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EHC Encompass Health

Participants
Crissy Carlisle CFO, Home Health & Hospice Business and Chief IR Officer
Mark Tarr CEO, President & Director
Douglas Coltharp EVP & CFO
Barbara Jacobsmeyer CEO, Home Health & Hospice
John Darby EVP, General Counsel & Corporate Secretary
Kevin Fischbeck Bank of America Merrill Lynch
Brian Tanquilut Jefferies
A.J. Rice Crédit Suisse
Matthew Larew William Blair & Company
Frank Morgan RBC Capital Markets
Philip Chickering Deutsche Bank
John Ransom Raymond James & Associates
Call transcript
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Operator

Good morning, everyone, and welcome to Encompass Health's Second Quarter 2021 Earnings Conference Call. [Operator Instructions]. I will now turn the call over to Crissy Carlisle, Encompass Health's Chief Investor Relations Officer. Please go ahead.

Crissy Carlisle

Thank you, operator, and good morning, everyone. Encompass Quarter joining Earnings for you Health's XXXX Second Call. Thank Jacobsmeyer, are on Coltharp, President Barb Darby, of General the and me Corporate & Mark Home Chief Executive Health Encompass call Officer; Counsel Doug With Patrick Officer; today Tarr, Hospice; Officer Executive and Financial Secretary. and Chief Chief

at if filed not earnings website the already begin, are last information page and On with greater supplemental on in release, SEC encompasshealth.com. related a available copy, detail the we statements, set also of information, Before X-K X have you do Form the are on forth the which quarter the the will you Page second safe our supplemental release. harbor of find earnings

read differ filings, to release XXXX, XX-Q will risks value, the projections, and forward-looking subject filed. review from year the related ongoing results are are actual XX, and when impact we are and uncertainties and of risks XX, XX-K the and which of our them. impact ended make and business to as many for our those on which to and that ended stockholder We control. Form X-K, for cause including Form beyond the Certain could strategic earnings as XXXX COVID-XX, magnitude its like quarters June company's and the well December and materially discussed in Form statements, During encourage XX, expectations XXXX, the our the SEC estimates the you to uncertainties, relating call, our March

based projections, and presented, guidance forward-looking statements. undue of place to information on these as on a update and are today. to speak of do only current forward-looking other events We not estimates duty not estimates, the future which cautioned are undertake You reliance

Our call non-GAAP and on discussion measures. will supplemental this certain financial include information

of the of SEC, most the website. filed the reconciliation part as information, earnings measures, available end of to Mark. the with that, are end on of release measure to Form With directly all call turn over supplemental the at at which available GAAP I'll our the and the the such Instructions]. comparable X-K For is [Operator yesterday

Mark Tarr

Crissy, momentum adjusted XXXX. We growth segments in over of in strong revenue second the everyone. quarter Business accelerated thank morning, good you, had QX QX and EBITDA and and both XXXX. XXXX

Our our business second and of quarter reflects the performance sustainability resiliency model.

result XXXX operating a year trends we year-to-date again guidance. strong of our and performance, are our raising As full

and their patient were results on discharges to Our the clinical It's do. our them revenue business, for In experience. the work outstanding remain of our XX.X%. teams I focused business, commitment and adjusted XX.X%, drive EBITDA inpatient increased the increased thank that truly patients XX.X% rehabilitation our up they

have providers for payers. successfully positioned inpatient rehabilitation trusted choice and We hospitals patients, the Encompass as Health

and in leader highly enhanced in and national trusted requiring clinical have hospital. we the rehabilitation treating As to programs be that protocols developed continuously care effective care, an rehabilitative inpatient have in patients proven

maximize prevent to improve care to hospitals. advanced care and and recovery that continue patients for innovative readmissions treatments We costly technology acute our through

post-acute these of solutions. you Let me examples give

XXXX. the readmission our First, October we completed model rollout in of prevention

draw readmission resulted model decrease While complete in point you the a program basis any it's too to that for our early I'll conclusions in pilot this rollout, XXX remind regarding rates.

