UHS - Earnings call transcript Q1 2020 | Universal Health Services, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Universal Health Services First Quarter 2020 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to hand the conference over to Mr. Stephen Filton. Please go ahead, sir.

Steve Filton

you. Thank morning. Good CEO; joining our Miller, President our Alan on and the also us line are Miller, Marc this morning. to the March We Service’s you this the of welcome Universal results for XXXX. first XX, ended quarter review Health

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

statements reading XX, For and year factors statements, I forward-looking inherent in anyone these risk our in not familiar factors ended on a risk with of careful Form the and the section risks forward-looking XXXX. and uncertainties for the recommend XX-K December

We'd like up business to a of call trends developments to and highlight just questions. the before opening couple

last million the loss investment, supplemental certain per share schedule discussed notably $X.XX diluted items for of reported the the XXXX. the a $X.XX most company was attributable adjusted $X.XX impact net reflected quarter. on unrealized our securities $X.X with diluted included As release marketable UHS net adjusting income After of March attributable share our for the in share per release, the for XX, night, press the ended to to of press as income diluted UHS or held shares per quarter on for

of the patients and In the volume of and last segment in suspected our two correspondingly, were our the of of During Acute COVID-XX two facilities a year. dramatically the in weeks first however, declined. Care the COVID of tracking months half quarter, non-COVID incidents the prior and volumes cases modestly increased March, ahead

first and second in the procedures as March, in elective/scheduled emergency decline Care continued decline Acute half resulted visits, at in room admissions even at into April. that our Care more admissions Acute Consequently, period hospitals income we well experienced a in during volumes decline in hospitals. precipitous significant This patient quarter. a our The decline declines in significant during as in the XX% two-week of

similarly weeks health was volumes admissions in segment patient behavioral significant continued prior at have two The tracking in when behavioral ahead the that income operating XX% a The into decline until period. of resulting year health our experienced mid-March volumes last the facilities declines in declined also quarter, the April. during of during significant

business to the operational deal COVID-related personal had volume to addition on In and decline, results, challenges, on both as a other as a segments constraints material well with protective lag testing on shortage equipment. including

Our possible. developed and keep paramount steps concern all to was patients when the first our as crisis safe as the necessary COVID taking employees

created dramatic and to we recognize severe to declines of by stresses crisis steps mitigate We beginning end the revenue by the did COVID financial protect and April, the the and the March undertook of across our three, CapEx in initiatives repurchase suspension our capital and including our share significant of of structure, spending, reduction all a planned programs. one, reduction quarterly two, and dividend categories, expense cost a

and volumes recognized in have number subject $XXX strains XXXX. shelter we've uncertainties and will a meeting when to our for qualifications, place directives certain the grants UHS's relief the projecting Given to Congress which levels, normalized CARES providing being bills placed of passed will approximately has the coronavirus to-date. industry. lifted are hospital received return Act, withdrawn guidance has and financial hospitals hospitals more severe on earnings be specifically million aggregating to the to pursuant funding hospital

thus received receive near million future. to we're now Medicare as and additional accelerated in totaling have far In payments Medicare the payments accelerated hoping addition, we $XXX

against of XXXX, cash as Before these operating of additional the to back XX, had flow. giving under capacity $X.X in loan March billion we approximately facilities unborrowed recede insulation it in funds existing to decline provide

time. questions your answer to pleased be at We'd this

Operator

Instructions] Altek of with Barclays. Steve line from the The question first [Operator will come

Andrew Mok

organization. the you any differences My comments Andrew impact highlight two for is compare on and contrast that segments between the as the in and Appreciate all expectations phase? your had an question, pandemic business Mok everything on can doing baseline Steve. This those and recovery the during you’re segments

Alan Miller

on you or difference suspected in To and patients have patients acute the is and in me, emergency and procedures. increase Acute the COVID, displacing very large Division, significant increase the number that the COVID that a through elective - effectively of a coming displacing of the scheduled non-COVID biggest in patients, room number

have So - negative service shift unfavorable very shift effectively, this you in mix.

