UHS - Earnings call transcript Q1 2021 | Universal Health Services, Inc.

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Operator

Good day and thank you for standing by. Welcome to the First Quarter 2021 Earnings Conference Call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Steve Felton, Chief Financial Officer. ahead. go Please

Steve Filton

Miller welcome Marc Services joining this XX, us for Good to is this We XXXX. March ended you First Health review morning. the morning. Quarter also of Results Universal

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

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

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

CARES During of million additional received XXXX, Act grant approximately the of funds. $XXX we quarter first

of net lost XXXX. And to effects consequently, residual the expect we shortly. to these that as be in government to and was not severe million returning continue process the it $XXX Act XXXX While funds process experience been we revenues expenses has begun COVID-XX impact virus, in from in incremental the federal on and nearly completed the CARES as have

XXXX. to the million $XXX first returned Medicare federal quarter also payments the we accelerated disclosed, previously As government in of of

unfavorable to our quarter we continued impacts and results COVID-XX pandemic. the of As financial I experience during the first from on noted, operations XXXX, certain

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

Our cash period the of activities million aforementioned during first million in XXXX. operating generated repayment The the first as the million quarter capital million accelerated XXXX, $XX spent $XXX cash activities quarter the $XXX provided during $XXX compared to by operating We payments. expenditures in was from was same XXXX. of during of Medicare decline driven on of by

resumption pressures on to expectation in accompanying are quarter the of on program of made Board March share XX. with regular $X.XX of outstanding XX first days of repurchase as the days from quarter the we a and to ratio XXXX, approved per compared also in the the billing second recovered of as fourth resumption first in quarterly capitalization quarterly XXXX, payment our to the XXXX result The our debt decreased previously dividend XXXX. XX.X%, of more share vaccines XX December XXXX. Our our our disclosed to declined of and the during we available operations Board financial trajectory fourth of of our experienced as light accounts quarter In At become and the continue delays, at of as ease, our XXXX to XX, Directors incident. to compared XX.X% technology receivable likely information a days XX, COVID collection in as results our that quarter approved total March volumes the downward

difficult year the comfortable pandemic to first that are operating XXXX the with internal is an recovery earnings in the The and We were our forecast. full slightly our just which increase still at pleased quarter impact cadence predict we ahead results, ease will assume of throughout we XXXX XXXX COVID but our of guidance. pace generally remain precision, achieve with will from we

are at time. questions this your to pleased answer We

Operator

from Justin question Wolfe first Research. Your Instructions] Lake [Operator with is

line Your is open.

Perry Wong

you This looks like about on driving commercial was from is mostly your a pricing could there that thanks. which it up cases? acuity due increase? in if XX%, Yes, there? is Was wondering your Perry It give than to around any question pricing. color Wong notably any higher Thanks. benefit was higher My is for COVID from peers. better what's Or going Justin. I mix is

Steve Filton

seen patient, during COVID degree, levels. the above non-COVID was we've well Sure. acuity lesser pricing Well, our of the our main patients higher - And above pandemic, has to of been the a historical well. obviously, driver our entire that as

deferred some higher et is think I cetera, pricing. driving So care,

tune and increased as one up that think or IT that event, resulted of maybe our receivables, We acute And caught billing aging lower $XX billing I recover in fact, and did, revenue number occur quarter was our on regard. a I of in of quarter, our to particularly benefited million In we based we the that we our some on about care probably expense that regular result particularly, the conventions. of I debt and our would high as our saw collection fact think that $XX think our We in million we an that for pricing reasons. accounting were in talked higher in net in collection. a delayed. QX, anticipated pricing and bad the activities fourth and and

really or reimbursement. related year, - is maybe of we $XX very reimbursement also we of amount the that a another presence and $X COVID supplemental million. that I from local QX mostly non-insured of that there patients patients, million million. little of government's to payments the federal in the or of and benefited government And was small the state $XX This in think - uninsured with of million probably $XX then received personal QX, that's treatment last COVID think there's the which I diagnosis, to

QX of have didn't of or in sort non-recurring, we items the I are that should had we but items QX non-recurring, those last think I say So in year. that

Perry Wong

Okay. Thanks.

