AMED - Earnings call transcript Q4 2020

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Operator

Greetings. Welcome to Amedisys Fourth Quarter and Year End 2020 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. At this time, I will turn the conference over to Nick Muscato. Nick, you may begin.

Nick Muscato

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

Chief Chris joining Amedisys Ginn, Chief and Operating is and Scott call Speaking Paul Chief Government Chairman President on from Legal today’s Also and Affairs Gerard, Kusserow, Vice Financial President Dave Kemmerly, Officer. and Executive be us will Chief Officer. Executive Officer; and Officer;

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

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

Paul Kusserow

and through and treatment us current we Financially, from business and we XX.X%. serve grew referral avoid patients. be could short to quickly has the XXXX over a on prouder $XXX We quickly and XXXX of clinical hyperbole way, generally ability spectacular. Thanks, these developed secured $XXX to try a XXX year I development expanding to our not reach end ample our recover of new challenges Nick PPE distribution our our employees grow. in in margin patient We despite for our XXX,XXX hit, the been quarter obstacles to secured years year-over-year rapidly new but challenges highest follows: basis performance PPE, payment to worked points And are calls, helping ensure even mobilized the pandemic nothing regulatory even by our prioritized presented staff of patients. We center. earnings our overcome all first XXXX performance call. a the over that historic We considering to and when the fourth sources of highlights welcome staff. by to protocol. pandemic Amedisys all a found delivered Other our have centralized implemented while XX superlative the the million our and creating care providing our volumes protocols we XX,XXX as tirelessly million, quality positive presented by reform, COVID-XX EBITDA and EBITDA XX% COVID-XX, our ones, adjusted to to our

transaction especially overhaul payment looking and during continued in out for AseraCare actively first journey pandemic regulatory successfully major inorganic since the of XX PPS ago. over deals, the We and PDGM, our home closed a are healthcare, forward Hospice middle and negotiating years the more

behavioral overcoming Our impact. the and executed We assumptions X.XX nearly investments flawlessly, constant off. practice XXXX rate paid

of care developed Lastly, higher to home. recover close-to-core three want we our at telehealth And expanding take utilization who partnership the by personal patients We integrated solutions we SNF-at-home care into continued of acuity innovations to our nationwide care our product planning. times.

via look our times revenue double Our number, coordination XXXX, we home segments personal revenue start the and its care hospice health X a with care network to for year and $X.X XXXX. in in generated million full approximately

will We integrated are more in also that and able allow age to people working on be place to exciting new further in in predictive innovations, technologies their largely care home. analytics

into dive Gerard outlook, we Scott our quarter and Before and Ginn. fourth acknowledge to results both XXXX want I Chris XXXX and

again, thrived. am and are help through our I achievements. of turn to the but result to been you have Once strategic President I richly of true gentlemen. and COO; greater we congratulations, deserved role leadership and XXXX performance. drive for our fully us Executive in our they last initiatives, even appointed XXXX, their their and helped it since of Take survived of over COO, a run announcement to the mettle, success. PDGM Chris Scott but If months was you will a Board as hard quarter CFO. that showed and to has promotions and to know our helping Chris that, saw execute Scott guide confident call work Vice these where of President craft Gerard, night, only earned company Both leadership, levels that then continue exemplary all and and and and Chris Scott Directors Chris where through two not upon of fourth the President will it have exemplary With and their and Chris. significant away, in of both COVID-XX,

Chris Gerard

Paul. Thanks,

let’s full our XXXX Let to to our all it start home. they solution mission. Thank wherever relates our and by place as becoming excited operational aging patients efficiency the at that, and the to and help to continue you I’m results year a quality, four journey fourth people, strategic to Paul, Board pillars: lead me call the for take in on growth. look and quarter Amedisys first help associates saying that enable the Amedisys to With honored

quality. First,

As will quality focus be you been and the organization. know, to a of continue has

X.XX, four and score we of XX% proud X.X-plus are stars. our care at at QPC achieved health business centers of XXXX, during had care care of We and that patient XX% of stars our quality Star home our the centers

in of people. numerous a talent. we challenges year the progress our Next, in proud impacted I’m our and In unprecedented made supporting work lives and daily retaining very which lives,

Our key still turnover total made we have XX.X%. was our calls. here especially Reducing updating do, progress initiative nursing a forward within the you is year for for us staff. work to I Though we voluntary XXXX, on to good turnover in subsequent our clinical look progress, in and

year, were our highest the the receiving staffing plans, was care and to appropriate clinical utilization overcame care operational on Optimize were the assumptions. though biggest efficiency, initiative. delivery even most impact our improved Now of and And the our we to our with PDGM PDGM’s wrench quality pandemics a in behavioral of mix. entering our patients visits, ensure that still we

down which episode, year-over-year. For we performed the X.X visits XX X.X and visits sequentially visits quarter, per was

utilization fourth per this a XX.X% the pickup XX.X. believe we as slight the with year full remain experience For our XXXX, We the clinical the experience around VPE performance from XXXX. no quality. rate very improved return. our related XX.X exit likely achieved have we XXXX, XXXX, quality quarter impact we visits year full will has episode, performed comfortable for fact, as Entering And to year. quarter. On mix, and PTA should in from business be episode seen visits business per our X.X LPN utilization we XX.X% we But throughout down in fourth COVID

increase ability down, become more As business our utilization to LPN per have episode come has our challenging.

and room X% still grew work XXXX. volume for finally, admissions, in for X%, total in in this for home through number we there’s the we improvement However, same-store And as quarter growth, health, respectively.

