pediatrix(MD)2022-02-17 18:06Financial Data and Key Metrics Changes - The fourth quarter results were in line with expectations, reflecting a strong recovery from the previous year, with total births at hospitals providing NICU services up 5% and NICU days up 5.6% on a same-unit basis [5][6] - The company recorded significant funds from the CARES Act, totaling 16.5 million in adjusted EBITDA for the quarter [8][9] - The outlook for 2022 includes expected revenue of approximately 270 million, with a focus on efficiency improvements [8][16] Business Line Data and Key Metrics Changes - The company achieved solid results in 2021 compared to pre-pandemic levels, with same-unit volumes growing by roughly 1% despite a 2.5% decline in the first quarter of the previous year [6][8] - The transition of revenue cycle operations to R1 is expected to yield meaningful savings, which began to be seen in Q3 of the previous year [7][9] Market Data and Key Metrics Changes - The payer mix was favorable year-over-year, reflecting a slightly favorable comparison to pre-pandemic levels [5] - The company is focused on expanding its pediatric primary and urgent care clinics, with recent acquisitions in Houston and Orlando [10][11] Company Strategy and Development Direction - The company is transitioning to operate under a unified Pediatrix brand, which is expected to strengthen existing relationships and open new opportunities [12][13] - The company is committed to environmental, social, and governance (ESG) goals, having improved its average ISS ESG quality score from over six to three [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of surprise billing legislation is currently limited due to a strong payer relationship and a diversified contract portfolio [15] - The company has not experienced significant workforce pressures or turnover, although the recruiting environment remains challenging [32] Other Important Information - The refinancing of the capital structure is expected to reduce annual debt service expenses by more than half and lower the weighted average interest rate on borrowings from 6.25% to under 4% [18][19] - The company is evaluating several markets for new clinic openings, with plans to open new clinics before the end of the year [45] Q&A Session Summary Question: Initial evidence from payers regarding surprise billing regulation - Management indicated a mix of responses from payers, with some contracts being renewed at higher rates while others are waiting to see how the situation develops [24] Question: Impact of supply chain issues - Management stated that they are not assuming any impact from surprise billing in their numbers, but expect modifications to the IFR based on feedback received [29] Question: Workforce pressures and inflation - Management reported no material workforce pressures so far, although they acknowledge the tough recruiting environment [32] Question: Update on Brave Care acquisition integration - Integration of Brave Care's technology into existing platforms is ongoing and expected to enhance patient experience in clinics [34] Question: Accounts receivable increase and CMS guidance on newborn screenings - Management explained that the increase in accounts receivable was expected due to the transition of the RCM function, and the impact from CMS changes on newborn screenings was noted but not significant to overall revenue [38][40] Question: G&A guidance and savings opportunities - Management discussed ongoing efforts to streamline operations and the potential for future savings from the RCM outsourcing initiative [42][43]