EHC - Earnings call transcript Q1 2021 | Encompass Health Corporation

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Operator

Good morning, everyone, and welcome to Encompass Health’s First Quarter 2021 Earnings Conference Call. At this time, I would like to inform all participants that their lines will be in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer period. [Operator Instructions] Today’s conference call is being recorded.

If you have any objections, you may disconnect at this time. call Officer. Crissy the Chief Encompass turn Relations Investor now over Carlisle, to Health’s I’ll

Crissy Carlisle

Darby, operator, Hospice; good call. Anthony, Hospitals; you, President Financial Health’s Encompass the Thank Officer; and of today Chief and first and joining you call Corporate Health Secretary. General President, Doug Home quarter Executive Encompass Chief for Barb Executive Counsel Officer XXXX Coltharp, Mark Jacobsmeyer, and April earnings are With Patrick Officer; on morning, me and Tarr, everyone. Chief Thank Rehabilitation Inpatient

information, Before detail earnings a are we Harbor Safe Form earnings on the information already website release. of greater begin, if are you which SEC forth you of statements, supplemental in On related on available do the release, will set copy, not have encompasshealth.com. find X-K and page the X at quarter the the with last also our filed first Page supplemental the

to During strategic of the magnitude and uncertainties, those as its will statements, them. differ XX, XXXX value which December in quarter you XXXX the Form make from to many X-K, uncertainties, forward-looking call, ended on our impact Form are Form actual the results the March impact the the we and read stockholder well beyond year to and release the We COVID-XX ongoing discussed control. estimates XX, related and our when and materially for XX-Q encourage and company’s that Certain risk our ended including cause expectations are could projections, to earnings SEC relating filings, and as of like risk XX-K filed. for the and review are our business subject which

of are statements. to to undertake place as on estimates, reliance and based We information these are current which presented, projections, forward-looking do guidance update cautioned speak a the of only estimates duty and today. events not other forward-looking future You on not undue

discussion this certain non-GAAP and measures. on information call include financial Our supplemental will

the measures, with of the available of like on the the comparable information follow-up question For at everyone the question and at that would filed adhere and the end of remind to most part is available website. all and will of X-K Form our such I directly supplemental yesterday as the end to reconciliation we earnings release GAAP measure which a one everyone submit allow rule are question. SEC, to one to the to

questions, back to additional If have please over queue. put I’ll the With Mark. you to in that, call free yourself turn the feel

Mark Tarr

Crissy. adjusted up is Compared X% consolidated encouraging Good up is off everyone, first XX.X%. increased and is guidance. X.X%, full quarter we've And in an year EBITDA you, We're XXXX start to our XXXX. and adjusted up XXXX, thank morning, to consolidated the revenue of EPS

are was performance to and characterized quarter solid trends volume first Our revenue growth. EBITDA that contributing promising by

health. Our encouraged strong our UnitedHealthcare future strength service of we across start And contract lines. growth are is for segment. We're continued home IRF discharges our supported by all national seeing Medicare Advantage by attractive business in the development in to the also pipelines

be the Now business and take our the wonderful do. of to world. center despite we continue I'd all I the employees. they external partners us The And moving. how stories the to grateful incredible put moment the are of on I'm help their patient truly staff, to they've patients of patients at who compassion experience positive such the to impact in like noise and had for a of needs meet our in recognize respond awe

X% Let's to our adjusted turn our improve. Rehabilitation X.X%, Inpatient In revenues increased continue and now segment, segments. to operating grew net volumes EBITDA

XXXX generally And to we growth quarter. saw the in was Our above March. daily fourth discharge throughout return first census levels quarter average the

since volumes significantly growth XXXX, of quarter the impacted quarter second XXXX. COVID in by the For were expect second strong most discharge we report of to

caps to related rollout census in In hospitals fewer continued to many experiencing we addition, markets. of constraints the elective return vaccine, of to staffing the our see quarantines. procedures the have due of with We're beginning

believe are first. not conditions However, elderly our to with patients complex patients, we medical go choosing

the Our we add first discharge If have of look treated We growth fewer of the the these lower forward hospital improve for confidence our teams first year. And surgeries the tremendous we procedures orthopedic total full loss we in the numbers back been quarter do would show than our XXXX X.X%. this, patients the continue want extremity our I grows. patients replacement first the job return half in to approximately system our the quarter as patients joint elective back costs. also to and in to labor the healthcare will X,XXX discharges, X,XXX in managing our of XXXX. elective quarter for believe in safety did of of we acknowledge

