Q3 2021 US Physical Therapy Inc Earnings Call
Other music before the day and thank you for standing by welcome to the U S. Physical therapy third quarter 2021 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session in order to ask a question during the session. Please press.
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I'd now like to turn the call over to Chris Reading President and CEO. Please go ahead Sir.
Thanks, Brazil, good morning, and welcome everyone to our U S physical therapy third quarter earnings call with me today on the line include Carey Hendrickson, our Chief Financial Officer, Graham Reeve and Eric Williams, Chief operating officers, Rick <unk>, Our General Counsel, Jon Bates our controller before he.
Started the discussion around the earnings and operating performance this quarter and year to date, we need to cover a brief disclosure Jon if you would please.
Thanks, Chris.
This presentation contains forward looking statements, which involve certain risks and uncertainties. These forward looking statements are based on the company's current views and assumptions and the company's actual results can vary materially from those anticipated. Please see the company's filings with the Securities and Exchange Commission for more information.
Thank you John.
Going to change things up a little bit from how we typically do that rather than me start out providing select points outperformance in color.
That's scary to walk through the entirety of the financials in detail now we have the complexities.
Result of this pandemic and some of the related secondary issues, where we feel like we need the spanned three years.
In order for you to have the clearest possible picture, which is certainly what we want to have I will say I think Terry and the team have done a wonderful job.
Trying to present this information in a cohesive way that provides the most clarity.
And really in the linear continuity. So that you can see how we do it on a pre pandemic basis in 2019 right.
Right through the current period and then following carries review I'll provide some brief comments related to our performance along with maybe a few key points.
Of interest, but I think you wanted to hear about so with that I'm going to.
Turn it over to Gary.
Thank you, Chris and good morning, everyone. Our financial performance in the third quarter of 2021 and through the first nine months of the year has been very strong as outlined in today's earnings release, we reported third quarter 2021 operating results per share of <unk> 85 cents, which was 21, 4% higher than the 71 sensory report.
For the pre pandemic third quarter of 2019, and it also equaled our record high third quarter operating results for share of <unk> 85.
In the third quarter of 2020, excluding relief funds, which as we noted in our release had benefited from significantly reduced costs related to the COVID-19 pandemic.
Due to the impact of the pandemic on all of our 2020 results I will provide comparisons of our key metrics to pre pandemic periods. In 2019. In addition to comparisons to 2020 periods.
We reported adjusted EBITDA of $19 $9 million for the third quarter of 2021, which was $300000 higher than the $19 $6 million. Excluding relief funds that we reported in the third quarter of 2020, and it was $3 million or 17, 6% higher than the pre pandemic third quarter of 2019.
Revenues in the third quarter of 2021 were $125 $9 million, which was an increase of $17 million or 15, 6% from the third quarter of 2020.
Our third quarter 2021 revenues were $8 6 million or seven 4% higher than the third quarter of 2019.
Our physical therapy patient volumes per day per clinic were $29 five in the third quarter of 2021, which is the second highest volume level in the company's history bested only by the 30.0 that we reported last quarter and it's also a record high third quarter volume level for the company our previous third quarter High was 27 five.
In the third quarter of 2019, which we'd beat this year by seven 3%.
Our volumes per day per clinic were $14, 3% higher than our $25 eight average visits per day per clinic in the third quarter of last year.
Our average visits per clinic per day exceeded 29.0 for the first time in the company's history in March of this year and they've continued at that level or higher for seven consecutive months now.
And based on the activity levels, we've experienced in October we would expect that to be the case again for the eighth consecutive months.
Our net rate for our physical therapy operations was $102 93 for the third quarter of 2021, which compares to $105 91 in the third quarter of 2020.
Our third quarter 2021 rate reflects the three 5% Medicare rate cut that went into effect in January of this year as well as some shift in the mix of our business.
We've had increases in all categories of our business from the third quarter of 2020 to the third quarter of 2021, but some have increased at a greater rate than others. Our total visits increased 19, 9% from the third quarter of 2020 to the third quarter of 2021.
Notably our workers comp visits increased approximately nine 2%, while Medicare visits increased approximately 27, 3%. So as a result higher rate workers' comp decreased as a percent of our total mix and Medicare which is paid at a lesser rate than our overall average rates increased as a percent of our total mix.
Put downward pressure on our overall net rate.
