AMED - Earnings call transcript Q4 2017

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Operator

Greetings. And thank you for calling in for the Amedisys Fourth Quarter 2017 Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to of conference Finance. like Castille, to now Director Managing would turn over the David I Thank you.

begin. may You

David Castille

Thank you, X-K Investor quarter our operator, Call and slides on copy welcome to the the release, press the the December XXXX. site. supplemental of Web SEC of ended available our to related Amedisys on results the with year Relations fourth Form page and and XX, A filing discuss Investor Conference are

President from joining Senior Amedisys Dave Executive will Gerard, Speaking and on and Kusserow, Chief Also Chief Counsel Vice and Paul Officer. Chief today's Affairs; Government us David Ginn, Scott and call of Kemmerly, General and Officer; Chief be Pearce, Officer. Chris President Operating Financial Officer; are Compliance

started remind Private our our Reform like statements this involve the on factors update number on uncertainties, outcomes events to in Amedisys today. to with forward-looking made reflect on may The as and XX-K, risks detailed include from would risks than I and under Forms Safe of available to including securities statements everyone to the company's XX-Q information our such cause results call are materially Securities laws. the or forward-looking which call under statements assumes uncertainties Harbor differ statements other get obligation may applicable and These X-K. SEC These and this today constitute no to required conference subsequent company a actual filings, statements. provided call, of are Litigation Before may forward-looking These information that we Act. based protected

you, by comparable our now during call any I'll Kusserow. the will be GAAP required over today XX-Q Thank SEC to call turn and in G, Regulation In of mentioned most Paul a our XX-K, X-K. available non-GAAP to measures also and the Forms measures addition, reconciliation as

Paul Kusserow

more than welcome million our tremendous for than more XXX,XXX call. earnings treated X.X and segments. Amedisys. XXXX patients fourth visits Amedisys to year David was a We making Thanks the across quarter XXXX three

on pillars, excellent execute is focus very and a unwavering employees to to our employer We we strategic and great growth. and patients year. made special continue of on commitment our results, has A to progress XX,XXX of. into thanks distinction, all make this are translated to whose providing outstanding quarter our proud choice, operational their That efficiency in clinical homes care

million, per prior For to fourth $XXX.X per an adjusted we year. XX% to the $XX.X and basis, share on share EBITDA compared grew XX% $X.XX to quarter XX% revenue million earnings by to by

$X.XX Scott $XXX will million our guidance revenue to guidance of share. and $X.XX and guidance $X.XX XXXX $X.XX EPS to elaborate, our ability our million the have we to guidance deliver provide conviction XXXX. the management stability of comments, goes are XX% per have For face financial results in pleased we're grew Scott $XXX.X these $XX the by grew grew we share. the I'm of really with. EPS to by more on that million to and XX% but year to and brought that that show business EBITDA in our We of EBITDA of details issued billion. over our billion revenue rate will X% million to $XXX cuts, his per $X.XX in pleased performance has to provide in also billion, $X.X but outstanding that we we to team ability

Now focus. strategic areas let's within our of the four progress made review we've

four patient we our rated particular stars Of five working centers quality we XXXX star of stars at better. outcomes to agencies continue care the preview, clinical was or have scores, readmission First, home distinction; stars. X.X with clinical health XX rating of note, star In rates. XX% now our and our April improve rated care

stars in differentiated and nine uncompromising leader Our on us and an in improvement quality. as has resulted in is focus quarters truly sequential quality relentless straight industry of

expansion differentiated expect home across evidence outcomes. VVP provides of this to On $X the the is community further based VVP driving see payment bonus We We better front, message payments focus quality reward on risk level operate. quality of that that program. country providers and out remain sends in of right care the million patient supporters encourage This the that a Differential seven our across increase distinction approximately bonus providers we CMS to important. benefit. pilot for so of and the additional the to truly states roll clinical the health purchasing XXXX is value program where we strong

hospice the quality business, of in average seven hospice the of Amedisys our outperforming XXXX December shows measurement metrics release compare For six the national categories.

we're As of out February seven seven. of

these and pleased to and financial results in quality differentiate incentives expect scoring the leading more We are formalized. hope continue becomes fully performance on quality. Again we reporting hospice our based with to very CMS provide hospice, will providers industry

Moving onto choice. employer of

efforts I'm closure care health our XXX staff. retain employees. development hire development the with quarter XXXX, have home happy of to we For that our of to extremely in all business reorganization. our targets Florida XXXX hit and business ended have for adjusted discussed announce centers fourth we staffing We

to clinical retention. focus our impact better ability staff direct market increase will proud result, patients. for retaining a we XXXX. we clinical area achieved a drive our of Turnover specifically that year us the voluntary quarter to Anticipating a wide continue turnover report to to. our fourth in the As and We right for focus attest rates, key to now down which I'm believe are on places provide in company that growth has seeing be XX%. clinical will our of care goal on our also a readmission we labor productivity tighter

have operational we and seen rollout, productivity. and utilize based on clinical clinician clinician Since future XXXX, we staffing for rolled our each the tool, care helps us centers appropriate impressive discuss predict productivity In visit which our efficiency. trends. most scheduling. let's out staffing Now helps proactively optimize in improvements It growth to its needs

most improved LPN In fact and seen disciplines visits in with the impactful per approximately X%. change and RN or two our both improving week productivity for waited all staff significant has

delivered report same-store XX% Keep percent same-store hospice again ADC for by the our for the mission growth. admits another X% XX% to mind, year. high which all I speaks the and team. for and team growing growing hospice Finally, am truly that and performing this our quarter is year XX% by to in and quarter once happy growth fantastic of driving driven

development health For both of the team excluding in we division. quarter X% our admission into and volume our home Care Center of translated X% growth business growth investment Florida episodic same-store same-store episodic The made in closures.