higher are our expensive protective who patient of other more to you're losing you've And March. because population. taking many last a those to of of of this that month weeks little treat the of protect margin and isolation our business, a and more got of So, - medical all higher patients the the lot then steps profitability, employee couple bit we're again, for month

necessarily service-line patients On any the March, weeks of that than And would severe side, don't lost an more mix other the operating more I it behavioral In in was not lost in than we and income two the you of that amount volume in that behavioral that's results that as we Division not those while were income retained. insignificant division. was same words, the the negative shift. operating the profitable I last what decline think, we patients why, the describe have Acute

Andrew Mok

delayed a able from the sequestration? just then dish to and And question. quick you Medicare numbers quantify Are the cuts impact thanks. Great,

Steve Filton

probably we in the of Andrew, XXXX over million - originally of to include that million income the what that's would relief, $XX from that I combined, and have we I balance additional Yes, about also EFMAP $XX would estimate, anticipated. would

Operator

Research. Justin Lake the from The question next come with Wolfe of will line

Eugene Kim

the wanted is missed lost that how cost-cutting, acute ask In revenues acute we amount? dollar how I about color dialed to same QX, about about think that going to behavioral margins our for and and point. revenues think should on This by numbers EBITDA forward. wanted should roughly going Eugene pre-COVID Justin. both in get the this And, you. some Thank forward on from obviously, to for with and improve

Alan Miller

March in have time until we decline aggressively and looked April. shift to of business our structure the in that the categories are So, since of cost as of the the as - all in across we've end implement didn't beginning indicated, stream. really expense in our any March suddenly really volumes two prudent, so are the many - making cost-cutting my decline at of the significant significant revenue measures our and we the in occurred we last across then, and weeks comments, as very think portfolio, But as I Eugene, reductions given

it us business at to it's that in in is revenues. commensurate a business to hospital reduce impossible to think acknowledge the the and fair given I is level nature for the cost the dramatic model decline hospital revenues, of But that reduction the

at cost that structure goes that of to hope that half declining, We'll the I continue is literally of business difficult be project, rate time then we for thorough probably is done we've the our on on. lost but Obviously, So, of as will revenues measuring to a we appropriate the and say can reduce what some that are restored daily this volumes, cost if job. in a evaluate process would sort are our pretty basis.

and as business, as decline to purely revenue be it on our dramatically has in cost-cutting business, as deal difficult occurred that But is one in a with has basis. suddenly any as this would

Operator

The BMO with question Capital Markets. of come next will Borsch from line Matthew the

Eric Glenn

quick behavioral impact for is question on This increase on Matt the modest on the and a year-over-year you A - Borsch. Glenn in incentivize in COVID-XX side admission both Eric mentioned January obviously, in indication magnitude if February to February, of increase the impact? in and able to the January to before the that Are virus year-over-year mid-March. you falloff give any prior

Steve Filton

lower the We single-digits X%. I were X% was the ahead like Yes, year. it of X% X% in or tracking think or prior

Eric Glenn

Thank Okay. is And helpful. side? you. Or the That's acute on that…

Steve Filton

of business. true that on both think I the sorry, sides I'm was

Operator

question next Deutsche with line Chickering the comes from Your Bank. Pito of

Pito Chickering

Thanks ones for my taking here. Couple questions.

end residential acute? others? On of at of that can that's about talk and between segments than the seen had there substance saw are behavioral have you at And side, point? any any the impact they segments different this And trends March acute, the abuse and within April more like you rebounds the

Alan Miller

really make here, generalizations broad Pito. So, difficult it's to

saw behavioral I'll effects what it downstream referral sources. think call business the I from our in we was, the

closed saw business schools emergent. as tend emergent, in be decline adolescent quite certainly either So, we quite be around not saw treatment outpatient as to our We number which not a in country, when decline in the revenues, to outpatient markets. of definitely tends

