UHS - Earnings call transcript Q4 2020 | Universal Health Services, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Fourth Quarter and Full Year 2020 UHS Conference Call. All lines have been placed on mute to prevent any background noise. And after the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] I'd now like to turn the call over to your speaker today, CFO, Steve Filton. you. Thank sir. ahead, go Please

Steve Filton

quarter morning. Thank us this is joining the Marc of XXXX. you, morning, and James. fourth for this results to Health Miller December we XX, Universal also Services Good ended welcome review you

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

up risk statements, not factors I questions. risk our and We'd these December a uncertainties trends anyone developments just to inherent the and risks section forward-looking couple XX, highlight familiar of and and the business on a opening statements factors recommend Form before call forward-looking the with careful XX-K XXXX. reading For year of to in in like for ended the

night, release, for $X.XX fourth for impact UHS reported release in income net press adjusting to the with in reflected of As was discussed After per the items the press our share XXXX. December the diluted the per to company $X.XX the diluted net of XX, as of last for share quarter quarter supplemental attributable included income UHS ended attributable the our XXXX. schedule adjusted

net $XX XX, three governmental months of and Act in reported million these approximately had we million, funds recorded from $XXX income million approximately me, XXXX, ended for excuse $XXX the December is XX of stimulus adjusted respectively, revenues months and various December received connection which included and million, XX, programs. with of stimulus As notably XXXX, most our programs, $XXX CARES in the

our health acute to were those of facilities. revenues For million million attributable behavioral $XXX to $XX and year of the full attributable facilities our XXXX, approximately were

Medicare's which we on $XXX million no accelerated the during addition, during impact received year. approximately In payments, XXXX, our earnings had of

anticipate March million government and XXXX. $XXX We funds April repaid be the or process the of in to will the of repayment have commenced

user which we suspension resulted United As an information technology applications incident, in technology the XXXX, information of in access previously disclosed, to on the States. experienced September our XX,

and technology incident December behavioral unfavorable rolling information ended experienced revenues, billing. quarter Our impact our this the acute in times various that of as and and and our that quarter XXXX an procedures facilities of of a basis, recovery approximately We approximately generally operating at coding October $XX hospitals fourth estimate experienced XXXX, We XXXX. staggered third had time. the year and or and pre-tax $XX estimate million was approximately million restored, during that XX, applications unfavorable the were resume standard at a substantially on the lost result of delayed of income XXXX was million incremental impact during $XX pretax expenses during

a the fourth revenues before experience During the other Act we quarter pandemic, governmental and grants. and unfavorable in recorded financial impact operations COVID-XX of the our also to on results material XXXX, from with effect giving connection to continue CARES the

in Specifically, resulting of declines wages. The elective scheduled days, both patients increased and particularly patient the was acute elevated of and from behavioral pressures, we in XXXX peaked a accompanying and XXXX. with experienced this salaries primarily level December declines volumes expense an wave of January of on procedures, COVID function in along and which half negative COVID in first of impact increased

operating full expenditures during to of million the on plan Medicare accelerated year spent repay in Our million to as $XXX provided very cash $X.XXX to payments, generated government from as during by billion of billion XXXX. operating which compared to capital cash full million activities compared our activities XXXX the XXXX was was during XXXX, of We soon. $XXX we Included the $X.XX during year $XXX XXXX. the

coding capitalization was increased of to XXXX, to during XXXX, days as and to December total XXXX. XX, compared caused to The billing ratio XXXX. year outstanding days increase the delays XX the XX, the debt during December at information receivable technology At declined XX incident. in XX% December as days accounts our to XX.X%, Our XX, to ended by part due compared

opened and we Creek in behavioral in beds new and XXX a opened Texas. XXX-bed Canyon existing hospitals acute our health hospital, new Temple, XXXX, Behavioral During hospital Health

We emergency three FEDs to to number freestanding more our new total open bring XX. in and FEDs, departments, also five opened or of expect XXXX, to

behavioral Clive bed MercyOne opening We Clive, announced de of Behavioral our in Southeast portfolio continue grow joint in recently XXX Hospital, the joint located novo joint Health a hospital, facilities, located venture a Health Missouri two with venture the XXX with Southeast venture to bed more and Behavioral health Southeast the and Iowa.

