EHAB - Earnings call 2 2022

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Operator

Good morning, everyone, and welcome to Enhabit Home Health & Hospice Second Quarter 2022 Earnings Conference Call. [Operator Instructions] Today's conference call is being recorded.

If you have any objections, you may disconnect at this time.

I will now turn the call over to Jennifer Hills, Enhabit Home Health and Hospice, Chief Investor Relations Officer. Please go ahead.

Jennifer Hills

good and Sarah, you, morning, everyone. Thank for Quarter XXXX you joining Enhabit Second Hospice & Health Earnings Home Thank Call. Chief Chad With me Chief Carlisle, and Barb Jacobsmeyer, Officer; on the call Executive today Officer; General Counsel. Knight, are President Financial and Crissy

will On already supplemental are if quarter the the release. also website available find supplemental and on not release, information, filed X-K enhabit.com. a related copy, our last Before we greater Form statements, do Page with page harbor have the which begin, earnings forth information you the set you X detail second of earnings the the on safe at of SEC are in

earnings During cause projections, the to estimates on to discussed Certain XXXX, and differ including our the which filings, related June X, our control. statements, uncertainties, actual you XXXX. materially will the and from in June are expectations filed are are statement them. and forward-looking uncertainties registration that beyond results XXXX XX, risks X-K, risks call, to company's could We the May amended subject XX on many encourage we release Form make and read as SEC and XX, of Form which

to as estimates, only not of undue cautioned events current today. these on to presented, do statements. You update are which based forward-looking speak and reliance We projections, undertake on place other the guidance are information future duty a forward-looking estimates and not of

will certain Our and supplemental non-GAAP financial this information measures. on include discussion call

of which on turn supplemental the to the filed I'll the to as the available SEC, information reconciliation Form and [Operator that, with X-K the directly our is end all part at earnings release For Instructions] With GAAP of the comparable available over of most the call of such Barb. are website. the measure yesterday at end measures,

Barbara Jacobsmeyer

today Call. joining First everyone. Good for for us Jennifer. Thanks, morning, our Thanks Enhabit Earnings

our impact these experience families me our the of e-mails They by the and our very as so rewarding to work the to their patients is families, Encompass our over receive Enhabit field stories work patients our each sharing begin year recognizing particularly calls day. past on staff. from lives. towards I'm and about our me letters, from are their months It Let over and X has the entire and we Health. X spin-off proud staff past team's with made

a time all been has of busy It us. and rewarding for

for excited future are We focus are on for be as patients. our long-term care holds and proud to the a we Enhabit, we to way what better

growth prefer We potential are in for in more in more the homes. as Enhabit seniors place and confident their to age

a CMS update, Now by would payment proposed result rule. its in let's market negative June offset XX, includes cut for discuss for X.XX% would XXXX. permanent X.X% The approximate adjustment reduced home be health an impact XXXX, partially negative rule by a behavioral published On which adjustment. assumption X.X% the proposed basket productivity a X.X% that

includes from proposed assumed $X of for language around XXXX additional overpayments and clawback also a rule the billion an The from XXXX. industry

with disagree CMS' interpretation opposed approach, these strongly to resulting are and and We cuts recommendations.

are and with along pushing industry its trade on partners, associations rule. hard Enhabit, this back

working to Hill supporters cuts. Capitol We are these our currently with mitigate on legislative

Collins, was Health Act. last Democrat introduced permanent Congressman, home implementing Home identical Michigan; to Debbie the of adjustments from The and Democrat the and Maine, Congresswoman, bill last Susan Senator, Monday House On in week, introduced and by Terri prevent to prior access the Stabenow, proposed Senator, to from Florida. preserving immediately Alabama; An Republican companion Republican Thursday Vern CMS XXXX. from temporary from would Sewell, health bill Buchanan, from

thank like CMS of industry. for industry them to to for health. determine to budget opportunity only approach home support more for to This time refine would neutrality this years to the their legislation, in proposed but for the also would not work I ongoing allow with take introducing its this

rule was acknowledged year the trends hospice over the it proposed an rule. hospice, increase XXXX, For for released for higher a and final payments inflationary fiscal X.X% and update provides