use we XXXX. measure first metric of fourth compared X.XX of the to the our the For X.XX per was efficiency and as occupied in first employees quarter quarter of our quarter XXXX bed, to in a which X.XX XXXX,

with technology best-in-class demographic drive increased to aging to services clinical Our to we're continues investing for and demand combined continued that demand. The data our know-how operators. real-time and meet our a make us

rehabilitation planned in hospital XXXX, existing XXX add we beds Angelo, opened more We April, Worth, of beds six XX hospitals hospital our San Florida. opened hospitals. new And in North During Fort to the in and new added In open XXXX in Texas. Texas. existing over inpatient additional Tampa, first hospital to quarter we our our to we XX-bed XX-bed

new already is new expect more This and development we For hospitals, pipeline we we have at throughout growth XXXX. XXXX. related announcements least XXXX, strong plan to for XX three hospitals announced open and

Advantage efforts payers on with growth our continued Medicare dialogue also proposition. include value Our

and we evidence implementation development local continued and Advantage During solutions. the increasing maintaining are continued discharges focus also on XX%. post-acute with off of regional of our same-store paying first XXXX, quarter efforts market-by-market with MA that see our We're the directors to Medicare

and part optimize $X.X proposal. There piloting produce inside our falls, net to electronic rulemaking released ongoing Hospice EBITDA quality review reduce reduce prior efforts In for May to of to choice proposed our rehabilitation year rule fiscal reference for of We our or Home a data demonstration in better risk for care is goal XXXX. model of, regards It minor medical was our our on segment, regulatory patients its million and Leveraging update market the of no to CMS XX.X%. cost and X, of outcomes for total lower begin or the expect from patient falls IRFs our and as in prevention our discussion notice system, grew April rehabilitation hospitals. updates proposed consistent includes adjusted overall on The basket updates inpatient the it's by record facilities In Health technical of to and routine program X.X%. with changes, we guidance. a focuses care.

which benefited higher of visit XXXX QX points suspension continued the and margins XXX basis cost than lower Our from per were of sequestration.

growth. facility to limitations our access elective volume continue restrictions on While and limit procedures

that the home health pleased to sources added national referral our We Non-Medicare traditional the with XXXX, all-time to in combination the will The over we first us of the very regards be the about quarter. for of service the of quarter. positive along how line. X,XXX at organic new return our UnitedHealthcare new referral high have seniors due our also we depressed during XXXX return were exited growth market about with We're lot their have sources to the COVID skilled elective an in quarter remain new referral encouraged senior communities strong to from we nursing with and begin admissions the primarily March their a volumes we our to of saw referral recover to year. return contract confident very surgery in levels. census in opportunities back and historic as to beginning throughout former sources, living and the facilities levels leave the market begin added half We

seeing across resumption from revenue are and solid home to assets Home of and a health definitive home a acquisition nine have pipeline we locations five business XX states. agreement health opportunities. home recently acquire provider a This is Frontier hospice hospice activity development million a Hospice. $XX and health announced and We and Health with Additionally,

of Metalogix we greater with proven adherence year. second our further year the improvements planning regard visit balance recommendations care of this transaction the module. of in to to we we model in high care a the the progress we're adoption, over strong expect are ensure market to results Metalogix making the close the associated regards also We both Based of to the results. internal in use and expect it's and on pleased approach adjusting to operating and upon the levels have outcomes this Metalogix quality seen quarter our with to We're achieve efficiency, the

delivers incremental ensure adjustments model between these over order desired XXXX in making are We balance in the an the and efficiency fashion balance to of outcomes. the

improvement of episode three quarters rolled in per out. as approach We is new over expect visits to see each the sequential this next

times, out of And intact turn heard business. of as of say for you've proven XX strong. remainder to confident, and outlook Let's are year. The fundamentals resiliency our are the the the we the months have me our past many business

quarter earnings billion the Congress to to has $X sequestrations guidance suspension the been adjusted year. our net reflect $X.XX billion extend the end of consolidated to Our action the Guidance and $X.XX year adjusted results the $X.XX consolidated to full of of $X.XX. per share to recent first of increased includes through XXXX now billion following; operating by revenues $X.XX legislative Medicare EBITDA billion, and