spend expect billion XXX-bed includes $XXX is to Reno, new to in open the construction to in acute of hospital care of capital During XXXX, which a quarter XXXX. which million first on $X we Nevada, approximately expenditures, expected

our of As billion $X.X XXXX, credit of and December had pursuant XX, available little $XXX to program. receivable accounts we revolving million aggregate over securitization facility our capacity, $X billion a borrowing

accompanying of quarterly quarterly billion XX. XXXX, be $X.XX Directors as per had approximately become of the of XX, In a our our pressures on of operations volumes with March available share and likely our and ease, as made that our have first cash addition, are continue light dividend to trajectory approved results vaccines the resumption more downward to $X.X regular the In financial equivalents. cash of payment Board XXXX, on COVID December and expectation we of in the

that Similarly, the generally XXXX difficult repurchase time. I Board diminish we Marc an assume in results operating will predict questions impact that still from second COVID your We ease the last pending was impact quarter XXXX. to in virus share provided cadence is of which pace negative with the The program our forecast, release, also throughout Director the will resume to COVID precision. are approval. pandemic of plan our of XXXX answer XXXX. at increasing to of recovery But this pleased in assumes and the night's

Operator

the of from line ahead comes Andrew question Mok Go first Barclays. our And Instructions] with [Operator please.

is line Your open.

Andrew Mok

plan I would XXXX pre-COVID think is ahead, given the the about revenue resulting didn't EBITDA should cost tracking I points. basis in When of for resilient to compression tracking structure guidance that but is the margin margin XX be lower. morning. more rebase that behind, XXXX, good Hi, compare

you COVID the evolve So through expect margins lower to drivers abate? as you profile walk that how of us margin and can

Steve Filton

Yeah.

I think, do that we’ve that wages. it some our recover obviously, volume accelerated pressures as level, view than of can seeing demand be I expenses, we – foot that margin will the second. a the will to answer. presume nuanced the will of have a think particularly half feeling the more at which is take But ease I salaries think I longer that year and think you're that demand than they labor the recover believe in of patients – that's declines, those we why point I faster best more I first of think pressures to been COVID likely they in occur will do may XX,XXX compression, ease. the explanation and But the we than

Andrew Mok

Thanks. we it. lines the the I this accelerate to have should follow-up. CapEx expected segments? billion about spend That's or million helpful. How year. of specific Are Got a across a XXXX? $XXX is service And $X range there targeted think to for CapEx geographies to meaningfully

Steve Filton

Yeah.

the remarks to my So I increases. of highlight in some tried prepared significant

building some well the have our have a the a existing capital. new of wide consuming an services on I are in incremental incremental presence and capital. spend this venture number venture I of million de are I will And building market joint big consuming, activity behavioral FEDs I are of expand then market some as that We Those, where with hospitals the hospital. joint hospital highlighted That's think, side But broadly we think in Nevada, more think, Nevada. spending. XXXX mostly novo by there's as of in new we itself. in not-for-profit areas acute increased investment probably obviously, state where sort capital the $XXX partners. That's Reno, in also also ambulatory

Andrew Mok

the Great. for Thanks color.

Operator

Our ahead with Bank Go Kevin please. America. line of of Fischbeck next from comes question the

Your line open. is

Kevin Fischbeck

I to about as kind earlier Maybe but Thanks. XXXX, pricing guess, with Great. was depressed, volumes think up we obviously, wanted strong. I question about of were back that quite margins. follow

back, and than maybe volumes it like depressed the commercial. would lower be seems volumes volumes more it comes of been have Medicaid and As your Medicare some volume acuity

also think might volume maybe have the coming I So, back a comes would negative that it. payer with mix

out? to of about that potential? way would would kind the think margins how on think hear it like not I incremental return play guess volume you maybe you that's about And So given that whether

Steve Filton

are elective and patients unfavorable non-COVID mean, scheduled if a both I you both the our down business behavioral think and levels. COVID of dynamic replaced patients. I from room absent, from in down patient business the Kevin, pre-pandemic business COVID is business are presence volumes and from out consequence, the really that as acute days XXXX. pre is And been have levels segments, in higher-margin emergency are the were business procedures from pressure crowded idea essentially, pandemic lower-margin that's is has broadly, the the temporarily So in missing and that I down of other hospital And COVID think, the the will, and

we of they have medical-surgical kind the so, a as I normal to COVID a XXXX, in started you'll to see ease as think think return expect will. I more And as volumes think the as I do of they mix.

on our return previous a the slowly I labor rebound increase. of in in in side continues. side as of as we margins also and the And patients will on begin clearly acute increase I noted pressure, I revenue XXXX. as better year I patient and XXXX the be mix accelerated in later the or But to labor that behavioral XXXX. will and ease experienced, think, improve comment, think is revenue On what sort and have But supply pressure equalizes, will behavioral base the particularly force our will really think of will in a begin to margins more my

