UHS - Earnings call 1 2023 | Universal Health Services, Inc.

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Operator

Good morning, and thank you for standing by. Welcome to the First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Steve Filton, Executive Vice President and Chief Financial Officer. Please go ahead.

Steve Filton

Thank you, and good morning. joining morning. also is Miller us this Marc We Services ended results to this March Universal Health review of for XXXX. welcome you XX, the first quarter

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

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

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

quarter. day, days. to behavioral Combined year XX% with that revenue revenues with grew overall first in quarter, the revenue capacity patient margins almost The a in by continue over almost allowed EBITDA adjusted in and reduce produced X.X% to adjusted increase strong vacancies behavioral behavioral from in of growth, healthy prior And COVID During the activity health decline our labor their X% level increase year-over-year to per a increased XX% the XX%. hospitals our reduction net resulting same-store hospitals of results. a bed patient

increasing adjusted their services hospitals acute demand experienced year-over-year. Our admissions XX.X% with strong for

of more X.X%. revenue reasons, muted For at was variety a growth

the COVID quarter first the due COVID diagnosed first As a XX% lower admissions XXXX. the less and COVID of of reduced patients but XX% quarter. patients. The Medicare add-on made patients our revenues to including reimbursement This to not was the quarter of COVID recorded Medicare prior did in the incremental resulted of in in Texas XXXX, only impact million TERP sequestration of the first year's support with [ HRSA, this compared in $XX of out-of-period of also of in decline government payments There of period. admissions total million was year $XX X% in quarter up headwind associated percentage the acuity admissions, XXXX ] recur a and QX reimbursement in same the that

continuing pay was of quarter, peak of which year XXXX. to in volumes third adjusted that lower pay, quarter than declined quarter. last the in robust of in amount offset in revenue volume were revenue the increasing of little was hourly includes in lower by total, admission XXXX. the first noting a there quarters volumes declined a pay $XX from surgical It's premium was quarter, in it what to the year's premium average our per acute was worth that overall In robust, shift same-store not the outpatient, is a inpatient has major was compared premium EBITDA flat reason The prior the pressures. Meanwhile, it $XXX While XX% rate, care resulted in first further. X% growth resulting million increase dramatic which of from similar the over quarter quarter, from to the overall in million fourth and first the further XXXX,

startup headwind impact Springs $XX quarter note also for related facilities. non-same-store of losses We the million of and Desert a the that million Hospital acute closure of included the approximately results to first approximately $X

XXXX, of largely first was accrued of same as was in the during unfavorable due quarter first million in we other million in The cost million the for of share to million. shares Since during the primarily current capital activities due quarter capital Our of timing change quarter compensation we of on payable. In own than XXXX, cash XXXX. XXXX accounts, the accounts a outstanding spent approximately generated decline working and the million repurchased $XXX of XXX,XXX compared shares. expenditures $XXX disbursements $XX $XXX to $XXX at inception total of more XX% of operating repurchase an the from to the company's and our program have acquired

our comments. we credit over to March now revolving had turn aggregate facility. I'll XX, the Miller, capacity borrowing $XXX to XXXX, Marc President CEO, million for of As of closing $X.X available pursuant call billion and

Marc Miller

is experienced we first were as the call, in the year-end last our we COVID and less conference to particularly gradually XXXX good those of continue many which become anticipated segments But We hospitals, acute acute In recovery that Steve, significant pandemic. The experiencing in will COVID-related patterns for our volumes continued before factor a comparison post-pandemic variant patients both acuity with envisioned to said will year the and progresses. business world. challenging. year's much begin of trajectory we morning. the a headwinds as and a the resemble Thanks, our quarter of year in into surge transition Omicron the

the on highlighted to We pressures. In to our be make reduce turnover. progress for has pay the XXXX upward increase continue while time decline hiring overall as from by expected about premium levels the to being, we pressure to in we able X/X pay And rates Overall, premium reduce we pleased off acute segment, of on were XXXX leveled in and our which quarter in pre-pandemic in continue internal results, and tended with behind. our line results behavioral first we rate ahead which somewhat slightly run to results about actually revenues our to a expense, is largely X% physician but our of budgeted at with with X.X% and closer acute were run wage expectations to XXXX. is