Operator

next question of is Kevin America. with Your Bank from Fischbeck

Your line is open.

Kevin Fischbeck

up asking guess, guess, the Great. to your I you even it start well progress like guidance expectations? though things it but through continue Thanks. the versus internal shaped reaffirming above was maybe off expect I to bit QX only year. street, sounds you're a how by

just, year guess, how up? So are things there any I did on? QX watching or shape the factors And mitigating as then you're goes

Steve Filton

Sure.

of volumes watching that my the lower are to like is track. well is on what ease, we and those So that we're that Kevin, patients, increases, We chosen the in well this assume forecast, actually were the make in feel in QX pressures to assumed progresses, the which remarks continue our side. things. manifested as did treat to say I both the guidance ahead partly year internal as on guidance, COVID business payroll continue slightly And to will why just largely segments obvious not be think, quite pressures also, decline. particularly will I we've volumes Non-COVID wage recover. changes results as any our more will as importantly, we're will The and that to things labor rate prepared ability

Kevin Fischbeck

then, And there. guess, follow-up just I a

information one lower companies But normal, upward continue to see I that look et that volume to that volumes shortfalls, the I you returning the I it leave workforce. back how companies like expect of potentially, volume as margins some expect staffing returns normally thinking pressure about about to from and hospital on generally on demand about then cetera, labor there, conflicting are acuity on putting wouldn't we back think take guess side? the of and it volume we're it's hearing ease. to the think we lower in nurses the coming you guess seems normal, guess, be labor margins things labor that as As to pressure return,

Steve Filton

Yeah, wage actual the the look, clinical, that I the cases, like notion that availability are driven virus non-clinical of in rates on mostly just have itself. both that Kevin, pressure overall personnel things think, and our but some things on is the the

about XX, or XX are because exposure because have sidelined at the burn really premium virus. the During got of lot months, hospitals paying for the dollars We've where elsewhere, quarantined, in out, are they are written with frankly, pressures had quite who because being are, we've amounts to and there's cetera. chasing any extraordinary virus who been that. the employees employees got point et either suffered itself employees of last We've who the a time, pandemic, of the

nurses the your, To we sort of of But opportunities sort we won't cetera. your to will willingness had the COVID return and fewer point et say. that out, to them get and more of of, the whether to to crux same specialty a elsewhere, out, labor point demand have fewer gets of be view is have hard our dollars balance They pre-pandemic, supply patients. and we or continue should virus. as we that, certainly, vaccinated, the XX XX measurably and to think the be there'll the of less fewer have ease have we'll months of those labor I and think as nurses pressures from chase experienced to premium return more our general of a that over fewer burn last workplace. we'll There that view population more we've I as the the certainly of again, vaccinated, recover employees

Kevin Fischbeck

helpful. Thanks. All right. That's

Operator

with question Ralph from next Your Giacobbe is Citi.

Your line is open.

Ralph Giacobbe

sense And seen maybe impact weather you how you've could in if morning. just exited of and you're the Good give to any far you if in Steve, willing so just trends Thanks. early a discuss Great. to April? out quarter? March, call

Steve Filton

Yeah.

in patients I quarter measurable early first peaked about I went the January and of business volumes. March, So prepared February, in volume of my then of and schedule in Ralph, started procedural all say would we late to in in trends COVID particularly to elective kind continued level-off the see as hospitals, saying our that the And acute of, COVID remarks, recovery, half talked the on. almost

losing widespread, think Tennessee. while think largely, like four time, Arkansas And so were at we were people home really I was swath about stuck recoup missed. I I or think, the in home. during and or Texas geographic they had news they weeks share I good the market and certainly to the weather procedures impact and because of because in an it had just is to I that markets Because six whatever it's Oklahoma it think competitors occurred the had quarter, it not broad staying included that and of our a middle think

impact not really think quarter, the end by the I was of the significant.

both of you began for, the the at the the COVID volumes weather quarter clearly, recovery and know, So we think, was the in a - events, lot reason we more from in end I COVID exited the January. the quarter of day March in than the decline profitably March

Ralph Giacobbe

Okay. All right.

