Universal Health Services (UHS) 27 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Steve Filton	executive
Marc Miller	executive
Andrew Mok	analyst
Benjamin Hendrix	analyst
Ann Hynes	analyst
Justin Lake	analyst
Pito Chickering	analyst
Joanna Gajuk	analyst
Stephen Baxter	analyst
Sarah James	analyst
Albert Rice	analyst
Hua Ha	analyst
Benjamin Rossi	analyst
Scott Fidel	analyst
Ryan Langston	analyst
Jamie Perse	analyst

Call transcript

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

Operator

Good day, and thank you for standing by. Welcome to the Fourth Quarter 2024 Universal Health Services Earnings Conference Call. [Operator Instructions] Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Steve Filton, Executive Vice President and CFO. Please go ahead.

Steve Filton

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

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

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

before like the certain We'd highlight developments to up and business questions. trends opening to call

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

Marc Miller

fourth segment the the XXXX year's revenues to revenue a X.X% compared same-facility increased hospitals of in XXXX, adjusted quarter X.X% by quarter, care fourth fourth on of primarily admissions quarter net care per acute acute hospital our year. X.X% over driven Same-facility increase our in prior fourth basis, net last quarter a increased during adjusted of as During to by admission.

X amount in the XXXX XXXX, continued of of for Meanwhile, quarter, quarter paid million first million well peak example, The the consistent $XX with in premium from the operating expenses was a which $XXX previous remaining of of quarters. to managed. be for the fourth declined quarter

effective in of resulted revenues, combined supplemental full expense growth payments. a even the increase after XXXX, care XX% Medicaid acute our strong year EBITDA in controls, the excluding in For with

driven day. by During an hospitals the adjusted primarily revenue per patient our same-facility XX.X%, revenues behavioral in quarter, increased fourth increase by at health X.X%

the payments, X.X%. facility same Medicaid year-over-year the supplemental was revenue Excluding in growth increase

Steve Filton

Included approximately operating $XX during the additional from fourth These the through results reimbursements Medicaid with reimbursements quarter reimbursements were of million the million of of X, were in XX, XXXX payment revised more $XX net supplemental our connection State XXXX, July incremental full directed including July program XXXX net state earnings supplemental the XXXX. in recorded as programs, of included program on in aggregate net XX, Nevada than December period X-month the year covering guidance for XXXX. of our projections various

unfavorable during XXXX, result a for past we of As of claims. liability the million to increase years, trends and recorded during experienced a self-insured fourth quarter $XX reserves several the general professional our

year XXXX included Our for $XX our of million professional and operating increase liability the results full to reserves. a self-insured

the compared the which spent of the full of as Our billion cash $X.XXX fourth with for $XXX million to We year. original compared activities operating same $XXX to generated from expenditures quarter was XXXX during capital year in $X.XXX XXXX million during $XXX and XXXX million quarter during consistent XXXX. the was during on our XXXX, billion forecast during as

late outpatient division, next the Washington, Las acute months. our D.C. Center Medical in forecast in two In West XXXX We our we of to Hill invest in in in combined plan Hospital Henderson positive that both of expansion continuum Cedar and open Vegas broadening and to opened these XXXX continue EBITDA of in In be will presence our we facilities care. our segments, on a the basis. of

our XX.X own as million approximately $XXX we of of of to million date. repurchased For share have program. shares the acquired XXXX, representing full XX% our we repurchase our XXXX, pursuant than Since of January shares year outstanding X, shares that more

facility. credit pursuant capacity $X.XX December aggregate we billion XXXX, to of billion of borrowing revolving available XX, our had As $X.X

Marc Miller

in XXXX The historical was businesses in digits. trends EBITDA assumptions results their in last reflect growth largely core mid-single respective which the with underlying operating night's operating our the release, provided forecast,

We stable expect salary general XXXX. continued improvement in largely in will and that wages cost and trends remain

As our District any forecast XX-K approval filed yesterday, operating Medicaid and Tennessee those pending revenues XXXX Colombia, in excludes our of results of programs. noted in the CMS supplemental

care, located XXXX growth record patient to X.X% the and patient XXXX X% for XXXX schedule to forecast monitoring as payments U.S. remains is consolidated be expanded solid, hospitals in electronic behavioral our patient to the believe As slightly range. XX-K reflects, forecast demand our to total facility behavioral decrease in our facilities and adjusted accelerated assumes health our in investments -- We automation. supplemental services implementations forecasted in at the We've will of day including improve compared Medicaid our same technology XXXX. use

We acknowledge level has environment of as it especially political reimbursement. that ongoing the created to uncertainty, relates current Medicaid a

acute in current based have in that reimbursement change. our our Our various on Medicaid projections of A And in experience could B above our business that XX% in XXXX. are XXXX we national patient hospitals rating behavioral saw to division, scores we improvement segment, the forecast is pleased significant In connection or be subject currently average. an with programs well meaningfully

