AMED - Earnings call transcript Q3 2021

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Operator

Greetings, and welcome to the Amedisys' Third Quarter 2021 Earnings 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. It is now my pleasure to introduce your host, Nick Muscato, Senior Vice President of Finance. you. Thank ahead. go Please

Nick Muscato

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

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

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

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

Paul Kusserow

the XXXX and third Nick, to welcome call. earnings Thanks, quarter Amedisys

employees. Whether all employee on everything. care yet of But dedication largest to inspiration. change Amedisys, care, resolute Amedisys supporting my and you patient you at source we be remain providing quality or great dedication how best-in-class We to a patient's of COVID-XX we I appreciation all my provided, sincerest to been lot patients and base first industry-leading and And dive and to the have entire continues point at to all XX,XXX pride put continues quality of of greatest express metrics. bedside of has before unwavering it in, dynamics our call. health care in a those putting today's delivering industry's the plus discuss is delivering to this want the are before

that, For I thank you.

possible, more. uncontrollable and to everyone forces it responds you bit it where have, Before have tough, a I'd Amedisys the which can we our have I motto. year. over era, what hold better that great performance. A say opportunities. all quote company Chris Roosevelt, us. Do am to a and you if else good on have, Scott, Teddy This not can what describes has I with all to that's excited company are. and you best from That's dealing you not turn modified how how call proud maximizes with come a the imagined. brutal control. you I A best at ground. and The and incoming us, by strong our where the COVID than like do can take them I've are what we turns could into for favorite with did been

to which units rates due hospitals kept recruiting, control is on quality out our stars XX% heads, What estimate. COVID, up we're and death by X.X our ADC, In built cutting reduced driving rates XX%. and increasing due we're hiring affecting industry quarantine ratings choosing labor we saw our can't our by our we to to faster due to clinical in we We growing hospitals we BD to our turnover controllables, not accelerated the but latest and issues taking For labor and our is accelerated there death due to COVID vaccinated. COVID, room share clinicians COVID make closing nurses beds, be electives shortages, hospice, for is admissions. higher,

home starting hard up signs see and results will hospitals rates have When one. lost cutting grow which are seen. at health, revenue but quarantine Our to on down. again and fought manage are normalizes, admissions due gained others share visits These to now, grow. we typically to our when ADC are hard of we're In we clinicians back electives, we and just

are better? We on in do been far, uncontrollables. Absolutely. we on Have company we remarkable wins But and that controllables always year time. best so Can it's performance mistakes? a turbulent We a to. a made of tremendously try pivots

discuss to like Contessa's performance I'd Now quarter. during the

QX, offering of of home-based increase joined months our need for Total in newly Demand home-based ago. continues segment, forecast, just a pretty acute the of services us for joint positive venture solutions continued months markets Acuity Our of and original to across grow. closing for experienced X.X% existing formed extremely XXX acute the High X the recovery in acquisition, since an Contessa's is or good from Care company high that care. admissions momentum were patients for Contessa, level two

Contessa's X they partnership, with with expected to this far Ford on venture demonstrate to so marquee QX more with to Health home. joint promising eliminated vacancies. access all This innovative value models, the The which clinical demand. in closing all through to at largely SNF-at-home have of leadership as and care drive launch think in continue will Contessa 'XX, to working continue can are to capture are hospital very level ways combine System. to Henry so results We its their and is the of its nursing the palliative systems including health capitalize ability home, we home team Contessa that

so, evaluating partnerships Contessa inked its partnership, additional health announcing a XX an more just footprint. Ford This systems. another to opportunity and substantial Henry week actively be we'll the to addition will create than is deal with In or double in

for ahead is very way our we're XXXX operation, growth which goals in partnerships of XXXX, of terms encouraging. and In

Finally, care with also thus market's the lives Contessa Medicare waiver sources, markets, markets. while contracts the managed in fee-for-service finalizing to add for the addition of increasing clinical our continues two and various total payer in models addressable SNF palliative

care are the Contessa care home, to the platform. risk incorporate We segment's multiplicity Acuity to and namely of more acutely a the full the ill ability are having performance, capabilities patients opportunities and across the take very single provide sicker table, and ability all care and by and this the pleased ability of to taking with in this new the to High excited coordinate brings we

profits in our We arrangements patients who want congratulate I'd at care partners lower hospital for and hospital addressable the level partners thank Contessa's start. in can these a Contessa drive our on we capabilities, have deliver SNF doubled better and satisfaction great and our and better outcomes the payer markets and cost. and to with to higher home like

expect give reimbursement been I any to the our released. turn that over prepared Though do I'd of not now released, final Chris? performance of accordingly. to has will as rule, not recording turn proposed Chris is analyze home call to it a XXXX the specific business upon our and timing Before Chris, remarks, us much over of update Amedisys the we health update the impact the core like final rules note the the during the rundown we of from I'll deviation there if everyone to quarter.

Chris Gerard

Paul. Thanks,

with operating much into results, second want the get environment has operating how the to review I segment contrast today. our we that exited the and environment level we changed as Before quarter

of we pre-COVID. assumption about And X.X%. had the clinicians labor days, to of In number improvements to guidance We conversation QX was XX.X as no made vaccine call. discharge our of were a mandate. no stay and of our a average As we about certain days, dropped The elective only in had hospice, total there X.X% our in pockets length length was this of episodes second footprint. median recovered our to pressures our percentage of our was XX.X compared exited total X% procedures and quarantine in on quarter, seeing revised percent stay per episodes

less of As on here's X.X% QX. percent Electives percentage QX our in X.X% slightly, QX earnings reached which clinicians from The on are has episodes quarantine which in QX, in of to X%, our also X%, come we're encouraging. now starting total is clinicians entering than is we environment up dropped as the from procedures Elective changed. X.X% number of rapidly how quarantine The a to decline and has back number today, report seeing the our encouraging. peaked to QX.

mandate vaccine people, days. XX.X median increased our death of and XX.X hospice These from we stay proposed and by as focusing our average We're bad dropped we driven others issues to of and The intensely fell Healthcare rebounding. were seeing census. labor was place some by and see days But discharge are labor to days not seeing. Our great named percentage wage on to encouraged being this work a are pressures. XX.X system-wide signs as from early days length are length started of released, that decreases of on an Modern to stay XX.X

with am during environment with like have levels business, impact very predict to turbulent this time. to COVID As fluid continues forward accuracy. remains progress we you and the Paul, good to can got of see, our Though hard significant I, metal. make continued pleased how We've very

Home admissions let's volume Now Home Health dig segment by grew our and total Health total into QX X%. performance.

