other the that there to opportunities our the to be then would we retaining and recruiting we

Thanks lot. Great. a

Whit. Thanks

Kevin comes question next Merrill with Lynch from Limited. ahead. America International Our Bank Fischbeck of go Please

Great. Thanks. to Maybe, In back Christopher, you about doing incremental and value. remarks to prepared go want I driving business your just reviews comments. ongoing talked your

the market new re-validating of It me with CEO should pillars the some growth wonders the sounds think additional I to what might of or you from I Am but going and you bring this long-term outlook always interpreting through? growth you're basically four for the are the correctly company, like see of upside. process business nuance kind is taking opportunities review there be other away we that them.

them see as the core build want that we'll really I this some will saying growth the JVs, foundation think And do company would between upon the Yeah. continue I start four enhancements of the Novos, for facility that strong I have. the there we will De that to has expansions, you very way. Kevin. strong to just thank M&A. And obviously the by opportunities. levers to question, be along and

look a accelerate operators on just to strong talking over to now. on be at we sense. the And continue and innovation we for we quarter in prudent be execute the that clearly, and to and continue privilege spend it really that can But way with about week to an right of that time to to doing had enhance go. and to We will do growth. have the forward reinforce background as we'll to really to to we produce need trying look will drawing job some time. to we top certainly some want to And things at a partnerships, last we'll great our that I bring makes opportunity looking of period opportunity look every where a But business my continue

That's cover Because then an I costs, just is is your give even speaking. there And you or attribute that it raise guess, getting to I focus, place helpful. easy struggled, the manage which broadly rate about necessarily with being behavioral been that labor recruit a a labor wages have you peers of companies ability some costs. but on you would speaking, a little this? number obviously to overall more your through into, to would struggled quarter point to? updates have what this of think bit is something else Because generally as you've wouldn't big

when pretty impressive tight, it's little is done. So you've a bit labor what

be So helpful. color there any additional would Thanks.

the And market. team a been continues have the tight for job in to the we quarters. do overall fantastic our navigating Kevin, market a view last several labor navigating

challenge. across corporate market that to it look another. our and and is not and don't We and service market to has plus will each helpful we give each to within That's have one XX but proactive does to We We see to one do believe teams that bring challenge not also markets, impact the types staff have we and lines and our fix recruiting demand if it different situation the that all And the keep different a in different not service markets. category it's facility to always level. right but service we staffing. so different job categories planning have Rico, say We're employees Puerto states our staffing volume, does it challenges from that to line. of to and we're a recruiting markets strong leadership resources lines and have are approach have support we and facility, across a And make our credit the at I just does to different that team centralized our continue sure across resources volume. only our impact that's the and seeing to continue want we inquiries by the available, temporary at supported that

us, we having to of if need proactive it's focus just And it premium to, in to that recruiting, on tools the so all the it having managing using and the place, staff, pay about -- all has made manageable. approach,

You mentioned rates.

wages which year-over-year improvement in as our revenue, year-over-year. of salaries our seen a and have declined percentage We actually

cover that we with that We but have our able are from increases inflation wage rate and seen wage inflation, seeing been have strong we with to payers. volume

have to costs to continue labor us the been allowed have in So and total manageable volume growth. see

Thanks. Great.

Our question ahead. from Mok with comes Please UBS go next Securities. Andrew

increases that there service follow-up that demand. the that of that offering a Wanted employers more that When Hi, commercial on us think can with lines that you strong out that specific or payers good a any the commercial would are pricing driving on drivers call you we color the price base? increase, behavioral Are bit differentiated give morning. Thanks. resonates that drive and of to you strong types trends. cited, about

say, seen have as would at that our lines, lines. service we strong those we different quarter increases reimbursement Andrew, service look we across this

increases to go from that rate our one process another. and look the different Of course, of timing payers with the category through can we payer

about seen we for provide. and increases their we're design the value those we've receiving We make rate commercial annual of we that we bring, we that them a the that, to our corporate And do advance annual to we and programs and them at that talking a investments level an as members, And the that the the increase. level with do in rate we payers, cost local are stay focused increases. in talking on services

our we're we over across and of collaborative payers been commercial a and increases. where XX% source good in long-standing -- relationships been have has has network rate commercial commercial So

all Medicaid and Medicare one from certainly may Our Medicaid to view appropriate state in different but is our across then Medicare a for certainly rate good be seen that And process general, increases. can tends longer of another. that it We've receive lagged take prior the of environment and cost a to look in And several line it's stable, data terms that's But actually payer. rate in years setting this what much rate we've increase increase using each better consistent slightly a another increase. very than there's October in proposed been received historically. to

So broadly trends. across different payers, our are our across rate of positive types service lines and we seeing increase

Great, you there? just the capture impacts through Can all CTC Thanks. volume day is and Does day patient us remind as follow-up. the a patient flow a revenue that metrics? there volume how and business corresponding revenue per the

good a have revenue per That's included day in our line It metric. through does that Andrew. that service question, metric, patient flow because all does not days

from same-facility for And business total. extent the the would revenue we about are in our revenue CTC our so rate growth it's usually, our per impact it to total different metric. day talking that And then growth,

same-facility quarter looking line last growth. with CTC are back the seeing particular years, at For general, revenue the that growth is in in this the we and several overall

trends revenue it, in that impact have or our an day per had CTC volume this either an And so not any But how had has positive particular quarter. quarters, visit have per revenue is impact day, a negative or per our either could but on not some it impact. significant on related

color. the for Thanks Great.