We've replace telemedicine that. of capacity to with outpatient tried lot things a other that capabilities like and

abuse discretionary than substance and little or psychiatric I mentioned diagnosis. other can some You substance tends more treatment be, abuse to be, bit again, a think

we So of some in in that our markets. decline saw a

well and rooms. market. fewer were from we vary as But think saw around with going behavioral were referrals fewer by COVID think, We acute country seeing overwhelmed emergency it rooms the I acute emergency as hospitals, acute to behavioral - and patients, COVID-suspect were definitely patients I did

So the incidents that the patients of return as we've think but of pattern hope we'll kind board, various that normalized of the COVID a again, referrals to stabilizes country, across I more our from referral around sources. seen is the

Pito Chickering

mix us cost segment et are for variable think moving side, the each P&L cetera? on for of there fixed the the about a expenses cetera, of versus is you Can Then lot other et through Great. parts. OpEx, S&B, what walk us and statement help

Alan Miller

lot say not of You to I I our that quite. et that of can patients items variable equipment, variable, expenses, cetera. start for tends it's XXX% expense, focus on there's most now, the because been chain the protective the obviously, personal be including with will a coronavirus supply think almost supply And

up really we've items those on possible. where So, tried to sorts of stock

sort of same on maybe look it, And operating I tends to think say or at expenses. you would to about expense semi-fixed, XX% thing want however salary be level. semi-variable the I

expenses on level. tend to flexed step think those a be I

more that directly chunks, we variable. costs reductions sort of to volumes So, start in decline as make in are not larger

goes collection, go there the fewer and and ancillary cetera. But the like beds. words, like at in also going more nurses we're overhead obviously and dietary to down, in bedside and expenses billing departments housekeeping headcount occupied going other volume because down, overhead departments, general number as volumes to as So reduce other departments patient of and we're et reduce are

of care level the this exercise levels. also are responsible patients going I in providing care our pretty provide doing for as remain through sort literally being to pretty at the those about that conscientious this basis, that of to that highest so on a point level still that normalized a quality way more that's and effective think volumes and we're we're hospitals return prepared So, daily the of are and

Operator

the Capital line Our next from Morgan question with RBC come of will Frank Markets.

Frank Morgan

the more now. I much timing around regulators expect accelerated kind payments guess you today in of you're to feedback your then your kind right some And the either are that plan what in focus to restart maybe And seeing on physicians what finally, thinking from I you're there getting operate business, more of and wanted color what Thanks. state how you hospitals? receive? do or to then, from about

Steve Filton

so the billion off last the far, The so first received let sort dedicated we've grant two CARES payments $XXX the payments are hospitals. Yes, outright first. me question the tranches from that of the Act, to tackle the

that's our $XX $XXX two tranches were tranches. those two of million first billion, So, first share and - is the

So care billion uncompensated for the patients. rural each at government and for $XX tranches hospitals, has three identified of more COVID for hotspots

We don't use what going allocate they'll exactly know those government the dollars. allocate to how is methodology or

government as in to there's $XX fourth how passed us billion So, will how those of has it's then that $XXX going healthcare relief anyway of coronavirus that. includes billion not no for $XX will identified a the there that to the to for that for really funds and been they're remaining bill difficult us, it's been indication was be original share The our by billion distributed. distribute project And difficult providers the what was on be. little or

can't So, that. estimate we really

of As since Frank, first and of trended the far volumes how business end sort about March. as the has your question, the

Texas some seemed think it's our - plateau bit April in I in before the say, to before on little one elective got think cases, little better. a states state lift peers done scheduled of procedures and their already fair to for most to first a of the and they worse notable to things a us, of indicated, I ban seen being half probably start so. We've number have get

and Texas see in we've hospitals scheduled started actually and resumption procedures. elective of to our of some facilities, in ambulatory some the And

