ATI Physical Therapy (ATIP) 8 Aug 232023 Q2 Earnings call transcript

Good afternoon, and welcome to ATI Physical Therapy's Second Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] Please note this event is being recorded.

On the call today is, Sharon Vitti, Chief Executive Officer; Chris Cox, Chief Operating Officer; Joseph Jordan, Chief Financial Officer; and Joanne Fong, Senior Vice President, Treasurer and Head of Investor Relations.

I will now turn the call over to Ms. Fong.

Josh. you, Thank and everyone, for us joining Good thank today. afternoon, you

are we'd To will you that based risks on like information current that assumptions available reflect cover, uncertainties be to and and certain statements our call remind expectations this to to quickly us. our various during statements forward-looking and beliefs, subject currently made

Descriptions the changes Although in the Securities revise with any to that undertake no and that after actual differ we occur obligation results believe of Factors be filings these forward-looking materially expectations are in of this cause Commission. could from section Exchange call. to the company's Risk factors statements reasonable, reflect some found we to the statements can these

be we on to measures non-GAAP non-GAAP In the as addition, posted can and discussing with non-GAAP on between GAAP filed please certain press measures be believe release found performance. SEC. of Details important reconciliation Web note that and in the evaluating site relationships most comparable ATI's measures these historical will financial the that earnings measures are company the financial in the

that, turn I'd like over call Sharon. with the And to to

Thank today, our quarter the we earnings everyone. welcome, second previewed you, our growing results, reported and performance. in and XXXX momentum Joanne, Earlier

So, and today, our our during behind we'll achievements this call strong XXXX operating share details the earnings guidance.

This this key our my planning This doesn't to sit to really So, to am care comes of luck. progress business. at to national here tenure, team, success. date recover are into in I entire organization the today, with the ATI. deliberate enablers our around with the very as privileged and that year-plus way proud musculoskeletal Myself, here ecosystem. lead our fantastic come I a the is delivery am to I paving

also it has goals very that's purpose. to go, where and to in deliver the bring the our refreshing culture, our leadership that business organization, focused on team together multiple focusing people, team, levels being on leadership our on needs skills the aligning the and but in So, putting at to a first on talent and

their of right And allow people, and their and top supporting technology, and lastly, empowering their process, our execute giving data with teams in practice license and tool, the that excel roles them excellence. them at success, to the

we've the up recovering business, next long growth. a So, come next. our what we're way And transformation and is our looking in chapter picking at and heads and

and bottom While top FTEs transformation unlock operational our our sure, clinical hiring to line growth and will advance for reutilizing growth. excellence

to Nearly targets. members are turning towards second year-over-year. continue our sequentially, team has operational continues to and team So, metrics reach key are new advance the many there for specifics improving successes. quarter, The to and Frontline excellence. the all momentum, of performance

and first-half goals our XXXX, track record confidence that deliver on in Our we'll financial to gives continue me beyond.

Ps the So, heard three productivity. me provider you've provider our about our practice; of our pipeline, and our talk base,

focus to business. blocks, continue these on in disciplined fundamental We execution in our driving building profitability growth of

medicine, let's for programs therapy, prevention So, with in worksite remained XXXX. sports injury for pipeline, start PT, demand strong and

Our therapy pre-COVID levels. exceeded referral have volumes

growing stride. are to us us, talent and hit and our hiring tactics FTEs recruiting Combination our retain quarter-over-quarter acquisition front, On provider grow their for allowing the has as retention clinical people powerful very and base. new been of team

productivity. have we Lastly,

productivity Our levels have also steadily quarter-over-quarter. grown

to team's meaningful making. our valuable other see operational really business. improvements operational and our clinical more provide to levels, with our deliver more fewer rewarding us patients FTEs. actions Second the will allowing Chris details highest on our It's every improvements metrics, for purposeful per day, and to outstanding since quarter the provide pre-COVID marked day, visits the colleagues, activities, transformation we're patients, care

economics. a take at Let's look unit

metrics are improving key also Our here.

outcomes, of high-quality resulting only are in increasingly positive patient reimbursements. Our higher recognizing favorably. trending but therapy is not value visit Payers stabilized, the rate and per physical

