NUTX - Earnings call transcript Q3 2024

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Operator

Greetings, and welcome to the Nutex Health Inc.

Third Quarter 2024 Financial Results Conference Call. [Operator Instructions]. It is now my pleasure to introduce your host, Vivian Sanders. Thank you.

begin. may You

Unknown Executive

moderator and John call is welcome into Call COO, and My Health Third Dr. Hosseinion; be Bates, this President; With being Dr. CEO, Josh Inc.'s is We Today's Chairman Good and our the to period Earnings and your will is I and for Sanders, company. De XXXX. Tom today's ended participation Quarter call. Vivian appreciate morning, and Newtek for recorded. me September your name morning Bill, Tillio. CFO, Warren XX,

we'll provide questions. Our prepared team will some remarks, and then take

from Before other I can me contain over that factors numerous on Dr. call remind that statements Wu, expectations are based turn let the call forward-looking management's today's and everyone uncertainties that current to in risks, these listed factors filings. various information might differ actual expressed be to and More are and may cause release on our results statements press those that forward-looking SEC Thursday's materially in today.

measures EBITDA, and is is reconciling XX-Q later call, our call Founder this This Form over the attributable being Gill, Dr. I'll a Chief call of to information in EBITDA we With adjusted week. On financial release a and now New Tech on to replay table and providing as press -- which recorded Officer. that, will such morning's may earlier a today. net call this measure. and non-GAAP included is available supplemental filed morning's the reference be turn Executive the Inc. adjusted loss

Thomas Vo

all Vivian, today. thank you you, us joining and Thank for

start of and to Health. some growth XXXX, highlights well this Newtek show quarter revenue as continue to commitment quarter profitability volume from with would operational to a third to our growth are report substantial pleased I like We excellent the as for quarter. efficiency. another we and enhancing achieved In

same reported which compared period is $XX.X million XXXX, of a ended the X total XX, of for to equates a XX%. This we the to For increase significant months growth revenue last September year. $XX.X million.

hospitals Some same of mature opened this prior the growth XXXX. in was revenue hospitals, new during rest which to from those December and due The the XX.X% of are period. increase opened which that we X XX, XXXX, had to were

million income attributable we Newtek expense. million third XXXX. the Health on warrant the incurred a compared of net in compensation of as amount loss million $X a a On liability $X.X a $X.X $X.X a stock-based million as side, net This loss include does well noncash net to million loss of to $X.X quarter noncash loss as

positive of hand, EBITDA, adjusted on to for the Our from $XX.X was compared just XXX%. an year X ago, increase other million million the $X.X quarter.

same cash of terms million September In period our an last $X the the last operating for to flow, activities remains million, reported to million $XX.X time we cash from compared from total of XX, From of long-term year. XXXX, $XX.X year compared same of million $XX.X increase cash perspective, XX%. as debt net low at as of a debt

results. year. share moment period insights last these responsible to X.X% same the to XX.X% XXXX compared increased mature -- our increase for did take XX% to opening an liabilities, the are in due $XXX reflecting GAAP past within increase mainly months. This that the policies XXXX. million. million the I hospitals Of growth, patient due this quarter, leases our in is which finance new by operational lease some performance visit regarding required X were from slightly to XX,XXX a a over Our accounting would we facilities for is division third that $XXX From signed report to reported same visits quarter in positive like perspective, to Hospital to

the care reported work health health throughout revenue and dedication today as as want all both we that I our of emphasize in team levels experienced well a commitment that of patient our achievements we is delivering growth organization. reflect and the have micro to not divisions. The exceptional population hard hospitals numbers. volume the First, testament are to across our just to

novo Second, XXXX our recent have this opening to and up of nicely four ramped positive hospitals de in contributed trend. all

are -- hospitals inpatient mature Our growth are also also outpatient robust showing both services. and growing in

the to key patients ability Our needs is to to ongoing success. adapt our our of

Surprises department, internal solving complex Adapting NSA specific claims. are experience dealing insurers our collections post getting and in billing No NSA. in working problems to operationally, nuances coating, more Act and Third, the or with

patient. are reimbursement seeing we better result, a per As

are that we will drive focused initiatives continued Looking few on we believe strategic a forward, growth.

