BKD Brookdale Senior Living

Kathy MacDonald SVP of IR
Cindy Baier President, CEO & Director
Steve Swain Executive VP & CFO
Josh Raskin Nephron
Steven Valiquette Barclays
Frank Morgan RBC Capital Markets
Joanna Gajuk Bank of America
Brian Tanquilut Jefferies
A.J. Credit Suisse
Call transcript
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Good morning, ladies and gentlemen. My name is Paul, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Brookdale Senior Living's fourth quarter earnings release call. [Operator Instructions] As a reminder, this conference will be recorded for replay purposes. I would now like to turn the call over to Ms. Relations. Investor of MacDonald Kathy

Kathy MacDonald

Thank you, you for like welcome everyone. Senior good the fourth morning, to call I'd quarter Living. to and XXXX Brookdale earnings

to reports Officer; on our Joining statements and President release harbor the within These from Form be facts, any Officer. which statements and in statement. and the report safe Cindy meaning differ to are are may of Certain as non-GAAP this risk today the today, note factors Financial the from Swain, Baier, the statements not us securities Chief Executive of are in date, to I disclaim file Also, Chief Executive federal full forward-looking including of forward-looking the results direct call, on XX-Q. are please detailed the we as annual present may that contained Form statements in yesterday release we factors the and results financial All earnings these laws. Vice be Steve our as expressly reports our to Actual President historical will and you obligation the during and update the well we to for we time, today's statements. SEC with XX-K that future. could measures. time actual issued differ made the performance quarterly deemed in cause materially

and on turn over comparable X-K the measure, and may I Cindy. release the that, be at reconciliations which non-GAAP For to the was an to like direct I supplemental of each furnished to you call With from GAAP yesterday. would measure information, most found

Cindy Baier

retain of HCA services hospice our will home Good other will Kathy. and shareholders, a health our and am that a thrilled business, Thank morning and business, all call health which with purchase Healthcare care majority XX% you, of announcement interest. yesterday's stake analysts to we participants. I our we

offer in priority of the communities needs. services resident a many with of and residents. patient is health is on top well-being our our and Part focus Our to this commitment keen

opportunity, As important of find partner partner a healthier HCA in dedication I was it to believe this in we collaborative the pursued found care. we organization comprised Healthcare is more care. right same a sites the HCA health Based great giving business to to than a with is people network care X,XXX Healthcare. Nashville, the tomorrow. strategic of dedicated extremely

continuity our deliver new designed is residents ensures quality care our care improving to services. and access Our partnership and for to patients shareholders of health while value for additional

transitions In strong to services a addition, Brookdale. a cultural the is with company agreement fit that associates our healthcare

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endeavor. as and excellent possible many fully for call, last clock that progress. spoke around the teams I for residents to regarding the our fourth everything and pandemic. accelerate as launch quickly to we Getting the I recovery On am optimism have vaccines availability of quarter. urgent quarterly we as Turning grateful us, associates the from COVID-XX holidays pleased through earnings this who are about do share our vaccinated an our and possible dedicated near-term priority to our made to to work successfully remains

by one our completed clinic. Every accomplished a their year. to have of in associates our and the second first over communities XXX clinical the of significant communities We their We center, include of start clinic. our completed this resources received first great vaccine have single communication nationwide And efforts COVID-XX recently, vaccine Led at shot sources all of so and residents as vaccines, XX% officials current pursuing health. state planning vaccine to associates, federal frequent as organization working team's for proactively education, relationship quickly our community with monitoring an and CVS thrilled as that with our clinical approximately leadership leveraging of well departments I strong of local and data, acceptance. also Health, believe well The provide culture residents and incredibly for emergency families. efforts the of have clinics. all clinics, their as response by levels strategic created our tools vaccine our I'm

science and the about families their Addressing the vaccine Our aware questions, vaccine clinic the make associates physician reassurance their them compassionate discuss residents providing in of and to their plans. them to providing have to behind with encouraging our vaccine. been information

our have position. leadership Our to associates to vaccination are increase With improve financial efforts an just Throughout our good news occupancy strong, Brookdale and move-ins. and and clinical how them should residents the our is swift of successful to strengthen passionate, resident we pandemic, the able latest the to robust to during demonstrating operations and through get vaccinated taken strong we rate, early servant be messaging secure actions and and example vaccines for pandemic.

help We began me as Let a XXXX, and with much united as safety. our few, quality, and care preparation. residents, possible. highlight associates starting we patients to our protect January In

as downloadable people possible. practices many protocols, leadership. that our have improving and ideas are peers to we infection has and we all infection we allow help of continue demonstrated that with protect resources to remains to knowledge and public the our proud control thus goal Brookdale provided of We and others all prevention, leverage best far. our Our and toolkits as accomplished so shared treatment industry could

acknowledged virus, to decision innovate to to Facebook being memory was distress, by technology, of quickly. few. recognized for over our response. Examples leader an include media pulse as and needed leadership COVID-XX social for we providing by Our a this To prevail residents of lotion exemplary help air purchase to an with respiratory name and early purification deploy antimicrobial care installing detection barrier oximeters unique