We the to from expect similar see rollout. complete results

May. refinements and existing the prevention fall on our and fall making of the determining Second, Throughout mitigation of focused are effectiveness pilot, in learnings. prevention our precautions, the program in piloting based began we on our to XX model practices we identifying this our fall hospitals additional model

first or quarter quarter in fourth the enterprise-wide model We early of expect of to this year begin XXXX. rollout the of in this

a a remote trained we May falls technician X This believe that adverse allows lowering in began in of station. can from monitoring multiple reducing platform monitoring events. and reducing Cerner's our safety We improve platform hospitals. patient monitor Observer a by it addition, by piloting to patient patient is rooms In system Patient central virtual patient cost

patients May an in extension to Health's of tools primary the hope their Third, stroke essential mortality of stroke Together part is our the to treating across communities we continues campaign. community in back recovery, more sponsorship and to U.S. with which mission, of Stroke evidence-based announced In is American Association campaign, greater year, also growth. long-standing for patients to an inspire stroke this of contribute through transition strategic to functional End our reduce Stroke to goal its our national expertise with XXXX A the Encompass develop

XX,XXX XXXX more second of success our with served During evident to is Compared of patients. choosing expected XX,XXX grow over quarter stroke Medicare number hospitals our our both XXXX, in XX.X%. Approximately are and value over to XXXX. Medicare continued to markets payers strength enroll to plans also XXXX, increased Advantage than Medicare in proposition our The Advantage our Medicare the via traditional That is Medicare. plans. XX% new of discharges beneficiaries same-store Advantage to in rehabilitation

on in focus this to capturing the continue growth will payer. We

growth to intact. development robust also pipeline have We continue benefit from and new store a

new the in During in of the existing the other Georgia. and expect X North to Cumming, That Tampa, openings in rehabilitation open new quarter an beds added our inpatient second year. and X of hospitals, to XXXX, we additional the to hospitals, we in Florida XXXX back half hospitals XX opened brings one and X

Pensacola, Waco, plan third and the South Texas; Greenville, we Louisiana; hospitals to open Shreveport, Specifically, Carolina; quarter. Florida during in

we hospitals first That and that's XXXX. our open addition, XXXX Last announced to years. of open XXXX from XXXX. already XXXX, to add through In beds to we to hospitals we week, scheduled new those in open beds XX XXX X X,XXX over in to hospital new in represents hospitals in existing each before XXX expect and we slated have

EBITDA on Turning remain increased demographics aging that XX.X%, solid overall our execute adjusted Revenue Advantage that and portion XXX.X%. our XX.X%, those for proposition. growing care the increased and total of and of to prefer focused business. starts our of would a a admissions receive backdrop up focus increasing mix, we fact to home are home. payment Medicare value-based our health being to us, in were XX% care continue value Operationally, recognize patients of seeking now includes their are to prioritizes XX.X% total of the hospice it that an and Value-based which against model. payers admissions contracts a the We quality comfort tied payer increased

personal As to queue. driven in our we organizations need care to payers for reimbursement growing they in from with encouraging collaborating will services Early clinical services. also these potential provide results have out models SNF-at-home home We're are leading these by believe value, a cost-efficient seek outcomes program X and continue emphasize care we meet providers support order the and a in more markets. to efforts that

payers virtual we've a video Additionally, a platform care to patients or app program. such their physician, via national manager smartphone, computer virtual call secure The with staff. tablet other rolled a allows participate a out with capitative visit as or nurse, platform a in device personal medical

these through use. continue drive We interventions assess of to better the outcomes and identify their appropriate to opportunities effectiveness

use the our care of progress We to we're approach the in regard are with associated MetaLogics planning pleased making module. care also with

in XXXX and were in XX.X visits Our per XXXX. XX.X episode

and no quarter planning our episode industry-leading continued have low taking We company. episode in with to best approach second for throughout our of adoption approach patients been visits measured per our believe is XXXX, the enjoy of visits per MetaLogics to And declining, rates hospitalization degradation this the we were when care we've XX.X. are quality. For the period and

are leader. the both With business she experience, is extensive a take added business extensive Our know X this teams excellent operating Carlisle the Crissy's also want health are of they of hospice proven Barb business. also worked job. assets as an with her Home financial on focused and familiarity locations health and on we Barb CFO and Hospice, home XX excitement Barb and to appointment Jacobsmeyer Frontier make suited of many to our lead CEO ideally for person my portfolio to June. role. our and hospice and do and going with to the integration home which CFO to express care I've health in our Crissy expertise Crissy as the the Health about closely forward. will years right confident I is

regards to for nationwide analysis agencies the On health updates. June year update provided The home current PDGM. and calendar to its health year CMS from released also for purchasing rule-making of Next, proposed preliminary XX, demonstration rule regulatory value-based in of includes CMS proposal of X-state includes proposed expand its net home XXXX. first rate its notice CMMI's footprint. a X.X% a

guidance our based to remainder of As year, the strong year operating and trends. we to ahead full results date XXXX on we've look increased the

of consolidated share $X.XX and following: the includes to now guidance $X.XX $X.XX billion revenues XXXX billion; to $X.X of billion; $X.XX. net year EBITDA billion per $X.XX earnings of full Our consolidated operating adjusted to adjusted

