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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| The partners we added in 2023 are ahead of plan and doing terrific, including the industrial injury prevention partnership that brought us our first software product, which is getting strong reviews and [indiscernible] a great overall year in injury prevention |
| They finished the year in a really strong fashion, with 9.7% revenue growth in our final quarter, and a 330 basis point improvement in margin in what has been a seasonally slower quarter for this subset of our business, all of which sets the table for a good growth year ahead in 2024 |
| So we've had really good success in these discussions |
| Each quarter in 2023 produced a record for volume across our growing network of clinics, finishing the year for the first time in our history at 30 visits per clinic per day |
| I mean, we think we could -- we hope to have strong volumes, really, that's going to be -- that's one of those factors that we [ haven't amount ] in the plan, and we -- it's a nice mid-single-digit kind of growth number, 3% to 5% probably growth for same -- for our existing clinics, and we think that's achievable in 2024 |
| Demand remained strong throughout the year |
| Helping to meet this demand, our clinical teams did an exemplary job caring for our patients, which in turn creates additional demand from happy customers who were further colleagues, friends and neighbors to us |
| Despite a rather tight labor market, we were able to attract and hire therapists to enable us to achieve these record volumes |
| We have tremendous confidence in our team to produce EBITDA growth in 2024 |
| And our clinical cost efficiency improved in 2023 despite significant inflationary pressures |
| I'm particularly proud of our ops team and their efforts to keep these many factors and forces in balance throughout the year, all while juggling numerous initiatives, including opening or tucking in 35 clinics and working to integrate an additional group via acquisitions in both PT as well as injury prevention |
| And then maybe, Carey, as I think about the gross margin side, you highlighted your success there, and it obviously is very impressive |
| The market continues to be tight, but we can call it unforgiving, the recruiting team here, combined with our partners locally our ops folks, everybody is working together to do a good job to get new clinicians into the company |
| Our balance sheet remains in an excellent position |
| And so it's a good opportunity for us |
| And to our prevention partners for weathering what we expected to be a more challenging year in '23, with great continued success in keeping thousands of workers and companies that we serve healthy and injury free |
| As I mentioned earlier, our IIP business saw a nice growth in the fourth quarter |
| We've made some good progress so far |
| So we continue to get better from a retention perspective, and we continue to get better in terms of our ability to source licensed staff across the organization |
| Despite challenges as we enter 2023, including the 2% Medicare rate reduction that we've talked about on a tight labor environment, our team produced strong results in 2023 |
| As Chris noted, we recorded the highest patient volumes in the company's history in 2023 at 30 patients per clinic per day |
| Our physical therapy revenues increased more than $50 million in 2024, which was a 10% increase -- 10.6% increase over the prior year |
| And clinical turnover number this year was the lowest number we've had in 5 years, and it was 1.5 percentage points better than 2022, which also helped us from a business [indiscernible] perspective |
| Our industrial injury prevention business strengthened as the year progressed, with fourth quarter revenues up 9.7% over the prior year fourth quarter, and IIP fourth quarter operating income up almost 30% over the prior year |
| So despite the challenges as we began the year, our team produced some very good results, and there was a lot of good work done in 2023 that positions us well as we go forward |
| Further, we strengthened our capital structure with a secondary offering in May 2023, which was done on an accretive basis, providing us with cash to deploy into growth opportunities |
| And we achieved year-over-year growth in both adjusted EBITDA and operating results |
| As you know, there's a very favorable rate in the days market and well below the current Fed funds rate |
| In closing, we feel very [ good ] growth in 2024, and we look forward to producing strong results for all of our stakeholders in 2024 |
| Our average visits per clinic per day in the fourth quarter were 29.9, which is the highest volume in the company's history for a fourth quarter |
| Statement |
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| Not to say it's not frustrating would be an understatement, I mean it's been a frustrating period |
| But look, we're -- inflation has been a little challenging, too |
| So I appreciate you highlighted that Q1 will have a tough comp |
| And we'll meet with MedPAC to talk about some of their scoring and their lack of ability to score true savers in the system like, for instance, fall prevention is a saver |
| The 3.5% Medicare rate reduction that went into effect on January 1, results in a $6 million reduction in revenue and a $5.3 million reduction in EBITDA net of minority interest |
| And then just a quick question, I guess, on the lack of action in Washington and just the CMS cut this year |
| For the full year, salaries and related costs were down $0.33 per visit versus the previous year |
| I would tell you, CMS is a frustrating place, we seem to have a lot more empathy in Congress |
| That was down slightly from the 20% we had in the fourth quarter of '22, with the change due to the decrease in our net rate versus the prior year |
| Christopher Reading Yes, it's not dead yet, Mike, but it's a tough lift |
| Past year was one of persistently high demand for our physical therapy services |
| It's like, it's a new ad [Technical Difficulty], given the prevention of a massive downstream expense doesn't make sense |
| But I think we're at the end, and I think we'll get back into a more normal pattern as we go forward with small increases every year, I think people understand that they're picking on the wrong guys and that this isn't sustainable to have 3 sequential years of cuts, and that's what I believe |
| It's just a crazy way to do it |
| If it is, it's a massive amount of cost |
| In January this year, we did have some significant weather events, which was more in line with our historic experience |
| I think I lost you |
| Our salaries and related costs decreased to $59.72 in the fourth quarter, down from $60.04 in the fourth quarter of 2022 |
| On workers' comp, I know you guys have expressed maybe over the last 2 to 4 quarters, some optimism around possibly changing the trajectory there and then getting that back up into sort of the low double-digit range |
| Based on the rules, MedPack is unable to score as a saver to have to score it as a coster |
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