Physical therapy revenues were $112 $3 million in the third quarter of 2021, an increase of 16.5% from $96 $4 million in the third quarter of 2020.
The increase of seven 6% from $104 4 million in the pre pandemic third quarter of 2019.
Revenues for the industrial injury prevention business were at an all time high $10 $5 million in third quarter of 2021, which was a four 8% increase over the third quarter of 2020 and it was a five 5% increase over the third quarter of 2019.
Our team also continues to do a good job managing our cost and keeping our cost increase was aligned with our growth in revenue our operating costs less closure costs were $96 $1 million in the third quarter of 2021, or <unk> 76, 3% of net revenues.
This was 40 basis points better as a percentage of revenue than our 76, 7% in the pre pandemic third quarter of 2019.
Our operating costs less closure costs as a percent of revenue we're at a low point of 72, 1% in the third quarter of 2020.
As a result of the significant steps, we took to reduce costs during the pandemic, including temporary salary reductions furloughs and other similar measures.
Our 76, 3% in the third quarter of 2021 is consistent with the first quarter of 2021, when operating costs less closure costs were 76, 9% of revenues.
A bit higher than our <unk>, 73.0% in the second quarter of 2021.
Looking specifically at salaries and related costs. They were 56.0% of revenues in the third quarter of 2021 versus 52, 8% for the third quarter of 2020, which was lower than normal due to temporary salary reductions and furloughs that are put in place as a result of COVID-19 as I mentioned a moment ago.
Salaries and related costs in the third quarter of 2019 were 56, 9%. So we were better in the third quarter of 2021 by 90 basis points as compared to the pre pandemic third quarter of 2019.
Similar to our total operating costs, our salaries as a percentage of revenue in the third quarter of 2021, 56.0% was lower than the 56, 8% for the first quarter of 2021, and a bit higher than our 54, 3% in the second quarter of FY 'twenty one.
Our gross profit was $29 $8 million in the third quarter of 2021, which compares to 30.0 point $30 4 million in the third quarter of 2020, which again benefited from those lower costs due to COVID-19.
Our gross profit in the third quarter of 2021 was higher than the third quarter of 2019 at $2 4 million or eight 9%.
Our gross profit margin in the third quarter of 2021 was 23, 7% and that compares to $27 nine in the third quarter of 2020 and $23 three in the third quarter of 2019.
Our corporate office costs were $12 $9 million in the third quarter of 2021 as compared to $10 4 million in the third quarter of 'twenty.
Corporate office costs were $10 $6 million in the third quarter of 2019.
Our third quarter 2021, corporate office cost include $1 $3 million in incremental equity compensation expense for the accelerated vesting of restricted stock stock previously granted to our chief operating officer of the West region, who retired in July.
Excluding that incremental equity compensation expense, our corporate costs were nine 2% of revenues in the third quarter of 2021, which compares to nine 6% in the third quarter of $2009 zero percent in the third quarter of 2019.
Our other income includes $1 $2 million for the positive resolution of a payer matter in the third quarter and our interest expense on our debt was $268000 in the third quarter of 2021, which is down from $351000 in the third quarter of 'twenty.
Our weighted average interest rate in the third quarter of 2021 was $2 one 9%.
Our net income attributable to Noncontrolling interest was $4 1 million in the third quarter of 2021, our Noncontrolling interests were 13, 3% of our profits, including the favorable resolution of the payer matter in the third quarter of 'twenty. One this compares to 16.0% in the third quarter of 2020.
The reduction in the Noncontrolling interest percentage is primarily due to the purchase of Noncontrolling interest from our existing partners through the first nine months of 2021, we've purchased $16 million of Noncontrolling interest from our existing partners.
Our balance sheet remains in an excellent position and our cash generation remains very strong.
We ended the third quarter with $33 million drawn on our $125 million revolving credit facility, which includes $3 $3 million drawn on September 30 to fund the acquisition of an industrial injury prevention services business.
The $33 million is $5 million less than we had a revolving line of credit at June 30.
We had cash of $19 2 million at September 32021.
Our net debt at September 32021 was $24 4 million, which includes the $33 million on our line of credit.
$8 $3 million in payroll taxes deferred in 2020 under the cares Act and $2 3 million notes payable net of our $19 $2 million in cash.
Our net debt position at December 31, 2020 was $11 million.