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the proud We with living their over us, the am what during J.D. and that Associates with ranked most move-in satisfaction also majority external own for federal, highest feedback, dedication share nearly safety Power processes for made adhering we team saying of plans And welcomed XXXX welcome have and accomplishments. were pandemic, residents. were extremely pandemic received communities. with XXXX, new to importantly that response. a while easier state we guidelines. memory survey Through especially grateful resident their how to assisted satisfied in customer I the communicated experts during agreed XX,XXX ensure our learned for I to our and XX,XXX this care developed respondents Brookdale am community Even Moreover, customers recently responses. significant are direct about announced my and our family we overwhelmingly Brookdale. specific of and

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then, advocacy XXXX and safety get we clear on enough of As became that positioned the intense scheduled, began to at has associates a state and our reality efforts it the our drew the have with of level. There wasn't residents close, so health aggressive our and much us the prioritization focus federal clinic to and to This clinics was commitment rapid December with XX. unwavering on vaccine Since pace. well vaccine XXXX. best, company at first clinics the our anticipation for a our we hosted be throughout excitement

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clinics of a the flu nimbly steps and advantage we mentioned, vaccination navigated take every partner. I is strong necessary CVS with shot clinics. host to have clinics relationship As to our which annual Health, accelerate to possibility our logistical many, We many

of within uploaded a organizing XX associate in residents we our am X so in hours. our than when clinic cheered I example, vacancy in vaccination of and we a being less that hours successful For rosters notified were a proud schedule. resident

of were We Our the opened and received team. months take have one hit to slot. allowed we planning prioritized. took our vaccine prepared, our whatever that the communities to residents were of qualify feedback well ground that We prepared running clinic newly external worked it to with to do

living a a U.S., senior Over been significant at our have XX,XXX the vaccine shot impact has have we positive to communities. on population large COVID-XX the largest the helping As in administered seniors. ability very of company

PPE While and need forward, very are to distanced socially vaccine diligent, we practice the reinforcing a continue be step use to important the interactions. appropriately is absolute

in protocols. invest communities and continue enhance more technology to Recently, control and infection disinfection electrostatic every strong sprayers implement for already to added community. We we in our in efficient innovation our

additional air purification. piloting We are ionization technology, including

safety earlier, continue and our to be the mentioned residents, well-being and of I associates. patients top As our priorities

our natural cornerstones woven pandemic, have courage, of been throughout our become to as have work. of efforts These us passion, and the partnership as fiber During every efforts trust. our

for our depth foundation provide to massive and and directors why precious over pandemic health serve retention critical length I corporate and other. the wellness the it incredible to who be and for truly physical, each emotional demand grateful the has displayed we will this efforts always seniors leaders, is protect extraordinary. their teams, to placed Considering With help am the that retention on our community's leaders intellectual and be of the support leaders I local executive directors' protect this help pleased is the and XX%. of This success. the continues the

We our along am build Board we wage To during of the other because program, a residents extra and for paid one in we of personally everyday in are helps from associates day, approximately Every great And Brookdale my XXXX, each year past team associate a special the grateful have the important heroes. at countless provide This over off members' donated contribution COVID-XX employees number with numerous to leadership provide our that large of assistance that people. times holidays. with to $X.X time our contributions. our grateful way is programs. losses. And executive our I they to especially to acts these bolstered support member compassion relationship resulting associates our the donations during do difficult times, only business, kindness the very time. is million a very

created and have help future we to we associates focus on right to As development. recognized of recently, Magazine bright is us, Training we Top our pleased ahead Brookdale skills need programs our the enhanced why in We the training, Training XXXX, to I'm look XXX. associates' the in win. to XXXX that us That continue ensure development

holidays. call use testing. We Before a especially the quarter. and November COVID-XX resurgence of over strong a the had fourth Steve, cases, let highlights financial persevered I in control protocols and with turn to infection states our few after for Most the December me share

X,XXX the Sequentially, repeating. occupancy, XXXX, reduced we extraordinary for the over While in living worth during residents is resurgence and during pandemic. over make achievement senior the we continue moved rate an during affected That of the to XX,XXX the progress. decline new occupancy quarter

X,XXX and new third of cases around their into COVID-XX severe families in the Brookdale living over the and throughout the and our States United and moved During senior trust their holidays, most peak residents communities. put

grants. growth associate revenue our Health residents, business our excluding associates couldn't with exposure, For This had a top fourth Helping of COVID-XX turned revenue. sequential impacted our Accordingly, patients the priority. federal and to X% is basis, positive Services when our was services quarter, an ensure they and to Care on patients. safety in our deliver a trend the

now turn me Let to liquidity.

