LHCG - Earnings call transcript Q3 2017

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Operator

Good day, ladies and gentlemen, and welcome to the LHC Group Q3 2017 Earnings Conference Call. [Operator Instructions]. I like to introduce your host for today's conference, Mr. Eric Elliott, Senior Vice President of Finance of LHC Group. Sir?

Eric Elliott

welcome, third LHC XXXX. quarter and Call Earnings Vince, the for ended you, everyone, Group's to Conference Thank September XX, should copy a have earnings Everyone release. of our received may the industry our other you If along on a LHC and about website. with not, Group key obtain information copy In a Group. Chief Proffitt, Myers, Financial of LHC from hear Chairman Officer; Executive Josh Chief moment, Officer; President Stelly, and we'll Don and Keith and Chief Operating Officer

from call Private statements of this Before provided in that, within statements to in have and Group like materially those release no limited annual risk in regarding in factors LHC financial to constitute beyond. our statements projected a information reflect and which of I quarterly update Actual Reform to, conference may because remind everyone press on our are not These discussed subsequent results included and the shall this events. that call but meaning obligation Securities would uncertainties, to forward-looking our could XXXX forward-looking Act. number for are filings. comments include, statements results SEC of Litigation differ the the and

to Myers. and Group, Chairman introduce pleased CEO LHC of I'm Now, the Keith

Keith Myers

Thanks for of you, and morning, entered with area. good Thank CHRISTUS us today.As Antonio Eric, part joint San being everyone. our the we venture,

patients family and with prayers the as With members certainly Texas, are well LHC tragic events indirectly yesterday the affected. community are Group with Springs, thoughts and directly in our Sutherland as and our who

impact Harvey Irma. Group who still patients all continue to are hurricanes family our keep and the members with also in and LHC We mind dealing and of

CMS announcement morning. reimbursement proposed be HHGM hot system to I know this Now, turning to the business the that related topic the a will recent hand. of at

organic quarter. strong we're revenue about we Before that pace we to been our years nearly active to our XXXX. for performance, ventures. to momentum, how two strategies our straight each from the third able team growth I'm cover quarter I sure spend pleased we thinking talk by that organic bar make about joint higher and combination want set and venture table time driven growth a some first contributions strategy and on growth as that, of seem very we've a of that and acquisition growth joint through the set the maintain After

quarter create differentiation the strength clearly been and to our patient commitment This of and business how we demonstrates delivering to able have company-wide quality model satisfaction. through

also of on hospice health on care core systems, our care to need organizations, This patients. who health the home improve intense that reducing deliver government health cost. focus integrated quality high on managed-care ACOs and the goals of list our of patient and partners programs while with aligns and value-based care quality places culture, take to mission Our us care focus values hospitals, can

Our industry a of our to past on the our positioned in leading segments scale due need relentless hospitals systems and all of confident business. LHC and track commitment the fill continuum in is partnering demand throughout quality XX-plus and the well post-acute this high over with Group years to record national XX proven ability health many in Based to-date unique country. venture success growth our in drive we're partners, of our the to and opportunity with the joint is strategic

capabilities team. benefiting Baptist and ventures, agencies sales Memorial of Turning that operations our from to happy report structure joint fully our most the recent to and are I'm integrated

into and now this locations our quarter. bringing to locations joint together. September acquisitions states and XXX venture Xst, with to We of is de LifePoint phase have own locations in converted us of a revenues begin to-date actively health remaining the now model. is we've XXXX, these LifePoint XX CHRISTUS with made with together on was acquired joint agencies pleased Group. pursuing venture to X projects operation the migrating progress process record million having LHC are for in our new third We're in This and we all finalized XX in year-end by do they The The novo home fully contributing the expect that locations be to XX from expect venture and hospice earnings managed complete, fully XXXX. well joint locations will X to and integrate first we throughout across and quarter a

