Nutex Health Inc.

Greetings and welcome to the NewTax Health first quarter 2024 financial results earning call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jennifer Rodriguez. Thank you, Jennifer. You may begin.

Hello and good morning. Welcome to the NewTex Health first quarter 2024 earnings conference call. Today's call is being recorded. With me this morning is our chairman and CEO, Dr. Tom Vo, CFO, John Bates, President, Dr. Warren Hosinian, and COO, Josh Dottilio. Our team will provide some prepared remarks, and then we'll take questions. Before I turn the call over to Dr. Vo, let me remind everyone that today's call may contain forward-looking statements. that are based on management's current expectations, numerous risks, uncertainties, and other factors that may cause actual results to differ materially from those that might be expressed today. More information on forward-looking statements and these factors are listed on Wednesday's press release and in our various SEC filings. On this morning's call, we may reference measures such as adjusted EBITDA, which is a non-GAAP financial measure. A table providing supplemental information on adjusted EBITDA and reconciling net loss attributable to Nutex Health, Inc. is included in the press release and form 10Q filed earlier this week. This morning's call is being recorded and a replay of the call will be available later today. With that, I'll now turn the call over to Dr. Tom Vo, our founder and chief executive officer.

Jennifer, thank you. And good morning, everybody. And thank you for joining the call. The past two years have been very challenging, both from a healthcare industry standpoint as well as from a macroeconomic standpoint. However, we remain committed to our core mission of providing improved accessibility as well as exceptional concierge-level patient care. In fact, all of our hospitals are open 24-7, and we are the medical safety net for the communities that we serve. While we have faced many hurdles, I'm happy to report that our team have been very diligent in overcoming many of these hurdles. We believe our effort over the past 12 months are beginning to pay off. This momentum has generated improved financial results driven by volume growth year over year, improved collections per visit, and solid operating margins. In 2023, we implemented several initiatives to increase ER volume, increase inpatient volume, and increase outpatient volume. In addition, we opened four new hospitals in 2023, all of which have ramped up either faster than expectations or within expectations. System-wide, quarter over quarter, from 2023 to 2024, ER volumes increased by 21%. Of this 21% increase, 5.3% are from mature hospital growth, defined as hospitals being opened by December 31, 2022, to provide one full year or more of comparable results. Most of the remaining increases are from our ramping hospitals, defined as being open for less than one year. From a revenue per patient perspective, we have also made some gains. Collection percentages have consistently increased monthly since January 1st, 2022, when the No Surprises Act was implemented. And we are making great strides in understanding as well as navigating through all the nuances of the No Surprises Act. On the population health side of the business, we are also seeing growth. In addition to our IPA in Los Angeles, which has been consistently profitable, we have recently added an IPA in South Florida as well as an IPA in Houston. As a result, the number of MA lives or Medicare Advantage lives have increased by 78% quarter over quarter. From a cost perspective, our operating costs across most categories have started to come down due mainly to our cost cutting measures. which we have announced earlier this year. As we move through the remainder of the year, we will maintain our disciplined approach of managing our costs while continuing to invest appropriately in our strategic growth areas, which we believe should position the company favorably to meet our long-term objectives of being a long-term, sustainable, and profitable company. With that, I will turn the call over to John Bates, our CFO, or Chief Financial Officer, for more financial information for the first quarter. John?