strengthened fund. Our at company's of the with started from release is receive in of fourth living industry. provider This The the the year-end. $XX fourth will financial our Should significant was for most even $XXX The Phase of vast to apply in quarter quarter X million with more communities become grants. of to million grants. funding available position or government benefit phase grants, government to support available, recognition we majority continue the further additional financial the critically liquidity important assisted

officials the senior industry government federal advocacy health in We We and have state that leadership a pay private the since care beginning. continuum. very plays numerous role in the critical living level educated taken about role

they a additional help populations COVID-XX. make portion to the that receive grateful new to are funding protect against the that protection that We available. We setting. expenses HHS offset that will pleased once the congregate incurred our administration I support residents am understood, anticipate of in vulnerable called of for we COVID-XX we

negotiated savings to the expense million saw from over rent which benefit quarter of full $XXX years. Ventas first net be cash will X.X quarterly we the grants, through addition In reduction, permanent the fourth transaction

near winning strong start we phase, the we that are As and in recovery for a focused ensuring long-term we success. on the foundation have term

that differentiating consumers most. winning continuing are increase services value Brookdale's by formula We best-in-class our improve to occupancy to

to back put on pandemic strategy we as our the behind Here's get us. track

health plus we on focusing care. First, are

will extend and strategy. We vaccine successful our game-changing

care of for interaction COVID-XX residents level We making to for quarter. accelerated social critical referrals. schedule health of that vaccine our know another for and enables Our the that vaccine thousands offers increase clinics believe of protection us many should residents, residents every welcome health professionals is new

referrals. outreach care progress prospects our for vaccine plus to We speak gain attractive have enhanced This our in. program with health makes action move plan about more more to our care providers health to communities

edge local skills, to more have tools our market are respond sales function, Second, By the sharpening become we through processes our business conditions. retooling associates and transformation sales to our nimble. to right

decision We are move-ins market enabling local them a best to make accelerate level the growing while at REVPAR. to

families, connect our We and local prospects in and are digitally strengthening rapidly and intentionally referral with aggregator person. to relations their and

identify will success. deeper focus plans and to in provide to are a opportunities We evaluate higher local sharpening our reach communities wider analytical the and to occupancy. These drive

position we and needs. Third, are residents prospects acuity for better capitalizing higher on our leadership with

call up Combined, clinical services a our attract, more of leverage I'll and and expertise programming and expand engage for will foundation servant better us of X best to turn We meaningful develop, retain growth leadership, scale. financial residents. built to the These people this sets to social strategies thrive. to strong pillars higher engagement deliver and on the are Steve. to our outcomes now health over

Steve Swain

our refinancing, regarding significant a Healthcare, estate government were strengthened we X news in real position. Debt our where completed, successful our speak newly areas strengthen the and financial agreement comments exciting on And In efforts with build our for position. this later. further advocating when Cindy's about To will position. more liquidity liquidity I'll little relief. there transactions Thanks. announced HCA XXXX,

credit a credit added at year-end, this we funded XX-year nonrecourse letters by transaction the revolver of $XX of remaining September, refinanced all executed better start refinanced that of XXXX In And is financing of maturities. capacity. million noting At majority and mortgage interest worth In considerably new substantially, rates. and new the XXXX March, maturities. million highlights. It's revolving with XXXX remaining XXXX we me Let the debt of agreement. had $XX and the December, we

maturities As of remain. today, no XXXX

partners. The area financial we significant we which in rent Healthpeak permanently of a our with By from cut other completed our mid-XXXX, our In expense of REIT with million. the lease received our most our we fee. in second and transaction company's Ventas restructuring improved January history. $XXX ventures by million negotiating came successful termination management The cash results XXXX, substantially all $XXX exited position with the unconsolidated and

fee will this lease to options. to renewal of these associated we next which recognized termination million We expect revenue be we $X approximately transition properties, benefit related quarter future with throughout in we the we multiple will primarily of portfolio. the lease With continued first fourth X management complete savings, realize XXXX. quarter, We years. see flexibility, including negotiated Overall, over reduce our of transactions. to of $X the the LTC, billion managed In

operators federal government others all Brookdale's submit living details of advocating and senior and team the to at receipt time in part for industry, state finance Brookdale the our Third, to track government is, levels. significant filings. in invested thanks, grants the and necessary the both

XXXX, million grants repaid. received $XXX approximately related COVID For relief not recognized other and and need government of we be do that to

which grateful other for vital try many took available. additional to residents grants are anticipate make will needed We to and steps our we government and helped members keep to that for we HHS the the and funding we PPE pay industry, team safe,

to we of fourth operations. revenue for pandemic driven the occupancy by the community and my portfolio. sequential to lost the as each commentary nearly occupancy. with to for the community housing quarter quarter publicly same same revenue lower will on quarter, was housing a XXXX, compared start COVID of visibility million lower the the the estimate progresses. XX% results. components. We fourth on timely I'll provide was Turning impact the revenue and month quarter XXXX X% basis, $XX senior sharing In Detailing senior started In fourth senior focus housing

November. the while prior community on new focused who could in than third cases COVID safely In control remained and fourth the residents. New or X,XXX height the Better fared fourth on With quarter the select considering than the in continued move-ins communities to move-in December, more December. fourth RevPOR move-ins or Rate is nationwide fourth moderated the and decline steady restrictions to our move-ins higher basis the very diligent expressly and and than a were better. compared was strategic bringing market This on year to has quarter. more at year-over-year on with the On market January a quarter, rates continuing no better In in XX% what welcome market trend average, of comparison. few Year, quarter achievement teams with senior they in tribute Our volume a amazing percentage into This the for remarkable basis. dynamic. quarter sequential sequential X.X% resurgence offset basis a remains occupancy held we stabilized fragmented had on the a housing is year-over-year operators, responses. local a and positive

cases our COVID-related across in states, resulting in of increased, COVID million same fourth expense resurged As expenses the many quarter. community $XX

sequential increase contract remained labor benefit prior thanks the of more fourth was environment, XX.X% yet year improved quarter below mainly to quarter pressure. and the Due government used community difficult of expenses, sequentially, Excluding same to margin operating operating COVID we the brands, OpEx labor related. to The occupancy the overtime. due