of novo hospitals. expansions First, continued de new

We open per hospitals on to two track between four year. are still to

opened in have Post hospitals well Bay, Idaho. XXXX, we Falls, Green as as Wisconsin already For

are track this more two year. We on open facilities to later

over about a the on hospitals hospital, XXXX, As the country these and on are to open it XX takes XX all XXXX from to to regular open requests hospital months working a already pipeline. We get we basis. still XXXX

brand our up is challenge keep need country and of most future Our that with pipelines. for demand in medicine immediate focus the of our the those on areas have the to opportunities for

expansion our mature hospitals. services for of continued Second,

aimed evolving We continue to closer population. This to all our enhancing adding outpatient needs level include at new of to as our will inpatient or services care providing opportunities as meet explore side both may our expand to concierge offerings, home. well current specialties the patient

fill having value that try the a pivot have inpatient licensed community. rules to in we emergency the to and the the as By that communities necessary as lacking services, maximum or lines we a void to XX/X service all of underserved hospital that to are actively provide consisting well to room serve

for with better insurers Third, work continue reimbursement. to

about process our the described getting do possible, continually fair to continue get as we dispute first are resolution Surprises attempts in-network better we and options. fair Act, and we -- in independent both negotiation as insurers. from We arbitration learn obtain or insurers. the is IDR to time, As open reimbursements we the to the the If this evident proceed a make a strive with bylaws, we contract financials. payment slowly If No with amount not not more QBA qualified which more as get includes fair serious NSA the or QBA well in improved

is guidelines IDR the process formal available all the that NSA. is of under to a providers The

putting we through As enhancing experience. with continue priority it to process, operational reports. more the effectively us Fourth, Improving cost efficiency efficiency. allows IDR findings proceed while future patient manage charge our as in we report remains a will operational to

are practices We streamline our processes to improve our waste patients. and facilities best reduce for turnaround times across implementing

coating address can collection and improve enhanced remain technologies patients. medical other in to telemedicine records, services whether operational it's embracing that patient aim advanced DeTillio, this building through to provide leverage capabilities, COO, details innovation tools, efficiencies, digital later. will to or further our automate care innovation to Fifth, technology. We Josh intelligence our we services committed electronic and artificial our and

able becomes more overcrowded As are to more we attractive at providing more to treat hospitals, the patients hospital available, our often micro technology an systems. and alternative patients

and awareness engagement. community driving lastly, And

hope awareness will trajectory. our within to focusing local to -- events to raise continue engage brand on build lead growth By that Overall, development, our regions. and our a maintain We creation. trust about awareness to communities will optimistic presence marketing, approach with strong services business community our sustainable of value and focused we and believe targeted that we and we're the provide.

believe corporates these In and administrators changing, constantly of states is working XX landscape Nutex and care a aligned changes. to over acknowledge and share staying and ahead physicians, profitable I and to from to Nutex to team mission results. for would great one we are vision health to as long-term to company. achieve front the the thank continue strive Health all entire of committed nurses, and are technologists, personnel, Nutex in these same We closing, to you and technicians, The all our unit create like desk all

for Nutex care been our holds aspects excited believe Health what that we very involved recognize will very special many doing a about time in feels and will what that for Anyone medicine. definite is Nutex has void are momentum and future Health. of the a long We in continue, unique is and health

financial I would turn to Chief to to like Officer, Now Bates, in detail. discuss over results Jon our our it Financial greater

Jon Bates

how and operational effectiveness improvements. of It's and strategic see good results you, initiatives financial reflect morning, our everyone. the Thank great to Tom, our

operational quarters this X XXXX Our yet the continuing showed year. each last quarter third great great another quarter, quarter results the improvement of in

We have our both in seen increased growth success controls cost top in with well as continued line as company-wide. growth

the were of to XXXX, So the September the million $XX.X XX, for our third let's opened $XX.X those the therefore quarter and -- quarter versus full to XXXX, comparative our 'XX. or million The XX% revenue XXXX, XXXX. the ended results increase, for hospitals, total third XX, mature total results September by ended XXXX. which of first third revenue for quarter hospitals of -- start quarter provided grew million same $XX.X the third are for with We third XX.X% in compared revenue versus and XX, December X quarter years increased 'XX period prior

similar the XX.X% with in the of the $X.X as XX,XXX the $XX period X XXXX quarter saw of period in reduction third in XX% visits had visits third third a entities due $X.X division the the mature same growth of XXXX, X,XXX third visits, of versus well this to the we Additionally, in the of the of million over visits million increased and X year. they Health hospital divestiture Population during revenue quarter second growing X $X division in X.X% or For as at hospitals the division XX,XXX by within quarter quarter the to million quarter quarters small from third to of in