adjusted Now Enhabit. pandemic. XXXX Net a compared revenue We million. for as XXXX quarter into was knew to XXXX for X faced get the EBITDA of rebounded X net $XXX quarter million let's of adjusted country from the quarter as $XX.X year quarter $XX.X revenue comp for million, the in $XXX.X X XXXX. strongest the million This same second and was that quarter of EBITDA of of of of difficult COVID period the with

in impacted less increase our re-branding decline with in availability time in staff paid PRN in health the days our as the challenges of with use an both eReferral and general vacation home for year-over-year, hospitals. coverage, coupled of from emissions decline quarter a factors Several acute for impacted hospice, systems early and including it off, admissions

Regarding paid days off.

X.X% paid in year-over-year. use increase off field of the side, a experienced On the time service clinical we

we from a side, increase. We sick employee sales the PDO are time. to versus and top engagement experienced excited use is finally travel and our quarantines for know balance work-life that fun staff On feedback priority, X.X% a and

visit commented In shortages, a off ways of have priority for be extra staff our but care health find PRN have our this plan how We with great of not PDO usage. to times patients plan off the time time to care have Staff the top difficult labor earned. these to our pay but some use they and is give time we off. actually is, providers, for covered taking should of

basis. a worked. per members are commitment PRN of visit staff those staff hours on when-needed for on multiple specific companies. are staff with PRN staff Many work members no that when-available They have a rate

stable, number we had referrals. due of impacted has mainly This our XX,XXX conversion clinical been the staff. staff of PRN year-over-year PRN the PRN visits less Although availability to of

paid FMLAs, sick have staff to time cover role staffing important and vacancies. off, PRN an time regular

competitive potential need that market happen. team determine compensation and compensation may evaluating Our adjustments to to is structure currently each in

care re-branding volume in early facility-based referral systems referrals these of These providers admission increased the simultaneously. numerous relied temporary on health to our electronic electronic an with to the have pandemic post-acute quarter. over have impact grown to Another send number was systems providers our impact the systems of as

to Instead electronic of use sales Then to care planners to handing to them, and various a patients find send home discharge providers. ZIP faxing systems request work planners these transition coordinator the providers or few the discharge manager account a providers. code the with the referral a the patient's or select the a health in

timely accept a and that each Enhabit of the was work we link Encompass page and was with to and them can critical is a respond would saw ensure previous discovered location referrals by to companies us in the that successful these to referral additional if had It decline selection manner creation a we In Enhabit. April, you referral. direct there electronic the needed

of eReferral referrals All was these normalize. eReferral systems part we now saw temporary have been and decrease admissions in The hospitals. from issue updated acute in our June,

came of from impacts at Additional at COVID elective acute the volumes hospitals significant the in year-over-year decrease patient facilities. acute and decline

the is Advantage total flat our shift mix electives of relatively has of patients with from in higher our Medicare centers. as were mix coming Our year-over-year impacted surgery elective there a surgery the payer shift admissions these This centers. ongoing

quarter. EBITDA sources and our impacting payer Medicare, our outgrow grow for The Medicare referral We that increase enrollees and is home our continued volumes so adjusted we these experienced shift traditional margins. to our both in mix Advantage and total admissions meet patients we must XX.X% in episodic a patient can in continue needs this non-episodic non-episodic health.

over team new lead this at payer proven focus successful in the our we payer DCEs. innovation In past, years to oversee the and our organization payers. table term leader promoted value us ACOs already on To the has proposition her been very focused our to to negotiations. with our a opportunity, several team. contract She address talent with has this contracting a innovation national Adding selling

goals. in can we be and our access hospitalizations. now in work we need to are discussions the and for We gaps our high or The need better health reduce for on assistance more to each provide, home Payers services mitigate quality members managing of their towards to fairly especially care. paid collaboratively ability timely how

are these but in initial pleased We early reactions. discussions, with

and admissions both experience a We by of quarters. years result June clinical In team our hospice sales in EVP Turning have year her of talent Hospice. She months, XX model care climb our sales June admissions to that continued steady Revenue referrals an she of with process. lower in X this first and lower July. in first great with the our declined a to for opportunities a an of X in as into over comes operations. has in increase diversifying us improving We hospice. added ADC saw in and identified driven to

experience year we versus With will health nursing quarter and XX referrals our hires We hires. increasing continued new in this new admissions and in as home nursing net of hospice, had versus X improve progress our X year. XX last quarter net in both XX in