Steve Filton

I have continued say trends April am those sorry, well. and as I would into

Ralph Giacobbe

on sequestration, line are the expectation. you've And talked in sort obviously, earnings that just of the that? then But the like Okay. number initial any offsets improving your help of sort about generally Got And guidance, can benefit size flow you're you it. cadence of year, there? you That's what move helpful. as of or about through why with the reaffirming, doesn't the through there sounds

Steve Filton

would good said we those We at the in were think et well. quarter was we terms It's the of this issues. specific more so on our reimbursement I a and because about acuity sequestration as kind cetera. Sure. issues the as these make volumes how think forecast, year question, it And of forecast were time focused budget on on, was, fourth on didn't call we a trend they I much really to specific and went was assumption than and in asked year what difficult both

the a as per would million $XX assumption extended it. said or a million or have waiver is wouldn't having a our sequestration guidance. didn't as describe $XX of benefit to because we of guidance, describe pickup about accurately more we in of it So million, sort really se, it make quarter. us cushion our But $XX in a $XX bit I of specific I a a million that

Ralph Giacobbe

right. you. all Thank Okay, enough. Fair

Operator

next Josh question is with from Nephron. Your Raskin

is open. line Your

Unidentified Analyst

peers. for Josh. like UHS seems questions. on admissions and had Hi, one. for It I This spread larger taking the is admissions seeing its quick a a adjusted good between Thanks morning. of [ph] is Marco than just some

is inpatient quarter the outpatient the events aren't you those So on volumes any than first weather differently coming reason And quicker? Thanks. the seeing outpatient there did impact side? of why volumes back

Steve Filton

Yeah.

So and this - think we've previous about talked in I calls.

dynamic mid few proportionately the single and last talked maybe to the separates think I have think And X%, low either most that acute public dynamic experience I diagnosed our percentage digits or the like the treated. hospital something our - COVID are our that high about peers fact quarters care of patients is the peers side single in on teens XX%. acute that of the the in the probably COVID we've our from We've patients. percentage admissions X%, been

affects So and and And think difference. to significant pretty affects schedule, volume it affects that elective it procedures, lot structure, a obviously I I length a that's a is which lot things, room particularly cost that our ultimately. outpatient That it of well, procedures point, our as it your of and outpatient think stay. affects emergency scheduled affects of also

tend having single biggest you're hasn't I going the find about why recovered weather is or than outpatient And reason a So emergency room. an weather the if inpatient I a to way outpatient have attack I still think then you're correct. heart to if procedure, as more your probably because, your obviously, to our that's the affect think stroke, mean, events you much. urgent question

surgery may end procedures by whatever to, if the point deferred we I quarter. knee the you're opposed As think the But of outpatient having I'm end, to be. recovered most or make that those again, of going hip in surgery, it the

Unidentified Analyst

All right. Thanks.

Operator

from with is Sachs. Jamie Goldman question next Your Perse

open. is line Your

Jamie Perse

morning. Hey. Good

population, because very last changed Just things for few learnings at healthier a stay, aren't these on wondering patients and to had lower quarter, I'm COVID if wanted the I It's last talk like asked patients length the times basically, that. COVID that's the all maybe that, a year question second. the profitable. first of know I all, question patient year. was over you've about response was a

comment you also in quarter and census the can impact your on the of revenue adjusted per EBITDA COVID So admission on impact? the

Steve Filton

Yeah.