Health to Care Moving the segment. Services

within to some in While were quarter Sequentially, XXXX, XX% fourth XXXX. the delivered while safe, compared higher year X%. and for X% revenue to associates stringent believe, our right try revenue patients keep protocols of had translated quarter. sequential thing grew a into basis, lower opportunity the hospice clearly place do, in revenue growth the With growth which, lost required revenue to self-quarantine, to was to we was full on

the basis delivered year sequential Services on to Health expense full X% good cost and employed a a the lower news on growth, and controls addition Care In X% basis. team revenue strong the on

in to year XXXX, benefits We continue expenses made to changes structural efforts the our throughout of early the scale revenue. along operations better match to to with see

needs. delivered scale million, G&A go the to XXXX, savings community to Turning to annualized align inflation. sales we nearly In and cost $XX prior of with G&A. our to XXXX unconsolidated Healthpeak, to Early in venture forward took we infrastructure workforce normal business actions

The all full the quarter the operating delayed present the drivers community can compared lower projects, residents reflecting we transaction in or Ventas is were The cash this the benefit year. lease $XX million clearly actions to year Cash fourth capital CapEx, XX% see essential the canceled quarter lower payments, of In quarter benefit fourth so payments during operating $XX first related of in million compared and you quarterly efforts taken year lower to lower with lease year the help same nondevelopment cash of year-over-year the quarter of Adjusted prior elective offset our rates, $XX were For quarter. more in the protect other to for better our fourth was helped transaction prior than full the quarter. the smaller flow many than period. million costs. and which as prior as lease relief COVID free completed were government a XXXX, to million the prior The lower part the the the financing $XX of by EBITDA quarter. that fourth quarter associates. the year was only interest workers year portion interest was January adjusted costs mitigate Healthpeak nearly And to was working along expense, key nearly XXXX.

liquidity. to Turning

September government credit a liquidity XX. The $XX line primarily from million improvement benefit $XXX of total was funding As from revolver. December million, a was new nearly XX, and

quarter for what the let year high-level we're seeing some of XXXX Now full and me share reminders. first

our moderated earlier, sequential in decline mentioned occupancy quarter. As fourth the

XXXX, case the in the we there late encouraging With continue are January, to housing the COVID occupancy nationwide softened. In public month-over-month though signs. in some impact, senior resurgence feel

we However, improve sequential month move-ins end. saw at

we quarter moderate, decline the expect by can of our the helped positive clinics. the occupancy COVID progresses, impact accelerated vaccine As

second in late growth quarter. positive in typically quarter. we occupancy see the As sequential a third reminder, the positive And historically turns

XXXX. to In generally increases. effect, would and expect will pattern it rate we what we January, recur price now, know increase annual our mitigate Given we expect help took this in labor

impact. funding XXXX make second We available mitigate anticipate the will we appropriately competition in to will continue earlier, additional to COVID local half mentioned HHS markets. respond As help to

We provide become the they as available government. updates from will

offset incurring the costs important funding Continued XXXX. to COVID-related that we expect to in is continue

the as we annual throughout the compensation-related for recovery G&A, associates. increases travel our year, progresses For and country's expect more

With for of quarterly good REIT cash lease refinancing results the payments interest fourth restructuring be operating expense. and run majority for XXXX rate a the will completed, our debt quarter XXXX and

CapEx higher XXXX approximately reimbursements. We offset increased with million nondevelopment $XXX be some investments in to expect by lessor

we to Lastly, the capital to payments. the XXXX. subject X the Act, based HCA million and the in is fourth transaction working the balance the second, reminders portion third deferred XXXX. and at closing. we to Under employer end or in in due quarters. of expect across benefit Currently, half and that change the the on timing advanced of XXXX, $XX tax program, received the is the of payroll In of half are payment approximately XXXX balance Under of Healthcare amount accelerated approximately Medicare the or $XX Currently, of quarter in and million repayment payment XXXX, accelerated of in XXXX. the Cares the fourth security the XXXX this be defer social repaid elected due we

or value million. Services, reporting in a in to approvals. the transaction implied quarter expect to a segment, these million, Health these as repaid advanced and to Care deferral yet until Services $XX results approximately equity interest in For retain continue and $XXX balances expenses early subject tax will $XXX we applied. program and are is XX% XXXX, amounts related not and program Care second will be payroll third with which closes, occur transaction implied payment close, will adjustments late will and the Accelerated deducted. venture Health the the Upon the we we million. Today, segment of be transaction-related The regulatory the quarter valuation

our expect we winning plan of the to recovery. We proceeds result, net upfront cash be you proceeds as million. on on make $XXX we progress the approximately a As will use update

we the now $XXX on mentioned, future December, end Cindy. HCA with to over call and strengthening million will Cindy the our liquidity focus plus remain future judicious about HCA, continue proceeds, to we transaction I venture back of position investments. to are As of with plan excited will at the liquidity the turn with