The on to well including following this our with we and alternatives speculate continue just full report end of initial our Before best underway, separation and creation I disciplined or sale touch evaluate on of and I offering, forward process not able segment. then, rigorous Until on to the partial turn any for any earnings we update the hospice will through of or shareholders. additional say, for scenarios, of the rather at an we the to public review is provide other all company an dedicated transaction. are QX prepare status merger, spinoff, it than over make want July. or value review to are to for strategic our segment outcome home the the We've a to being path particular and health comments to process Doug, identifying

great look our that, start We've and XXXX turn pursue the Doug. a excellence. actively these and to over to in year, we focus can I'll we I to accomplish operational maintain we seeing beyond. forward had strategic it what on will While With alternatives,

Doug Coltharp

morning, both segments. and of everyone. pleased Mark; performance good with Thanks the We're of our

First X.X%, and increased net adjusted operating EPS XX% quarter consolidated EBITDA increased adjusted XX.X%. revenues consolidated grew

COVID-related the well limitations of The in end to five. primarily increasing XXXX, approximately to census segment today rehabilitation the discharge some of as X% and Volume patient from revenue caps. per free caps our inpatient isolations census on In by were to our primarily increased revenue of increase the in of assisted flow XX% impacted and a and down as census both continue quarantines. has the suspension quarter, that due higher our In of and and year-over-year resulted By impacted with our quarter high XX to reimbursement EBITDA in cash flow issues. acuity was increases hospitals vaccine the the experiencing rollout pricing. adjusted January cash in were rates addressing free by of X.X% elective hospitals We increased driven caps levels these hospitals with of procedures, seven us $XXX.X million. Growth in adjusted number mix of by sequestration. growth is generate

As of today, our of employees have vaccinated. ERP been XX% approximately

average experience we of in in of stay. prior the had are By of than us our continue length first a the rollout rapid capabilities lowering devices testing testing quarter, make higher all patient COVID helping years, vaccine progress the hospitals. to the patients’ acuity onsite end and of our While we

first compared as average stay of quarter, of March of the was average XXXX. evidenced first days. XXXX, to XX.X the the stay in a trending days, By length of of days our For length the by lower end our XX.X quarter quarter XX of average length stay was of

quarter first reserves. in of expense, net to revenue aging-based by bad an impacted increase primarily due was XXXX Our the operating in debt

plans. book advantage Medicare our certain has under experiencing are grown, patient amount and of write-offs As associated a of business we with higher copays deductibles

are two we In range employees, of a Non-episodic to as quarter a a achieved hospice the adjusted with longer, significant debt health level entering market of with February a With winter and contract more increased per servicing to a with procedures flat reflect well due with on shorter-term this to segment, out United us. up admissions increased We volume to XX.X%. to includes EBITDA February Texas in on revenue activity paid historically episodic XXXX, in saw despite due a responsibility. our service reassessing volume patients with the revenue range moved admissions of in-network growth bad pre-COVID. basis. as home total Oklahoma, procedure increased patients the of We primarily our began in and storm quarantined for states year-over-year. and and network guidance while elective to We unusual visit comorbidities was to X.X% care, our stay which of regard X.X% as and Recertifications X.X% on high revenue paid which X.X% national basis new essentially reminder density starts X% COVID recertifications opposed which Healthcare, around as to regard to an patient who currently of trend. were both of assumption volumes, resurgence X.X% this to of from collection X.X% increased our

Mark As of of senior spite XXXX. from see been for Combined episodic these year-over-year elective decline we basis. a admissions patients declined first contract shifting a these our our the for in been admissions, growth residing episodic visit continue SNFs, surgeries. facilities a admissions of Healthcare in accounted living mentioned, Had it per to from and referrals patients approximately X.X%. three And of X,XXX increase quarter in areas loss have would United approximately the not to X,XXX in that's

changes driver we with health X.XXX% XXXX, for capital the CPV with regard of leverage same-store continued of in end our down million times management per due net of growth. notice time the made full with In structure coupled their year-over-year home $XXX hospice the of XX% was we our of of the effective line being May cost compensation XXXX X% April. Our we in productivity structure, issued those March, quarter. staff. redemption notes With of our improved Within strong this notes completed senior visit over primary trend year-over-year admissions our at X.X to our redemption and was the the service

and are we'll in Our the investments financially we for for and continued the And our well capital lines growth. We strong support positioned that, cash structure questions. making flow remain free operationally open the well-balanced future. with

Operator

you. [Operator the Jefferies. Instructions] from first Thank comes of Our of line question Brian Tanquilut

Mark Tarr

Hello, Brian.