quarter to aides integrations XXXX A care million Massachusetts. platform regulatory BD approximately quite beyond and In positioned acquisitions talent continue deal expand and looking total care in fourth year. develop closed very a in proven provided trajectory only of This hire we well received XX%, will grew we the XXXX, total this team XXXX. our and has in personal quarter. top care our coming in team nearly pending XXXX, care. In integrated and approval. We care XX,XXX over hours are X.X two themselves XX,XXX hours at personal signed and continue personal Tennessee of In adept are with clinical XXX,XXX and in hours with to XXXX eastern service to retain third confident will approximately care, clients growth and X,XXX compared personal per our home

to require dual approximately patients patient currently facilities. for us care of for are aligns XX% us business population these Looking eligible organizations. population managed as for an at population it Dual our patients includes and typically being more with mix, nursing ill XX% services. tighter These are eligibles eligibles chronically important health caring our

we to further future learnings from As arrangements, be success. will into our population move the risk this key

hospice we very developed which assets a accordingly remains allows results three-pronged show we hospice valuations. consistent. and fundamentals our are Overall, operators as to and On we but respectable our the have in M&A pricey, front, us to excellent strategy continue hospice. blended invest Hospice are strategy, like

we such do to As want more.

outs strategy hospice de small large carve and hospice acquisitions, tuck selective Our ins novos. includes and M&A hospice hospice

who hospice; market share. of health, the of environment; home approximately fragmentation benefit; desire reimbursement outstanding health, tuck-ins priority continued care we coordinated our In expanding is focused the driven where relative electing strong have care growth and are significant we Our assets hospice in hospice hospice stability of our and In personal space. players potential home continue our personal growth presence. number people deliver XX% of The to have the the and and between to we a on financial care, emphasis home will footprint on the by good of leverage The and XX geographies. value top health strategic hospice hospice have performance. to the on team focus the in further strong

key where in sponsors quality remain of remain active, we're very health, business however, for in locations. three pipeline and home financial involved. conversations scarce lines all remains entering high Assets The initiating XXXX particularly strong but valuations are of

Finally, our home is you setting add-on payment we the and the of impact reimbursement XXXX notably changes I'd rural XXXX, February markets. news reform Bipartisan the to included the which positive parameters great of basket from like serve the home passed on X.X% signed to Amedisys patients the extension and recent rural the statutory add-on Act health and health four-year in big and a X% following: budget XXXX including of update health. a approximately President reduces Budget rural a in for payment of the neutrality; market most Congress X, XXXX is On XXXX home the extension regulatory update; for approximately the four payment Maintaining X.X%. add-on years; for

upon payment in also the some XXXX, move until neutral prepare reform the has budget and a proposal the not payment one but to shift a was Congress a must will that mandating feel HHGM to these provided manage. mandated adjustments. Congress also parameters the mandated in new CMS. summer On we called that payments shift behavioral Congress's payment given be a reform. but it desire reform system changes relying for facing last payment neutral the system positive we not period, budget to XXXX that in XX-day are was and payment HHGM what time the with without reform is a industry be provisions, period especially to that truly XXXX payment implemented neutral. unidentified budget XX-day considering and from around can be to industry needed

the In provided for the until of addition, time reform. final our CMS and delay with XXXX dialogue to continue Congress payment the on design industry has

although the improvement the X.X% update projected come believe market of update Congress. also substantial X.X% or HHGM the considered basket statutory XXXX cuts have a over We of that would at previously by a reduction from is from cuts setting basket market

health is home In have the received greater fact, since agencies X.X% in XXXX. than update XXXX

I'll health payment and our our home the CMS around almost home redesign after payment be detailed to that, take There Finally, future a to uncertainty the dialogue much will we diligently continuing we review reimbursement, performance with quarter all now who clarity around health more of reform. Scott? and and work XXXX over still Scott, it turn done will us year of through and have spend rates. of Congress into a more for year. With financial is

Scott Ginn

our results Paul. report Thanks on end. quarter pleased for financial I'm the to and year

a diluted basis, on $X.XX quarter. million share loss in quarter We generated per had compared to XX% GAAP the or increase revenue $XX $XXX the a of we an net XXXX. for million During of

generated we per and diluted the revenue in share. year, For $X.XX $X.XX billion

these per into by one-time quarter. share value as Our deferred earnings items charge signed during to $XX $X.XX EPS a tax related a reductions, In few reform was to Of a of non-cash reduced result million in our of law the asset legislation these tax aggregate of December. $X.XX. impacted items

and on of amounts XX their that cents million by $X the be impacted quarter in for and our presentation year. disclosed. found full Additionally, can consolidations along Florida were with adjusting our previously impact items the the supplemental both $X.XX These charges other results for closures approximately for we and page

reimbursement cash adjusted well our flow For X%, EPS key metrics. this XX% of EBITDA expand all We we of of financial the the XX%, EBITDA basis, points a $XX of year in margin growth net on growth of these results, and face of delivered an basis produced growth XX%. four growth our Revenue million strong headwind. XXX free in growth

grew For increased follows: were inclusive an basis increased or EPS the on of results segment XXXX XX% acquisition revenue Personal compared million October is EBITDA or Care the closed XX% or the on million X. $X.XX fourth XX%. that of our adjusted quarter as which quarter $XX to and $X

our were to three for turning to quarter to saving, Before impactful results like There prior color segment adjusted additional add items our on were I'd in some to year. quarter. that consolidated the our results comparison

of and $X impact inclusive rate net the approximately for First, reimbursement changes was XXXX. XXXX the was million

health health expenses compensation was frequency. approximately more cost increase was $X severity million. high driven increased The insurance driven and claims workers by versus Increased compensation the Second, of workers in claimants. in by

