Enhabit Inc Q3 2024 Earnings Call Transcript

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

Question: Brian Tanquilut - Jefferies LLC - Analyst : Maybe Barb first question, I appreciate the comment here in the United situation. So just to clarify. So no sign agreement, but you sound more positive. So as we think about that, I mean, right now, it sounds like you're strategizing and operating as if that's not signed yet, right? Like that's not going to happen. So maybe if you can share any qualitative commentary on the progress you're making in terms of shifting capacity to these payor innovation contracts and the success you're seeing there. And then maybe the flip is what is an acceptable agreement for you guys as it relates to United?

Question: Brian Tanquilut - Jefferies LLC - Analyst : And then maybe just in the comments in 2025 I mean, as I sit here and think about a mid single digit home health volume outlook that you shared. Looking at the hospice rate, Barb, looking at home health with a 50 basis point improvement there from CMS and more patients going through parent innovation contracts plus the success you've had with corporate overhead. I mean, so is it correct to think if we build all that up that points REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 3:00PM, EHAB.N - Q3 2024 Enhabit Inc Earnings Call to a decent level of EBITDA growth next year? I mean, maybe is that the right way to think about it? And then any headwinds you want to call out that maybe have not describe or called out yet.

Question: A.J. Rice - UBS Securities LLC - Analyst : On the branch closures, I think you said you were looking at potentially 8 to 10 closures. I wondered if you could give us some parameters around how much revenue that might represent overall. And are those branch closures in areas where you would have another branch that might pick up some of that volume or with those closures. Would it pretty much all go away?

Question: A.J. Rice - UBS Securities LLC - Analyst : And my follow up, I guess on the comments on '25 on the revenue line, those are helpful and and obviously that will impact somewhat your margin, how much leverage you can get from growing the top line. But you've done well, this year and your cost per visit, metrics on both sides of the business, home health and hospice. Do you have any early thoughts on what you can do on that metric going forward? Should we assume that it's more of inflationary updates going into next year? Is there any reason to think you can hold the line as you've done this year again next year?

Question: A.J. Rice - UBS Securities LLC - Analyst : So 30% would be the high end and then you'd be through leverage, you could potentially bring it down somewhat. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 3:00PM, EHAB.N - Q3 2024 Enhabit Inc Earnings Call

Question: Ryan Langston - TD Securities LLC - Analyst : First of all, just say thanks Crissy for everything, really appreciate it and enjoyed working with you. I guess on the business development side for hospice, obviously generating pretty positive momentum there through the months, I guess. What tactics are you employing that are driving that success? Is it just strengthening relationships, finding new referral sources? Anything else specifically you would point to?

Question: Ryan Langston - TD Securities LLC - Analyst : And then just real quick on UNH, I think to Brian's earlier question sounds like you might be a little bit more positive. I guess, I think you said you were down about 1,000 on that particular payor. But if you, I guess come to an agreement that you're satisfied with, do you have capacity to retake a bunch of that volume like back in the near term or is that just more of a slower turn that side back on. Thanks.