We are time. answer to this at pleased questions

Operator

Jason [Operator Instructions] Citi. have Cassorla question a We with from

Jason Cassorla

performance comp? how easier this thinking given an the the momentum the guess, quarter, you're year. XXXX? But I guess, obviously, for of and for beyond in your of curious key start to growth guess, else demand volume I I solid I sustainability volume remainder believe about the first, the Great. if And wanted about underlying anything broad-based or you ask trajectory. a was

Steve Filton

Sure, we've at point COVID kind Jason. non-COVID the felt would to I think and continue call the decline that begin time sort we made of level continue as a lower, volumes that that for of Look, a endemic some to it, we'll volumes recover.

anticipated. of than see we're seems think growth to our their have at think in I begin bit hospital, what patterns said been quite be we digits frankly, account peers that well a the broad-based clearly, our into recovery, taking volumes a to growth think care there of track quarter, at the pricing in has that acute low acute hospital, public across I as similar care level. going slower space. And to first the and But I is sort pre-pandemic a mid-single volume expectation to sort with recovery

once resembles particularly, and business get closer first ultimately, quarter with a something to to comparison, think I an COVID acute So our we model the care difficult that pre-pandemic begin lot that beyond see we'll experience.

Jason Cassorla

I else? you're just about given improvements should great. growth 'XX, then Any guess, per for behavioral Okay. And there revenue Got think better the favorable any in scarcity, remainder that in be trend, follow-up, volume on help of labor quarter. it. X% seeing than the stat day as how color through the would the I to anything product ask about we patient on wanted the up just a

Steve Filton

Yes. I calls. Again, on so think, we've a prior talked number about this, of

per I annually. to X% about revenue in tended X% think behavioral prior division pandemic, the the to adjusted day increase to

I'll we have space, think of continue leverage day is the environment aggressive some, and adjusted in change our idea turning the capacity answer a the I number with honest again, with quarter. with broadly, our behavioral payers? dynamic to jump beds X% your seen that the of the more because renegotiated it where I of we and to gave those across in think with view in of supply pandemic, capacity space cases increasing staffing, demand in the an saw contracts our just many say, of of I the number as But of us a as in payers constraint aggressive it of a Obviously, and that we in take also a first to on we've we've geographies more crux in hire attributed degree. in people that And ease revenue you I think a that the -- And payers. And stance some During the environment question the to adequate part patients is, or the a think instances. X% the lowest per day stance space, to I across does X% the sort we constraints per away lack an many many exceeds more quarters. were more think

have a providers our place call, some. minimum talked and rates of we would we growth about our we're our in I they're leverage want still in the in at when with to their to pay to we patients to that our think XXXX I But per in did treated, revenue us. -- to projecting so day have moderate say, have a And going payers think market also last they guidance guidance were geographies. going to If many that

environment of if a some in our with moderation, anticipated terms it's something payers. our now, been guidance. negotiations is certainly that's So it right we see strong But pretty in

Operator

the line of Josh with Nephron from [Operator Raskin Instructions] comes question Research.

Marco Criscuolo

Josh. a up is is to actually appears And for of behavioral back on in Marco just levels Based number you as that geographies. on improve. also in This commentary, outstripping supply spoke the opening capacity demand staffing it your segment

we're side there? acquisitions should So where point development expect behavioral or think with on now that, assets more of do even you a we at the

Steve Filton

Yes.

