Specialist
Former C-level Executive at Community Health Systems Inc
Agenda
- Key trends for hospitals and outpatient services in rural areas – focus on Quorum Health
- Operational challenges following the spin-out from Community Health
- Quorum's hospital portfolio – declining volumes and shifts in payor mix
- 2019 outlook – ability to scale
Questions
1.
Can you share an overview of the rural for-profit hospital sector, highlighting trends and issues affecting Quorum?
2.
Can you assess issues that impact Quorum such as weak demographics and areas of poor operation? Do you expect the ageing of America’s population to help reduce rural hospitals’ catchment areas and alleviate pressure from incremental patients travelling to nearby cities and suburbs?
3.
Do you think that Quorum’s divestitures and cost-reduction efforts will help with free cashflow generation? What more could the company do?
4.
Do you think that Quorum’s expectation of achieving around USD 1.3bn of revenue with mid-teens EBITDA margins is reasonable? What run rate EBITDA do you think Quorum could achieve when it reaches its target of 18-20 hospitals? Are its core hospitals profitable and can they be cash-generative?
5.
How should we gauge PE or strategic firms’ interest in the entire Quorum portfolio?
6.
Can you discuss core hospitals' corporate overheads, to help clarify consolidated EBITDA?
7.
What strategy do you expect Quorum to adopt going forward, given its overleveraged capital structure issues? What is correctable in the near term? Do you think there is an upside of improving operations, such as generating EBITDA?
8.
Can you share insight into wage expenses, supply costs and your expectations for revenue trends per adjusted admission in the next 3-5 years?
9.
How do you expect the repeal of the Affordable Care Act’s individual mandate to impact EBITDA?
10.
Can you break down your EBITDA outlook for Quorum over the next few quarters and share your longer- term views on the company’s revenue and margin?
11.
Would you like to address anything that we have not covered or reiterate anything that is particularly important? Can you share a 12-18-month outlook for the for-profit health sector and Quorum, highlighting any catalysts?
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