Thanks.

ahead. from question comes Chickering Deutsche Please next Pito with go Bank. Our

Hey, via taking Thanks good questions. Christopher, telephone. you to it's morning, for meet my guys. so good

You that think successful continue area Is grow. be an revenue talked We've demand Acadia digitization. behavioral that could telemedicine to about in you opportunities in? that for seen

question. think good I it's a Pito, Thanks,

I counseling company done so our and and has the and already today individual is the outpatient using sessions. programs pandemic, telehealth particularly successfully group quite think with throughout

used be able opportunity when it for locum replacement successfully I alternative to continues while don't just will certain to ultimately improving we I positions as we look as it to we our be leverage be technology coverage. partner benefit offerings, said, to need well. through whether for and continue look think that evolve there a any something our take continue innovation opportunity there will think instances to at for a care, have sense world a it health and use also would We But to we're to us it the think at. as That think outcomes to inpatient into virtual the potentially in for and opportunity of an makes will is market, to even

from And again. in the then follow-up of quarter question of to quarter CDC David revenues percent 'XX, first 'XX the of first question What on came CDC?

was it first XX% think I Pito, or around XX% for the quarter.

Okay.

have So just per growth you'd CTC revenue to patient million to relative to a from mathematically, It's it's involved? $XXX sort if about come of day CTC.

Yeah, a that's right. It's the about $XXX million for quarter.

Got it.

revenue XX, XX side? on overall versus side, on of the a inflationary help margin the standard grows you cost supplies offset gives segment also macro type Okay. is line tailwinds And labor more that then to profitable this CTC guess XX quantify to as just of more understand XX, on more cost even overall I [Indiscernible] the in cost growth? side, a the pressure. is CTC And that what versus

margin business. CTC facility to we overall the see our that similar same Well, is

their licensing, we're they and course, of in making operations census new they through Of but through time in don't aspects the of CTC exact period inpatient through investments goes go and other up the their their an do where up and build terms facility ramp a and of facilities business. go ramp process they the that

that's the and affects CTC market But market. lines, the that company we've the made for one growth, other service we business, that other businesses, manage margins will side reimbursement service also service mature volume facilities, another, is to seeing in don't as side, to and service that, We true cost. that one And And CTC on our like on for strong be so can lines. the seeing we're it and we're margin And in is growth, line. see our in it investments managing grow line. the the their are different. does business improved And just costs our our a us another inpatient across that depends offset our seeing on say that seeing we across margins help strong margin there, that but

focused they opportunities are costs. demand and the volume service managing and each capturing their lines, We have, on the that our of

intensive XX% also majority we looks of the In similar. that asked general, that see the our cost lines. and CTC staffing is service side have. about the mix it labor our related of that think say the costs and same I like It on that we expenses side. on The as does other on CTC we side operating CTC the inpatient you is the or staffing the operating is just

clarify, they to on do the mature a a facility, CTC mature same margins? verse have Just key facility

Well, not within facility service same it our has -- of lines. any margin the every

it averages look total, different, we yes, about margins we across a line but our So can for see talk when service similar service lines. in

Thanks Great. much, so guys.

Pito. Thanks,

Thank you.

John comes Inc. ahead. with question Our next Ransom Financial, from Raymond James Please go

other for outcomes guess that Hey, say good is This once patients paper-based of track impression relative discharged. medical records Christopher. to and data I providers the Acadia is morning. one don't are

a and the that past level, your next -- change will is purchase, for you from it couple the over years, think is be -- something payer you? something do of that might the this over you So focus

I Yes. John, Thank think one. good a you for question, the it's

talking numerous the been think and care are having the increases from superior outcomes, something end payers, that's looking for has change that David want rate in it's think over worked I come of that able payers having clearly the time. about and to to see day, earlier. I and we've they was At why quality

earlier for that technology happen. looking and that enable to to advanced are make continue identified going analytics further to also they upstream, solutions think even to think be I are and to that's patients going I require

catch on will think system. sector, provide So in well obviously, the of and for behavioral health missed ago, that use of some do the that the know, that's out which amount investment are out I up value as you there sector overdue, investment on meaningful create in a that years is effectively funding there now EHRs something to legislation but right the would significant

to we're with be And something want days focused that to contract the to going very in to on that that are that's think ahead. the providers I will showcasing payers the continue best continue outcomes.

follow-up would cycled But I a call agree external few relative especially area in through M&A very if kind peers has opportunity? aperture opportunity company an see to would done? we missing, lot don't the And of has if widen existing of to say what company beyond I'd And has my Do would anything what that M&A of And guess is the a the Great. see be you been that growth, I [Indiscernible] the facilities. impressive. you M&A. already your maybe of

a I more it's Yes, do to review would I I to would with want area clearly spend that have John, to say team front. work of been that our opportunity. date. I time that opportunity -- do thorough impressed with had of they entire an But very and have an not think the pipeline on our done I've