So in the first nine months of this year, we have funded acquisitions totaling $22 $6 million.
$6 million in fixed assets paid back $14 $1 million in Medicare advanced payments that we received last year purchased noncontrolling interest from our partners of $16 million paid dividends of $13 $9 million and paid off $4 $7 million in notes payable all of which totaled $77 $3 million.
But our net debt position has increased by only $13 3 million, our leverage and our strong cash generation provide us with tremendous flexibility and sufficient capacity for the right growth opportunities as we identify them.
With that Chris I'll turn the call back to you for your remarks related to our operations and third quarter performance.
Thanks, Carrie great job with that.
Im going to make some candid comments and go off script a little bit.
You guys.
Deserve that I think also I hope some of our partners are staff will listen to this call at some point.
For those of you who followed the company for a long time.
You know that we follow historically.
Pretty distinct seasonal pattern.
We we have winter storms and so January with new deductibles, we started out a little slow second quarter really beginning in March and continuing through early to mid June.
I understand experience both quarters, but beginning in March.
See rather a distinct pick up post spring comes and people get outside that.
And that continues until about school is out.
And then things slow down a little bit in the summertime.
People take vacations and doctors take vacations.
Schools out.
And we for every year that I've been here, which is 18 years, we've slowed down in the summer.
This year that didn't happen.
Fact, we've delivered.
Carey mentioned for the quarter, a record third quarter for us even in spite some of these markets.
Summer.
In some big markets like Nashville, where we at hospitals, who had put off elective surgery again.
Just because of the Covid push spine.
In spite of that we have delivered $29 five visits per clinic per day, which is just a fraction of a visit off our all time record, which was Q2 and then in spite of a few hurricanes that heavily affected us hitting Louisiana with our new acquisition partners, there who are doing a great job.
By the way and all the way up the coast. So in spite of that.
The best third quarter.
Company's history and I, just wanted to let our partners and our clinical staff to hear me say, it but I want to say on this call doing a phenomenal job.
Great care of patients.
They're doing it under still difficult circumstances.
People safe.
As we should.
But its tough its tough to get through a day with mask.
Goggles in some cases.
And to do that now.
Excuse me have coal to do that now for <unk>.
Last year and a half going on two years, it's pretty extraordinary.
Ken I just wanted to think.
Doing a terrific job.
Our result this quarter.
Secondly related to variability that may have greater buildup.
Great delivery in terms of how they care for.
Ah patients because that's the most important thing that we do everything comes from that.
We have with referrals.
The visits that we get which are related to the care of our patients.
Job, we wouldn't have that performance.
Hats off to them for that.
On the embryonic side of the business.
We're growing.
We're still making our way through this whatever this transition is toward I hope towards normal.
It's still a tough employment market not just challenging for us, which I'll address in a minute, but also for the companies that we serve.
We delivered record revenue.
Record earnings performance this quarter.
Beginning to see new business come in.
Continue to have great confidence in the team in.
At the end of the quarter as Karen.
Mentioned, we added a nice tuck.
Tuck in deal to that business, which should further strengthen and actually widen our service offerings.
And then finally I want to make a couple of comments relative to the employment.
Environment right, because I know, there's a lot of talk about that.
It is.
My view and our view challenging.
But I think the I think there is some important color to provide.
First of all.
All year this year.
Really if you want to look at beginning spring forward, which was when the market really seem to be more difficult.
<unk> had more inflow than we've had outflow.
So I'll say it again we've had.
More more inflow.
Then we've had outflow.
Right now.
<unk> clinical turnover.
On a percentage basis.
In line with our historical rates and when I say historical factor out the 2020 period, because we furloughed and we did a lot of crazy things to get through that period.
It goes back to 2019.
Our head Count's down from about 5400 and change in 2019 to a little over 5000 now in 2020.
And I'll say, it is tough, particularly front desk and non licensed physicians.
<unk> positions us well, but our team has done a great job I had a conference call. The other day with our recruiting department.
Added a VP.
H R.
And recruiting.
Tyra.
<unk> job, bringing key people.
The energy of our team is better than I've ever seen it we've added some great people theyre doing a terrific job working with our partners. Our partners are working very hard to <unk>.
Make sure that we have the right clinical staff. If we didn't have the right clinical staff, we wouldn't have delivered the visit volume that we delivered this quarter.