And or we've in and think medical or that think valid repeat surgical are made COVID patients because point true medical procedural profitable that's patients would than less general patients, I I of historically, therefore, still patients. is the I So equally it's them. that

all patients more means and They developing of think, that XX, that that The think think point length at expect. might we COVID them tend costs to a as and I kind that I and hospitals do They're clearly other be clinically, medical regular sicker. higher. your adept you patients I the gotten longer our and than efficient XX, last issue is about, have treatments acutely treating of more over months, the are ill. stay with associated To have protocols, COVID more patients, XX

of treatments about what the I things better things right more think do. lot also efficient the But we clinical wrong learned to and a very are those unfortunately, are expensive. a and lot

main things So to treat patients used of remdesivir, expensive. being like are very COVID one are the drugs that

non-COVID surgical during is this that have And COVID profitable dynamic I simply COVID patients are that think, patients, patients profitability procedural so, the pandemic. the versus than of still exists, and of out crowded less again, generally they the

Jamie Perse

saw on categories are surgical on I don't And just what you others? Okay. surgical both And of comment care maybe you or could of the you and outpatient quarter, after then on That's side. But inpatient those. the slower across any the sites one than recovering that report or helpful. volumes, know month

Steve Filton

experienced tends I of think and again, scheduled to what we and volumes COVID this that found the procedures I pandemic And period, they have certainly I non-COVID and have business is throughout that and Yeah. we we QX. elective rise our found that entire again think volumes as and peak mean, decline, in

of XX% I surgical the say at in elective or So were and levels. when COVID that frame were volumes time January procedures peaking, pre-pandemic XX% probably would

the think pre-pandemic trends surgical those XX% have end plus of were April have into volumes. the we elective pretty as well. I volumes of and quarter, by think And continued declined I at COVID as measurably,

Steve Filton

right. Steve. All you, Thank

Operator

from with Our Frank next UHS question is [ph]. Morgan

Your line is open.

Unidentified Analyst

here. Yeah, Frank Morgan a I have cost question.

in are You see worse? there I want labor as markets if any health labor true, don't Is or of pressure it working is, that on are And fact, acute you but those of that to the people that that about just that line? get - particular some severe do put And to you an where you in being can limiting talked chasing, the higher is your fair to in revenue behavioral behavioral top of you care the mouth, rates. that issue The given sacrificing than balance do is side? serve are in where how is still labor. words say the what higher chasing incremental more the And side demand factor margin pressure. levels Thanks.

Steve Filton

Yeah.

our Frank, of pandemic. the think have the the well. think, accurately company labor I sure So you I peers question. on about we're from of most done hospital talked And as not it shortage frame experiencing degree, same We've issue. the certainly beginning really I'm but I labor macro and said segments. that we markets itself throughout the our is the in business differently to manifested have it has in a same all Interestingly, think two pressures

think side, shift over have which more expensive wage our an I usage acute themselves. certainly seen personnel. base usage and other on an and nurses, elevated increase in and traveling rates see all measurably differential We temporary of time for clinical than the rate are of of wage nurses we

we in some at in our up just isn't sufficient day, wages side, of much. least the simply I all going the get labor which see that if real measuring, cost right you'll think On enough our adjusted by hospitals patient of The some to way can't that it salaries of is the challenge measure of pay and behavioral is you per markets. personnel

rates the probably, and probably say, volumes. quite to single probably to so would and headwind recruit alluded I I'm clinical I not it's our back pre-pandemic as of certainly, proper our nurses, that mentoring remaining recruiting getting sure what make hiring this as to behavioral graduates, compensation and new then as we're personnel and the expectation both sort - for indicated, at to cases, above pandemic And even think saying comments and to in volumes progress. eases amount pre-pandemic that operators as we're on nurses the that some are And pandemic and are obviously processes you assure of pressures some we've competitive. a and our labor a most our things appropriate that the of I to and turn frankly, can of retain And to well the I looking focus constantly in shortage we've more single need includes and my new question, that there's and you then biggest traction. think gain your will the and doing, implementing processes obstacle been attention actually, and We're of initiatives the hope the ease, an would for ours. say side, ease that earlier non-clinical that surveys focus biggest I those And the of all do we the pay will we proper pressures of made some

Unidentified Analyst

Thank you.