Cindy Baier

received a made all to residents experts, an residents residents. have incredibly We've and I once-in-a-century was from peers, from from of the year we and and us am well-being the health associates their our families the our implemented resilience shown efforts beloved keep by health outstanding that XXXX pandemic. unprecedented with better listened and of proud our industry and and from feedback and our protocols help associates our our priority. about majority Healthcare agreement growth the to for long-term Brookdale. few remarks. thesis in prepared opportunity our sell With next In this the ever. and our and me home belief closing, large believe demographic HCA health let to for reiterate our the in optimism business the we hospice concludes years, questions. Operator, This open stronger our than investment is please line of


Josh Raskin [Operator Instructions] with from first question is Nephron. Our

Josh Raskin

funding, the and costs. That or really Act have talked about so about I amounts paid don't think comparison of I revenue in the except $XXX million $XXX additional $XXX I mean -- that of million that is to, million but to of if Cares be COVID back. think you So pales lost

government okay, about, number cost, so as that if sort a a to out you give trying your of about rate know to revenue think the the out we what figure what crazy, reported guidance, sort when $XXX out for new we get do take this back baseline the take and out figure it's and EBITDA EBITDA think trying impacts run if million have so think higher, to things COVID million funding. of of I'm something been $XXX you X How even difficult And right? of really is And would to I year. but normal, just company? normal?

Cindy Baier

And question. and then and context a Steve let your jump answer that's great some about just funding, the Josh, question. me will Cares in provide

loss. funds well and residents really to to QX QX expenses think funding we the I are to protect provider we and HHS relates reimbursement our incurred significant the allow that that our for and us note hopeful to get QX expenses loss, revenue it's reimbursement open as will revenue solely QX as Cares help to important in the or our very the that partial and

you answer take can of Steve, the minute question? rest a and the Now

Steve Swain

Sure, Josh.

really we'll You're to see allows of we on right. quarterly discuss trends Until guidance, Instead continue for to reliable that a forecasting. disclose a moderate business level virus-related each metrics basis. month, really and we'll occupancy

trends business to and need know occupancy the the COVID rate in quarter, expense. you For first

So change quarter as annual RevPOR the will to last quarter increase year. January, first And price sequential is the be effect. took first fourth about saw rate. the same from we In in

is Second occupancy.

mentioned, progresses, January to I certainly quarter clinics. moderate, accelerated we vaccine impact as in sequentially, our by from be have first month. to communities Today, positive was So again, And helped saw as we the the -- piece of improved occupancy, that expect third from is sharing January. and of we move-ins we'll And expense. each it's already And to COVID open. that decline going the the continue to course, of December December November occupancy XX%

is associates. the top quickly, cases Our will in they January, expenses and We priority first which saw dropping our peak of are quarter. health COVID patients wellbeing our and help residents, the and COVID in

further half. reductions slightly first with expect reduction and a sizable we COVID QX. the second And from expenses we in decline So expect quarter in to QX the vaccine,

Josh Raskin

the right? really loss. totality, of funding, the plus the And the expenses is Cindy's really of So Act and half in more just think guess question first about I million, revenues representative Cares comments year the my impact the I taking $XXX only

think of back. you million-plus what think And again, additional sort an forward? about impressive it of to something that's guys think I'm million and Producing really really, lost revenue sort do more of $XXX say be going now. of that mean theoretically, How million close the extraordinary, $XXX cost, sort so beyond that north. right? about So about base EBITDA even EBITDA $XXX as to would million to of level of revenue you if $XXX trying or is you'll are money we get it margins running impact. million, I get -- $XXX So

there rate costs Do I figure right, and rate the you like away So moving go was you've expecting we a assume lower are when COVID what of to occupancy think set done? I'm the be guess, over should are kind here? all out is impact pieces, a -- than seen time. historically you trying would I just

Cindy Baier


provide me few can Steve jump Let comments high-level then and a in.

take was issue XXXX, significant will to rebuild a and occupancy clearly, while the in it a census. So

that looking us because the referring. know will are vaccine So we numbers. a We those significant accelerate in prospects professionals believe that that the know really referral vaccine source care looking the are health at influencers are more be comfortable vaccine and that we to recovery see help to

really question how becomes we the occupancy. rebuild can our So is quickly

transformation sales certainly And accelerate higher programming. on the sure the We focused focused perspective. our to that fair we're in focused lead on rate our of we clinics more So move-ins. our acuity, help and share We're make on vaccination clinical capture we're will to us than that. which programs on

help and us things those of win accelerate so will And this out the recovery.

possibly can. as need as quickly rebuilding will of are But macro see virus are focused returning. are on occupancy the people comfortable We to we our how sort what with conditions and we certainly

Josh Raskin

last Okay. Then one. could if in just X I sneak

your a Just on vaccination sense rates can how housing something other team vaccination work you your operators? to sales of compared Is with? that senior Do rates. have

Cindy Baier

think doing amazing I we're an job.