We are of these focusing in on metrics improvement continued XXXX.

now questions. are to pleased answer We your

Operator

Andrew from Barclays. [Operator with first Mok Instructions] Our question comes

Andrew Mok

which X% down despite to higher The state to typical up EBITDA year-over-year. rates be is than XXXX forecasted supplemental guidance payments is growth XX%,

color love growth to I'd what's more a higher XXXX? little in hear bit the on driving underlying So

Steve Filton

pressures by described things. have core expense the that as solid historical that fee et not on mean, growth on And use one, of XXXX, Andrew. robust to a COVID pretty of the pressures premium growth such Well, return inflation, a I norms, in very expenses operating and core during we related -- we the I wage sort pay, the he don't control. were think least just the think very a years, driven effective expense growth, that couple COVID, our the side, EBITDA volume two necessarily pricing think number I the to segments, I in talked of about faced being drag high the Marc Sure, at is acute cetera. professional but

reflected we're our sort in being high prepared outside our of much expecting a commentary as I So operating potentially discussed level. stable are environment that that at comments changes of a pretty more reimbursement the think

think in indicated, that, In I a we are as our significant incurred hoping incremental XXXX, addition we comments in recur that to amount expense will of not malpractice XXXX.

continued and then or interest interest operating we so boost count. And earnings. in but share our about then in source expense -- of talking perspective, that's a a as well know really another you're the an rate reduction upside from EPS earnings, in get And a from I reduction as

Andrew Mok

maybe I follow-up. higher $XXX and is wide, range, a guidance then despite just than million years The And operations visibility. Great. previous better think, is which

of wider than the and outcomes where takes range why So puts is usual? that range? within are here And the

Steve Filton

this changes we've that provide in Yes. commented beyond caution And that remarks, reimbursement of provided. the tried sort I we mean I level that we and range guidance. the of control in the our of and items some think the to I on I acknowledge wider that conservatism regard, that in part potential in is government think prepared of Marc -- and are terms think

Operator

Markets. comes Our Hendrix next with Capital question RBC from Ben

Benjamin Hendrix

in is wanted way foreseeable next foreseeing there out to overall specific Is DPP that changes programs? go for the year. decrease just of you're any conservatism parse how Just slight versus back that to in to much

Steve Filton

as There DPP the related of decline. decline think the that's for payments prior that periods. during some that is revenues had really the and XXXX Yes. we've we DPP programs driving Ben, that were recognized I for payments in each be the I reason next small reason but declines think decline disclosed may in that's some the main related periods. reason prior main is, year, to the recognized DPP main XXXX, And quarter the I some we've that to think

Benjamin Hendrix

reserves. then And up the malpractice on to follow just

at point there this the adjustment this overall Just there is Are cushion? trends increase a seeing how could you're point? you are of now at we thinking that year? are probability a where another about Or reasonable that adequacy

Steve Filton

Yes.

who we've establish reserves, pending reserves of our range a our think that It's of us. to actually third-party establishing claims, a evaluates and provides it's I Historically, at tried relatively cetera. trends, midpoint history, the our practice claims industry noting to analysis. sort that So RML use third-party et the worth we set comprehensive actuary in

Given move a that to this the area bit in little volatility we pressure, some and the end year of tried some of higher of towards the range. the

in element there for So and we an hoping a another there's reserves need XXXX. those of are conservatism that uptick won't built into be that

but we pretty be that, we've prudent position of a taken assured we feel Obviously, can't here. like

Operator

from comes Mizuho. question Hynes Ann next with Our

Ann Hynes

X%. below exiting X%, maybe XXXX Could thinking same-store I'm days? which you patient about talk would thought remembering remember you I about at be believe and I incorrectly was that you behavioral

assume what of accelerate the And said is? guidance, that So in it's drivers was to what you acceleration driver think us Can to to the X%. X.X% I going of just that? you tell you

Steve Filton

Yes.

-- patient a in honestly to that I did the unpredictable. October, I December, in volumes day sort public in thought So decline telling conference back half was we the behavioral fairly people my and in felt pretty in the holidays. except good we doing for in fact, appearance predict were November, always the of well, would That's was at what quarter, things. X/X X.X% And probably always December. hard I early with half about remember, our of were it dramatic and sort that the we Ann, range tracking December remember of happen first back in and I in think see of your of fact, and last

Year's over of the population softer in for Volumes to that and winter made places anticipating. quite really child those sort And frankly, thing. right of two a for New than that led early a struggled we've particularly the a temporary historically. that, of used weeks, of holidays difficult kind experienced quite January, weather. weather in or having the Christmas week, rebound equipped tended are sort us think which middle of in because of frankly, Wednesday, bit sort much was month on country, transient believe to to a winter particularly We've I little result mainly really last adolescent generally around and were last the we the not that,

the large that that patient generally we But school I pretty like X.X%, are a feel in of during sort and day wintertime. closures not that again, and of to places think getting transient Kentucky to metric Mississippi don't should heroic for be those close a and growth scale and year, seen the dynamics places full Tennessee achieve. in We've that X% Virginia sorts