the X%. clinicians Home led total on elective a increase discussed, of of I Health the an in anticipated quarter an impacted quarantine, increase in or opportunity decrease missed of during X,XXX nearly growth was number which by growth missed admissions procedures an to and As

visits in with visits we've quality now X.X estimates, year-over-year. scores per seen we X.X strong STARS. VPE down the our very We our and X.X increases For down remain visits our comfortable by XX.X quarter, performed levels episode, sequentially as

scores. better reminder, and we in to visits clinical XX.X% steal our on we turnover episode, XX.X% PTA QX, and LPN both the stated anything demand. will market We're the delivering share quality a Clinician in we never to we retain with do along impact service has utilization, continue utilization clinical scores And and do force XX%. quality by we of consistently of Home to levels our at to given labor levels achieved On we to promise. continued are as PDGM. decreased Health per start that our improvement pushing grow increased need As year-over-year mix, since declined highest

Hospice. to on moving Now

down the admits For we was quarter, 'XX QX X% by Hospice and ADC X%. X% comp grew total over a

have and last by our in activities the BD control, upon growth had driven knew As discussed outlined quarter, the executed turnover We as retention in and plan been the largely staff. in we were and our that to recover we drop-off staff it. Hospice hiring such,

we quarter, the and FTEs. BD During FTEs with the XXX quarter BD hospice ended added XX

they work Year-over-year, of We BD BD discharge materially continue equivalent performance rate we're increase are on of in XX length has starting XXX to towards the much FTEs year X% care to The a not as our signs, staying to is admissions will recover to ADC ADC, segment on completely, is encouraging. that have for to Hospice declined. in census FTEs and X% offers some dying which Hospice another over patients sequential that in which process shorter on starting hospice continued of change exiting be impact hospice increased average hospice medium What XXX uncontrollable coming Despite accepted Very deaths in a but is in COVID our weeks. seeing length the X%. increase ADC. service approximately another increase the and drop and deaths This stay, is in on stay in are the census, is hopeful deaths I'm we've time. later by see impactful census be growth and length entering rate as reflected challenges has like our would our that a a the the line. due been approximately our proud of return have a art the science, and over COVID-XX in issue, issues presented Health follow. $X new behavior as of. and to will we evaluated and to are summary, the systematically continue care challenges, but are Those admissions, reality. results hire we delivered see continue access in spite embraced and Hospice normal have increased an million we quickly is within bottom our pivoted Though our time, Whenever will Home over issues to pre-COVID short-term added control a operating retain to environment is out pre-pandemic, shake-out. current do subsequent our as to grow death patients than impacted In behavior more ADC these we The staff by that predicting will quarter, ADC did Many have and And increase. BD quickly. normal. returns of health control, have their of and think teams both

teams, have accomplished I'll for or we over truly will Scott, will return us Our of company the the is With way, that, norms levels a quarter until our turn year. performance to more of for new will they take will deliver. and detailed and we none to used it either who the and what norms, growth us Pre-COVID be for accomplish, extraordinary, review to our delivering. satisfied of remainder projections our through financial the is

Scott Ginn

Chris. Thanks,

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

we increased costs funds use to of funds to due XX. on not of During June the the CARES any offset COVID-XX expiration quarter, available provider have related to did Act the relief

For provider results provides income our adjustments COVID-XX-related each nature. of the items slides these costs. relief Slide supplemental these and our regarding adjusting the items statement as In onetime detail were that items quarter, we both funds characterized or the GAAP income XX have impacted temporary previous in or noncore, results included expense our and quarters, impacts. adjustment line by

costs expiration only funds, the of included relief With adjustments. as provider COVID-XX-related are

$X million million as to revenue basis, X% $X.XX to million. For were of $XX $X.XX as $XXX a XX decreased adjusted acquisition decreased our decreased the quarter, Contessa EBITDA share. decline results year grew of X% an percentage points or third to EBITDA $X The as per over flat. the legacy or prior and on drove was EBITDA revenue basis EPS to our follows: million. XX% or XX.X%

pandemic, income a to rates a to continuation the follows. impacted $X.XX estimate were QX by of was costs. in impacted stock cases surge our in adjusted in reminder, labor benefit discharge volumes, tax hospice, impact Delta positively the EPS the executive to as financial As COVID-XX QX The during related an the We related particular, XXXX exercise. option results variant and

to clinicians by in elective expectations, unused of The by bonuses, volumes final higher health having the rates anticipation and retention in in discharge resulted and has for EBITDA. In approximately Our rate million. care were a decrease of approximate than elevated level impact and the resulted and our combined X.X% higher staffing lower Home approximately $X million ADC rate the Health normalization emissions, our already $X million. And in numerous staffing impacted $X based is procedures on cost hospice this and which of capacity added significantly million for The to X,XXX raises, hospice, QX loss an which rates, as discharge model. maintaining centers resulting additional home quarter. quarantine, in both an our which increase was $X was than XXXX impacted EBITDA of

segment of X%. Home revenue episode million, and result geographic EBITDA to dispersion adjusted allocation. is impairment million episode turning of $XXX was $XX to X.X% patients our increase source increase our or was timing functional in compared Health, per revenue year. segment in X% mind, in in change third per a Revenue pre-corporate In the or increase a The in level quarter the and up reimbursement, Keep performance. and of Now prior $XX a an our is patients. up

of since scores. continue episode on per QX while led X.X a is our XXXX. we Overall, down reduction two per to improve has Medalogix Our visits our implementation visits of quality to Care episode, business

X% utilization by cost as was growth The and pay, increase hire visit. margin lower which was in by EBITDA points with decreased the XX.X% resources insurance Segment COVID-XX, down related gross visit mainly incentive increases, a rates the fees, an health cost and $X of higher XX in of of million, wage increase XXXX. lower a by of result million which offset driven significant approximately G&A by was growth $XX in driven in per increased partially from planned increase of a in addition higher to Our clinicians XX.X%, is EBITDA support contract basis increase margin in and new in comp. an costs. QX XXXX driven raises spend to recruiting COVID-XX

was the revenue in increase Our per by Sequentially, episode new which and holiday. in enough an million X% visit, increase was pay pressures. not hire lower down labor business and in admissions decrease per episode per raises, an were to cost segment overcome EBITDA driven additional $XX and on

results. Now turning segment to our Hospice

per driven over XXXX. quarter, year. effect increase third down revenue rate day October was X.X% that the For prior $XXX hospice X%, million, was to million $X a Net up went by revenue X,

bonuses down million. resources, increased increased retention additional discussed, Segment due to increase higher hourly employee costs. higher Hospice X% due fees discharge $X raises, rates. of as increased grew and development higher million Chris lower to increased primarily adjustments with Sequentially, million, As transportation and accelerate due employees well was as bonuses $X.XX, restrictions higher continues COVID-XX to X% EBITDA raises, to planned increases, declined by and planned discharge travel $X access higher admissions prior higher was raises per EBITDA approximately ADC business G&A wage $X as million, hospital day cost COVID hospice offset admissions by flat performed raises primarily year revenue ADC impacted retention retention. hiring and X% contractors, to utilization business $XX due relatively additional as by to rates. remaining recruiting additional annual to and costs. due

was total prior was year. G&A is total of million an due XX $X basis expenses. million is G&A $XXX total of Turning to million, of to $X Sequentially, decreased the which basis, XX.X% addition over our up Contessa. revenue general administrative and points On adjusted or