May states treat the other first lift so Florida, closely those and that to patients begin that is resumption very our most are can in employees consequence, our California, that with do of the own for ready everything as to in certainly be and think with of to are general the their Nevada, would be physicians, can and I as sometime we to bans working we expect, - lifted. expectation quickly states we bans the will our we half of

will by occur, hope In is is themselves how that's - And of quickly going come of feel again, occur patients our protected. control. I we May. can that from to our geographies will of can our How perspective sure in early and be it that beyond cases, a to think and dependent that lot they is most sort I We're feel. to doing on place safe be certainly a make hospital like the a think patients procedural everything

and therefore, that the can people et cetera. being we They'll virus, sure be tested unnecessarily are they're exposed make before treated not to

occurs point. May, to that is this is again, So, and the of improve at and it April difficult very how that early the late but quickly to trajectory hope say, things begin in

Frank Morgan

the you were receive? there also to Thanks. there accelerated just request, did say additional some And expecting dollars was Medicare on payment you

Steve Filton

I half There's only those are that government providers, us. least some timely, all informally, funds for reporting have requests Part we've mostly should told, and to slowed we've in which I that But cetera. that not those applications received them. would has be to in will the those that B paid impact on of be payments, think those our see. theory, an waiting applications And indicate Yes mean - been et and about queue filed were at the we're been down requests

how we're plays we out. is hope to similar see I we we'll what but our received, will the amount already So, that think question. waiting receive Yes, take that an to next have

Operator

from Bank of comes Fishbeck line Our America. question of next the Kevin with

Kevin Fishbeck

and spend delayed time wanted a I deferred will think the coming And psych up segments? What guess - again both been system Just say into side? - that, back to when you about that understand could try little you and do as I if more you you you guess. the or have the percent after end procedures then in think can on

sense coming Because me, very like volume elective to - process into it’s from does know demand reschedule I clear if there. the side, if if understand your deferred there's Thanks. all, the deferred come acute is on of the I things makes ERs at that? most back don't That not system procedure elective I but guess how - pent-up it. same and

Steve Filton

of obviously, has it's And ago of months world relatively if sort the scheduled percentage. or you wrong. I asked our procedures had have the pandemic, that two I and told context elective Kevin, would been look deferrable. a discretionary were so Yes changed. of And me you how this in much would have think I small

and significant lot cardiac are I procedures, a like like orthopedics patients what's things cardiac a surgeries oncology where being procedures, surgery, deferred pain. cardiac of heavy in neurosurgery, think stents pacemakers, amount are of basic duty caths,

think think think up discretionary period that and exactly I described is wind what do I is, again ophthalmology perspective difficult what a it's And don't And over that not of time, procedures view certainly are those I of those I deferrable. procedures, and point done. define describe would getting sorts most I theory cosmetic think generally, that a but have really of as I that things procedures our absolutely is of would procedures and discretionary. of very We our lot procedures purely will as to

procedures them of haven't in kinds the done We those years. still for do and hospital

our on of as will get view that's the the that postponed ourselves analyze physicians. take is have sense we mean I procedures we So, been the I get feedback think place. we that side. point our acute that's And these and of ultimately most that deferred from

question with patients know side, same forums, the struggle We exactly posed. these you at et believe other that where don't On in little a We bit don't are moment. treated we the they're behavioral the being cetera.

we believe And volumes ultimately normal. again a will consequence, return as that behavioral to

majority and normal this for struggle of of in illnesses it's the a that chronic than to As - illnesses unreasonable more stressful a we're environment mental those with vast stresses likely an environment that with some think have to might I they are in a matter folks of period. fact, who not be and these extremely speculate people are in

like, get back think feel I ultimately, again, normal. So we volumes to will behavioral