Before to and touch I review turn the home Doug, segment. it I want health over strategic hospice on our of alternative to

the including statement to The and be As limited separation or regulatory value have a transaction and continue enhance private we carve-out to: key pursue determined registration draft the not of business. Directors of the either preparatory certain health partial as statements of will with required on the S-X final filings. for success of our hospice to long-term to earnings a is based required audited separation the confidential alternatives full the home still home date, mentioned a on Form health meetings. a business, analysis and submission our for public financial and separation Many by completed, or of Board form in hospice actions been believes we but of release, the business SEC

expect half transaction assurance of second can we While XXXX. the a no to in announce provided, be

we transaction, that, turn we continue cannot pursue to it at to further With over I'll Doug. As time. comment a this

Douglas Coltharp

morning, good everyone. and Mark, Thanks,

our As strong with very business Mark we're performance both segments. of stated, pleased in the

EBITDA XXXX, to EPS compared grew net increased adjusted consolidated operating XX.X%. As increased XX.X%, revenues And adjusted consolidated XXX.X%. second quarter

over of XXXX, adjusted and XX.X%. growth We significant also generated and with XX.X%, EBITDA EBITDA health IRF-adjusted consolidated of of hospice X.X% QX home EBITDA adjusted

flow same-store XXXX, the Total adjusted free increased quarter revenue by year-over-year XX.X% we of our The and to levels our in to QX, revenue exited leverage with months was EBITDA both QX for adjusted continued inpatient including increased generate and XX.X%. increasing X.X%. high We the increased net rehabilitation XX.X% X.Xx. X growth 'XX, Compared of pricing. increased free of increase segment, first down In volume flow, volumes same-store XX.X% XX.X%. and discharges driven second to cash with ratio cash

in treated treated average XXXX. we QX That's treated Our quarter orthopedic census approximately of approximately than in in patients We We daily procedures Elective second volumes for second of from discharge and in the replacement continue elective X.X% as patients sequentially sequestration, the patients, and steadily complex the X,XXX the returning. offset than report joint XXX XXXX, of fewer approximately second lower believe the quarter timing elderly conditions with we revenue back half more medical of an period recover. extremity XXXX. of the are improved from year. X,XXX of continued adjustments, primarily surgeries to cost discharges resulted discharge between per our prior will in of improve to and in suspension quarters. increase in destination reimbursement rates, by improvements partially Growth quarter the

help and patient we COVID remained acuity QX in testing X.XX procedures accelerate. QX of length patient's rollout of X.XX average mix our lower 'XX, average of at pre-COVID elective as expect capabilities While moderate us 'XX half the to continue stay. levels, acuity as on-site to vaccine X.XX the QX compared the 'XX in back above with to index The continue case year in and in to our

was compared the Growth decreased revenue quarter. in in days Employees productivity. labor of average the bed Our to in quarter in X.XX length days primarily the in first XX.X XXXX as per the QX from stay 'XX quarter. in improved XX.X quarter occupied second to year adjusted of resulted prior EBITDA and from X.XX

XX.X% during in in did QX In supply addition, 'XX tick-up stores salaries are FTE new awarded but and Medical both We XXXX. they million. increased levels. Total million and QX wages and please moderating, increased total increased admissions employee of than XXX.X% was to see to revenue XX%. volume of pre-COVID admissions $XX.X the that our XX.X% frontline driven continue included hospice home $XX to year-over-year in ramp-up and revenue higher recall due 'XX adjusted increase health 'XX, In The additional QX to pricing. to home employees. SWB Compared furloughs EBITDA be per by health year-over-year. and increased segment, costs a time-off approximately paid

the remain around We staffing half back the growth are challenges, certain focused on Despite in opportunities we these markets, in experiencing of challenges primarily year. nursing. the