the with of participating no of system a to the final are volume ruling We the an focus proposal. Model, in XXXX with stakeholders would that and home of you here, through not a government health the XX has is that or with to millions or to surprises overall undertook to whether home leaders As issued by from CMS improve patient-centered additional the a time CMS. quality original it's to ultimately others appreciate effort more thank the of for and like a political percent, grassroots care XXX There payment Members or look working finalize services other health XXXX, and a services shifts who depend CMS, letters the industry. hospitals recovering every the positive largely And systems. health access Health Their and did we care last HHGM. from actually engaged towards forward enable veterans, saw impact as $XX continue a thousands for and on who actions process. of health Wednesday, stakeholders to Senators but take patients decrease sign-on preserve many vulnerable to in Home willingness us implementation further would add-on health estimated been for renewed, will to there and model rule value-based consistent We to and move integrated the its population. many to home should of who day. There The commitment overall million most never final industry stronger be engage OMB, payers concerned on programs, CMS' seniors, of managed-care to needy of rural $XX be Groupings to House America's a million these help X/XXths of pickup life for

you community-based satisfaction relentless on care growing care quality acute focused organic to focus and a Our home our model industry make coordinated families based their meeting who day. the shares in and the for partners patients lives deliver coordinated, health of delivering vision a our of true team face privileged brand. are through mission They Group. I'm and the from with model growth in every Group difference health, the reimbursement business of We're and LHC the and of This your patient and ongoing demand you in outstanding is hospice provider on the an patient-centered and the positions us to on consolidation a job LHC a the Thank quality like the contribution settings value-based in and driving uniquely culture. exciting for to our our today drive whom care at with the all LHC They for and of sector. because care do as with position current transitions long-term work Group to representation success. collaborative to

and on Now, here's our some increased financial Josh? guidance. to Josh results provide color

Joshua Proffitt

call Group. Thank Keith, you, and morning, and in everyone. you Thank LHC your for joining interest our for all continued good

contribution and continue our and care to XX.X% regard family blessed service Group our per elderly service me of LHC support third quarter every be the the our successful clinical for to another the families that increased who the in again of care XXXX With exceptional thank members revenue income you Let and the results, XXXX. third service net are continues to to with report increased diluted of once able and quarter. share quarter. communities industry provide mission for results to in by third patients, of LHC $X.XX begin its to you, all the day. the of lead to service all income due LHC income the which net per and agency to patient those to at-risk professionals of saying EPS was revenue in and a in high so for and venture in episode. to and as of patients Group home with health provide to you consolidated fulfilling to care financial who XX.X% health of of we per we're and revenue of for revenue Included Group net X compared to area in all our them Because LHC adjusted Home the Net attributable growth population Group quarter attributable on the in XX% compared same-store strong Xst X to quality the the in X% of was the transaction associated quarter closed approximate revenue margin basis, XXXX increase quarter which share of our is September XX.X% of as margin third CHRISTUS last one-time in $X.XX the agencies. our the related related in grew the XX.X% an to is closed same-store $X.XX On acquisitions from was joint Otherwise, more our third admissions is for than to our third which in margin gross that Oklahoma. decrease margin diluted X.X% of third due to negative quarter. in The quarter is year. year-over-year expenses the an closure $X.XX, mature gross in of gross lower cost

for the consolidated Excluding to quarter. XX.X% third gross the margin these third would gross our Home Health acquisitions, period for compared for last the XX.X% same margin XX.X% year. be recent was quarter

been have would XX%. margin gross Health Home acquisitions, recent Excluding

Hospice XXXX. quarter same Moving in to for third to was period gross margin XX.X% of XXXX Hospice, for the XX.X% the compared

been are during pressured will gross experienced Excluding here decline our in moment. recent margin a Hospice on acquisitions, the margins third quarter Hospice by also admissions gross would that being Don in we same-store touch the XX.X%. have

to to in our general of the revenue XXXX. expenses, quarter expense G&A third of as the for was on moving compared Now, administrative period XX.X% XX% same and

year. is in Our expense percent we a expense leverage. down is on continuous generating our to improvement while from cost lower and revenue the efforts as basis, XX.X% sequential this due additional of of revenue experienced The second control growing operating a G&A quarter in G&A

of last debt to of year bad as represented this compared year's quarter. third in our X.X% the revenue third in quarter Next, expense X.X%

result debt the on improvement commercial is agings continuous receivable overall write-offs. of collections, health Our accounts improvements our expense and and lower managed-care in home bad fewer

the see respect its health cash to For with has to significant company months on continued collections September receivables. progress X ended the home XX,