Kevin Fischbeck

higher case that... historically, that? that So normally, but but that I equaling might profitability, that, point think weighs the surgical normally case be I that, the higher versus is your acuity might be guess, of Is medical

Steve Filton

just drove was Yes. often they're not of a patients. in patients. They're COVID and in older. sick. higher medical Their certainly And historical patients. as about They're is I as length really mean, patients. to COVID longer apply XXXX higher thinking profitable bit or surgical acuity quite the stay the segment acuity to acute They're point, procedural what your really doesn't

Kevin Fischbeck

of just on that, then showing you. peers obviously, understand pressure the And volume than growth on stronger putting your much obviously, side, the behavioral Okay. dynamics but COVID

been Do do to Or market you have sustain losses share? year? feel share, you've you businesses? market share how over guess, there So like last the think across I about market been your able your

Steve Filton

Yeah.

it that in as believe, data space. degree acute space available share most have not is it that But for We as we the widely our available. to is part, I the market market think the in behavioral is maintained So the share.

that the preclude a the in I later them And express facilities, think of And us generally really more patients look other I amount we've peer, comparing floors, and protocol alcohol the patients we level of on what our rather the a isolating is public hospital admitting us other that virus has COVID Internet been think, beds measure for we or experience and for of intake in has keeping inquiries, ways. virus just of in noted about proxy by markets, COVID internally, the occurred, don't behavioral of is and time. important on inquiries particular their that employees to at etcetera. do non-COVID COVID has their or whatever, a all demand has incoming a sort for their to inquiries, treating But in calls, what XXXX got we meet measure in that for at our me we significant particular either know is reason, remained a difficult of either we because challenges way or of strong. year, or that in I primary question virus demand your of don't force is that labor metric units what or number patients is out some it the to their from because for geography Kevin, particularly, telephone have in exposed the simply sort what their with operate can't because that has related chunk patients their been safe. point To just know. to and their our in our I

part volumes the the behavioral care and most should been I what's the ease for do COVID-related XXXX COVID behavioral those can to And in think And we higher all resume really, have has at than So impacting that internally. dynamics. levels pre-pandemic increasing. believe our look we biggest quite has strong on pre-pandemic think behavioral underlying demand dynamics we a belief is impact in volumes us And been we because when frankly, for XXXX, levels. potentially that

Kevin Fischbeck

you. Thank helpful. That’s

Operator

Our line with Giacobbe Go next question from the Ralph Citibank. of ahead comes please.

is Your open. line

Ralph Giacobbe

of degradation, Thanks, volume maybe good last for, a the other? one just and bit maybe part of maybe about Can greater you're guidance side margin the or segments, the that Steve, on how sort And on morning. embedded terms assumptions between question. differences versus in on any that you little help either pricing improvement or maybe of, thinking both? more in it

Steve Filton

getting extraordinary otherwise And in really I with sort that developing the thing. dealing budget were forecast. think Yeah. service employee process development, I basic well. ways, keeping pandemic, our the mean, I did base well, terms was our were lost focused of presumption lost think of year challenges. advantage XXXX safe, year honestly, mostly our business XXXX was of underlying that XXXX the on what expansion, patients Ralph, we with so of safe that keeping and commenced them we or capacity many all We line a expansion, taking in Those a

And kind segments. our both what we for we to largely really began and XXXX has about and really for business forecast XXXX so think that's true been XXXX started original a our with when think forecast, I value of

mid-single-digit will, cetera. So at have levels, of grow if both view of a pre-pandemic off a et will of, XXXX base business I think point kind we you that segments

declining first I look be the it year historical dynamic earn we QX that think the in quarter. easing the different on. our have year XXXX the Although we or the that the I think the of as in of and this point increasing a will margins labor normal we trajectory, than is earnings pressures volumes a so on. from is that half will trajectory And second historically, what's revenue do goes biggest year because of more of And half of year, differently and goes as view COVID increasing in

the I grow normally a sort range, in sort would different of different think in than a cadence historical two So mid-single-digit expect. of and although business that trajectory segments we

Ralph Giacobbe

some of tracking limited to Fair any on weather but particularly Okay. months anything All the is data, the first of impact the specific and And maybe read in know, XQ? couple right. for more storms enough. And of early Texas? I it obviously, recently, year? similar then of to you

Steve Filton

Yeah.

