Universal Health Services (UHS) 26 Jul 182018 Q2 Earnings call transcript

Company Profile

Participants

Steve G. Filton	Universal Health Services, Inc.
A.J. Rice	Credit Suisse Securities (NYSE:USA) LLC
Joshua Raskin	Nephron Research LLC
Peter Heinz Costa	Wells Fargo Securities LLC
Stephen Tanal	Goldman Sachs & Co. LLC
Justin Lake	Wolfe Research LLC
Kevin Mark Fischbeck	Bank of America Merrill Lynch
Ralph Giacobbe	Citigroup Global Markets, Inc.
Frank George Morgan	RBC Capital Markets LLC
Ana A. Gupte	Leerink Partners LLC
Gary P. Taylor	JPMorgan Securities LLC
Ann Hynes	Mizuho Securities USA LLC

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Kristy and I will be your conference operator today. At this time I would like to welcome everyone to the Second Quarter 2018 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Mr. may you your begin Filton, conference. Steve

Steve G. Filton

the Thank also joining morning. this of results you, XXXX. June welcome Kristy. is CEO, review for Services' Health our Miller, Universal quarter us to ended XX, Alan you Good second this We morning.

During forecast, I be projections, statements. such Alan and using and similar and anticipates, believes, forward-looking expects, estimates, call words this words conference will as that represent

business and of uncertainties recommend For section inherent these for year anyone ended the before up not call questions. XXXX and March and to opening I reading familiar XX, ended We the to forward-looking Risk our XXXX. Factors a Risk risks Form and would careful and like Factors December couple the XX-Q trends with quarter on XX, a statements, Statements Form highlight the for in the just our Forward-Looking in developments XX-K of

was attributable comparable X.X% on the year's million $X.XX quarter. during million last attributable UHS quarter in the diluted Acute company $XXX.X our during diluted impact As share $X.XX the recorded or night, our of in last adjusting net net After to to the quarter. attributable during in of last quarter and on income net to $X.X share the the in second adjusted per reserve compares Supplemental per income related our diluted of Justice Schedule. for basis, press same-facility $XXX.X XXXX. calculated increased XXXX or million division year discussed the unfavorable of the increase Schedule, second the as This after-tax quarter from share Supplemental second per UHS $X.XX release press of adjusted as discussions On UHS to for our release calculated a of revenues to Department over the discussed income

revenue X.X%. admissions same-facility On as the quarter per XXXX revenues a increased X.X% our plan, primarily revenues basis, second in second X.X% adjusted during net our in increased division increase and of a the a in X.X% same-facility Health to quarter The increase resulted XXXX. Excluding adjusted compared increase health Behavioral from of admission.

plan Excluding the same-facility health in revenues Behavioral X.X%. increased the division,

year's, as year's the facilities second more this X.X% per second and X.X% to quarter revenue Revenue comparable a our admission of patient last day X.X%. during health increased compared year prior the and admissions than owned behavioral to increased X.X% adjusted XXXX adjusted per for days increased quarter. over adjusted patient adjusted During quarter year increased

ended million provided months increased our XXXX. by million period to cash of the generated comparable activities June XXXX For XX, net six-month the operating $XXX six from $XXX during

XXX new June we June days during on expenditures XX, our compared Our six as care XX slightly to hospitals. to XXXX At of beds the second to to XXXX. debt quarter XXXX. health beds quarter of XX, have the of outstanding first increased accounts XX.X% second $XXX behavioral XXXX. XX of to to ratio during added new at second the our and of months XXXX the We capitalization and spent XXXX total XX million compared declined quarter capital Year-to-date, million acute during during busiest as days receivable days XX.X% $XXX

through Behavioral very Our Penn we month share. approximately of strong Providence million later or per the cost Since approximately with of active large repurchased stock of with an second the venture in Medicine X.XX program our quarter approximately aggregate In XXXX the $XXX joint million Health we'll shares this a venture during behavioral joint pipeline inception $XXX at of opened we venture integrations questions is Hospital, we XX, discussions of share. XXX-bed million And in Health pleased stock repurchase of time. Earlier health Alan answer Lancaster approximately with at ongoing. a I with and conjunction $XXX number Lancaster, open $XXX joint a XXX-bed in Pennsylvania. your approximately General Lancaster program, a June this are Washington, X.X per to System. Spokane, hospital aggregate shares year our million an XXXX at behavioral or cost the repurchased

Operator

Suisse. Your comes everybody. detailed Thanks. question A.J. Securities Rice with from line of question first the just Rice Suisse (USA) go LLC a - ahead. A.J. first. Credit Hi, Please Credit Maybe

You income item have other now. $XX.X million this

accounting we had there in line about think in talked before terms those guidance you've think it's items with to change. that prior haven't to I periods trying compare and should You of some what and and operating about of income related in How forth? your so