We days, DSO generate quarter, in X.X by cash continue elimination million flow third our cash flow driven impressive the from effective in Year-over-year, $XX of to the X/X/XX. payment producing increased operations. rate

result of of the our was end the strong a of cash the funding leverage our As at of Contessa net quarter continued X.Xx, inclusive ratio flow, acquisition. the

reminder, be a million from taxes. of to As will repayment $XX our flow due deferred approximately cash payroll impacted by operations QX

ramp profitability Turning in be the health our need in These on Carolina. certificate home size two will to novos closed and services North M&A. centers essentially care purchase Charlotte Raleigh, will and expanding We throughout XXXX. de

XXXX We and assets through health growth has efforts the of and extension Act our in consolidation will enter stages work to that due various continue as CARES Though XXXX, opportunities. as acquisitions we continue sequestration inorganic inorganic pick happened well-positioned on to on originally M&A we of and Amedisys remains to not funds, to home expected focus growth on diligence. industry up we capitalize activity believe

see updated over of our volumes, QX XX pressures. our on can deck, are you guidance labor reflects of our Delta This ranges the guidance will in for which to accelerated As with variant along Page slide QX supplemental XXXX. updating we impact the carry

revenue adjusted QX. $X.XX coming and are significantly $X.X view $XXX of our of guidance of EPS adjusted on $XXX versus adjusted the Delta million remainder ranges million to the variant $X.XX. to QX Our in of billion, year out of of The expectations emergence EBITDA billion our $X.XX to the changed

and continues impact used cost As Contessa. to growth both such, metrics assumptions core to Amedisys operating for forecast the COVID-XX typically and

quarantine, our impacts could government in in unforeseen operating achieve We’re regulations the behavior future basing procedures, spike BD and staff environment. occupancy of living change and ability this current mandate, interventions, Any guidance. patient reduction decline impact vaccine to in our senior on clinicians in further our or and elective guidance

are performance QX follows: approximately ownership a million. cost performance insurance impacting of Health Some as of $X by items Contessa million. the quarter sequential $X will QX increases impact full to our of from

QX of lower-than-expected seasonality a is is there million approximately XXXX raises elevated to month adds claims. An $X costs. QX While due impact, additional in

million, of both the leaves and EBITDA impact offset of health Contessa, our modeling of updates tailwinds be continued Finally, net wage will the impact pressures, of which that approximately $XX normalization growth and the hospice positive home impact outlook. position. rate to and relief Positive the a I’d reiterate sequestration like Incremental us XXXX rates expiration in investment as being XXXX. and business there headwinds our in grow are by COVID-XX facing that optimistic through impact on are stay mature, focus QX enter XXXX, CARES high-quality of hospice until recovers and funds care. EBITDA which in length continue development of we us Though, we efficient can Act been an costs, resources provider on we we as covered have headwinds our and

Additionally, on to ability we M&A remain our in strategy. our confident deliver

reflects COVID-XX Street uncertainty of stay recovery However, that not given current which properly labor the we to has real-time timing hospice brought do additional of in consensus changing QX, length and dynamics. surges the XXXX impact the of believe for the

turn to will We the XXXX I’ll see over continue trends call on color to provide conclude. we as change. to Paul? back now Paul

Paul Kusserow

Scott. Thanks,

can see, continued fought our manifest and unpredictable to of COVID-XX very effects effectively ways. turbulent As you through muscled and as way quarter we new another the in themselves

well maximize and is continue do our We enter on to to clinical our like hospice XXXX, differently, control a and and growth. rates to what control death consistent U.S. can date from in the act as workforce and staff. and definitively the hospice driving QX think hard-to-find we calmer look cannot innovate looking new What health acutely retain we as vaccinated. nurses we the great can pressures to we on clinical home we capacity, nursing is clinicians are As recognize who to the discharge to be choose nor towards focused resignation attract not

XX business demographics, We us – These on. us coming traditional the that The growth people new to boomers, XX-plus ever turning before. we’ll potential group market, in baby year old us favor lines of company, long-term care with include: within up quality advantageously patients to set very are with of we continue highest deploy our changed a beating ways about in years in Amedisys to is put disrupt coupled The headwinds in expand delivered care the at Amedisys which unsustainable home. tailwinds cost a is as in differentiated outsized costs, the to lowest have the the creating continue of health with an nothing than position for to aging-in-place of short-term differentiated as the strongly more a advantageous all assembled at a assets surge ways delivering at-home care and the seniors. ever-increasing and look the of have currently these comprehensive capitalize

industry. for grow we and our in leverage to share industries. market continue to regulatory positive space inorganically Next, finally, psychographics. industry these With baby the better at nine the consolidate boomers including XXXX Regulatory, personal and in with at the of discussed low want beyond share, we die and care primary age out have highly capture in flow, unique home asset from continuing for our And in a SNF-at-home, as have updates wanting and at palliative company And strategically comprehensive five-plus and and Amedisys scale XX the health, position effects home we as the of best occur, who PDGM slow differentiated consolidation the we to earlier both hospital Market in we the care fragmented cash see of national home, This kick most place. than and offerings health put and are been our home, home as to any a next call, rate hospice. scale our rest at leader expect that and home quality real. our base, has hospice, in in though to annual serve Contessa, age trend us reform patients years. positioned and to diversified to in is

Our the and change sits now to always goal innovation care drive home, the Amedisys has to game. been poised in into

risk-taking comprehensive for to Operator, These continue care times. please steps open remarks. are we exciting to provide platforms we there’s innovation there’s our This in-home, care and how line in towards care opportunity. acuity are and questions. for ends will both it. drive Where take change, the higher models We how prepared reimbursed

Operator

from is Jefferies. Our ahead. gentlemen, Instructions] first for you. go coming floor is open questions. Thank now question [Operator of Brian Ladies Tanquilut and the Please

Brian Tanquilut

Hey, good morning, guys.