Lastly, effective planned compensation were versus the expenses planned of wage million one the also wage and Two fourth impacted performance. comparison. additional our sequential in of impacted quarter factors and in year-over-year we $X increases workers the had increased increases August month almost third. these Health

self-insured, As is higher the of it the half we're to particularly in claims second typical year see in QX.

to experienced more fourth a we XXXX. third quarter However, in shift pronounced from

excludes includes compared driven our year both our episodic to home improvement In adjusted were by $XX quarter metric. turning up fourth reserve up Revenue increase quarter same-store were same-store were up certifications $XXX was up this admissions Same-store admissions and Florida prior foreclosures. health, growth performance. is total X% in This Now million which for volume was third episodic the was million segment same-store non-episodic X%; growth in revenue X%. X% consecutive and our admissions the volumes, and to highest year. of and admissions

prior reimbursement was planned rate prior XX%, million offset productivity $XX decreased wage $X.XX improvement over was point year. from clinician increases prior year. compensation increases the visit of as The recertification Medicare health margin increases million These a compensation in prior to compared the than $X in and workers slightly up basis saw to EBITDA raising of G&A Segment and in quarter. per less Cost Our increase over helped and the impact year, XXX million workers health year. impacting previously gross $X cost health reduction expense mentioned, million fourth the approximately in segment items quarter $X and home impacted expenses.

[voice] margin increased approximately G&A to is Our costs gross business also $X by changes planned added million. $X reduced compensation million compared and [ph] additional year. to health investment Sequentially reimbursement in development and revenue prior while our workers

a as five is percentage which revenue Our was trailing the the quarter, G&A of for the health lowest for XX.X% home quarters.

segment generate segment. This Now strong hospice our expansion. continue turning margin and to to growth

cost health from an G&A points and increase workers EBITDA expanded The development staff in growth. and workers offset XXX reimbursement of For additional the was X% million basis daily by Same-store increase XX%. approximately X administrative X% up and fourth growth. in to million hospice business segments $XX up offset compensation $XX over compensation million addition an by prior increases was of drive versus per was despite admissions to year and $XXX.XX million was of margin in and expenses support employees who was to XX% was increase our increases XX% revenue service benefit Net $XX $X Segment day and X% average year. continued segment. an day up of quarter staff census in prior segment expense. and The same-store up segment by million or investments commissions revenue Sequentially, up and of EBITDA revenue per the growth in were BD health the $XX.XX. support our

in these segment million Our quarter XXX,XXX staff in from year XX% acquisitions representing approximately were fourth in Care generated are and million not that city prior possibly in billable revenue Personal results of our inner contributed $X hours. revenue, the over with growth numbers. home Including $XX

in acquisitions $X million the added slightly period. these Additionally G&A cost over during

of acquisition of we in far. the to the the segment, we've and first with pace made indicated year we're growth infrastructure progress have rapid in because allow previously platforms pleased the the of thus future are Care spending the As half investing Personal

total G&A administrative XX.X% to million total expense. $XXX of an was adjusted revenue. and or our On Turning general basis

the of a percentage year. million this million to will basis G&A workers in approximately a $X increased drivers revenue. but relatively related of were prior as $X increase remain As sequentially, health intercity alluded generated cash we G&A anticipated segment. to revenues to Sequentially relate compared full hospice and addition and our of in the XXX too year. million percentage cash year. quarter lay acquisition operations million down call, G&A remainder increase increase, increases and $XX we of both million. home Significant for as a $XX plan for Total the $X million health will From compensation was wage flat in the expenditures for quarter expenses the $XXX were resources the from the flows third we the points $X of and BD million capital perspective, flow quarter the quarter for Total and the with

and compared for setting process days. items DSO days increase two May outstanding our December sales days X.X was in At and to balance providing debt of in Our Tenet payment to great ownership XXXX, of acquisition is cash $XX leverage these Florida be million facilities. the an X.X of compared Day existing X.X XX on the is zero. $X approximately increased December at without $XXX under year prior sequentially. we change to balance million days line available sequentially of added at available $XXX hold which million cash relate prior shape sheet were the revolving another year. The of for got to XX, million slightly days net net ratio credit of a credit days delays up of X.X ZPIC XXXX, X.X Adjusting XX, and our liquidity for total regulatory continues

for is Our priority towards with and hospice for tuck-ins. personal a acquisitions deploying capital preference care

to our guidance. annual now Turning

$X.XX revenues million is be are while EBITDA million. For of fiscal to $XXX dollars, and in for net the guidance billion range year expected XXXX, between billion XXXX $X.X $XXX and

through XX range expect share outlined to factors XXXX of in the of slides. impacting be our $X.XX on supplemental XX There $X.XX. XXXX key are several to Finally, per earnings guidelines Slide is

we basis for assumption There to Congressional approximately points health of second reimbursement In our services the effective half hospice, the personal X% previous our beginning our effective [rely down] is care is X%, result segment. of XX will year. estimate the of the X, X% be reimbursement compared home that Also be planned a wage a in now as is pricing was XXXX. guidance for up of estimate in of to provided at increases to no payments, the reinstitution [ph] First, change on XXX. October included which the cut

for anticipating in benefit a expenses to our increase we're X% Additionally, X% XXXX.

last effective passed we and XXXX. Our operating year. cash between our be net XX% of approximately tax estimate as rate will percent for our utilize XXXX X% as carryforwards is late We a fully tax loss result assumption XX% tax rate reform in

We revenue accounts. doubtful will retrospectively for revenue other will to from our inclusive effective XXXX. earnings. margin gross net service slides new and relate decreases This a each will guidance change service a January with X, or Slide net impact adopt These previously in recognized resulting a from provision no XX for with provision on standard change in be now accounting EBITDA offset contracts XXXX is of for doubtful Amounts accounting retrospective new in changes and customers revenue detailed resulting as of included this is revenue, supplemental standard. in accounts

of guidance count a line XX.XX questions. diluted our million fully please Finally, assumes approximately for this prepared will remarks. share open share. the This conclude Operator,