Ann Hynes

Universal industry. in were actually Can in XXXX the Great. and And for then in behavioral you staying have what XXXX? you rates theme, they been what us Medicaid expect on the good remind

Steve Filton

to say, would again, I so volume describe X% fair, mean, to in that's and what X% exclusive in X% behavioral for X% same-store changes and I -- into any I Yes. what's be is, sort range. our price. X% built I X% X%, to of is X.X% price supplemental that And would X%, payments. revenue To guidance think growth XXXX pricing. That's just core the as that of

pricing, and our we'll continue sort thrust than your and has the to that. than better core of hope last that that's over to been press of and I years, Our generally payors the do think better question, several

So on in side conservatism projections, of equation. if there's of pricing it's our the element an behavioral the probably

Operator

Lake with question from Research. Justin next comes Our Wolfe

Justin Lake

to policy stuff. move wanted to over the I

would an discussion look the pivot are that savings this hearing Specifically, what some items I area to like on you a it within bigger of place there be off ticket the looks they taxes would know to. Medicaid, in sophisticated provider stuff, terms at caps of as you appetite legislation? table are the this maybe taxes provider like on

Marc Miller

You start.

Steve Filton

Yes.

I including point tax the think The a is there I provider companies I of would strikes. sort of think that made made for around all the our in directed support large these about states, of this, states definitive peer I to say, really Justin, have wide number country be mean, political or know public appears made I and we've provider payment So administration has programs and statements you no think taxes.

fair think programs learning protecting we're support, from the that throughout country amount over things debate of for within is programs. think, so Medicaid And the observing budget the a of Medicaid I this Congress one I and again, is bill that or there

support to hasn't There direct we a significant about states. state that payment in level specifically a a discussion political whole believe is great of but programs been many those programs there of the lot amount at for

Marc Miller

but not folks, the States. think add of talking And these said, a the off folks bipartisan And And a just just governor's what said record I as in key monitoring are the very Congress closely, not well. we're many Steve states effort. many just this of of from to hearing want in like states. there It's to offices the just Steve states in Republican-led large the many it's point. that's with in I but because The it's democratic clearly Washington, the

So pushback I on we're than that the is think tends that we a in position see sometimes what news. significant. suggest to And better the

Justin Lake

just Great. dollars -- The on And D.C., some potentially I question you've another coming DPP. Tennessee. then in know in got

comes guys XX-K. not to the any for projecting at do of stuff It level that through of a into end change great that. on in job You read your giving your the color Anything looks confidence you're of XXXX? like this that in that day? Like

Steve Filton

that And forecast annually, been has DPP. partially approved that and approved. that and two have in these D.C. you is remain our programs programs historical will when referenced XXXX and renewed continue our place reflects only even and to approved be comes we Washington, been historically have be presume are new once been it So reapproved our guide. programs that we though have program all programs to approved is they Tennessee in to believe The a practices that

still has program the the actual the back but the half dollars XXXX, Tennessee, been for requires for XXXX have approved it So waiver. been of Medicaid of approval CMS and approved

approval any Tennessee is haven't full those of until we so And granted, included dollars.

approval its The DC pending entirety. is in

some by in state of anything heard them the In XXXX and in district the they've QX of tell from their associations We any as expect in those CMS or our guidance. the uncertainty hospital are the what haven't included cases, suggesting problematic us either both that not that There's constituents tell sort any dollars structure. of timing their or be in programs They way approved. our to we'll nothing handled But tell -- again, handled in that hospital DPP that. sort been I you to is of themselves we've consistent the mean, pending will programs the it be I associations the the the beginning. with But mind, of administration, are of from into slowed yes, just expectation but see. how than approvals transition we've read that, way have and these other

Operator

Chickering Pito from comes question next with Bank. Deutsche Our

Pito Chickering

now today, your start repurchases. At repurchases? free the is of here? do do Leverage using all sort what Can leverage of ratios your those leverage increase here. you just you flow remind maintain borrowing are cash using below point And and targeted Xx share borrowings to us to to ratios share what your

Steve Filton

Pito. Thanks,

generally we the would So level, high I have future. the in at of Xs, And think think We're a things historically that, that. X. in where level generally would like sort I at approaching that's we a comfortable operated leverage certainly target

today. not possibility even I cash bulk a we share think is presumes our and that for the what million share repurchase. million possibility guidance think we'll would that were I free our repurchase again, that lever years in levels several and they've use decided certainly in the last we've the up we use be real think in The to conservative thinking in our reasonably flow But that, range. around of more I that something year of sort for than guidance, $XXX been $XXX could our

Pito Chickering

with leverage to to is above Okay. we some intellectually, thinking maintaining here so flow? to -- where just about start cash macro come could increasing you starting at least the you look leverage today, using beyond guys actually level free if But be it

Steve Filton

there our times that that's done been look No, for we I where sure. at that think have I fair. if historical practices, And certainly think you have

Pito Chickering

hospitals your other when you balance EBITDA those many with And close larger close does how how behavioral, need is there at a why And of do look it enough. a facilities? Fair guess, these facilities, X like for guys and I then such this you portfolio you impact quarter, for behavioral, in Okay. any facilities to closed on trimming supply-demand XXXX?

