The following is a summary of the Enhabit, Inc. (EHAB) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Consolidated net revenue for Q3 was $253.6 million, down 1.8% year-over-year.

• Consolidated adjusted EBITDA increased by 5.6% year-over-year to $24.5 million.

• Home health revenue decreased by $9.9 million or 4.7% year-over-year.

• Hospice segment revenue increased by $5.2 million or 11% year-over-year.

Business Progress:

• Enhabit expanded its hospice and home health segments, with strategic closures and consolidations planned for underperforming branches.

• Implemented a centralized admission department to increase efficiency in handling referrals.

• Deployed a payor innovation strategy leading to substantial growth in non-Medicare admissions.

Opportunities:

• There's a strategic focus on increasing Medicare fee for service and leveraging payor innovation contracts to drive non-Medicare growth.

• With CMS's finalized rule, Enhabit expects a net payment increase potentially boosting Medicare revenue.

• Investments in 'de novo' strategy to enter new markets at low capital cost, expecting to fund future projects with current de novo EBITDA.

Risks:

• The need for ongoing adjustments to branches that may not meet revenue targets or are experiencing a decline in fee for service Medicare volume.

More details: Enhabit IR

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