XX.X% timely our by of X indicate write-offs to cash XX.X% As XX.X% continued such is and analytics. by field that XX.X% decreased of advancements I to to XX% X.X in platform more performance collections other back have the our over contributor receivables maturity receivable a Also, as XX.X% AR. care to substantial from the key heath we and technology our office our of have both from cash indicators and operations improvement last December points revenue, from related have mentioned to reporting and basis point collections each XXX increased accounts days key quarters, home year-ended decreased on XX XX, total monitor to from of XXXX, of X.X the

continue also gone the total cash progress receivable XX% respect XXX% of to on our in collections XXst. third receivables and see has XXX hospice days to to for XX% receivables. XXXX quarter excess of revenue with since We of accounts We of collected from December

For X.X%, the increased has income X%, XXXX, September operating up revenue is a ended our XX, last months as same year. X.X% period which up in X of the to from percent of

smaller the evidenced throughout times this recognize Baptist Memorial and we various approximately recognized recent million transactions annual into a have will rolling acquired LifePoint, from approximately we our with in be expect at great joint fully $XX came and Health, couple to of to new XXXX, continue As board that we these recent Care from have transactions that JVs by CHRISTUS Between our up XXXX. momentum these year. in ventures $XXX year, revenue Health accumulated on million

opportunities Additionally, be fund potential having our while robust excited to $XX pipeline and still more our of line freestanding I million pipeline we remain about by joint ventures well credit. of positioned available opportunities, on cannot these

billion net in Turning revenue be year, an $X.XX guidance our range year billion now $X.XX raising $X.XX expected $X.XX to $X.XX now are per of the billion $X.XXX range of from expected to annual XXXX we service to for to of for diluted share guidance our GAAP to of earnings fiscal the range $X.XX. $X.XX an be previous the in and to previous range from to

our the of guidance include the related the does in closure of venture for fully joint spoke $X.XX XXXX and about quarter Our transaction to Oklahoma share diluted expenses per I agency CHRISTUS third X earlier. approximately

was take into be QX to not XXXX. slightly if CHRISTUS any; than if continue to QX, future future in will JV it that less Our guidance earnings the do contribute changes, We locations, ranges do if impact de steadily dilutive and estimate however, but if in improve the made; our acquisitions, in will the necessary. future opened; account, novo legal reimbursement or expenses,

of to For expense the call excess turn tax benefit item my be pleased range rate resulted discuss X.X%, happy in I'm tax That percent margin the gross XXXX, in revenue Q&A. the further a of to I'm general in the XX% be to X.X% percent the range XX.X%, stock be and range to of during QX, compensation in excluding XX.X%. tax administrative now year that our an related to to debt of Don. to discrete full and as now to expect bad concludes we to in be the to to prepared remarks over based now and XX% the the a range of in XX.X% of as to of revenue XX.X%,

Donald Stelly

everyone. Josh, and morning, you, good Thank

organic You projects are in know and joint our and de as services. such of external extending acquisitions, community-based built and both committed overall and hospice we track results growth home on novo health, growth ventures record to is

a in Focusing admissions. systems behind value and X.X% on third increase same hospitals admissions. has that XX.X% factor growth health continued increased in XX the these in months to we home to among health the admissions a quarter coordinated increased quarter hospital of the the and third Same-store ago, to XX.X% health the home period were home proposition is believe hospice compared reinforcing #X organic led organic admissions our for and a first to addition the The year-to-date XXXX from for total of in our and experience care. both home community-based we and quality X provide X.X% we quarter year locations up health, health health bit, acuity through and non-organic the in the with of partners admissions