Let me give you one more stat and then it'll be quiet here and we'll open it up for questions just as a point of reference our salary and related costs.
If you go back to two.
2019, Q3, our salary and related costs was $58 30.
Beginning.
This year first quarter was 50 780.
Second quarter again record quarter for us in terms of volume and earnings.
520 <unk>.
I'm sorry, that's a per visit number.
So it was 50 830 in Q3 1957, AAV Q1, 55% <unk> in Q2, 50 660 Q3.
So will the fact that the labor market's tight show up in our financials at some point.
Probably will.
But we've held we've held very steady through this period.
That's not a testament to me that's a testament to the team to our partners.
Staff ongoing who care about so much about what they do.
Our recruiting team and all of our various support functions and operation that helps make all this stuff work.
And again I just wanted to say thank you to all of those folks so that concludes my prepared.
Some prepared comments and with that I'd like to open it up for questions.
At this time, if you would like to ask a question. Please press the star end of line on your Touchtone telephone you may remove yourself from the queue at any time by pressing the pound key once again, if you would like to ask a question today, Please press star and one.
And we will take our first question from Larry Solow from CJS Securities. Your line is open.
Hey, good morning, guys. Thanks, Thanks for taking the questions.
Perhaps I will start with the labor.
Labor in the head count.
Chris you mentioned more inflow and outflow.
Obviously, you had some big furloughs in 2020, and it looks like you haven't brought everybody back some of these margin gains or an ability to sort of keep your margin in line, where others are struggling is are you able to have you learned an ability to do more with less just be more efficient.
Because I imagine some of your salaries are higher so what do you attribute towards your still your revenue doesn't seem to have suffered at all with a little bit less head count and your margins are obviously, even higher so I'm just trying to get a little bit more color on that.
Yes, I think.
2020 was great learning experience for all of us.
I think our partners, particularly.
But really across the board we've learned.
Like any other semi crisis that you go through you learned to focus on what's important.
And you get rid of.
I wanted to say get rid of the rest I'm not talking about people people always important.
You learn what you can live with and what you can live with and we're still adjusting Larry we're still in some of our corporate support departments.
We've added staff.
Adding more staff in the areas.
To support some of the programs and initiatives that we have that you're investing in and so.
There has been some of that for sure I think there's been a much tighter control locally in terms of managing big.
Big Big FTE changes, but very small FTE changes that do add up over the course of.
600.
Facilities, and so I think it's that combination.
Margins were a little tighter this quarter, our net rate was down ever so slightly.
It was previously.
But our cost per visit as I mentioned or salary related costs for goods at.
It stayed pretty steady.
I just think it's all those things working together.
Small increments that have added up to where we are right now and we're still making some adjustments. So this isn't.
Do one thing done kind of a process but.
Where we are.
Working our way through.
Great.
Just on the volume trends really strong even through as you mentioned a little bit of a seasonal slowness of 29 and a half per day I think towards that magic number 30 visits per day.
Is that like I know that sort of everybody strives for but.
It could go above that or do you kind of reach some.
These therapies reach sort of capacity constraints above a certain number.
Well therapist to reach capacity constraints.
But but but clinics.
Have generally flexibility and so what I mean by that is there.
Arguable points.
Therapist gets busy enough. We're so busy we can't see more patients unless they had more hours.
And I'm sure there's some of that happening.
Just to cover the volume because business is good.
Clinics however.
That number its clinic number not a therapist number until the clinics can go above 30, I think certainly on average there are some clinics.
In that mix that are capped out a relatively so yes, probably.
And we go through in any given year number of expansions.
<unk> is that we do in order to.
To grow those facilities, just because of the chaos factor in some of our biggest facilities.
I will get to a point, where it gets a little high and so you need more footprint.
I don't think that 30.
B, all and all it's a good number and it's the highest number we've ever delivered and so I'm not suggesting that becomes an easy number to get to sort of sustain right, but its carrying mentioned we've stayed above just wondering.
Every month this year.
And I'm, hoping that's the new watermark, we'll see.
As time goes on but I don't think 30 is a ceiling either.
I think we can over time slowly grow through that.
That would be my hope.
Alright, Okay and just.
Last question, if I may just on the industrial.
Andrew Prevention business.
You mentioned, a pretty good quarter this quarter.