Operator

Thank you.

with proceed the We your Matt Instructions] a question-and-answer be line with Our first Please will session. conducting Larew question comes [Operator now from question. William Blair. of

Matt Larew

Thanks questions. Good Hi. taking morning. for my

on on centers First, -- side. home is something to in the XXXX ask slide which in underperforming I the again the wanted focus deck care about -- health

XX first that versus in plan of us and understand that help wondering, kind of you bucket what quarter today you centers provided to care XXXX? drag now and if that is maybe in centers ago what months underperforming attack Just care size those the can

Paul Kusserow

turn how I'm it are turn what He to to are is to on Chris. going doing our about can over you over -- I'm to it Hi, going going this to you talk Matt? efforts Sure. Paul. there.

Chris Gerard

Its Sure. Hey Chris. Matt.

meeting there did at with set care a were looked we measured we setting that notice that not we had we some QX throughout expectations XXXX and priorities we our for As to benchmarks our internal performance them against. regards subset centers last of year, of out that

expectations centers are in care about roughly kind those in that of our below coming benchmarks. XX% have of We our

those we've developed discussions issues -- should focus what around diagnosing looking in scorecard, a done heightened of looking So to those centers getting put care we've and kind to really is, having they the monthly back into just move weekly these on be. where and and

bandwidth it's So bandwidth do do the to it's didn't us we an really have year. this really just something We But year. it that some capture have last to to opportunity the for opportunity.

the opportunity in quantifying about to underperformed million these EBITDA. far tune As centers $X.X care terms QX in of of as the

get seen we've an us as opportunity and out [indiscernible]. to for that go So,

Matt Larew

of Thanks, That's a a about And as Chris. visits in just X% homecare talked Okay. home in on call base. follow-up, third week terms per helpful. quarter then, the increase from you clinicians

throughout how you're into that XXXX wondering here. how providing the might Just and that you your that first for have expect trend factored not guidance to time

Paul Kusserow

Yes, sure.

opportunity our visits up So ways, A of little further a proficient actually productivity aggressive as X% more XXXX. we home up still that we two home our and getting two paraprofessional bit were our as couple using one, see some experience a base. of of and increasing utilization care productivity a can familiar those had LPN able good function have visits last more -- is throughout clinician well little year it move clinician being what capture per factor PTA in to really our week. we is to that I with bring a

in longer -- manner. efficient are we on are that what be the to in time able asking we your how productive system, that As number XXXX? an typically you're you're utilizing the more growth Or for you're is, confident

Matt Larew

gains? productivity of piece with a is incremental on gains based we sort Right. are business of it the momentum the versus seeing from That's

Paul Kusserow

the we're doing front. well Yes. Well, productivity clearly on

we from sales reflected hired delivered some we people cost BD of to over we've clearly folks million what we're what $X this are starting quarter. and which to the as that particularly XXX the hiring see the -- as gains market we've drive beyond -- have clearly that in the think is incremental in I we we're --

in projection confident of out ability going been the part So and Chris to our a hit job X% our doing is. what his team that's have nice we're there.

of And trajectory about our so to Chris any? terms our rate. ability we're that on in averaging feeling growth good

Chris Gerard

I We XXXX. what reps have we'd good the -- foundation has are that into in in number that data mean with carried historical expect that. No. in shows I ramps we to been nicely that of line be a think XXXX set ramping in there

So hitting foundation we're the moving we have have X% is -- a that clinician so we capacity place that's good confidence in the and the in the right direction.

Matt Larew

guys. I'll in jump Thanks Okay. back queue.

Paul Kusserow

it. Appreciate Matt. Thanks

Operator

Our Ellich next Craig-Hallum. question comes your from with the line proceed with Please of Kevin question.

Paul Kusserow

Hey Kevin.

Unidentified Analyst

Kevin is morning. Good This Thanks. [indiscernible] for today.

Paul Kusserow

Hi, [indiscernible].

Unidentified Analyst

Paul morning. wanted the come to I priority to Good back M&A discussion.

of wanting I that profile call third think side. and take might some to the it related personal your efficiencies or standpoint is on assets home home aggressively? hospice versus articulated How of there Whether potentially that health factors much your being I base pursue clearly of home of it's from sort hospice, guess care of care regulatory, be them. pricing see you you health operational more specifically foot it then more is, scarcity whether the among before priorities home other being that of or

Paul Kusserow

Yes.

a that's question. So great

it. appreciate So

I really well, clean. our now team hospice think running M&A had we've an really perspective, from

same-store Just results arrived. this and fundamentally see growing have the the since you quite a on hitting there incredible. business, I've done fundamentals They the basis are

three over years So ago.

they believe believe Chris more. humming, can on is So team believes this I cooking can gas on more, that take job. great take doing they I with a

fourth and or the fifth largest like, hospice we out believe one also so we're there. We

continue can we and way. So drive on business think to that add we

-- other the now time based at what for it. a Demographics balanced regulatory good. The They're we to look good and hospice. is, thing have know is our three good. seems ready reasons important businesses The portfolio us growth in want got for we a is are of part why and quite on really to belief portfolio it's a good we're the is drive environment to to and more team. We've in

is quality from to Our good. side ability the deliver very

starting help. some this about home from home base would In something be their doing throw to need good get reorganized. in created they're very think them of to on grow feeling an early nice personal a while in We lot a great the for we're particularly I perspective. We is revenue that We've groove see things job care really brought overlap difficult. further We've So a But, doing integration home markets. change. to in that. a want on that care we to let

strategy the our private issue are is equity is terms these in the -- got the particularly pricing of folks we're So pretty is that trading that when you've these in is at out multiples markets seeing difficult involved.