for and overall discussed corporate have hospital the operating quarter improvements 'XX that same and 'XX, revenue and third in for let's we 'XX. represented in million costs revenue the $XX.X now expenses the in the XX.X% discuss structure total $XX.X area. of XX.X% or third facility in period of growth versus Total level quarter we or the the visits the Now cost seen million facility the only and of

revenue or cost was compared million or a 'XX. the to of quarter gross improvement revenue XXXX XXX% as of profit $X.X XX.X% total of quarter total in in 'XX million improvement, facility the our and XX.X% over revenue Xrd XXXX, of result a third As $XX.X

compared quarter other as total remain XX.X% expenses consistent same at and percentage general revenue period the From XX.X% and perspective, administrative a cost to in the third XXXX a corporate for 'XX. for the of of

hospitals Additionally, income which item the amount XXXX expense being filing, is with see within on is Note our the contribution for development stock-based under you'll of hospitals Most of be that deemed But when we that of third under agreements and reference. million. for to went of in each for quarter XXXX, $X note, third hospitals statement, a line of in in four separate for the terms that XX-Q explained compensation Nutex XX within quarter at April your quarter the that were public point. third our explained that

full stock the the additional each calculation note potential XXX% each in accrue when of get X be period. end that to which until the the will eligible third then are to up the a a for time expense. we for open a of earn-out the each now have to With period, company each. be common XXXX, the of noncash the did for done made amounted that year issuance will stock earnout stock for four and will as operations, be at that year of quarter. of X in reported payment based years, $X.X entering that final earnings second in hospitals quarter So upon these And And we compensation trued which of and million hospital hospital, receive of we to they their earnout onetime been as hospitals began

Health expenses side compensation Population the as which the health by compared it million little divest regard move of quarter-over-quarter. With of as income, the Population I did as Health a in the an revenue million operational was the above, including third $X million noncash on third $X operating QX second operating did entities comes income, discussed. $XX.X to million smaller that division, negative XXXX, operating $XXX,XXX $X.X impact quarter, previously, we had When did impact business third the improvement two noted and around of forward, include XXXX but that quarter loss to of 'XX, of of to we the in for population quarters. mentioned stock-based impact we very of in representing

$X.X 'XX, for net the $X.X as loss net million on the above for stock-based million by Nutex but attributable $X.X to The Nutex million of million liability million was negatively XXXX. the comparative of expense. loss the noncash was to noncash loss compensation was $X.X Inc. warrant attributable quarter the noncash and for two $X for mentioned, third items Now quarter noted third impacted Tom

So quarter $X.X from of of the a the 'XX noncash 'XX. items show 'XX million in removing all effect quarter-over-quarter would million the to the of improvement $X.X third way

Now impairments excuse adjusted of quarter XXX% those from $X.X did me, noted of Newtek, two $XX.X in increased attributable remove to above, second the to million third in XXXX. 'XX EBITDA effect -- $XX.X which million third of the quarter or million quarter the noncash

in revenue the hospitals their versus the $XXX first or Of million So X the ended to first by XX, ended 'XX versus same revenue months X now XXXX period for months million to increase, to September mature total million X compared X for months $XX.X $XXX.X grew of 'XX the Total months months the X of for on XX.X% 'XX. 'XX. 'XX. by XX% first increased revenue the the of

Additionally, X.X% third 'XX entities 'XX during in had in The from quarters visits the to the that versus or XXX,XXX with 'XX 'XX has the visits the the in two first same months same saw X of X.X% X in small visits period Population million growing within versus X of to as in growth a by XX,XXX in hospital revenue the divestiture the $XX in months division months Hospital visits of growth the million at previously. and September visits period period similar second despite Health ended 'XX XXX,XXX $XX.X first XX.X% mentioned increased of division same 'XX the in mature division