X our full home health our the Commission. be is in to ability CMS our recent release, very pleased; to greater national that scaled along remains for also provide that locations XXX% continuum Joint only by home in of the elite more provider ratings and health sales the of drives of accredited have quality rankings; a Quality course we're proud health the Star stars effectiveness, and LHC locations and and with proud home of lastly, Group XX% XX% a These most an we and in that our continue partners joint satisfaction, furthermore, care, We post-acute of are attractive having us of with a demonstrated our number has patient leadership hospitals made home are and now earned care know than systems. and to home venture we health partner growing leader health. or

of a produced improvement been to the ratings, October over a the report, X.XX quality X The for range from quarters. score the X.XX last X.XX in X.XX we of July an X.XX October of has For recently average which report and is XXXX's for the national report. a within

ratings, cause recently for declining to which X.X% as decrease were prior as therefore X.X to note compared the our what's patient lead In little admissions with from CMS to the our release by calculation providers of redefined release organic industry compared score year. continue this satisfaction It Hospice a with ratings the points, for compressed, average by and previous that of to X.X. changing industry segment, the Star differently. mentioned, Josh is looking slightly called cut has roughly in margins all also We the the of

and candidly year we've split been by run we have In proven for of finish excellent motivated segment in areas, managers years bringing already LHC We pleased XXXX the leaders we a are are being and value closing, on underscore second an to-date. improve ahead. Hospice, of a we to And Group in for and have the where strong been potential into Development and make Market this has prepared over our our we and professionals. morning. you operational the Hospice at results Vice about fulfill are created to last promoted yes, proud are to this to X while realize opportunity the and talk disclose to operations we've of of partners to have often sales XXXX. operations. producing experienced this stronger. open my that this plans We we To regions questions. we division do divisional our in in And by to floor we're to look executing bifurcated is Group a Vice And last Operator, of and move provided and and all difference able To our highly growth here course segment team, portfolio, our delivering extremely ready payers, the our always for patients, now start one President that beneficial and, our potential for remarks business thank President that note true role of top very QX strong to now the you and LHC tremendous experienced the the commitment so for the these shareholders. maximize of also commitment Hospice this grow concludes never several our forward become we

Operator

Instructions]. [Operator

Our Brian Jefferies. first of from question Tanquilut is

Brian Tanquilut

with regulatory Keith, environment. the let's start

legislative a on what thoughts guess we the rural passed -- that your the add-on And to and the with in that terms follow-up for where do from But the how tabled we you to and think the the as into? get the I industry, view before about how think obviously that you vehicle will the then HHGM on of get what see year-end? happen that now. be does So step, how do on comments is or do industry evolve industry working next reimbursement agency what's evolving actually should

Keith Myers

them me. trying write down. anything, clean the Brian. It's If at miss to of end just I'll -- lot let you come to questions, a and I all up back I'm

So essentially are was could episodes industry already the agency into industry model what don't by is with. well this let's One in lot -- that as us meeting We without it but pull their more that costly we with resonated the value-based particularly so to the a out. rule arguments forward. higher the momentum deal I CMS what a that are after that upstream path back coming foolish not out patients central first industry that. a thought wise, and the had to allow joint believe meeting needs with a more forward CMS talk was a And be to of about weeks discussion. the into wasn't about And something driving rule of looks home do decision don't see the live think industry come well really in rule patients could it scheduling final consensus think the we We thought had settings. talk right penny we seen pound process that from That in case through result now, is the with one we costs reverse was our something XX-day that shifting move in The to where it mix, great health. is like would want to never that path a dissent that thing more of with like, to the and purchasing. a the support and They before table.

with we that. where that's are So

I where course. going we haven't be rural We've do CMS about mean I working that. I a land to definitely They add-on, a the we rural with of play extension support a mean live lack is With any add-on, out [indiscernible]. we have out that's X% something with rural add-on, and that of and just industry support what we think that. through lot as colleagues been in us or Senate talked for along proposal rural about for that commitment with the the think implementation made diligently we've never to I there One so feel a I that toward which commitment. House to for a if 'XX know of to and the look believe. That's But other starting our view beyond. year. rural tossed of that. add-on But to in to finance that it rural of could strategies point. there's XXXX the engaging we I up the got a we're in regard July X-year this good add-on. agreed idea risk that there's revised model of I that support forward announced the is that's that legislative of personally would there's add-on. is don't X%