Operator

Your Chickering with is next Deutsche Pito Bank. from question

open. line is Your

Pito Chickering

can and you on in guys what during change faster morning, us in, guys. Good Thanks Marc, color A that my overall we if XXXX? slower And do question if if look and at you questions. jump slower, for a slower think want and the than line to you behavioral for you Hey. or market, Steve minute demand? growing you're taking step why should are give back growing

Steve Filton

want you comment Marc, to do first?

Marc Miller

Steve. go can you ahead, No,

Steve Filton

Okay.

covers demand, above at and levels, So, if during - this of in not say, said this, increase my internal that to metrics response to or pre-pandemic degree, I've at data volume Pito, I many continues I the and indicates think before levels. every should some one he cases, pre-pandemic least pandemic, to our continues Frank, points to

written satisfy calls, continued that incoming inquiries, of by of increase, number I have cetera, have traffic, and been macro demand. to or that a there that been telephone health measure fact of ability et variety probably And been inbound think labor illnesses has the again, labor single - we the to suggests et impediment pandemic amount And been stress, diagnose biggest about And cetera. the there reasons. the is been there's challenge also out information that. our throughout has So Internet biggest a call shortages that lot greater behavioral probably mental again, that doing has during our for the really to

geography volumes which in issues, very that Now geographies seeing markets And so growing and are hospitals clearly to where those that then and not tends there we see we specific, taking we're and be demand there that increasing. are do have place.

noting that same geographies. point worth those that those are suggests issues we where every, in have those think to I our markets problems, experiencing the in peers that data again, experience we it's tend

we've evidence where to in unavailability cap had know So have had that to personnel, those we the because same close there's same peers that clinical or beds our geographies. of do thing

Marc Miller

what add just with for Steve issues certain now. to said, would we I a while have dealing staffing And been

with are have forward. try in taking that us we outcome different new just some of improvement and a going to to confidence and some for we'll combat We think, have actions this processes internal of we our different

a up so So maybe than past things market little staff, ready are staff eases on operationally, in specific bit, the attract we the capitalize been to that, on. of will we keep doing some improving by that we've be to probably and when more the

Pito Chickering

comments you look did XQ, at you've is all to cost us you it first nursing premium exit help peak of that impact March? during follow-ups Where two a XQ? pricing XQ? guys then, hours percent as about. Okay. lower in of the looking quarter, labor on think seen premium of it quantify a about hours? Can And as the reduction to in despite improving And do due strong you to margins talked premium fair Where labor in the quick the much how

Steve Filton

of the overtime percentage and would low at way XXX we our volumes XXX peaked, you on percentage Pito, doesn't XX%, maybe the measure our COVID quarter, the would being the we the were know, regular et as were of double the of seem At rates, are points are that nursing like of rates, particular, in our of the XX%, really hours, labor registry like I And and being half doesn't I being the nursing wage in the premium think sort of hours that paid I in digits, this. rates end at the quarter, of the measure our so beginning quarter beginning while nurses, that. paid that. of pressures of Yeah. rates - say I impact were say, XX%, cetera. premium By those And something things when traveling necessarily the shift making a rate that hours. hours basis huge, think times that, premium at the three paid worth or two often point it's the of those or that

significant in So be don't changes have drive volume to to really number that hours the changes. the all to start of

because to ease as that percentage down, think and normalized impact last our will come greater historical that come rate also I on pressures premium revenues that think that hours would beneficial levels, I think those in than come the down is down, we your point, think to should the will we more while anticipate. have decline as our I of margins, acuity So, pressure a the because incremental they revenues

Pito Chickering

Okay. my quick here. question then Great. And last

sort same of of of surge, COVID on comments in talked sort in for behavioral, sort exit March? peak for Can it acute. of any You patient days do how trends April? the monthly how so Thanks about did And track be much. January the

Steve Filton

Yeah.

roughly were year days for the below about patient last I again, think X% quarter. So, behavioral

highest, improve of like those not I was the progression and COVID and both on year X% probably their that, ease, the expectation ease more COVID at like well. at again, will X% may pressures will X% down, the will the the And that X% the the think quarter, the is, labor continue because volumes volumes to it note, our were steady when progresses, related down. expectation, as at think or but I end more pressures be a of or quarter, as a beginning

Pito Chickering

and clarification that X% saying which XXXX, obvious March on are comps then And got for that on XXXX? X%, reasons? sort easy that, Thanks. of when the exitings versus Is very is Or down one April. you're

Steve Filton

Yeah.

say I that generally pre-pandemic when measure. are So pre-pandemic, using XXXX we as

referring So to. that's what I'm

Pito Chickering

Thanks, guys. Great.