of admissions the rate of the service dynamic which Our during entering faster business we ADC an patients which home believe coming the But COVID-XX. been further dying was new historically. a throughout increase has process fourth the quarter, to as of grew dynamic, In end otherwise, XX%, largely over strong admissions of than our at for and we while Last debt service, quarter, health was will quarter. timing quarter growth growth. all due hospice ADC course and correct Said the patients inhibited pandemic the is to industry by division same-store a fears growth. grow to another nimble quarter. with was our discharge by discussed the We were COVID-XX the sharp flat dynamic deferral care in hospice, ADC. on and/or ADC of how time. lags ability This admits, in this new of same industry-wide on dying This hindered month related growth the to later displayed along

impact that positive will time when ADC we’re The but in be. some to very now early it’s seeing January, continued However, signs. hard project

as fact, entering a well started decrease week-over-week In to total as we deaths discharges. in February total admits surpassing see

Pages on slide along trends these have our We our stats, ADC of information on and provided XXXX deck. with monthly projections and additional supplemental XX hospice XX

and we As had incredible an year. quarter you can see, great another

employees four With the guidance Focusing year our to our quarter performance on strategic continues financial well Scott? of a will for will Scott, turn take detailed our and our patients, pillars over for who and our our through you off us shareholders. that, more to pay review as as XXXX. I for

Scott Ginn

very am I excellent another quarter and Chris. year financial full Thanks, to results. pleased report on

XXXX XX% net million $XXX revenue a increase revenue, we compared basis, $X.XX in $XX XXXX. million income GAAP per of to delivered quarter on or on fourth diluted of the share For a of

$XXX per $X.X of diluted billion revenue, we year, increase of increase the of compared For in on million or X% income $X.XX an delivered XXXX. to net share, $X.XX an

and quarter the and for testing reminder, million associated $X.X these of we for included service of and The PPE the to the quarter year; a CARES pay for cost of to million quarantine the costs Act in million the for majority our funds year. have $X.X $X.X quarter nearly $X.X with costs As the million million are for of only million COVID-XX. direct and chosen $XX.X following: the $X.X of cost for of consists apply year;

of Act We have the million $XX funds utilized received. CARES

supplemental or regarding of our characterized the impacts. these items impacted results XX in have were quarter, line nature. items, results by GAAP each as adjustment and our adjusting income temporary slides Slide expense detail the items provides we onetime or our statement non-core, that income For

funds adjustments recognition our of CARES Act that with direct and costs note COVID-XX. include You’ll associated the

to XXX year, The on an XX.X%; $X.XX for basis were $XX XX% revenue a $XX $X.XX, year. basis, or added million revenue of results our suspension increased XX% EPS to $XXX as points executive resulting and as or stock option benefit EBITDA of million; EPS $X.X increased to an million from impressive and of includes billion; grew percentage adjusted our a million Revenue the $X.XX, X% For to margin follows. to which QX gross EBITDA increased sequestration or exercises. $XXX the

on delivered tremendous results plan to excellence. for of cost our our strategies, presented to by on to indicate, our successfully year the to results implemented PDGM financial and was As and Amedisys, clinical our deliver execute match gross us pandemic. expansion XXXX our the a continued significant overcome we as that mitigation led helped challenges margin which We

on closed successfully year. we acquisitions during the integrated two hospice and Additionally,

and suspension follows: the X. fourth EPS fourth EBITDA added of increased to to share. $XX of to million quarter impacting a performance basis adjusted million the $X.XX quarter million. were our Items For October our or increase as revenue effective revenue or EBITDA follows: million margin, increased hospice XX% increased points $X and $XX per revenue of $XX and $XXX XX% XXXX rate gross sequestration to our grew basis, $X.XX XXX as results percentage million. X.X% as are

Sequentially, a points portion of by full acquisitions shift increase health contractor which effect EBITDA substantial home quarter in clinical benefit drove a and reimbursement and and in which X. our into utilization and an gross two in health. raises, improvement utilization raises, in in margin, increases driven decline million, August volumes, XXXX our a improvements hospice clinical increased was in staffing ADC $X.X hospice offset of Continued by basis hospice the in went a XXX of mix

delay driven X% Now December, X%, than turning segment a of in performance, episode by increase week Visiting driven by a to home change per medical seasonality. $XX in benefit. increased volume in sequential health was revenue suspension adjusted and year, keep same-store year-over-year of as per visit COVID-XX The sequestration, total the was excluding quarter increases fourth number reached million which of growth In caused in more clinician $XX X% effective a pre-corporate segment in year. of level commissions, significant PDGM growth normal strong of X.X% by offset flat in last prior driven higher insurance our by contractors roughly lupus A an or compared in $XXX mind, resulting or case admissions X. X% up expense health, per increased mix prior is was total increase the significant increase growth quarantine the sequestration Revenue which was and cost in rate allocation. up EBITDA a driven to X%. cuts, to revenue spend high over the wage episode, these increase peak the planned from August due million,

the pay and volume lower fixed higher impact New costs. visit on of

wage margin per of million, gross despite approximately lower million, by improvement. million, Sequentially, improved points G&A XXX EBITDA raises training $XX our up travel spend was of business XX.X%, sequestration down margin resources, increase in representing planned related higher and cost increase point the $X.X increases, more Segment from higher development utilization, staff improvement was to segment was in of addition visit. progress $XX utilization, by as relief significant by Our partially offset million, higher benefited an volumes. EBITDA driven an XXX than our a model, contractor which spend. the and and the basis of a business on quarter offset impact X% XX-basis increased point EBITDA full a $X with basis and investors PDGM, G&A variable nature mainly from The mix and clinical volumes. driven

hospice an two Now turning includes quarter, XXXX, $XXX.XX, rate up Asana by went and to acquisitions up prior and million, Net $XX the into over our revenue suspension June X.X% X. hospice closed X. AseraCare X% one increase that $XXX on the a January segment year, for results, of to million addition October which per increase XX%, revenue of day sequestration on effect fourth was during was driven

discussed, Chris at growth submission XX%. office As impressive was

approximately patients $XX EBITDA contract this up decline of EBITDA segment’s in all to despite the rate primarily the was $X.X decreased care by XX%. However, to cost employees performed on day COVID of in EBITDA related of and million, ADC and was to a effective increase Asana in The sequential flat The and an the shorter revenue as of census decline $XX an pharmacy in added acquisitions impact driven increase hospice million delays length million, stay. increased segment update $X.XX, and restrictions, AseraCare $XX of resulted increase million of October of deaths per in due renegotiations Hospice Sequentially, ADC. X. by $X business million, performance quarter. the related access