$XXX.X the to XX.X% the the total revenue visit level to of in versus months revenue compared costs above, $XXX.X for million or growth X facility improvement September noted period of corporate 'XX facility ended operating 'XX of X for level also or and showed for 'XX. same expenses represented the first and first XX.X% addition months In the costs million months Total XXXX X

for in into $XX.X million to the The $XX.X ended revenue. it relation XXXX profit gross So months revenue, total represented a was compared of XX.X% of decrease September XX.X% X or as only XX% revenue in 'XX. months compared the 'XX in same or increase same to 'XX, X for a total the ended million represented XXX% which of period September period in the

decreased for Net $XX.X statement. was the impairment in the four our with to of see a loss of and million a impairment and related other period or of XXXX. $X.X even comp same the XX.X% first to X of the X corporate for million income expense, first expense to on X a the from of XXXX, months million or months in million compared liabilities Inc. improved perspective, in of G&A XX.X% X months percentage a million by $XX.X the income goodwill you'll as of From cost X as ended noncash XXXX. items months Nutex the the to loss revenue expenses XXXX stock just warrant total for to XXXX, loss a September of loss of ended million in September And attributable September $XX.X $X.X operating from XX, positive operating the of an assets, loss for $X.X ended $X.X months million XXXX,

negatively And loss by this million. those $XX.X impacting

EBITDA months of XXX% a above, $XXX,XXX. first attributable effect So $X.X and four X-month to of Health increased impairment show the to the in the the items, $XX.X removing first which million the the Inc. over noted to in months million removed period from Nutex of $XX.X XXXX noncash of or of company four X Adjusted these 'XX. items to number X million noncash just attributable positive net would slight Nutex, income netting for

balance the our income about sheet. statement Enough on

to $X remains regard sheet compared of million from of operating at with end to XX As you the see, XXXX. million activities increased X ended September $XX.X equivalents at million strong only the as very cash With period XXXX. flow, December months the and Net cash as up $XX.X balance cash same September $XX.X million of for million by in $XX XXXX, for to $XX.X or can 'XX from million XX, cash the XXX.X%

decreased bank this machines. $XX.X XXXX, for such related hospitals $XXX,XXX as to the to December debt total XX, our debt down equipment loans at X-rays, at liability million $XX.X at with by XX, equipment September of MRIs, from ultrasound the items side, million XXXX On our majority CT

slight this but our relatively decrease year-end true a a from operating is And is overall the debt a amount of for of size. balance small company

of future are only of financing and The materiality equipment items our look liabilities And bank the so this operating just million related normal that which that to our hospitals. other like are of lease on landlords balance debt. on lease outside to liabilities, $XX-plus sheet the the payments type

Now which the years. lease the to and sheet XX case inception of XX balance of payments result. reflected we to and be the accounting rules the then in landlord a lease these back that lease, because aggregate and entirety for each on the payments our are the asset for anywhere liability all present for of each leases to us both right-of-use of balance pay require that right-of-use on could the sheet a to correspondingly record total lease the those value between

assets. net XX.X% right-of-use XX% total to at on assets balance which is result, $XXX.X the is liability million, XXXX, and of million, September balance financing $XXX.X for and wide-use financing for to amounted operating amounted a As XX, and the asset sheet the operating the of balance the our liabilities liabilities. net total roughly which

and operating and view investors right-of-use real don't these analysts now reads So assets debt. most liabilities as

to Warren discuss we health clarify wanted I that With over turn business. a now population -- lot. that seem the more you to that, to get to since question to it So I'll about

Warren Hosseinion

this we've division the population seen XXXX, our everyone. in outlined third quarter John, quarterly I'd to opportunity of health good in like and discuss morning, you, results our the to take report. and Thank as management

Our at Population overall in exHealth. division Management Health our New is strategy important

division providing improving solutions As patients. aimed the at focuses many of care health integrated this you are aware, of our on outcomes

primarily through model. networks independent our our operate to physician which for IPAs, central We of are associations

ended X September Management $X.X the reported For total XXXX, division Health months of Population the approximately revenue XX, million.

a this numbers. period the in reported behind the decrease is slight same to of essential million it compared While context these to XXXX, understand the $X.X marks

were in these As the X Both to of earlier, earlier revenue decline unprofitable. the sale is John subsidiaries year. primarily smaller subsidiaries mentioned this attributed of

top line divestitures, to space. bottom health these these our our closely competencies efforts patients enhanced within population temporarily growth. arrangements Although impacted allow the and more demonstrate strategic management We on concentrate under just value-based they core with divestitures will over Adjusting us results, for population continued our line care have our have and core payers. multiple XX,XXX health now objectives to manage

emphasizes The division quality enhancing navigate health managing environment that risks the to value-based costs. increasingly of patients critical on our particularly is as care care provided focused and This we and while is strategies. population an