Steve Filton

Yes.

the the portfolio find at take sort time you someone of think I where portfolio behavioral years if part years a that would for wanted our facilities, is XX take XX we a have number it any that rationalization facilities to ago let's instance, say, an of today strategy that that of ongoing behavioral than ago. are think We we've of facilities. of I retooled portfolio consolidated today, to our hospitals and different was facilities we things. some We look and had provide and different sort sold is of services. done We've of number

or portfolio disclose and in that it. ask services acknowledge sort area, we of individual demand But detail I And strong those particular an your demand really has dynamics, particular we while these things. you that rationale things aspect what's is in during hospital that been reimbursement in this would the necessarily what when causes change portfolio, agree period. don't the large or not It's for discuss it's behavioral when comment that, we a Obviously, interim. can we so material think or overall with generally all particular the a of do in for

could of potential be And we And of try returning are they think, at things sort those on they I and things, curve those exit strategies, if retooling, look don't, have path lesser facilities and look all that could and could be to performance. to react a always of be more to whether effectively we least closure, sale, efficient, of could towards table. bell which the determine for sort getting do the be trying again kind those consolidation, are

Operator

of comes with Gajuk Bank Joanna Our from next question America.

Joanna Gajuk

you growth for missed your I for thanks revenue versus pricing? 'XX. growth, because assumptions but don't But for whether for acute segment know about talking it do what yes, assume volume First behavior I your

Steve Filton

Yes.

growth, the mid-single-digit little and acute X%, say, a in maybe bit between volume. think the X% for price range. are more division pretty would revenue assumptions the modest, I And I also probably evenly split So

to So both The moderated, I moderated, growth. should EBITDA pay and is expenses expand in premium of to think that have the us segments, in be in X.X%, use X% again, to have in divisions our allow X.X% And X% mind moderated, adjusted revenue expenses admission pricing environment margins. wage inflation where physician moderated. has growth, sufficient growth both this mid-single-digit grow

Joanna Gajuk

is you I XXXX. on some the for the on growth I some think of there? that? And seeing wages, Or issue wage the because Are a in just nationwide nursing shows function guess comp acceleration data late it

Steve Filton

national said when Joanne, didn't I'm data showing sorry, I the what? you hear it.

Marc Miller

wages. in Increase

Joanna Gajuk

Yes, just nothing like months obviously, earlier Wages. wage showed somehow then growth acceleration a a slightly, but like the 'XX, material, in of 'XX in of kind versus these couple higher of little bit and kind year-over-year. last

in I if for sounds view a that of know I So thinking about of that that. just like late 'XX 'XX. don't any to wage you're was that that there changed bit. kind mean little happened it have might of moderation in anything inflation I kind you're seeing want ask

Steve Filton

Yes.

moderation So years. of stabilized really of supply-demand real wages some I that It years stable. of don't survey environment over and comprehensive again, wages. suggests I sort significantly. feel sort mean would pressure you has that labor a clearly, pandemic as the ago. seeing wage of last -- we couple that doesn't but we've I out the there's coming seen significant wage that we like hear pressure won't. and feels the like those environment think And think were the like couple apologize, the But we're fairly pretty seeing wage in But national on inflation for it basically environment on pressure incremental doesn't the first said, of the of you characterize kind of sort I time. a didn't I

Marc Miller

temporary And continue down. as wages dependence our to overall labor, lessen we on our go

Joanna Gajuk

the in may just 'XX a last DPP versus discussion 'XX. down on if and And assume I follow-up how you squeeze

that you expect decline. And also So quantify we are Can to was expected two that items much prior period some recorded because are there, to in said 'XX? right? programs how there you also

on because a it going state available it's is are based that's in of So and dollars enrollment those have lower based enrollment? some in DPP happening linked to particularly states, is programs what's to them to those the

Steve Filton

Yes.

it's if think And the $XX to out-of-period transcripts might period that million, you look how extrapolate or called in there out maybe have million million, to much quarters, of roughly the And as think non-recurring back been. of I was so X it in driver. go I our me that's million at a strikes quarter, main you $XX quarter, XXXX. can $XX So prior we $XX sort previous that and a had And from kind first items I it that. said question, of each we

that There the experience they programs for next may be programs our says established, anything, most But sort individual or if historical stay sort once are showing declines been some have of sort slight they part, year. of at grow. of

don't I stuff in slight mostly real XXXX in again, programs that in XXXX. year driven think forecasting declines next decline had we're we is out-of-period that for So the by any DPP the in the than rather

Operator

comes from Wells next Baxter Our question Stephen with Fargo.