I don't expect to get back to the rapid growth. We saw in 18 and 19 I know that was some of that was inorganic but.
In order to drive considerable growth I guess.
My understanding is you kind of a lot of these new contacts are.
Garnered at trade shows and whatnot is that sort of the there hindering fact, there once trade shows start get going again, you can start picking up some growth.
Yes.
<unk> the sales team Bob Patterson, the rest of the sales team they've done a great job.
What is otherwise very challenging circumstances as you mentioned with no trade shows to speak of.
Last year, and a half and I do think that.
That will be a little tailwind that we haven't experienced yet, but it's not like they're not working at this point to try to.
Create opportunities otherwise they are and we're seeing that happen.
It's just a little harder frankly, because it's harder to get face to face in some of these companies people are still working remotely and so you're dealing with that as well.
So.
It is going to take a little time as you mentioned earlier.
2019 for instance, we did the <unk> deal.
And I won't mention that.
That deal we brought on it had what we thought would be heavy.
Counter cyclical program in our employment testing.
Post offer testing that business is on fire right now and so that has helped the rest of the business.
Stabilize where.
Some of the some of the.
Ergonomics testing business, which is heavily done on site is down at the moment.
But I expect it will come back as things further normalize and so as.
As we mentioned we did a small deal at the end of the quarter. We continue to look for opportunities in that space, we expect to get more done in the space.
And I expect that.
You'll see that play out over the coming year as well.
Got it great appreciate the color guys. Thanks, so much.
Thank you Sir.
And we will go next to Stephanie Wissink from Jefferies. Your line is open.
Hi, Steph.
Thanks, Good morning, actually Craig on for Steph I appreciate all the incremental clarity.
Definitely helpful and congrats on the strong quarter.
Thank you touched on on the strong volumes, gaining those volumes from a greater pool of more referral sources.
So are you seeing that contribute to kind of these elevated levels.
Can you just talk about what youre hearing from referral sources, and maybe anything incremental from sales reps that are may be suggesting that.
New referral sources are more heavily contributing to this mix.
Really I guess at the end of the day is it really just a greater number of referrals from existing sources.
Yes.
It is.
Great question, it's a little bit hard for me to answer just because of how we aggregate misinformation.
I'm not sure that I have the complete color.
Or transparency around the detail to be able to give you.
Awesome.
Answer.
We're always working on new referral sources and our sales team does a great job with that.
I would tell you that I think it's a broadening of referral sources and its a broadening of our ability to go direct to consumer.
And not have to rely exclusively on referral sources.
And then I think thirdly.
Probably moving some market share from.
Less focused less capable whether small local providers or hospitals, who are.
<unk> focused on other things right now don't have the resources devoted to this and so I think it's mattering of things.
Well I don't think it is.
And it's my belief.
Is that.
Suddenly R.
Our finite group of referral sources, who have always been with this busier than they've ever been I think the industry related.
That would suggest otherwise so I do think it's a broadening or do think it's direct to consumer.
I do think we're moving some market share.
Across a growing referral base with all reported.
Yes, that's great color and then and then I got asked just a final one on Medicare.
And recognizing there's still potential for things to change how you think about that.
And the relationship between kind of Medicare rates versus kind of the pricing in the commercial book moving forward.
And kind of if you look through those contracts, what's the anticipation for our commercial rate them more autonomy index towards Medicare.
And then the last one on that would be anything else in your commerce commercial contracts that can move price one way or another on an annual basis I'm thinking things like inflation adjustments our annual escalators.
Okay.
Yes so.
As I answer this.
Okay.
Please redirect me so first of all.
I was just I was disappointed but not surprised when Medicare came out with their final rule update on Tuesday.
Yeah.
No.
With.
CMS suits, it's kind of in the past.
I know that.
Got a massive outpouring.
From the communities that we serve.
Airbus and general practices around the country, we lead a group called <unk>.
Physical therapy quality and innovation, we have been very very active.
Both.
Surging.
Okay, and directing communication with CMS.
Well with our.
Our congressional constituents.
We represent now over 14000, I think that's the number of facilities across the country.
And in virtually every state and so we've been I've been personally I don't have a number of these and so have all of our CEO Board members. Each week, we have congressional calls and so I think I still think there's opportunity as we did last year.