Brian Tanquilut

both of Congratulations guess my guys. I morning. question Hey good for you.

for like be raise, sequester think QX Medicare me the it I and it about to as So guidance extension. the seems you it raised the

in I guess, year. like assuming how about thinking of the are of It So half will Mark, you cadence until you. the bounce the about nothing Doug, that just pace just any recovery? of model improvement give us QX, Thank QX the still back sounds procedures for like, I sequentially. the I really quarter guess terms as then can the back you're help to to you the from think And us color

Mark Tarr

when. don't latter certainly the expect half just the in year terms back the number positive But of for March. your part half the certain year. year impact come starting address that I'll out both on elective and so an when very of having on be There of to have procedures it we is the point. as electives operating come have exactly that of to a And of are Mark of out amount of it's reason happen, momentum Brian, the be certain positive lot first noted a on happen, think to a we’ll of a will will of the the second that insight segments. back, or exactly markets, we We see amount a do do uncertainty event. We Well, we have of in second carry we've we

Doug Coltharp

And business an would attributable when year. in the three factors, the the assumption we sequestration right. was of we the of last that raise QX The suspension performance half said the was the two those that embedded performance of at guidance Brian, second exactly this you're initial our guidance then to would benefit quarters issued improve beginning and in year, improve solely and in Recall year. the of the for that

factored of amount continued improvement was some So already in.

second first As quarter certainly think to will changes patient during volumes. health that then which also prior to in you XXXX that year, related that through the last all we was and went about we of home just PTO easiest the the gave our also quarter SWB you saw us some at the quarter that month is in absorbed be because compensation to in so And severe comparison. into decline factor segments. quarter of And we year and the of most those was in consider the second things comparison, both reminder our that the making without million some $XX the the to extra was the business suspension employees sequestration hospice, benefit a

As think you I the point skewed which are would just in new out is we our to pre-opening about more open of quarters. that in wouldn't one you heavily think those QX, towards Normally, to three going that about but be QX, are slated XXXX. QX hospitals have expenses the and thing quarter first actually that

Brian Tanquilut

guys. Awesome. Thank you,

Operator

William comes next from Your Matt of Larew line of question the Blair.

Mark Tarr

morning, Matt. Good

Doug Coltharp

morning, Good Matt.

Matt Larew

completed thanks smaller of now morning, flow and health to a the for bunch questions. to the on about costs the cash side, the for rap deal, personnel with ask providers. M&A environment higher perhaps and taking reimbursement home your obviously Hey, good trip hospice gone, payment accelerated the you Wanted implications reversing just a

in tick terms inbound you're there the in is out what opportunities of interest Just been kind curious of balance seeing or is if a of maybe sort up there?

April Anthony

– beginning to the within significance come we home activity going bit as particularly M&A to those year. that I and that home see I identified, is underway health this the the on think and this last in side is year definitely overlap. acquisitions, more some of at market acquisitions of there density the sector year build us health I would opportunities health of segment balance of the is Matt, help think far to thought hospice be to our say good a us Most hospice continuing throughout with some what home little you anticipate pressures market this definitely scale for as opportunities Yes, April. recovery we're that pursue to that while and look

Matt Larew

XX trying to of Okay. – and date in June and the hospice Mark is strategic the of the the And want for just of the end for transition any to review. review. My has health I alluded is and business home end of the leadership would sort then new to transition understand the presumption CEO terms timing outcome review, of know the July the the think

trying gap there understand just period. what plan the leadership sort for that interim during of So and to that is

Mark Tarr

XX staff smooth a a well Yes, is that are we there. that, timing everything underway of I initiate smooth we’ll have management and with will terms core interim Matt, uncertain make bit terms on engaged we sure there Mark, search national transition but a is a in Clearly a operates this April in that. transition of third-party is Dallas. senior on will in a a timeframe, to to firm XX the the with whether have or day group it near-term collaboratively work of

Matt Larew

Okay. you. Thank

Operator

Credit of line Rice the Suisse. with from comes question next Your A.J.

