CYH - Earnings call transcript Q4 2019 | Community Health Systems, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Community Health Systems Fourth Quarter and Year-End 2019 Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

to conference like speaker to now Mr. today, would hand over the your I President Relations. of Vice Comeaux, Ross Investor Thank you. Please go ahead.

Ross Comeaux

XXXX Thank you, Systems' call. year-end Health to welcome conference Mike. Good fourth morning, quarter and Community and

call, we conference facts. statements These or risk This contain described that number I'd reports a unknown Before known in not may the in like read on solely disclosure call headings including the report statements of as furnished forward-looking are filed to other current are relate to subject the forward-looking to Exchange risks certain do statements statement. Form following such all historical begin Securities and factors or and annual our and which XX-K Commission. with to

from in update afternoon, forward-looking and those expressed and consequence, calculations with a statements. these press As in EPS. release of today's adjusted intend financial to We our significantly statements do any not of issued a Yesterday forward-looking statements actual results we differ adjusted and discussion. any definitions EBITDA may

those the a listening website. of been have broadcast to to posted live you slide presentation call supplemental conference this For of our

accrual; in recording legal related related notes; charges; effects related gain fair will HMA allowance. CVR; employee cases of loss on We those settlement in this exclude: during call. from the from and for to and calculations, adjustments; government covered of businesses; and gains valuation expenses settlements expenses sale restructuring allowances liability to the to to and for we costs; as professional also expenses change in discuss termination early settlement related slides other legal All extinguishment well expense divestitures; debt; will to losses impairment promissory earnings valuation as change refer claims estimate or or change value other from incurred tax expenses tax benefits related and legal expenses and by

Executive Chairman Wayne With call the over Mr. to Chief that said, and I'd like Officer. Smith, to turn

Wayne Smith

Hingtgen, to welcome Clinical Vice I year-end gave our With of Operating the and conference call. morning Lynn and President Chief President on Operations Good Ross. and Executive us Officer; you XXXX Medical and Kevin Chief Tim Financial Simon, Officer. and and Officer, fourth you, Hammons, Thank President quarter Chief is Dr. promotion; today a just call

We're Kevin today. is the as the Assistant CHS Treasurer. role earnings first excited pleased and to to a recently most Kevin have now, the welcome in we're veteran and to call him company, all of after XX-year CFO CFO serving

long-term that Community about XXXX, optimism good our a to designed and with Systems. and portfolio. expecting pleased We drive we our results stronger positive began as Health finish strong to the we've see are of advanced was growth, from year been We're with strategic future. especially enter XXXX for momentum and of initiatives a our we XXXX number to kinds

performance, fourth a of the a are volume performance. of good highlighting. there at items continuation Looking number worth quarter We saw

On divestitures. growth X.X%. the year top number prior was X% million, to EBITDA a despite the line increased same-store which revenue $XXX was of compared Adjusted net

of margin fourth marks of points highest we've margin the the the basis since EBITDA improved adjusted EBITDA Adjusted And XXXX. XX.X%, margin year-over-year. quarter XXX achieved XX.X%

During across the categories expense throughout expected XXXX. other progress quarter, most expense with we SWB supplies made and savings operating

improving drove on team and significant full key management leadership back executive the In As we look increasing efficiencies connected multiple focused of competitive year strategic at excellence, areas and initiatives XXXX, areas. our company's included: that quality, the imperatives, these imperatives position. the are performance. and company producing each across of safety XXXX, care growth hospital advancing progress Major financial teams operational under one, and

with our population remaining which with has care our portfolio potential. of higher over completion the XX,XXX group improved of more are the a systems Today, of Secondly, in growth or of XX% making progress people. in program, markets company's toward divestiture health hospitals

Building has and which to continuum a debt continuing inpatient/outpatient – maturities, execute extending runway effectively care to significant care deliver plans. patient provided health the our across services strategic growth