XX.X% to $XX adjusted Turning $XX to in corporate. our is $X total hospice $XXX was costs basis, total and an increase general acquisitions, and our administrative of expenses, total revenue, which million million G&A in on or million $X million related an million our in of year-over-year and includes segment additional

for business Additionally, staff and accruals approximately comp incentive $X additional development support resources operational accounted raises million.

cash from in the We million flow continue impressive cash flow fourth producing to quarter, generate operations. $XX in

Act payments quarter was Our funds. CARES our $XX for the cash related impacted flow in treatment of additional approximately by tax million to

For $XXX operations. year, cash the from have we flow million generated in

the in leverage completed ratio XXXX, X.Xx, with on end helped in to $XXX cash remain February have acquisitions We within us a opportunities year XXXX. strong as of is approximately quite of impressive focused which an health M&A home consolidation has segment. with we pursuing opportunities emphasis our million generation continued on Our since flow net

Finally, XXXX. XX you see releasing supplemental our of slide as deck, can we for Page guidance our are on

million $X.XX. key $XXX on billion and through Our of There slides. to $X.XX XX $X.XX our EBITDA guidance adjusted of assumptions XX to guidance impacting billion; are slides ranges of adjusted $X.XX revenue EPS supplemental XXXX of to several million; $XXX outlined are

is by million. of pricing impact return pricing XX, updates net updates, suspension home March the health of sequestration partially anticipated $XX our hospice The of offset XXXX. the are First, sequestration estimated ending and

hospice million the As hourly the total, in in anticipate the growth results in returning incremental the approximately noted from of be half to will XX approximately materials, to of equates business this to in will outperformance; before XXXX. half wage a ADC Planned raises result supplemental recovery Slide decline million, In visits, QX. ADC we of to some sequential $X in Keep spend. acquisitions of and of in completed our impact effective from margin previously hospice quicker-than-projected second year-over-year year. million EBITDA $XX $XX return in in X% significant contribution clinician A are in is benefit approximately our increases by first impacted of mind, increased segment that XXXX the given which X% XXXX. August in

approximately approximately the spend incremental effective of continued rate with investments $X innovations rate XX%. tax XX%, And of include tax cash million and additional estimated de Our assumption novo in and of projects is $XX business approximately million, of $XX investments which finally, in approximately million. an

to keep revenues of QX seasonality XXXX. claims. health from sequestration decline performance XXXX and of increased impact impact to items million. costs additional estimated days $X health of two related with a $XX is combined to related less benefit to Some Home hospice of our net approximately to The by lower ADC mind calendar in QX million the rate of

the full QX return the impact of sequestration $X in of million. Additionally, was

assumes our conclude. cash be projecting impact operations XX.X range $XXX and of we of guidance of to the under the and over now Finally, no million. million. together is CARES projection inclusive flow the are This million from turn payroll totaled call I back million to Act, repayment the in will RAP shares $XXX nearly the Paul? tax pay $XX deferrals to which of Paul to back

Paul Kusserow

Scott well CFO, and EVP done. you. Thank Ginn,

headwinds COVID-XX see, what we XXXX, you to able have be turned tailwinds. we for in has As accomplish of of and the into much were can to proud PDGM

for more and excited about even be have beyond. to We XXXX

the turning the in out burgeoning coming XX both ever over coupled care to future. into strongly home unsustainable want potential to to positive at-home, age on baby lowest they in years costs quality the health year, of XX boomers hospice the us for puts population, well and law, with highest rate based with projections public of baby a our increasing boomers ever cost position and demographics, plus the at as Keep an First, very and mind, favor expect According line healthcare company, current at than in The advantageous be in people updates, with more home. are CMS’ able die old patients aging-in-place surge XX seniors. X are to before. and a creating delivering in

businesses, this nature sense. the our Given low-cost of lot high-quality and makes a of

Next, our industries position home generation with major presents exciting hospice will inorganic market of the with a and growth scale for and and us cash an flow fragmentation health the both coupled opportunity us continued consolidator. as

technology As subsidies roll more share positioned we we the of for subside, over COVID-accelerated And no the home, capture one more take the in share unsustainable up expect industries. is better to Amedisys than coming of as more to doing respective our the years more and market the lastly, trends advantage capabilities, for home. we the our into an It’s programs, other high to open be at the SNF-at-home other grow shift more remarks. share even to And prepared please take And Amedisys. and that questions. acuity innovations time truly call as from Operator, we our providers. ends expect exciting post-acute

Operator

Instructions] Tanquilut question. the [Operator your Jefferies. question from Brian Please of proceed first with And is our line with

Brian Tanquilut

strong, ask will on you allowed we the I for guidance one. and is How good group. have you the guys. give are about morning, especially I QX the quarter. Paul, growth – relative seen to obviously, will Hey, right. Since three-part and we to solid, Congrats the the year what are a rate one asking, by peer start question, was for only thinking

obviously has guess And related hospice the what ADC faced that? that, then drives So, challenges. these to I

are about guess, Thanks. two what thinking And question? the the So, or guidance, I first on slide that walk last getting Scott, that through one and all you just deck? the of then, conservatism how us of in to if inflecting related can showed trend the that for your line is are you the you you us parts doing to