pandemic whole right. meeting we reasonable put or study and that clinicians, the at merited continued behavioral in whether your had hiring reviewed our building are of hold just had more to in occupancy think side your during in certainly building it those I the think running question. did capacity question of facilities of in We the XX% with on consider, point I new de question, although our facilities development issues some. But capacity Obviously, I activities, I patients. we mean, especially recently we excess of we a at which facilities. the of and exact a had nurses is constraints to think the capacity a facilities, chunk building treat existing sufficient significant some novo we it's on during

bit a compounding So is you're dynamic. kind I this of think of right, a

more to more facilities and fill and to we our able to able some of able we're need our to patients. in treat treat we're think patients, as As our And of permanent hire more vacancies, projects. novo capacity our some I may people of increase of be more some we'll de

think So certainly over the that's next years. I possibility a several

Marco Criscuolo

a some gave was labor you on know thoughts I side. utilizing acute quarter. to are the that. it to just demand capacity. care the in acute as think levels you on on But the contract to detail wondering I on where just now then do back your continue temporary rates makes increasing And And of Great. means trends there'll whether the be sense enough sustained support labor side

Steve Filton

was the with think staffing labor surges what Yes. traditional those always or of were that was disrupting of factor that temporary to and nurses, et the and been. Xx sort in I acute and sense aside, so temporary made temporary on of really volumes, COVID are sort us, the think, traditional in for always I cetera. What demands to and that your approach the temporary rose X think have price when I X for it there of during solve became labor surges to peers, cost I business temporary sometimes largely which mean kind of traveling the COVID often activity the rates use our

see I have down, quite and a those think down as them we numbers certainly we come come bit. seen

of past progress as we think going that that think outside beyond that XXXX to times use to like going a when above I've et that, cost a certain will many largely will were for during labor temporary I supply-demand I pandemic, refused we to go of labor, that approach And these that so level. think it temporary cetera. And on other sort I dynamic say return last on of less labor, be inflationary level where call, things And again, have at there frequent and a we're levels, more seen we're the to and I pricing referenced traditional just got point. and we're in few see in that the to sort temporary got the to the pre-pandemic we're it, if go agencies we'll it think we need of years. we that back expensive what Although it get we but much basis, that I dynamic pre-pandemic than

Operator

comes Instructions] Andrew of from and UBS. it [Operator Mok line the with

Andrew Mok

business trends us the continued improvement the such acuity Did that you quarter? Can in seen actually seeing? match strong that of understand underlying help it the were the the Or in acute improve? context sequential in headwind fourth volumes you're acuity lower acuity some of so

Steve Filton

Yes.

So some the improvement of I normal patterns. sequential think sequential improvement the reflects -- seasonal

first reduced in our year cetera. activity holidays year, think, our there's and fourth step quarter in from generally significant the acute any normal some a is I on side. fourth quarter, pretty busiest the during the the of et And up quarter

to procedures get in some of to those of you least of just those see scheduled elective the procedures, absolutely patterns the schedule cetera. for and patients return pandemic had did deferred beginning more -- delayed pipeline think I into continue I at see normal So you that. think during and et also who some

think So you I dynamic. saw that

the I we look of the I you challenging. first favorable my much when Omicron was So it look when we quarter had the basis when from had acuity, clearly high when year-over-year were surge, at comparisons the acute basis, performance a more think year the mind, in it think you that sequential care a to very more from last at

And reimbursement we've fourth the was quarter the the quarter view as in appropriate acute to it that point, reinforces year. sort care the created guidance division with our You in But for acute an think over the sort trajectory -- have to encouraging COVID improving of goes improvement performance of the of last first XXXX your year I us. on.

Andrew Mok

related is expectations? on Hospital. against that, to market with And Vegas an Desert it. tracking Hospital Springs can down Reno Las New How the closed respect update the to in Got hoping you you that provide the

Steve Filton

dynamics. very I mean Yes. different are X so those

related As building Hospital. last discussed the the between Henderson, to existing Desert we hospital our sort I is our Springs really think new Hospital Henderson in Desert existing we're Springs West of call, which our dynamic, it's in and

other other As I in to realization replacing think our would West all market. very hospitals, the be began elsewhere in Henderson often physicians make came decisions They the the and patients own ultimately, and and Desert's to employees hospitals, to function market. that move

we site. the as still a an so acute close hospital And department to we freestanding made care the emergency decision Desert operate on though