One is best local resources, our fostering can outcomes. of behind we on these collaborations, practices trajectory providers. health care that our treatment coordinating aim building a share positive the physicians to expertise By key in improving network robust and chronic drivers emphasis with and create relationships diseases care and managing

care. we services number not the to only focused of patients organization, expand us our enables working and existing thereby services, are enhancing launch approach better strategy, population patient to under management health and new continuity increasing of line to growth it serve the collaborative enhances actively our physician and groups. our Furthermore, This IPAs our but engagement IPAs our are we framework. In our support with of capabilities ones which adds we value

financial economies over into achieving to integral improved that translate scale of can is expansion time. performance This

division population. due demonstrate more preventative business a our strategic just aligns The for improvement In in solid health mix. become Population individual to forward, revenue management will Nutex growth move contributor Health model. temporary decline and underlying reflects we divestitures, for with initiatives an a the address growing health landscape, seeks As population increasingly even management and events, results to today's of Health but the to our on not overall care the well-being significant the well while care Management foundation patient initiative focus overall conclusion, hope health which holistic revenue that we

I ability optimistic and engagement it I segment. patient remain over will about Josh that, to our this drive turn key performance now. to both With financial in

Joshua DeTillio

third about the and Thank Health during Nutex quarter you, with to XXXX. today operational speak of strategies Warren. appreciate I opportunity growth cost efficiency, you endeavors the

our is this for costs industry results efforts of as in volume significantly costs and control significant far hospitals, driving have especially so yielded I'm in many year. operational efficiency critical have supplies. know, to pleased As you labor that our while to increased report

We that contributed our several efficiency. measures cost-saving to greatly operational implemented have have

we contract Over have and the on primary labor closely and successfully hours care. services three efficiently, past compromising patient scheduling staffing By supply focused few labor management, monitoring costs, quarters, areas: optimized costs. chain without we

quarter more programs labor incorporating software including to year, in live the to labor of and procurement quarter the XXXX. which efficient are live that the software, a first a more become this solution an and is for went software in analytics projected help HR of We in go quarter second software with of XXXX first us scheduling

As more and hospitals, our to need programs and achieve more grow, metrics this. transparency our we will optimize to these tools us give volumes

inflationary For active resulted savings supply notable us and mitigate of helped management chain in pressures. has has our

contracts our alignment to year or a rate. cost with and GPO deliver we aligned run organization, and reduction in XX% supply have supply prior at a suppliers XXXX group from purchasing primary experiencing We for this least our are

cost continue Contract in This but savings for rates and supply going new will reduced Services, our will -- on is on also discounted be the forward. all and we In there to where pricing. bulk as existing incremental hospitals of be appropriate rate hospitals standardize for new our pricing hospitals, GPO

shredding supplies, and waste management pharmaceuticals. facility like services, DME, areas maintenance, We are looking at office

on We to but go. have of more a number initiatives, executed have

as cost whole continued local renegotiate the XXXX. very focused company local been The on hospital has to teams contracts in have

initiatives. we're strategic these In seeing addition due to controls, cost growth increased to volume part in

visits. our XX.X% X.X% local hospitals leadership our was growth visits from increased both of mentioned, of for is the XXXX across facilities. up X division which total were first and marketing This mature direct teams XXXX, engagement business reflection in and up of XXX,XXX, previously strategy development the months a Hospital while As our

business services has and enhance with offered. pursuing been care and health providers Our development grow team mix our groups local working and to actively various relationships of

relationship of software. to enables and One both data relationships customer is engagement program our strategies. we've new to This strategies us manage effectively perspective management the developed refine patients more utilizing analyze existing a track outreach with and

helps We've also have relationships to fairs placed engagement. our family. about helps whole as and By only on within fosters participating Nutex directly a the through on and engaging our emphasis educational health trusted but able services, local awareness in seminars initiative position strong offering communities health raising and volume goodwill in serve. visits drive community with repeat strong community the we This also various referrals Health for health been provider, not patient we topics, build a

strategy. tailored across our community's on-the-ground This Our our decisions quickly needs. been to has leaders empowering our of needs their service Their quality to local pivotal our insights decentralized facilities approach an allow care. make leadership to commitment to demand teams delivering enhances important success, and our adapt to fluctuations the responsiveness and in have supports been aspect us