- able not think lot trying our our understand in the of level there time acute is behavioral in that moment, We're referral some being I think, side. normal the I'm activity. normal at sources in they the sense spending to start a to same of volumes get recapture business sure to that to But system. these I where there's of of sort of the majority sense a back where once, patients are are resume - of

efficient going of we're And but of traditional indicated us way. behavioral to as If through think for some earlier made in seeing are my now April, latter progress. again, referrals, the glimmers then the I at in them incremental are ways being least we've that of without hope capture there comments volumes them an half think I some sort

Kevin Fishbeck

margin, have what And second demand, demand you pent-up demand amount if think of if year? just pretty if temp or to looks both How question, about margin, I this in maybe there’s businesses. the that nurses the that margin to last mean at business because about pent-up normal lower hire back of you more above-average pent-up do half can staff? margin, coming probability things normal you coming an higher does the come like of back in the do in there's think model about How - think you but guess easily, I concept we

Alan Miller

and historically that have treats had the just it lack reality sense They've patients. of those the traditional reduced sort patients the back a there's come hours would at of been that My there because is largely staff is, available. is ones The margin.

over But been if most or cost temporary is of, for under structure patients they treated time to or the the weekend have cost those much during the think run that hours some maybe a traditional part, element very labor some under. we're So, day. would structure there later over going ORs resembles I required the treated get the

Operator

[Operator Instructions] the The next Gillmor will from Baird. with question come Matthew of line

Matthew Gillmor

a you're trending? Steve, I that's some in to And seemed you been metric. the reduce of restrictions? could curious behavioral It utilization talk was quarter. sort the bit if the improve payers length-of-stay about was of seeing I hoping how little

Steve Filton

to COVID a in Yes, when patients. I one to that had have the of was way businesses, pressure attention. the just there's change just kind the as answer, on sort whether focused over meaningful It's as of or the we quickly. rest less payers to a approached I that's turn tough know think always that's volumes also hard in the was Matthew. the business little There world And think bit some drop patients perspective less of have behavioral a it's

that. of So, of saw trends any think weeks I'm unusual saw quarter reluctant length some stay. to conclusions from so I statistics I we've even April and draw into last anything experienced; and ever the of you from like of are couple and the different

Matthew Gillmor

you enough. quantify reduction could Fair the Steve, Then to CapEx.

I think how you you much the talking can it sense previously. think you us give million for had $XXX reduce going forward? been Can about you just

Steve Filton

over a a and view and to is sort up of We're we we'll of that it’s course that the obviously, probably less return approach run. have projections twofold original at I make obviously, capital a were. short as decline So, investments our quarter wind to least a our ultimately, think cash than necessary. the revenue capital will the third perspective think commensurate reduction. stream most spending flows are impactful I sort XXXX, And that with ultimately, trying Most our in the and that revenue one of our we're point seeing of that conserve what from on a part,

as relevant At several bigger for several in experiencing the is that years’ for same we've projects time, been and CapEx and years, the and I to our contemplating, certainly that construction services cetera. been construction downturn under And construction think this one a that that worth of the demand year we've is lessens. included pressures, for be benefits those providers this et the costs escalating will the pricing their of of and have pressure some sense

of we feel reprice, et recast, at projects, think cetera, redid prices. opportunity I So, us there's more to many our an reasonable for

of And certainly that elongate we're we think for to if those So, in to this willing period. effort do I that. have projects, or the to we're going make the delay to do timeline some

we're the focused on I objectives over course next of the of accomplishing think months. So, both those several

Operator

line the from with come of will question JPMorgan. next Cohen David Our

David Cohen

My sort year? mind, normal sides the question month segments. you inpatient percentage whatever for what frame relates of April, census as I you're the currently can normal Thank us time of running of or for comes percentage both say, your wonder at, a you. of to if to of for this the of of

Alan Miller

So, that my down down were XX%. of in the prepared March care two comment think, about weeks were last acute XX% admissions and indicated, I behavioral

census and around acute sort patient in April. think I in days number activity and of has admission that settled

of we've numbers are of into the reflective April. think behavioral April. of I decline March kind the we they're the of again, a little those half back little gotten seen. But getting of I both In cases in reflective But early they're in better. the think have better saw level a bit declines numbers

David Cohen

Thank Okay. you.