$X of on hospital -- when million or perspective, particularly Nevada but about shutdown I of forward been places recover our spring As bit Texas. in compared I markets like have mentioned dynamics in in et the recover the Florida Texas not it impact level West a in population compared very opens costs, will at of our year. year $X we Florida I the California. after looking have $XX a we middle from think tailwind was we're think, our had a I the million in costs and first and it And think around than what I think the impact. our case, Reno, and Henderson XXXX positive quarter progresses, seen shift the is peers or will that year. have that, either per prepared just last the pandemic our average. $XX new I an to indicated remarks we're consistent the a when a XXXX. In a to say, would and drag that million And Hospital. Broadly, other headwind from faster certainly I to much Springs severance our that created including cetera, as expecting an acute much think said, There's Desert as those with the we've guidance, will country, and less in markets care quarter last year. Reno and our drag favorable about this the Essentially, of improve million is, from again, think, to in XXXX this And over

I around more as the some think down didn't shut completely as the markets They to as quickly those recover tended from country. quickly shutdown. other economies

with least I our peers couple markets at those have as experience of again, well. a consistent think about talked is what in So our

Operator

[Operator Wells the with of it Fargo. line Stephen comes from Instructions] at Baxter

Nicholas Shah

I light This your results talk about particularly the some was could QX saw hoping the of your for is guidance, Nick a impact thinking on of for favorability in you full year little you how behavioral Steve. bit in quarter? margin in

Steve Filton

Yes.

ahead will we're will So both in that, consensus results actual as of means existing which that the our is that I practice, consensus forecast. were press guidance. give internal our although maintaining ahead release, our estimates, quarter quarterly And guidance, we our I guidance internal somewhat were didn't because address and we say of forecast don't our for say and the our

In terms in that first the -- know couple peers of quarter. raised guidance their our I a

been As don't we've than ever or better pleased with have quarter would we this first any you worse. first I more quarter UHS all for results. been changed Obviously, I've for after has at for know, generally, better case, X decades. been in our it recall the were for But there the guidance change. that

I other call year trajectory think make that comments as will will that as we're the earnings also Marc's on the point -- and expecting I continue improve the to that earnings but is XXXX progresses. in unlike years, indicated the

perspective our after was And feel But results. we're change full year pleased any or of certainly, other to any need there with so sort first we quarter either results. a feel practice guidance with didn't very the first it comfortable from that earnings, the quarter very historical the

Operator

from with line comes Ann Group. Mizuho next Hynes Our Instructions] of [Operator the

Ann Hynes

recovering I what said us is you you was other? think and the it's about give the now? can talk height of stats which do than maybe pandemic, turnover was And maybe turnover segment, what pandemic at in improved, you it nursing know before the but some faster trailing what trends you segment Could each the

Steve Filton

Sure, Ann.

tended particularly turnover, low the XX% nursing range. think I in average So the U.S., pre-pandemic in across to

of hospital than most industry hospitals for turnover and our that. I tended has the is many think I for think, a significant, bit been a better to But years. obviously, little do nursing challenge

During the tripled, for and for pandemic, even but hospitals UHS those not think behavioral, across I just again, I and think not or cases, some for doubled in country. just percentages acute the often maybe

agencies for businesses make home during in these care to it opportunities high-priced or care these particularly subacute nursing homes to long-term were behavioral sort hospitals challenging was think premium health settings losing of any providers I clinicians really or incredibly like or COVID acute who the pandemic. amounts

we all along of return as I nurses we've in And volumes the that levels if occupations QX to think what their that COVID and said think would saw of original of will, that that. was to reduced their work year, we sort or of home-base you this diminished sort sort seen I or, many sites.