Our have vacancy the has remained compared year. We nursing around rate currently over XXX past year. XXX XX% to stable last openings

the remember is denominator positions total of that important static. to It's not

promote grow of on constrained clinical That's we the focus why our leadership of we number we As locations. we and some into roles, staffing create as openings. staff additional

in resulted constrained locations. a have staffing the hires new net number in of Our decline total

XX quarter locations XX health the and first with hospice with We We second to hospice due exited locations the quarter constrained. home staffing. constrained health locations XX XXXX and of home exited XX

we currently, XX home due We and have to progress to and hospice health constrained have locations continued make XX staffing.

We staff our will focus recruitment. a hyper maintain clinical on

perfect staffed available XX yes in XX we are hospice local focus on this, sales less have our currently need are their a hiring member role. count health position and feel to we less year-over-year. in success There's new sales. home say this team science a and can net progress in We sure capacity, sales no have head to with to and nurses, so in make but However, now branches in

home in where and very in clinical We are growth long-term health capacity. We operation is a built teams. the focus sales our hires these growth confident for we hospice. talent remain focusing clear acquisition, the potential Organic have for and markets

growth acquisitions novos de in our strategy. key to Growth and are also long-term

of de We continue our have towards goal novos XX. and year-to-date to opened work X

and Our outbound around development pipeline has calls. increased past Clarity our Enhabit strong of calls has spin few acquisition inbound the acceptance the months. over our the experienced and growth

our we are million confident to We XXXX. goal $XXX in of in will acquisitions $XX meet million

team assembled. we management have of I'm the proud

We of challenge our that blend Enhabit XXXX. drive is of of important have results Every long-term of tenured actionable towards with strong, we leaders new we back experienced cadence success. followed look and actions identify half The a the is these great will plans leaders. as

payer of the time. Some drivers innovation critical and acquisition such and retention talent as take

revising drivers, other and these guidance. on we are Based

high from improvement Our to mix end performance home to assumes end substantial EBITDA of into The XXXX episodes of X $XXX back We payer year. the see our health in includes $X.XXX of more guidance to will returns our in our X adjusted productivity levers. ADC improves. and for updated the guidance and improved quarter improved go quarter various low billion revenues on half the million. $X.XXX or billion assumes the hospice million of Crissy higher. The details levels completed $XXX growth no slightly,

With that, her. I to will it turn over

Crissy Carlisle

Barb. Thanks,

too segment numbers, Before we as the of setting level differs from the and Health. supplemental presented into information far little to want I our presentation historic financial a a our get as earnings how release in Encompass to slides do

Health. documents posted and of that a adjusted is adjusted on filed reconciles EBITDA Encompass our We supplemental the EBITDA as part stand-alone of the on as X-K adjusted schedule website to of That includes carve-out EBITDA of information a XX Form an historic means in segment slides on as accounting. Encompass these Page basis Enhabit a yesterday company. a provided allocation overhead financial of our The from presented our

costs million half a estimate X, stand-alone guidance company. the will the XXXX. XXXX. back $X.X being we to for net of will quarter separation, the million second allocation of million $XX in of $XX use in July we second to of of For post with XXXX, our $X.X range overhead quarter be considerations, previous the actual compared cost Consistent was million stand-alone Effective the

some additional the provide me let comments Now quarter. on

of mentioned, payers the slow home recovery was was of quarter XXXX continued to this world hospice of and a year year sequestration, more as In the resumption the as health, First, partial attempted quarter to shift quarter second non-episodic in by of last the the Barb in inflation. impacted second reopen. contrast, strongest the

second the health partial revenue in sequestration $X our quarter in of and in The hospice. resumption XXXX, million $XXX,XXX million decreased $X.X of home

In addition, to program a our an our of part and reimbursement mileage is mobile workforce. important ability retain attract

