The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Meghan Holtz - Jefferies LLC - Analyst
: Good morning. This is Meghan Holtz, on for Brian Tanquilut. Congrats on the quarter. And, Barb, best wishes going forward. It's been great working
with you. So we appreciate the commentary on the proposed home nursing rule.
But can you guys talk about how you're thinking about mitigating the negative impact of it, and whether you believe there are operational levers
you can pull on that can fully offset if the negative 6.4% is put into place?
Question: Meghan Holtz - Jefferies LLC - Analyst
: Thank you. And then can you guys give us some color on the recent payer disruption that you mentioned in the slide deck, and how that new
national payer contract coming in might impact volumes and rates going forward?
Question: Meghan Holtz - Jefferies LLC - Analyst
: Got it. Thank you very much.
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AUGUST 07, 2025 / 2:00PM, EHAB.N - Q2 2025 Enhabit Inc Earnings Call
Question: AJ Rice - UBS AG - Analyst
: Hi, everybody. Just a clarification to that last question. On the proposed rate update, I think there was some question about the reset. If they take
it down to 6.4%, is it just the baseline from there would get the full recoupment? Or would there need to be follow-on cuts in subsequent years to
get the full recapture that they're looking for? Have you gotten any clarity on that?
Question: AJ Rice - UBS AG - Analyst
: Yeah, no, that's good. That's what I was looking for. On the -- there's a lot of different things going on with the home health metrics. It seems like
Question: AJ Rice - UBS AG - Analyst
: Okay. All right.
Question: AJ Rice - UBS AG - Analyst
: Okay, great. Thanks so much.
Question: Ryan Langston - Cowen and Company LLC - Analyst
: Hi, good morning. On Hospice ADC growth, I think you previously cited monthly progression since January 2024, and now you're citing it sort of
on a quarterly basis. Can you tell us if ADC grew sort of each month through the second quarter?
Question: Ryan Langston - Cowen and Company LLC - Analyst
: Great. And then last thing, just good to see the deleveraging inflection on the revenue growth as well. I guess, can you remind us what your
longer-term leverage targets are and maybe kind of where you need to get to before you could pivot to M&A or making sort of heavier investments
on the de novo side? Thanks.
Question: Ryan Langston - Cowen and Company LLC - Analyst
: Got it. Thank you.
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AUGUST 07, 2025 / 2:00PM, EHAB.N - Q2 2025 Enhabit Inc Earnings Call
Question: Jamie Perse - Goldman Sachs Group Inc - Analyst
: Hey, thank you. Good morning. I wanted to start with the payer contract you were able to renegotiate in the quarter. You mentioned that that rate
went up low double-digit percentage beginning August 15. I'm sure you're sensitive to the particulars here.
But any color you can give us in terms of how that contract previously compared to your other contracts? Just trying to get a sense of whether
there's opportunity with other contracts as they come up for renewal to see similar type of rate increases. And any dates we should have in mind
for when some of your larger contracts renew?
Question: Jamie Perse - Goldman Sachs Group Inc - Analyst
: Okay. Great. And then just on the fee-for-service Medicare volume pressure, it looks like that has begun to moderate. How much of that is just --
you guys have talked a lot in the past about just getting down to normal mix level between fee-for-service and non-Medicare.
How much is that phenomenon impacting it versus initiatives you're deploying internally and to the extent some of these initiatives prioritization
-- you've talked about color coding different types of payers, green, yellow, red sort of concept, those initiatives kind of impacting that? And then
just how should we think about that progressing in the back half and into next year?
Question: Jamie Perse - Goldman Sachs Group Inc - Analyst
: Okay. And if I could sneak in one more, can you just spend another minute on the pilot programs and what you'll be looking for there? You talked
about operationalizing that and scaling that. Just a little more color on what you'll be rolling out and again, what you'll be looking for there in terms
of gauging success.
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AUGUST 07, 2025 / 2:00PM, EHAB.N - Q2 2025 Enhabit Inc Earnings Call
Question: Jamie Perse - Goldman Sachs Group Inc - Analyst
: Great. Thank you.
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