of faster more me, And benefit same-store as consequence, sort our excuse growth in our that been the I quicker permanent that first a vacancies. and we quarter, able side revenue we've that a fill again, concrete to progress a on we're the And think to on able XX% very of more of seen saw that been think, patients. making. we've the -- I behavioral acute we've reflection is to where

acute year making ago. from a progress. I was think where by on it we're half reduced We've obviously our premium side, pay almost the

quoted. our peers have I number of a think

that pay when wage I about where labor. We differential little And the numbers. are like isolate we that a numbers as own in both acute But range, overtime maybe our I quoting pay well tended includes things our percentage you is think talk overall right and employees as have and by issues salaries that. shift peers premium of in contract X% that as to to wages, to our we're contract bit just X% than which a lower even think the care labor

care side little has slower. So while as -- we've think been a recovery clearly made that bit care the progress I on acute it's And acute the well.

rest the think of I business positions care for it the the acute year. well

so what acuity much able As we'll in the fact that as ago, improve, be we've able the bodes reduce accomplish from volumes premium a surgical quarters well year to upcoming for pay return well. to and been

Ann Hynes

And what -- you XXXX? you in-patient coming delta Great. think side like just was not the versus just what on admissions in-patient do back in describe sequentially. trends, what Can improved is

Steve Filton

Yes.

it to think I tends board. the across be

basis. I seen which, surgical We've a our is to sort I service volume of I UHS, in emergency there's our I cascading think unique more procedures orthopedic have done the an remarks, basis, would on to outpatient a that shift as, again, think, elective seen impact admissions. We procedures. procedures line, increasing of has pretty room and on the sort the an and broadly, definitely of being volumes highlight, but I in mentioned shift impact schedules last on this in volumes particularly dampening one particularly, absolute of even dramatic we've from surgical even in just are that improve. increasing But of the is almost our increase, my volumes service overall think outpatient inpatient clearly in-patient couple in lines seen years increase. a to seeing we're always And that though again, and are all is don't that I think prepared

Operator

it comes Lake from Research. and Wolfe Instructions] line of with the Justin [Operator

Austin Gerlach

you and a focal back that Justin. just described. scheduled in of that was elective through year. mix I sticking XQ is for Steve, last little This that XQ, Austin half on of know a like on bit

that You to the kind is going outpatient where if can noted tracking level? but forward? quantify improvement some shift run pre-pandemic of wondering that maybe And you there, versus that's shifting maybe rate

Steve Filton

X%, like I as remarks, something I growth, mean, about XX%, I around side, side, on on prepared that. the outpatient lower the growth higher inpatient maybe again, talked So think XX% surgical my total maybe year-over-year surgical in

of mean minimum at pace sort decline, be and that there think COVID I we've those their return indefinitely. But et would levels. level would of pre-pandemic catch-up I difficult mean, reflective procedures, of pent-up of deferred volumes pretty as be is a a continue kind for again, some volumes surgical argued to demand some I -- that time some to of that now of would think amount growth I cetera.

I volume that seems think lost like of where be skewed a the surge, steady But that right we're of pandemic. nobody some it there'll we growth at to now the which at ought height in the recapturing absent, although we're the volumes, and point another during to COVID a outpatient continue anticipating be moment, more revenue to patients. sustainable be suspect to relatively surgical there I feels

Austin Gerlach

Great. And there's contracting maybe favorability just focus. follow-up, kind any wondering of if a then front? as just commercial quick there cycle and I'm update if on some in that you're still seeing

Steve Filton

Yes. half are I inflation think the general, obviously, XXXX, back world, indicated, mean a I negotiating we have I as I probably on indicated, business, we've but in since began think that the managed increases on, care when have pre rest are we're think, of the clear been I of as the of our I to But somewhere they range contracts mean, higher come yes, relief. quite commercial renewal. than for basis for continue, XXX, pandemic. particular, That up think frankly, XXX were in periods getting we in renegotiating point will what some a number impact contracts as

first equal again, the way. we to past when see the But I whack. COVID are clearer it's become not as side, quarter going our lot it to get easy our clearly, other think you side been and much the in revenue the inflationary to admission of relief per factor comparisons the necessarily revenue see on as that the our not year been pressures think because those for argue be not acute as more the full we've would we on I prior going results. And for the It's are can in day. nearly of more it's got under out a working certainly helpful per behavioral you've still number to but sort acuity