-- be the to want understand we the So we of realities marketplace.

We also available acquisitions. you sheet have as know to new some on balance take a tremendously

sure So trying we're we excited. to We're make and invested that excited be strong terms about can that sensitive capital. we're but to pricing generate fundamentals in of on return

We've to we find hospice. we've the really like three-pronged in folks know activated market we have some smaller particularly asset our in we and a where good approach looking geographies got out health. we're home -- So overlapping in

to there de assets most which -- we're the novos about. are now, are that is also assets way to starting looking other some larger are that know out constantly there out start. do We And good of then, at that people a

Unidentified Analyst

sense. makes That

answered of one of kind there. my follow potential You ups

a one So I'll actually ask different then.

the On for fiscal improvement base side home you your on your million. operational care home target XX with the efficiency XXXX delivered target

to can there lemon XX? that you're you number of characterized additional efficiencies, you set will we if a that put juice home the -- layer you think level use. of is that you've toward I've about a Without productivity subsequent with thinking you I can is think around putting goalposts as of more lot I care and of versions being of there a the heard turn a work phrase home Is in base. beyond next the the

Paul Kusserow

to be terms the with engine to going hot. though making able been becoming answer increasingly what's also that labor too that week running in honest sensitive in I'm get too market feel running Chris two extra hot you about tighter sure that The their Really very visits per Yes. our -- thing let happy engines to or we're don't an we're very, that. productivity. we've of clinicians is that one

So that sure benefits a we that health. [Tiani] we an Chris equilibrium want that as forward [ph] can home well runs who we and move care judiciously real to home at and make there is expert home there's the an there's opportunity. base And believe

feel base. home but with start expect to So seeing there. we've they started I the care We very way comfortable of people do some We're in to doesn't occurring -- a we're productivity just happy we in pull I is going more it see very I can these mean levers. meaningful X.X don't that are Chris? know. I to to also out home drive think we door. what that want

Chris Gerard

Yes.

said utilize I at mix our What well. and looking think we're it markets where looking we're at sense, we some of is, paraprofessionals as opportunity the clinician I again to see where now he it nurses that -- makes got we capacity as admissions service. [indiscernible] were When freeze here recertifications level up thought first that first for and I discharges got I our of discharge underutilizing here visits. I registered that and when in the mentioned

very base the to Again efficient. meant is opportunity So make to we care do home care see centers home that.

mirror at of a every day. centers think that that in better think it portion the care I using it got that a We've rearview our still we're it. of I year about in getting terms only we're implemented. final

this to be I able think we'll throughout year. unlock

to out as efficiencies should that productivity get to of as to move we system. continue other well anticipate better some this we able be throughout clinician So year the

Unidentified Analyst

color. the for Thanks Excellent.

Paul Kusserow

it. Appreciate [indiscernible]. Thanks,

Operator

your Our line W. next from with question. Mayo Whit comes question Robert proceed Baird. of with Please the

Paul Kusserow

Hey, Whit.

Whit Mayo

way Hey. Thanks could your share you segment guys. by any guidance. EBITDA the within there Is

Scott Ginn

looking kind been look at I really perspective. down that through it BD we've down given broken of top -- as really holistically pieces impact. that by haven't kind segment I kind think mean rates of well perspectives growth think just -- can admission of and and on as by line we at -- of the haven't then and focused we've the of kind We I -- you

only and items [ph] it's health be stuck think performance just for Florida of Those X think about it how full of hospice it's because XXXX, year segments. saw in around that about to We're in specific move talking health million, million probably are that $X deteriorating if about positive Those going forward around full by million run are the be market as runs we a X we it'll $X really pieces a around. that talking I to probably [EBIT -- net X, we primarily specific that about up can be million haven't that to rate, in you If we've because X] segment We're talked full that improvement $X year XXXX segment. those pick about guidance. million around that rate. is $X eventually home home to $X bigger about about so the million two to was across X X negative, half

Whit Mayo

Baby steps, there. we'll you get

Scott Ginn

Yes. But, This where big be is right to step. we're XXXX now. have a it's we so,

Paul Kusserow

We this done haven't since XXXX.

we're getting in back So those muscles shape.

Whit Mayo

you a pretty the anything thinking is few level can seen just in the turnover in and at is employee in tracking with Paul Are level where And the you're the organization us? just years. clinician satisfaction and understand. point so share at totally the there you just dramatic the noteworthy changes you've BD that and about back stepping I improvement if that past

Paul Kusserow

Sure. We track employee engagement.

we're -- as this people. believe nothing we but -- nothing company So I a say we're always

seriously take have and deal we as we very and so we with And employees. XXXXX our --

people We have are who after. very very, sought

the left. who's us who's this all for the basis. on reasons track Understanding weekly door we people a so We in why leave. And review coming

building bunch why on research are a it. just know we We've of leave. We done people primary

actually some of correct were that away. driving people things steps are to we the taking So

is them of orientation. One

on-boarding, better. is in people need we bring to one other The

balance people is is which sure making frankly one when balance -- work are just overload don't used that we particularly to other it. The they getting

So it. can are huge number get putting over on by we of that that that focusing any we kind mine. and we're what think ambition is we I in trying is that the But we obstacles know turnover do the remove if can now making really here. sure unnecessary. They're we things we'll in I I do people's are way our -- that gagging engaged it think we're folks a to low don't place. We the if put do -- this teens into teens know of believe obviously all the

Whit Mayo

to are you've That's over first in understand field your roughly last but different? maybe to research all that considerably with the factors -- impacting help going or that any board, rate have on in me helpful. quarter, the the now I'm the taxes of And other just of two is the XX% know for just years any the the don't full can curious I'm the reason dynamics QX, you I slide reported level Scott, some be trends whole and of EBITDA sector year of there Thanks. more one sort just payroll perspective. your would guide you And

Paul Kusserow

Sure.

him take to want the last to two. You

Scott Ginn

Yes.

me you page with at, our talk come we included look let view back kind first, of for that on our XX of XXXX. and of to look this what But, deck, I we've and on if Chris XXXX and Let tag will EBITDA piece. seasonality like

that that I of we're into anything and particular forecast don't kind see what in answer trend the seeing we will So change that's perspective as XXXX. that

see a gate. can higher yes, coming we we one as the major QX, centers. years well. month lower rebuilds a shorter it then prior taxes, had see perhaps weather in you a which hospice February out -- have But, little of revenue and in we payroll of You did And

you that can fair. we've Look see out. and put way So trends that I it think at the that's from that

Paul Kusserow

Chris?