Alan Miller

him? have Steve, heard haven't with in touch been you from AJ. We

Steve Filton

spoken with Yes, have AJ. I

Operator

next Mayo of UBS. Whit Our with question from will line come the

Whit Mayo

bit could a be just on working Steve, little if helpful wondering a triages you It hear operationally. a what you're coverage from I a little might to the bit your but standpoint, process mix identifying that registration how cycle? think may payer standpoint? was Medicaid revenue would help process and from you're you about about you, talk could and doing rules eligibility I presumptive just talk

Steve Filton

many retaining think who furloughed but not their are and last in insurance. six uptick et industries, particular in the our I significant of really we a lot furloughed, patients Obviously, haven't benefits call lot a obviously, change mix employees maybe seen payer a over again, a deal. see think weeks, are great working not run, without short the employees cetera. I'll been in health Whit, mean, I I of Yes, in it Or have

patients. forward, significantly increase think to the our that uninsured a Obviously, additional that we'll states in is talk in expectation degree of some insulate there greater federal the cushion COBRA a uninsured I that the here. the expected Medicaid there's do, unemployment decade Obviously, expansion going is ago, Unlike from uptick an to it's as recession rises some see will an number volumes. obviously should in that Congress provide that help of which There's and sort of for benefits some should some outlet exchanges, state patients. that extended are provide

And and think so, that use there tool our time that who deal we've is say sure working prepared need. than certain This in rewriting make this are drill. would I patients we're our the I and prospective folks that crisis, folks playbook to our bit get gone accustomed coverage procedures issues admitting sort models available and we're environment that with. scratch to not are cases. at recessionary is every of least the where almost them sort with first different through And COVID of a coverage the patients they for employ. that us the A to something from we to little

Whit Mayo

two for would trends on helpful. receive? what The malpractice million you the And $XX give Thanks. the did quarter, a that the clarification driving That's Medicare-accelerated Maybe just color expect more in any be increase helpful. to number questions. you payments,

Steve Filton

Yes.

rules a amount the similar as So, said million to received long in change the what expect their doesn't previously the change $XXX or in future, as midstream. filed and CNS approach we I for receive was, have and

to based As minds, or far a of malpractice last the negative in number quarter as it and cases adjustment of over large course really required the relatively on of some had small sort adjustment, two, reserve. outcomes that our - was an our the

too a that for us expense affect it's provisions, how will et our a think early little make cetera. about to judgment I going-forward

us So we monitor need the that we'll area obviously we to feel but it's continue to a adjustment we now, gets million as like be, forward. an - go to where $XX right

Operator

Piper the of Sandler. The of next come Sarah will question James line from

Chris Neamonitis

do I much on wanted capacity for know Sarah. how just to or This be in, is you'd you you procedural Neamonitis when to able to OR come can check mentioned that Chris just pent-up add I in quantify clarify for of back, volumes Steve. demand? maybe the expanding some meet capacity

Steve Filton

I in mid-afternoon most and it's XXX% the capacity. Look, early enlargement, close fair morning, so. they're usually, or they operating not of anywhere hospital operate think sometime to general, say hospitals And our that most until enlarged, Yes. in from to

we've the into the So, weekends, on later had to operate and certainly option day cetera. the et

a dependent, think frankly, et and of surgeon lot I capability quite on is to cetera. that safely, operate capacity their

think and the capacity our is a I expand we capacity greater employees than sort demand physical have to have up our I there of a we the that’s pipeline think of volumes. if catch or normal

to hospital, perception so think mechanisms that, to of going not any lot on to on back a But in patient willingness dependent be is patient again, come much and I gating we have the but hospital, safe it's they a make our upon feel environment. it's incumbent hospital like cetera. place a safe come to patients in as providers treated can and be and us et And the to come

to a should have make be everything significant to they whole our treated. like host concerns in not feel about can I in doing we're think and that we do any of coming patients place to have we procedures

Chris Neamonitis

Great, thanks. a just And one. then quick

in psych, clarify coming how referrals You just of also from any mentioned can behavioral a decline you on the too, maybe much dependent here, schools? business is of adolescent but chance kind

Steve Filton

Yes.