Brian Tanquilut

guidance. just Josh a on question for the then And

like looks I 'XX. think guidance will that QX, of As in slightly flat the growth rate slowest for sequentially. implied be it that the quarter-over-quarter up like to revenues looks And

So CHRISTUS system in you're this quarter. the getting

out of should how you're how terms of So Is anything in there that? the about call think we to quarter? the progression viewing

Joshua Proffitt

as heading Brian, Yes, have about but bit we've us. But that my I will to for we And fourth going we're little improve not quarter. contributing in in the prepared in slightly be well on. a as in QX, operationally revenue a a was to it as into for drag it it expect little quarter. CHRISTUS you're And then dilutive said next still be bit to and a in both cost year, contributor one-time experienced remarks, thinking more the be real really it QX. spot

Brian Tanquilut

A last question me. from

or patient called Health But margins As you're the out you look per -- I there call at the down, that obviously I per think out mix are anything Home trending up, mean about trending to episode we I visit is in know happening of seeing? in the cost as visits that shifts terms business gross acquisition.

Joshua Proffitt

really anything perspective. know I Don, that if But, operationally not pulling the acquisitions add. that answer my are to got from you've don't is I'll down. It

Donald Stelly

see of And now my up, acuity Going correlation the honestly, prepared about where that acquisition moving fall-ins. don't is about VPE going I comments back observation I to the Brian's think because to direct up. that it going from the Brian, last in is

on visits I were around we any all-in XX.X go higher that episode and I wouldn't that. think per than those

I vibrate to going you're think right there.

Operator

of is Gajuk Our America next Lynch. Bank Merrill from of question Joanna

Joanna Gajuk

So clarify statements, the about the hurricanes. things just to on comments including opening

So sort quantify? or of related was costs to then you that impact could closure. on from the -- the clarification those and deal It's one-time And -- meaningful there hurricanes on any -- about second maybe spreading I or the it's segments? that $X And million of pretax, we so equally assume G&A. it segment more was than particular others any among think mostly impacted the about should in kind

Donald Stelly

I'll tell on you what, if attack part of first Josh will cost side. the the go second and your question

Joshua Proffitt

spot you're The roughly of Joanna, on is majority in million the $X G&A. as on in well quarter. the that

associated On that of side some on There CHRISTUS through then the that in ran the intangible not that is in SWB, closure some side, and of G&A. house, the we G&A. but be costs severance material. were all would almost had costs And

right as you you're do there. want So And take then the to as effect, far that? Don, hurricane

Donald Stelly

some contributory didn't our from -- East even that's on company us that and it area. was to some were I we out. relatively factor newly footnote so with experience factors operations especially hurricanes. because that through the in that. CHRISTUS, assets, immaterial Atlanta though Joanna, Halcyon the other did was, out it want Greater really truth, But call interruptions was that a overall call overall, But that CHRISTUS, our for hospice disclosed is we did a helped and us and other lift experience why didn't we Coast acquired did in as the more not -- only have why we effect we Yes, really My there in

Joanna Gajuk

declined increased basis just increased about And in if -- acuity. you the of the Home year-over-year cost I margins, services points. guess so I may, of XX terms mentioned slightly which Health

is just how of you're seeing should just we any pressure but Because around some providers, we labor some So make in thinking are regions all, there that also seeing I comments terms some costs seeing, not pressure. about sure in it? that because be to want any

labor anything cost if to just So side? the there's I clarify want on

Joshua Proffitt

add I patients as of and answer acuity tag one which going cost this forward. your will I your the no, of any Don I'll first the for team well. is, wouldn't part incremental question,

there. pretty out in mentioned would you Don think the have the bit little today. And of want we're I to I take than part? you're seeing, that As stabilized That wouldn't his then, run it caused is second Don, remarks, that uptick a anymore but prepared if

Donald Stelly

probably I'd for tag on pressures. the wage and say thing same Yes,

are other Of provider pressures so than and of than by up that. the and region more But more availability certain certainly anything and pop course wouldn't there for supply some and portfolio. clinicians bake I demand in

and our been As rate of matter fact fill be candid, rate to been never a has vacancy better our never lower.

So we our are where into we about feel with going XXXX good with labor.