Now, even for still rate beyond issues alternatives increases, available. lower-cost pathway with therapy remains a musculoskeletal modest the treatment physical

more reimbursement move starting payers we're flexible structures some for see terms. exciting, to Equally to

to So, to access This payer-members. traditionally for example partnering for ensuring a rates beneficial and population underserved is to our an on while sense the this our payer with proud make to we're expand clinics, communities, our front, be practice. to the a

So, into we've therapy operational strong financial medicine with and improved had all services, that's achievements market sports solid combined demand for and performance. translating

We've adjusted margins. revenue, EBITDA, profit sequential and and seen year-over-year higher

in will detail XXXX pandemic quarter our financials revenue, walk the the Second of highest marked Joe and through start in ATI's since guidance. early more the XXXX.

value deliver Let shareholders. me patients, generate employees, growth, be long-term communities, clear, we are and in and to our our sustainable plans our for being deliberate

our As looking mentioned be model. partnerships as form leader strategic position on previous national will leveraging a single-branded through care calls, to that standardized that ATI we

you most a have of announced to our partnership digital read, elevate capabilities. many recently, So, telehealth may we

Now patients what our they hybrid meet this us create for to where does, care through this options and patients model. allows are a

treatment therapy that care. virtual plan hands-on Our physical to patients personalized a providers integrates with work with develop

to outcomes potential. a grateful are difference each our Every very challenge ATI teams. laser-focused making here sit patient's impactful are environment, our day, the encouraging exceed to themselves expectations our to ATI on for our communities, patient providing to bring friendly a local by health. full quality improve and in teams realize in with life; continue highest They to way best care, to I the purpose incredible the of

talk Now, clinic to Chris I about call the to will over turn operations.

you, year, opportunities strong I Thank by am operational remaining energized the Sharon. the thrilled and first-half this simultaneously progress the ahead. of in about

elevating central for outcomes health enhancing teams want I services for their execute leaders, operations to teams, and and and care with patients. our our As on health workflows teams passion all focus and of to optimize continues continued our thank clinicians, team field the experience. our to goal and patient processes, continue our field capacity the improving central the of and

and touch and three burdens on in finally, our our to revenue our second, want from first, themes; administrative performance I progress in removing Today, X-wall execution; cycle. clinics; improvements

levels. exceeds productivity X.X rate of at quarter quarter, second that declined turnover during the the clinical day labor was X-wall our at FTE. high per performance, was Also visits to in last to relates annualized it clinician an X.X is ATI's As which In This ATI quarter. of clinic our per par pre-COVID culture, environment, of to proposition tailor labor this level with XX%, speaks our operations tight result and unique direct on value efforts employee of the to and improve to is retention person. this each

Ultimately, essential success to is growth provider the business. of our continued

continue be compared retention that to continues FTE in market, there and efforts and labor advance recruitment. prioritizing we clinical While an last the PT imbalance to will quarter, increased

and grant employees pandemic work engagement give pause communities to in back serve. to The once in activities have fulfilling opened adults for started in live, they their foundation of patients to employee community with One There recently and meaningful re-launched. and children most the Foundation, XXXX with example and which we which to funding lead community impairments the is was a our way ATI ATI strong the lives. provide impact again applications physical so was can temporary a they and as

on exciting can social front. media this for You on and Foundation developments follow updates the

the underway I Our in that clinics with helped some reducing to and leveraging second administrative tools. we call, I have retention around our theme, support has last burdens performance In activities about the productivity mentioned. of talked technology X-wall and

achieving center scheduling referral with are on we our efficiencies patient intake, centralized initiatives, customer management, greater call focus front-end, access. the and and On higher satisfaction

work. are all out and We way already providers this by XXX are goal been markets centralized able the more care. the spend about top focusing And This across we to license, it operating in always clinics. transformation XX% support model evidence-based at high quality that patients has our closer their platform realizing getting supported rolling on plus seeing and time modernized of of to and our intake delivering through the are through we're those

patient our tools employee to and on clinics and this now efforts the in is and distractions from a will to Phase a satisfaction effort to centralized the ability will rise. continues and end additional rollout more, continue the X. predictable have reduce expect by intake in rhythm with the going what's be roadmap fewer clinic, We provide XXXX our us self-service that completed We digital to enhanced into only administrative value operating that of duties focus unlock capabilities, year patients administrative

