Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an update on behavioral health volumes and guidance for the year? A: Steve Filton, CFO, stated that the full-year guidance assumes behavioral patient day revenue growth of 2.5% to 3%. March showed improvement after weather-related impacts in January and February, and they remain confident in achieving the target for the year.
Q: What is the status of Medicaid supplemental payment programs in Nevada and other states? A: Marc Miller, CEO, mentioned that Nevada's program has been reapproved, and payments were received in April. They are awaiting approvals in Washington, DC, and Tennessee, with expectations of positive outcomes based on state feedback.
Q: Are there any changes in behavioral referral patterns or joint venture partnerships? A: Steve Filton, CFO, noted no significant changes in referral patterns or JV partnerships. The demand remains strong, and they are confident in achieving their growth targets despite weather impacts earlier in the year.
Q: How are you managing potential tariff impacts on your supply chain? A: Steve Filton, CFO, explained that about 75% of their supply chain is insulated from tariffs. They are monitoring vendor contracts and preparing alternative sourcing strategies but have not faced significant tariff-related pressures yet.
Q: Can you discuss the impact of flu season on acute care volumes and supply costs? A: Steve Filton, CFO, indicated that the busy flu season led to more medical cases, which slightly muted acuity. Supply costs were well-managed, and they expect acuity to normalize as the year progresses.
Q: What are your capital expenditure and share repurchase plans for 2025? A: Steve Filton, CFO, stated that they plan $800 million to $1 billion in CapEx and have repurchased $180 million in shares in Q1, with a full-year target of $600 million, subject to market conditions.
Q: How are you addressing premium labor costs and expense management? A: Steve Filton, CFO, reported that premium labor costs are stable, and expense management has improved due to a more stable labor market and better productivity management.
Q: What is the outlook for Medicaid supplemental payments and potential legislative impacts? A: Steve Filton, CFO, acknowledged the uncertainty in Medicaid supplemental payments but emphasized the need for volume growth to drive future business, as legislative actions may impact Medicaid rates.
Q: How are commercial rate updates affecting your pricing strategy? A: Steve Filton, CFO, mentioned that commercial pricing is tracking within their guidance, with a focus on managing payer relationships and addressing any aggressive behavior from managed care companies.
Q: What is the status of the Pavilion case settlement and insurance coverage? A: Steve Filton, CFO, confirmed a tentative settlement in the Pavilion case, pending court approval, and noted substantial remaining insurance coverage for 2020 cases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.