Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. junior Avg
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New words:
advisory, Alliance, consecutive, decision, Deficit, delist, delisting, enterprise, Fort, forthcoming, global, Manual, notification, NYSE, Pedernera, pretax, putative, relationship, removal, suspended, trading, TriWest, variation, xv, York
Removed:
algorithm, claim, constituted, East, Ft, Google
Financial report summary
?Risks
- Our revenue, profitability and cash flows could be materially adversely affected if we are unable to operate certain key treatment facilities, our corporate office or our laboratory facilities.
- We rely on our multi-faceted sales and marketing program to continuously attract and enroll clients in our network of facilities. Our sales and marketing program includes the use of digital media, including our recovery resource websites that provide information about addiction treatment and connect website visitors with our helpline. Any disruption in our national sales and marketing program, including our digital marketing resources, could have a material adverse effect on our business, financial condition and results of operations.
- If reimbursement rates paid by third-party payors are reduced, if we are unable to maintain favorable contract terms with payors or comply with our payor contract obligations, or if third-party payors otherwise restrain our ability to obtain or provide services to clients, our business, financial condition and results of operation could be adversely affected. This risk is heightened because we are generally an “out-of-network” provider.
- Certain third-party payors account for a significant portion of our revenue, and the reduction of reimbursement rates or coverage of services by any such payor could have a material adverse effect on our revenue, profitability and cash flows.
- A deterioration in the collectability of the accounts receivable could have a material adverse effect on our business, financial condition and results of operations.
- Our acquisition strategy exposes us to a variety of operational, integration and financial risks, which may have a material adverse effect on our business, financial condition and results of operations.
- A transition away from LIBOR as a reference rate for financial contracts could negatively affect our income and expenses and the value of various financial contracts.
- Liquidity risk could impair our ability to fund operations and meet our obligations as they become due, and our funding sources may be insufficient to fund our future operations and growth.
- We will need additional financing to execute our long-term business plan and fund operations, at which time additional financing may not be available on reasonable terms or at all.
- Our business may face significant risks with respect to future de novo expansion, including the time and costs of identifying new geographic markets, the ability to obtain necessary licensure and other zoning or regulatory approvals and significant start-up costs including advertising, marketing and the costs of providing equipment, furnishings, supplies and other capital resources.
- Our ability to maintain census is dependent on a number of factors outside of our control, and if we are unable to maintain census, our business, results of operations and cash flows could be materially adversely affected.
- We operate in a highly competitive industry where competition may lead to declines in client volumes and an increase in labor costs, which could have a material adverse effect on our business, financial condition and results of operations.
- Failure to maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business.
- If we fail to comply with the extensive laws and government regulations impacting our industry, we could suffer penalties, be the subject of federal and state investigations or be required to make significant changes to our operations, which may reduce our revenue, increase our costs and have a material adverse effect on our business, financial condition and results of operations.
- We may be required to spend substantial amounts to comply with legislative and regulatory initiatives relating to privacy and security of client health information.
- Our treatment facilities operate in an environment of increasing state and federal enforcement activity and private litigation targeted at healthcare providers.
- Changes to federal, state and local regulations, as well as different or new interpretations of existing regulations, could adversely affect our operations and profitability.
- We are subject to uncertainties regarding the direction and impact of healthcare reform efforts, particularly efforts to repeal or significantly modify the Affordable Care Act.
- State efforts to regulate the construction or expansion of healthcare facilities could impair our ability to operate and expand our facilities.
- We may be unable to successfully implement the compliance program requirements imposed by the State of California.
Management Discussion
- Client related revenues decreased $7.9 million, or 12.0%, to $58.2 million for the three months ended September 30, 2019 from $66.1 million for the three months ended September 30, 2018.
- Inpatient treatment facility services revenue decreased $2.8 million, or 5.2%, to $51.3 million for the three months ended September 30, 2019 from $54.1 million for the three months ended September 30, 2018. The decrease in inpatient treatment facility services revenue was primarily related to a 5.6% decrease in ADC partially offset by a 0.4% increase in ADR.
- Our ADC decreased 47, or 5.6%, to 791 for the three months ended September 30, 2019 from 838 for the three months ended September 30, 2018 primarily as a result of a decrease in admissions.