Finally, collection our to yet XX another our a call, talked to in record the performance. drive single decision days we function second days leading us best-in-class the allow to both cycle revenue of I vendor quarter. This collection efforts. On with work last more effort automation to rates. outstanding made reduce sales transformation and made low relationships RCM about partner during and consolidate the to our strides from management improved costs quarter. again since employ in XX down larger a move We've days, our last more will quarter, In to closely

made technology internally. debt bad in reduction enhancements a seen also that have expense and by process have we driven We

to As is field drive our and I've processes better discussed, our my innovation and teams. priority clinic the support to of systems

work While progress we forward to building made thus on still we providing our to continue as have and we've the I'm by momentum. do, far I encouraged updates look

the Now I'd over Joe to turn discuss to like to financials. call

call and the Thank you, joining to today. everyone for Chris, thanks

I'll also review guidance. our financial I'll As our Chris cover and said, XXXX quarter second XXXX results

the financial start Let's with results.

service quarter over Our a primarily $XX increasing prior second million, net patient other year-over-year, is down million of agreement to X.X% year-over-year of year with second $XXX which $XXX And the revenue which in to is increase revenue. X.X% million. net management higher increased revenue was breaks the revenue that quarter, due $XXX which million of X.X%

clinic per increase company's per from first from was the a This contributor the was of to associated increase visit visit day largest of XX.X the gross margin. improved year. prior increase capacity quarter-over-quarter year-over-year and Visits day XX day the in fixed is clinic quarter the quarter XX.X which X.X is XXXX per in the utilization during in second per a quarter cost the X.X leverage and

visit X.X% XXXX a in of X.X% sequential quarter $XXX.XX. the $XXX.XX. was year-over-year and increase during per quarter the of That's from from a first increase Rate $XXX.XX

well increase primarily discussed, the sequential contract Chris favorable the result mix. and is increase year-over-year service negotiations favorable was as contract of the to due negotiations the same as As

is quarter quarter year, year-over-year of support costs inflation. million in frontline increases primarily which patient million, from and members XXXX and of QX enabled and the our in staff, for XXXX $XX wage in that's to time X.X% increased on three incentives care, things, to due clinicians -- second prior increase Salaries of $XX the was related first which a spend more our

quarter were Now, visit the $XX.XX. first related X.X% per PT visit during from quarter sequentially in $XX.XX and X.X% costs increased cost increases $XX.XX, which The from in year-over-year X.X upset due salaries support primarily to the labor wage partially and previously X.X per I was and productivity mentioned, staff were clinical and higher per improved FT they by as day visits year-over-year. and quarter-over-quarter the increased that inflation per

on costs and second labor, was same contract decreased were quarter was consistent $XX a which the in clinic and in from year. which the the million supplies, basis quarter, per $XX,XXX, quarter-over-quarter year. from $XX,XXX clinic quarter X.X% prior of X.X% second prior $XX,XXX increased Rent other the approximately in the first with year-over-year Those

sequential primarily spend. first on was that The from decrease contractors QX previously partially we When driven leadership was it by contractors, the annual at event and spending national mostly the quarter looking held increase, offset higher due that in to spend. contractor disclosed, the was year-over-year by higher

doubtful of $X the in PT accounts $X for or prior year, X.X% improvement million over an provision is of Our revenue, X.X% which was PT quarter was the revenue. which during million

mentioned, quarter the Chris driving and of improvements in the company's AR of on resulting The in within improvements result was performance the improvement second focus the revenue management, cycle continued in which collections. XXXX

quarter in during SG&A quarter. by QX TSA is associated lower revenue year, It's year by quarter by of with million, $XX fees. $XX prior the the closing year-over-year it's previously offset partially settlement mentioned is higher due in transaction from and transaction and excluding million million, charges impairment XXXX the Operating $XX as or associated to a loss prior earnings higher driven increase higher which this the consistent which G&A costs primarily XX% with costs. second offset earlier legal were was the was higher

higher interest increase is use quarter in as second $XX from of the driven XXXX, to compared rates by and the was during the well as interest revolving primarily expense the quarter million $XX of million credit Interest facility. the

