Enhabit (EHAB) Q1 2025 Earnings Call Transcript

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Thursday, May 8, 2025 astatine 10 a.m. ET

• President and Chief Executive Officer — Barb Jacobsmeyer

• Chief Financial Officer — Ryan Solomon

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Barb Jacobsmeyer, President and Chief Executive Officer; and Ryan Solomon, Chief Financial Officer. Before we begin, if you bash not already person a copy, the archetypal 4th net release, supplemental accusation and related Form 8-K filed with the SEC are disposable connected our website astatine investors.ehab.com. On Page 2 of the supplemental information, you volition find the Safe Harbor statements, which are besides acceptable distant connected the past leafage of the net release. During the call, we volition marque forward-looking statements, which are taxable to risks and uncertainties, galore of which are beyond our control.

Certain risks and uncertainties that could origin existent results to disagree materially from our projections, estimates and expectations are discussed successful our SEC filings, including our Annual Report connected Form 10-K, which are disposable connected our website. We promote you to work them. You are cautioned not to spot undue reliance connected the estimates, projections, guidance and different forward-looking accusation presented, which are based connected existent estimates of aboriginal events and talk lone arsenic of today. We bash not undertake a work to update these forward-looking statements. Our supplemental accusation and treatment connected this telephone volition see definite non-GAAP fiscal measures.

For specified measures, reconciliation to the astir straight comparable GAAP measurement is disposable astatine the extremity of the supplemental accusation and the net release. With that, I'll crook the telephone implicit to Barb.

Barb Jacobsmeyer: Thanks, Jobie. Good morning, and acknowledgment for joining us. In our year-end net call, I outlined however executing connected 2024 strategy laid a promising instauration for 2025 success. Our squad has done a tremendous occupation successful the archetypal 4th gathering connected that foundation. Our archetypal 4th location wellness show is the effect of executing connected our payer declaration initiatives. We started 2025 successful a stronger presumption with our payer contracts, and we're capable to afloat absorption connected growth. Our admissions from 4th 4 to 4th 1 accrued by 8.1%, with fee-for-service besides increasing 4% sequentially. Our year-over-year admittance maturation was up 0.7%. When normalized for Leap Year and the interaction of our closed branches, maturation is 2.5%.

Our full location wellness census was down 2.4% year-over-year owed to a debased introduction constituent successful January. Sequentially, full census was up 3.7%. Census maturation occurred each period successful 4th one, exiting March astatine an mean regular census 9.8% higher than January. Our non-Medicare admissions were up 7.4% year-over-year, chiefly driven by our payer innovation contracts. We accrued the percent of location wellness visits and payer innovation contracts. In the archetypal 4th of 2024, 38% of non-Medicare visits were successful payer innovation contracts. That complaint grew to 44% successful the archetypal 4th of 2025. Payer premix advancement to payer innovation contracts resulted successful a 7.6% betterment year-over-year successful non-Medicare gross per visit.