Paul Kusserow

morning. Good

Brian Tanquilut

first for Scott. My question, just

out? that expectation So you year, mean you the stage-off growth can about operational So parts quarter. as top thinking also How confidence And from we the and walk for going into of can about right? the you incremental grow old I point you’re the the through us moving from Maybe that adjustment, guidance, But challenging some was bridge get like gain would during positive call can think called any you next guidance guidance new anything EBITDA maybe in to that? of you terms I how EBITDA through expenses XXXX? year. maybe side that the us you the QX walk of kind out like of the do next in line

Scott Ginn

Sure, Brian.

change just our starting your I around think update with our kind some question of the – first in of to guidance.

biggest through the I discharge rates hospice called think flows really clearly, it. would impact comments, and the that prepared be as issue we out our in of to some

a is is on most X.X% with As cost that XXXX. impact drive – which we even fixed EBITDA, rate hospice of impact in what pretty higher basis. was to higher goes, It being to of off was than on $X a discharge because close million the a revenue saw

into that So feeds QX.

there. revenue. roughly So it, on call X,XXX somewhere in, the you if Chris That’s moving admits. had $X over we missed highlighted that’s X-ish about out and that in million-ish let’s around probably fact another in another think EBITDA –

end into feed we quarter. thing matters That’s those quarter on very from that perspective. each much of each quarter how all QX. builds one a us It from census So every

at sequential just kind forward admit an we moving hospice saw plus the of to So perspective where QX of Still census. and perspective. grew from in adjustment from increases of barely kind that’s QX ended pressures its propelled to kind census that nice from X%, QX but a

to well. that re-summarize really that, to QX, If of QX there’s we in from numbers, delta – where activity meet probably our enough most out really heading of of driving QX, in some It because that would coming so that to are speak. as really not business. we million to be issues just and also has thought elevated that’s three about impacted thinking we that QX impacted costs $X health insurance So claims

from million another QX there’s $X So to going QX. incremental

I we’re EBITDA. there quarter $X drag we only As million $X a of two QX And $X has Contessa’s Contessa, be thought, better but They’re another for will million, said, million then slightly happy with than full raises, performance our months. into QX. on

So look And Brian, around gets insurance type XX that you if an health the perspective, implied still number, from number. you is or guidance EBITDA large. XX-ish at somewhere

of a we’re million, normalize health these QX that new exit kind health enough XXX of look gets to based $XX rates, number year, using costs which million I which on insurance type million spend when roughly going to are kind to XX insurance versus So an to off bps at the build normal looking million type the home back what better, roughly about a the XX at a a $XXX starting projections, an closer spend, that of and with $XX is out And point. get $XX outcome. XXX, better in you’re rate, me of we’ll

comments, I And in EBITDA that. XXXX. as said in about look grow to excited my We’re

Paul Kusserow

to good trends in Yes. three we’ve weeks. seeing the And Brian, we’re been seeing some last two

year. nicely. and we’re some Chris started have has key really growing it, COVID So been the our very we’ve country, very going good we’ve but staff numbers, explain next that’s to to other is I’ll been in BD be for ADC as see so dissipating the thing – But

And hospice. good obviously been tight, both because we’ve health hospice We’re be ahead – recruiting. market is to then and home the labor done job on where the we’ve really side, expected carrying we and on turnover a of on

about we’re on actually XXX ADC carrying about of flat a – staffing And so in we’re hospice. in deficit

got enough So we’ve staff.

there. to out of We’re hope springs some see starting

general, are things and crossed, the Chris But focused but be on. how for team and his we with pretty really hit we hard so going key can really building what to fingers the position starting that’s up the quarter. us think COVID year is last into turn, XXXX are piece in going is to well ourselves And ADC,

Chris Gerard

have it rate of And expecting, on the carried discharge us at we to impact on of the the throughout throughout on add start reset key would quarter, length QX XX as exited, the quarter. the I quarter home related were lot the September. increase we XX increased happened and the guidance. of we then stay But a from discharge That of peaked July set we were in saw median to put Brian, our kept medium XX a that QX of somewhat position. Hey, stay also potential were our the on we down quarantines a quickly same bit couple want length August, our is material in end of to QX. decline for exit different that our a was expected. our went we in went right If into admissions staff, that growing side of updated sequentially of kept caused One And the would as August QX, August color accelerated of from how was us kind and of from of the kind developments. ADC in happen sequentially what on We median – couple stay stay last kind our and gave median in length the would of that admissions top ADC. of rate. number we materially variant. ADC-wise. to actually off normalized a health of in days That throughout us the X% our right staff also into little impact we guidance in to updated our through what length delta A quarter that our because XX-day miss throughout But to top drove of into at our to

– started in similar, is, of kind early improved into off look has it October, November, we So news the couple we’re good the of but over weeks. as materially last

So those across our and of of particularly, stabilization take we’re signs to terms seeing staffing new on now patients. metrics, good in all inability

the quarter. those maintain got So and we kind what that’s of things But reset encouraging, kind that’s it’s throughout to QX. impacted – set those for it’s this build. are how are – to build but got of It’s got really that to

Paul Kusserow

the quarantine from on we’re… what’s And to X% Chris, Yes. rates, gone they’ve that

Chris Gerard

of Less now. percent than half a

Paul Kusserow

half. than less Yes,

our we So got people back.

starting are of the stay kick normalizes. in to length once folks BD Our

disease mainly correlate results. fast add think the Brian, we is it that COVID I the length growth those looked which means to when where was pretty to – COPD, that, stay, much of or lung other we in the was The pushing thing I’d which at of discharges where that

Brian Tanquilut

the us Got to you. and staffing raises you And your you then think things maybe should I mix be levers the right whether on just And you about that? you focus labor, temp can what offsets what should thinking other my some we follow-up it’s like that, if give – Maybe and anything or can question, but just pull about? lot like number manage know Paul, QX, thoughts are inflation as that, we every share there’s a out that call – obviously. with can other of

Paul Kusserow

to going I’m to punt that Chris.

Chris Gerard

Brian. Yes,

lower-wage retention of exactly we labor about the more We either also year, year, our brought kind XXXX got up around in our to the be think and will a we our therapists, terms lot market. weren’t that But bonuses racing – wage do or this kind at there, do for really But X% clinicians So to had of our increase we’re adjustments implemented health, and creative demand Every basically increased to rate health X% saw dollars we multiyear home and right. for raises nurses bonuses changes tick-up of market because throughout I we needed and year-over-year have in base. retention increase. that we give out the hospice our we out had quarter. of was the yes, looking a traditional August like aides for also that did kind employees. so health earners we with you’re that of home to year of aides home gave every

a So it’ll there. bit be blip a little of

levers, our mix. down RN In feel still we have comes LPN we to, of around opportunity it terms like still

We’re needle we’re we that business time PT staff. drive move higher as PTA mix. Every well there’s going And down contractors, costs around considerably can by X% again, it which visit. bottom per cost the our on than of as line, running performed are really our aggressive to our that get is significant the to

areas recruitment own high-cost that and on focus we’ll to continue WX staff. that to our and productivity be replace and with retention able contract So business

be going able to So those by some executing offset just I we’re basically expect that strategies. of headwinds to on those core

Paul Kusserow

my Brunecz, going I in and that leading Chris we’re innovating excited Brian, areas. People has with And Yes. is new strides Obviously, in recruiting as and we I moving great effort made think turnover. And about about we’re remarks the of Group. clinician been predicting said terms our some Sharon well. turnover, and before, we’ve – talked in

of looking PRN other at the is more pool, out our out of base. utility things alumni that scheduling, of getting we’re flexible our Some recruiting

we’re good sure the right So business we’re to in building staffing we we have staff in we’re increase because see the to are business the labor kicking and in that all folks BD business, the going really from make the tools an in. have

that our going to make there way. that referrals definitely take the We’re there’s to sure of staff come to need care

Brian Tanquilut

on Thank you. guys. tracking. Awesome, Keep

Paul Kusserow

Brian. Thanks,

Operator

you. Thank

Please is question ahead. from coming go William next Our of Larew Blair. Matt

Paul Kusserow

Matt?