Chris Gerard

Yes.

our behind from way system. two One, seeing by clinicians of it's think productivity increased the also on had the we chop care use So the of we really us things. research, and of just base And increased combination were getting better a the capacity we're home the further therefore, clinicians. of kind home

transition we noticed saw through home base, also of going home We care significantly. rate that the pretty dip research our

we missing we were into patients prematurely a that we all when discharging goals and So little being saw we opportunity. some started were without looking met that

it to a where case now on from see Don't our enhanced back and now. we grow kind and home much our of it had come saw think anticipate We a it home of put for patients. I further appropriate implementation base is about really little what's it care to as pre we just bit spotlight that we levels. really So conferences starting discussions getting having

range, that got appropriate base. now think we home I rolled to able but were out we've -- care get in think we it's kind back I were to it's home before just of we where

Paul Kusserow

we're lot Whit rates, are putting a to some on and enable time especially important it be We -- focus move that of believe we focus to going taking will as And on which increasingly which we are think to we into arrangements. are -- that. us rehospitalization risk

to increasingly on we we we -- when to patient really so So is completely what make that strive is sure that's case. the stable sure the see focused want we are and make

ACH we So also that's think I as to grades. continue focus on

probably I research you'll stable the see that or [indiscernible]. think remains maybe

Whit Mayo

helpful Very Yes. thanks.

Paul Kusserow

Whit. Thanks

Operator

comes of question with next your Our the question. Jefferies. Brian Please from line with proceed Tanquilut

Jason Plagman

Hey guys. for Brian. Jason chiming in It's

compliment First of to the question. Nashville all, references on and to But the enjoyed on really I whole want music song. you to your and every

in from But under a could lot impression -- of confusion in little a are some the that I there that referred bit there's in A to people of to it the day. as market XXXX. in are think length XX length you day or episode a think the HHGM XX change think and service. of change some I I So a about still episode changes be

in expecting the table? So no longer a from XX can XX or days you XXXX change to you is on clarify, episode are that in length

Paul Kusserow

want Kemmerly sure here, being GC. make Lovin government And that. our who Spoonful, as you well all to we Cats heard so is area the or yes, Dave as we runs like Nashville

anyway turn over it So I'll to Dave.

Dave Kemmerly

step that for very Congress based see period all episode. the a entire our a continual XX-day confident we'll conversations payment a mean and was not I implement congressional the CMS Jason. Yes, to goes resolution on XX-day bottom-line we're [indiscernible] and and

I'll So unit used those confusion the done service. XX-day of language seeing of in on. homework the conversations out there lot had and a take was But was resolution we've

the So of confident we're very payment still period.

you but want get confident there. payment Scott we're I Now is if confident any a what to an can to period further versus let very still you about -- episode, detail, talk

Jason Plagman

your up would change that change it speed but conceivably cash collection episodes? period, the So, wouldn't

Dave Kemmerly

to In to always, theory as around theory devil's get there. benefit the be in happen. that's that could an what added We've details would got in but

Jason Plagman

That's Thanks. Okay. helpful.

Dave Kemmerly

we'll process billing. perspective around less to staying being with billing are issues the any processes, XX-day with commissions patient, will a for Some impactful around around about more a be but our complexities win and deal so the concerned we other us episode from and

Jason Plagman

Thanks embedded a And clarification. Okay. for couple guidance. on assumptions that and then, the

benefits the improvement X% what of in increase you is saw you that's in QX and your XXXX? assume assumption in any second the comp workers kind what standard, in So trends that in X% or the baked your for from any guidance to XXXX in half insurance saw of changes experience does health in

Scott Ginn

Well, Look break people, We're that. still aggressive the these certainly cost X%. is related. was XXXX guidance XXXX people $XXX what spend million X% and our had we not up a over in XXXX that's that our happened lot in was for Overall, late on influencing it XXXX. to -- on into, something tips pay QX is of of year. a We as

try no down there's and will But, always that workers to take we're expect we on what to So and and comp focused down. would happen. we health drive meaningful

we're hope So building we'll can how kind number that drive up see we to down. we of where exited but

Paul Kusserow

folks Yes. to too a that. things To this hard our work we pop be in We have like big run clear do did. initiative going is -- And can't be of surprises up to who this. these they

is look digging we've interesting expectation again really lot we have are for, -- going but, happen a got they -- to next our of solutions, are we this in year. won't So

Jason Plagman

of outlook XXXX, consistent run G&A pretty for know recent rate corporate the the don't to quarter And kind commented $XX have something expect But, overhead. million, corporate similar then, we in you per been for should in million the that. I has on $XX

Scott Ginn

Yes.

I fair. think that's

think I I'm through what to that. think giving on trying we're that

increases forth to from remain We expect investments of -- anything we're expect put number. around where in, given so than we've other exiting and to but that impact done the kind what back raise

now. to look grow. now capacity pretty we're expand capacity we and that think grow a level our have we reported as in right our think We numbers we good we right So to

Jason Plagman

from That's Thanks me. Okay. it guys.