Some congressional over rule on this I think it's shortsighted and wrongheaded to.
To deliver a cut like this to a subset.
Of the physician fee schedule and physical therapy, which we know through studies that we've commissioned independent studies done by done by Beltway analytics groups.
Indicate that when somebody comes to physical therapy early for instance for low back there.
Their entire downstream cost for their health care spend not just for that issue, but for all of their issues is less.
And the reason behind that I believe is because we get people moving and then when you move you can exercise you can be active garden walk you can do things that cause other health issues to improve.
<unk> be city.
Even mental health has significantly improved with activity and exercise and so.
Think it's wrongheaded.
Congress men and.
Women understand that.
We're not done fighting Theres a lot of fighting this group and there's a lot of good resources.
So we're going to continue to work at that.
I do think creates a challenge for US right I mean, we're we're.
We are fully productive at this point with our Labor force.
But it was a challenge for us at the beginning of this year as well we had a three 5%.
Having a 2021 and we've been able to overcome that.
You have to figure out how to overcome this and we're going to have to grow through.
Yes. This is stu.
This is where we end up.
Sure. This is where we'll end up but if it is we will have to grow through it.
And I think this team has been there before and we'll find a way in terms of the commercial side of the business. We have some wins recently that will kick us off for the new year.
And will there be some follow along I think not as much on the Medicare rates.
We may get some follow along on the PT assistant.
Differential payment rate.
And so I think to be determined there.
Working our way through that right now in terms of you know what.
Graham.
And in our HR Department has done a lot of work on modeling around that.
And so more work.
And there as well but.
I think it's a little bit too early to tell yet whether we'll get some follow along working the contracts aggressively to see if we can.
Create some offset right now.
Confidence our team can do that at least in part.
I will point out that.
Although Medicare pays to have reported the same commercial payers still pay hospitals disproportionately high rate compared to what they pay outpatient providers it doesn't make any sense.
And we certainly I think are a much better.
0.2 to deliver care to those patients and having somebody navigate.
Through a hospital campus logistically.
And probably with much lower experienced clinicians typically where new grads gravity.
Compared to our outpatient facilities and so I think actually we should get the higher rate.
We're working on.
Making sure that we can articulate our value proposition.
Some progress there, but like anything we've got work to do.
Teams focused on it.
Urgently at the moment.
Yes, definitely agree with what Youre, saying really solid color congrats again.
Thank you.
And as a reminder, if you would like to ask a question today. Please press star and one on your Touchtone telephone.
We'll go next to Mike <unk> with Barrington Research Your line is open.
Good morning, Chris.
Just to clarify.
In terms of the final.
Our reimbursement I know there was some initial confusion around with a 2% was a three 5%.
What do you all in the industry judge the final rule impact to be in 'twenty two at this point.
Yes, we're still working through some modeling or some increases on the initial evaluation some decreases on some other codes.
Really a lot of it comes down to coat combination.
Selection.
But we think at this point, Mike it's around three and three quarters 375.
We think.
As a percent reduction.
Okay.
And Terry I may have missed this earlier forgive if I did or if I missed it in the press release, but have you commented on the.
EPS guidance from Q2 of you affirm that or in any way to talk about that I may or may have missed it earlier sorry.
Yes, no. We did not mentioned here, we have kept the guidance where it is where it was at the end of the second quarter.
Chris you may want to add some color to that but.
Yes, no Mike.
I think.
Listen.
Really really happy with how the teams performed.
Year long.
And volume has continued to be strong.
Through October and so.
No.
But I will tell you that [laughter].
It's been a tough year to predict exactly how we're going to go you know where we started at beginning of year I think we've outperformed.
At least even compared to some of our early expectations, but it's it's it's been another crazy year, and we typically don't update unless we feel like we're gonna be meaningfully outside that range, one direction or another so we think the best thing right.
As for US just given some some of the uncertainties.
This is to stay put where we are with the ratings that we have and we'll see how we do.
And just on the.
They're really good color on the inflow versus outflow on clinicians.
Terrific.
Any difference just in terms of sort of full time versus PRN in terms of recruiting.
I would suspect maybe PR and it sure offer but can you just speak to that.
Yes, I don't know if PRN its tougher no full time, it's tough for them and.
So in some cases.
Two two.
We are a few specific comments around the color.
Number one.
We're seeing and experiencing less involuntary.