With a performance. a or the results this in XXXX, The reflected our year. XXXX should accomplishments burden are debt distraction not in be made

a full a net growth were In same-store was for On year the XXXX. performance was which X.X% XXXX. admissions year adjusted strong basis, were strongest up year strongest performance same-store up since company's X.X%, which X.X%, was XXXX, Full it revenue since company. the and our admissions same-store was

or of we're still the all throughout the executed, organization in As of initiatives the we implementing about future. process are think about excited we've the

growth our in cash EBITDA this XXXX deliver year flow and We our to which trends leverage expect beyond lower performance. continue and incremental should to positive improve and

part mentioned, I Today, high is reliability all to has of I on safety want metric quality strategic of the progress serious that has track imperatives. company been imperative. monitoring our highlight deliver As One our work safe XXXX patient the safety we since to as quality made event been care. which our and which monitoring considerable we've rate organizational –

have quarter seen improvement measurement third significant We in this a through XXXX.

have making to We and areas of the rate in other by our sustained progress have we safety event over other reduction additional advance provide details about including accomplishments in minute, improvements and XX% will strategic In our focus reduced since a areas. Tim XX% imperatives. CMS serious work a XXXX. We're

proceeds transaction billion times of completed times to for this XX at the our stronger XX in the revenue portfolio. early as $X.X And net reshaped our of mentioned XXXX, more we approximately end accounting – systems earlier, of results. resources and care Through EBITDA. part divestitures I we're approximately billion of as health multiples fourth markets, divestitures, of plan, quarter and good have shift to seeing gross effectively to the focus Turning we as generating we $X these

plan this additional complete approximately divestiture generating to the of year million expect the middle We by gross proceeds. of $XXX

than more say now and least. challenge nine to a divestitures We complex task behind us, formidable the have

hospitals of the of we disruption process separating As of our as minimize attention company divesting much require to our of teams. out the work the assets

has to helped approach ongoing more successful. Our activity, make program this prioritizing managing to divestiture operations while

As term. a to full comes that our be can close placed attention markets now on divestiture organization remain with activity long

revenues full provide timing are our anticipated includes to guidance adjusted be XXXX net billion $X.XX divestiture operating As in more the $XX.X to $X.X to year is Kevin billion. EBITDA details on expected we will be January, Adjusted call. anticipated to later billion for billion. $XX.X disclosed this in

In positive improvements with and ability and XXXX to our in summary, trends. continue momentum we're pleased our established in the these confident

improvement We each expect to and continue our growth to in our strategic XXXX improve and margin make same-store to advance control initiatives energy as progress we cost strategic channel of execute program EBITDA. our imperatives into steady

to turn over Tim. to Now, I'd like the program

Tim Hingtgen

year we are we delivering on and incremental Wayne. strong growth going Overall, finished focused you, forward. Thank the

initiatives. XXXX, And the at to delivering share expect Looking continued gains our our market on volume company on execute is strategic across continue expansion to execution we margin programs. and focused through growth

stable well reimbursement share Also, priorities. that remains few the as fourth growth. highlights from quarter we latest a generally on deliver worth which enter some positions I company the environment the On through and the noting future today's strategic call, to XXXX, of it's will walk our

visits ER don't we admissions of increased in nature First quarter. low-acuity experienced in terms physician that flu or EBITDA. this we the visits. flu, that the lower-acuity however, of care year-over-year clinic Overall, yielded a inpatient late and ramp-up this year's of urgent to volume believe was Due it flu, the flu-related impacted

clinical net admissions due enhanced increased Surgeries driven side, X.X% On freestanding improved and were while our adjusted X% transfer-center investments and grew volume up outreach programs the in both capital lines. physician revenue by fourth same-store admissions X.X%. Same-store model targeted continues the ER quarter X.X%. be growth. quarter. X.X% This to service and growth visits overall and to increased ED EMS

the Wayne terms just best full volume net revenue same-store mentioned, fourth XXXX and net a as decade. performance were with pleased During and in we we experienced quarter And year volume same-store performance. in roughly revenue of our our

have we evident growth in investments. energy and Volume is focused our areas where

in delivered orthopedics, we neuro and other as as During trauma XXXX, well service cardiology, volumes lines. strong

We have two portfolio ago. today did than a stronger years we

our were over the hospitals markets of of recast end fourth presentation, past we our at those supplemental the of performance X the slide the years. page that quarter same-store show core two and or On

