Enhabit Inc Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Mok - UBS Investment Bank, Research Division - Analyst : A couple of questions on hospice. Same-store hospice admissions were down 11% in the quarter, which I think is the seventh straight quarter of double-digit negative organic volume growth. When you take a step back and evaluate that business, what do you attribute the sustained admissions weakness to? And when do you think that will start to stabilize, especially with respect to the new case management system that you're implementing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 10, 2023 / 2:00PM, EHAB.N - Q1 2023 Enhabit Inc Earnings Call

Question: Andrew Mok - UBS Investment Bank, Research Division - Analyst : Got it. And then on patient days in hospice, that was down 4% sequentially from the fourth quarter, even though admissions was up 7% and discharge length of stay was up 4 days. Can you help us understand what's going on here that would result in patient days down sequentially when the underlying components seem to indicate up?

Question: Andrew Mok - UBS Investment Bank, Research Division - Analyst : Got it. Okay. And I'm just going to make the assumption that I'm last here and use that as an opportunity to squeeze in one more. Your corporate G&A increased $5 million quarter-over-quarter and $10 million year-over-year. With all the pressure in the business, you're investing in G&A at a time when most of your peers are pulling back. Can you help us understand why increasing G&A and back-office staff is the right investment decision here when there is additional reimbursement cuts on the horizon?