volumes we So on the surge of a first year. in that point, first January. almost the and as I hospitals patients said in than a significant half had of our my prepared COVID XXXX saw December other of all And of we the percentage into any remarks, on in in COVID month December in basis continued surge more

that times think things out sign And since the the we and then. year the and peak that view one that pandemic COVID I we've hospitals of during ebbs business the to January. sort But all drop, think rather an thing. as when noted virtually that surge during other our the rapidly, COVID but pressures tended and it's again, an volumes returns, other of volumes and as half business not of flows instantaneous and is immediate crowds volumes of several of the have for declining and declining first been I in encouraging

distributed, that widely et continue. available will Texas question and and the your as country, I again, the the trends Texas, those I storms, that So or the think half the and weeks the volumes peaked. for the January, to vaccine obviously, that, depending Mississippi, swath the Louisiana, on To a to hope by think the point becomes – In the not COVID our of broad Tennessee. case, month in affected but two make fact storms And and and would service it just I expectation. happen. the hospital more of is seem we're I think cetera, Oklahoma the on first line, and takes encouraged That's that have maybe

incident good face unlike a business we storms we struggling the of time, risk of the of because period the things actual dynamic where because and were cyber relatively think the widespread, were went news like short I our is during these that with systems. elsewhere sort face

our much event, struggling the was in same During everybody in geographies way. weather the

I think to so else. And business don't anybody we lost

weather a occurred middle and it clearly that And it's because the my more in three recovers some and which covered or this have than point and guess by think I later when of two the big which impact. at a – shouldn't of is of likelihood quarter, business likely will get first is the that expenses sort a guess. the a end the week or the we weeks insurance, many incremental to of Other things event. be quarter,

Ralph Giacobbe

All Thank Okay. you. right.

Operator

with comes please. Our Suisse. Rice A.J. Go of next line from question ahead, the Credit

Your line is open.

A.J. Rice

first, everybody. care the out coming just Maybe other of the the negotiations Hi, of end thinking some pandemic. about with managed

length I behavioral any you behavioral any be may the think Have sides discussions are - the business other that some and really terms you're said itself? care, seen for in pressures up. of were of managed that changes and eased side, seeing? like reverse Or feeling of with on on on that stay you what managed Medicaid of the and your you side of all the both issues

Steve Filton

Yeah.

we've of X%, in degree, quarter, and our prior that, the to trend the to the And XX% change as care down part think has you denials on range into that X% aggressive on number continued managed our I began, So, it management there And about of insurers, of pandemic compared charity been per attributable a maybe at X% level least level some A.J., less that, the in some alluding see year insurers behavior kind sort for behavior a but comparisons. up is at fourth certainly of X%, to degree, the that of certainly be to part increases attributed pre-pandemic. of utilization relates care this of and of we the since may think Clearly, some companies. some day and business, reasons is to our I to the least. to it are dynamic the the of revenue as from really behavioral adjusted

I the our that think not have of increases, in increases price top price on particularly negotiated are come of year but big during some in years space. also portfolio. measurable they suppressed We relatively increases, a managed of Medicaid number contractual These

So think, well. to treat way, we've be incremental helpful some with as some expenses, for of number that's gone, et a population been difficult needed, And cetera. payers, again, the with without I that by at can much increases, a least years

think other. the management are managed as insurance side, in business well. it's I utilization changed one say or care I acute prices of behavior those been et terms behavior, would during on much terms or increases or Not in the pandemic So, usual. mostly way that's cetera, our of they of but justified, terms I say renegotiating are as would not -- helpful as the in

A.J. Rice

expire into or like your the which March. for well. are guidance. maybe timeframe. that XXXX those follow-up that obviously other stay I Have around end guess sequestration variables the some question you and you what factored XX% COVID Okay. a assuming then would some add-on know There's And will guidance? And about public things health that Or I also the funding Medicare now of how issues at place. the that you that? debate - to long map relates about -- debate the timeframe, the There DRG in Medicare as like any emergency two on have there's some

Steve Filton

but that balance we've as assumed the our the Medicare through the first is the it's that sequestration, guidance quarter, then year. as presumes it of for So, waived noted, restored to you

far the only of from it's that that emergency health the but the the XX% As more on. benefited add-on, the covering to so make as I'll we've public DRG degree the timing, but cost. increased sort DRG add point

we about volumes occurs; explicit point I is will assumption budget. in XXXX as XX% that that the made some as expenses government we COVID decline, assume at an assume think So, COVID what not will that But the really we've it And lift decline. add-on. our

more adjusted progresses, So, we haven't our assumption into expenses. but about broader It's per down, and the revenue year assumption admission will that. explicit really, that acuity again, really come made so built as an will

A.J. Rice

a lot. Okay. All right. Thanks

Operator

Bank. question Deutsche of from the next with ahead please. comes line Chickering Pito Our Go

is Your line open.