So, that I residential was business. particularly the a about think, comment,

psychiatric but patients that and behavioral adolescent general to was in residential had business referring the probably that's of We residential revenues. Our behavioral business our overall hospitals, before, is overall revenues. our I specifically certainly our of XX% XX% in about

Operator

come next line from the A.J. Our question Rice Credit will of Suisse. Instructions] [Operator with

A.J. Rice

protective the of officials like a it that on that health locations that was officials in gating on costly of but a to equipment, - that? that that are factor some of now, are standing also One of you of do to seems these to a reopen. I allow you that in was procedures are of things. of back? enough feel And said your supply your public come starting to to couple willing know bit terms or something there's comfortable people public allow a wonder, because Maybe think I for willing health some more little are that's supply some to when you of these How the markets these

Alan Miller

Yes, A.J.

in remarks, far, about challenges PP&E. think again, tested supply thus two operational of the prepared you're I, and that been of right. So, faced the challenges talked our capacity I have had hospitals And in have I my

test patients meaningful those way, and I elective think to you that resume in scheduled in a procedures have advance. able all in be to order to

in for fashion. et And, reserve personal And to COVID obviously, patients, resurgence timely have a And in second get cases. those adequate their assured obviously, or in is a cetera. there have also that you results equipment protective if wave also be

I timeliness adequate very think the supply to personal we worked that that improved. chain the weeks hard and that is equipment protective has several of ensure and the various for over So, last have testing testing capacity the items

as with I think forward. in that And we've those issues made you. both the items think move continue both be cases, to - we I we feel of will agree But like progress. I

issues. to elective to but just I some procedures both degree, our to think for on to industry will that a us an continue those our not make kind of ability require progress normal of resume schedule UHS, as ability

A.J. Rice

Okay. but Obviously, that anyway short-term help obviously if for early that with of broadly, adjusted beyond last that acute what's in efforts around labor maybe be Even procedures. cost might expectations pursuing? cost something you reduction But that now. sort backdrop, going reductions will labor it forward? - was on you're just And some you're a uncertain side. just year side the that more late happening I this, economic wonder the challenge implementing too on obviously, Has

Steve Filton

tend mean a dramatic the higher labor six overtime seven well tighter issues or weeks, seen, be we've of And in that we're Because last is use and we are period issues. muted reflective struggle as what I I unemployment, to a with again, I somewhat a of demand as both of there period nurses certainly they those as market. much a will that less of think in in long temporary reduction registry as our and think personnel.

that the is a certainly demand benefit decline side decline we've yes, revenue seen. So that in of and

A.J. Rice

as you know maybe it's weeks whether not. the back least was whether maybe the about to I with around you that with can Obviously, the UNH. happening you had were two all do. getting expected? up what on HCA that's would thought there, playing some And had discussion was you expectations as understand at before network seeing there what what last you was And But market or hard out that to March, progressing in Vegas of comment Okay. this into

Steve Filton

share as our year-end so, expectation largely that that Network us. we Yes getting Sierra in that by were an that HCA's on of some in a the was from rates decline of market is, were dynamic amount see offset be would call a as would increase those we patients. United in for push volume made shifted largely we our getting But HCA hospitals. the back to Sierra/United that comments That be would on

the of ourselves to first bulk I that for think, the satisfy quarter, was the we were again, that case. able

in our couple of in we as in of of did patients. the the Sierra we other a Obviously, all saw decline patients quarter, weeks last