Stephen Baxter

D.C. kind amounts year of approval. at is for point, renewed what So Tennessee point today. the tied this do But how think follow-up guidance missed exists And I XXXX quick programs the be EBITDA two expense need or the discussion. might this another I partial that have in but growth? percentage tailwind mal DPP year? normalizes DPP your to understand the including And coverage to for plan? have year this of still year the just in the process of a full on then first it, was that -- amount much above assume and how hoping as for at pending I year-over-year do ones. we might you medical about becomes that not to to initial you're Washington, that's sizing only some contribution fully, came Just

Steve Filton

Yes.

don't was our part, as of guidance. above we had for had prepared our that believe added in recorded reserves original most -- we as additional expenses So recur. in that what the goes, we said we I malpractice beyond million malpractice those remarks And and think far $XX we what

been to change we've conservative. growth that And prudent that have does think and in of in general. reasonably like feel area fairly that's fair, so a the we've we We can we be but contributes been and XXXX. conservative volatile To fairly that some change,

as far refer indicated, DPP programs a previous question, XX-K a significant disclosure so approved, your to last of we state. detail. literally sure My already question approved. I have review by think people been half in it as probably As I'd not know everyone once still we had have being And our next indicate filed approved we year each what's DPP there amount a half But program, have I I'm the about the through chance roughly of DPP been our go guesstimate forecast and is that probably in pending. for monies approval night,

Operator

next comes with from Fitzgerald. question Sarah James Cantor Our

Sarah James

wanted really portfolio. outpatient? to is at around you bit about areas to more talk or Can looking strategy Are behavioral looking clinics? looking to it a the expand? methadone that Or CPC I Are inpatient? your back focused still go you you're guys little you on at

Steve Filton

in think is business. I we've here, and of specific segments, true both behavioral previous the Yes. to calls, mean I but this said really think I

related -- and our looking think prepared either we're out reflective historically inpatient on of think to think specifically sort mean generally the building has think I out continuum to which I outpatient the And programs. I mentioned outpatient in continuum. means our our remarks, Marc that of of that's out building build continuum in campuses care, and our behavioral I

follow-up programs. in receive patients require or our as care and who inpatients that often intensive continued often discharged care partial So hospitalization were outpatient

an think affiliated with country. on more or necessarily I to a presence receiving We some outpatient care around outpatient of in receiving started don't develop the feel facilities of people inpatient an acknowledge comfortable we've the hospital freestanding it who that campus hospital. inpatient are

And so freestanding separate finding and our for apart there hospitals. is that demand from we're outpatient care

relates We and capabilities build our as active out it military to to military. both retired outpatient continue

a have specialization real We in that.

space. and think of to we've again, opioid in about talked previous a more I the a presence little We this disorder bit establish calls, in have begun,

flat tending do as continuum are part think that we I so dispensing of sort treatment again, just of rather out assisted medication. a more to of sort just facilities medically of than are care broader

our given like feel ability in whether a we advantage continuum, Suboxone competitive or not just clinical that's to think able methadone or patients of whatever. broad sort to care, being of I medically a real with our or provide assisted whole is such a provide presence continuum treatment,

et outpatient treatment et that's required, treatment, cetera, cetera. if But inpatient

entering presence And the in with our degree will our to of continuum think that integrating care. expanding opioid be that space, context so we're I or that of in it broader

Sarah James

Great. or fast the pipeline And grow? that, us of timeline does look what of can you an you to idea materiality so like how give those do expect businesses to

Steve Filton

or Yes. additional so on a a bit a requires OUD year. probably pipeline. result we XX that or I the hospitals so development associated could have mostly facilities dozen point more presence campuses. outpatient The again, our would make mean, currently, space so or The our I reasonably of hospital with significant think, of a freestanding each sort efforts, in I

So to project harder I bit think that. a little

think to our bit point harder a that I of little some predict with a again, integrated the continuum, little and bit ramp. slower to I But that's is make be existing but there to likely

Operator

comes with question next Our UBS. from Rice A.J.

