Financial Data and Key Metrics Changes - The company has increased its estimate of the potential impact from the expiration of enhanced subsidies from $50 million to a range of $50 million to $100 million, primarily affecting the acute care division [4][5] - The company reported a $25 million EBITDA loss in Q2 due to delays in obtaining deemed status for the Cedar Hill hospital, with an additional estimated loss of $25 million for the second half of the year [21][23] Business Line Data and Key Metrics Changes - The acute care division is expected to see same-store revenue growth in the range of 5% to 7%, with surgical volumes being somewhat soft compared to previous years [17][18] - The behavioral health segment is experiencing labor shortages, impacting the ability to meet demand, but improvements in recruitment and retention are anticipated [45][48] Market Data and Key Metrics Changes - Approximately 6% of adjusted acute admissions are exchange patients, which is lower than competitors like Tenet and HCA, indicating geographical differences in patient demographics [8] - The company expects to capture more market share in behavioral care as it addresses labor shortages and improves recruitment [51] Company Strategy and Development Direction - The company is prepared to implement cost efficiencies and modify its cost structure in response to potential revenue reductions from the loss of exchange volumes and Medicaid supplemental payments [10][12] - The company is exploring M&A opportunities, particularly in the acute care sector, if financially distressed not-for-profit hospitals become available [57][58] Management's Comments on Operating Environment and Future Outlook - Management described 2024 and 2025 as the first clean post-COVID years, expecting a return to normative growth models [17] - The company is optimistic about the sustainability of its growth rates, particularly in the acute care division, despite some softness in surgical volumes [18][19] Other Important Information - The company is leveraging technology, including AI, to improve operational efficiency and reduce costs in areas such as revenue cycle management and patient follow-up [38][40] - The company anticipates that Medicaid supplemental payment programs pending approval could add $150 million to $200 million annually if approved [14][15] Q&A Session Summary Question: What is the impact of potential subsidy expiration? - Management noted that there is speculation about an extension of subsidies, but they have increased their estimate of the impact on revenue due to potential loss of coverage [4][5] Question: How is the company addressing cost efficiencies? - Management indicated that they have a menu of options to adjust the cost structure and are prepared to react to regulatory changes [10][12] Question: What is the outlook for surgical volumes? - Management expects surgical volumes to improve incrementally as the year progresses, although they have not seen dramatic changes in Q3 [19] Question: What is the status of Cedar Hill hospital? - Cedar Hill is awaiting deemed status approval, which is expected soon, and management anticipates improved financial performance following this approval [22][23] Question: How is the labor market affecting operations? - Management reported that labor pressures have stabilized, with wage inflation returning to more normative levels [26][28] Question: What is the outlook for commercial rates? - Management expects contractual price increases from payers to be in the 4% to 5% range moving forward [33][34] Question: What is the company's approach to M&A? - Management is open to M&A opportunities, particularly in the acute care sector, if financially distressed hospitals become available [57][58]

Universal Health Services (UHS) FY Conference June 09, 2025 08:00 AM ET Speaker0 Alright. Good morning, everyone. I'm Jamie first this is the first session of the day. So I we're required to make disclosures in public compensation either 1% or more ownership. We're prepared to repeat the loud disclosures for press however these are available to our in our most recent reports, we Speaker1 would find a on our firm portal. Alright. So with that out of the way, we're we're kicking off today with UHS, and we hav ...

LifeMD (LFMD) Q1 2025 Earnings Call May 06, 2025 04:30 PM ET Company Participants Justin Schreiber - Chairman & CEOMarc Benathen - CFODavid Larsen - Managing DirectorSteve Dechert - AVP Conference Call Participants Sarah James - AnalystSteven Valiquette - MD & Senior Equity Research Analyst - Covering Health Care Technology & DistributionYi Chen - Managing Director & Senior AnalystAnderson Schock - Research Analyst Operator Good afternoon. Thank you for joining us today to discuss LifeMD's results for the f ...