in million during charges. quarter and the million loss $XX the of million expense the prior $XX prior the $XXX,XXX compared of year, to prior million tax impairment compared Income was loss tax $XXX including second in was year, to the net in $XXX net with quarter income QX year benefit of

collections in Adjusted the EBITDA increased that, improved the primarily earlier. about million EBITDA prior to revenue due X.X% $X X.X% during and I from the million, along which talked in quarter was higher the associated impact well or come from the year that was year-over-year over increase with was $X as earnings that margin, adjusted margin, as a and that

was used activities used to million million breaks it $XX in year-to-date financing investing $XX used million $XX and activities. million $X in financing sorry XXXX used fund Cash in down and million million as -- activities used $XX in operations, used and $XX

It's includes on important it activities, $XX to note million that line within of the financing revolving credit. repayment

as million, and equivalents and $XX approximately Our cash of $XX cash $XX liquidity June of revolver XXXX of consists available million was XX, million. and capacity of that

In addition, draw lien certain agreement through $XX in access outlined the limitations. company term funds the is second may notes delayed loan, of additional which subject million purchase the to

X% to of over we million currently to to to full-year the $XXX revenue Looking XXXX, the XXXX. ahead million, in which equates X% expect range a $XXX growth be to

year pipeline headcount, focus growing remainder in of productivity, our grow also about year. will of we which and Sharon underpin the we've the the talked our outlook which and have a Now sustained strong of visit volumes, clinical had for terms first-half on

We're with reaching optimism balancing capacity across utilization effort. the will our be multi-year our a recognition full fleet clinic that

a For increase resulting a rest would well full-year the compared by of is under that included And the we're down this a our physician the approximately general The result and fee schedule rate the payer negotiations Medicare reduction XXXX, the reduction talked it And Chris XXXX. of from so for for reminder, reduction, rate X% half of although as as revenue modeling XXXX, the contemplates approximately program. excellent ATI X% offset of change, payments increase approximately of rates, is some an rating, mix. in Medicare bonus of X%. about that partially to Sharon offsets that which earlier, MIPS to that take as rate

X% range we're making. X% million, adjusted of margin, $XX expect profit which XXXX to really that solid million to in EBITDA, approximately reflects be the the and we For to $XX represents progress

as FTE improvements adjusted we're operations, while the to ramp execute XXXX as clinical step muted due that pleased plans optimize operational and fixed better our and growth EBITDA to Now, solid with the to and up, being direction. timeframe profitability, clinic further expect I multiyear with made, the to continues remains to in costs our our enhance leverage mentioned, we've we XXXX the business against right a

local on fleet and for potential sense. of where But, lease six select the for and a focused continuously and XXXX. in there underperforming of quarter. possible monitoring initiatives, four clinics the and we higher-growth those limited on anticipate quarter, clinics net markets and to with will clinic we'd our our optimization balance, demand, it attractive Turning footprint Overall, maximizing closed we savings by during makes -- new clinics XXXX, expansion clinics pursuing where is a XX markets performance opportunities. be further We're during where anticipate opportunities. clinic opened approximately full-year the we We're locations new in number clinics expanding in reduction

like call to back to the now Sharon. over turn I'd

Thank you, Joe.

XXXX is is our team multiple patients we're This execute sustainable positioning working, place QX. the With now helping goals, have of strategy to I their and keeping continuing for progress. health beyond. second-half of performance updated results various key sequential long-term growth. our more [technical and the delivered to our forward business and in aligned excited whole in each we're while year, second reached right our demonstrate you on the difficulty] improvement quarters we indicators, teams goals on excellence. quarter, look we're for in with trends Solid those are quarter We've

you today. joining us Thank for

Q&A. the We will open for line now

Your Brian Tanquilut from of question Jefferies. with the line Instructions] comes [Operator first

open. is Your line

you. thank afternoon, Good

for on You've Taji, got Brian.