Terminations than we do go back to 2019 in 2019.
So translating that means we might have somebody who's a little bit weaker we feel highly confident we can replace that person.
We separate from somebody so those are down.
You can interpret station I would provide for that and.
I'm interpreting but we're probably hang on to people.
A little bit longer than we might normally in an otherwise you know more.
<unk> labor market.
And we'll see if we can add.
Right person later.
And then separate so involuntary terminations are down.
And.
And although we're feeling good number of full time positions.
Even when we have full time, if we can get a part time person will take a part time person and continue looking.
The other thing I will tell you in our recruiting department is doing a fantastic job I was really we have some new people new people, who I didn't know as well and I'm really impressed with call that I had with him earlier.
Earlier within the last week.
But we will fill a position which is the position that we had open.
But we'll keep that hiring slot open because number one we're growing and we feel like.
If we can get the people we can grow.
Two it is a tough market and so we continue to look.
Just in case.
So they're busy they're really busy.
Is a tough market, but they're doing it really what I think is a really good job overall.
And.
I don't mean to minimize it anyway, because it's different than it was pre pandemic for sure in terms of difficulty, but I think the teams adjusted pretty well and.
I think it shows up in our numbers.
Just sort of on.
Semi breaking news if I'd administration.
I guess.
Put put up put something out today.
Essentially.
Saying, hey, we want large companies and health care workers to be vaccinated.
Within the next month or two.
Do you feel like you guys have well first of all would you I'm assuming you guys would fall under that and then I guess secondly, if you do I mean do you feel like you have many therapists clinicians at this point.
Yes.
Yes, and yes.
So little color. So, yes, I do feel like we will fall under that I didn't see it specifically this morning.
I was aware that it's that it's been coming I think it's going to be heavily and look at my personal belief is I think we should all be vaccinated.
Sorry, it's based I don't think its smart having.
Having said that I know, we have a percentage of people who.
Of course, it comes to shove don't Wanna be vaccinated for one reason or another.
Even going to go into the reasons.
The reality is.
Don't think that changes anything for any of us.
Because I think we will see.
Because we're dealing with this on a state basis in some cases, we do have a handful of states. So it's been mandatory for a while.
What.
This is.
Uh huh.
Careful what I say, but.
What happens the people, who don't want to be vaccinated menu.
Many of them what weighed down on our religious exemption card.
I'd say its because of their personally held religious beliefs.
And when that happens at least today.
We have to do document that go through it.
And then there's usually a testing element that comes into play when they have to be tested on a certain frequency pattern.
And so we think that Thats probably.
It didn't see what came out this morning, because I was preparing for this call.
If there's any nuances from where we were before but I think thats still going to be an exemption on.
The religious side.
And I think it's going to be hard to walk around and therefore I think the.
The alternative is we're going to be testing these folks on a pretty regular basis, an administrative or you're having to keep up with that which adult look forward too.
But I think that's gonna be everybody's reality.
But do you know approximately what percentage of your clinicians are in fact that you know like is it a third do you have any sense of that.
Yeah.
Yes.
On a on a well.
I feel like as it is.
We are highly accurate basis, we have a learning management tool we've asked people.
To upload first and second vaccinations.
And.
In Nebraska.
And we know that the vast majority of people have done that we also know there's a subset that don't want to do that and don't want.
That could be.
Recorded as part of the record for the company again for whatever reason and so we think the vaccination rates compared to reported rate.
No it is higher.
I think it's somewhere in the 20% to 30% range.
You're asking me what I think.
I think the one vaccinated rate actually for the non licensed people.
As is the highest.
And again.
I think clinicians.
Science background and more inclined to do it for themselves and their own exposure as well as the patients.
And then our non licensed folks may be a little bit less so, but I would say in aggregate, it's probably in the 30% range still not vaccinated.
Okay. Thanks, guys.
Again, great progress thanks.
Thank you thanks, Mike.
And I am showing that we have no further questions at this time I'll turn the call back to management for any additional or closing remarks today.
Okay, well listen thanks, everybody.
Again, we appreciate your time Cary and I are available. If you have follow up questions. I know some of you we've already got that scheduled.
Thank you for your time and attention today.
We hope you have a great day stay safe and.
Thanks for your support.
This does conclude today's program. Thank you for your participation you may disconnect at any time.
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