Q1 2024 Healthcare Services Group Inc Earnings Call Transcript
Key Points
- Healthcare Services Group Inc reported strong Q1 financial results with a 10.7% increase in adjusted EBITDA over Q1 of 2023.
- The company achieved 95% cash collections despite the temporary impact of the Change Healthcare cyberattack.
- Healthcare Services Group Inc is confident in delivering year-over-year growth in 2024, with significant new business additions expected in the second half of the year.
- Industry fundamentals are improving, with a slow but steady increase in workforce availability and rising occupancy rates nearing pre-pandemic levels.
- The company has made strategic investments in employee engagement and technology to enhance customer experience and operational efficiency.
- The Change Healthcare cyberattack disrupted Q1 operations, affecting cash collections and billing activities of many customers.
- Q1 is historically the most challenging quarter for cash collections, following Q4 which typically sees the strongest collections.
- Adjusted SG&A was reported at 10.1%, which is outside the company's target range of 8.5% to 9.5%, due to increased investments.
- There are ongoing industry challenges such as the CMS's final minimum staffing rule, which could lead to facility closures and reduced access to care if implemented.
- The company faces potential risks from higher ownership turnover in the SNF industry, which could affect client retention.
Hello. Welcome to Healthcare Services Group 2024 First Quarter Earnings Conference Call.
The matters discussed on today's conference call include forward-looking statements about the business prospects of Healthcare Services Group, Inc. For Healthcare Services Group Inc.'s most recent forward-looking statement notice, please refer to the press release issued this morning which can be found on our website, www.hcsg.com. Actual results may differ materially from those expressed or implied as a result of various risks, uncertainties and important factors, including those discussed in the Risk Factors MD&A and other sections of the annual report on Form 10-K and the Healthcare Services Group Inc. other SEC filings. And as indicated in our most recent forward-looking statement notice, additionally, management will be discussing certain non-GAAP financial measures. A reconciliation of these items to US GAAP can be found in this morning's press release.
I'd now like to hand over the conference to the President and CEO, Ted Wahl
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