In adjusted ER for net we same-store performance improved and admissions, volume surgery visits. and stronger XXXX, revenue delivered growth admissions,

assets, development on our investments, executions. targeted health divesting have strengthening service core care through been have underperforming and capital physician focused solid we line operational as as recruitment, we While been strategic extremely system driving generally well

seeing program, continued progress care accountable initiatives, across are our base provider and which outpatient We transfer investments include our developments. the operating or inpatient ACOs, access point expansion, organizations

growth. variety opportunities on we of on continued you drive provide I'd initiative, to progress their Moving of second update with into full like completed Today which year just a our to a ACO remain operation. XXXX, focused

to and quality trend hospital our with increased a from After physicians ACO effective we align been around delivery. innovation XXXX. employed very enabling have independent continued ACOs XXXX, and that Our participation XXXX to driving and better care strategy, into

on Fee-for-Service XX,XXX that a strong renewal with this value and more can our lines, than focus achieved approximately physicians new our we're ACOs. outcomes straight have rate We a a added for XXX the well. we independent engaged for in Through we physicians of as care strong And XX% shared year second physicians primary initiative, Medicare demonstrating patients. independent partner be to

physician initiative. better with operational Our market valuable a hiring new up service continues insights into in-house and demonstrated transfer line This that program into our volume service and operations development key remains provide demand. visibility to opportunities line

serving center service transfer XX expect hospitals supporting with program of XX into the in we planned our XXXX, with XXXX, now transfer hospitals. end rollout center XX expanded additional During of our complete By CHS markets. CHS we the hospitals the XX% approximately to

development. care foundation targeted to a strategy locations with right multiyear company. in the strategic process, for and Turning we our their of This care strong now growth ensuring has a have the the resources we are right to Through support driver primary primary planning providers practices. been key

employed XX past XXXX. with care now have locations. and good we XXX X,XXX primary years Today the and providers planned a pipeline walk-in two expanded primary and approximately clinics primary over We've care care have care urgent for

we four clear. investment year. well for believe saw care future been more growth which the million XX% bodes primary was than this moving volume visits, have XXXX a the over benefits increase forward. prior We The In

cardiac of capital come capacity across Pennsylvania. Wilkes-Barre GI well Knoxville in Cedar investments In Birmingham deployed and Palmer we and strong as bed Victoria had additions expansions expenditures, Tennessee; potential. online surgical new good and as Park Texas our in are with terms XXXX, In markets Alaska Texas, Alabama; growth

as XXXX, we have or key a solid pipeline underway planned number for portfolio. within we into CapEx and planned investments inpatient additional our outpatient other move a of have markets these While growth of markets also we across

to Kevin pleased were We finish comments to few Before I like XXXX turn the margin to call financials, our our improvement regarding see over walk I EBITDA programs. margin through a make to would strong. our adjusted

a completed program of team we the mentioned management As included margin detailed administrative during a have in improvement and quarter of hospital program services third shared The strategic XXXX. our past, the costs. analysis corporate,

hospital and quarter that team, incremental cycle during leaders we operating other revenue refining the which management from through new as plan, XXXX. savings introduced. being fourth and We savings includes to executing build plan this also Our we move efficiencies experienced further regional initiatives each and Kevin? enhancements, are this outpatient expect are and quarter

Kevin Hammons

commentary Thank additional the walk our provide you, guidance. Tim and quarter through and fourth from good XXXX morning results the everyone. will I on

this a call, earlier. reminder, items exclude on mentioned discussed As Ross calculations

admission. the and and adjusted This X.X%. X.X% adjusted a comprised On in increase in quarter, admissions fourth increased X.X% was during basis, revenues increase a a revenue same-store of quarter-over-quarter per net net

revenues operating the fourth quarter, to net XX% During outpatient net consolidated of our revenues. increased our

XXXX basis mix decreased XX XX to Advantage managed Consolidated basis Medicare the XXX points; Medicare points. payer care XXXX other the decreased fourth basis of quarter shows points; self-pay XX fourth increased and points; of includes compared which Medicaid Fee-for-Service decreased quarter revenue for basis and

self-pay admissions Looking Medicare at were and our adjusted each all volumes managed our Medicare and declined. up, care, volumes by our Medicaid while Advantage, payer, Fee-for-Service