And being robust. our more in, out has and Keys come I much there looking pipeline, since that think is in criteria very opportunities framework. we proactive meet allocation capital disciplined are around our for our David

go. to will will that. updated we certainly I you as something but on we little a continue need And bit will time, so keep I And more that's do that

Sure. Thanks so much.

question next go with BMO from Borsch Our Capital Markets. Please Matthew ahead. comes

question. Thanks Benjamin morning. here. for Good in it's Matthew filling taking my Rossi Actually, for

length the of an stay to previous compared years, year-over-year increase and you Regarding in patient uptick of reported length stay. average in acuity

how reflection anticipate as and see you to stay you you of acuity Just the curious length cadence increase do then type if remainder And continuing looks goes on? a of year? saw on that for case quarter the year the the is of this the

January that our relative our there still the a of our impact lines. impacted length of a a for of services, it's within then a variant expect. within that, impact we acute to And range to stay service on was patient are Omicron the We quarter. that on patients. more One, of that have age state demographics seen on our specialty service a is the the In we of The metric. a mix from service longer line days the line, metric. And longer did acuity a our stay is we we've acuity, even seeing But and have, stay and service stayed impact service what programs disproportionate stable. within length on can of separate couple couple of impact But the you increase first factors which impact patients. that and length depend that the line our length of the mentioned in even of our of see admissions, that would little where RTCs, did we that January, attribute greater an consistent

some specialized a program we that have demographics of different higher and seen and services type more the so have acuity. our And a program. And of

that length greater certain seen mix treat of need added patients have of a a are to that longer programs programs We stay. some in have been and that those

service lines of increase mix of our service part the have the stay. that within been So length in

for impact see In rest Omicron I those variant. some the terms continue Certainly, year, may of of think of we like look of what trends. the to the the it will don't

in that's the don't that in may of While the have year. we going there length is still mix COVID stay markets, still to impact impact service our an out But remainder the it I certain have see in January. there think of on did

Great. follow-up. a I have And just then

lower end Your guidance of actually six [Indiscernible] guidance of the release. quarter's CTCs in is from those on the last times initial

if costs that's of standup higher just conditions curious labor? other Just to or maybe reflective such as due

in morning's of we -- talked that about be CTCs. range. at may the actually this We we end at No, still six least comments, higher

that updated are about to for looks but of pipeline still pipeline as strong at keep have it year, continue six. have We we talking on So what new we'll locations. new CTC like for the a a CTCs. strong least to everyone continue just And

that clarification. for thanks Great, Okay.

Thank you.

question James next comes go Barclays. Please Sarah Our ahead. of from

you. Thank

One of RN LPN out noticed on this mix staffing the versus is quarter the availability. we've divergences to coming due

Some being moving and in mix you labor what looks and how finding are highest work it is of categories, you their you that I'm see like of those end changing their Are goal at would shifting the wondering for more intense be, either companies shortages that to to license? guys. where from the progression

initiatives and for focus team task may care of has know certain the on employees do have. taking our had operations focused RNs focused types possible any providing on much we quarters as on and mix our been where in to as as We've leverage and away now several different I can place employees other patient and clinical letting clerical they duties

part So looking at for our initiative. been model our has of staffing

terms availability lines But a service market. the is and service where it have percentage see have In different of within of we're another, Specialty of we I nurses then we nursing percentage depend service different type each we other a a think higher high line. CTC, as within can RTC, where mix acute we has leveraging about our on LPNs. of But one focused lines, mentioned from on facilities. mix a nurse RNs of we have types potentially of Acute LPN higher our as very earlier, where and already different

their initiatives our look category we've know had so on a their a able mix and the to I at in to set depend And it market. focus already and be on can and have each work job is focus recruiting job already within and we all set retention across in facilities. skill skill categories But letting really place

like the this Executive would Chief closing concludes session. with for turn question-and-answer I Officer, to H. the remarks. And back any that, Hunter, to our Christopher over conference

you. Thank

our XX,XXX country, do with and to clinicians, committed provide to continue substance to before visiting employees and and facility dedicated leaders, health for issues. just meeting Acadia's care So acknowledge seeking coming we use end facilities additional patient who I in mental treatment for I of quality really those the want look more over across employees forward to the months. call, the

of main Acadia. one in organization reasons and joined are employees backbone that this the Our truly their I the strength is

build first-quarter have now With the momentum. our to an we on performance, opportunity strong

to all well-positioned operating with management the services continuum forward demand and and for our for Acadia. interest the that the board direction are team strategic facilities being greater model in working care. expansive as service network of with and for provide for of to stakeholders. outcomes proven look patients morning for deliver our your XXX with our meet we under care diversified Thank of us this and a We continues growing across a Acadia's value lines positive I pursue you to

As important the company, get I public look and person. opportunities meet our to know in I forward to a and is investors, it speak that to ahead vitally

us day, to a you additional hesitate Thank you. questions directly. If today, have And please contact have not do good everyone.

you for today's presentation. Thank The conference attending has concluded. now

now disconnect. You may