Q1 2024 Pediatrix Medical Group Inc Earnings Call Transcript
Key Points
- Pediatrix Medical Group Inc reported same-unit revenue growth with NICU days increasing by 2.5%, reflecting positive volumes in hospital-based services.
- The company is undergoing an accelerated portfolio restructuring plan aimed at exiting underperforming office-based practices to increase profitability.
- Pediatrix Medical Group Inc has finalized a contract with GateHouse for third-party RCM services, which is expected to enhance cost-effectiveness and support for practices.
- Despite internal additions to the RCM team, the company expects to maintain G&A expenses in 2024 comparable to or lower than 2023 as a percent of revenue.
- The company reaffirmed its full-year 2024 outlook for adjusted EBITDA between $200 and $220 million, indicating confidence in financial stability and operational efficiency.
- Pediatrix Medical Group Inc observed declines in volumes at primary and urgent care clinics, which offset gains in other areas.
- The company used $123 million in operating cash flow in Q1, an increase from $101 million in the previous year, primarily due to changes in accounts receivable.
- The transition to a new RCM provider and the Change Healthcare incident had a slight negative impact on the company's DSOs in the first quarter.
- Pediatrix Medical Group Inc is exiting its primary and urgent care clinic platform, indicating a shift away from previous growth strategies in these areas.
- The company's portfolio restructuring and exit from certain practices are expected to have a significant impact on financials, which might introduce uncertainty in short-term performance.
Ladies and gentlemen, thank you for standing by, and welcome to the Pediatrix Medical Group 2024 first quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded for digitized replay.
I would now like to turn the conference over to Charles Lynch. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to our call. I'll quickly read through our forward-looking statements and then we'll get into our contents. Certain statements and information during this conference call may be deemed to be forward-looking statements within the meaning of the Federal Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions and assessments made by Pediatrix's management in light of their experience and assessment of historical trends.
Current conditions expected future developments and other factors they believe to be appropriate. Any forward-looking
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