Pito Chickering

my morning, questions. guys. question guidance Good for taking for on again. A Thanks you

of should mentioned margin You that ease half pressure the back in the year.

or what the the XXXX? at that you as quantify help years, should EBITDA just you of Can for of XX% about past us year. be Looking first in comes half referenced, XX%

Steve Filton

better And we I start given given given think the think our So, not Pito. XXXX that the historical quarterly better I visibility I historically to be it's I that reluctance had to is guess, certainly it, will would much And prepared we not if short I have we to out no, choose effectively say answer -- percentages, guidance. much quarterly it. mean, throwing guidance. year are do do a and

earlier premised for at remarks, and this question COVID as prepared things difficult that I what the my fact the the that all specific those we the to. opening that weighting is we're about eases XXXX said and and virus cadence I an have alluded on, how would etcetera, and pace give of in percentages force, the trajectory our to to just predict. to to So half But that labor is not really I which very differently in look affects front tried because, the to, part, you most are certainly, not expect think talk

Pito Chickering

as versus your from those Okay. can on XX% Fair us And you from other define enough. in to what sources? fourth come a you public then to have anyway. largest the peer. sources try admissions quantify, versus still I and ER It's the follow-up your And referral express demand like of it percent referral remind behavioral it, those you Can delta -- admissions. quarter a give sources?

Steve Filton

Yeah.

calls which would again, really is Internet we which those of inquiries, inquiry volume, kind during is, volume, call I'm haven't describe and cetera. sort telephone And as inbound of pandemic. again, declined the referencing et So, what

I it's rate or, admissions, Our we don't either literally bed, put inbound part itself calls patients enough is conversion that our unavailable, inquiries fallen. has because large clinical or at or we those bed patient which inability to think patient the to And rate, proximate multiple because the in turn attribute a into staff the COVID those to have a COVID to qualified in or staff because to beds.

we've our don't volume, not that And the out So the has historically any I underlying et leads cetera. itself call But I that that. that not that's our of call notion really know will given again, changed. peers hasn't do demand the like believe anything repeat declined. us volume say, to what

been to in challenge XXXX, better the be do become less position demand I in on itself. Our much that biggest that we XXXX and we'll think just less and focused has a in virus meeting as COVID

Pito Chickering

the back these mental level stay normal to -- normal more AJ's of denials world rates? that health All Or the A doing levels you about for they're sort care follow-up beyond? right. today. on these of to focus to returns the you you will that question. on the COVID health you and follow-up post of length at think as get and talk And the of here, When quick average means XXXX then one stay. current utilization denials managed mental more Do of revert

Steve Filton

of answer, have and to during providers, discussing and is while I for Because that my prosper us financially companies think remains to really care difficult and managed obviously, mean, for I care aggressive and think the that guess because I certainly more reasonable return return think, done I behavior that. lower changed. sense posture. reaction pre-pandemic hope It's a their pandemic. I question, to to it's utilization Yeah. volumes better the obviously, would the companies more us difficult the they approaching ascribe that. the make But is really of Pito, gut utilization rationale managed be I behavior been a question broadly, than mean, volumes intuitive well have as rational. that posed that lower quite we've we would that that It as something to that's levels,

Pito Chickering

Great. Thanks so much.

Operator

of Research. Our comes Justin with next Lake the Wolfe from ahead please. question line Go

Your open. line is

Justin Lake

Thanks. morning. Good

acute First, in missed I'd the the just, detail on apologize nursing Anything could you're having specific you some good think terms the love Is but temp behavioral, hear I labor. markets? that this, care why to side, transitory? And of I business versus Steve, more specifics cost it's us do money you specifically share if the around with between on?

Steve Filton

Sure. has I Well, again – think this time. been true some for and

think have the for that fact about the we talked somewhat years the last several divisions I had shortages impacted labor two differently.

overtime that thing. the last acute differentials nurses the We're traditional, On more our it's on more dynamics sort and different And exacerbated think that shift side, I and spending sorts as for money and paying all and would sign-on labor and pressures. has we're the COVID describe own because has traveling the all I year of money what been and elevated impact of really bonuses things is more been costs, during and employees. new those temporary spending on created

created although stressful it a out or burnout they've exposed hospital. about. has where of of all, they've been a in contracting nurses and have virus try other They employees, that premium significant other sick. and to often the that First that's ships regular the have or clinicians to Nurses being four are and relocate willing advantage exposed salary nurses and and some or are to and the employees or there to work at the chasing instances work they're outside a virus, of and of I been certainly often they're number the just, there's willing a make decided been but who have think, sidelines of element -- who of have way, work know times to either in, are quarantining for work six taken on certainly virus, environment all very for to opportunity. It's and step dollars. exposed we've some their they spectrum, we and And been clinicians risky, and read time or have they're numbers some of five want the that the week whatever difficult environments. of aside been trying they're period can the then either end don't But virus, less less

are So salary on increased I expense and think, wage the all expenses in acute our those side. reflected,

just On already labor of I've especially as I as therefore, side, level is and somewhat number the could the have clinicians, patients many call, impact mentioned, nurses, times we an a But the qualified of think, wise. somewhat manifests differently. impact real a the inability either inability of sufficient sheer We the numbers itself expense. to to find do behavioral accept on as elevated