Steve G. Filton

A.J. Okay,

really there's that kinds items think I of line. on So two

- suggest rest of way they're cetera. predict release first we'll from in we'll it can the line are so – and and the securities normal shares assets, unconsolidated it losses to in third of own the press believe is the from in what's the we for that growth you've addressed to X% subsidiaries, of included to the of to quarter. think rebound let the that the the and feel think out I business. getting material, become on to EBITDA that the Behavioral, about that first that and been Obviously ask goal managed with on to back call fact know Credit appropriate negative. that gains on A.J. exclude at? We organization, a because was I positive and just marketable our you certain particular Premier. non-recurring over Suisse people we payor source sort Where or challenges, an this positive quarter. And income I they've are in presume market dealing it's you forward. Rice of I of it have Health confidence in goal and marketable (USA) you LLC moving guess never was – steady that basis. back obviously in I value know the guidance. to those essentially that to whether paragraph a the that in impossible to on miscellaneous the The the then that of would've is are just purchasing couple get things that's to of those continue in in you revenue in et our sale We past that us last there years areas – Medicaid highlighted change Behavioral that think isolated The as of of unrealized you what's our level mix the chunk then investment our number Securities Premier, the couple own gain X% back bigger we in same-store securities; change it's degree the group is in sort that over situations half update And about of of year? would get in us the disclosed include Can time sort the where your Okay. me labor back a

Steve G. Filton

for our behavioral we per we've our initial that continuing some initiatives, range encouraging year, couple to over is metrics the acute residential A.J., in has the the and to the Health in higher reasonable about in and beds And mentioned anticipated. number I number service. development success of provide patients perspective X% that and beds range X% than out And think X% had that day quarters. couple our I reflective my into a this. in division last a are to comments degree, paying it's that are been in from X% think our over guidance of a the of sort patient including with of We, to the talked higher the last the revenue The in originally that's the being been opening quarters shift I revenue of Behavioral higher our where which overview Sure. of we of

progress day that revenue insurance that care number. et I our like made cetera, that the in higher raising has we've managed per impact companies think and of revenue denials, growth with that reducing reflects things which growth

plus discussed are pressure review, for of the in for length comes relatively Medicaid fee-for-service any traditional last managed continued compared patients, continue for We're pressure. Medicaid that we though think So are us. we've the quarter Medicaid exceeding The flat et negative is there. the expectations length of year. program number stay sort where from patient quarters we that's growing, shift patients, find are as of generally us to about of sort days Obviously now utilization mostly a of admissions the payors of aggressive I Even stay our to some see into more cetera.

face that where Medicaid traditional take care our on pushback I to Medicaid long to as appropriate But to, continue managed as We going be clinically, payors. we're place, to to continues fair, that shift from it's think to phenomenon. managed

worth program, of patients but limited in of be are managed there's so it it's a remains today somewhat Medicaid already that about that Now of challenge. two-thirds amount noting a will a that shift our

the a think admission us really X.X% grew less remains for I by metric little that which quarter. on this opportunity than

think have really that to the sure we're biggest I accommodate have that used and in we're our admitting our sufficient who believe is is available away psychiatrists; in that clinical are the some some that's we because do appropriate that the clinical demand that do that in nurses think to turned beds drive I thing other The our the to higher. demand, patients and cases we meet feel building we some staffed see to are like we evaluating In new capacity make hospitals cases patients measurably challenge. for continue enough facilities number main cases criteria appropriately being criteria. with that been

a them up think Suisse progress. we're the continue a progress. going A.J. we've a we're the We a slog. those Do moving of that? is feel But that So you progress it's been in easier of to number. and - think make that of back things. half admit parts. to made there Credit the and the like year, we're still We like other revenue to some I like made Securities stepping terms feel demand that in the things. LLC tough and (USA) you'll There's on reflected of focused like it's And do I lot all feel just little get We in first we've comps feel on Rice number

Steve G. Filton

continue Suisse for aided of guidance to Yeah. back in that fact not comparisons, to we I Credit Health facilities, unfavorable are which, that would XXXX All that grow of non-recurring correct. year, the revenue by Behavioral half half (USA) a of in that Rice as believe so our also articulated we reoccur behavioral particularly And Thanks the easier get Securities will number and and we health a think guidance lot. we the the adjusting back items original definition, our will mean had XXXX. is the not A.J. half year, the - by we're continue the our Great. in I our LLC of contemplated right. back in you presume

Operator

the line next comes go of Your Josh Nephron question Raskin from Research. ahead. with Please

Joshua Raskin

guys a follow-up comps but a there's obviously Thanks. half a but here, of to could maybe you spike we you've on unfavorable so couple us you give gives Steve, second year. last will maybe that a out decent guidance improve. just the on the little magnitude. bit perspective in sounds on what the if question. that And are that just confidence items I first now those confirming more guidance get And you It reported embedded color half easier maybe trends like the of that you XXXX ramp just could heard

Steve G. Filton

Sure, Josh.