During XXXX, of quarter consolidated was was charity care, the revenue flat sum and of the adjusted fourth self-pay XX.X% year-over-year. uncollectible net discounts, of which revenue

us allowed wage of and revenue net our percent by decreased step management inflation. XX driven items, salaries operating basis expense same-store as benefits a to to productivity points over which Turning

we've for decreased stores same have points Supplies undertaken and in net expense percent expenses. have which we pharmaceutical operating basis decreases some of as the initiatives implant revenue as in from realized benefits our chain resulted the a of XX supply

to revenues same in of insurance as costs, net points expenses stores services. offset for percent operating due increased and by our basis Other operating XX higher IT decreases purchased a

fourth from quarter. the for prior were flows This flows, cash to cash by on our during Moving to of million. compares operations operations negative XXXX, $XXX year $XXX cash quarter of million provided the flow

payment the first the of for a increase, period $XXX XXXX quarter-over-quarter the the at Looking reminder, as HMA included legal million. settlement

our due payments interest million lower And of growth and payments during were EBITDA part the interest were decreases to year-over-year other timing during quarter $XX activities. increases approximately quarter. affected in cash flows by Secondly, cash to the the fourth including of XXXX refinancing lastly, offsets

a There during fourth refinancing the the quarter million -- settlement quarter payments The $XX of the fourth and higher couple payments approximately approximately headwinds were noting approximately $XX legal the during million fourth of $XX cash of that payments interest worth activity In XXXX. legal had the malpractice into company of and million. accelerated quarter quarter. were

provided XXXX. year million operations for compared year full million the our the $XXX For of to by were cash of flows XXXX, full $XXX

activity, in million for refinancing due again, HMA malpractice of million. period the higher legal at the interest from outflow settlement, timing the year-over-year increase, to claim Looking payments of million $XXX of and the approximately $XX payment higher payments cash XXXX part approximately $XX included

flow about think improved cash performance cash performance, we XXXX. free in we expect recent As flow

for full X.X% X.X% net Turning to million year net revenue. revenue. million of of of was $XXX CapEx, our CapEx CapEx the was or $XXX XXXX, XXXX our or In

We of markets number a key to allocate opportunities towards potential. growth in continue high-growth capital with

debt the hand we balance million. to sheet, billion had on $XX the million fourth $XX.X at had long-term we $XXX of the of the end fourth on approximately end approximately the quarter, quarter, sheet. on current of of At maturities Moving balance cash of the with

in and early million in strengthened XXXX, the $XXX completed profile. of several $X the February After maturity this no recently, in extended of of has our terms billion XXXX XXXX. XXXX completed $XXX our the we the transaction, maturities million In with Most liquidity which transactions of notes into structure, our XXXX, and next capital of notes XXXX. company near-term maturity company's we which transaction due improved its

expect at with a fund to cash this We future date.

company initiatives, focused drive execution are flow. and allowing of EBITDA on cash better we our the to we same-store forward, growth will Moving the improved strategic expect which drive deleverage

be to will admissions I per $X.XX to X.X%. year Net $X.X Now is is $XX.X anticipated walk $XX.X is anticipated be operating our X.X% be billion through Adjusted to billion income to billion. anticipated share guidance. to adjusted EBITDA Same-store to full growth anticipated revenues to to shares CapEx are billion. are forecasted $XXX be of is be loss average of share Cash of $XXX XXX $X.XX XXX.X from $X.XX a million. to a to to weighted outstanding loss expected flow be diluted million per based and $XXX to operations $XXX million on million to million million. Net

expect XXXX terms we strategic of as our expense throughout from margin In to the we've program year. savings in initiative the sequentially mentioned past, build

terms being cadence to performance As our with be similar EBITDA we EBITDA expect the of year. strongest the for quarter such XXXX the somewhat of in quarter to our fourth year,

you. now back to I'll the Wayne, turn call

Wayne Smith

XXX-XXX-XXXX. we're Thanks, questions. area Kevin. code At able this always, at you for as ready can not we're reach But point, talk open if it operator to to to you, up Instructions] us [Operator

Operator

first Jefferies. Instructions] from comes question [Operator Tanquilut Your from Brian

Brian Tanquilut

role. guys. Hey to Kevin welcome new morning Congratulations. the And good

one since ask question So Kevin. allowed I'll to just we're it I guess

refinancing had compelling refinancings is, recently XXXX some Should in that as As look you And guess of as to guidance current XXXX, the your for environment? what be up maturities CapEx about rates. you thinking be I about think growth? we should be I you forward the to at rate of right is you. in debt to success that -- I that did versus your at thinking take you've think level well going some about the a for I then CapEx to Thank advantage follow-up pretty able coming drive year