Operator

[Operator Kevin Instructions] from Bank Fischbeck with it comes America. and of

Joanna Gajuk

This is Gajuk today. filling Kevin Joanna in for

first, a behavioral follow-up So business. I on the guess, just

kind terms on We is But the board? lines about is color across regions color in any talked the it of additional pretty business just the or that but acute, site So of or volume strong volume the there. kind of there strength? just

Steve Filton

during length I is subject at Not again, we've in that really, the mean, Joanna. great this calls discussed pandemic. a

hospitals. And throughout hire like We and staffing things the that volumes folks, even also other on nonprofessional of who is psychologists a to sufficient some of technicians care those we as was patient psychiatrists have behavioral continue of growth our therapists fill in behavioral argued number in our mainly as biggest and critical also what nurses, the decline, part our and we constrain COVID more vacancies. that able was hire clinicians, inability -- professionals which say be more but health our even, we'd people volume to planning the but and are permanent a to

early Obviously, into Our net increasing quarter saw trends hires XXXX. you half been our consistently. But back signs think are continue they over have continuing improve for the those I well now to of QX. the improve And is a pretty volumes year behavioral in in this very robustly.

hit week years. we've seen of census a last within couple think we number highest in behavioral our that I the

to geography single growth comprehensive be that So or couldn't line to very geography from pretty service to very to, a treat but single our really a honest, ability board. more not improvement. and we're continue could drive a across same-store a it's XX% the bullish anything From ability increase revenue be there's -- perspective, it's fill again, that our those that service about But perspective, vacancies patients. line level much perfectly of because

Joanna Gajuk

maybe And with say the like sounds but because sound in the like would segment, talking -- it that made you it about things are we margins. you strength

or year for of change your ballpark? any for view to of kind in segment this So it's the kind the

Steve Filton

XXXX as pandemic be remarks. which out year We fulfilling environment -- think into envision we would we Yes. our and when world, I labor mean, a again, in transition wouldn't our created vacancies, made I that I'll of Marc just disruption. greater comments labor of by echo we XXXX guidance, the be a there have post-pandemic much much of demand success in supply the sort in his

about that's year. for Certainly, how the out the behavioral trends very way on. our these quarter particularly That's of most plays started year very strongly played continue good guidance on the first the the We're the out, anticipate way will has as and out side. year goes that the feeling

Joanna Gajuk

Great. many And them comes of process then quite last bit. talking this it now, this of states question are whether a starting delaying on behavioral about to When I segment. guess redetermination we've been but

about So out anything acute business then guess, play it all? you this the behavioral for And think your how any specifically? if can is talk comments this Do at guidance? your will could XXXX, in assume you you also, impact more Or I on care how business?

Steve Filton

Yes.

the go do has is very view clear. exchange commercial so. who qualify and lose really what the are the business, products, a not at depends the and So the question that And and truth, which at to coverage process, do of their your for precise states so; redeterminations of on certainly either nobody it number look, that's It I through can of one, pace the sort acute on pace which the indicates, quickly or depends can behavior clear a two, by them affect. as lot going how redetermination the Joanna, folks they Medicaid can way, think how percentage number

about out. of have this how of been there play will all sorts people guesstimates all sorts by So

industry substantively hospital the and frankly, somewhat Some very positive are them quite of negative. are, some for

is I in largely our been guesstimate, has But think assumptions to what did I modestly pricing guidance XXXX. fair, XXXX segments. but think negative for we redeterminations think as being of a our both in included was broadly, be that that for sort about

coverage possible might we commercial So coverage at We're be ready any market. do from certainly to do that we'll can lose a plays operational requalify do patients hospitals to other our an or Medicaid everything particular it who their out. sure perspective available to that in for make exchanges see everything that how

But quarters. level So that next something sort have we're of we, are round over I going prepared redeterminations. deal with that's to develops couple as an and see and at to of that industry, wait out that how plays think the to

Operator

Barclays. [Operator line and from it comes Valiquette of Instructions] Steven the with