In that employees our mileage basis pump. rapid at our increased reimbursement increases to late and updated we second mileage on formula our quarter, In of and year-over-year. fleet monthly to committed would examine million the year, a costs we March prices reimbursement the this due $X.X the gas

X.X% to the In grew In home in second our during strong our non-episodic admissions decreased health episodic admissions increased our continued XX% XXXX, visits quarter. home by in due and primarily segment, offset year-over-year, the total a non-episodic health admissions quarter growth reduction of admissions. XX.X% almost to total year-over-year of

In approximately XX% estimate on EBITDA second quarter patients XXXX, non-episodic $X We XXXX. shift this the the of $X of comprise total the of to impact during was second mix quarter of adjusted million million our payer revenue and visits.

discussed, And value pleased volume demonstrate proposition Advantage are with we we these our taking as contracts. We our as to growth. payers Barb are to our step continued Medicare negotiate

clinical increased home primarily year-over-year reimbursement, contract PDO increased staff associated XX% increased increases usage, costs due for increased mileage lower productivity, and rate and to visit nurses. per use cost in market of Our fleet with health,

segment, In primarily decreased challenges, to decline admissions to capacity and our due hospice year-over-year, in XX% staffing leading a constraints referrals.

with [indiscernible] our X.X% These to with daily addition, cost mileage factors increased for increased to associated due census. clinical day of primarily rate contributed care throughout costs and year-over-year, our and planning. most quarter. use patient associated the XX.X% in lower Hospice outpaced a decline reimbursement average In our productivity, of discharge costs per admissions fleet

Let's now balance transition the sheet. to

$XXX our liquidity. XX. a the We on facility Health. $XXX approximately net a proceeds we these million we $XXX was available million revolver Encompass a distributed Just approximately includes that million Loan million of The spinoff, $XXX on full into prior to A. entered credit to At credit leverage and facility drew Term quarter facilities from end, revolving and June $XXX our X-year was X.Xx, million had of X-year

environment year expected. the the conclude XXXX that reflects few fact current comments and have than to This guidance revised with operating been our slower full volumes a I'll regarding guidance. challenging return

cost an the impact year to and approximate the we sequestration year full overhead resumption $XX $X own. includes the half of from back in range reminder, million company as the a up of on As stand its $XX million of to the continue additional million

full some slides, listed of of XX considerations year. supplemental Page On guidance the we've the the for

very health course, Salaries the the health side, costs the are is will controlling payer We mix. can risk benefits must XX% markets. home On of our our In service cost in And and home hospice. in while costs ensuring and those and volume risks visit in XX% hospice, per per around the of manage volumes. be of volume also to around cost important. and recruit represent day we our demand retain staff

of costs, as our our and the reimbursement increasing each prices, will year-over-year. estimate million discussed, are on addition, drive year. we increase costs, driving cost Based gas our our already current mileage on In millions miles not prices $X.X fleet-related including approximately based gas clinicians

free XXXX. $XXX flow, and to in regards $XX In generate expect currently between million cash million we to

XXXX, income of cash payments. adjusted no had free tax cash cash flow. We generated interest months $XX X first the or we of During million

XXXX, In $XX payments we interest to million. growth the our cash $XX payments million to between million between cash use $XX fund flow free in to income of back make and We our expect $XX million of to half tax and plan business. cash of

on have XXXX. required amortization in back $XX million the half also of We our term of loan

operator for open to the Q&A. ask With I'll that, the lines

Operator

first America. Joanna Your Gajuk the Instructions] with question of [Operator from of comes line Bank

Joanna Gajuk

of previously if trying stand-alone implied talked came the million these numbers about I about second largely half, I'm guess at and look the labor to I But in what higher through thinking $X QX. is margins, on So costs, for so the obviously, just gas costs. guidance you parse kind if down

assume So if implies million pro would for a now standalone half, the since company margins, number million but first $XX.X I QX, guess, I similar maybe guidance second half. in forma be $XX.X this

for forward? guess, is the math, margins this I starting point So going the ballpark? my a kind is is good And of

Crissy Carlisle

hope if for please XXXX cost guidance company going and The million. So Joanna, not, I'm to I this as year correctly, And correct stand-alone your full original me. assumption to $XX $XX is million refer what was to for Crissy. I understand question just

XXXX, first was to Health rounded half from numbers, the I'm allocation of about and going Encompass use $X million. In overhead the

So and than be going continue is year the company back as up move to to to more of we actual half the the costs. that stand these

back-end So it is loaded.