be question guidance. have your my to So, around first would

any [$XXX So, revenue, I you have embedded those $XX you in $XX then numbers? million] visits, in other can year. $XXX from assumptions you the million are we ramp ramp then improvements to in And talk a gives back-half in that pieces bump. suggesting million expecting moving in to also all and that (ph) or know what the just on confidence the the in upon that included and expecting if Maybe X% through touched million EBITDA, the guidance? rate elements also that so of

to the Hey, that, for do Taji, question. it's Joe. thanks Happy

all-time in So, our two of think as those the or end first-half talked both of Sharon seen visits. the key XXXX. there clinicians as of about the near about, We've some are number productivity clinicians well think referrals. up all-time hitting I as referrals in highs ramp, and driving about of steady to at and our of highs We've the most other business, productivity have, KPIs important the we

the build of we've we the forecast for assuming all continuation we're productivity year. XXXX, a seen As full-year generally the

clinicians what reason been slow thoughtful based on there in to then, seen or assume the we enable we've to down. a we steady no provided plus in clinical seen the think the productivity in them of And how types support first-half year. July, what with on growth would to is the to that We've we've that consistent first-half hit FTE those levels. And

that, during year. so did is rate, have only happen about the we that. And revenue think of Beyond in had the SG&A, within upon, did maybe first-half mention thing then the other the transaction touch the we to script, I you the

(ph) be SG&A steady-state to you] [if is out [pro-forma'd] think relatively (ph) adjusted assumed the I -- transaction.

performance would is of a other improvement expense, the there. we've little be our bad but debt think factor, secondary good I kind Joe, -- And a Yes. incremental in which seen

as year. the believe And we've Taji, built the as first-half far I momentum Yes. goes, throughout then confidence of

the a to there that is significant. pretty QX; relative You QX results performance was can improvement see

see the business of is business, a about of a that talked of and referral but component stuff Sharon as seasonality we've to component about. some a of heading is, the has Some the good result to continued feel There momentum, it. obviously, where seasonality

in You back is us quarter, good put attrition can low combination feel second about our where in out. trends those going are and really the that of earnings see the makes the a we guidance release, part of the

Yes, risks rest and opportunities, we and our the when we year, they're balanced. as of look the we for the [indiscernible] created looked at very at,

we're are don't to we get So, ourselves. I continuing ahead make also think pushing, but we of sure

one And you at the know favorable growth Joe about rate, more talked helpful, how of some to had Sharon. follow-up stronger rate due just really then that I is and That's contracting. looking

do contracting there as a to in maybe well all way run point your then structure agreements, much how of through those smaller of of your for payers? gauge year? to securing penetration I And your you value-based have is incentive? much on curious include talk I'm trying like of more can you bumps how more payer the Just do guess percentage what just terms the arrangements, value-based across a agreements the and from

payer anniversary Taji, we is stuff It on the sign because it's the the is. contract, So, hard, variable. so what when depends

it's and is ongoing payers, would our the say the So, we how just of kind out throughout and an I put how half touched year we've the campaign it rolls year. probably out. of

anything we'll -- that payers can't be speaking of anniversary will give possibly I increase -- So, concrete percentage the rate. around the you to in of around

venturing to care business. benefits and or more VBC, arrangements, the crate great the space outcomes. of] small care, and get our of are on that into current of our quality that very [the is capitalize or We a our percentage also experience value-based to certainly On (ph)

but that in MIPS examples probably of is upside, our the it's kind performance arrangement. of of an think our one I only best

to payer using learning able there I look think in, offering be don't than is and that this we're to as a at the engaged market. other at to around for there's So, situations pilots broader VBC, share anything those point

you. thank Great,

Thank you.

Barrington. the next line [Operator Mike of from Our Petusky with Instructions] question comes

Your line is open.

the thanks questions. guys, for Hey,

terms is your additional sort in flow expectations and or there the of year? Joe, guide the So, talk of anything for rest cash for of from ops any about CapEx

activities pretty or in somewhere the we think So, I to cash expect I cash about. to And usage, talked cash investing the just didn't CapEx, from which first-half. would second-half would you guide I probably similar be single-digit the flow, ops include flow the say overall could CapEx mid but

the in What about the expectation second-half? for cash interest

back Cash, dependent things the June. it be but being effect QX, piece The even to Mike, rate. in it's transaction really environment, of I interest took rate signed would on in obviously took interest suspect the April, it and to, I though QX, all effect similar equal, would believe, it on interest was

Use QX So, agreement. year. new most as the proxy of of a second-half the the debt reflects for that

guys you Okay, suspect all as any facilities going them assessing Sharon, guys out right. in but this of And ranking sort sense. Did update are assessment? trying in can quarter where figure just far as, about you talked and miss or did to in and Thanks. you buckets then, to and facilities I that make sell that what's or I is have ongoing, the you

you to list, ongoing. our are not came But right, QX. done we at basis quarterly take we is sell close clinics move a information, watch a the we Mike, our that think look look year, interestingly, little does So, any XXX% really out as and things. work the last a with when And And did is this on few list in a I we've bit. and

really closed a Number looking we So, year. we're have as mentioned, course few at Joe of two, we maximize and we'll one, over do our some how closing be that we, more clinics, the the have footprint.