Paul Kusserow

Thanks Jason.

Operator

question from next Joanna proceed with of Gajuk your America. comes the of line questions. from Please Our Bank

Joanna Gajuk

here. for the much taking question afternoon. Thanks Hi, good so

So, performance. the in ask to about and guidance, I volume of I it to quarter relates terms the guess want as the

that also So, Medicare the X%, up the closures actually in episodic guess same-store admission and X% and below, so which admission, growth. your seems I like you still QX I that was of it had expected guess guidance for the was that sort down

shortfall So, comparable you of in that the were organic episodic X% gives XXXX? XXXX the can in the of you in flash you what in the out, guess, number I -- assume I terms can and confident the terms get for what drivers growth admission

Chris Gerard

Yes. Hey, this give on is Chris. some that. I'll you color

quarter-over-quarter, additional did in little our episodic that throughout -- -- of our sequentially the a at XXXX. right of to reps Medicare the I were into at the moving needle although started is of at did these come to quarter the we QX, to continuing in ended the end -- where reps in bit look quarter we we shy to X% The number QX direction. to if add it encouraging carry we've expectation where low target So, but for not signs growth. grow our although The

there into carrying ramp holding So, what on have the momentum doing. QX right in terms -- we reps place history in they directionally we've the how they and the got are out and they're the typically we this the right year, we've have of got line of

to little the for our level we've a things guidance X% good done confidence that get getting where So of there. have I in a that's to right XXXX,

and should execute. out we go Now

Scott Ginn

real to around numbers going same-store everybody with just earnings export just think is the on deck. sure quick to page call through I Joanna with I in to our make reporting there And same sure, is and this. the make run

flat Medicare our were negative X.X%, about really basically so same-store basically So admissions for excluding foreclosures, QX the flat.

around admissions were is bit little research includes same-store X% number. saw right X%, volume same page sure total admission just and a admits over which around QX episodic make to Our and everyone on total roughly X% the that X.X% with that episodic we right for

Joanna Gajuk

Great.

you rate So for XXXX just well, to Medicare follow up, we so grow in essentially? terms outlook the admission expected those as for of

Paul Kusserow

yes. correct, That's

Joanna Gajuk

to number, also because X%, episodic what you growth? get that have To do assume for non-Medicare in the

Paul Kusserow

so total The as includes business episodic Medicare X% admission non-Medicare business. the episodic, is well that growth, as

Scott Ginn

flattish volume. -- about we're X.X% QX which think Medicare, looking our you we if that will and the move were total number, biggest admit about overall move that's within to at But, base

number impact to that certainly will moving X%. year greater get So total we're have that and in the for the to growth

those that we So and are we certainly signaling to are needing going that grow number.

Joanna Gajuk

XXXX. the volumes the I the trying And flows it business. home and to the because what's guess -- Great. would for I That's down the piece so still what embedded was way, if still that's it, relate in another of guidance, biggest how rates ask health get trying what's the margins I in the I segments, Medicare given your to may so I a or through maybe question to guess on somebody outlook was ask to

like that's could a at guess pretty they I assuming I XXXX headwind you way is but then XXXX, look it. but guidance margins, when be for add are is coding what adjustments no it seem that have to guess, those stand for rates added adjustment, when nice now for major you So, the we quick there given or

for margins the segment no and it, that the surprises the X% look be there case? the call if health in So, are if are like rack up the will rates would what home

Scott Ginn

see if we XXXX, XXXX. of that. haven't business. probably around our We performed and the how at of look happens we've phase as I we've exited you think ended from done into in looking if what wait But, you mean around, almost, We'll what our book really started

certainly to the admission some the and around that looking quite perspective be manage to number is X% then, close we basis certainly expand from $X we'd through and like XX to you we for per we're a think mix at from terms around we're in in margin, million cut are a at which seen margins. that's come And opportunity about grow can the talked but productivity margin we've to increases, the keep things segment, control. of early about what on visit cost we which looking rate getting past, still point We reduction, able back have XXXX

Joanna Gajuk

Thank you. I'll hop back to the queue.

Paul Kusserow

thanks. Great,

Operator

Our Stephens. of comes with proceed next your Dana question Hambly questions. the Please from from line

Paul Kusserow

Dana. Hi

Dana Hambly

and you what's Hey those degree of the I Chris, was the mentioned early XX% it of rectifying issues? issues I thanks was for those benchmarks. care difficulty fairly me centers centers think in common care are about, in just call the across squeezing and curious, below being

Chris Gerard

Dana. Hi, Yes.

market, tight And care resources the much, we a a the off its management. of it's care it really facility focus. sometimes it in get have sometimes labor down of we So, diagnosing hit difficult and the then, of key and and a When do then not really what's kind that we a or And center just really volume, we start kind kind that laser with of issues, we contract that of really sometimes what to time of kind and on these, work focus. handful is, by so, metrics labor its just it takes more reports identify center some basis, comes just driving underperformance. degree is

re-bounce were team I some But, to So that bandwidth we're the these didn't today to really that anticipate last have in we'll it's we difficult that not year. we something what not centers. management level at chose as look that year with see care deal necessarily this setting or the the

Dana Hambly

a health process But, if that think it Does me question that segment. threat I make be acquiring be but sense And business, bigger would there a in those personal businesses is would more on, have platform, to Paul to I in sizable and picture, helpful. assume you I or care my folks guess correct other as a that? of make you be it lines I That's Care view is your you am that Okay. for really of doing a within for then, asset Humana home that don't wrong. Managed the would sense hospice sizable like