Operator

question Your is Rice Instructions] next Suisse. [Operator Credit from of A.J.

open. line is Your

A.J. Rice

A were couple be wondered I are elsewhere looking update Any share And you everybody. questions, it - remain One, at I last whether on a like M&A there - capital you on quick deployment reinstating sounded quarter. few know of it play? those repurchase. things Hi, might update on been the whether pipeline, private obviously, I would still both the any that your M&A has be Any that on describe the this - just - year about might thinking that that And in in perspective? likely press also there's from deals be reporting behavioral equity as some market. larger broadly about there's your to meaningful hopefully.

Marc Miller

It's A.J. Yeah, that, answer I'll Marc.

But there and like the We lot a of categorize investigation. to activity sides. are, deals sides. at continue middle look it seems a happening right bit both now on I because we're in this little there both would more not it is as of on likely

point. say hard always So something, that to going I'm hit on likely but this optimistic to we're at

A.J. Rice

labor a constraint great. on Thanks. side. on how That's growth that's amount Okay. an happening of what's behavioral about volume comments the with you and Steve, made

that your us sort The you been Can of by managed the generally are have And of You've the have been I pricing two thoughts? about whole we that? you any where the length also doing impacted continue, with think like now will also Medicaid pricing metrics issue you're pricing. in behavioral whether pre-pandemic, better other Medicaid driven what masked have stay trends updated give thoughts know the care. a relative to seeing stay dynamics but then growth pressures length and been of that don't on care?

Steve Filton

Yeah.

said last sort a of at we've on over base. I pre-pandemic, rate think behavioral was mean, based per pricing to what adjusted about day X% increasing, I think several So quarters that course the on average, is I our the X% revenue of

the that X% more has During in range. pandemic, like the been increase X% or

denials, I insurance managed of think seeing an of some increase less on charity pandemic. easing to of is of fewer the that pressure a during due pricing payers. care part of our the care elevated level bit We're

behavior bit care a While behavior the if more I become pandemic will we that post-pandemic, love managed that aggressive little as suspect continued eases.

et hand, I increase, of increases I in increases payers And focused the are about more is On sustainable. whom more - quite some from we've obviously, some we not have other been, gotten in of that those from we've our from Medicaid some and obtaining particularly had permanent think, time, that aggressive much managed think, more cetera.

two gave in X%, that I So some pricing the once settle before, that behavioral pandemic eases maybe gut of in that that, my X% somewhere will that increase numbers is in more sort range. the between

be don't it I states something So where appropriate of that of changes several than our Medicaid little pandemic. last of to know, quarters length disclosed before, But generally you Medicaid historical, but in we've stay. lot think running true a more managed the programs. majority we've bit them the make programs. three the over think know vast bit in transition is during not lower also, to was managed Medicaid that We've are seen I than And will certainly their an big for already like I been as a higher patients, quarters. time little the same Medicaid a of

to would XXXX, lot January in made or pandemic and those late been call think had the we been incremental really off, issues bottom what the et additional leveling to think XXXX in mid-March we I has And the felt impact shortages I And progress made early length I point of in think hits falls prior don't I migrating of impact pandemic cetera. Medicaid significant of that February we a pre-pandemic, in stay those. labor and and in that we like managed will had But then So be patients of XXXX, future. think beginning of the the to on out. couple off, of XXXX leveling this

A.J. Rice

in Okay. $XX Maybe Xconsistent it it tell one item, just I if corporate something last look if the the should tended and did And very doesn't is third seemed me more what But drop year, second like - of maybe may year. year be and question. And quarter. somehow too year to like last million to year, noticed but last specific bigger this up it last saw happened have you I by it's going that But at seasonal was was million with drop pre-pandemic. driven this you Is that drop-off offline. last look off expense want was about muted the - pandemic forward? to take versus than granular that $XX therefore, that pattern traditionally or we we there a by it more seasonal sort for

Steve Filton

Yeah.