[indiscernible]. where to the so an So, to not workforce, it's capacity are opportunity held more the opportunities than there's look have we there the at by of demand renovations, at clinic, up some expansions, look

be absolutely working where that work for [pockets] the And kind we And at those strategic little right the (ph) that's that we're a third bit in resources will of So, to doing in really something look be grow and to now, different then demand is, are will have XXXX. current say growth. it's We're at we we than how the looking do looking able our just before. we're And be we have the on a really footprint. a market. maximize of I'd where

Okay.

six of likelihood sense, sounds ago, bit you I you're this, that am so was almost guys around divesting idea at speak of clinics. months of little numbers So, It three, urgency the a have the like that looking maybe that much or backed or to that? with actively can I Thanks. that into clinics you still more potentially divesting potentially meaningful refinancing, off maybe or just reading just too a had there

Sorry, break did up? I

was No, to quickly the I get trying numbers you. for

you're to those The have at So, of I was and group definitely There in clinics I the can't the slowed that close closed there. another breaking up, divested list. first-half have profitability. -- the clinics we our And don't we -- that that still think But of changed we I getting -- changes as We haven't our little list] year, on down. XX some four not because looking is some would divesting, ended up would even -- yes, we marketplace. (ph) in discipline were underperforming and I of there's say, a move to of that Things were should allow say clinics. [watch doing bit. key start operating metrics and also

I say getting the hasn't data some that's but So, to clinics, be allows move clinic. the to forward have our attention clinics I to have whole to either close profitability to the to them that clinics, would per is us goal performance from and level be keep us conclusions not mean caused that the or changed, some but closing continue

improve is they these performance little the of it be. then And (ph) a of in to [dynamicism] need helping some we there's get overall, marketplace. as clinics I to think a our where So, also combination

talent. of changed also strategies our around We've referrals and around some our

of attention either enough if will, so, there many times, to having to staffing haven't you clinics. be relates that not referrals that And right our or the clinics when are around it the talent, some having performed,

I which (ph), the strategies, so, months, in [peanut off. say, in turn six of our last very paid with strategy in really we've some instead would on have And changes specific focused butter] of the over marketplace

all Okay, right.

if more I'll [indiscernible]. the question. more, It queue, so a one ton one in of not there's sounds on people that's okay ask So, like

Go for it.

what these we how the of And given how number take don't the So, understand sort the look, type you seeing of demand, I said, care guys to staffed thought lot the necessarily X,XXX, the a you clinical at and end while around need, think last in take well, you somewhere demand guess quarter, like you multiyear, sub-X,XXX in we are guys get clinical the I long, three-year a about is I would question, And to "Hey, unemployment for of you all that fully like I what that have up. Have of think you that goal of of relative it terms a things you the June. consider guys asked it would low place staff or rate, do to but something Thanks. may workforce guys of that item? all feels all about particular we're have have." you

That's a Mike. question, great

to even does a One I said, given the might it. think we And right, those continued ways I push ATI demand. up are about what there's and two numbers the need? you're we is, them think little bit think

our our recreated TA, fully and the at Talent was great speed our team, to of end So, confidence QX. up really Acquisition or team and I action in have in

think so recruits. And starting creating and moving traction, bigger to regards a to think new for be to we're we're see staff that keep the issue, our going value both great retaining to I I proposition in able so

the front, I this sorry, is mean, issue. yes, there on may but or cycle the more until unemployment, have PT do start, done. And students and and a PT the high that I think tell I see, unemployment, into we the got top you, kind be low of level big, But breaking not macro I funnel, of we at looking getting the up other opening sectors start programs, to like

to going it's take little bit. think I a

but level macro to going are trends need think continue be the to So, to going think the do, I ATI they I to job is also do headwinds.