Matt Larew

Hi. Good morning.

Paul Kusserow

doing? How’re

Matt Larew

You doing discussed – okay.

obviously in related gave now cases. huge and in then delta. more last environment December the guidance this August to November, January, obviously, it’s you discussed You surges rapidly from kind of been But and we deteriorated that saw early to much when

you’re season, take of and comments guidance, another So Scott, XXXX your your the moving cases, just curious of potential kind into into inflection wave of traditional kind now what from as maybe of quarantine. account disease infectious another about

a get scenarios how taken sense kind into to trying work of conservative what is for account. and space Just

Scott Ginn

Yes. home how outlook we’re something greatly of take thinking comfortable I mean, so change business, the about that. would recognize XXXX, it really pretty here, through to revenue the forward, we’re going think a if that way you we side from health fortunately, and forth, for sitting significant

biggest could that in rate. discharge think other blip issue I there’s impact that more the would be the any

We left a our that discharge have elevated higher at in assumptions rate.

taken So we down. that haven’t

I I we’ve got discharge us. the think the be a positive into improvement high protect that if So us good year. going a rest guide, But of could for rate enough think to that still

CARES around to what impactful is move into I costs now, happens I – around the and think been right how year, next watch if be thing additional can mean we’ve it think to COVID. any you going we’re I for using adjusted biggest using next got run rate have between we’ve additional We’ve but a surcharges contractor kind out, pay, to going and Act we’ve some to overcome of million quarantine we’re $X roughly items funds. year. – into been that

thinking look I’m to we that things as the of about kind are XXXX. forward those So

Matt Larew

original but XXXX. to the existing of alluded headwind, you revenue And for of growth to portion Okay. you’re Contessa guess then Contessa, I still on provided partners partners? new do the you feel remind with kind you just from comfortable versus the are the come ramping outlook of the EBITDA just that addition anticipating for us

Paul Kusserow

Matt, in I’ve out them, on general, think, been extremely have the We been encouraged. road just with and

by another to million. next ahead terms deliver are partnership. our sticking game expected announcing the something, revenue of the we’re So the guidance We up $XX to be actually week, of hopefully, in quadrupling and we’ll so of

are So it’s catchment grounds we believe hunting there, with within size area. that out our some of systems the wonderful the of

that partners. area, we’re continue expanding on new and within are expand partners. to we just our we But original is within belief this also So bringing can our

I feel of And we where I are. think in I efforts. business their we very development about So terms know, ahead new don’t Scott? good they’re think

Scott Ginn

the increase about us We same those of dealt we about our during kind we folks right Did That’s where went great EBITDA we’re driven of hired we’d are but now. if Yes. going next labor we the you No, help thinking year, be, feel I lot good relative some A – to think get so in with that are effort other the the ahead. kind million by behind rates. quarter the into really to slightly our where rate. of segment. revenue we pressures at is $XX – thought feel look capture yes, now, right just where we capture to to of pieces

they had feel great bought we into they year that accelerate of pipeline that going a them next good we’ve So pivoting kind forward to and help forward. it. And that

Paul Kusserow

Matt. So we’re excited. Thanks,

Operator

is Deutsche go coming ahead. Justin Please Instructions] question Our Bank. Bowers [Operator from of next

Justin Bowers

a pretend And side, like rates fee-for-service to kind a to hospice Matt’s Contessa is how X.X of on on refresher then all the you it year? the give little just permanent more with discharge ads then my I’m throughout BD that other that – how you a good morning. Good question there’s I’m us the just Matt’s changes? for give going Paul. follow-on. right and combine sounds my with capacity and now you’ve on there. then Can And if morning, tiny turnover TAM going changed can the just, the context Hey, waiver you extra us have just a

with now mix? absorb projecting for of where capacity ADC like that rate So could run ads, that kind you’re or with what given year-end what’s the you BD your you are where – staffing

Paul Kusserow

of said I that fundamentally – less are our staffing – think levels flat, we there we’re now with and ADC. XXX our is was staff fundamentally operating

extra that we has Chris push down our on capacity out So to focusing on where capacity. doubling have those BD to we finding make sure take and been we’ve then been efforts efforts

stealing areas, So we’ve been in these share.

that. with pitching happy it call We we’re So catching. and

catch. Our BD folks and pitch clinicians our

So, we good. balance is that feel – our very we’re

There ahead largely we urban, key going up believe so did on sure on pretty a those And we’re are we through side. That’s we’ve been in where the knew BD that. thing we’re well. is the be to have XX We labor place. the And BD focused. been why in increasing deficit. states, tremendously. spots side we’re labor functions, but since we’ve therefore, building We’re our we for working the tight have And

TAM, I’m about Nick talk going the On let to that.

Nick Muscato

lines of palliative on the about think TAM somewhere home those their Justin, business which billion TAM, we talked SNF-at-home, doubles new us services, the into $XX lines of essentially between expand we contemplation and do at $XX our home and at as billion and care the primary up gets that business. into Paul think Contessa of call, expanding beefing I acquisition expanding of care

part beyond the and was question other that Contessa. public profile your modeled no that the emergency. waiver the of fee-for-service expansion think of looks like around health We’ve the with I what of financial that what and Medicare does

on profile in XXXX, out million our be we revenue in us XXXX add revenue growth well. number $XXX in that $XXX as as revenue fee-for-service think to about got talked into another to close that that to put that rates I we CAGR original attractive and our margin in waiver So, depending a in XXXX, a XXXX, deck, to easily million were if could seasonally expanded, investor

have JV would excited change growth really the there that, game. partners. that of Contessa’s come been we very perspective, very with we pleased to revenue partners development it – number Ex business made process about the So the and a though, potential the have still new remain with table that from and

Paul Kusserow

Yes, high-quality was an we’d partners, expansion. but very be lucky if there

unlikely, that there. opportunity think that but is we’re sure it’s have us trying very to an telling Dave I make hard we