Same-store this benefit part lower due skilled senior from primarily to to Frontier in decreased QX to rates new Our of of in per are we have visit QX. QX in visits adding offset per management. admissions episode per and Elective in 'XX episode and an and of to X.X%, high. per pace acquisition to Within the referral resulted at Home from increase suspension as year. due per XX.X X.X%, the occupancies compared services levels, our increased decreased of non-Medicare continues productivity revenue of X.X% at approximately sequestration. returned The all-time June line, admissions in of Cost XX.X benefit the nursing service effective health been facilities. reimbursement hospice timing living of decreased from increase historic the completed cost 'XX, X,XXX total quarter. a have episodes an sources procedures to visit admissions $X in at

MetaLogics. the structure Cost As sequentially will visits into continue our address And visit year, episode planning compensation in staffing approach and reductions will the we made in changes further increase the the per may back seek use we per care we we of certain as refine to May of we markets. half as challenges in anniversary head XXXX. we

Our continued support strong making are in capital growth. free the cash we flow well-balanced and our structure investments

our second quarter, of we development funded including million the the $XX Frontier. During activities, acquisition

IRF primarily one of XXXX, credit the on I We make notes pacing before also minimally redeemed drawing de comment our revolving I conclude. of on Based senior million on our want $XXX And we'll to guidance X.XXX% just revenue open novo facility. our due costs QX. improvement questions. and from we in impact lines expect be rule, the with the to the on XXXX start-up greater in the EBITDA year-over-year than pricing for and that, in QX

Operator

Instructions]. [Operator

Bank question comes of line Fischbeck from the Kevin with first Your America. of

Kevin Fischbeck

don't little seems guess guidance Should and you some we headwind wage bit why even assumes about I about I aren't being as but it higher, it that a higher like I a little be and about And on to you mentioned some first guess, It to expect seen loaded. it's have you you bit back-end expect issues growth. these you're question like both questions, there. geographically, other to XXXX? have labor think concerned guess, So labor seeing pressure that? costs. a your number like I potentially it companies that talk looks costs, benefit higher We've growth. be seems we impacting

Mark Tarr

and Kevin, a as pitch I'll make in perhaps couple of to comments then Doug and Barb want well.

second seems priority early her to health, been just than going of trends With the some have be pressure on as certainly nursing. to dietary. to home housekeeping I COVID. of will there. seen We've nursing quarter in her nursing nursing support to some certainly make and hospitals. in in been continues go to the had And to think a It's of an I'm market-by-market-driven for the think degree staff details with levels number number there's on saw certainly years, from exacerbated others. hospitals to than our XXXX in more saw a market have lot the had markets I segments have where, that on for role. quarter say be we and but developing nursing, home new to of limited It a we in you back pressure a came The out we some health it in and what with had higher of market a Jacobsmeyer if first comment and issue, a and it was it a that in of of pressure. their certainly, - developing continuation regards about adjustments Barb ask both the primarily

Barbara Jacobsmeyer

Sure.

market first So by of part I certainly on staffing, the think the market. it is

think is I achieved nursing though, good hires XXXX. quarter back we that highest in since in news, had total two the our we

it challenges relates dashboards do we're headed on staffed. staffing where where about have sufficiently are hires. we RN good versus us LPN feel where we're that we show and that, do we as So Based to having

and the so we we that of and members increase tackling we're team the coming sales sales that the have current with talent do we that the about force focused of staff can amount then those sure sources number continue really knowing and challenges focus in that our to And walking And making the referral need, have markets. so right we staffing on we and referrals sources. the from those it's then acquisition are and where where have markets

the the see we're good we're on things. to but on in So continue acquisition, that to as it's that staffing both think already focus talent growth We have the place. we going markets focused

Douglas Coltharp

Kevin, We segment, kind any of feel for we do nor growth of it quarter IRF anticipate it do the to limitation the not like will growth it's second on the serve in balance Doug. year. as in serves limit the

growth As any limitation has those year-to-date do believe appropriate we're difficulty a of we're a example, de bring don't taking online. anticipate forward. certain and we great that, locations having staffing as to a health specific be novos on We in our home our on been to we moving that degree steps basis. It a limitation not it address of

Kevin Fischbeck

comment, year? kind year should next de with year? opening the I the the timing us, of And just next about year into expected year-over-year and I headwind helpful. start-up de how Can you guess the you year, that of maybe drag novos half novo guess novos made total back are for seasonality And That's and losses I be that this of what the to guess, remind the more think creates. de we