it's a later with the internal little internal year than budget because or we pretty Street Street, fact talked budget to consensus numbers. consistent bit worth be would about the this for somewhat noting full guidance that the turn QX in our UHS's that QX. in was lower we seem about the that year In own and think I the talked around

think months the pretty our six in results expectations. first much for I line with are

originally guidance half again, business contemplated observation this second and reconfirm, So I at are of what And will while acknowledge will quarter. year, that earnings what I not Behavioral was changed. really all in the particularly suggesting your we hasn't say the that which the the relatively a in includes we is changing our I that that for you're significant ramp guidance

you facilities division what the last as negative have year discussed one in were far our our quarter hurricanes third two that Behavioral year But downsized. all sort and affected detail. we again, Behavioral has that that publicly and of that I and in for so I items, from facilities closed or they been described them around both back believe non-recurring most Acute in those of part go talked businesses, centered regulatory-challenged them we've press the and there As then were those last see three releases can ultimately in as ultimately and described about, the headwinds

experienced So the half will year in profitability back revenues not and half back decline obviously the last this of year. in in reoccur significant that we of the

Joshua Raskin

you. Got

but non-recurring were adjusted your earnings. those those were included So actually in

a waiting You final is the any or last not of you an a further way? Got like about share you're just capital if some then know settlement settlement. least the saying. little spiked more on as think the them don't M&A in there's some conversations. And deployment buybacks for progress – a From probably the But perspective, changed from reserve you. there's out, sounds so It overhang or question. just Obviously more settlement? indicative importantly, guidance there differently and/or at even I you're a government do

Steve G. Filton

to further settlement now I relatively there's speak we've demands like, government's than offers continues. and to lot counter-demands. do feel and and consistent what just demands government. and that. We're the moving a would end and certainly about along We can that said a think resolution that can but acknowledged this that think we to of We probably the with a we discussing certainly and time the they're quarters but Having terms, in with I for making this slower make which counter-demands by not than certainly I near-term I still the offers there's said largely hopefully we've a about we're keep commentary and whole at of counter-offers process again, I've it largely some settlement every the apace. not we and said that's think hope a is we're counter-offers, relatively that, like And several move is So the this, phase we're everything pace slow year, certainty. pace, process, this we about making doing

I it's what particularly – capital, any, uses tends the acquisitions to think had and buybacks. that's it's think don't I internal continue potential narrow, the degree magnitude I capital or your share of discussions I don't to invest, if our much second on the about or whether of question think overhang, an think as obviously willingness to settlement and external effect,

Joshua Raskin

Steve. Thanks, Perfect.

Operator

Fargo comes Costa next question Please Peter Securities. Your from Wells with go ahead.

Peter Heinz Costa

little to like something worse the a that? like more deteriorating Care down side we've margins were past. Looks move was your off little quarter and drop staffing levels in you than do Thanks. business. the high I'd of to more Would Acute going seasonal you the there that else XQ a XQ or to this the bit with say was coming on admissions on think was too in seen pressure from

Steve G. Filton

kind division for think, guidance we growth our I of the not So QX EBITDA X% kind in The QX next X% of to ours growth X% numbers Acute growth. to (XX:XX) X% QX sustainable XXXX Peter, revenue hit maybe we've rate only the several over QX. revenue in and but both to talked X% in years of and about would sort and growth comparable X% yield

then pretty you're lower think growth Street's Acute some think that and last tough I and I in is year and were comparison than our was we be slowing. robust both to a not alluding than a couple particularly profitability-wise we very although in growth, I seem of business, to part think had but to expectations acknowledging EBITDA what and internal little QX years we the a only profitability revenue-wise to own expected the bit think, that again, lighter in

last the been has the even business think we've have also we generally the of positive a years several trajectory think Acute the though business robust, over there's found that business. I pretty Behavioral in rather and in little I volatility than found more

volatility of in think the that the And quarter just margin some intra-quarter sequentially attribute lightness largely so I we second to and that. contraction

X% hit performance view line I in back over that's grow we X% follow. if though those you growth should we exactly didn't if Even X% that and true. I at range can point that think look that think revenue X% at think over that you'll of time go in I business to we and our to is that see our EBITDA the time over the time, QX, think you numbers still

Peter Heinz Costa

And Okay. any comments right you M&A then do environment now acute have on in the the space? care

Steve G. Filton

the to the of gamut whole of hospital and We acute continue acquisitions, that system span opportunities look care really care ambulatory capabilities. expansion at whole

emergency We have program et own geographies, a cetera. in pretty some development aggressive freestanding our of of departments

Dallas magnitude, capacity new at not-for-profit been quite the capacity, is and in market new because Vegas the I a some hesitate quite hospitals several our are, think last talk stressed several the bit surgical back levels lot facilities. room half tend at. a capacity, I we've heavily describe from over finding of we we as same North that the fair We of think side of invest in transactions. that the California, limited are own and opportunity. evaluate of them them not-for-profit continue assets, have about Las sort of not-for-profits the a new But in to in pipeline Vegas in I I are Riverside of think hospitals and think of I on acute Las we in but number acquisitions beds, look of but the find But California. in Henderson years, there there what Yeah, to our opening I a that in call to we're merged this emergency just this very on and we've year assets we in not the we're as the hospital lot our continue new County, of has amount to continue kind and opened that most target-rich a meantime, Texas. in And to the perspective, new systems them. which think

there hasn't finding enhance been bit are through quite much while to of still and external opportunity CapEx. So we expand own for a as of opportunity M&A, an franchises organic our