Steven J. Valiquette

February in labor too in labor, later get Not segments. March, better tracker job nurse granular company showed filling to on had the in momentum our vacancies both quarter the and especially on monthly but

well bode the also I So second in quarter. for that would volumes would think

to quarter curious So but the the monthly you I'm to well. quarter labor trends, trends for not whether exiting asking the second give as the a for that obviously, momentum the you're front positive company bias if just volume and on just on comment to comment also in able on

Steve Filton

guidance that broadly, I've already, quarter Yes. would on. from our we times I in went both number the I call as think is my idea volume way perspective just built. on Look, of the noted as again, a XXXX broadly, comments concur the with say Steve, things a the labor improve that's And perspective,

QX from to that traditional think in way and not that it it continue to that trend. that things out seems would out first quarter seems necessarily thought be seasonality But get would better the trajectory to playing be different in early would and historically I played certainly XXXX we suggest forward. way, be QX, the

in that, year the the at assumptions in So we guidance playing to that that way be out our in expected. that by least we're early made encouraged the we XXXX seem

Operator

Pito it with comes line and Deutsche of Bank. Instructions] from [Operator the Chickering

Pito Chickering

first are follow quarter quantify Can behavioral beds that now staff then new unable if fourth and quarter? many the of And how to throughout combine Joanna's specifically both year? the the you was, the at any? to both hires the you to where here. point, turnover question I how Ann And behavioral in net this kind the up and versus does compared still hires track

Steve Filton

Yes.

I it. behavioral of a detail a progressed. has think an pretty last on will give And that's again, precise accelerating definitely thinks capped, I probably said, quarter of as about time do many because I I year. of beds really consistent Pito, number in our expectations. it expect positive consistent end the continue have have way me. kind thing. think, What pretty again, know And way I I net case. How think And net et So that the sort cetera? varies facility really been since we we particular, first been occasions, of be It's each don't have side, don't the think number and what on in interesting of We hire the the that's the to our in is hires I front of and with

traditionally new, staffing. I open, of patient. is generally not of bed been anything treat again, not sufficient as staff we a even I an has to terribly or has and -- sort continue kept a bed lack that or before staff kind unit to or comment I this but member think describe if members of or to because made will they away significant it say, available closed not numbers this closed mean, a to an of turn because temporarily yes. we continue it of available we be there's patients

to that continue believe chase to hiring believe to people make to people the about the through out and meet incoming us inquiry demand in continue process, that that's demand people space will we people behavioral has treatment demonstrated be numbers hire like We that there. It's to demand. online. hiring people calling been as our inbound XXX inquiring we're we already not the there progress or So that's and whether we're the

volume, that As could demand as call of but net hires. significant that through our expanding continuing we amount capacity, we call, unmet we potentially a expand in earlier also addressed to through meet still measure bed the incoming we there's believe,

Pito Chickering

Okay. here. question then follow-up Great. a And

coming mid-single How sort of coming the of As you running in much it from sort inflation expansion beds sort of from versus running next -- over those up fixed is how the months, leverage cost of X% pricing in in getting margin this getting digits the filled to about the think much is spread wage and behavioral XX there? XX the range?

Steve Filton

volume. of the think if you as on an and evenly at growth -- question. in I'm look sorry. I obviously, I quarter fully pretty side, XX% sure our was split kind between mean, understand the think, I revenue upside Yes. more Honestly, there's to volume price not first question. the responded I earlier I'm I

we and the bit eased. price per day I constraints revenue goes adjusted or are moderate year a as that may of some capacity see on little the think

our very the were really patterns future, I not significantly in to Obviously, the growth because growth as what frankly, growth confident think I But during were we the foreseeable volume XX disruption saw. of over in supply the pegged is we're think that sort you inconsistent years, continue the muted volume But pandemic couple for should labor sustainable we digits I with and the very mid-single a patterns demand think XX behavioral continue time volume volume those that, that and pre-pandemic. months the is of next that number. frame of

Operator

Jamie and Sachs. from with comes Perse our [Operator Instructions] question Goldman

