Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) Q4 2022 Earnings Call Transcript

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And so again, it’s a great question. To us, the long-term demand metrics for PDS still make a ton of sense, and it continues to be a supply issue for as far as we can see in the next three to five years, it truly continues to be the ability to attract and retain both skilled and lesser skilled caregivers.

Matt Borsch: And maybe just a follow-up on a different topic, I know you’ve talked a lot about the rate side of the business. And I gather that on the rate side, a lot of the problem is organizational attention and initiative, whether you’re talking about a state agency or managed care commercial payer. Is that about right or do you have some of these, because you can say, higher rate is going to save you money. And do you find that you have real opposition to that argument or people with a different theory?

Jeff Shaner: No. But by the way, your question is very thoughtful, Matt. And that is a lot of times it’s just giving the attention, right? It’s getting the attention of the legislature of Texas or the Governor and getting their attention to matter. As I think of MCO payer partners, it’s a similar conversation. It’s just that the MCO partners figured it out faster, that they see, hey, I can say, $5,000 a day. Even if they start giving us what’s called single case agreements, which mean that they approve one family at a time at a new rate, we see the MCO partners moving in a matter of hours and days versus months and years from our state partners. So the MCO partners are just able to move faster than their legislative counterparts.

I will say, over the first – we’re about 18 months into this strategy. We now have markets where we have a preferred payer in a specific market and then we have non-preferred payers, the non-preferred payers. It took them about nine months to call us and say, why can I get any of your nurses? And our answer was, because unfortunately, you’re not you’re not a partner of ours in this market. And so we’ve seen MCO payers go from not interested now, not now to, “Oh my God, what do I have to do to get what the other pay in this market has gotten from Aveanna which to us shows the power of the partnership, and I think, again, I’ll go back to the legislative comment. I think you read into it right. It’s just getting the attention of the right people in a legislative process like a California to understand the issue.

They all get the issue. They — it’s not hard to sell the issue. It’s just getting their attention from floods and snow and gas prices and all the other stuff that’s on their desk to deal with in making this a priority. And that’s really our job is to – and our lobbyist job is to just drive this home.

Matt Borsch: Great, thank you. I’m pushing out.

Jeff Shaner: Thank you, Matt.

Operator: There are no further questions at this time. I would like to turn the floor back over to CEO, Jeff Shaner for closing comments.

Jeff Shaner: Well, thank you, operator, and to everyone. Thank you for joining our earnings call today. And most importantly, thank you for your interest in our Aveanna story we look forward to updating you on our progress at the end of Q1 in mid-May. Have a great day, and operator, thanks so much.

Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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