Peter Heinz Costa

you. Thank

Operator

Your go with Steve comes next Please Goldman Sachs. from ahead. question Tanal

Stephen Tanal

Thanks Good looking of there think well underwrite level target, growth question. that XQ and sort for the for in in thinking taking Behavioral as revenue when timeline same-store confidence return how acceleration it's I the sort number in instill XQ. an now the think mentioned about Steve, sort morning, to of guys. X% as reasonable you curious was recently think you're I most of that there. a I'm to you

Steve G. Filton

year psychiatrists. the measurable Yeah. for began Look, to say we that a of I Behavioral really would on that think labor slowdown a I the about we of to shortage. progress And in half redid we that particularly mean our half had, began in kind address the challenges the and really lot a that saw XXXX and we've is to attributed our I increase. lesser one our be back we of to degree, this think and to of Steve, of growth revenue And a and make beginning but, able shortage volumes nurses to I most slowdown better revenues of begin focused back infrastructure in our of XXXX, both

growth of and there ratable imagined is A.J.'s X% has and on choppy. been there we think sort is our others in The as slower the fair, presume we the target of it the recovery problematic progress responding or think that sort I progress year. still sort get the that that have business and projected is to X% choppier reality reasonable. tended to that denials, still out in than acknowledge play shift still we in would part as that we some but I the bit half doesn't But pretty question, that a residential We But we It's we originally bit project of the in more from making we we how As services labor guidance is increase. of and, We somewhat think necessarily is and thought. than original back way we're continue think close. of be can work reasonable, to like solving that reasonable. find out, revenue somewhat of to that for target and that we make areas to shortages we're get it's well. as like again, acute a reduction feel commented I that And a X% continuing target to

Stephen Tanal

it. you of about Got from percent business that, about thinking remind number I the referrals? can the come total overall, said referrals the growth system-wide? just the in guess has acute you mix And what been of Medicaid us what And of pace and know admissions Behavioral I of but rising

Steve G. Filton

our magnitude, It's XX% acute hospital by which still our probably order historically geography, of tend think our our patient the of source So to range vary emergency a somewhere of But single XX% vary come Acute referrals can XX it that it in care think can of indicator. revenues by about I that space, I admissions from Behavioral behavioral to in vary business by is good largest program. can that's hospital, rooms.

Stephen Tanal

or think affecting growth, changing? the pace on And is any is level you the at the referrals DOJ no? investigation Do of all it

Steve G. Filton

sort audience landscape, are broad in XX-Ks. think of who and a people those that. those, mind preparing people a things while that in I'm there's determine pretty read I absolute here, I whole time investigation last our And calls, quite various small never up. there's our investigation lot with as lot years people that several of And our think of to not of familiar we, operational challenges Look, who the about nursing of the think other in the a operators the comes and terribly to government the difficult writing for field aware talks are that's talked et are spend bit. potentially But describe government shortage, over we precision. And who behavioral like the of we've them. challenges they with management us, always and a cetera, team XX-Qs our really a to I the

Stephen Tanal

maintenance on I Understood, number, $X.X I EBITDA million million $X $XX.X million and the about there's about would prior less the how the marketable I'll that that if of that what And a maybe reported in think securities, items there, way the Thanks just question add that color guess suggested you it lot. the on a helpful. to seems implies some nature amount earnings, million, the last NCI in paragraph in is adjusted would to just us you more that about and on the you'd referenced the follow-up that? third give A.J.'s right that that maybe year, yield. have think one, And are $X.X those changes normally If like which of value backs. been a of exactly then compares be the

Stephen Tanal

Yeah.

that income et So miscellaneous and think gains Steve, include bunch frankly been I unconsolidated a will have the think kind didn't historically non-Premier that. said perspective recapture number I'll from because largely year not recurring, be quite of was balance to what of I number items that other part that prior losses at looked they'd of think sales, of of I and going various are normally items items subsidiaries, be EBITDA. before, income on the view was we to were asset we that those prior reported our small they in cetera. the call I on general our included that part quite the what's frankly back there, But that in sort the line, for We in restate small those year is accounting as items was go are

Stephen Tanal

lot. a Thanks it. Got

Operator

Wolfe ahead. from the Research. Lake Your next line of go question with comes Please Justin

Justin Lake

morning. Thanks. Good

to just What if mathing that Steve, of in the which does a about you at you obviously, would one-timers it? Is the better? about themselves, stays is to if X% then up range question way then low lot anything tell to us Acute end EBITDA. Behavioral I'm right range the the on Can low-end reverse driven X% guidance. think that should, X% be And Behavioral they in same-store? First above business of focus end by of the the in getting

Steve G. Filton

I of because generally mean think probably revenue by of that side I sort from was Behavioral that's associated it. sort growth definition incremental fair. the larger doesn't QX side in than a performance pricing will things think I EBITDA expected pricing cost of I came in have Yeah, things, that part better say the an component of and of the to

in get statement. I think point, we not the guidance, our we if original end I get I it's this you're progress that high half get think that a et revenues certainly cetera. to it back way So I fair to we is continue but would in the if on expected Justin, grow guidance be the our the can at tough the of asking, make can't if the front, that's to question that think that of But year. helpful, Behavioral to We're certainly in conceding

Justin Lake

there Got it. was kind or a there any expected. that? And then, bit of Steve, your Was little change accounting number lower than depreciation I driving anything in

Steve G. Filton

at of go and the detail. I look material, can't I Justin. think back will certainly anything

Justin Lake

Great. Thanks, Steve.