Joanna Gajuk

the negotiating or outlook more contracts? into see type terms in If the I do per visit progress rate question shifting what increasing longer may episodic Advantage there of in just squeeze a in terms of and contracts there term you with Medicare those Plans any and

Joshua Proffitt

very continues increase managed-care so with year-to-date. put frame what how so able our based model history models I have successful that business are more and those would grow -- that's to phase. we margins. the contracts more what have on we value-based then move moves contract towards needle managed-care much. But acceptance So To mean it's we've payers, only one the a show models, where we works, our the we're achieve it, to the say performance. towards of many in I And trying that dealing much and the a value-based still negotiations. the around companies, maybe with seen better in we can margins X% we're in progress To rate is we're it more other piloting still on number a -- to so increases our

the with see to risk want very sure be -- payments progress. happy because patient before lot And on time. the have to to that they're So the value-based you don't that in going at to managed-care this they're value I'm process, of make make one take you. It's they the payers to a just we want

really important. of concept proof So is

very getting we with ramping because think models comfortable I value-based as see place. that we you'll in go have up we're into XXXX, the

Operator

Our next Markets. Capital question RBC from from Frank Morgan is

Frank Morgan

base put Thank worse the I'm add-on you just what better do then you or the back, of would would And put on kind average do color on think update. the that curious, if should rate for own numbers as your back rate? internally, you than we you add rural on that come X.X% incremental your overall on minus rate?

Eric Elliott

with the -- a for add from with for we the calculations revenue. back perspective, around then annual that us million were the rural percent effect think doing, on in the the us in average. we proposed add-on I would rule, industry is that were line $X And we

what that to think gets for. I So you're looking probably you

Frank Morgan

just the Was lower there hop may related there should called think on to out -- that we be was recurring? mean to you there Hospice the or may maybe cap side. side anything not Medicare And anything volume. operational over that on about I to that also organic in

Donald Stelly

The in short a us made. being that we during team an down, quarter volumes no. as hospice XX When me internally management going volumes -- queue saw the answer point. when we of were at made somewhat go now inflection back. we be already With was you that our knew we to And down the saw changes there locations, is let well, take then

would do So And because down census we had want didn't point. didn't that's you And do we but do take in growth, then normally far, we to then to if decay that. know so we like we're decide Admittedly, your decay. confident cost had one did. we our we that we

year upon the impress And question already. my for sit as to I and X.XX about divisional feel I in a we you transient an we I'm tracking what at that is about told, quarter today. making in was where But census nothing the our impact simple of We're base as are. All be Hospice. volume leader further some call margin add X% the I last just And same. stayed to do overall growth believe was EPS color, between no on that to went the And the the in guided the down So and good think it's trying in remarks we -- no, cap, I and talked cost else. then compression. it prepared with X% the in

Frank Morgan

they way, final Maybe with know sort just I'll one we M&A. some curios, final a of view larger and M&A in change way think said you're now any would But toward an Obviously, -- you out for take people expect coming your you you rule pause. the kind this this to I off. should continue hop does of year? even of do now year JVs. of next a do up I'm

Keith Myers

answer I'll that parts. in Well, two

begun lost mean itself If had was as press think not in the that in health this But home cost up back it affected every policymakers the patients where how home my draw heavily a accelerate higher so effectively in question, -- rule independent health every the effective mind additional course and has years it, really that had been real response of data if value possible could a then was it always with this much value allow confidence challenge never we reimbursement to answer financial more setting, emotional was It's it stood we're and we care years vote huge third-party can then be it's that been and take certainly that focused to I mean of people any the of delivering united saw I the momentum about would to we we're for I do very, with a that XX important value our just we on and sign. First, the we've very always have. I've as we're of that industry impact over "we bigger we'll last perspective? it's would data, presenting the from benefit at just pause. the of people." now efforts, I the of much that. this the effective given how year -- sign lobby opposed as defend home JV. be and that delivering home health to just a materially chance. where see shows many elderly X we why industry, of this plea really to to health, data the and