Douglas Coltharp

Yes.

and ramp-up with impact novos range be somewhere we this start-up an would of million That that that million associated the on the costs and de between $XX EBITDA. year anticipated $XX stated we've So think - quarters that heaviest going them We know appropriate. are that of the all. and impacted and quarters is QX, QX that that most be are the significantly total the remains we to are QX

announced - we proxy, we out into put we year As think guidance kind in a de that that and we've obviously, I use open as that around number That's recognize by a costs start we're there of seeing aggregate as locations and now will you thinking haven't any proxy. go up of the the XXXX, XXXX. about it, can same novos this divided XX

going really for the move opening year is breakeven Some quarter by into a in of at opportunity there's But the an of more they that we more least of as provide the earlier specific EBITDA next location year. on depend on right? the be it new to The end first year. open, dates, the the to back color generating we'll

Operator

Your next question...

Douglas Coltharp

partially to from positive back as be half the ramp-up a start next we'll to move I were see XXXX. the the X costs was going that up say, of that offsetting this contribution opened year year into we will

Operator

question Your comes line next from with Tanquilut of Jefferies. Brian the

Brian Tanquilut

just right? guess first go the maybe both Barb. I I'll of this to and you is And back for questions, labor

about further that drilling And seeing? we RN into down that then think maybe as an mix, like you're LPN So opportunity the staffing metrics. and is kind of

markets is the just drive going clinicians it turnover fuel adding there to a growth more issue? is challenges, it Or So terms in in that saying and of the are forward? where you're of new

Barbara Jacobsmeyer

the that in say full-time But We're going of added part-time the to is recruitment. also why I our of some we've retention. flexibility continue the Yes. hires, it had focus finding on a would PRN, the focus. We've positions. That's both it's focus to addition always and around combination those. on

a questions still lot what look with future school. for the think I some today more is are nurses in things looking there's on as like flexibility what

our why we I we're are So because some increased seeing also and success is in - flexibility. think recruitment offering that's

Mark Tarr

issue for new And novos. started a hospitals, this second in that I Brian, on that added goes segments, acquisition, for recruitment, we're and de particularly resources the say those to health. return sole added with both have we first of see will job that that has XXXX investment around and then whose half is talent the addressed - we've Barb people home starting heavily

Brian Tanquilut

have No, kind that's for year-to-date, openings I guess, the And obviously, XXXX like announced already I you, then through you've Mark, halfway awesome. we're X of and since year.

just what past opportunities pop seeing So all novo Because openings? just would more than in ranges when long-term probably announcements expected accelerated de like wondering, the you weeks. are have it guidance seems you with the it your up for few gave more has you

Mark Tarr

very was have. talked certainly we're we there. we We've that area That positive about long-term a pipeline Florida markets. Brian, about state an had hospitals a was legacy that the of the - that

We to in as ever knew we along to have were XX hospitals. state in CON want as what what hospitals. that all move beds be want the exactly we to if knew We markets well markets abolished, we that to that existing add

big didn't So we as facilities, density demographic and drive such tailwind very the opportunity has states us. have of where into then state a certain for services. have And of that positive pleasantly And very either states and our moved need and we've outlook we're long-term Florida a been for we the or the on surprised. yes, been new continues so to markets

Douglas Coltharp

years just X And Brian, novos numbers that on that, we top based a of above X-year XXXX, range cited, those that targets running segment, for ability we're per board add at add just period. and and the the good with the the so minimum. over obviously, on year, de identified to And had next coming X year next anticipated about IRF in XX for to at already XX feel we you do long-term X to between X our that for end or would to

Operator

Your A.J. Credit line Rice next the Suisse. of from with question comes

A.J. Rice

headwind XXXX - admissions senior depressed business two and you just occupancy. quick you'd of health face because deck versus on things Maybe the the SNF home your One, in got you've that slide think in here. housing an

still a think you to then baseline? out referral you payer these all as the your Medicare was point it And the IRF to you that way? to do in was two have shift, those or XXX, between deck, account Or about had sources? where swing You've just headwind XXX picked is business in there Advantage down. getting patients like, another be pretty sources. wondered, also, have mix additional the significantly, there payer you're incremental slide you Do but Medicare in think that for current pandemic up admission just anything those is is - in looks up mix a basis I fee-for-service drilled X,XXX

Mark Tarr

Yes, A.J., I'm address going the health. involving to first Barb question let home

Barbara Jacobsmeyer

Yes.