A.J. Rice

April on obviously. to wishes Best endeavors, everybody. future Hey,

benefit. highlighted you're so rest help in the you the you've much contract growth fully as being that that player, on that is that I quarter? worth a huge has quickly quarters for way further maybe you know think there what non-episodic the I wonder, mean to a obviously – implemented show of area. wonder in on the a about got the quarter may United United helped health, comment you I you how in talk in it for – that when that, any Is get So full volume don't home I because the

April Anthony

to happy Yes, about that. talk we're

kind did begin got contract a mixed quarter. we a we of So the first February, in so that really bag in

into me March So that from continuing April. contract in in we excuse and had are to strong and see volumes those April

So like doubling increase of of relationship. from little lot coming we the whole sales even United a significant without feel admissions we've frankly seen more than a our push, monthly

relationship Medicare to populations we don't balance get rope I challenges, reimbursement those side think we're do to of of the United want to base. want our to we other there the on the detriment tight patient the carefully, serve rates until staffing kind over that bit of can going different pursue want Obviously, we we are that is some and find because effectively. walk of the a to what where

feel baked the be the quarter, And think, as we going that the is full United so at But opportunity trajectory can we so upward it'll I the see hard be staffing a to improve opportunities. into definitely from it those hopefully our be quarter biggest to run second will an when in numbers. balance QX fully of like second quarter’s

A.J. Rice

just follow-up. maybe And Okay. my

than know On it the net I the that warrants guess? market historically, of you times sort if is more looks some pandemic like I health’s X I where about there price, is times the guys tends the of said have home be said the tax announced home Frontier to peers benefit, pricing, acquisitions, price perspective or revenues. that coming it's of – assets, haven't out less for I health but some about it acquisition out little historically that know fulsome on where these a I wonder, you something you the little revenues. X.X acquisition is days a

Doug Coltharp

need look of I couple would say A.J., to Yes. things. you a at

business. all, looking number that by necessarily trailing you're rate COVID and the revenue not run of revenue impacted obviously of of was at representative First and is number a the

margin opportunity, EBITDA see see we opportunities Frontier markets. and substantial Western well. to improvement adding additive those the additional opportunities into be great scale as within to organic from density we growth to is come growth second The And

Mark Tarr

health our that's we going about great that excited hospice and to we’re A.J., to compliment in a be home great and thank asset, have acquisition segment. what is the a Frontier

A.J. Rice

lot. a Thanks Okay.

Operator

of comes of Your Fischbeck America. next from Bank of line Kevin the question

Kevin Fischbeck

thanks, great. Hello,

I sources they So and the might to reconcile volumes want here, pressured first one see you, some referral right. sources that. some about of question the one you'll is depress are think – I I yet comments being referral guess, of – and to of your rebuild seen your coming benefit guess volume now those that

mean, about of volume people is of going this those over or home. I versus – some of staying skipping home some So sites longer care, an their to nursing in

I So you grow, as your as volume the that more of they you might that same that will – are would I think pressure isn't at time? mean, and think business. be on core put net things return net-net, positive give take you saying still why a a that and those

April Anthony

good I you're some right, guys. are Well, absolutely think there

seeing our us So skilled snips admissions acute to care what's is those for patients down, component. from facilities being of that probably hospitals come example, admissions of are from nursing from discharged to that contributing bypassing part our patients

think is more there takes are for patient that recover both, that to but think there environment. that We we needs admitted think every that. has patients become SNF’s market in be some also SNF, as in we puts and opportunity that the will receptive time not admissions to to So realized

opportunities. in continuation as recover we'll those happen, both, recoveries division I also think think those our of just downstream own as we'll think facility seen we've we'll I admissions, but direct herb we'll types see those continue to higher So see I our see a see

level with that average going patient communities you're residing of may this – extent is elevate. the senior level average level of is acuity going herbs patients increase see in patient SNF the overall the to and kind to of increase same even to acuity health home even then some what to housing think the I increase, acuity

happens, presents sources sort an of really I for that new prior that we're net from opportunities both opportunity of so referral And our continuation recovery as seeing. these maintaining think the it all and

Kevin Fischbeck

pains Okay. as that I you’re willing am higher higher to have that's may that – permanent that function expect That's this of always a come growing and a down. is your as copay and of dynamic this would guess kind a bad is debt, issue, as alongside talking I then helpful. that or creating far collections And number you fast so collections more it's growing rapidly that growing and about