Kevin Hammons

Thanks, here. I'm to be glad Brian.

forward. CapEx of of we're off as investments CapEx past. right a investments we've in going -- making pretty think terms CapEx, high-growth maintenance, similar in our a do coming revenue that growth the opportunities that's it's percent In in net capital think we've other best years. of number we're mind the investing to of had level kind the investments. been as is that revenue we the right of We're we making what well as and Keep amount in of that had And

of are care have also intensive. We transfer our capital less our like number a primary which development, areas center, growth

growth debt improve to continue to opportunistic our Related refinance a And some look our margins be debt focus right to point in And those. to and leverage. continue drive our we'll the from at to debt, future. have and But so on to be forward able lower opportunities we continuing we'll EBITDA to XXXX clear runway. is the now, our

Tim Hingtgen

Always have markets. Brian is I'll the right to committed lines highest expenses. do with for CapEx That's Kevin physician this to something than operating as opportunities we manage Tim. sufficient to I obviously growth said expand looking on our add service that. we through recruitment. believe our more

traditionally We service also the our lot to purchased moved IT a of side that was have capital spend a on spend.

improvement So again general terms capitalize we we services, certain our how how terms in us deploy well I in decisions purchase CapEx of margin of more with projects. think for getting how some bodes or growth-related our we of into of

Operator

question next from Research. Nephron Raskin comes Your Josh from

Josh Raskin

Hi, welcome as thanks. Good Kevin. well and morning

So question the just around guidance.

And there. the If maybe the then, just margins XX% of exclude of portfolio? outliers existing I'm broad implied XXX portfolio, range sort margins for look to thinking spread hospital say or you some what this roughly, at should EBITDA margin I'm the how across XX.X% think the about your the of curious of of of what's is we existing broad EBITDA those? long-term so

Wayne Smith

margins. We quickly. from really individual -- terms this pretty in you expect, this hospital as first. of can give can Kevin you figure just out save I'll out So, from don't But the

we for substantial look about the to margins and But objective. and mid-teens fourth guidance in we're up should was kind out not of fourth in moving -- and if the substantial the be of were We pleased you very if quarter, that's get markets part kind XXXX, have so so at in in performance. of we of so quarter good terms markets that a the for Our quarter, our some forward. going you some XX.X% margins fourth are of our the XXXX -- and

Operator

Frank comes next Your from question from RBC. Morgan

Anton Hie

on some fourth index to just the had also for Its inpatient morning. full ask that got you Anton about the Frank. update Good want wage I the believe quarter. to I Hie changes Medicare for methodology.

and quarter? of pricing baked year full your affect fourth the the of that benefit guidance? did what's XXXX over how your yield kind the Thanks. that the in of Just into And

Kevin Hammons

We some in although fourth certainly saw loss supplemental muted some benefit that by the quarter, some from in the that of the fourth of was payment quarter.

forward it look we from have update to X/X anniversaries. until XXXX, benefit of that throughout the million we our three $XX first outpatient update get effective million is then Medicare quarters that inpatient was the we'll and Medicare approximately $XX guidance. And the about As in increase

Operator

Credit from Rice A.J. from comes Suisse. question next Your

A.J. Rice

everybody. EBITDA year just your little and drill bit got XXX Hi and margin guess margin your points. XX.X% to expectations, Maybe a you number EBITDA the XXXX more for basis it I was down on growing full

year Now, the the I there but is quarter at XX.X%, in ended fourth you recognize seasonality.

margin So, lot from I'm step-up, Do not to that's you of basis how XXX incremental fair. the what a exited at? like of probably just sense and trying sort have year you need probably really a you points figure much gain really looks

gives is leverage. that's you're guess opportunity to But mid-single-digit growth. from? think you 'XX, going is particular of there's That expense to some some margin -- where as that where is in then there gain where items, going from a come forecasting And come I about probably you revenue

Kevin Hammons

me start let this. on Sure A.J.

to going at chasing quarter nice many you're So, We with care see centers, initiatives growth through EBITDA that back operating transfer we our of XXXX. our hold exiting our been saw we're growth to XXXX, Certainly, in that they from our take opportunities XXXX fourth -- as continue right, primary is will margin margin improvement. the development as XX.X%. we've add

technology of a margin improvement in number chain, And then we've of Medicare various which us expense benefit margin. in to terms will supply be categories, on initiatives been The update working rate certainly across a new those primarily will us our the with quarters that in and several supply team reduce for about expenses management on we're place talked traction and chain getting improve help also and new we've margin.

