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: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Maybe a couple for Megan here. So, based on the most recent BLS data, we're seeing that SNF employment headcount is down, call it 15%, while
the hourly cost of labor is up around 15%. So I'm wondering within that framework, can you give a sense of what percentage of the SNF labor force
is currently attributable to agency labor?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. Then I think in your prepared remarks, you had mentioned that the cost was about 5x that of your standard labor pool? Or am I mixing a
message there?
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FEBRUARY 03, 2022 / 3:00PM, OHI.N - Q4 2021 Omega Healthcare Investors Inc Earnings Call
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And then, I mean, I know this is a bit of an abstract question, but given that we are approaching the time of the year when we could get a
sense of what the preliminary ruling looks like? I mean, what kind of rate basket increase would you view as favorable? And then what do you think
could come in as draconian given the current operating environment?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. I think we'd all agree with you there. And then another one on occupancy trends. You can see that Guardian, I believe, recently reported a
pretty strong increase in referrals. I think it was to the tune of about 125%. Do you get the sense that these patterns will reflect an occupancy gain
in the coming months? Or do admissions remain difficult given the labor picture? I mean -- what I mean to ask here, are those increases in referrals
translating to occupancy at present?
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: It came out of Skilled Nursing News the other -- a couple of weeks back.
Question: Connor Serge Siversky - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And then last question for me. Just thinking about the potential portfolio sales. I mean where do you seek to push the proceeds from these
sales? I mean, would you push them directly to the share buyback, given your cost of capital and the risk of acquiring assets in the current environment,
or perhaps pushing it to the ongoing kind of maintenance CapEx or capital improvement projects you have?
Question: Omotayo Tejamude Okusanya - CrTdit Suisse AG, Research Division - Analyst
: In regards to the loan book, you actually did take the charges according to FIFO. But going forward, I'm assuming those loans are still performing
and they're still booking all the interest income associated with it. Is that a correct assumption? Or should we be making some adjustment for that
in 2022 as well, relative to what you received in fourth quarter?
Question: Omotayo Tejamude Okusanya - CrTdit Suisse AG, Research Division - Analyst
: Okay. That's helpful. And then also during the quarter, I noticed that you did have a severance charge, I think, on LinkedIn, it looks like Steven Insoft
has kind of moved on. Could you talk a little bit about that and kind of what that may mean in regards to what the setup for the future management
team? Does he get replaced? Are those responsibilities being handled by someone else?
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