When you that about. million million to assume going that that's the the on that help? is talked being we additional that Does we into have $X taken $X back million half, $XX overhead

Joanna Gajuk

versus But Yes. yes, the coming the and just stand-alone second half about half think I'm in. trying to because, first costs the

for you company the the half impact look to when the just kind what at margins? see then second structure and year, fully this stand-alone guidance cost was -- of So trying loaded

Crissy Carlisle

absolutely. Yes, Yes.

half $X year. be $XX stand-alone is, So the the more you million. the costs, range million about the would first think in of back $XX the million That's year to of half if the than included

So million where we talk the of from. that's that's when to additional, coming $XX million about $X

that run $XX hit -- remains is until rate. Joanna, million stand-alone million rate XXXX, the The cost remains Enhabit. But It's ultimate still likely, for in to half in $XX the likely back that rate sometime we won't that run of that ultimately, XXXX. operating that run

Joanna Gajuk

And up, basis basket home is health negative points, the update XXX calling for next good. for points, on seems year. the may, basis It that's mentioned seen so the least XXX proposal if Medicare what clearly I market side, -- rate at we the you moving like have maybe

through versus manage higher in your was, over if that? kind or what you best to a out behavior can than years, this when much say, decline to next you was there labor year maybe adjustment flattish are at do that rate inflation flattish cost of stay having X spread and But obviously it's if a rates slight

Barbara Jacobsmeyer

will productivity room see improving we as to you have big the mileage to us optimization be as those new focus staffed, well because also as to about those improving around more that our hires using continue visits focus plan Obviously, areas can are do for have improve continued you when both we being our our Yes. our in fully think of staff the on be net to driving. your and to for able

by mileage gone productive them offset can So as more that and well. mileage with making the actually costs while up, we have improving their

some those So be there big will components. on focuses

Joanna Gajuk

question. last quick a just may, I if And

how to spending In terms and million deals. $XX your still, of $XXX talk on million guidance the including -- about slides on you the

also So for that this is assumption the year?

Barbara Jacobsmeyer

Yes.

Crissy Carlisle

That's right.

Joanna Gajuk

Okay.

be So hospice health? the would side home other the Medicare are like proposed from pretty home companies Because the it more the that hearing kind in of than on we're it that acquisitive the for health given pause sounds proposal. -- --

Barbara Jacobsmeyer

seeing the pipeline at of are health this point. more home hospice the in are we We than

Operator

question of Scott from line Stephens. with next comes Your Fidel the

Scott Fidel

thought question, revised if it of around outlook. revised First be the you maybe across guidance just appreciate for you may us the I to sort could color that the corporate X extent you helpful, of the down of hospice gave side, the health, the -- some the home out can between too, guidance broke then EBITDA and X splits outlook EBITDA segments: lower sort how the segments?

Barbara Jacobsmeyer

Yes, Scott, guidance don't basis. a segment give on unfortunately, we

health. about volume obviously both a we home about shift consolidated think payer So health on everything it's and only you The is that talk impacts When home hospice. on the drivers, level. mix

few things on Barb other optimization initiatives, both PRN they're The sides, factors home the on house. productivities that that A optimization, and the is discussed, some sides. usage of on cost side health both and more of those productivity

home more based Executive one piloting case new not related that hospice changes new off is model it President specific is we about is is the Hospice health factor load, the cost of of is Vice think one that's a which than The hospice of is of home health specific. a staffing part when to that

ran that operation Historically, productivity health home like a we've more measure.