Doug Coltharp

a two it's So Kevin. of combination the

of not increased ability you're don't on also that the I to you've cost been some time have looking upfront but the as those of in simply a with they a many now will, the have which we process it the if changes the hospitals So patients do associated to more based that significant little recover factored an burden patients. Medicare lot bit I of is had is should appropriate that it's meet and the say MA will revising at it And admission. devote significant movement, pretty of rapid And easy It's procedures bad centralized although there you also to always collecting structural in MA, of plans and these. our got status about a will patients an historically it, understand in, advantage, is in that. our way responsibility debt with Medicare business but to component be service. office on some it, not in haven't was for larger noticeable through note when there've in. reports why that not that's that come in our there at fee certainly a to the growth on personnel to also obligation. And then prepare that within we of we're

Kevin Fischbeck

great. Thanks. Okay,

Operator

of Barclays. of the Steven from line comes question next Valiquette Your

Mark Tarr

Hello, Steven.

Steven Valiquette

Thanks Good morning, thanks. everybody. question. taking Hey, the for

I how the in you in so? in are of of XX, So remainder of seeing you've today, the inpatient on changes or days whether a environment and XXXX. [Technical were now, based what XXXX XX business Thanks. notable levels within drove first higher the the there results, couple of talked quarters in those the about any rehab acuity I'm acuity thinking some And that quarter Difficulty] the back XXXX rapidly versus curious you're what that strength around patient about half that you the mix were for guess given the seeing changing of just

Mark Tarr

to look weigh Jacobsmeyer we’ll Yes, on that. in Barb

Barb Jacobsmeyer

there – is really of XXXX. at saw similar so acuity component that seen a of end we've we Yes, the

COVID big And a patients component difference as going the a is again, elective I Doug a we will surgeries. impact piece as back our that. lower be have of of do will don't the But tend mentioned to impact a those to lower the is come number timing to to overall think larger going that's as know as have return an these earlier, make acuity, CMI. the that decreases patients but on patients acuity, those hospitals, just into that

Mark Tarr

we discharged as had patients in didn't in we XXXX. I orthopedic Steve, X,XXX over of quarter XXXX had have cases first that in the COVID we XXXX. X,XXX that mentioned, And

said, two happening. kind a Barb of as So combination things of

elective have in lower at orthopedic same you'll fewer coming the acuity back a COVID time, procedures patients have a acuity. have that that have You higher

So our we on return mix or acuity. index to overall would expect some case normalization

Steven Valiquette

That's Okay. perfect. Thanks.

Operator

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

Mark Tarr

Hello, Pito.

Doug Coltharp

Good Pito. morning,

Pito Chickering

know work conceptually, over getting morning. pleasure any my I the until strategic commentary you good Hey, July, aren't the April, Thanks it for review years. review? was asset you a to questions. And to taking standalone on be assets but your merge for or company, be think looking you market. with it would larger scale and strategic more There's health a have a also a home to beneficial enough with do

Doug Coltharp

table. is on scale the of of that the alternatives accommodate any the array are think currently I sufficient to

Pito Chickering

have during in room what there per for Okay. more the us going is to episode for can And how per mention throughout roll you the quantify decrease declines and visits quarter, that to through more out year. Can And inning for you that XXXX? episode how the are then the decrease decreased to the Metalogix XXXX? we in visits was much on

April Anthony

Yes. of a last may We completed going been deployment I the in to each still progress But with Pito, of to deploy have top that, with really branches during steady middle successfully how the on we're although our not think fairly deployment, tool. think priority things the COVID. about I that early. that it during seeing year will completed all period think the that. that of I we say we're

the realization quarter-over-quarter. XXXX. expect XXXX, begin episode see throughout per balance But sequential trends now within improvement the then. sort probably that and between I And early I will of would of visits the continuing that I parts see a into full we'll next think even trend continue You time this in think But to to our of year. improve

Pito Chickering

not if Can March? the And data surge in more, could how the Okay. COVID for you're in in volatile but February. home that I much. extremely squeeze admissions us know the you storms with quantify health anymore, I trended one then the first was so giving quarter Thanks and multi

