Quorum Health — Debt Investor Presentation (April 2020)
20 slides from Quorum Health's debt investor presentation, Apr 7, 2020
Slide 1: Project Quincy MNPI Packet April 6, 2020
Pr oject Quincy MNPI Packet April 6, 2020
Slide 2: Notice to creditors regarding use of materials
These materials have been prepared for the creditors (the “Creditors”) to Quorum Health Corporation (the “Company”) to whom such materials are directly addressed and delivered and may not be used of relied upon for any purpose other than as specifically contemplated by a written agreement. These mat
Slide 3: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The Company cautions that statements within these materials contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. All statements, other than statements of historical facts,
Slide 4: 1. Fourth Quarter 2019 Results
1. Fourth Quarter 2019 Results
Slide 5: Fourth Quarter Summary
Fourth Quarter Summary Fourth quarter same-facility net revenues were $387.5 million and Same-facility Adjusted EBITDA was $35.0 million. Q4 results were negatively impacted by a $13.2 million increase in bad debt expense compared to Q4 2018, which offset increases in both rate and acuity. Same faci
Slide 6: Q4 Same-Facility Financial Results Summary
Q4 Same-Facility Financial Results Summary $ in thousands Fourth Quarter $ Change 2019 2018 Hospital Operations Net Revenue $ 372,511 $ 376,594 $ (3,439) QHR 13,962 15,726 (1,764) Corporate 980 (2,209) 3,189 Total Net Revenue $387,453 $390,112 $ (2,014) Hospital Operations Adj. EBITDA $ 40,773 $ 54,
Slide 7: Q4 Same-Facility Hospital Volume and Rate
Q4 Same-Facility Hospital Volume and Rate Rate total same-facility hospital net revenue per adjusted admission decreased 0.5% year-over-year when normalized for the impact of HQAF and reflects: An increase in high acuity surgery volumes, such as neuro, general surgery, orthopedics and open heart. Th
Slide 8: 2019 Year-End Balance Sheet
2019 Year-End Balance Sheet ($s in Thousands) Fourth Quarter 2019 2018 Change Capital Leases & Other 22,679 24,260 (1,581) Term Loan B 738,336 790,751 (52,415) Unsecured Notes 400,000 400,000 - ABL Revolver 75,000 14,000 61,000 Cash/Bank Revolver 22,000 - 22,000 Total Debt* $ 1,258,015 $ 1,229,011 $
Slide 9: 2. January 2020 Results
2. January 2020 Results
Slide 10: January Same-Facility Results
January Same-Facility Results $ in thousands January $ Change 2020 2019 Net Patient Service Revenue 143,254 138,690 4,564 Bad Debt (19,454) (16,989) (2,465) Non-patient Revenue 913 566 346 Hospital Operations Net Revenue $ 124,713 $ 122,267 $ 2,446 QHR 4,657 5,160 (503) Corporate (134) 1,042.88 (1,1
Slide 11: January Same-Facility Hospital Volume and Rate
January Same-Facility Hospital Volume and Rate $s in thousands January % Variance 2020 2019 Same-Facility Volume Admissions 4,586 4,923 -6.8% Adjusted Admissions 12,550 12,322 1.9% Surgeries 4,848 4,711 2.9% ER Visits 37,319 35,453 5.3% Rate (Net Revenue per) Admissions $27.2 $24.8 9.5% Adjusted Adm
Slide 12: 3. February 2020 Results
3. February 2020 Results
Slide 13: February Same-Facility Results
February Same-Facility Results $ in thousands February $ Change 2020 2019 Net Patient Service Revenue 113,176 110,268 2,908 Non-patient Revenue 758 578 180 Hospital Operations Net Revenue $ 113,934 $110,846 $ 3,088 QHR 4,793 5,234 (441) Corporate (792) 373 (1,165) Total Net Revenue $117,935 $116,453
Slide 14: February Same-Facility Hospital Volume and Rate
February Same-Facility Hospital Volume and Rate $s in thousands February % Change 2020 2019 YoY Same-Facility Volume Admissions 4,257 4,589 -7.2% Adjusted Admissions 11,650 11,743 -0.8% Surgeries 4,670 4,529 3.1% ER Visits 34,691 33,965 2.1% Rate (Net Revenue per) Admissions $26.8 $24.2 10.8% Adjust
Slide 15: 4. COVID-19 Discussion Materials
4. COVID-19 Discussion Materials
Slide 16: Executive Summary
Executive Summary To assess the impact of the global COVID-19 pandemic on the business, management has modeled two scenarios, which both assume a 90-day lockdown (shortening or lengthening the lockdown timeframe will significantly improve or worsen the impact on any estimated outcome) The Base impac
Slide 17: Overview of Assumptions
Overview of Assumptions Downside Base March OP Regs: 30% decline in Medicare registrations in March, increasing Same as Downside + Q2 to 60% in April/May, tapering down to 30% in June; 15% decline in all other payors in March, increasing to 30% in April/May, tapering down to 15% in June Surgeries: 6
Slide 18: 2020 EBITDA Bridge
2020 EBITDA Bridge Risk-adjusted 2020 to Revised 2020 Projections ($ in millions) COVID-19 Impact Downside Base Risk-Adj. 2020 $148.5 $148.5 Jan/Feb Actuals vs Budget(1) 2.7 2.7 Near-Term ~120-Day Impact (March-June) (49.3) (49.3) Mid-Term Q3 Impact (9.8) (7.8) Long-Term Q4 Rebound 19.5 32.9 TBD Gov
Slide 19: 2020 Volume and P&L Quarterly Bridge Downside
2020 Volume and P&L Quarterly Bridge Downside COVID-19 Recovery ($ in millions) Q2 + March Q3 Q4 Risk-Adj Revised Delta % Risk-Adj Revised Delta % Risk-Adj Revised Delta % Volumes OP Registrations 626,008 561,974 (64,034) (10.2%) 464,023 453,102 (10,921) (2.4%) 451,598 485,598 34,000 7.5% Surgeries
Slide 20: 2020 Volume and P&L Quarterly Bridge Base
2020 Volume and P&L Quarterly Bridge Base COVID-19 Recovery ($ in millions) Q2 + March Q3 Q4 Risk-Adj Revised Delta % Risk-Adj Revised Delta % Risk-Adj Revised Delta % Volumes OP Registrations 626,008 561,974 (64,034) (10.2%) 464,023 455,779 (8,244) (1.8%) 451,598 503,598 52,000 11.5% Surgeries 20,5
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