X.Xx So me in the industry. that for vaccine of clinics our entire the than points vaccine of execute first are availability, we months pride faster the

vaccinated of vaccine XXX-plus we clinic our than more call vaccine So have first had their second and communities had else. I the communities in have have anyone today, Clearly, their clinic. residents as announced XXX%

culture getting of vaccine wonderful of rates. are quickly seen the our arms. seen vaccinated So the numbers above in press. that the in Approximately second shot, and well And first industry again, residents the vaccinated, XX% being XX% least, with of by We've which we've we're regard our their of vaccination at a you've acceptance. approximately well to ahead had associates our is those shots

So leader hard we important believe that area, are initiative. this we to press and we in a continue on this


next the with line is from Valiquette of Barclays. Our question Steven

Steve Valiquette

margins margins be the And be more of XX% closes. around years going little normalized around is I the Care still we the If HCA? impact, before think think purposes. you're ownership down in provide color if to NOI for a a XXXX. you in once look for since Brookdale a obviously, the hands analytical I'm they're decreased these the saw about thoughts of able in normalized you to sale COVID the drill profitability. on will are somewhat segment going X in But forward, operations of having mid-teens, about segment or what Health Just XXXX, this a you more business. back also reporting little XXXX deeper quarters transaction X% few throwaway year on the to And maybe before guess Services bit this ago around curious to

before sense sort just to if the operations profitability there's to for maybe about XXXX, years? any think with look enhances as goalpost curious segment in normalized XXXX, some results of Just similar the future HCA

Cindy Baier

question the first and the leave second question I'll Steve, Steve. part take Sure. to of the

the our our Health interest Care complete will we expectation in as minority that Services investment. transaction, reported is when an first, be So equity

come expense. to equity opposed reporting And accounting so revenue will through as us it the

about has the home and won't need those patients you What a lot XX P&L. see absolutely health So on our are excited HCA is margins directly encounters. hospice we And most patient services. million of

So trajectory growth sale be BHS to that we we which that, the steep, is about the are incredibly interest. why are we is and of excited going the after so retaining believe

traditional we operating always that return Now will to BHS thought more have margins.

our know, margins XXXX we being impacted COVID-XX. the as cycle by by that have you were as affected revenue As issues well XXXX

are thinking of expected that give and how key could about minute you're in XXXX So And you that Steve, on XXXX, we spend improvements little just normal back great. be if always the of to a color would just we would recovery. more that the get that profitability. part a saw business a sort bit quality

Steve Swain

Sure. -- Thanks the like improved. for it seemed question. it The has

XXXX, on the grows, I volume, around has the the partially expect the and some of already quarter senior on we improvement, will, occupancy, quarter. If we in tailwind you you steady stabilizes quarter. COVID the peak through absolute occupancy throughout been a impacts And NOI by The in if average at was XXXX. and same expect as numbers a And HCS look first mentioned, housing as on fourth throughout it fourth there. impacted country about impacted improvements, also that

Steve Valiquette


and a good trajectory of think So if kind look I in that's at quarterly, payments performance organic the sequential the out stimulus 'XX. we strip improvement

Steve Swain



Our Morgan next Frank line RBC Markets. question the is of from with Capital

Frank Morgan

transaction. that Congratulations on

detail. X Just

Just the HCA? your Was request a XX% of idea? request that that interest, curious, your or was that's

Cindy Baier

was decision. joint It a

is want is interest. ensure shareholders. I Healthcare believe for penetration and Brookdale strong think residents. for are it transaction And great needs is truly our we availability we our continue to and want a to rates our This What the enhance to great win-win us for It's offered and is of our both residents we HCA our services alignment that it's our that to associates. HCA of wonderful the residents. really really has good what communities from patients, a this Brookdale transaction. the in and services to is

And better about so a we're to really HCA result excited transaction. Healthcare of this having incredibly access as

Frank Morgan

That move-in were could said you. X now of see my And vaccination across those the appreciate within I'm have weeks the just difference vaccines question. difference had vaccine, would -- activity after but any notice you second that think discernable Got those had there. on front, out, you XXX then as facilities, be Did implemented I was next the you in as you them curious. color facilities? I if rolling any

Cindy Baier

out. was opportunity in vaccine by of the that closes February, that the we get how moved to in to seeing the exactly know know also between But not. early vaccination the we do January. who residents be move-ins and improve that clinics of we're part seen don't caused we number note month. had a I have whether or we think But to part the our communities. thing at important wait of the move-ins one improve is And the and Certainly, to see least between December we'll January

a the reason one into little too far going hesitant that February. Now I'm about

As manage has extreme heavy just through XXX-year XXX-year with to weather needed to a we needed you know, Texas. in Texas. concentration And X Brookdale, not pandemic. portfolio successfully, in issues at X manage we our the through But

road. probably month ice February is on the expectation a my no one on quite during because, have little that in of the So get move-ins will the disruption Texas could with we out honestly,

Frank Morgan

about good was, said you a that. hadn't again, you guidelines, point. wonder in what and better. That's thought I in -- that this mentioned vaccines and could local explain a that -- I go was separately, you state think around I XX% Then back discussion number better?