maintaining Looking are efficiency. operational of and trajectory we this to forward, committed growth

management by to our of will needs transitioning new we opening existing that As cost we prioritize health meet we expand footprint the ensuring continue and our operations, communities. while facilities

promising for growth, leadership with Health. engagement community volume combined In strong summary, a costs Nutex and and shaping strategies our focused future managing driving are and

while top priority we enhance at excellence keeping strive as a operational to of the remains commitment shareholder patient forefront Our our efforts. care to value

over questions. I will turn to back to moderator, our Thank open you. now line it for Vivian, the

Operator

Josh. you, Thank

Maxim, as call, as Benchmark Sutherland our now we questions. the will their well Bill McGovern team from from On the ask Company have Thomas who

William Sutherland

I guess doing? How is everybody It's I'll start Bill. off.

Thomas Vo

you, Thank good. Very Bill.

William Sutherland

quarter. -- Good. little you're kind hospitals Good timing as quarter about thinking fourth about how the to seasonality a it, quarter. seeing the particularly in the and bit, of patient of I in think two visits seeing the interested you're wanted fourth the new

the seasonality positive I comp. think you as get some

Thomas Vo

Tom. continues second is our first and yes, No, volume, and with it. flu through typically the answer seasonality little This could higher definitely, quarter colder have then bit. I business Bill, third And quarter that have this. does fourth being season quarter. dips a to

we volume. as So in for warmer. sure, know, terms little fourth year, you bit better in the been But a quarter expecting it's numbers are of this

upon sort will because typically, So same us the been of flu that, come season yet. it's every pattern. the having said But year, hasn't that

William Sutherland

are be, the Okay. I of And the guess, your quarter hospitals new two near going to end the ones. than

Thomas Vo

Yes. two open in projected November new ones are December. The to and

William Sutherland

Okay.

On noticed year. outlook last been it's your forward guess, CapEx line, this lower I What's CapEx, the it's been year than lot plans? a for year-to-date very the Jon, I -- going given

Jon Bates

this Yes. indicated think more then in talked think more, as later that average, year. go you'll will adding line, we we potentially, this see solid facilities. two two opportunity up But I the we as one up little opening that as place. I on pretty those And is real Tom X mean facilities, and I in anticipate equipment be everything that of of right, had adding we about, year being that right each open through of a definitely X certainly we those as much a and in bit getting we to I now, the somewhere every go, we we've range. year, would for going But that process those this in have as

as this before know, we the have where equipment put open. to before, you in months something you would probably And talked some of about

some you do MRIs can you but ahead some there's around right of wait opening, several until that machines, those So have months of to there's and time.

So we have to plan for that.

quarters the it with a be over little And would anticipate bit should But next I continue consistent watch uptick, so it. of line. that I we'll in think to couple an of

William Sutherland

arbitration degree to And then Tom or longer arbitrations, which then little the negotiation. me. but near revenue on that NSA term for you're more us I progress not with on about last the just your Okay. more color the give guess on that, taking can a And arbitrations term? and impacts has talk the

Thomas Vo

Yes.

June. of end, side, started going on the our an arbitration as money the then well. We so process from for it's we get from So bank arbitration months completed it And beginning whole the takes the to the if enters X about to standpoint, win end process you know, or at account. where

So out. we're to trend going well. that have on trying and is far, we're so still working the data But still some still sort we that,

And with data published results arbitration. far, regarding out consistent there so our are

more, Nutex and the regarding lot of But the second success year and definitely we Health. -- from our will know first a and we when in experience our quarter fourth quarter report the arbitration hopefully, with next

William Sutherland

the us data remind you has industry-wide. terms been of Could what in

been it's pretty high a think right? success rate, I

Thomas Vo

Yes.

So available a of rate industry, return to doubles that data, the what the is almost according they essentially that's XX% shows published get XX% that they get initially. the data win roughly for and provider of to publicly

what shows. so And the data that's

definition or X is And so again, win roughly that is after June the once the to so get was our or X to still months pointing and insurance the arbitration still the to bank. has pay months it's of money arbitration, company similar again, data. ago, binding. you in And even once we're trend and take only very because it maybe far, But does early

we're actually we this, we a company since waiting get kind after knew to that happens the even still what result to we at insurance with win what as so see And favorable all and information. does of

know and -- and quarter we'll So more, next quarter. hopefully, this a lot

William Sutherland

claims into arbitration? one more How Let on if you me this. of putting percentage I what -- -- are could sneak your

Thomas Vo

our between time. find to insurance are what standpoint, Yes, first the the low company relatively paying XX% From that is we XX%.