But So, that it difficult became to certainly its more of March. half do be turning a benefit of and that correct wash least contemplation last out in is impact initial bit original the stage to of the we're our mind in for the slight to was this March of is either very a and at I or a us. this - little think, analysis

Operator

from question come with Citi. the [Operator Instructions] Our line Ralph Giacobbe next will of

Ralph Giacobbe

I was sort views the Just And it a strategy hoping structural sort you little little a sort the of backdrop. if of bit and thoughts industry? was of could your any it forward changes potential apologies already. hopped more business the Steve current so positioning about of in talk more, of I terms or on downstream, that partnering more? whether taking around more But in on or risk, for the that Alan, changes, asked late if bit investing sort

Steve Filton

the I made in pretty a we prepared a Ralph have a year. I couple as prior the would I et of our make ahead I comments, think of middle broad robust businesses both think, That up until environment. were cetera comments. - made. were number we our of again the of operating March point, They tracking in peers mean

I I think was expectations. our And in fundamentally think they own were own of changed. minds, the meeting of sort demand was internal good, our good. The that none business has

will if has I said define I practice ultimately, return. I've COVID But as the to patterns call on before think term, and patient I'm the altered crisis think that the short the you demand will, in short-term. how exactly not that sure

don't And the thinking that so, we're fundamentally crisis. of COVID differently the I about because business know

cetera. of questions about with that risk et more about Some do taking to of sort partnering others you that, we and are the asked thinking

I the markets, subsidiaries. We're do think through crisis. in number the we're doing our we've the about COVID that that talked occasions insurance Medicare that through number a we're things before - COVID products our on Advantage doing to well a of of doing that

all have We of care our established organizations markets. accountable virtually in

the crisis. and again, the think I and implementing recognizing many we landscape so, were employing healthcare long of changing And how COVID before strategies those is

COVID altered crisis trajectory I don't the know has that all. So really at that

Alan Miller

Miller. This is Alan

Our good shape. is business in

are Our modern, we facilities located. are well

We behavioral be just strong the between to and way interrupted nice division And have what week. was we've very in acute. on a a been

just is the got strong, COVID-XX way that and is reputation at thankful interrupted. I or is that seems are We excellent, on down down. point, financially we our it this am

return. of business that will point, fully Our and by our June, will business open end some up expect May, I July,

whenever will about fact, again. start time, the elective of future, expect I’m pick come As been given to have right the that I and we a very completed the matter not all back surgery of hospitals positive we'll up.

Ralph Giacobbe

gains And back. then, helpful. back industry you opportunities that see of opportunities perhaps one, come I your it's all M&A even into guess dynamic Or backdrop if and from competitive just don't of competitive certainly this? it’s share those do sort within market the market - stemming as you you in sort or last along for Thanks. sort your do my of from lines you? create an argument potential perspective things That's consider see think bounced specifically and Okay. or fallout of you I the mean, really changing to buy

Steve Filton

I we're and we this my it conservatively I degree again to know, some tried I comments, think like to in and think prepared articulated capitalized. feel say Alan think I you positioned, we're well Ralph,

that every high-quality this difficult can environment. degree And so, while continue that care deliver that have rebounds to to And I it and think efficient deliver even we expectation hope we and care doesn't. it - the quickly, we in in

of in in environment this than a in peers our survive we're to geographies which operate we most better and think in position our I compete.

and will better to So our yes, suffer a we're capital I also notion are becomes there and environment, the can't in if they that and think is - those think that prepared do And an in I for anytime mean others don't if the we I the others of we level relish do. this that while like stronger that's that feel investment opportunity in certainly positioned service crisis, it we provide level step can market, required that. of companies

Operator

at this [Operator questions Instructions] We audio time. show no further

Steve Filton

and time. Hope next for everybody talking everybody forward with everyone stays quarter. safe their look thank we Okay, to

Operator

you line. participation and that This your call. for you ask disconnect does please thank conclude today's conference We your

Universal Health Services (UHS) 28 Apr 202020 Q1 Earnings call transcript