Scott Ginn

I’d Justin. add one thing to that,

health As XXXX. we all, you not throughout see that extended know, if the to hospital being public at home are most, And of the emergency. tied labor programs

through waiver those and So legislative got that there waivers for make some program we’ve runway a I there statutory. think pushes to foot XXXX, are

through we’ll keep pushing. go XXXX, let’s and So,

Chris Gerard

the of And want was to also we month. XX% month a – stay. the It back throughout throughout January the had of circle that’s that far. the I watermark saw Justin, high since was for rate the discharge median discharged beginning us the to us of month our XX-day year. by length

there. at bottomed QX. significant So out XX.X% and COVID June then in other and ticked impact It down significantly throughout climb

into updated of sequentially. guidance. QX did kind the And but out we a it good though did safe good place, were built thought we throughout see at and QX, came it we elevate of as elevated than we death an I additional November, through the and this of hard – year, in December holidays. the rates our There’s some the January QX. elevation year, have parts We rest built other model so of for feel I in seasonality mainly traditionally But around quarter, have our what what with we think,

Justin Bowers

it the guys of color. Yes, some of had I I a would look lot XQ Thanks length in XQ, just but increased sequentially kind the you you guess a for But additional outlier. stay back of counterintuitive an queue. to – in it’s over bit at as environment, if is points which peers, of interesting your current the because I’ll hop

Paul Kusserow

Yes.

Operator

you. Thank

Our Rice Suisse. Credit next question is of coming from A.J.

A.J. Rice

Hi.

any sounds have businesses stepping the – for a more or two organic also growth. the there’s and updated beyond. you like sounds Just be of the XXXX and the to forth, issue constraint about think like into bit most thoughts on little It maybe could fair term, dynamics a outlook a quarantine There short environment. growth it’s amount challenging your it labor but so on

lining your could you for just of I give where the up. us you businesses two So, see thoughts wondered sort on the growth updated organic if

Chris Gerard

A.J., Chris. it’s

BD QX. We given which have us health in the our think to as staff hospice well XXXX. exit grown FTEs I ability to it more that rate the we’re wobble should on making is see bit for with capacity, in little and we’ve side, our that as – a but clinical home a side retain on of for be a getting we’re we great normalized QX, environment progress our

on total on a just payer So, there Advantage, I of from the the lines you’re on Medicare of actual terms is think which challenged Medicare fee-for-service, decline in there a better Medicare beneficiaries. both the of still in seeing out market of Probably it’s fair to look mid-to-upper at more of single kind home plans side, out digits business. organic the growth health

if So we I’d safe say digits it’s business on our plan. of at lines look mid-single execute both to on

Paul Kusserow

think what – hospice I But been in it’s are Yes. is variants that a cost think new through. holding going there’s because been to we’ve it’s staff no is into to again, no just anticipate particularly model really the and fixed And assuming new doing, normalized be We on we we maintain have to growth prudent we’ve rates. safe what going coming staff.

A.J. Rice

Okay. Great. Thanks.

Paul Kusserow

A.J. Thanks

Operator

Thank you.

Our coming of Sarah ahead. go question James is from Please next Barclays.

Sarah James

you guys? a bit little better for, for normally getting for is said was seeing wanted us, And from labor factored payers I at it I the Hi, increasing unit that to then negotiated guess, that of you’ve rates in just the What cost. gave it the about understand change reflected X% seeing you it you trend that the rates you you’re in? that context are you XXXX, the are

Scott Ginn

Yes.

X.X% the we’re raises. – We So for work XXXX, that, market going X% north to in X% more to We reset maybe think to through we’re of be some much planned year possibly it’s every pretty just has to total even going X% the inflation. we’re think wage areas. – we down internally have The will as that RNs clinical to being lower-cost and PTAs as we and our again, And LPNs to building the versus feel able offset levers with retention be about that capacity PTs, driving very that. that, good utilization. us pull well have through up caregivers, and contractor

pulling if think those levers. So, keep to that in What we we can execute X% second was that we’re the question? down range on able

Chris Gerard

think we're I good.

Unidentified Analyst

that in... not being reflected or Whether is

Scott Ginn

we're Medicare yes, see more that so Advantage – going to No, not Yes. unfortunately, not we're you you're plans to we are money. troubled, Yes. say, quick give

our access proposals new to care we rate So new basically going when have to trying on plans we our are and our is structure or contracting. in are build plans updated cost important them. through Obviously, caregivers to

a the new now, days. in right the but XX mean there, XX probably an inflation wage really its has it's is up I such alignment rate steam So phenomenon. only last to picked the there inflation,

in for rule, So as that Medicare did – bps the see rule out. we see which kind We the final is increase there'll the a be a of rule new rates, up flushes XX while final proposed before is in which versus sign. good that inflation-related,

Paul Kusserow

But a share I some where much really of Kemmerly, and a we our there. risk – on reimbursement very performance. as can risk nice Chris of think the but get lot as getting, through some general, cover our us we to willing hopeful grow risk possible and move should to we outcomes moving with to Dave of it. in That payers gain have MA can to the Yes. we're done level conveners. more We're We're and bet working very still that this job

Unidentified Analyst

you And Are mentioned all clarify, period? multiyear just away contracts. over right or retention expensing it guys multiyear higher of allocating that for bonuses you the to signing retention

Scott Ginn

employees this. The some We're give reasons take stick the doing multiyear to we're kind trying through not retention the period, all reason hit now to it. that's of also of and the

So XXXX and sometimes into be XXXX, paid can up over it XXXX.

Paul Kusserow

keep the better occurs. longer the turnover chances, people, the see the we the the less We longer,

to they stay retention care turnover. are cost thing build the in plan, they with why you longer the and better centers, And good once and So their have part is be to of the stay. incentive of terms bonuses relationships their patients can some tend defer and a they in

Scott Ginn

Chris about And is – clear of $X.X home permanent, additional wage was about said, some just to planned the would was that health the mainly, of comments, out aide I and $X outside called that million, be hourly other on call in as increases, it around I people. million raises my costs

was other related The XXX bonus expense. to sign bonus on and retention

Operator

Thank you.

coming question Please Frank next RBC Markets. of from is Our Morgan Capital ahead. go

Paul Kusserow

Frank. Hey,

Frank Morgan

in Good health we and hospice? standpoint morning. year. It perfect next if care mix what be between a reading that – you world, from aggressive curious, your just Hey, magnitude in Interested I seemed like of expect here. just right? Hey. there maybe kind of more am And perhaps question consolidation. so, And and made about also home comments a in should a then M&A you I'm might

Scott Ginn

Yes.