IDR we the we so there, initiated we go then open we arbitration. And process can't And to And negotiation if the first. go then negotiate to process. through from

definitely to that process. approach there's So stepwise a

Do straight have you to open to can't So negotiation. go you arbitration. go through just

William Sutherland

to going the process, entire not So relates through arbitrary. the XX% to just XX% just

Thomas Vo

right. Yes, process Entire

Unknown Analyst

Tom Yes, McGovern is This Group. first going performance congrats quarter with -- question, guys. to Maxim so touch the Great there. on

So on asked one hospital of first question, on going opening. the I'm to the earlier questions piggyback

you by that open guys on So the it end had clear sounds the pretty like XXXX. will two of visibility

a time the one of model to these your for I though, curious, business can Just augment the mean, pull have that things openings. is you line about of that lot great levers

end might will push fairly that that opening now see occur that you of anything it into confident there December the Or is the by curious, just 'XX? I'm are So year. you

Thomas Vo

for so Thank you you team, welcome for thank us. the and question, joining speak. Thomas, to Yes. the to

question, the so from have in first certain. already to is opening the answer November So licensing our state. We pretty

have team trained. all a the -- assembled have staff we We

And relatively track this so is opening on November. month, for that

to that second and located in as is had few weeks slightly I back not hurricane hurricane The think, with else. and where opening, your with a And pushed Florida, everything a dealing is the the we question it reason is that everything certain.

have hopefully open to essence, are in few so still that And push but December to by to your a track make to on there point levers happen. we we're in that order

fared open The And XX have very hospitals a to that But to our hospitals. these most pretty do for that. we've to the most note, by Texas, that withstand there's in the did Louisiana, operation way, is our Florida. our mean, could anything And And hurricanes going just we're built to are damage about any be not that a part, much probably and able I the at still that. throw hospitals hurricane different for nature optimistic well. part, past us. been we're very, the really the And very in reason for reason now in with side

And everything the this see be still typically, that at is the structure to patients so can least out, wiped want if hospital and we last state the open is afterwards. hospital standing

Unknown Analyst

Got you.

hurricane you guys So glad guys the Yes. No, managed relatively I through absolutely. you hear I'm get that unscaled. to

Okay.

very to terms helpful. XXXX, we of should maybe you like might on but around visibility second? on what these do influence of year, good four four guys as deal be in Should at a more expect expect Or then guys year, the openings per openings cadence? these be the look a of have Again, in we looking of you two you that the 'XX. of the Any in first, think maybe staying three one to we timing been expect X/X openings, hospital weighted considering quarter? it's that that could hospital So would four we have in kind

Thomas Vo

have or in we would have in should think for I three first second four on then 'XX and We 'XX. of either say, we terms just of the will -- in No, from 'XX. cadence -- open, the planned of at Yes. quarter also, I 'XX, hospitals like end

construction speak. four essentially we of them And under as so are all

depends And so it really, just construction time. on

Unknown Analyst

you. Got

Okay.

was something on of things driving across was guys the to have guys and the you your you -- called seemed are it's out of volume is one hospitals. have services call great the then introduction so So which that patient higher new of particularly hospitals mature mentioned earlier volume, patient very successfully, done capabilities see to seeing portfolio that

past I'm alcohol, just or did missing correct disorder. abuse just believe, anything substance in now, abuse curious if you introduced but some there's guys, So else you behavioral for health I particularly I'm me guys specialties guys here, the year, you

And guys overrun. VA with have also the those then when hospitals in the past you are worked

are new if So customizable seeing with facilities communities. different across you're great I'm maybe in these the needs. it's openings, of to community hospitals that your to and very curious these meet see your some trends

introduce services you of to that be that new you on QX or kind in in But 'XX? have helpful you're color looking add outlook. or identified any for Or our visibility could would any