Albert Rice

is you made you the some the headwind Can key that? are were I $XX have you've that? appreciate, in subsidies flush guys number? that's X you what that, the think exchange just you that a -- be Steve, much you one can Or the put coming really 'XX, -- that. -- up I away comments you're on might got that mean pretty with assumptions how since out And to on you around a that go only enhanced target really only done think about the variability good of there might that's just in it if about million

Steve Filton

Yes.

when And those might away, A.J., is fall. or exchange So were generally in those point believe subsidies don't I on which that honestly, because moment. made any pretty patients made I a But people based overestimating comments the exchange X% are made the to when back the right we impact It's it in much that certainty the high-level go assumptions. I event that was at think -- estimate admissions we were acute About some -- I guestimate. a really floated we our the now. if I comments have, subsidies, the very of covered and

We lose those away. if their folks of assumed the went half that would about subsidies coverage

that a that, And of now, again, elective folks for the that of coverage, nuances be hospitals half lot reimbursed for bringing interstate, our and with might et for to still their those wouldn't we But presume obviously, we get some Now lose emergency they along our to there's their assume we folks business Medicaid were able cetera. would be might about other to go lose those that. qualify would coverage. would We coverage. come hospitals some

that's of assumptions the kind made. that we basis so of the the And

behavioral we So hospital it's largely not that build dynamics. high than track providing they historically that's to much that And in we acute We don't significant. behavioral have other care we exchange of part, patients made is as point the in don't I the large a on of separately in think is, number think this many I hospitals. quite copays deductibles the and they're incur I think, a products very relevant so where to these would been exchange think acute because have coverage likely are in often smaller side

Albert Rice

how Okay. there. they're in All to ask aspects two see the guidance. I want if right. to -- maybe I just they reflected of want

Las revenue some the top you income about on And insurance going our up was and in that doesn't affect guidance West dynamic second in is got is Henderson you I operating line Vegas 'XX. just I step last opened ask think And that then so late year. on? Can that? thing the the in you've to comment

spring. I think same-store you do much got, a you're this two you And are existing are numbers believe, that to impact -- how DC they You've enough same-store because have opening trends? consolidated Have away hospital those big to the the your on facilities those from draw and on do markets, going revenue about EBITDA? impact

Steve Filton

Yes.

I've above the is issued night And assumption think, million that as about in revenues about talked $XXX of I insurance people, that. this revenue, about far that of at a increase noted of as question on subsidiaries. think our last of that probably insurance digits I So first an the the guidance mid-single question There's number sort we revenue your addresses a call. your sort

of to insurance pretty affects we've that at to subsidiary as operate historically, line breakeven. discussed tends something top our So close sort that

but it's in significant reflective on a [Technical Difficulty]. not line, the So revenue really reflected way

both earnings, we admissions year's will far presence. existing expect West as thing be we be openings, are be numbers that Vegas store of note, in positive. hospital two a mentioned that EBITDA an because combination that in will Henderson question and cosmetic second even and revenues as our the that [indiscernible] about at prepared As remarks we the I same-store this will opening will same DC where in little distorting have I next in facilities our and same-store look bit, think, we a markets your

probably there'll so our some business. And existing of cannibalization be

off think I particularly look has solid gotten we overall, We're numbers. very Las think experience Vegas. it admission Henderson well. same-store a fast West get our Cedar in bit Hill hospitals to expecting opened to off I been depressed, to when will a as our as But make little a start start numbers have

in on of shouldn't much earnings XXXX. either So a drag hospital be

Operator

Our question with Baird. from Ha next Michael comes

Hua Ha

Two quick to ones start.

total upside, earnings And you confirm flow $XXX is what two? Tennessee I in DPP? across on through on those DPP typically do Just million and terms for the recognize to guess, D.C. the current, down of into payment

Steve Filton

Yes.

number but but those reasonably that right the us, people our programs validate I both from expected benefit So have our Michael, And on both that. We close, don't numbers XX-K our front disclose of all our numbers sounds in disclose disclosed your DPP to that our is numbers of provider we because the -- have the question, in of we tax. net the net second as generally view XX-K. can

we So line. bottom those assume generally drop to the numbers

Obviously, we that provide reimbursements point many for frankly, really time been the reimbursement to all are what's Medicaid those make the meant for inadequate years.

making really our past. up boost earnings deficient is minds for our but in significant the So immediate a impact to the in it's earnings

Hua Ha

for recent levels? everyone Got haven't mix there you or longer quite what look then away it. Looks more I improvement question guess, the of and at getting strongest to this expected. seems the the And impact Any initiatives flu say a seeing seems there happen season. like? return one then year past about to margin another to year, think would I a margins, margin needs pre-Covid in And does XQ? And be What Is from -- that history. kind materialize? on over you're I in really of you operationally historical be it only don't like maybe those my efforts, just a comments than be quick Any a pace to return of be lot margin back it. powerful. real to I then patient like one improvement quicker then or phase heard normative embedded would behavioral levels great. and it'd might next We're one acute to the like? other for two path would fair mention that