Paul Kusserow

Yes.

lots what is folks good we Besides trajectory, seen have a lots in Brian. got, that which growth are very is we of that’s and have On about we I incorporating. the think just of there – been charm, the sales think of confident terms looks we there have I joke, side, our

a actually in is lot being the pitched market of we We have we business. have we won good taken hard And what period, lot of share. in done a citizen, think COVID and by I have

and places, but pie some say, the due little Although other is smaller in again. let’s to SNFs of some gained some COVID these we in have ALFs facilities, places, and a share,

drive So, very the with the I came I correlations, that are talked our is in what think PPE. about service strong initially, we strong again, feeling quality we we and very continue correlations, to can volume the that indicators seeing

So, forward. I think that’s been pushing us

growth, things I’ll we drive starting the good yes, by XX% X% home to So we ADC, admit growth some take and health hospice then let and stick one. are on are then Chris that to going that see but

Chris Gerard

Yes. you. morning, Brian. Hey, Thank good Yes.

in in-home you the where And either can. own well ADC coming upsetting seeing as or across way on analyzed or or over as our ALI which referrals. referring truly, have side, is, So, all almost agencies health are segments or from, hospital the we this SNF we that or is home in SNF referrals are physician facility what

in all We the segments. decline those are seeing length of of stay a across

we the in as to is as to going do start we are see already happen you more so is far decline, throughout vaccine distributed XXXX seeing like decline as rates for we feel widely January So and starting these know well. death us, getting is starting in to and COVID that February to what and are

illustrated to we revert it We expect stay continue that our then you see normal deck in of where of length slide and year start going. a that in to and through to see this terms can back

of From our around uncontrollable timely a of things care getting been fashion. have seeking the we it’s medical FTE controllable, their kind comfortable out really viewpoint, just are for we And more from So staff people building that and part going kind sales. that about it’s admissions. see our as in

that’s an to opportunity. aggressive and good admits growth in in with got XX% sign take QX, have this feel year-over-year Obviously, admission identify locations growth we been couple a our year we with growth of than have to working data a like the agencies, that strategy. are opportunity ADC have new going through the plus And the little XX% referral real novos, we a just color that for on planned ADC. execute year, see sources and full our We growing admit the over is that our and we have around are de years we growth, the And done where got those smaller XX taking we last on third the of agencies less acquired that’s the about those and aggressively.

on the have feet We the street.

volume through. coming a really to the what reversion need say. ADC is have And We just that’s an flow pull-through a of back normal a perspective in we see length to

Scott Ginn

Yes. third And to Brian. your get one, I will

of guidance the there. trend opportunity got us to ADC We So, outperform perspective, conservatism from have is I certainly a we a mean the move on what as forward.

then discharge us deterioration were are we in as But we good right this sitting we feel were shift trends. what we seeing them the really but felt watching where certainly feel in are. a We here about good from where those had November, from perspective and now. about of good it, So rethink are we kind

decisional perspective where The built over up all not our I have this done is to going to Certainly, we spend costs we from are a load is we us are room and early. job years. the there. leave generally good there going in load at we something think – always we way some a

that spend our trends, will we and go late see you at to were on handle we that’s look promises. you kind in we once better If are have a years delivering that our growth of

I will myself again. have that there. room So got we do

now we good at built and out, there are is I around So, the come place some that as pretty right in. feel generally we conservatism

Paul Kusserow

Brian. Thanks,

Brian Tanquilut

you. Thank

Operator

next Our of question the your comes with Bank. Justin Deutsche proceed with questions. from Please line Bowers

Justin Bowers

last to where if job sounds congrats gentlemen. One previous questions. am and going are And share. and the this it of comes good pieces, recognition Chris wondering in done to Are in then about much terms year-over-year on how health, Hey, margins I related thinking about moving recovery you electives? like they terms I then on are year. Scott the on to How you of back that just you – I taking am in guide? And were where you Hey, trends was And well the that I will just quarter? guys thinking everyone with morning hospice, good this of curious and there. follow-up the all then the home a just pretty the are there? one, year? how And stop of similar the to are

Paul Kusserow

one to surgery off Right. not I am centers. we you, hand thing the migration to fact very that off to Chris, discharges at, looking going are ambulatory that Justin I we and only that except we procedures for is, are think watching are carefully, hospital what straight are some seeing certain of

are seeing growth we there. some So

we to where patients hospital. – outside places things we understand that. very ambulatory, we the more well the other we we the types to is all but migration, there are going over have as it of there places where of has there followed we our one followed think over where is I done get the that’s over done And when be is So expect well more and as hospital, there been

We are be to we used a that winning winning see. there, Chris? than shares are there, we look diffuse more for we are don’t I little share to know, going but to

Chris Gerard

yes. Thanks, Justin. Yes,

XXX%. of levels a seeing in we terms are procedures. XXXX full is XX% into right about now we have We for of pre-pandemic we – we what don’t at plan back what have don’t are elective our So to the baked and that coming

it some that’s does, the for event us. in upside that So

XX%. We have to it coming back about

numbers. growth of of of share coming out our We kind these into fair that’s get referrals baked So do hospitals. our

increase of surgery As we some share see our may to Paul those as opportunity those an to transition over actually mentioned, discharges. centers, of ambulatory which

of opportunity as of during Again, but are this not levels. pre-pandemic pandemic. for that’s upside So, have coming of X% north our XX% admission all at part numbers, sitting that’s an growth see really XXXX into that baked that we planned we much don’t at we gotten not the our from a sub-sector. It’s significant really

pretty are conservative that. we capturing being around So, of our still

Scott Ginn

then I movement are margin, think growth, on the And margin at to Yes. of you around I on your gross the going most on question be hospice see think line. is margin, really going to

all with acquisitions going is have with on running there think the a here, of pieces out. everything lot we moving I of –

perspective, visit benefiting the hospice. throughout margin as I in strong. because were signal fourth quarter, think on volumes year, lower probably from a is gross really for XX% came the about we access of And issues roughly at the which from we X% a

that normalizes have for XX% from in increase going the full So around to we’re margin, QX. affect year, gross a a would a which rate to

So that’s beneficial. a

have in go the quarter. away You’ll sequestration second

from going mid of a XX% we which that to kind were a probably margin XX type for – year, us think we’re similar I in XX.X% in EBITDA hang keep range that So would the XX% in where the XX% at high perspective, to hospice. range to gross to of margin

Justin Bowers

questions. much Thanks it. Got for the so

Paul Kusserow

Thanks, Justin.