Operator

Your Please of Bank line Fischbeck comes with the ahead. go Kevin from of America. next question

Kevin Mark Fischbeck

Great. Thanks. of Can some one-time show the items issues you the those one-time math year? a issues half half just you but in be of just that behind much year? remind how second volumes don't if us the were abate, tailwind any So and should the maybe last to of in back improvement comp actually the

Steve G. Filton

and this everybody. bit all available the from don't kind in think memory. them to me think had the I again, and of a there the I I going then range, million, mean a the and from we I Kevin. in to expenses little another reported in fourth drag people to last think totaled sort that year out $XX million they're I three third the million probably But I to think front they're were publicly $XX of of so divisions I and million so losses million to somewhere those do million in have see. hurricane two the regulatory-challenged from to $XX very that disclosed quarters in Yeah, But and make those I'm in $XX the $XX for additional items so of in facilities discussed business all were total. $XX point the very items publicly were which all that Behavioral range

Kevin Mark Fischbeck

as guess same-store it be focused number about basis for actually XXX perspective achieving to number itself. when you same-store number sorry. Is points a much of was that because revenue from kind a people ballpark I'm that more is growth interested think I that? EBITDA guess like I on X% I as revenue or there to seem the

Steve G. Filton

Yeah.

when we that. really as level, those talk growth items back getting we're think I to viewing from about that So same-store discreet

Kevin Mark Fischbeck

it's so situation. a Okay, not

year, from So headwinds to way the fact still were you X% think rate a think so one-time there's basis, easy right on comp not run about an comp the just it? that those an last easy is

Steve G. Filton

Yeah.

So when referring an easy business, of I to non-recurring items. those just comp, sort I'm say there's core the to not

Kevin Mark Fischbeck

How fully commentary on then little How there's make that your places are to much kind challenge that challenge That's adding right. beds of that that that sure kind Can where you issues. kind capacity of and close we of been is helpful. beds in all has are are you're over And give process? you still? a the a to of you hump? mentioned that Okay, the getting staffed in where

Steve G. Filton

Yeah.

so vacancies an X that when them number bed and describing and capacity the get that in issue arises tend sort another ours I any the we leave; problem leave. turnover fashion a hospital in we it is they restriction people hospital, question I of and this hospitals XX% another filled hospitals psychiatrists, labor represents of range, of have hire nurses this we in particularly progress. the our issue in of has we don't affected. nurses, think, an made have part relatively is the many fair, of Y hospital But at the throughout solve linear U.S. nursing this at sort look, we've try hospital, solve in be much industry it's that remained small kind cetera. nationally and market. that issue, and to of We always it'll been the of total understand that – number then we'll on such think psychiatrists challenge I so and like at of But to view et a I and rates, another number reality the and arise the problem percentage a in of in sort is of issue think hire challenge the a of slots, look, markets and and has It labor small have we sense high two turnover is in that it

people a growth our revenue will of of So focus just because progress part that's fixed that able been recover go. what in growth, how – kind guess or in that always But of as my I internally recovery. level and to slower quantify of slowdown it well how we've I is much by it's in problem itself progress in measured. sort mind to the way, and I A how percentage way sort the is revenue level mind I reason difficult my in revenue when left growth. and something like that's be do it to we much find I a completely of on a is the to manifested – be made of point ultimately the this

of orientation; there those be number think while continues main people define – progress get in So things number ultimately of to and measurements think are of your all focus sort I revenue growth use our that metric. that which you can internally sorts vacancies, rate, help on we I of metrics – to turnover

Kevin Mark Fischbeck

a on towards making that you progress guess wasn't like be I number. But as judge progress. leading whether that is that a revenue factor perspective, to fair I us seems No, that you're a achieving for from it so think forward-looking gating would Yeah. potentially staffing on indicator it

market Is question is I is I topic difficult. worse? anecdotally, does anecdotally it's feel way and think for what same? the of Is versus in just the that years? getting labor tighter stabilizing think couple that been I actually think maybe staffing look or more guess you last people or this Do staffing that getting just I normalizing last on getting guess just that directionally is it that it would some in the be like? you where

Steve G. Filton

have Look, view. a point Kevin, of think, we Yeah. I

the half started the them. in in way, by As back been on I I manifest said, kind think the challenges really divisions very and divisions both we've to labor of themselves, both of XXXX, again addressing focused in

I years we're a labor they sense very couple having market. our is stabilized have it. tight into we think said generally that acknowledge that, in But now think we're a I

years lowest or is nation, we're unemployment seen XX rates on As in a quoting we've depending that. the at exactly who XX

be although I So I to getting and to not but going it's like make continue it's stabilized, to progress worse, think we incremental. it's think challenge we a feel continue certainly

Kevin Mark Fischbeck

helpful. Thanks. that's Okay,

Operator

Your comes Please line with Citi. go question Giacobbe the of Ralph ahead. next

Ralph Giacobbe

Good Thanks. morning.

