Universal Health Services, Inc. (NYSE:UHS) Q4 2022 Earnings Call Transcript

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But I think you specifically asked about sort of patient care treatment sort of treatment structures and whatnot. And we’ve tried to in both of our businesses create staffing infrastructures that are not so reliant on registered nurses because those have been the most difficult positions to recruit to during the pandemic. So we’re becoming more reliant on things like LPNs and LVNs and mental health techs in the behavioral business and EMTs and that sort of thing in our emergency rooms, all those kinds of things. So we certainly have been working to really improve the recruitment and retention of the nursing population itself, but also trying to reduce our reliance, particularly on registered nurses who have been the most difficult to recruit.

Marc Miller: But I’ll just add, there are a number of technological solutions that are being bandied about on both sides, both segments. And we continue to evaluate a lot of those as some of our peers do as well. I do think in the coming years, there will be some that we go forward with. I’m not sure that there €“ any of them are going to be a real panacea, but I do think that they can be helpful depending on cost to alleviate some of the staffing issues that we’ve had over the past few years going forward. So we are excited about the possibility of some of those adding to the mix in the coming years.

Operator: Thank you. Our next call will come from the line of Ben Hendrix, RBC Capital Markets. Please standby. Ben?

Ben Hendrix: Yes, thank you. Just a quick regulatory question. There was a proposed rule from CMS concerning the 1115 waiver payment and implications there for calculation of a disproportional share payments for acute. Just wanted to see if you guys had any initial thoughts on that? I think you may have probably less exposure to that than some of your peers, but I just wanted to get any initial takes on that proposed rule. Thanks.

Steve Filton: Yes, so we’ve commented a number of times and then with reference or direct people to our 10-K filing where we detailing in pretty specific detail our supplemental Medicaid payments in the current year in 2022 and then what we expect for 2023. I mentioned before, we’re expecting about a $30 million decline next year across a number of states. To your point, Ben, I don’t think we’re expecting a big change in tech or some of the 1115 change. But in total, there’s about a $30 million reduction in supplemental payments next year, including disproportion share over maybe two or three states.

Ben Hendrix: Thank you.

Operator: Thank you. There are no additional questions in the queue. At this time, I would like to turn the call back over to Steve, for any closing remarks.

Steve Filton: We’d just like to thank everybody for their time this morning, and we look forward to speaking with you again at the end of the first quarter. Thank you.

Operator: Thank you for your participation today. This does conclude the program. You may now disconnect.

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