Operator

from of proceed Rice question. Credit with The next Please comes Suisse. your A.J. question with the line

Paul Kusserow

A.J. Hey,

A.J. Rice

on I last pretty about the couple out wonder the now everybody. times are if vaccine. – the of you be quantify I they And quarter, dynamics. maybe quarantine. of ask from Hi, clinicians, I in know a the line think could labor to front I’ll clinicians the out your headwind just that? get called would much I would you’ve

have they’re rate. similar, moderate just so I’m on Or to we out be something And then And they quickly is missing there? on wouldn’t on pretty see turnover that vaccinated, there once the quarantine? could

of burning you was Your guess that stuff good rate on turnover Any sequentially happen? third down grain. out the all this sort of rate down come turnover to how see that to are quarter. against I about with crisis having the we’re fourth clinicians hearing from comment and

Scott Ginn

Yes.

of with Let we and me the and see start the dollars with at an peaked clinicians cases end that certainly the But you quarantine does did us. get of QX in the rose. the let kind more December. Chris, quarantine impact of we fact some think to We be quarantine COVID And as I’ll higher around and impact will of piece start around into forth. the other so – kind

certainly but is working its kind way a that drop. will it So of slow down, be

that’s that what’s in we’re At happens health visits So million also a to by up equates driving visit. hit on per that? need us to that were so roughly The $X well. which we sequential a contractors. that X.X cost relative as contractor that. getting impacted From roughly is Year-over-year, $X.XX quarter, per million What growth causing visit, sequential cost strong we’re needing perspective, on to $X.X is when happens million. contractor roughly – $X.XX up home

how to growth certainly those, that can down. on other any some quickly the limit of opportunities kind So color? number we but Chris, bring strong will

Chris Gerard

Yes.

of the peaked in workforce. our We Just X% kind terms of at about of clinicians.

far back on down so early around That watermark significantly come leave dating this of April December. has last in was for us, We’re to a That high quarantine we’re year. year, number X%.

we’re now, XX% As vaccinated. have been required we clinicians clinicians of offset some not quarantine on to been Right they’re they leave but if have that been obviously our vaccinated, that getting get go to exposed, vaccinated. that about they’ve even of our close so

that’s for we’re sure year really adequately in on as and a focusing hospice home for is that burnout both What clinician well. So staffed. good making we’re health this moving direction that and

Medicare coming bit our contract up fast, was clinical Frankly, – really utilizing a with stunned capacity. little X% could we’re done quarantine just We’re nurses. fighting in X% in because it a we That bit better. our clinicians our QX have little so growth beefing was and

growth out the that capacity have got line clinical see making choosing year. the the And this for going nurses in have sure eyes we dependencies shut year, of we’re in to we’re our that a we to that to any it of opened the sight – plan back that really making be this we’ve leave At So door level. – to to building organization. same down support to this back is sure our normal we’re driving good able time, contractor terms

only optimistic all good this trajectory So factors growth support year, not for of kind forward. that. about of but going I’m very those all growth And good a to are good

A.J. Rice

Okay.

Paul Kusserow

one burnout. business. we’ve we’re what is causes labor two in we on Two, the the then And points side, – know staffing

capital human business capital. to that’s we’re do what our utilization hard human is a and So of that’s find as – we – what all

people predictive model days lose they there, XX very out when we’re between XX a developed to we’ve going So leave. the basically which time can of and good tell ahead

We’ve sort results. driving success. proactive that this very So effort early our now to capital, drive some to we’re model to turnover. of good about human manage it’s very being seen down to And understand is how which key

We’re just people.

to is we is burnout particularly no the have assets And there and when people, therefore, there real incredible shortages understanding, have more are of clinicians. have assets. We and our

where to vanguard very in burn feel drive, how we about to continue going how to labor we’re predict but to the how good to utilization, we be understanding are, of turnover. out, predict really So predict

A.J. Rice

Great, Okay. thanks.

Paul Kusserow

A.J. Thanks, it. Appreciate

Operator

question. proceed is of Mok question with Please Andrew the your next from Our line with Barclays.