And reflected things lower somewhat premium that obviously, are volumes of we'll of to employees decline. in have diminish. dynamics in why being COVID chase and we eases XXXX, is ability get kind nurses volumes realtime, the notion so burn other nurses elsewhere it's nurses current out. vaccinated elevated believe And that, out ease, be the better to in expense. that reverse nearly as as start rather I the many virus all the about talked don't in of so should that our All Many labor of And themselves. than transitory. that's dollars pressure The is helpful. should those should COVID level the as We

develop particularly that guidance, it Although noted, some to take about will XXXX half first time occur. I for again, and as our

Justin Lake

deployment. a detail. quick the all follow-up capital for Thanks on And just

about quarter. the repurchase getting to second share back talked You in

- you on You of capital? magnitude where was look talk look could like the put of in like a about you terms of timing year didn't kind give of your and it count doesn't real share just ended reset down dividend, share but fourth and you it quarter kind any much that repurchase. Maybe the guide. the us for reinstituted And the the deployable

Steve Filton

Yeah.

So fact, in in $XXX of a we before about I again, of we guide as repurchased guide share said a repurchasing pandemic context, that XXXX. the doubling in a repurchases referenced $XXX XXXX - million March. would before to we different first down quarter years have we sort went million Prior in A suspended elevated in worth million with the an into with towards into the that, of repurchase year in share towards XXXX shares. shares of been we broke $XXX mid we XXXX, repurchase. we And before couple as level went a and

like will we're million back that our sort sort forecast, assumptions level. repurchase, million to much going XXXX. those And think share $XXX again, that to assuming in I of at elevated $XXX operating of be

Justin Lake

Thanks.

Operator

Our next line Go Nephron. Instructions] with [Operator Raskin Josh ahead please. from comes of question the

open. line Your is

Josh Raskin

Good thanks. Hi, morning.

but is guys a a impact just rough your range terms confirmation Just that guidance. think payments CARES I XXXX potential first collect excludes you one, or, potential there Act, guess, on you in of in any from clarification could XXXX?

Steve Filton

that million. that. estimation or another any we have disclose portion less income of to another we've do we into would that could be prepared did than no to of XX-K or subsequent taken made we disclose XX $XXX But of we're million and not slightly that received $XXX our but of in that to December So close we've Act received did any CARES whether funds,

Josh Raskin

Okay.

So the a starting potential... that's for point

Steve Filton

point, income clear, just is funds XXXX. forecast there to there your no our in To operating Josh, CARES no be for are --

Josh Raskin

Right, right.

second trends? health some physician behavioral Do there? think the specifically this connectivity. then in Do more a seeing that visits sort on having those you segment, more of of impact of anything changes? downstream on Or inpatient is you question, sort sort to I'm are the need feel movement strategically think behavioral you And side. I'm health around provider just, curious the virtual of towards views thinking on Okay. your on and any

Steve Filton

boxing visits of part traditional from was ER the of large think Well, through of down, those in assessment, think, I referrals helps, seek more down And is broadly activities. of psychiatrists I to capabilities to telehealth in-person access that care to private went down seek the the telehealth the capabilities reflects, what I pandemic, system to of reluctant means. telehealth significantly. systems during the schooling expansion were school because visits reflects kind down, some to people expansion alternatives augment were as were behavioral other think and

however, suicidal of a or think lack somebody at telehealth. we line a thoughts I in and clinician with of speaks are daily end with just that not the competitive ideation sort If expresses homicidal life. the fundamental functionality or day, at provide, of services calls and the end, to more care, the a any partial They're outpatient in person inpatient telehealth that's other or going visit. person going whether intensive hospitalization responsible to care, if they're on but it's to something telephone the the more clinician, care refer – or is clinician a way a than intensive

the position lot identified can doing in who we also intensive those we others assessment obviously, so provide make have standing and that in amount it really are just telehealth are terribly or we private in feel spent And but up most XX-minute our telehealth to a care and a care capabilities And And I to therapists both but our patients And it, services, get the our like And get they'll beyond appropriately that continue. don't appropriate. are a and before significant needing self years in to facilities, you so to pandemic, outpatient not sure really partnering a exist are that those a do, of or our past any obviously initial offer office. they've providers building who fact afterwards. things of with traditional trying appropriate others we've capabilities the place. session therapy going of the psychiatrist out a think objection that existed as and that are further kind in