load So call of our our could things some this visits some after premium on when increase the pay model, with as that associated hospice you cost case associated and also move such to visits. with there's

also guidance. considered in the so that's And being revised

Scott Fidel

have, cost per X% you're follow-up around health Understood. the was just CPV slide guiding for X% in at quarter. Clearly, year. a the that for visit. And the second XX% question for around in And deck then substantially to full you higher home

terms sort to of Just how of over that in interested course XX% the XQ of moderates think back the XQ? number from half you

would across of is terms experienced And a Or of It's of be? what out we of of in improvement the items about improvement sort that each back factors? -- laid couple weighted improvement? the more those those of key you you a obviously, the to drivers of sort that headwinds number the half think XQ. in moderation Should driving

Crissy Carlisle

Sure.

for. place consideration certainly, summer. than we that do guidance. back a the increase the So revised saw we market That's higher in we the we and was that the little bit in In last rate as we anniversary we put year, what CPV expected a half had of QX into adjustments what planned

So helpful that's a item.

volume. We have are on service course, be someone do of seeing the staff to done you own the if increased extra our with visit PDO PDO, rates you in staff, a that usage. premium goes pay, someone can when back to through to PRN or to that, will. field That And put

the we So factors that. those about of some that we're think considering are when

improve right the our that getting productivity because lower fixed one of -- now. that that volumes, structure bigger be the more The will cost drivers and items is impacting will will significant

Operator

comes of line question next James. John the Your Ransom with from Raymond

John Ransom

but your And your the initial what in And I'm few X missed your guidance X, between just X, changed you guidance? you view? were again that cause to top if say weeks could updated things I alter sorry this, the what and last specifically,

Crissy Carlisle

Sure, John.

anticipated. than we a it of have actuals is lot slower volumes and June point, to have been and at So July recover this

increased PDO usage. We also had

premium those outages. people of staff is take with to associated While in that field putting the and retention, try there pay supports care

in Barb PRN our competitive be to the and if being her we're during We're a also decline to in script, see availability PRN examining usage mentioned quarter. as rates, because we going see did

people may our on right? that not thing July arrears, we I base we pay prices course, in of are then, gas realize June think that the So what prices. one in is And

down I night what are. happened in we comments off but of August, July in received down. are think somewhat June. did They some the of we highest going last go rates some based those the adjusted in and rates had the were will paid where be we July, Well, seen they for

of course, mentioned then, more as hours a fully, And so Scott, the I ago piloting on and few in premium implement we And that a to just pay have on staffing hospice. be new that do some department. after we model if [indiscernible] choose we're to minutes response then there will for

John Ransom

Okay. you obviously, I on changing at Advantage the And question then other negotiated? is Or to is, risk frame about realistic year-end rate the my Do this on getting this and there follow-up way mean, moment? time frame time put a structure getting of shift is a is to side think no mix critical. think Medicare it the

Barbara Jacobsmeyer

that. or our we've asking discussions our It's because consideration payers, about we'll rates talking build if take But when been systems, I in with time in we're patient time pay direction. case to very rates is that, now will is in like larger their What to all episodic the rates, understand interested going in going how that a with I we'll put to say either out been we've frame. case for it's be episodically or for because to them what they visit things hard think

per continuing patients. a left we've their with on we're where rate, said to de-prioritize to visit we now without is are But fix what a

And gas so with we've prices. around inflation, in gone data wage

episodic least will these by And made on some to of rate. timing larger of I year, visit or it's per I think that the that we the some so end say case to have feel getting But at that rates. progress us on hard do

John Ransom

I the on there renegotiation? out with stuck the the you've just is Or in that's expiry Is renewal where United that contract, for an you're some called open So kind of you. deal is pressure until mean, date? one legacy particular, putting

Barbara Jacobsmeyer

for Well, it's think, I always, renegotiations. open

as that we've United is with the for look others one of critical. met realizing things access and you is for their As members that we're

open think through that, can for And so I always and are access things better renegotiations commit we their patients. for

good least could midterm. feel we at that I with something So up come

Operator

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

Brian Tanquilut

I to, the now kind as you South durability relationship. just Enhabit. good percentage being of how yes, of we Obviously, the that? like guess, about referral Barb, guess, you. come of I Legacy that? question my about And How from are the Welcome for your flows be a -- thinking public right should Health thinking