Steve Swain

were The open from to open communities. compared move-in XX% communities had up move-ins. we're Frank, XX% that restricted was or that mentioned, were improved a I better point that So communities rate to now

So to benefit have many will more of being new communities move-ins. that open

Cindy Baier

also because before of Frank, we in move-outs note point it's that Yes. controllable vaccines, One better to up, the wrap been January. important have

about within we are our it residents to I the the opportunity have in very have have the engaging more gives get ability think fully to of us vaccinated residents. to when clinics. environments a And our excited communities lot hope vaccinated

Frank Morgan

with in mean, One to look kind you when new always know growth you of I COVID continue supply. lot and stuff any just there supply starts in on are markets the going are in starts deck, to out final one But the on at continue there's curious, see supply new slide hop. you. then give of really of slow And growth other Got new you on view in Texas. was your down. where In updates growth today, I of your seeing is and field I'll in and you kind a ice going where your that I what Or the is? from terms markets? storms

Cindy Baier

quarter lower QX that 'XX the investor you second look the than starts And Frank, the encouraging what XXXX well. our were quarter lower if at you'll you look And that XX% is have they new Page size and given the is were that than But to starts our us. peak. in XX% of the as of at incredibly that's the if around open, something peak quarter portfolio, fourth deck, see of fourth communities scope X always we have them.

We starts to better. about And to in opens the off. the see industry that. taper both starting getting So are hopeful were we and continue oversupply did very

beat now to winning COVID-XX. we're the the as on to looking So just battles recovery we


Joanna line question with from of Bank Gajuk Our America. next of is the

Joanna Gajuk

around RevPOR. discussion the on follow-up a just guess, I So

a mentioned expect, obviously, this quarter. obviously, guess So typical taking very effect you number. I that good X.X%, Steve price And decrease the

the think you can trends between in year tracking the is So versus going of for progress IL, different about kind And things of there? do average products, terms pricing? talk the this how AL to you how are

Cindy Baier

one leave that for I'll Steve, you.

Steve Swain

bet. You

profitable but good profitable with going aggressively the getting we're pressure as depends is seeing growth flexibility the we local focused achievable market And in of volume, both rates, in mentioned, kind on Joanna, have a high know we've on revenue and combined. job charged field service industry's the revenue just rate, the rate, rails, on done to both RevPAR. you're to this focus which the course. growth. some some price. The markets. team, single think that unit protecting community right not So Each conditions, because just focus Cindy of you given to guard within highest drive attrition to at We respond sales We've does maximize occupancy, is incremental every if

look when our If step you take back, U.S. same-store quick results, a portfolios. same-store at especially you portfolios,

look at appear you to compare Brookdale occupancy, favorably. total If just not does revenue,

product. by field flexibility the is on giving course, some Of pricing

a our bit short We more pricing some in which IL, is term. furnace in more of discretionary a versus little the bit seeing in products needs-driven are

increasing third quarter occupancy And the it expect we in starts so we XXXX. what and in you quarter, as generally certainly forward, already occupancy, see second look late occupancy and growth, as we're that focused that's on mentioned, in

Joanna Gajuk

All right.

price the across you achieve you then -- portfolio? were said to what in that So so increases the were able January

Steve Swain

about On the Its is as weighted average, will about same year. to be average, what see, going you last it's the X%.

Joanna Gajuk

comment And this -- focusing need That's that need helpful. on the Great. are then obviously, based. services around, on

movement? the about are acuity trend actually, this do you you can here going of of talk the kind obviously, lower seniors, Are the portfolio? kind So your among acuity because seeing, So rate average acuity seeing to because And or lower maybe an the the high postpone how of pandemic. the in forward? of because of, acuity kind you how expect death residents picture that you compares levels in before of higher terms of acuity across can kind you would portfolio

Cindy Baier

Joanna. Sure,

industry. the memory to in about of memory portfolio If our is care compared portfolio XX% sort in you aggregate, care think XX% the our

So is and much highest acuity residents dementia, very is our have portfolio. and a care needs-driven The that decision. memory in purchase the

particular is portfolio. And our the of portion that so in acuity highest certainly,

at look living. you If assisted

living of Assisted industry this Again, is at XX%. our portfolio to needs-driven the XX% is a purchase. compared

choice And acuity independent pandemic. most so assisted living move-ins really has been The which living, is is the discretionary important during the lowest resident.

that So AL from than is of lengths than care more memory part side, on assisted the offset but living, move-in move-ins different by in stay. the

independent care, you length living acuity. about living, of got if memory being stay is things you've the of longest length opposite then So affect with directions that think assisted moving X stay in the shortest

Steve Swain

one higher is to And us acuity revenues. care provide residents higher thing revenue not And do well. note, too, as Joanna, with but we care have rent, only

on So residents those to tends higher. be RevPOR the

Joanna Gajuk


better up, pandemic. I'm is wrap versus acuity a guess, the memory how to of it this an So of of sort kind sense the care, Because get trying before looks to average, like or just on holding now of worse? kind occupancy I

Cindy Baier

care type. by you can XX.X%, there. living see fourth So product supplement down look and community Joanna, our same of In you Page are rates results, broken living And they're the was assisted XX%. if that memory occupancy independent at was XX occupancy the quarter,

can you there. so And see to the that answer

the about basis, a on has same roughly declined year-over-year Now the occupancy amount.

give will you your answer. And so that

Kathy MacDonald

I analysts. we for want make Joanna, other sure have time to that

Cindy Baier

Jefferies. next with the Brian of Tanquilut Our is from line question

Brian Tanquilut

my cross-sell would strategic You deal like for that. just operationalize just I And cash there? opportunities the than how more question, later? sale BHS you potential something portion gained you on see or first that Where do of to the Cindy, of the guess HCA.