Steve Filton

the So think the Overall, us continued for they quarter. in earlier than what XXXX, busy season, at in fourth our has quarter, XXXX, which XXXX to the more in look seemed I I respiratory in were the as first point, the To we altogether different to think it season for flu your than although be later in when me, usual XXXX. think flu about XXXX I not and intense the season flu going. your cases season, into question we started flu got is -- found once started excuse

earnings. significant season frankly the have think a busy not a season always have generally, busy impact or I on view not a that we flu really flu to tends

be to cases we cases have. profitable the Flu that and respiratory tend most not

not So back annual overall, look when I to. think we on results, tend we

a busy -- a impacted, site we impacted season moves although is season. flu will that a busy what season be or flu volumes needle way, think been particularly that QX have in significant there I in something non-busy by -- the flu acknowledge the are that

like the As that hospitals, think before, difficult I towards mentioned think I margin mainly necessarily for it return make to hurdles business acute the we've question that far from Things inpatient acute point continued outpatient. XXXX, directed goes, your margins. as there are pre-COVID significant structural to some surgical that the in expenses like in increase increase, experienced and basis the business profitable shift of mostly XXX we to procedural physician

continue the improving been the pre-COVID I'm that. think couple that way all improve, period, we'll not to But like next not we certain margins. of to about generally, get in our have you said, over business. not And sure that or I'm can during back margins -- I years, whether

on we've the to side. I point, think there your behavioral gotten

to continue grow we'll think those. I

as consolidated result, we over so will to margins of next couple I And the a think years. the back get pre-COVID of course

Operator

Our next question comes JPMorgan. from Benjamin with Rossi

Benjamin Rossi

a about bit premium coming paid pay, with million mentioned quarter-over-quarter you coming goal a in at in $XX Just exiting versus out And you of million Is manage XQ? usage the premium to opportunistic then more that your do previous about on leveling where pay flat $XX 'XX, premium volumes year see throughput acute for mattering this quarter. during year?

Steve Filton

those more during with the one I work the and that came as occurred reductions things in premium nurses, of jobs. more or of that is to preferring think flexibility was pay terms of temporary COVID traveling chose to further nurses the one that challenges

traveling full-time of to temporary work more. work and structural some those think and try there to has nurses more attract are been who there returned hospitals. do certainly that have our I nurses. and We'll in just are shift willing as But kind to nurses of And and wanting

comment a a we million So is than tag that don't but the at prepared from X of it for today. that Sure, significant we've made remarks really about I lower? whole think lower where bit that number that quarter to Might our see $XX tweak the we quarters. last driving be I premium able little in a savings realistically, run lot

Benjamin Rossi

here, follow-up. there. it's reciprocal on just a know and Great some early conversation but color tariffs then I proposed had And tariffs.

how pricing about of XXXX pricing spend within supply any your fixed the you have you're spend maybe and impact thinking supply curious your or potential for your supply buffers other where Just contracts? stands where

Steve Filton

Yes.

any comments the what rates countries, to really are about making tariffs of challenge on One tariffs the the of to out to going the tariffs what terribly about the our trying So impact sort is is figure be. are what going results be, of twofold. meaningful

increased quite bit The As in a a is which the just you in think, your are alluded news, weeks in pricing or while essentially fall contracts to you X the or sort of of know, great on really many good protection, of of that I so that costs that question the place. new supply our changed administration. contracts the are X they've contracts risk have of multiyear risk tariffs those the manufacturer

sort didn't changes before quantify think I the view. dynamics. in in to from It's my how really suggested, certainly able of provide we in these think supply this you tariffs. we'd a world of real on significant meaningful see to that way. tariffs more as on generally And that So expense any impact being that, I and our XXXX And that's for sense, our out entirely depending point that sort thing. retaliatory of and the have But plays possible

Operator

Fidel Stephens. comes with next Our from question Scott

Scott Fidel

payments that split is projection then the you BH from billion, net with around XXXX, the 'XX, just at looking between supplemental the change for split whether And there's if what can any just and that? similarly give just that? $X.XXX question, us for the split or First similar directional when the seem acute

Steve Filton

right Yes. front I mean, me, in of honestly, I Scott. it don't have

they're of no, current about split of the as their most before, more at XXXX think evenly think move between I split think assumption back I can you this in is when have I programs be continue sort level. much we've two the that of And I relatively XXXX. don't about but kind to the Again, segments, that. talked changes precise

Scott Fidel

just then your And like plan know bit I had I CMS about had the want were growth. looking this MA asked some A.J. at the to Got a Okay. the follow We actually just Looks revenue. increase week. up. it. insurance healthy in data

see of be probably seems that, I where to would a to that $XXX though. driver that not getting million, So

$XXX sort million? us walk that maybe us what's perspective, it MA if through, piece you Steve, just product But clearly, look a to that. building up walk of So is of could through a from the maybe like driver does just