Barbara Jacobsmeyer

Sure. Well, give quarter. of just little the guess, bit a to I color on

types of that and nursing intensity therapy. sure that that, that well transition of so such Encompass in [indiscernible] model care So to year-over-year. made patients able the an with though, our from say, coordinators we've I need the second is our will the What that care we've done We've IRFs are quarter take place put those Health of beyond be IRF. to Encompass care Health

admissions actually relatively were all year-over-year. flat from IRFs So

so care I sell that really and think helpful for us. kind model go out been to of to able And has being all

IRFs XX of The is that the know other declines to year-over-year, thing were increased. and XX XX that's flat helpful generally

those So when look that that focus can best declined. those actually team some at were that focusing as that what of practices a on were on in what we here so are that we increased, the we're areas place

Brian Tanquilut

Got you. clarify, given at previously health you That include then roughly makes maybe, I as acquisitions? the home guidance And sense. about for just XX%, admissions that CAGR does think anticipated on Crissy, had to

Crissy Carlisle

It in. does. It's all

Operator

Your comes the Cassorla with next Jason of Citi. line from question

Jason Cassorla

there Advantage are visit the rate the to right XX% noted on shift the Medicare versus to of fee-for-service offsets conversation directly to maybe this understand MA per Or Or cost rate there go-forward to to bottom the of think How differential. basis, having, should about cost -- the XX% a the about the offset side? you line? EBITDA? you've differential the been if Just mix Just some back are member pull-through relative trying to kind ways we falls Advantage? that and we perhaps think going as per on lower that Medicare the visit on towards reimbursement or

Barbara Jacobsmeyer

line. bottom the through straight falls that today, Unfortunately, Yes.

would at you what Advantage, optimization do of with I license. would on have just say their Now that's like on someone and the working focus fee-for-service Medicare we piece, top is where we the

by So PT or lower visit that versus visit. way assistant RN if can an that that LN be that an per is to cost performed a a a versus PT,

you focus, we well both have as that fee-for-service as that So MA. on continue but

Crissy Carlisle

And contracts. you're you're expenses I these that also MA incur the add to thing then, service is would when Jason, certain talking that those to payers, with about we the that administrative discussions that only having

you again, So pre-off for and with that, put costs. us, the require us such A&G people on if we have things also the administrative table and don't time that like helps

Jason Cassorla

just Got shifting then million it. Understood. that $XX of to $XXX acquisitions. million to And

Sorry missed you either delve focus those on the side? or home but health if this, are dollars did I the hospice where into going of

I pressures given and are home backdrop, can then here? the guess given kind the And for all multiples how hospice, you're health an us just idea you on give just flagging the developing backdrop and both of

Barbara Jacobsmeyer

Sure.

compared So hospice health. projects I'll We is pipeline in in very actually we're little question. both. home interested development higher bit a much the what to touch the first seeing potential are And

where increase we continue want On our the to the hospice have to overlap health. home front, hospice we of

allow health, us we that at For tuck-ins. those look to home opportunities have

health at point, of markets there's a continued the pipeline. home bit we little territory, So and for a this a hospice kind out health of adding locations more our benefit seeing focus that are optimization home in us. we productivity by that's from to could a than if then But build

Crissy Carlisle

multiples multiple very on on what Jason, buying. then, based widely And your question, you're

status, CON states market the include concentration, in, variables those the what referral the patient penetration, of the mix. it Some

sub-XX%. are when with would that now, considered potential are right generally a I we multiples factors company those a offer of All say approach

run do higher hospice. They for

You the when bit little a you digits run a health. the I onesie-twosie, have fewer health, assets which the that higher you be That's multiple. those going attract for home can you margin assets, if right would say a are And is mid-single hospice, And then, hospice now you the digits. smaller. closer obviously had a higher versus to of to the which portfolio single not earn across can of country. at hospice course, in higher probably than would is home

Operator

are this I further at to no call questions turn will time. Jennifer. back There the

Jennifer Hills

again at has Sarah. (XXX) Thank additional please XXX-XXXX. me Thank anyone today's questions, call. you, If call joining for you

Operator

conference. This concludes today's

now You may lines. disconnect your

Enhabit (EHAB) 2 Aug 222022 Q2 Earnings call transcript