Andrew Mok

Hi, wanted the follow-up good morning. on to good hospice Hi, headwind. morning. I

On revenue nice guidance. your earnings headwind assumptions the million. sized presentation, about your $XX ADC of slide visual hospice have at you a the revised last I the for in

in Can amount I’ve revision? think you for remarks. the your provide ADC I a heard a headwind $XX or headwind million prepared confirm quantification that

Scott Ginn

Yes.

referencing prepared my that, from perspective, yes, QX in be number impactful remarks, is million thought to revenue the QX which you’re So in move I see looking chart, probably math $XX the your that think the ballpark a was the would you I revenue we as there. can at to from

Andrew Mok

it. Got

thinking able And are to in those the sources Okay. throughout home Thanks. you And to growth through That’s from the referral Do you QX. to the helpful. total the How referral growth health in think had sources are admissions dig for the you same-store increase expectation you new for year? I quantify side. that a the contribution I little the growth new wanted new referral on a of year? X% sources? X,XXX pace And about have on

Scott Ginn

question. great a it’s Yes,

full generated So X,XXX for the I’m for the month for was I of sorry. sources, quarter, the on health have referral an XX% year. the don’t the number actually new home side, and volume I for QX, – and have our update that do that

referral doing still continue and XXXX to that So good into those really assumptions sources, along we’re well. kind new well sources in path. that’s of around getting terms yield We want referral baked as of of attracting out and our the

comp. of a In be low to pacing, going obviously, terms QX is

witnessed kind had expect And should more a QX. high number was be an until we’ve see In a outsized already we crippling last the days losing kind pretty disruption business kind couple in So that QX And little you’ll storm side. office ended a we what of to There of growth QX, XXX bit lose single little is that up and with growth no of bit we the softer. lines late digits of in then this year-over-year regards QX We QX. a in on days. quarter. of week about pandemic the

impacted the our all a Much of days like have offices the not accumulate it markets right, in February year, to lost that total we weather. it in if of only that. relative for due If XX when So moved that instances of were we but closed look last we we XXX gets that. days to was to

of QX, solid, all to that’s little took because bit just bit a bit the we of bit in we we business, year with just of slowdown dynamics, of lost comp. last little weather but see a little of QX like but otherwise, just spend a that feel throughout little for a growth should a kind easy week don’t the exaggerated that’s related solid being of So the a kind but

Andrew Mok

it. Got

Paul Kusserow

too, we X,XXX the right? have quarter, for approximately And hospice new referrals,

Scott Ginn

Correct.

Paul Kusserow

Yes.

sides, So doing Andrew, we on both well. are pretty

Andrew Mok

Thanks.

Operator

from with the line Please your questions. Mayo proceed comes Whit with question UBS. of Next

Paul Kusserow

Whit. Hey,

Whit Mayo

thanks. Hi,

put is strategy your clarify, a across Can remind slide living no really, business? to spring will have mid-March. that positioned you much on your long-term your pretty maybe with here call, just get maybe know orienting are you I’m how engaging Thanks. you So both earnings and a CBS in access like And optimistic. exposure? this they idea. But their How care around I clinicians these the getting feels question vaccinate reopening? this us of by out they It assisted maybe back mean and I everyone in the suggesting to door? lines believe for that’s I the are you just how coiled to are points?

Paul Kusserow

for old is going obviously, in The market it’s hospice, more I question much My back to this CBS the health. in is Yes, impactful that is going our will But areas norm. more is be right. going. home significant think that is share much it’s has the It’s to of CBS be hope which less where bounce – to good.

that’s happen. convinced aren’t that, to We going

clinicians probably We’re to fact the go had home now home I trying Due it going But think of will people to to keep XX% health. on and is hospice, in health. is on a got numbers more convinced it’s referring referrals that what’s – you’ve that constitutions. continue I to don’t know have happen to the year what Chris,

Chris Gerard

having the ILS It’s mainly X%, about exposure into to around be What able the to and the access we’ve enter side. getting been been clinicians increasingly facility. to our ALS we’ve vaccinated to health the the home facilities, more on is doing

focus facilities residents is that’s and are take by we’re I And an to that opportunity. what residents are a that’s Really, that, of. their of occupancy or – levels. or need of to going March, as to for the that if these pre-pandemic they’re vaccinated late levels. to of know mid upside of XXX% back to lot opportunity get their bit continuing not vaccinated, necessarily and are even barrier So kind occupancy do still little vaccinated if advantage that’s them family What we I not we don’t still a be see letting who kind members occupancy think in grow of a

opportunity. as to that return more norm baking we’re into do things little of don’t people we tremendous that bit outsized settle upside. see more projections as a of of vaccinated, and down our kind of are start not just just But really seeing for So to XXXX versus kind – we

Whit Mayo

Okay.

Paul Kusserow

idea pie, of of we’ve smaller the of of the that’s early because March taking regularly, citizen then bigger we’ve patients been us for largely care think COVID pushing piece, with I been share good vaccination. and getting in PPE getting stealing

think So pie. as we bigger get a smaller doing long there, we pieces think keep we’re it as of that can we’ll that

pushing If that normal. to for gets back great going be pie we Our to are on is it. would the but counting CBS is hope us, that, be

Whit Mayo

Okay. Thanks a lot.

Paul Kusserow

Thanks. it. Appreciate

Operator

is Please question. question with the Gajuk, next The from of Bank of you. America. Joanna Thank line proceed your

Paul Kusserow

Joanna. Hi,

Joanna Gajuk

how Hi, are you. Thank Thanks. you?

– I you about, want hospice guess, side. mentioned on So on a to discussion there was I just the margins talk the

on the puts the progression the talk But things? of side takes and the just on So the color health for through the home margins I about outlook margin can you about the can walk admission year. outlook the side? of us appreciate for we the

Scott Ginn

Yes.

the up I have seen XX.X%, coming home if things the similar margin improvements to of I’m so think side, hospice you – pretty going I’m it’s that be us. continued kind business, of on about there. a health, phenomenal I is We’ve talk ended through, we So about the and mean, which rate for we it, just sorry, helpful. will mean good guy side

runoff sequestration QX. in have You

So are those great. all

The other expansion margin that is have we do opportunities. thing

XX.X%. at If QX. QX XXXX, year-over-year were in And you go – look at our of PPE, down we’re go at looked X.X% we you we

opportunity that. in year revenue opportunity QX. there’s episode. and X.X% the X% a to down from So roughly earlier around also in QX There’s We were of kind per

right when now. basically flat you sequestration We’re take away

to kind then where going back expansion XX.X%. when some year-over-year the comp we see are the opportunities we’ll you to perspective. at And really – – you’re the look of So

for a on I year, EBITDA range gross of right that year we’re around margin. XX% think kind the we’ll XX% hover the perspective and in for to and margin XX%

have we we the with get to a potential slight, increase little think had rate a that. I than better