It's aggressive aggressive in thought we from standards – meet to actually. that got procedures. over we bad just; unfortunately just the get to line we start this be think year We're our trying plan to a review year. into deals finish next more our didn't I we'd that be some

we'll include have done. potentially we'll I the kind home – looked spend push, get said date had be into year's a continue somewhere to of like. would that million, So we would But heavier But Walking at we like what to around wouldn't somewhere flow cash to I'd health. still Contessa. does spent say need million we $XXX we'd to what send around year, $XXX

of can in And so the sheet get lot order of a to lot a always things we got – deals. availability do to on balance we've

So a reassess we I of of think kind we'll where are. take

this be us, we across will just we It's and every the line. get you think active aggressive. market. what day We're see I active finish will in and can

for side. I'm the bigger hoping home So health XXXX from

we everyone is going away. two acquisitions. and the But we the sheet some talked have industry. has CARES labor well us Act our availability, up which you money, when think in – pressure I very can now the dynamics affect there's going I set to about to more think take do balance Those these sequestration have been dynamic,

Paul Kusserow

better Contessa joint ventures including that, out about been conversations lot Yes. And and there, to tremendous I've of on finding the with. working I'd in partner, think the There's the systems outright add there's to some and opportunity with purchases. partners particularly geographies ways with they're road Frank. of I some these a been of and big

I in So world the also that And out next added starting to significant a of year think there's health are that concern. has there that. the to particularly look folks really lot Contessa home now, at

starting we're hear phone to So ring a lot more. the

Frank Morgan

Thank Okay. you.

Paul Kusserow

Thanks, Frank.

Operator

Thank you.

Mayo Leerink. SVB Please coming Whit is from ahead. question of next go Our

Paul Kusserow

Whit. Hey,

Whit Mayo

thanks. be quick. I'll Hey,

keep change about you have Thanks. has how And that to and episode referencing? this opportunities tools that that. curious more on talk help Just acquired much on room you LP visits capabilities, push and some do think you can guys enable per PT just new Medalogix if you any maybe

Chris Gerard

Chris. its Whit Hey, Yes.

project as BP, there of that of without use in we We're – opportunity in done we quality a within again, still seen markets we now movement think LP our terms In piloting we've started PTA and utilization. year. focusing that have significant LPN markets the patients. well In on scheduling to we has the Medalogix areas utilization. some as, Actually, will we where visits the analytics smart telehealth HomeCare and of there's module those this that started of for expand really our the it, and HomeBase PTA fewer with help do – starting is see our still compromising suggest some and care programs

product tools, tool. of which the Medalogix's rest we they new was had as a hospice as our that really far So And as across in the our phenomenal not year, we're this place, expanding on then with been organization that used has radar speak. earlier

we rollout and that we've piloted that. So starting of in accelerated September,

We the side capacity end the and as growth that's helps gives, better will with rolled gives the year. be and improves last by clinical at fully us delivered well on days out life. efficiency That capacity actual as us care this the organization our hospice within of of

I by of going for retention, to of, but year. encouraged think scheduling, in between we're got play all So We've employee that lot capacity launching that's our a next that. smart right now, with help us

episode, more can basically go up as that As optimized, much lower the tools protect on it's working in the starting we today. new well for probably visit full news to launch is data far intra business as continuing model Medalogix XXX% but to how research per the capabilities another suggests some like and as episode to we're were if just we

into right likely kind get get of it than now. think little you'll I be spot. see right just bit will time, it over So lower It is that where a

Unidentified Analyst

Thanks. Okay.

Paul Kusserow

Whit. Thanks,

Operator

Thank you.

is from Markets. Matthew next coming Our Capital Borsch BMO question of

Paul Kusserow

Hey, Matt.

Matthew Borsch

mute. on put had I Sorry.

those of valuations off from did been bit. the maybe COVID, staying while. And private you was But refine how on a little a impact just me have to So it's for pretty through start my of let ringer. come that the more about curious may some there's now hospice changing bit. business a landscape question, with there wherever I I'm that the address quite elevated a maybe everything some relative or M&A any for if quite where hunt it equity been companies that pressures to sense And be you has PDGM. think have been The really that we've

Paul Kusserow

think no, I to is pretty people that, their a we be huge. going believe that haven't up is Matt, this home XX-plus elevated, this done to reimbursement like at that, still They're the deals believe, at – people to really haven't seen is demographics short-term die wanting bump that behind that – – we good, times We are getting these time. We EBITDA.

is seeing private toehold. invite say to and is, willing So equity go what I'd we're

are haven't those for for thus Big de very who smaller it. far and So been folks through very equity hopefully But it. overpay strong have areas. that national regional plays, players them and strategies doing then novos amortize deals private those around or successful seen

Scott Ginn

that when that's value be disruption what's Yes, Right these fluidity we're some trying and deals this it. to can and rate certainly hospice, in driving have it you of discharge challenging. now

us for some right seems back there hospices probably half a health makes take could at So more get stability the us year, early. place see like for to sense of home in some us. you We the look focus next that

Chris Gerard

we Yes. our other get the moving diligence, the payroll in coming do liability. to so we're the to And shakeout under taxes states don't significant have places don't what health. lot coverage, because in to license, that In due, sure monies license where anticipate area, we're they're getting. a home of absorb also invest we have it's CON the borrowed there's we that in exists and we CARES sequestrations coverage a is If – where easy we receivables due, know done. we But to have back so do people make dichotomy Act

So – there's with for costs labor significant and then and issues smaller quarantine some been players.

year. early but we're We've for So the anticipating right this is in a we'll year. while, saying been the hopefully, that be

Matthew Borsch

okay. you that. for all Yes, of Thank Fantastic.

Paul Kusserow

Thanks, Matt.

Chris Gerard

Thanks, Matt.

Operator

Thank you.

ahead. Joanna from Our question coming Gajuk of is next Please go America. Bank of

Joanna Gajuk

Thanks. you. right, But outlook of guess guess the a one businesses, appreciate for in growth that lot I I I so the made both – long term thing I comments were Thank Yes. organic on asked. questions you here, mid-single digits. have

a were what seem bit quite positive maybe before. than talking you and lower still So little you

to building but changes those terms clarify said we these said this of And compared hospice I how of could before? both pressure the anything the growth latest all be business, these into penetration I this I things? and official are I just some how aging anything were that. structural carving to you in understand comments in reimbursement, guess, mid-single the businesses any does MA, obviously be about guess summarize inclusion And about guess, referral to sources here. digit in for in just the rates of to mean the like of through thinking So want kind hospice on the and there demographic, But business? on the

Chris Gerard

different materially caused. on about COVID that's growth is ago pull-forward actually a thing of one hospice and the from that we what the year – has with of the off start rates talking in acceleration death were I'd Yes. death

I market be to still you next growth, and at hospice an year it's from you versus going expected accelerated back XXXX, if look step utilization the and actually, negatively impacted death. think declined

bit or is out the our when that market So pace shrinking growing expecting were we a basically, at not little rolled the we XXXX plan.