Steve Filton

population and our MA So is patients. pretty between commercial split subscriber patients evenly

both of patients most MA MA growth think population, the and do year commercial is in patients. we I but have next the

the it's in attract -- But where plan to just to we're half, continue establish again, gain patients, as record markets a experience able cetera. small operates, the relatively we're et track more more a we So in plan. various the

the reflective So of the think, have. million, amount $XXX of is we that I new subscribers

Scott Fidel

Got If or could ask quick it. last question one I one.

balance the around for legal litigation. that Just sheet, on behavioral you accruals have accruals

of terms and Just any assumptions of year where on sort you there? the that ended of sort that any how of updates on in have sort evolved may

Steve Filton

Yes.

that of process of through suggest describe the and So had through those we I in as that thing. again, cases. I verdicts large for cases, pending filed cases of well when and I reached cases not cases, Obviously, earlier, not into an incurred sort They're taking can are and We third-party yet, cases we our or of people said of XX-K, cases, been those. appeal our in that through status account don't as appeal established reserves malpractice that actuary specific sort malpractice exercise, legal putting two cases, decided the a both on XXXX. et section goes the mean, that significant. they read going cetera, have have they're their as value all level

the in taken So all account that, I actuarial into think, has calculations. been

Operator

next Langston with Ryan from Our question Cowen. TD comes

Ryan Langston

performance the us Can guidance? on think, that facilities, just was specific at inform you job I trends quarter the or SWB the to on maybe geographies in some was related XXXX guess all, how time. BH, in quite update if strongest, the I if like And labor The does just behavioral fourth actually classes? like

Steve Filton

behavioral significant of during mean I really labor dynamic the the a has supply demand quarters been Yes. within experienced clearly the for now saying pressures from think number that we have that we improved I pandemic.

of performance. so And that that to of seeing you're really contributing sort combination strong think I a are things

productivity right improving one, top people been and care. patients number of providing has care right the think for the where we quality I to number for safely number of got patients

and the moderation all outside that you've labor, in sort those contributing and use wage inflation things, are of a noted. But and to performance seen we've in strong temporary and pay also efficiency productivity seen we've the premium a moderation of I think,

Ryan Langston

the the that is And it. the leverage kind a last and on than Like front-loaded sort potential trading of repo, shares market? of just maybe couple XXXX what's are the just where in the maybe there they on years? in are then of of Got kind piggybacking going have more for repos the and share been

Steve Filton

obviously, mean, changes I Yes. by day what's about when you the on that in markets, talk day. going

on a certainly of et cetera. be judgment about So trying a programmatic more our tend What kind plan. historically particularly exactly to time year, to look market share little to than think and market for make the a I ratable but timing. repurchases changes, our rather it's bit at view to really good I as consideration hard don't we say how ourselves is is the trajectory going would

probably have our be try confidence And own what think think and some back honestly, case you and the advantage in, and multiples. believe EBITDA, do if to we willing we and of what we're take the that's of time. I of business in will the invest a case What we I it's pretty business, the lot we will, prospects case been the And for are buying the now. think attractive is

I'm years, continue trajectory sort for to sure So I particular be year. But of the will commit been this for several an have any wouldn't as we repurchaser. active to past we

Operator

Jamie from question next Sachs. Our Goldman Perse with comes

Steve Filton

to interrupt, to be can going this but is last I our have Jamie, question.

another commitment this. have We after

Jamie Perse

payor terms of to very I strong? what cetera, activity midnight et are payors, particularly implementation, guess sustainability just just you the growth, on behavior in rule in rate authorization prior and denials, and of it's been seeing commercial

Steve Filton

Yes.

over the take second part really the question strong for years. first. talked your I'll last behavioral had we've mean now. about We've time some this of So I pricing several

of higher who of supply large I to of et consequence, and cetera. think care treated, in behavioral a many And in able payors function are a place space. subscribers to as payors, be find a negotiate to the the struggling really from supply, been our scarcity that's we've part rates beds of for their

a deal. in think, don't great more has I that, changed I et ton capacity, space, a that not particularly the inpatient cetera. know dynamic There's

think for behavioral remains I again, pricing environment So the strong.

know sort as payor I significant change. behavior, suggest of that a don't that would been we there's far As sort of

of it's behavior find We struggle I issue sort think us. challenging, and daily payor is broadly with a a day-to-day of with us. kind this a

see are appeals possible, and we'll amount It's ours. utilization management, remain have We've making devoted lax as more are a processes much and clean a of possible. focus payors that as huge claim as in becoming I to efficient a clean as think review their to of I as efficient been then our et of sure as don't significant denial and that sudden resources submissions unfortunately, cetera. all because And our

were dynamic in to doesn't the our So be it term. in but would change great near that's it something industry, to likely that to be if change seem

end us. and results. So the it forward after first operator, I to everybody thank of think our their that's going We'd look to have for for be to talking with quarter like participation. to everybody

Operator

gentlemen, conclude Ladies presentation. you. this and today's does Thank

disconnect, may and a You now have day. wonderful

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