Paul Kusserow

utilization hiring into in additional – thing a good with but on our again, we’ll so then I focus job have and the it definitely that still a aggressively place, contractors been nurses we QX, of out out very There’s little is with QX, the year. in QX play doing a coming this that as far we’ve well. one LPNs. And pressure, will and At that margin PTAs availability be continue that in still to think time

first they’re nurses with in, bringing So for productive us. weeks not the employed X

running a a contractors start be clinicians, I and bit state. a our think nurses see opportunity which focus more normal is for these into XXXX, clinician, costly can the or And particularly these therapist of our fade but margin a our we’ll get nurse keeping off with we’ll to really to clinicians. costs into It’s we’re in so really And to little the turn rate, business. duplicate kind over productive a of translate

we being focus on actually clinicians into keeping of to to that as lot So and our of of kind leverage some able savings go wage pressures we any nursing those forward. a related see

I a and I us. goes of that the lower better a that’s think still net, on. but turnover, So coming professional think as utilization benefit a lower contractor year positive headwind for bit opportunity of utilization little should be for will QX, out It see we the

Joanna Gajuk

Thanks.

Chris Gerard

understand growth, for Joanna, important Anticipating that projecting, the we’re the going most if the thing we what’s our is grow Yes. to fact rates that employees stabilization we’re productivity us. that long-standing labor and amongst

on where – when emphasis XX lot an predict now accuracy, leave turnover, I of organization see our days. going to is – a we’re XX% been mentioned able to some results we’ve as with early somebody to starting we’re putting putting within good with A.J., very So we’re

get we front sure to on understand employees it. so proactively And front we’re very to in being and where proactive and make problems there’s our that hold of that start

Paul Kusserow

Yes.

what X% per to That’s If in and our have of back in visit. terms look you circle home also QX a we’re spike trying in at our we growth cost health, avoid.

and to expected it. will we early that So we’re year, on growth X% staffing for this achieve achieve it

And did were X% and margins with have if depend so that growth contractor. the had not to fully we we could staffed on in QX have better

we’re So XXXX. at that’s Right. looking how

Joanna Gajuk

you. That’s a color. Thank great

there’s some like Thank still upside So it you. there. sounds

Paul Kusserow

Joanna. Thanks, much. Very

Operator

of is the your Markets. next line with question. Matt Please Capital proceed Borsch BMO from with question Our

Paul Kusserow

Matt. Hi,

Matt Borsch

you? to Hey, how speak Good are you to again.

affect XXXX, going in from you about pipeline think year. Let We not might you consolidation that of before, a the you obviously, the delayed, we’re disruption they PDGM, measures. question that you’re you or that into some of the before about thinking that about you’ve may industry be may me looking shakeout happen talked going got relief because talked say to in How are at? if now ways – the as acquisitions ask in this a which, total

Paul Kusserow

Yes.

that. months. to going in That’s to no their effect owe X been from terms to that of and can year. Our Scott to start we’re a almost looking December back at the talk right, tax CARES this at pipeline there’s also governmental is The for get they’re deferral now costly. on don’t But still bit about fact receivables payroll very people are Act, can – to of start were wrap, the pay then pretty have a in they is, piece borrowing going you pay good, it, if which X be money and the the

The to is going money going money due. is the be reimbursement So due. be there’s to coming –

I though, it’s we’ll be start these Whenever people, think regardless be it. finally, But when the So to you. to to do I going swoop stop, see – think there actually are will be Scott, CARES to I Scott to opportunities the going in. stopped, of and think still Act are deals going interrupted subsidy some team when this subsidies going occurs. I to

Sorry.

Scott Ginn

a just did – I kind that’s what in identify targets bit, it. that little like a we had the early. some has coming playbook switch little pursue of felt think to was Early hospice these We’ve we’ve be go on go saw And of and we I that will we bit. we to and right. and to I them. been No, on, Yes. mean, back us just a different it’s deals mindset –

pipeline. we’ve got So a great

team hard. is working Our

done. at mean, to balance $XXX levered. We XXXX. deals deals of basically paid February We’re million we’ll X.Xx since close confident looking We that. our sheet, did I some get all

got the generation. will flow to we’ve year be that. This do ability cash So another strong

get We assets. lower to do high process. from want So the our confident won’t work got through there. we’ll we quality to and diligence clinical are high-quality, our we standards the acquisitions We’ve

great feel it, and we’re about pushing hard. So

Matt Borsch

you we mean, reading a may maybe have I it been point something be protractive that that is going just XXXX And because of there one? Great. extent it the between like tipping see sounds things how closer lines, the into thinking to coming to if entrants, that about has is, to I attractive proven I here, home in ask question maybe be I very way, other could could new a are which sector with it sorry, health put the fundamentals. just how that one –

care than others their operations some And own with not looking as bigger managed are internal the surprisingly, mom-and-pops in. so Then home health see come of well? to you companies

Paul Kusserow

Yes.

I it – I it hospice, and is really, business think our personal certain Again, from mix home is in do care, care we we this well. we perspective. palliative really think I welcome do, a all health, good. And in really

I think is the good. the neutrality in we market have really

I think much every people there will more. rumors hear continue to be day, we

there up, last was news some morning. snapped was news Assets night. some being this There

are a see they is be this there you will place space, I companies I where diversified get the need and try that home be. people to will think to think understanding we’ll how And do. into

industries about the great I think is things both so industry of so they’re highly fragmented. as one this highly it’s

there. to to out some with of So to big be there’s opportunity always work players going are the that continue the

have XX, to not deal at going In to health somebody. they’re they home mean sources referral we example, that doesn’t something for with buy to most there’s going partner see XX agencies hospitals, the Just with. of

where with up So various game and they to into we’re continue go aren’t. geographies partner – have the to people where possible to and delighted to

compare activity. themselves see So there rumors I welcome lot My IPOs a us. out the do. of We’ll there. is We Again, we think there a be they to hear couple And will more how they’ll on be it. competition. guess will

Matt Borsch

Great, thank you.

