Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| We are excited about the upcoming year and are confident that our partners will continue to manage and innovate through all the lingering challenges on the labor front |
| Strong recruiting, combined with turnover rates far below state and national averages, has, in turn, led to consistently exceptional clinical outcomes, such as a 5-star CMS rating and some of the lowest hospitalization rates in the state |
| During the quarter, we saw continued improvement in occupancies in managed care revenues, which is particularly impressive given the persistent labor market pressures and the return of more typical seasonality |
| More specifically, we were pleased to see same-store occupancy of 79.5%, which grew by 290 basis points over the prior year quarter and by 97 basis points sequentially over the second quarter |
| Given the upward trend in same-store occupancy through the quarter, we are confident that we are on a path to reach and eventually exceed our pre-COVID same-store occupancy at 80.1% as we move into higher mission months of fall and winter |
| We also continue to build stronger relationships with our managed care partners due to better coordination of care, increased capabilities and strong clinical outcomes |
| Since joining the organization in the year 2000, Summerfield Healthcare Center has consistently achieved strong outcomes year after year, while also providing strength to sister facilities in the Northern California area |
| However, due to our local operators strong clinical reputations, we are continuing to see elevated skilled mix when compared to pre-COVID levels |
| This continued growth in skilled mix demonstrates the increasing and sustainable demand for skilled post-acute services, including within the context of our managed care patients |
| We are very excited to see our local field and service center partners share and apply best practices as they respond to the persistent labor market challenges |
| And as we've shown, we prefer to buy the real estate where we can, but really attractive leases are a great way for us to grow as well |
| So pretty excited about the ability we have both with cash and to use our revolver to fund it |
| We are also encouraged to see wage inflation slow down and our ability to successfully recruit new talent growth |
| Their commitment has blessed the lives of so many, including our own, and we're excited about our future because of these amazing partners |
| Due to our solid results during the quarter, as well as continued strength from our recent acquisitions, we are increasing our annual 2023 earnings guidance to between $4.73 and $4.79 per diluted share up from $4.70 to $4.78 per diluted share |
| We have evaluated multiple scenarios and based on the strength in our performance and the positive momentum we have seen in occupancy and a strong skilled mix as well as some additional strength in Medicaid and managed care programs, we are confident that we can meet this guidance |
| We are proud to report another strong quarter and are pleased that we have been able to continue to improve our clinical and financial results across our portfolio |
| As Barry highlighted, we’ve seen some exciting trends in occupancy, managed care growth and cost containment as well as continued progress in our recently acquired operations |
| As a result, we saw increased volume in our same-store and transitioning combined managed care census and managed care revenue, which increased during the quarter by 6.6% and 13.8%, respectively, over the prior year |
| We are grateful for the efforts and commitment of our teams and caregivers and leaders who work endlessly to support and love one another, which allows for the high-quality patient outcomes they consistently achieve |
| The combination of the rate environment and the slowing of inflation in some of our biggest costs, including labor, we'll continue to add to the operational momentum we have gained this year |
| We are encouraged by the strong reimbursement environment for Medicare and other payers |
| We also own 112 assets of which 107 are held by Standard Bearer and 88 are owned completely debt-free and gaining significant value over time, adding even more liquidity to help us with future growth |
| There are so many opportunities in front of us to improve labor and drive occupancy and skilled mix as we continue to successfully transition dozens of recently acquired operations |
| We also see enormous growth opportunities and skilled mix in a way that best serves each unique healthcare market |
| When combined with a number of very attractive acquisition opportunities that we see on the near and far horizon, we are poised to again showcase our ability to find, acquire and transition performing and underperforming operations by applying proven Ensign principles developed over two decades |
| As we relentlessly follow and protect the cultural fundamentals that got us here, we are confident that we will continue to consistently produce world-class clinical and financial performance |
| As we expected, we continue to add to our growing portfolio and are very excited about the six new operations and four real estate assets we added during the quarter and since bringing the number of operations in our newly acquired bucket to 51 |
| And having examples like Summerfield and Redmond gives us confidence that as we are disciplined in applying tried and true principles, our future is bright |
| The benefits of Redmond's employee-first formula extend far beyond just improved clinical reputation and occupancy |
| Statement |
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| That piece too is something that is really not much of a threat to what we are seeing in our facilities as far as our patient population other than it's just creating a slowdown in terms of getting Medicaid patients approved |
| If our people systems aren't where they ought to be, then that becomes more challenging |
| We also continue to see evidence that many operators are struggling |
| Additionally, other factors that could impact quarterly performance include durations in reimbursement systems, delays and changes in state budgets, seasonality in occupancy and skilled mix, influence of the general economy on census and staffing, the short-term impact of acquisition activities, variations in insurance accruals and other factors |
| As expected, we saw a seasonal decrease to skilled mix during the quarter |
| These statements are subject to risks and uncertainties that could cause our actual results to materially differ from those expressed or implied on today's call |
| I would say really all the portfolios that we've seen and the sizable ones are very much distressed in a turnaround situation |
| So usually, what we do is, it's some kind of a blend between the two and our debt levels are extremely low |
| I think it would be a futile effort to rally too much energy around getting it just completely struck down |
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