Jamie Perse

adjusted about guided admission XXXX. revenue to X% previously to in X% you Steve, per So

said that also more kind XXXX. the one was for your in You of of aggressive assumptions thinking

So and the think your the expectations how just and curious of for rest adjusted getting about through the per tough XQ to segment? that metric year the how revenue for out comp acute played admission versus

Steve Filton

Yes.

expense think was was I obviously, our our pricing performance And the mean, I acute think saying not slightly the below in again, on control our mostly in was own pretty I in be were So that first pleased straightforward comments hard was because strong. it it expectations. And our side quarter. the think the quarter volumes I with to

drop. we business as on a of difficult know that think acute we I quarter again, said for was the now first So because going basis that pricing for acuity be always to comparison,

the COVID see this pricing as means, I think like, dynamic view shift we'll to et a the, the better because what important, of comparison we'll progresses as is cetera. and true call looks inpatient nearly year not get again, sort I'll the to get be outpatient of what to going it,

certainly side. think but expectations full I way, on in slightly behind any QX, in that acute we we doesn't feel can't mean expectations year were the like get Again, to sort don't of our

Jamie Perse

contracting payers. Okay. just commercial on tactics And then with

kind I'm negotiations mentioned to Are receptive payers types you from side some in those didn't on of update how previously where some Have becoming there medium payers of at the have contracts more there away halfway. better out? particular? rates? providers you're walked of curious contracts? were You any played willing to behavioral if actually potentially away walk meet you Just

Steve Filton

Yes.

the seeing large with Because out meet that your of large rate during we our is unwilling many in to, payers to well share think are day revenue what in the pandemic reasonable network and the a above I be quarter again. think So again, geographies, constraints X%, pudding. certainly We have in degree, I had more us a and in tended essentially per halfway, market if terms, in historical to maybe us. in with been growth adjusted that the us of our I averages, which revenue I X% unlike with X.X% go our range, proof mean, capacity pay behavioral is think the

to there in have some patients at limited. think choices other their least severely in is options treated I and geographies, settings, their

on you day, So I end think of ask the adjusted Other per that of lot the times, away plays notice that. we've and actually of contract the will negotiated termination will contract been will we we reach at and the sort pretty of day, think, me out Again, of will times, I the evidence And successful. out. is it settlement and revenue plays A we how -- terminate. it give walk rates. a terminates never

thing. a permanent sometimes And that's

payer the settle. will the after and sometimes even comes And back determination

going sense of for way there's to capacity aggressive a are in they are country to, place broadly while think, if really play reasonable be doesn't time. not But their same to every to sure having be and the out excess is find want subscribers to space, behavioral my it adequately payers lot is around So that make be going the certainly always again, themselves they I there treated. a

And so behavioral time. is strong side, going the continue on us that position I think for with leverage some to

Marc Miller

this for We I be little we're because doing. have a And just forcefully this we're need decided now that to to more that paid bit point the push fairly work we just to issue. on want going just piggyback

are Our expenses up.

forward. But not that, And that's them having don't meet payers time. to some we've addition of lot the going be the we've been payers, that before. behavioral say, in us going goes Steve in clearly that of the lot explaining halfway And X needs different of to months last to not all to XX are I'd adequate had it the what discussions growing we're And Their a to is on saying. side. a with

States United the in provider largest in the are behavioral. We

them to the more, way pay in trying with than their is a more needs. to continue serviced conducive them And a going it not try nickel show leverage is to much bit that's work bit. little to shifting ultimately, And So but satisfy we're and better and them dime. little how for a their patients to us have to

they're those that conversations are, escalating So having results now. positive that would I more types we're have I of different we're and to discussions the think say, from going discussions. And

Operator

for Steve at And conference like back Filton to the to turn would remarks. closing this I time,

Steve Filton

Okay. and look Thank morning you. We'd their this for like to next speaking forward to again everybody thank quarter. time

Operator

Thank disconnect. you And you now and this call. conference for may participating, today's concludes

Universal Health Services (UHS) 26 Apr 232023 Q1 Earnings call transcript