Paul Kusserow

question. Thank the Right. for you it, Appreciate Matt.

Operator

Thank you.

line with the Blair. from Larew Matt with Please questions. is question final Our proceed William your of

Dan Lawler

question. This taking for on my for good Lawler is Hi, Dan morning. Matt Larew. Thanks

Paul Kusserow

Hey, there. Good Dan. morning,

Dan Lawler

Yes.

revenue to then on drove maybe admission get in X%? about with just on XXXX? for revenue Medicare follow-up same-store home up growth in versus we can wanted how So, should guidance health, the thinking what Medicare color QX compared non-Medicare to to X% non-Medicare be a for little we And respect flat admissions guidance

Scott Ginn

Yes.

– the around the year-over-year. from were yes, growth they perspective, first, So non-Medicare issue flat a on

around going a you look on. going the we’ve got of We I probably per numbers non-Medicare But is admit Medicare, the that. an on from think I some perspective at than good kind things down, guide. in we high. those it’s pricing saw we better our If X% our business. actual business, a it, Medicare which saw is of mean, And to volume what visits of got go look admit couple really, on stats

was probably X.X%. the those volume of piece both about So X.X%,

of the look you be combined, if of of X.X for. we’d range in type at percent looking those So kind we’re

last revenue happened QX While two really XXXX. QX, higher which that’s our little year, from around not then a improvement little we are we reserves concessions, things showing up, price terminology contract And those that was a bit higher it’s had talked in in our care a if old plus. a

I think about it and was UHC into QX episodes product that up there probably a was ran That to is year. the In talked that up revenue, recognize converted converted in about visits. we That conversion that completed that to last propped show numbers episodic that volume from per X.X%. of number. way name that don’t we

That’s revenue X.X% volumes admit kind just probably seeing the number. out strong of But seeing why of out this growth. will that work this out that around after quarter. its still coming flat and non-Medicare. other So growth going way It’s you’re one flattened in way, the recognition issue which we’re

Dan Lawler

on out it I to to pilots anything if stand last could thanks. Great, appreciate more us even payers? if just you timing And sneak sense in, can you with maybe give a or you the mentioned have on I where rolling the the the pilot, And taking CMS? for you related call, SNF-at-home the for one color.

Paul Kusserow

Yes.

We’re in good shape there.

done job think really had together. we’ve putting group our – a nice it I innovations has

contract We’re space. with negotiations kind final player the in a of the major actually in

there. with work some we’ll started some the hopefully, we’ve out time. do of news of And actually be ahead so But to

where feeling what So think we factor good, SNFs can. people, But SNFs. we to convener-type fear to with the with associated of particularly and of we’re it’s the don’t anything we’re people that lots want We’ll we’re I a have by say to deal. on so that. a good – excited But signed until reduce space the very conversations going learn we’re cost are excited partner,

better what show is believe it first results find cost. great So produce of managed we’re we then into we it from interest we getting a partner how But less and a and can integrate do to plans. managed lot want to works for care care

of So the interest, obviously, to that’s MA tremendous particularly plans.

Scott Ginn

of lot of lot a And I Scott, we our other next and to – of This again. thing one our make the sure wanted there’s estimates walk some called want just just around pieces guidance kind assumptions. have quickly in is Yes, around year to a there, our through. for and moving of out earnings I

we’ve be roughly If $XX we’re $XX you we’re how $XXX rate at look sequestration million everybody the million good rate at guide, XXXX, clear that’s our in of of we’ve to million on got unwinding and negative a got that net exiting roughly talking positive and $XX just with is million.

because We seeking run We’ve Asana, that a health we out of million. going drive probably, has $XX talked health that’s much, people million. our lower and about kind that of place, been of $XX care rate positive going to acquisitions out a think, the increase to not the got incrementally we’ve it’s in going are little there done COVID raises in So impacted and as already CCH, us. medical some done AseraCare, everything we’ve is

a $XX margin million. gross bucket you think range growth the that’s type point of puts you other expansion, That So novo We we million, de think we so that’s said somewhere kind $XX $XX raises returns, $XXX and million. health, spend, another And travel million we and said a roughly $X between probably that in the $XX gets and time, that of that’s think in roughly are roughly We’ve million. number. project raises roughly in then million. $XX million. through of of At

out think some just to as modeling. guys So there you level help through highlight you your moving pieces

Paul Kusserow

go. There Scott. Dan. bonus, a Thanks, got You you

Scott Ginn

welcome. are You

Operator

the Thank you. I this Paul At closing of to turn question-and-answer time, a end remarks. I’ll reach over the Kusserow for now session. call

Paul Kusserow

on our it It’s appreciate taking you’re each keep care employees to of again doing. today. all I other amazing to what operator. joined who very thank also like who call everyone much, to Great. of incredible another thank and doing results. delivered see year want on Please of us our purposeful see the I take road. call ever-evolving or progress people everyone look us we’ll to you patients. April. day work great on are today, We on the our need a we care, updating who on and the hope most has forward everyone, earnings then, quarterly really in and you next Till I’d our

Operator

This Thank you. will conclude today’s conference.

You may this at time. disconnect your you your for Thank lines participation.

Amedisys (AMED) 26 Feb 212020 Q4 Earnings call transcript