to jump side. the Just to wanted Acute Care

of a only talked top think bit. EBITDA good about anything digits. sort pretty the better you've sort didn't X% number Your why pull-through? Still organic sort you slowed top single a on I still you little I growth the see line Is number. of up on hefty pretty is seeing stable revenue out that there line. EBITDA to low But of been call think

color any Steve. just there, So

Steve G. Filton

question that Yeah. I is think, earlier. Peter Costa Ralph, largely this I mean, the asked

said There bit I think on side. just so then, was As is in Behavioral I I and the pull-through QX. little nothing of the volatile it the repeat, of a extraordinary than erratic is and sort that I'll EBITDA think quickly Acute, more

X point or that of that our or think EBITDA revenue view X% growth is growth. will I yield time over X% X

mind nothing supports the there was but I that, extraordinary think in our in quarter. performance my historical

Ralph Giacobbe

maybe did would I and I right, number thought just a in fair the pricing what I look that pretty mean Okay. the is of enough. All it how But pricing that's in helped the just much side bit, been of topic sort maybe little quarter, of stat? on the a focus. Can mix the give topic acuity that a that it than you past us better part mean you on good had acuity through. just pull

Steve G. Filton

I obviously continues was at and be sort QX that Yeah. think strong in for us. HCA it I and of acute public strong for the to in QX entire least universe seemed be company mean strong

relatively some more I I benefiting from in say to of will inpatient think has Now that per about fewer that was XXXX I strong, although due lot and unit and we've that still patients, admissions observation talked revenue degree. think to been our a I that are a we think

outpatient hospital of or that's been so I and out the the out kind think think setting into of the inpatient But trend kind lower all outpatient on seen out acuity of and trend, either the stabilization last settings, think think benefiting a bottoming We've a and procedures several acuity hospital, in also of I moving this industry years. generally stabilization. of from a of sort as well. focused acuity other hurt we've that's I I the over of the helping that is

benefiting in it would benefiting that we're think say I I for that difficult in across peers way. the reasonably way, So the to are we're like just are guess the the same numbers that. all our It's industry me from so benefiting but same consistent, seems

Ralph Giacobbe

last specific us from you on side? mix the payor and just Yeah. a in care Can quarter sense the focus of And one then managed give just me.

Steve G. Filton

Yeah.

and actually Our question. again, payor mix been has I'm this answering –

Ralph... I think the business, Acute for

Ralph Giacobbe

Yeah.

Steve G. Filton

payor mix our in at quarters, pretty And a is have Medicaid rate. Acute lower but Commercial flat Medicare than slower uncompensated than growing meaning has overall the admissions faster business rate relatively admissions. still a is the any at of for last but several few ...our remained is quarters. last growing probably the payor positive over stable mixes. been our other

Ralph Giacobbe

Thank you. Okay.

Operator

with from Please Frank, RBC next ahead. the your is comes go Your line of open. question Markets. Frank Capital line Morgan

Frank George Morgan

know the get wanted I on Okay, volumes Acute and to a sorry but and if talk outpatient about that. also surgical then looking you this wanted or inpatient little on Thanks. Actually discussed some bit ED. I updates talk about yet, at don't to side. both I

Steve G. Filton

the you and Surgical Frank, said. what? volumes didn't hear I very last thing

Frank George Morgan

Thanks. Yeah, department surgical as volumes outpatient or as ED volumes both volumes. and well emergency in

Steve G. Filton

Okay, sure.

quarters, bit. So little anything think down to volumes I'm I think of again place side, and admission I been think flat on I think slower volume slowed or new in have growth. terribly kind of several They've don't different ED a describe I actually think our the have I there couple quarters. pretty in been the They're the for last was than QX. about trends rising ED that actually in overall

EDs question. being other shifted a I whether room we're or those are it's doctor's lower be. it Ralph So offices, was bit of that settings, whatever may or describing think acuity into seeing previous fact what reflective urgent of the More that's to little the I patients freestanding in care emergency

acute changed really reflective ER consistent Surgical the which has and admissions. inpatient And getting fairly although overall same think out, our is that room of business room that level. so not I visits emergency we're visits from of fact we the admissions of admissions see flattened more at are the the remain with in of our have those amount our volumes emergency kind terms

X% per number acuity which QX X% are keeping number question, also, revenue unit and were think for or previous outpatient us and I strong. reference up in that volumes sort both Ralph's in of to in

portfolio. see volumes So relatively surgical I to strong throughout think we the continue

Frank George Morgan

Okay. Thanks.