Cindy Baier

question, a very, that's very Yes, insightful Brian.

to if that our way important the most the So during more happened you care about what it within well-being access really health is and wanted health our residents of think And is I about communities. the residents COVID-XX, thing. think

which significant important. incredibly we saw so a increase in And telehealth, was

and closely will HCA and a we to the is BHS that improve and do strong in how sit see terms we BHS opportunities really that be of grow their what make that can then of our given into work where certain, will with will is, I'm they aggressively, of down have will from part playbook. we Healthcare So our HCA Healthcare the residents plan will what incorporating we is offerings operators, to care. continuum for

their that well help occupancy. in So community my give BHS will by, senior will options better and as patients both really our living growing as view,

Brian Tanquilut

just related quickly. of questions a then to #X. you. BHS, that a on then, much Steve, on got clarification. your Got G&A few will And P&L, how stay And really I numbers

rate You expectations for as And your wages, grant increase so said think you're prepared then last of a expecting the that to XXXX. money we one? in should for one in one, offset remarks,

Steve Swain

to HCS. Sure. so of fourth was X million see On And believe or allocation I that about Page supplement, quarter. on for -- the you'll $X a the G&A

annualize you that, If $XX that's million.

We will should more quarter during you but of first information will that's for away. think call, our have G&A ballpark the kind about in allocation that go

them Secondly is as the expenses. slightly separate. I would treat

Just or do for the increase, side. revenue rate side the expense the certainly,

a the second that occupancy occupancy, Just of occupancy, of expense half as position There's -- that XXXX. throughout feel a increased it of at variable with rate we're not fixed. of we much we are is now at our will where grow lot lot a growing a

And X relief. the So can you a little then those points. separate the out bit data government from

XXXX. well ultimately the positive in provide that others remain will for mentioned certainly impact the government first half XXXX. help in as would as we that fighting COVID certainly we And funding hope that grants, Cindy think I any government there us optimistic revenue this of beyond

Brian Tanquilut

last then it. you. And for Got question Cindy,

think 'XX that mean getting had start case. little a pickup the you -- expectation delayed but reset we that also result? for occupancy has Do sequential little given bit, your occupancy for a starting sure obviously the you as raised not as point starting XXXX, you or exit with I'm the So a way basis, I that XXXX, higher right? on down a a ramps point bit

Cindy Baier

is occupancy to during to I rebuild a going lost think the we it take time little that COVID-XX.

think that to into is think it's can. that I Our we XXXX. XXXX as during over and reasonable recovery of recovering there occupancy some But winning on be will the as bleed focus, obviously, much


Suisse. A.J. next with is question Credit from Your

A. J.

the XX% about external. wanted of see just could, on that ask, I business of Brookdale couple Services business current something community? a the I as maybe residents their serving external to in the if about quick your tied therapies, board, somehow health out Or market business. across the and is the you to they it facility? come to the families hospice and that and Is I is questions actively the is of Care home or XX% residents Health

Cindy Baier

A.J., it's a question. good

business, hospice in our and We well. have very outpatient quality services health high home both our as

And patients living senior connected grow not and any grateful do who our it. so operations to directly in business intent for and have that market with we way, to are we're

A. J.

you being therapy, are by therapy. like Okay. units this be that where And the but home of in units the particularly, served, served of understand some units your of of your I under will do it reach by in about then are when disclosures, XX% hospice doing expand looks I more and to existing XX% that look hospice agreement? opportunity at the see that XX% about outpatient your more -- the Is so health and concept and by markets served new

Cindy Baier

want the to don't talk past. far can you about I is that, about A.J., what too go but tell into talking the future, I

that relatively and that see to for was a us easy have So up Healthcare's new the HCA it record think we has to our us our residents agencies there. business strong that quickly. get organically. successfully opening to with With I grow allowed is not opportunity there's that something agencies, new installed a base, ramp volume, track of big no reason

is, question with question for them. And Now want a the do to HCA will that's what that?

A. J.

of road? the just then Or there aspects some there G&A? sure there's you that your going for comment you'll And much anything pretty any this that? business that put or does the or will Or where stake retain around G&A. just you XX% the to about you're the some is to of down through I Sure. any of call service continue make have Or any kind Is to there like period to provision And assume is run indefinitely? a understand agreement HCA? that do provision it go all time

Cindy Baier


provide time this. will in closes. period after like the services a of transition customary transaction any That's We for transaction

contain the And years happily we several And put so does provision will down the provide call agreement services. road. those

Kathy MacDonald

we've to over think the then to this up. Kathy. over to our stop like wrap I'd it we'll run there I Paul, Since time, with turn is And questions. Cindy

Cindy Baier

everyone for you Thank you, want I interest this your morning. Brookdale soon. thank to again Kathy. with you, Paul. Thank We look for us and forward to talking joining in


Ladies this today's and conference Thank call. for your gentlemen, you concludes participation.

day, may a You great now disconnect. thanks Have and again.