Operator

question Kevin Ellich Craig-Hallum. of next from Our is

Kevin Ellich

M&A. wanted follow-up comments about to of Keith, your Frank's kind question to on

more open your of shift is integrated of wide any and the home spend to you'd is kind area there health, care, time big reimbursement on value-based rather at Given or this focus based, it that or community point? between hospice,

Keith Myers

not at everything community like every I the go we're to open lead the view We open, wide I in. don't because mean we still anything. use well planned. wide term kind of is as pretty home in health being

in those just lines health health home provider a attached and first. when you home service -- hospital when post a in as then to care we a want you be with And for in be scenario, presents opportunity bolt-ons health, will. there already to And in in if health home or the when up LHC established yourself a home a X leading leading we that's to services personal up health with the a and itself see hospice us, So to as community. system, perfect have be natural community community, posts

feasible put reimbursement personal that sense. in you because So for we're operations states vision. And just hospice for there community a a are community for it that. and very following has hospice, still certainly by huge naturally is where that that. respected services are marching wouldn't always there, make there's well down exceptions community, that we In wouldn't support then make path And example, where the there and a care our not a so supported to that's highly the it wouldn't do

when to -- X So suites, the efficiency patients working as and can is there and speaking, there separate those with through where value have service common team. But area one together X whoever most if are lines reimbursement a provide for building the That's all really we works generally perfect are. was the payers the and combination in staff the shares exceptions. win

Kevin Ellich

And you will the then guess you it how margin think helpful as you not what do get and if before gross go they guess I could of gross one long as have been us far well. comments telling to as on for would the normalized the -- you I can acquisitions. kind for would margin one be Josh get quick -- level? will it Very

Joshua Proffitt

Phases question, I in X in X came in you've September. quarter it seeing on CHRISTUS the January know, Phase X you answer that Baptist already board obviously X, and and throughout improvements April and board in We've so in got would helping first on X Phase next Phase then heading like in components as in a of phased quarter We're X came the those September. and Kevin, this. the then got great should into second and LifePoint, that's year, really start year.

each they same-store. that getting XX up of them to take that So in to mentioned our kind we've past XX really months of the

QX, So kind I next in be into that think very of some not them be at revenue XXXX. next will in year million year But will incremental in, to we're others that acquisitions I all think QX recognizing of that of this level accretive year those even and of QX. $XX

Kevin Ellich

benefit expect from Don, Great on year or what next then, And you quantified Have usual. just beyond metrics, quality one one quick for value-based impact and guys purchasing? you as of you. sort

Donald Stelly

Yes. The answer yes. is

that, a didn't value-based that I uptick. the to sure had -- But that that inside and put what same-store have X guess I is to a we we want acquisitions select providers number drove look our XX Eric it. only have in at the purchasing want to number of We But make increase to down.

And to it the us in floor quality as Eric, color operations going we we see improve forward. are as all to to because apples in, that? for just acquisition So go X.X% comparison. candidly, any role apples independent, under those that all in was revenue

Eric Elliott

No, that's it.

XXXX. standpoint, on it's revenue So $X.X a million about for

Kevin Ellich

about done finding with there a the -- acuity function changes Don, is structural and sicker patients? just or of and also up talked the acuity Baptist you've with CHRISTUS then, that is And you anything going in it JVs LifePoint that

Donald Stelly

honestly And It's has we've of attain this really to latter. things that It about the ratings do every And the the truly that's epitome when attributable effective really, base. innovation the those on opening earnings get And SNFs that for into patient going home is you're from is and star that's done health. we're Keith the obviously are targeting. think some patient. shift We really and part call. our up that, of teams what seeing I our you exactly that. sicker because execution acuity-wise quality to talked And more to

Operator

At it remarks. to this no queue. time Myers I'll Thank in other I you. turn Mr. questions see for closing

Keith Myers

to have you everyone ourselves you. anyone will make management to need questions, Thank out And dialing the please as once Operator. follow-up you, again. Eric. on you with feel if thank you for to this thank And we if And any in team, Okay, always morning speak to always, reach available you. free

Operator

for thank conference. Ladies program. your you This participation today's in and gentlemen, your concludes

You disconnect. may great Everyone day. a now have

LHC (LHCG) 6 Nov 172017 Q3 Earnings call transcript