Josh Raskin

in like move plans Is to could again kind or connectivity. from the of out for that. anything helpful. that downstream on a Okay. Yeah, insinuating was you've provider some got but path upstream, missing you're It wasn't telehealth I patients really potentially there on to inpatient care more there? that it like is of sort sounds supplant new that's chance

Steve Filton

I Look, measurable pandemic, it's it said in by Look, and hospital definitely Yeah. we emergency acute impact from country XX% think number a between beginning. fair has and emergency I care referrals mean, routinely the of care I the somewhere during think get XX% a we it across the down do acute statement. had that an room.

So I think that's an issue.

Now are they we again, will has other a community or comfortable, again, what center some go has in And our that activity. I replaced done sure that again, the don't an communities increased there. that, emergency health I reluctant mental lot of make is think the more But reach way I telephone to think out I'll telehealth room overall the we've we that out to to they that if to demand. go degree, put that in feel to to Again, was think with reach was question, some I damper telehealth saying really of a call, back or a demand a on et to – cetera. which I think think before, believe presence don't people

and think and biggest it demand, beds challenge, that XXXX in some and we is ease beds demand. personnel having that meet to Our and sufficient meeting sufficient will sufficient

Josh Raskin

Perfect. Steve. Thanks,

Operator

comes Perse Go Goldman ahead Our next please. question with from line Sachs. the Jamie of

line Your open. is

Jamie Perse

just guidance from Hey. just Good in impact morning, this thinking And year? guys. your is days, much come deferred on I how next love about for quick these on deferred care thoughts what's the back how might there, that volumes of real over how just years? you're care out few much

Steve Filton

Yes, Jamie, great a it's question.

be their also when more this are they come from that as get we got they we also are of at of positions. that they that this now quantify Jamie, willing this are tell sort there people surgery behavioral sorts have more pandemic, hospital care levels again, goes And by And there an catch-up XXXX. the queued year assumes we specific we've who are And they a non-COVID at as maybe hip and And to for of implant XXXX, other also time that and in up as the we lot base line up the hearing But COVID can vaccinated, that on just throughout the to specific to our they're hear vaccinated. not timely scheduled amount to the x or people that we're acute pandemic procedures pre sort who to I patient before, lots We're of have kind get volumes year. increase. queued as current there's who decline what the service anecdotally of elective XXXX half objectively, implant may been ill for soon anecdotally, would of have the We surgery are to that unable to of during way. do physicians believe evidence. in there's basis. sort they and of and any fair, have of as procedures they've than our even But volumes get have delayed It's have or pandemic you on. pandemic patients in said is a deferred come back and from practice guidance broadly acutely that, volumes get levels elective look pre who that had about both sicker perfectly talked waiting some

I demand is resurfaces this so implicit and is of think that that from And deferred satisfied. some XXXX that in assumption

Jamie Perse

slower? like then Thank relative might to And would next business year market know Is or markets guide that, any and recovery it market to Just potential great. over cadence how is be you. faster? the thoughts your that impact a for don't Vegas touching it Thanks. minute. about markets, of on just anything other Okay. the on I that you're but you curious thinking how

Steve Filton

properties. travel, We've local the and the in Arizona frame, been particularly particularly by and Vegas Nevada who look, hard people pandemic decline the I Yeah. been June business, would market gaming both meaning hit encouraged think, Las to by domestically to I been is particularly industry mean, the and by time – internationally. think California when I hit has the in has airline hit in gaming hard drive properties and the because the obviously, pandemic the the reopened, mostly

the think read reopened I limits. expanded they think more at more XX% I've opening And when shows, and properties of a they gaming days capacity. more opening I restaurants, reaching are whatever. And then capacity were many those and were number there have days recently, services, their

same to the comments, and all the there think precise Las in XXXX, I for I the business that again, that our is is, that however, industry think I made So the predict. make I Vegas. difficult I'll gaming in likely improvement of broader before made that travel leisure us and and comments gradual recovery pace apply about to

I the bullish think incredibly we're on market. still say Vegas broadly, we that would Las

[indiscernible] at our a tower We Centennial capacity to new at past We invest continue this that tower Hospital our year. in market. opened Hills

the in expand been market, for We infection us. which significant a of capacity Vegas Henderson Las continue to boom our has

bullish will more, that's very market the we're will I or difficult recover. in on So are nine confidence months fully in long-term the our that think, fully difficult three that market that But Whether that to investment or Las months, Vegas. every six say. next and prospects recover