April Anthony

as I March, in were we became had so as the non-Medicare the a March. relationship mentioned, strong particularly March that Yes, online admissions from very United strong in fully

non-Medicare United as in trajectory we it here And but so out unfolds how of you the displacement. about the on. can't the particularly were that think see it And came When only think feeling we quarter, the good the about about continue I the think encouraged you quarter, United, when additions. we'll second to think we're you about

were impact in You the from we XXX-ish that net – really to of had were those, a think because episodic. about month admissions about bringing

episodic admission. they And our ran so previously,

got doubling we're puts account, rate, have that, excited this although, seeing, take we're of also that as contracted and that. moved some takes with about to a into into you've So we've you

So episodic admissions impact you're per about a but we're that X,XXX X,XXX X,XXX non-episodic. episodic – having quarter, on quarter going be jump, a to month, our to a the our to by shift carrying going see admin

make our mind continuing So look admissions total COVID you we've total, that for quarter, at keep In we're seen just in highest the since to progress. as and numbers. the the

So direction. I recovery in the lot the encouraged We're care and a discharges, so things right of seeing. by encouraged moving hospital by acute what think we're we're

Mark Tarr

trends happy the both of volume very and of operating segments the our that we with carry trends upstream over that into QX. We're see will

turn So very see trends for around happy to these us.

Doug Coltharp

And is research. in the The it in not you impacting in those a volume quarter, Yes. new cold to on that will do quarter. throwing were second you want that to it's first don't impacts month, of into the the storms any the because on the the emissions water impacting recert I that, storm, effect growth, Without although that February lost admissions second remind winter linger due those. get

Pito Chickering

Doug. All right. Thanks

Operator

Matt of line comes Instructions] Borsch next Markets. the [Operator from question Capital Your BMO of

Mark Tarr

Hello, Matt.

Doug Coltharp

morning, Matt. Good

Matt Borsch

just you you're I And your you XX%. talk think I'm how the at over about of what the that, to morning. to the that. today that's you if rate you business could is that increase the Good where vaccination about can Maybe curious think course said going that get IRFs doing you think or affect year? not

Barb Jacobsmeyer

regular at they of out has about basis than receive staff the want XX% all survey vaccine, roll staff been our on a so Yes, in some vaccine others. are of to ultimately we XX% and saying that we markets slower our the are currently

we availability, our the as far of all now As have do our markets. in availability

has Chief continue a to But of number we job doing our rise. think I Officer the on see we'll employees our done on So Medical for vaccine. the education that value great –

to our to in So support we're going continue it markets. just

Doug Coltharp

of the seeing were dose the to of little reinstated, we're a that interest focused say two though we back with safety of that it's converting one you and dose as J&J took bit that, in both to even vaccines. getting vaccine regard the volume when on well of will the of a our some unfortunate vaccine. I the progress that J&J people making, we wind had were the over And sales lot news out regarding been

Matt Borsch

Well, fine. and I the had shot I'm J&J

or isn't are of challenge – last that some some there to If that So but that just a good just is there's one or SNFs mean, data All the sneak does, is point IRFs everything patients trend you for coming necessarily one that that does the I that what you. is could bypassing want? one, right. the create in I

Barb Jacobsmeyer

is want been that us to mainly has very on towards and a push historically, No, are been conversions tend it's but Advantage the great SNF actually to Medicare the patients, to a perspective. outcomes do these allowed so actual well, acute. they that show not short patients a of did of of who to regional go we those to home, in to time, we stroke to there us do good these – diagnoses patients who MA get from they but patients What skilled, the we cost have do go can getting have for a is, some of that has did allowed COVID – waivers other What's other well directors trend. many is what's low return of had types they period

of So value us outside it's reinforce that proposition other helped for diagnoses. the stroke actually diagnoses

Mark Tarr

of quality clearly post-acute types And various COVID I patients. terms there to the Matt, of the that, can for was in with able outcomes the the was did one the they and patients and things think of in cared the each. IRF that were the settings that the that be pandemic show clearly, of one in difference the in segment winners get

have IRFs so clinical of types patients they know-how of COVID So very I'm of we did our in what with because the proud in services health these higher the home treat our on to for resources terms the and caring patients. acuity

Matt Borsch

you. Thank stuff. Good

Operator

Your comes of next Capital RBC of question line from Morgan the Markets. Frank

Mark Tarr

Frank. Hello

Doug Coltharp

Good Frank. morning,

Frank Morgan

I hopped morning. Good on late.

