Financial Data and Key Metrics Changes - Consolidated net revenue totaled $263.6 million, an increase of $10 million or 3.9% year over year [17] - Consolidated adjusted EBITDA was $27 million, reflecting a sequential increase of $0.1 million or 0.4% and a year-over-year increase of $2.5 million or 10.2% [18] - Net debt to adjusted EBITDA leverage ratio improved to 3.9 times, down from 5.4 times in Q4 2023 [15][26] Business Line Data and Key Metrics Changes - Home Health total admissions increased by 3.6% year over year, with a census increase of 3.7% [7] - Hospice segment revenue reached $63.1 million, reflecting a year-over-year growth of 20% [22] - Home health adjusted EBITDA totaled $33.9 million, a decrease of 7.1% year over year [20] Market Data and Key Metrics Changes - Fee-for-Service Medicare census stabilized with a decline of only 1.4% year over year, compared to a 14.1% decline in Q3 2024 [8] - Non-Medicare admissions increased by 10.4%, contributing to a 2.8% increase in non-Medicare revenue per visit year over year [8] Company Strategy and Development Direction - The company is focused on mitigating pricing headwinds from the CMS 2026 Home Health Final Rule through various strategies [29] - The de novo strategy is positively impacting total growth, with plans to open a total of 10 de novos in 2025 [11] - The company aims to improve operational efficiency and reduce costs to strategically invest in people and technology [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within the industry, citing experienced leaders and innovative technology [13] - The company anticipates continued growth momentum into Q4 and has updated full-year guidance for revenue and adjusted EBITDA [27][28] - Management highlighted the importance of maintaining staffing productivity to offset wage inflation [44] Other Important Information - The company has successfully reduced overall bank debt by $15.5 million during the quarter, with a total reduction of $100 million since Q4 2023 [26] - Home office expenses improved to 9.1% of revenues, down from 9.9% in the prior quarter, reflecting effective cost management initiatives [25] Q&A Session Summary Question: Can you provide some color on the rate increase from the new payer innovation contract in November? - Management indicated that they cannot disclose specific updates but mentioned that more regional agreements will be coming up for renewal in the next year [33] Question: Can you provide details on the G&A expense reduction? - Management noted that the reduction came from headcount adjustments and efficiencies gained by insourcing capabilities, estimating that $1 million-$1.5 million of the improvement is durable [34] Question: What seasonal factors drive hospice performance at the end of the year? - Management acknowledged that holiday times can be unpredictable, with patients often delaying decisions until after the holidays [38] Question: How long is the typical recontracting cycle for payer innovation contracts? - Management stated that most contracts are typically three years, with some being two years [40] Question: How is the company managing labor costs and wage inflation? - Management reported an uptick in the applicant pool for nursing and therapy, with wage inflation expected to normalize around 3% [44]