I'd Yes, sort three mean, year I assume it's least at of? a

other situations. isn't not the it it's to I started, before year But going confident my, I this and year. loosen many I'd when And year. think a was end like, hard open, to going is I to in to break say another be it'll the Yes, of going like be be 'XX give first up

right. you all so Fair Appreciate much guys. Thank enough. Yes, it.

Thanks Mike.

Your the Company. with next of question comes from Benchmark The Sutherland Bill line

line Your is open.

as to I you want one of and issue everybody. get that talk to as remaining the where you Can hello were. I you percent too. The think are contractors, of Yes, and that about just that questions going about was about at I workforce Thanks set labor level the talk that the to? part of they thinking was your

our Yes, the be roughly the X% zero, little at like bit. at like short right point living get expensive ATI Joe. it'll workforce because down. be. much the with it be labor contractors I they while, will overall we'd I X%, contractors the ATI, never or won't, It get demand could Bill for a a to in end bring we if of but obviously term, given at for contractors run, full-time for QX, in think We'd that's of The PTs have I PTAs. therapy than think the the where XXX workforce But down so X% to to of just some us are to But long dynamics. think more we'll with it's our contractors now, the

Marcus selectively just, Yes, know recruits. and for they're I would we selectively. them Joe, normally, we're but we're more and are than deserts using using that using them we're

foreseeable also to that them probably the Joe's is that, need for into that comment fact playing the going future. So, we're again, to

something the roadshow, of or a you it you affiliation Duke. can couple years ago, that programs, I can, it tool of you or you was I'm the a still up? maybe have had with remembering think that couple one during do Is

Yes, question, Bill. great

kind relations, during wayside the multichannel So, you with organization, fell excited but university as have approach, by about our if a any I of will, doing. and COVID I'm we're we think what really

side it On to bit little other of bear it, takes the it fruit. a for

would start having both other candidates, of top when to in, the going. would a and in graduate. diversity focusing you're to both precepting, bit them little funnel, the relationships. say the is ability And the of where I then differently and usual, they on prepare be relates everything right, so, to with of the the How the in of the do so that universities, alumni especially number as working successful I the we're students folks bringing it coming exam we from say thing But

that comprehensive is more in for so, than just folks their approach bringing clinicals. And a

I doing think partnership. And And a ATI's to so go. only I one we don't that's have this. I the a think think the it's way it's common, And

transition I folks I the with into university universities a whole would the modernize way how and we to PT being therapists then partnership in successful the say really, starts, marketplace. piece those the think it's

in wanted show Got Will mostly factor productivity it. And I the this to overhead burden, will that was reduction or ask well? one at up see we particularly PT centralized as intake. there last on clinic the of administrative a is

see You'll productivity. it mostly in the

might have of you where model supporting and we're some but were about or model If a front centralized, think markets type six hub that some from, individual model, they were five one spoke the clinics. transitioning already was desk it others running

largely the for So, there's clinics support we that. and be the capabilities moving out, the to call cover the when to for be and centralized are capacity able redundancy example, gives folks to the it have us to when resignation, able there's model, into a those a

helps it capture that indicators is The the to a in. that other some seeing are referrals of XXX% thing us does, coming leading of we're it just

and and If and you rings answers, to administrative that's for no patients the the going phone have, been no a clinic happen. all where seeing person are clinicians example, has one out the longer

aid it phone we that for a makes like our better calls finally, then really out our clinics in that And takes it clinicians. the things of also will environment retention, answering because do and expect

many then that standardized more, service Yes, it's handling all data experience our experience, levels first, kind times, their in of their relates is and ATI time interacting cases, and call the expect to it's, on they as initial can patient it and first with have call.

So, that's piece, important piece. qualitative a certainly I think other, but an that

everybody. Thanks it. Appreciate color. good That's Great.

Bill. Thanks,

questions to this time. Vitti There no the for I'll further at closing turn Sharon call remarks. CEO, back are

for and the back we together results That everyone of you. joining want to sharing look is to call. the I and us on end QX. So forward in thank today Thank our coming QX

conference joining. for This call. concludes you Thank today's

now disconnect. You may