So health, referral sources right, about quarters the the sources X,XXX last we've on home you're referral increased quarter. over to per new several

I a a little that's think helping it's growth. from bit of a blend on us new and what recovery

when saw that our are physicians. So that for pre-COVID some about electives of up back of sources are the direct example, is levels, you referral increasing number orthopedic actually that

to And centers, that directly But so them, new are types able other of some those helped market been particularly increase they're that doing surgery referral referrals. mixes. of ambulatory has with these some we've of we're surgeries, so also diagnoses in the seeing as to that sources helping

of SNF referral combination, a of certainly that helping senior sources us living. the that it's think headwind increasing is I and So with number but

Mark Tarr

And that just the have slower post than A.J., other senior longer living think term, volumes come SNF and been referral back. pandemic, that It's they sources. to we respond, will do

Douglas Coltharp

about tells Yes, XX% below our they're running, still occupancy levels. on pre-pandemic their anecdotal evidence average,

A.J. Rice

Right, right.

Douglas Coltharp

Doug. A.J., this is

were mix. if pandemic July numbers, kind of last year at of QX the by around fluctuations were was patient they're 'XX were of the caused of context the pre-authorization QX. a basis, year-to-date sense on our our than discharges that importantly, the IRF year-to-date QX Advantage In it is was we In QX in MA segment height that to also, and regard QX it down XX.X%. XX.X% there's was impact X.X% mix compare as But year, of perhaps On With as we to in fluctuations And then up the the waived, of payer can for look give of XX.X%. 'XX, basis. what no then you see that the side, you XX.X%. recall our some year, virtually in sustainability last in where the has those some 'XX, say because in XX%. MA on pronounced still we're are of year, this we payer portion and but more were reimplemented in Medicare the MA any the pandemic And last those at QX other were quarter. quarter same-store in up you And plans year. a up last requirements if A, it a just same the that going, and to doubt all mix,

to If you the QX all way of XX%. it 'XX, was go back

it's it's XX.X%. that a on X quarters still over last level. In the So elevated basis, about blended

see I So we do modestly continue expect And back that MA the that what of in of expect would the see growth we'll now the second to it we've we to quarter, fee-for-service. kind moved year. half past in be probably higher than

of about inching continue we're close mix, would hover current XX% to area, that probably payer going bit. from just So to in up that the a to level that suggest maybe pretty that but

Operator

of with question Matt Larew William the next from comes line Your Blair.

Matthew Larew

on just commented more elective Just curious, you've returning obviously broadly, bonds returning. procedures and

Delta care than Patient are obviously this variant algorithms point, your were during vaccines in up place. moving any at more how vaccinated, recent they in QX. in terms curious the the with seen more curious a staff's have presume bit I you out, picked But of looked July, established, PPE obviously, Just around what you things you've that momentum in surges. changes in just have

Mark Tarr

that place had up. we'll last certainly, hospitals. this quarantine PPE, increase protocols handful the agencies we're as we've since in prepared our an have of seeing due patient at patients being in in that we great well an year a of work there's of staff then. workplace. is acute the amount Matt, the from number that We've seeing that be than evidence they in or outside the with a or either exposure marketplaces, less our that we COVID confidence in teams. uptick during in have But the in treated. in picked working increase momentum care hospitals a any point own They're not changes population we're have been COVID own may of seen noted, our seen But to the an What you in have and the put

our hospitals equipment individuals of minutes. us All have within rapid the XX test Abbott allows in-house testing to that

any lies So not on we've But we're at impact prepared what our direct this seen point, business. for ahead.