Thomas Vo

lot And communities try problems. communities solve see the different also. we for to But different innovate. solutions and in Josh in no, And that these of we being and trying each thing chime always it. looking could needs different always states about to probably great a the of We're to localities and Yes. we're of is

you depression, this?" all say, with us so alcohol abuse "Hey, a us are as or can detox, treating health those behavioral result help opioid the and reaching to detach, of out And substance community --

hospital try we the a with and and us to can. pivot this, to do most lines. so much service to our of work And as being pretty with them all nurses those with tools much local physicians licensed to as -- resolve we

sort again, innovating, of problems the ways other behavioral like community. and looking of the the health forward, was some for to going genesis of solve service that we're always so always the once of lines. And

And so now we're looking at PI, personal injury and taking care of those types of patients.

wellness like our hospital. and solutions our states procedures a are community. things health looking procedures starting the hospitals, we're in looking We're We're all once again, few at that. doing in a few And hospital do basically at more these at to to

any so point a relatively pivot, think directions. And And many the You because line -- we're our need is ability is right? we're the we and we the and community to have so of the drive can to for hospital and in we car, and solutions on create that and different car organization, it solve need our problems could a depending move able different in that it flat like communities. a of to, just direction pivot

Unknown Analyst

I that appreciate response.

trend expand achieved. guys forward on question Next looking kind some of guys And going to at are is of you network. that how to have then savings the you cost as you your continue

So you chain the labor specifically Josh, cost services. called guys, the supply out and contract

those on bit your first, cost. you do do And detail what go you labor -- is just for to maybe something you what the a further high maybe opportunity level, more little cost think see could guys if greatest the So as that of you three, then structure? improve in

fourth 'XX. were mentioned You 'XX or between about going early quarter maybe that was software implemented it were to two the and that there be

implementing So about to a could talk just what bit hoping and these of services. you that specifically software by you're kind little achieve maybe if

Joshua DeTillio

Sure. Yes. This couple is things. of Josh. A

really So the really all that's already a on three big than executed items. the as buckets number There's of opportunities. not view We've one more we others.

that their labor as and coming where able as the scheduling which so efficiently, communicate us and labor will a we and more last volumes better very is insight more into had, really labor really will HR bit a then daily as are procurement is the labor we able standpoint. give our software, In software teams one implement, then better the to entire I the staffing terms software will operate next already software, schedule well to mentioned, volume. little be one staff we to lean And suite a creating teams a of the optimize trends the being analytics we hospitals an metric tool from the

get So then reduction, reduced across that's and as the heard mentioned already And I there pretty some of chain, we're really but the ones contracts the services to on there, leveraging our board. those that really type discounts are with And you significant always and at much contract pricing there. improve opportunities XX% looking a we're at the across national about scope board. size really to supply

costs. on to continuing we're focus So

Unknown Analyst

interest Got question you. entities. then very helpful. be just That's last And my variable it'll the on

variable the lenders. through that balance balance on guys those them. sheet still with and you on your and discussed entities some call, you from sheet sheet? were were two spoke, conversations we successful to interest why you in in guys XX were -- balance discussions your explained removing there there time to were two of guys I active And have know remove you So the the with -- in lender carry last

So discussion to any when from expect sheet? just to that, curious on have be we had if if there's could balance indication any or progress as you the been any those guys removed

Thomas Vo

progress essence, us And already of that in by are the two the in these they of we've in in trying made Alpuquerque, a lot No, facilities. told Albuquerque. remove the to the plan bank that year. Yes. remove of has both those And two hospitals end to

but to intention we're bank, where the it's So that up by remove is the at. those that's Once their of confirmed to end the again, have they year.

happens. what So we'll see hopefully.

Unknown Analyst

to you all That's my the great time the hear. appreciate I guys of again, taking on answer and questions, all Great. quarter. congrats to

Thomas Vo

Thomas. Thanks,

Joshua DeTillio

you, All Thank thank Thomas, Bill. right. you, and

Operator

please investors@nutexhealth.com, send any If for best to in there available There third call will are us. time. on in our health questions, are additional of a and On our an website timely to management for we do quarter this report. and questions care, everyone of behalf Nutex everyone. our earnings a we no additional for A recording to manner. will appreciate e-mail be limited the Take listening answer dialing team,

Thomas Vo

everyone. you, Thank

Operator

We does teleconference. This conclude your you. thank for today's you Thank participation.

You this time. may your lines disconnect at

Nutex Health (NUTX) 8 Nov 242024 Q3 Earnings call transcript