I that us you yesterday, I be will we may potentially, the swing So a honestly, that own tell at to continue look asked think our biggest A.J., you it. probably it's question and increasing as health like and had which, I are now care a else, benefits, increasing. care everybody deferred and much and started at pre-pandemic down normal drop people back to nearly then up level mean, not as factor

the that's So us strikes I we a at people will sense in that, biggest give But factor. they future. model it that, better further how of and look the think, swing should it try and

A.J. Rice

that's incremental. interesting, right. Well, Thanks that. All for Okay.

Steve Filton

Sure.

Operator

question John is Ransom with Your Raymond James. final from

line open. Your is

John Ransom

Hey, sequester good just want one including confirm the all out and think to for about math, think some debt Marc. anything else pull HRSA our on One should get to recovery, comparison. of Steve, and if bad you Steve 'XX just that you one-timers, we you as for would, we XXXX morning.

times marketplace. total Marc, price, something psych And a great? premium be revenue, a EBITDA good know we for big of, number kind three just, want would then asset. guy They big deal in a there's a it's like So the

So returns, you of Thanks. when about think do the something how through that your filter and like put analysis? you guys look at that running

Marc Miller

want you Steve? go that, to Do on me

Steve Filton

Sure.

Marc Miller

Okay.

our mentioning go how looking any But play the determining won't lot look doing to are. business, how merit, you're when But if to with consistent we're go we fairly do comfortable side, when in figure interested our deal, factors particular I here. goes. obviously, that an it, seller asset behavioral would that there everything markets which the consider already markets, a we into and will we part the certainly, our big is what think acquisition I one. far as mean, mean, at deal, So out it's one we're pricing has any as approach where possible going on are of we the And at diligence we're, I a that at. that and overlaps into and

see more acute were on play, the little us. there we side. as something care pricing would then, So, competing have probably big we if didn't synergies long But market that acute, a we we could build and is who where side, in It's on behavioral one else is be actually interested us. FTC we same the And against thing markets for already on markets more. obviously, because up the if in a as the consideration different our issues,

couple that. the So, to comes to we'll certainly at opportunities continue when know a look all about fruition, BH - it we different of side, and you'll on

Steve Filton

just quarter. then care a And very recap sort the word, extraordinary, better for revenue in particularly of the want I'll of acute quickly items

to million event collection we aged of million $XX COVID reimbursement local in of HRSA think non the to the $XX in $X $XX the uninsured quantify state million the and that impact, patients and our in $XX COVID-related QX I $XX from range. of is and to of the receivables the million IT sort recovery or reimbursement million sort range million range,

are those items think talking the we're about… I

John Ransom

thinking 'XX the was full sorry. that. got I goes annual quarter debt got an know as was year I'm for No, number. about get bad think I recur, the year, to trying number. won't I we I Thanks. I the sequester recovery away. full

Steve Filton

I'm Okay. sorry.

to and I through date, the IT slated difficult the emergency national really a state of project. And are to the July. think HRSA yes, sort the one-time money So, moment, thing. that is go which reimbursement is is The local is at currently event

the end the through technically, moment, goes suggested they through going I But at year. at of it think least has the July. administration the only that anticipated

to what have see we'll So that benefit is.

John Ransom

Thank you. Okay.

Steve Filton

Thank you.

Operator

We have at no presenters closing remarks. time. the call back this to for questions further turn I

Steve Filton

to like Okay. time thank speaking their again look for everybody We to forward with quarter. and everybody next just

Operator

call. This concludes conference today's

You disconnect. now may

Universal Health Services (UHS) 27 Apr 212021 Q1 Earnings call transcript