Douglas Coltharp

is that would programs patients - And making the you what we to Ultimately, of average And patient Recall when that to look surgeries I we're term. be the elective the with elective the done. deferred we're elective combine treating the that. are of in recede. progress we're going the prioritizing on that the IRF focus fact we're procedures the for add types age are need in setting, they only Matt, see population, procedures that at that in expect the short senior treating and that vaccination the don't to of that that

Matthew Larew

context Doug. great that's there, Yes,

the to year-over-year, terms On side, Obviously, admit you also it can understand But ADC staffing? ground? negative help that Is the was maybe you're there an hospice the on what that growth seeing Maybe get to us industry-wide. work the geographies? to update helpful earlier would there. isolated be near in some of were certain issues related

Barbara Jacobsmeyer

Yes.

mostly there had that And due to occupancies were we're the was again, we key were markets staffing lower also So mainly, in the and but the, nursing. those challenges. facilities, SNF senior it living seeing some where again, some

nursing get as agencies far those staff. as seeing are up hired We their

patients, mix. piece it come other say the but of pre-COVID in normal pre-COVID as stay a impacted been We of more length seeing would that COVID length of return diagnosis saw a we're and kind of that decrease normal has the the of back length stay. I stay kind So to - with

Operator

from line comes of with RBC. the Frank Your next question Morgan

Frank Morgan

I'll the commentary, back last to going guess that last stay question hospice. on I and

length said hospice that I you in reaching of think sort of pre-pandemic stay was levels.

the care kind of in second terms months the business quarter the home the of exited how in across was movement trends the about admission of - in curious health not business. what terms any just but you the admissions, Just of the in could specific of the to across months the momentum terms quarter, numbers, you and you've may hospice and also really of give describe in want quarter

Barbara Jacobsmeyer

have month. was Only don't I specific month actually. by the as this, trends it

Mark Tarr

second permanent issues. be Generally quarter we careful see or the more any that, the about being You've the within as and of limitations because of hospice don't particularly season. got home summer well holidays health as the in to speaking,

Frank Morgan

about Got the And think regions, explanations talked particular and think any when that market-specific? could in I you you. mentioned specific out? was be might Any labor, call some I you business. that you And that regions hospice

Barbara Jacobsmeyer

call out in say is I some the already I that, we've hires quarter, would changing. it's our I really so second would that nice No, today had what think actually potentially increase over changes,

major don't I anything that concerns there's that in particular have over. So know we

Douglas Coltharp

geography. that Frank, But is same market-by-market no the really It's a would see the for really also of bode in It terms to trends hospitals. phenomenon.

Operator

question with of Chickering next Pito Deutsche the Your comes Bank. line from

Philip Chickering

as filing? as now made of the order you through fast take announcement don't to and guys the in And you the if you the the spin the S-X, questions I want the filed Crissy do know to answer. rough how Crissy's that me able you Is Barb you on process why talk finally, S-X do I strategic let XX a to about review, submitted? can confidential can the decided if and announcements us see meet are S-X public can you that walk of some June to CEO that proxy we but you Can ask so? S-X? was CFO when And

John Darby

that at Yes. we're Peter, not position Pito, this to that's in - that's provide detail point.

Philip Chickering

the you answer of the to transacted? if Couldn't route fast that that you be - could simple how decided you a provide S-X was go, just filed

Mark Tarr

our within completely That's control.

Operator

comes John Ransom of the James. Raymond from line question with next Your

John Ransom

question Yes, to - answer. to to actually going going you're ask the try I'm answer

neutral a bit business, there developing a if won't care, means just on we that it If But kind so, So that value-based bps? Or Are does at momentum? a you what kicker? contracting a pick-up? - like? a And And good do arrangement? think this we inch example, any than things. along? ago. a up you look Are is lot fee-for-service reason value-based you might little this to of of it lot X downstream? what might impression think of or a is is have is pick slower is be percentage IRF all X-sided the your look at with for years in cases then point that Is this taking continue my of are kind now And just approximately guy we a might thought that guy/bad where to of

Mark Tarr

So the it's business. in virtually, the within of everything contracts that and book we're doing health with regard is to segment value-based MA home care

portion a is business. it relatively a our of it's growing but that small correct You're

just address to that try reason think the are set companies versus it's it. home the even that on willingness in that. to because we've IRF is on of though MA associated up side yet, with it's IRF complexity side And something expressed the to health not the the I tackle the

think I ago. as just the versus expectations or had we X X definitely recently around it's years that

And kind think models they we of continue and participation. I continue steady. economic have it don't of us, that forward, we'll jump. to to for it's going we continue through those a sudden be do where it's think catalyst it's We any a be anticipated. think to slow than make for more move learning definitely but and would to to going kind refine We in our participant sense developing slowly see we'll to be