Wayne Smith

into at we the fourth as want just add that get a our that terms to and of changes. to mid-teens. look out quarter, gets margin you XXXX towards range It the I in substantially

terms and in and to debt Our tremendously the equity. our liquidity us helps cap of

Operator

question Your Ralph Citi. from next from comes Giacobbe

Ralph Giacobbe

Can morning. that's you just admission guidance? of Good the us Thanks. or of quarters bit the couple embedded inpatient just stat of same admission of accelerated the facility last fourth revenue sort in flattish that revenue And a then, sense give sort adjusted was a quarter. the in per

can be anything So you Thanks. helpful. call would out there just

Kevin Hammons

revenue forward same-store in at I that XXXX. X.X% expect we we are for given I same-store X.X% that to had quarter would full similar guidance the volumes would net -- XXXX. volumes in experienced growth into year fourth something a the X.X% We've on which current year. same-store in the the of range similar X.X%, going to

would expect revenue similar I net So growth. same-store

Tim Hingtgen

admissions the in were our Obviously, Ralph, into quick revenue that. X.X%. a terms on of what overall we looked recap of with growth of we And, pleased just

were So trying to see from that the fourth movement where We outpatient. quarter. tracking was the throughout to inpatient

a to less think to more our reflective length arthroplasties, that midnights, the if The growing terms of of seem And on stay advancing side is we total patients. stay, biggest the to of care TKAs which with terms shift -- that knee line the they in knees, shift development be than quality. revenue of in going from lower just the of better two service was, focus saw that, I the outpatient, with

it does to That in that flip year-over-year fourth was us for quarter. outpatient. the pretty meaningful a So shift

or, observation. correlates commercial our sorry, the referenced in -- we I'm population increases. that our growth terms inpatient volume Advantage from Kind to Medicare shifts of to We commercial also saw some of in

terms but some impact terms there, like not out, were or to actual of in item for other pretty on The much us big call line Again, service stats, which a earnings. of margin I'd so elective in closures.

out always that in discontinue markets at what said their service sense have we perhaps the for a margin, we'll those our struggle decision may have of And portfolio. that where look build if makes as lines or And, the volumes we'll the terms there's ability us drive believe, other of services we across to to make We help take through guess, our shine community in line well. fourth few us that elective options I I profile. the quarter in in and post-acute did general primarily improve margin were I'll On EBITDA space, say, in them the closures, more, the those as service very acute lower space.

Operator

comes Your Bank of Fischbeck America. from Kevin next question from

Kevin Fischbeck

Great. other guess, flow. Thanks. couple next year, wanted could. I about numbers there things line into doesn't about I of to that number. for talking cash that the fall guess, ask I I a item you're investment CapEx The is if

is. that, the that to fully if I cash I generating then, that. free you set want to moved guess, or we flow of how level And, see made kind services. to can wanted what that. impacts Thanks. going number, purchased And more you after number either CapEx income understand comment you're and And about Just so statement be a that how the

Kevin Hammons

Sure.

spent about $XX next other million million this the equity not current investments, recur that, year, In expect to Included $XXX those terms investments. of I we, think, year. We would in year. of in was approximately

rate us relatively for several technology investments and be around the spending And past that software over expect year. good made run similar. that some to that's we've systems in this other clinical would is been a and in years pretty The

stepped year a little up next for flows cash The bit.

had As as also million in approximately next recur which we year of settlement of malpractice would we expect malpractice earlier, a mentioned to headwind payments, in XXXX payment well. we increase -- $XX not

from of in experienced that XXXX, able performance we cash EBITDA what flow with we're improved with we over up to kind along the were So step that, the operations expecting.