Jamie Perse

Thanks. All great. comments. the right. Appreciate That's

Operator

with line next comes Mayo Our of from Whit ahead, Go UBS. the please. question

is open. line Your

Whit Mayo

cluster like shut to persistent kind that assets down, burning of there's the a Just this behavioral, to Steve, bit kind the these I talked you But million us back get What's little just sell segment, down, at better perspective. in get there Do remind to that we got bucket? a Thanks. just will, happening? facilities Can dragging know you need feels non-same-store past. looking are about moving And we've wanted XX year Hey. in target. breakeven? what's what's for so $XX facilities of sitting of - this It's a if them? you you've just now. roughly

Steve Filton

market. news first better of not of they opening But of mature open, more the facilities have that be when facilities importantly, we'll the and of becomes earnings diluted I there usually will these will growth. possible, as everything of stages ventures, Well, in that with does there openings, I started the a it I the that number are And unavoidable. a up think early are of margins facilities openings bit cases, But of and drag. up think think any as in of that get a more is quickly good a sort segment right, we do of these new ramp ramp we a is to with to some next is just ramp-up vary but sort -- just this starting a than the see again, dynamic rolling a program, And as joint I time. some negative that. at that's wide projects really get of up is most even years, we period can is a those they've get over by of some just as there as these and But you're most and started new few the because these as division we're driver comparison the projects been element to be of think less those drag or bit wide

Whit Mayo

are there don't mean, I is Yeah. category, have in the XX, But think think, XX new hospitals aren't I hospitals there and I that same-store you that you've opened.

in a probably there Or have with. of the that that category that not it been been have is do some underperforming? underperforming you here hospitals So hospitals group are something some non-same-store there feels time for could me either just to like

Steve Filton

in non-same-store And think the I with. No, of the reason they're they've think been part is closed. I true that's

And so those evaluate the several portfolio prune underperforming an effort years ongoing over last and there to the hospitals. has been

we through process they same-store. of closing get put the As go in them,

that closed out of you're are incurring There are either some expenses. process are as but So are run those There members still being some the right. in that some close, are in hospitals well. or

Whit Mayo

maybe two, is million Does into we've to -- the in even over $XX of it it XXXX, those think break does to way what's year about trying earnings. next it – number losses minus think if down this XX%? So got EBITDA the turning year? right does or that I'm just

Steve Filton

Yeah.

number in by of little to overall is I come my me, they'll so think But answer I broader. a that down, have detail will bit come going definition think front that I be apologize, don't -- what and I down. I mean,

I as exacerbated -- by their openings, pandemic. think some as closures well of those both where newer the those drag the of was

that down So come I numbers will believe those in XXXX.

detailed million try $XX million. provide a from say more $XX call let's run and to more going I'm after say the again, take color. But So I'll to to look a rate

Whit Mayo

behavioral. is now. just for mean, this on. guys I can We have later we've And been been last whacking my with you just at one sticking talk – still But some time

There's made? mean, new new I I EMR are behavioral. You've that mean, there a leadership. need of technology. lot not investments any be to there's no around got some

evolved you anything don't we has As anything the next you to care any approach that if overall over strategy, I views on that or share the would just to Marc about know year? has look this? hear should

Marc Miller

to tell way we lot a want on that Yeah, call you, we're I'm of there's our now, doing side, existing changing new some the we mean, greater think that I to into behavioral then this trying lot of lot some revenue a areas get share not management but sure look provide and a up can up I at, and will especially more and – I opportunities on forward. segment, how much ramp the really right our current programs we're going project

So go a detail this lot I'm on excited about call, we're to especially happening, but that on side the going not right into behavioral now. there's

Whit Mayo

Okay, guys. great. Look forward to hearing more. Thanks,

Steve Filton

of I looking acute we much the side. delivered settings. There's Whit, services if say, to think just cost mean, I investment lower be will is think I in in see think touched on efficient, I can't I are a particular, on ambulatory side, the that notion more on I this that before. mean, like some payers,

or the alternative And at on think more least or the focused so I providing, optionality ambulatory for providing the side. on care we're payroll

Operator

like queue at to back call time. further the turn Filton. no Mr. are to there in questions this And I'd over

Steve Filton

look and to speaking their next presence Okay. forward everybody quarter. Well, thank for we again

Operator

conclude conference call. does this gentlemen, and Ladies today's

now disconnect. may You

Universal Health Services (UHS) 26 Feb 212020 Q4 Earnings call transcript