Douglas Coltharp

both a voluntary John, our our pace we at at just work that point. to CMMI either we it the trade gone do with We our snail's and have. do work wants this and, forward, very in moving But of to our a favor with as part think we to has Clearly, our upon provide pace, of proposition associations, yes, programs, value we of see as you use based have will as value what relative of quality think new slow it segments. this to or lot up a has noted, we'll the moved mandated. in administration

Mark Tarr

and things common on historically you lowest struggled M&A with the rate to differentiated just between providers business, they when We from that that therefore, through. is got do denominator one home the our before we've the perspective. based not believe MA have of at shines quality look get the of book into plans a health Specifically, the quality. And

get arrangements inures a of least have on the in into part is think we we our based, quality stipend that care, And to at so that that can benefit. if

John Ransom

you mean, And care seeking of one look And to just competitors intensive about care just at X with bought talked this X you have as you've the business go of for sort think a with do and I of X the sure at that need your admissions look XXX that's to business. some kind a you or or bypass about for quick DRGs, model SNF-at-home. if a the of tech-enabled What's But kind and begin both hospital post-acute home out years, hospital I'm got models altogether that - follow-up. going follow-up. your we're and in - a home a start obviate they capabilities? like SNF X-day

Mark Tarr

in we number Well, are what done those have there backgrounds a to for. we're from of diagnostic of that think, of different historically nursing a could physical what the demand setting, advancements of been given types preparing the setting. - facilities certainly be we number have the a health, SNF-at-home That's that meet that's home home gone,

than to hospital in efficient a in are go. hard would think home for a home the in high way intensity could that hospitals provided of be to long patients need hospital. are it a the They what our that Certainly, that, imagine be setting more nondiscretionary. care. a has providing And we're I manner in

Douglas Coltharp

lose try you into you benefits of of acuity the home, the to of push scale. If that all kind

to essentially ratios able hospitals. for as at one-on-one kind run we the that You in to have in being staffing of to EPOB, go opposed of and instance, the kind home to do our

Operator

Instructions]. [Operator

Capital line from question comes of Markets. the BMO next Your Matthew Borsch with

Unidentified Analyst

Ben Matt. have actually in for filling You

in results that So a as some question you will mentioned. the rehab, assessing seen as do growth well we've My manner in utilization some the and beyond growth EBITDA discharges think you and de benefit pandemic nice novo previously shifts? business patient inpatient when expectations, the in sustained around is the of what - opportunities for IRF the

Mark Tarr

amount on bed the we the obviously, deploying de remain very and evidenced growth bullish side. capital about the we're both the of novos there, expansions capacity So the towards

the future. quite that's we the that for said, definitely expected foreseeable we cohort a population address growth, overall the years, demographics U.S. hospitals The and through few rehabilitation the a fastest-growing population our to at age of continue As multiple is cohort inpatient in of are the our favor. for

technological kept increasing the with we don't population. In And that, the the as well. the of high of of kind beds as obsolescence up in addition the the risk IRF not supply licensed to demand simply of in see any U.S. has aging

IRF starting that broader standpoint address be SNF. a to when had point that had your market to we the a believe to for want years, address box provided very died an about have would kind flex also direction, towards to kind it our said, site-neutral here, some dialogue And around remain begin single ever addressable ultimately, expanded to being optimistic you an moving And that with to So we of It the several and physical is versus move exponentially. is over an from you inpatient post-acute has that to have continue an inpatient IRF or LTAC of to the currently down is a a going fact, that from space. And IRF we to setting staffing the if, IRF do to really post-acute you're standpoint services it an LTAC will model, even a if We've of space what the been last the even investing you able in SNF. though services. that of in acuity, better to need have for may because spectrum in gets bet. if a total kind head

Douglas Coltharp

to high we the with that years a to Health could future had, think Matt, higher-acuity impact will a year acuity. that ability we've through Others post-acute have of we on we to reputation sector, themselves, such an them very functioning handle fashion. some last And that that into show higher-acuity the for carry think level can handle that over Encompass quality COVID of think the strong and And that level. not and a developed back reputational we've the areas last in patient came get year to certain proved of for certainly patients was us high as and we opportunity our IRF patient. exposed provide

So continued services. on the we're very bullish for demand IRF

Operator

concludes call back for the now Crissy closing This I Carlisle to today's section. turn will Q&A remarks.

Crissy Carlisle

you additional has at anyone Thank If call. today's please again me XXX-XXX-XXXX. call questions, for joining

Operator

This concludes call. conference today's

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