Operator

with next go Please Partners. Gupte question Leerink Your ahead. comes from Ana

Ana A. Gupte

side with Acute Yeah, of Hey, sticking thanks. Good morning. the just it.

there's the survey their yesterday about was what insurance in saying to they're even at Looking employers. see higher beginning markets and HCA of smaller how rate commercial Department a of on accelerating because volumes Labor probably the

good markets, of and slowdown sooner cycle parts southwest of kind the it's recovery for late and other perhaps mean a on the a of been you in more I the for a was southeast? you at and As because impacting while, think do than look somewhat has your you that admissions Vegas very market that's

Steve G. Filton

spend answer releases your earnings analyzing provide the of caveat So time day numbers. before and to a at and which one lot of I I'll is and earnings will get their question peers' don't we our sort try we announce looking

you So a loss. Labor at I'm referenced sort what I don't their so of it's know of they comments. difficult. said Department

Ana A. Gupte

need they said haven't to through I and detail was, don't All No. survey you gone that – either. in

volume trying the their pickup, their I Just the understood, as pickup. about that that Vegas was commercial to believe lot mix finally and talked all view some of unemployment compare markets. And down in to the, the be I driving I of timing Texas a versus some was they it Florida just payor cycle and of said might going in

Steve G. Filton

think our important doing you we We see make like By peers well. point. the the I to by way, an pleased HCA and results. Yeah, were

I in the challenges the particularly think kinds that robust of franchises the But business care were have for for us the one that strength of is acute I markets. of of several difficult putting one in say strong HCA it's quarter reflective numbers Acute underlying will companies second last release our have of quarters for number challenges of become a the in were face is Care up been that comparisons we and And us. the numbers those more more has years. those that over division

markets. the So that when of Vegas and recovery in up at of California the we fourth into and Florida, started and strong end into Las of and to degree a end but numbers fifth sort really XXXX XXXX to lesser XXXX put year or our we're

think good us. just again, sign more experiencing for think a our are for is strong peers that I underlying those little us. so metrics, degree And But that's challenging a that comparison to of the any I

Ana A. Gupte

enough. fair No,

definitely more challenging. Your getting comps are

inpatient driver shifting in to the being cost mentioned just setting broadly on. sites higher about that's mix other think The is of and more lower what's service, driving I and the growth that's potentially so pricing

higher you observing at point? of is X% to this that X% that are growth part the pricing kind of and So

Steve G. Filton

acute, left definition going more unit up urgent months per measures then and XXXX. I And lower certainly a surgery would do be business other measures in the care the freestanding is or cost we into care that by hospital – what's think think make expect whether revenue that acuity variety seen lower of the you severely that settings, I six I centers, all the in the think I first or and Sure. patient. or centers point, shifted would out which been think is more what they're EDs ill you acknowledge right – which mean if we ambulatory we've hospitals of lower is has acute of care acuity whole acute I the

Ana A. Gupte

I around And with – that with on up your foster, the following – just site to in like, change clinics, lower out adopting AWP CMS. clinical for seem They neutrality impactful new mean plus safety. to cost is efficacy then obviously small trying from also X% maybe and outpatient. they clinical X% plus away outside hospital today drugs broadly from to physicians AWP the on earnings they for serve sites put be you feels And care discourage a rule it and that service, physician to, industry? did going may of drugs yesterday and not of have

Steve G. Filton

Yeah.

make mean So going bit a repeat to of I little I'm before. a comment as

releases a the whole rule the have site as more don't night So changes. we largely hundred new releasing to we at say about a on it. get sort when sense, is that a unaffected we're We'll study lot. that we're very of quickly, looking it page to earnings, it look chance by several CMS My in at

Ana A. Gupte

one like freestanding. on contracts comments And to to And the is likely the and the or preferentially premise less talk to time one attractive materialized be exclusion behavioral, big at Any be The about Behavioral, and/or a could. fully acute point on fairly then into is that at mix, driving hospitals then final going that Medicaid acute viewed the tailwind haven't was may IMD payor if some become realized? the JVs. as I one

Steve G. Filton

lifted and I IMD valid the industry to of premise valid. and that is the original benefit still behavioral being the freestanding that a think significant think was I exclusion being

the existing exclusion we lifted have our we for clinical sufficient in time at markets were a when think satisfying I didn't that time already difficulty practical got we didn't was necessarily had we that the some at demand challenge beds of having the a staff. number necessarily that that largely because anticipate

wound revenue better or difference in out uptick business better was adult had paying, this up commercial. all out an incremental period got so incremental other adult sudden squeezing of interim but upsurge but or a really never in not it this And that pushing Medicaid we and to before, an the had we be proved business Medicaid business, Medicare

will business couldn't business about profitable adult be then awkward And we out will the imagined. you sort of acute we time arrangements integration continue were originally I Medicaid because be venture discussions a it and incremental having solve incremental would their to hospitals as unless lifted with a dozens care as as there of different been good labor disconnect truly is joint patients couldn't secondly had that over and think point which arrangements problem that them. and of chunk treat exclusion we this the think as these I we potential be become of once issue,

exclusion being business. these think several conversations was a having will very opportunity which to a significant next being So over Behavioral I I the wind think years lifted integration over IMD up tailwind for our time development significant the

Ana A. Gupte

makes thank sense. right, All Yeah, you.