Paul Kusserow

the doing I'm don't going love philosophy think, to what like folks it. sense Well, obviously, years. from, that if for add we'd know I over I But for Humana it should it four be more made

industry And particularly think mean the then bigger wasn't did I Care something it, was although you three thing that overnight that got, is function Kindred I companies getting have hospice dating LHC is, philosophy see quarter in five have will. of acquired, the fourth now the Managed in I've maybe I seeing of the and sort is changed. the that changing, heard United you is you've the being So, we're did, AFAM that attitude together. you some big mean if

on view things those we as So, while are to and opportunity share is view go opportunistically, thing. to is this out and and fight really very we and, get for a share they this out this an so some frankly good view go working

the also We wish great, think, them I thing all is the Kindred best.

what do I worked ability some value shows that's home when does their homes in was of and chronics I I values that that, on to health, does think Care the value difficult it people keep well, Managed ability and that their folks, to there. it

I'm money So, put their in space. to glad that they work this

I value to think business. adds this in everybody it

Dana Hambly

type like one last Paul, a a the for recently sounds the - with everyone. you quoted announced think small, but innovation game in changes this I it you just me partnership the And Okay. saying from with that or Availity and that agreement releases an of

I little know like a more feel it? should So, about I bit

Paul Kusserow

very so Availity - involved do, allows people so they I to what I to rules, us fundamentally have each that is when it claims the well and payers providers a was it right All easily to used quickly to were allows getting can adjudicate at talk Humana. and that involved. talks and Availity in pipe and be we other payers building sure, without

we've taking been, the has problem Managed a how part manual Care that's so, us business, And for part of process. of at looked

terms are really we in more can the forward going automate now be we back-office right process, so, is that better to And costs process, does important. automation the looking of the automating our this and cutting believe we that to

to they debt. things again, make us, they So, those we of down, that heard some again now automate less heard up, pay it's cost we're and cut because payers it's can or they hold pay right to with to our working they us bad try sure our payers also AR, to try --

So, at up about we're is to and that's Availity. this trying clear what this with excited very our why point, partnership we're

Dana Hambly

Thanks. I the appreciate all time.

Paul Kusserow

Thanks Dan, I appreciate it.

Operator

of Bill Company. The from Benchmark comes your question next line Please proceed the Sutherland question. Our with with

Paul Kusserow

Bill. Hi

Bill Sutherland

you with in case if health where good for at is co-located you're as you going are guess, thanks I'm seeing is informing and your are of primarily morning to home some asset acquisition? Hey curious everyone. hospice that, and just benefit the this how hospice the looking markets and be kind you're I

Paul Kusserow

continuity health mid-XXs. home benefits see think for this of on we to XX% we this We started focus those, and the a the had work it in we to were to better change. started work, we our to on to before XX% our working started hospice. saw around really XX% that before XX% were we eligible saying, We're on of, that now up we on number that people going about And provides care

on on health it's a we've job were that the hospice home hospice the into People we happy great that made us. with will that believe with home health very we we do so, progress people there. do go important side if And into move and

captures And we believe so, do can are there there we that. that

in can forth that between into cares also health. with particularly an about our some very in folks talked health come script well care are we and time, that that some to in out folks going of chronically in personal do believe there when ability We of personal that is old provide back the home that some use of we they eligible involved home and

can you all care patient continuing. they sure believe capture good So, are make that we the the three, really getting and through

Bill Sutherland

just than know I you're some that you that and do, excellence, at? the then, are can clinical to of quality monitoring I'm you've with happening measures, on that could programs the are on all, home, but volumes saying, those emphasize talked of focused increase thinking And really you mostly you was get curious of remote the the well, kinds obviously what of kinds programs clinical kind breakthroughs about in -- about, better I looking just just focused with I'm

Paul Kusserow

Yes.

the this and mean training also that of the some clinicians results and be have and So one the believe in ratings, nice we failure, the with I again that's importantly of our better, is innovations this a quality, are readmission congestive terms we our ratings more, is going are out there is the of in from. the heart that technologies we've we we're The rate. is that's can the done are Managed we heart seeing looking, provide tools it's from terms quality Care, the our important also program terms better we and in congestive important ultimately to new to because think perspective idea

that So, more to we can we do down drive believe the the readmissions better.

an eye remote that on the that. participated tools, keep there. So, monitoring are We yes, we sensors out in

care. this what's a system. We in point At continual lot also are is the noise tracking of going on to in there telemedicine more provide

going lot a on are is that alerts of there So there. out false

to people which of part get algorithms unnecessarily worth otherwise our up really have very is we cleaner to having are make it have we the costly. showing So to while,

Bill Sutherland

in have side? of you [tele] beta care [ph] Do sort the on that anything

Paul Kusserow

do with a that and very to programs And have and are that using Yes. lot that high still were a plants there the risk our do going we it space. were withdrew in drive -- so But, business noise again can It's I work space too down where risk. are about in small in rates. to system we turning congestive are mean be conversations we are space. small have we We take what very are when costs testing continually been at we gold. it. if couple plants believe you our having important. that we from costs we failure we and this were many big do too some with driving actually we scales the doing going was we that of in in you But, you looking heart particularly because are using of In we hospitalization it -- much

on, what ACH. drive do down we that's really can are what to we So, focused

Bill Sutherland

Sounds good. again. Thanks

Paul Kusserow

Thanks Bill. Appreciate it.

Operator

There are to for questions comments. I over back queue. to would further the Kusserow no in like the hand closing call Paul

Paul Kusserow

has great results. interest us day these Amedisys. progress like to earnings call hope a We Thanks everyone very We'd to on who good our much to Great. Thank it. in Appreciate delivered our a who next our joined look that everyone employees early again on on appreciate Doug. you May. thank We great your our call today. forward and everybody. also Have day quarterly updating you in

Operator

this Ladies and today's gentlemen, does teleconference. conclude

this day. at and lines your disconnect may You wonderful have time a

Amedisys (AMED) 28 Feb 182017 Q4 Earnings call transcript