some having going in pickup like now, look take-up XXXX. today. of utilizing to little tremendous of and the carve-in, volume In there's terms doesn't access of very, of plans a it our be very carve-in It we're right through we're amount

hospice bit What really earlier process. is think of traditional little the transition we to from transitioning has around to the health relatively a patients been we low. not do identifying the appropriate. traditional hospice has Medicare opportunity it have go job We when So transitions. just basically in decent But impacted MA patients to do our dying home from of those a stay length an

population So of patients as rate population. enrollment growth the industry market, turnover will still around probably be our programs, with capacity, earlier. some Medicare products us of we're identify to the much kind fee-for-service gap with, unlocking bit performance side, then virtue the challenged on us home the kind the possible. more aggressive And particularly help again, even shrinking little health Medalogix's that as just capacity of clinical Advantage We and And new growing that and particularly home working on health Medicare that of close trying by a still have our on kind of for rates much a lower the we're to is. those way

mandate be home is think it? really year. us next mandate – us out – it really going built a that impactful slow a to XXXX. then structural lower to I would that Could pay are Absolutely. say really. caution not there structurally has to digits be out think mandate for business, in good outperform health to will the likely that to place that's XXXX. in Not impact coming can vaccine the for mid-single headwinds? create or the we because Are So the start that things we around But just is we there

Dave Kemmerly

Hey, add it's Joanna, one piece to color. Dave. of Chris,

only participating MA hospice XX nine On in XXXX. the there were there VBID plans the component hospice for component, XXXX, whereas are in

So so us. a there, of it uptake significantly hasn't lot impacted not

Paul Kusserow

is these beds deferred I as care potentially Joanna, think we'll And free up. what see, hospital

if and is We are – understand we're going watching to delayed care if be beds sicker. see this to who those to they're fills

what So next watching quarter that's be the for we'll in or two.

Joanna Gajuk

color. the I you. appreciate Thank Great.

Paul Kusserow

Thanks, Joanna. Great.

Operator

you. Thank

Andrew UBS. Our of ahead. coming next go question is from Please Mok

Paul Kusserow

Hi, Andrew.

Andrew Mok

between up Thanks for forces I comments. wanted in. admissions of like sounds on squeezing some and hospice Hi, stay. the good morning. me length to follow of there's some It countervailing

So there Thanks. as trends level, the see that talk a how XX in in months? Can to you patient you also and out the playing ADC might and be admissions at next over between length due about of interplay the stay moderation mortality. admissions normalize excess

Chris Gerard

Yes.

actually is, and exactly adding sources. We admission the to new So today a side, market do. position identifying QX, feel which do in share-taking referral like is BD we're sources X,XXX FTEs added our squarely and new referral strategy our in we and on continue to what

data from growth north. bit length there. length that Northern aside, in we we – should helping right We at stabilize up What And kind happen volume look states is Pandemic today of where since even a point. perspective to the pandemic targeting some us that's growth kind stabilization think the also and where understand we're think states – using are get stay there emission of there growth of equal of We've is to So between through our right of of the percent going now, to be a distinct between median of Southern states. little the the the stay has moved years to ADC past growth had do pretty in correlation a in and growth, though as rates that. X percent of growth see discharge lags southern equally we admission even is ADC correlation over tight admission the ADC equals time. Y that seeing it's you

what a is rates happening And we which to states, though in ADC seeing southern both growth would so the expect even regions, we're distinct build between that equal see. we're seeing

We around discharge to It's these be predict out there's are So that. cautious going that I can't predict. think we're rates. and still there, pockets to hard blips of

not from. changing are getting of our We where the referrals segmentation we're

going feel it to south right should to see now. this to we're happening some there's I like sense normal be So to of and materialize, in the start starting see

Andrew Mok

color. the for Thanks it. Got

Chris Gerard

Andrew. Thanks,

Operator

Thank you.

Taylor Our for question is Please ahead. coming Cowen. today from last Gary go

Chris Gerard

Hi, Gary.

Gary Taylor

Hi good morning.

revised Scott XXXX COVID about and been of EBITDA had would the you XXXX that out the the sure to costs Or were adjusting you And wanted if out the versus calling one When question. guidance, I had in there talking still any. of some would the Just absorbing you think some said growth COVID XXXX just clarification for I costs in be XXXX, adjusted one be EBITDA. correct? you in that that make are anticipating I

Scott Ginn

Yes. Yes. That's question. a great

right say going Just variant as as things now, new everything at operating I'm would to as I'd business consider pace really things, of accelerates say without everything normalized that these a is have and But of costs we fluid. we're assuming stay forward. going I the to kind

where kind my as $X into adding on back to not just continue of today, and that's be. it that now, at that's that kind and we'll right somewhat of thinking goes cost So that we is a run And it I'm that. But think million XXXX, stands something down. will range work exiting QX of it

Gary Taylor

then health to mandate, employee Do was timing? thoughts you that were updated September. We've question the back in hearing a just any proposed ago. going various the imminent possible then have – weeks we a heard few that And from just going is Obviously, my mandate. vaccine that care sources on

employee us your update you on rate. can vaccination timing? And So any on thoughts

you had was said think on I just XQ XX%. the over

Dave Kemmerly

take time can week. I OMV vaccine it's rule this The Dave. Gary, cleared earlier the and Yes. mandate

it's sitting So at back CMS.

So it's believe this truly week. we eminent

with We shift the expect that to really yesterday. health home payment released today probably rule update didn't released, but get we be since

think it be coming the days. I So literally will in

Chris Gerard

protection, online. protection. care we right I'd noticed to vaccinated. around continuing biggest mandates close now state own X% to I'd to thing was they And the acceleration the for play Massachusetts vaccinated the in side we're and And the come to the patient's states get only right focus have vaccinated starting The educate those of getting on XX% that kind we've most say are to employees some so in as vaccinated the But into for piece say probably and fully us effect mandate we're deadlines are do last intend partially another going approached. to their it. could in where fact, into mandates states, states X% our or on that where lower have either get the is the though on hasn't already stated seen and rates negatively those for have we've to quickly probably be impacted states as are in the personal come part. really us the That's far. of it But southern say vaccinated, be, come to challenge vaccination

Paul Kusserow

to with issues And we're be going trying to and proactive there's be as up estimating to there. build possible there our as where recruiting start

Gary Taylor

Thank you.

Operator

Thank you. for to comments. Mr. I would over now the turn back like Kusserow closing to floor

Paul Kusserow

the who joined Thank thank doing our right. great I thank also today. doing. on quarter All us I'd you're to and caused caregivers tribulations who by that another call Please again trials have keep our COVID. of all results delivered yet despite what been to want like everyone you.

thrive. need First a hope we the things look the who If to us wonderful everyone day, continue first. care has Keep taking always that, then, people quarterly and do and you next take progress of we early most. next We updating on we ever-evolving you earnings forward year. on hope too. and excited call are purposeful to Until our work our we'll care. We're

Operator

interest and you Ladies and Amedisys for gentlemen, conference. in today's thank participation your

of enjoy or off this time, lines the day. your your webcast rest at disconnect may log You the and

Amedisys (AMED) 3 Nov 212021 Q3 Earnings call transcript