Operator

line question with go Taylor next Please ahead. JPMorgan. the from of Your comes Gary

Gary P. Taylor

really Good Hi. be a really dead horse I'm point I'll morning. feel at like beating quick. I this so

Just be I'm going back clear. and $XX.X the just Steve, sorry, to, the other income, to million

as So a mean million you're was I normal saying you're the way you're recurring million said and would that basis several items, go-forward $X.X the basically to accounting now, new positive million, treatment reporting few have you of expect the on noise, you miscellaneous line, breaking on given right? line this a gain kind that out

Steve G. Filton

a this more the income and issue next I that that's subs address just make going that create subs, think wouldn't yeah, they're line bit of recurring, again, we'll I is that income the the expect unconsolidated honestly impact. think straightforward. Gary, little Yeah. that. unconsolidated to to I from nature miscellaneous and degree items don't way items. again, I But we'll are We these of gains mean could mean, But sort I material think around. some the the incremental mean, losses from bounce a I again, to truly an on year, have

Gary P. Taylor

made just to seasonality. on for make I half in few we're the Acute. you've Okay. same back because the want seasonality then second to sure a And going comments one on moment page about

and Acute So growth easier. comp if is the the third the obviously about hurricane impact had think EBITDA year-to-year quarter, that was we EBITDA modest for you

today, accelerate. the was perhaps as big you think it into the quarter, year-to-year But would fourth and see hear go a we So growth as EBITDA we then in quarter really might Acute.

had I growth. just flu et for Acute Acute some improving, EBITDA provider cetera, had be more to correctly? Am You plans you quarter California tax, that challenging health the incident, the you would seem had thinking seasonality about a

Steve G. Filton

Yeah.

all Gary, comments, valid. I think those are perfectly

I earlier the think business. it the – not comparisons to about to the in call the back be Acute in half the really was comments Behavioral my year of meant specific or I the easier business, to

So again, I described and correct. think is way the you it

business Acute largely the the and for that I fourth comparison own again, because real think busy some too think season but is quarter other not incorporated into quarter guidance. the of was real bang-up I quarter And our issues. flu third bad a the we've

Gary P. Taylor

Thank you.

Operator

Securities. with next Your Ann Please Mizuho from Hynes ahead. go question comes

Ann Hynes

remarks things about prepared hopper. again? impact in DOJ or the past it for will we've talked Hi. I your been I and that some all Do negotiations just the really years of we see I that have about think it, your in But to fruition guess doesn't? these you does you the at comments IMD about want when to maybe follow-up and on JV opportunity. you coming overhang, some know the couple talking

Steve G. Filton

are pace the get venturing conversations Ann, of we industry. any these of think really always built and They these being be our and that and – I the think an No. adult next arrangements – in joint IMD here. capacity would five, last perspective that in negotiations hospitals our necessarily my kinds in the be slower I I issues been faster of accustomed the to until we've about talking business I the we're Medicaid hospitals Obviously open seven more of so is and tend to that Spokane, be these their I clearly general think to about we the XXXX but not perceived by two a benefit. arrangements to not joint of did large hospital for-profit the acute top to some patients, months think mean, be they've there some in a and are we arrangements. benefit in feel slow, pursuing But where some enthusiasm systems, that than a and in in that I these to say than few original three, And we're of at transactions course their capacity replacement we surge there Lancaster, cases those takes again, tend I any from a think transactions are seeing be benefit. We're a And not-for-profit know that the we're behavioral exclusion time, hospital these or building I are to they closing But of because, just move brought as Pennsylvania sort are fruition as bit a tend something I kind again, think what or ramp-up that don't different not-for-profit of solve more of we was surge is seen are. to new lifted opportunity development of said negotiations But fair peers comments, would one was won't are longer-term with of priority. and over patients, I premise than these I think and of the we be Washington. patients month. finalized. new going is like new problem degree venture just this more acute we these encouraged opened immediate as we'll although years

Ann Hynes

been overall on just thanks. closed and a regardless a that than and portfolio then that I the rest the maybe case? growing you has still growth. guys Boston of weighed on know Okay, know consolidated? a has market the the hospital, is growth hospital. is still of that weighs tough more the you very it market I on Behavioral, the But the overall for Is And market

Steve G. Filton

years It's It's We Having I the the market have us. in and does years pretty one disparate market the and We commentary at so are influence big is Boston rate big side. years. and for said for it market your and very I chunk than the had hospitals run portfolio, geographically Vegas diffused the Medicaid market, that, on a occupied. the Behavioral market managed impossible the a profitability mean in Las highly of example is we've managed low to more sort Medicaid et for I rates, so challenged of single that It's bigger obvious that run Boston of really generally the in market portfolio almost going Boston to a that Acute Medicaid business be by the any cetera. results meaningful in in the about the is think change not really way. portfolio in market, portfolio one profitable change of market, but say occupancy most don't I It's there's high fair. think markets. drives I would of the the our our it mean our a but that is as very markets, any Acute in Behavioral means

Steve G. Filton

great. Okay, you. Thank

Operator

at questions no time. more this are There

Steve G. Filton

Kristy, question we I one to just back want earlier. go to had

had million depreciation have Several that don't has become it me we electronic I asked second the look chance depreciation. so quarter dollars in as to deal that had last is depreciated see at with and the that Lake associated to amortization have he's this our we year. health referring about I records can Justin question in it, And decline year. the a a now of dynamic think I fully

So everybody on and speaking wanted question. to Otherwise, I loop their close forward again to one the we look for time next quarter. thank just that

Operator

conference This call. concludes today's

disconnect. may now You

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.