Operator

question next Barclays. comes from Andrew Your from Mok

Andrew Mok

A good divestiture question on Hi the portfolio. morning.

in can down Now attribute would of team for the have of some the the in us share results, much pretty portfolio? results give XXXX characteristics How the versus the drive programs portfolio a sense winding you in markets and program to XXXX markets? that to improvement you gains volume some that less-attractive yielded exiting is current implementing market versus already growth continuing nice the

Tim Hingtgen

If Tim. you is -- go this

X portfolio look go in to we it do slide deck, If an as the with the you of back. out a for that pretty good you calling recast job eight does quarter

being markets So a some demonstrated with the sequential there by that it perhaps improvements historical of some that muted we of divested. obviously, we or volume was core stronger

service of terms those things deliver markets around the medical ACOs, infrastructure help on invest transfer development, guidance. in the provided a we investments centers, to physician we pointed core as in forward stronger have portfolio line adjusted But look our we those focus, our will throughout all believe our us which the growth the the incremental, out, in initial as practices, staff we

more that's we opportunity we We're to opportunity invest that develop pleased some where high-growth the really still with see growth years come. in rates very other markets where more to for competitive markets we're several seeing. have In

Operator

from Gary Your next from comes question JPMorgan. Taylor

Gary Taylor

tripled XXXX the sort the I But morning. about put range just good you that a a guess little one month I in I margin Hi, is for X% to to limited want of in year. guidance. XX% guidance your out has growth since EBITDA stock to range question, EBITDA ask next bit mean in of growth. if I'm the expectations

And I and be obviously you the disappointing think really given exciting. XX% and be EBITDA would growth your would X% are where turnaround in pretty objectives

comps volume of maybe would just us of be tougher pure that just these sort against So there that range guidance And is that of key so help why sort is range? outside about variable on wide? the anything trajectory think of

Kevin Hammons

So let me start this one off.

growth on optimistic And about about. So traction we're the XXXX very as we're good many really Year New coming talked getting move of with we we've as out initiatives quarter momentum. fourth of into our

able kind speed initiatives. Certainly is contributor into on to traction the XXXX of be a improvement we at and them. to as go -- execute we're well margin growth as to as which getting volume EBITDA key our our going We're on

the have range more fruition come of X.X% I those improvements largely at in between kind depend that lot volume on we're will and expecting. the as fall mentioned the speed a hopper within growth to where We the X.X%, initiatives which as the well we

Operator

our is from Sarah last James And question from Piper Sandler.

Sarah James

I that on just you. point. Thank Maybe can last follow-up

having you of that are? drive will are is you rollout delineate the ones So are swing initiatives variability help when know that stage? Could So the could which biggest broad a us talked the how where these this margins factors? successful And between they lot how about you end in up.

Kevin Hammons

changing, of well We talked tasks as chain in new have both office, a of as corporate as organization We've how getting our of half with build vendors. to around our supply back good of we hold implants, our initiatives were all the chain. about Those of how the some go at take kind we out started functional as about the about well areas supply as administrative particularly on any that expenses facilities and ones traction cover pharmaceuticals. number in many – been across XXXX. in go previously we purchasing. contracting here supply We've that the

those first fourth benefit. you through quarter and starting in a continue We a to those quarter, initiatives. the annual the third since add think have continued we and the EBITDA initiatives and those about We'll have took benefit execute hold if from benefit really of an half margin we'll then growth new as to pipeline those. to on of on XXXX program improvement the And continue get

Operator

comments. Smith will for the back turn now I over closing to call And Mr.

Wayne Smith

this again Thank you, you your for thank Mike morning. time and

encouraged strong well the finish XXXX, all we're to the by as we outlined achievements company's our year. as today As in

four, reward and care and demonstrate our our to the move holders serve; we strategies the We our to for one, and to and employees; investment partnership earn ahead trust and communities in our will to: debt confidence continue patients; their our outstanding provide company's of to shareholders physicians for value the two, three, on organization.

continued grateful hospital, grateful team Chief We're Officer's, to continued performance. We're and Nursing our deeply their Officer's staff also and our for community and management for to operations hospital on Executive focus boards staffs our Financial Chief medical and their division support. operators and Officer's Chief

code area call can the you. you This in later us forward reach Once Thank to you any on questions you XXX-XXX-XXXX. if progress concludes look our at our always year. today. updating have again We

Operator

Ladies for concludes and gentlemen, participating. conference today's Thank this call. you

disconnect. You now may

Community Health Systems (CYH) 20 Feb 202019 Q4 Earnings call transcript