Enhabit, Inc.

Thank you for standing by. My name is Kathleen and I will be your conference operator today. At this time, I would like to welcome everyone to the Inhabit Incorporated third quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you would like to withdraw your question, please press the star one again. I would now like to turn the call over to Bob Okunski, Vice President of Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Thank you for joining our call today. With me on the call this morning is Barb Jacobsmeyer, President and Chief Executive Officer, and Ryan Solomon, Chief Financial Officer. Before we begin, I want to let you know that our third quarter earnings release and supplemental information are available on our website at investors.ehab.com. Additionally, we have filed a related 8K with the SEC, and that is also available in the same location. On page two of the supplemental information, you will find the safe harbor statements, which are also set forth in the last page of our earnings release. During the call, we will make poor-looking statements, which are subject to various risks and uncertainties, many of which are beyond our control. Certain risks and uncertainties that could cause actual results to differ materially from our projections, estimates, and expectations are discussed in our SEC filings, including our annual report on Form 10-K, which is available on our website. We encourage you to read these documents. You are also cautioned not to place undue reliance on the estimates, projections, guidance, and other forward-looking information presented, which are based on current estimates of future events and speak only as of today. We do not undertake a duty to update these forward-looking statements. Our supplemental information and discussion on this call will include certain non-GAAP financial measures. For such measures, reconciliation to the most directly comparable GAAP measure is available at the end of the supplemental information, as well as our earnings release. With that, I'd like to turn the call over to Barb. Barb?

Good morning, and thanks for joining us. Let me start by recognizing the exceptional Inhabit team. We're proud to share that Inhabit has been named as one of Fortune's best places to work in healthcare. This recognition is a powerful testament to our commitment to a culture of excellence, strong leadership, and outstanding employee experience. It's that same team that has delivered another quarter of strong performance for our patients, partners, and shareholders. I will address the 2026 CMS home health rule before Q&A. But first, Ryan and I will review the quarter results. Home health total admissions were up 3.6% year over year, with census increasing 3.7%. Normalized for closed branches, our admission growth was 4.3% year-over-year. Seeker service Medicare census continues to stabilize, with census down 1.4% year-over-year versus the 14.1% year-over-year decline experienced in Quarter 3, 2024. Our non-Medicare admissions were up 10.4%, and an appropriately managed payer mix resulted in a 2.8% increase in non-Medicare revenue per visit year over year. As mentioned on our last earnings call, we experienced disruption at the end of the second quarter, early third quarter in both admissions and census from the impact of renegotiations with the national payer that ultimately resulted in achieving a low double-digit increase in our per visit rate effective August 15, 2025. By late September, we had recovered our census with this payer, and recent admissions are now at 120% of our weekly average. Our total patient census grew sequentially each month of the third quarter, and that sequential growth persisted into October. Our scale drives meaningful access to payer members, and that access, coupled with our high-quality outcomes, continues to position us well for progress within our payer strategy. This was evident by another renegotiated national payer contract during the third quarter. This was the renegotiation of one of our first payer innovation agreements, and this one did not require disruption to patient access or to our census, and resulted in achieving a successful update in our rates effective in November. The positive impact of our payer innovation team is ongoing as we continue to work with new and current payers on pricing that appropriately values our timely access to care as a scaled provider with strong outcomes. Our quality of care and our timely access are also part of our hospice strategy, and these strategies continue to drive strong results. We have now experienced seven straight quarters of sequential census growth. Total admissions grew 1.4% year over year. Normalized for closed branches, admissions were up 3%. Census grew 12.6%. We have added 21 or 11% additional direct sales team members year over year to continue to broaden our reach to additional referral sources. We have the clinical capacity for growth and will increase our reach to diversify our referral sources. To complement our organic growth strategy, our de novo strategy is positively impacting total growth. In quarter three, we opened two de novos for a total year-to-date of six. We opened our seventh location in October and continue to be on pace for a total of 10 de novos in 2025. As evidenced by our organic and de novo focus, our admissions and census growth are a big part of our strategy. However, whether it is CMS pricing or continued shift to Medicare Advantage, we must be as efficient as possible to have necessary resources to strategically invest in people and technology. Therefore, our cost structure is critical to future success. As mentioned before, we believe advanced visit-per-episode management is a promising lever to mitigate uncontrollable and unanticipated rate disruptions like these. Our advanced visit per episode management pilot was initiated in mid-August in 11 branches. However, because a pilot case must start with a new start of care, the branch's full census was not impacted until the end of October. Early results are promising with a decline in total visits per episode in these locations from approximately 15 prior to the onset of the pilot to approximately 13 currently. 83 additional branches were rolled out throughout the month of October, and the rest are expected by the end of November. We anticipate adding 10 resources between our authorization team and our virtual clinical team to support the full company rollout. We will provide an additional update on our fourth quarter earnings call. As we navigate a dynamic operating environment, we remain confident that Inhabit is best positioned in the industry with our experienced leaders, high-performing teams, and innovative technology to manage their challenges and continue growing market share. And now I will turn it over to Ryan, who will cover the financial results of quarter three and additional updates on our G&A cost management-focused efforts.