asked. So been hopefully one this hasn't

Florida. an specifically their call, about particularly earnings called hospitals and out of expanding HCA’s they talked area post-acute in focus, continuum rehab in as Just

likelihood you talk the that general admission more lift as to those your in of a actually So for just second and And the back kind much about is coming Thanks. – When occurring. nicely of lag and of one a of thoughts just see what normal quarter, was volume the pickup? see and you number you a down you there that on the curious before time obviously lag that from question. then go you caps about

Barb Jacobsmeyer

Okay.

the first Florida wanting locally inside that's a value IRF of many majority HCA, markets because units the those In our their HCA their hospitals. thing increases In those good also of question can't We've a internal So unit. many many the actuality, the on it we to team are of and of their rehab. of awareness take regarding care on times, markets the inpatient them of add of obviously all units have do usually heard inpatients. in about

referral them So then our two hospitals, to delay, referral with those working when there's being the markets. lifted, a because sources week we're find the to to in on usually of used cap capacity place need go. constraints or about there's And a one patients a in our sources, for

takes know quick week it the So or bed recovery But after get about back, is two usually there's availability. letting a that. them pretty to

Mark Tarr

they the further Frank, one ventured not Just HCA, have into on historically comment, IRFs. freestanding

And of what be know, smaller. Barb see those HCA IRF said, you as volume tend most units. we regard so, for in as with And to is considerably to

supply of markets incremental source a in great have not overlap. which really we to they're So the

Frank Morgan

Okay. much. Thank you very

Operator

the from follow-up of Bank. Pito a of Chickering as question, next Your Deutsche line

Doug Coltharp

Pito. Welcome back,

Pito Chickering

active numbers those you throughout how admissions living missed new here referral quarter, from few we they on how think thousand the quantify the did and that changing have the ramped guys, the year? those quick sources. I'm how us you assisted referrals from pivot Hey the referral any and were on A away give during follow-up SNF can referrals, you about throughout quarter, curious those me. Kevin’s question, sources and should

April Anthony

I generally, creates bring reality to new your relationship the and that make in of The know for the a can prove source, top Yes, when that is have it referral head. you I data don't you impact patients. my the their a right off of it the beginning opportunity

value see as our that over as generally ramp And sources come we is on of their so, the there new a start in, services behalf. time quality they patient's to and the referral occurs see

me not we senior then living, impact sources we're up go of those going return the those of that admissions. for the the those we We that the from SNF the down. continue And housing our up. environment as from that so or to would let It's and that now, – And are senior within will and alternatives as right do, confidently well. are believe those SNF seeing pivoting kind referrals to are just on And our clear levels away particular living we expect capacity be businesses. are they

that So having recognizing bit on depressed we're time impact of and an them. that's just not We're a they're us. leaving a in

period. of just And in referrals, this so do we more we're effectively are potential and out seeking access knowing still those matter patients a residents them there. alternative those how It's

Pito Chickering

curious is think per still how these X%, or consistently the held, analyze during throughout we in here, levels. cost visits you Since follow-up X% wage despite XX, last cost continuing as there levels see the next more room maintain per cost, about costs visits those the pressure up I'm range, XX to increased one COVID go saw from productivity should then And will in quarter, guys these to at out Okay. the the we to restructuring be went you very months? these quarter for year, at third levels

April Anthony

some to very but Yes, we something have expect I is salary we real know recognize nurses of on. We and focused the lot for pressure That also laser think a cost in the nursing stay continue those particularly wage that is for in in that competition opportunity, still market. will discipline per productivity visit we we us markets. there's

salary form increases, the incentives. And whether going particularly in in hiring gains, think we'll so we'll discipline increases recognize be continue the retention or base productivity to a they are to nursing but I seek there see, that some that or salary probably also incentives of come

to So those, continued improvement give we're to make we're on productivity control sure of array up but either. we a not looking whole things going at

Operator

you. to Thank Crissy closing comments. now for the I’ll Carlisle call return

Crissy Carlisle

has me If please questions, additional Thank today’s joining at call. XXX-XXX-XXXX. again for call you anyone

Operator

Thank call. conference Health’s you. first That earnings does conclude the Encompass quarter XXXX

wonderful a day. have and lines your disconnect now may You

Encompass Health (EHC) 28 Apr 212021 Q1 Earnings call transcript