What better way to get an understanding of the healthcare market than through the CEOs of the top companies themselves? Leaders across different segments, including hospitals, telehealth, managed care, home health and more, reported strong growth and activity and have a confident outlook for the rest of the year.
Health System Rebound
“…we are delivering a much stronger growth trajectory on the hospital side in terms of admissions, outpatient visits, ER volumes, and surgeries. In particular, the higher acuity work that we have been focused on with general surgery, cardiovascular, ortho, neuro, etc., have been steadily progressing in key markets across the country.” – Tenet Healthcare Corp. CEO, Ronald A. Rittenmeyer
“Inpatient revenues increased 20%, driven by a 17.5% admission growth. Outpatient revenues grew an impressive 59%, reflecting the resurgence in outpatient demand across most categories.” – HCA Healthcare CEO, Sam Hazen
“We continue to invest aggressively in our strategic plan, which revolves around building greater clinical capabilities to serve our communities while also developing more comprehensive enterprise resources to support caregivers and differentiate our local networks. We believe this operating model will continue to create value for our patients, deliver market share growth, and produce solid returns for our shareholders.” -HCA Healthcare CEO, Sam Hazen
Home Health & Hospice Post Major Gains
“In home health, revenue was $349 million, up $59 million or 20% compared to the prior year, driven by same-store total admissions growth of 20%…Now turning to our hospice segment results. For the second quarter, revenue was $191 million, up $14 million over the prior year, an increase of 8%, which includes the addition of the AseraCare acquisition, which closed on June 1, 2020.” – Amedisys President and COO, Christopher T. Gerard
“Favorable industry tailwinds continue to propel at home care and LHC Group with strong bi-partisan support for the recently introduced Choose Home legislation, our recently announced partnership that provides the missing link that advanced home care programs have needed, and leading quality scores that are driving market share gains. Recent third-party polling data demonstrates an overwhelming preference by patients to be treated in the safety and comfort of their home or residence. We are seeing the same kind of demand from our hospital partners for SNF-at-home and hospital-at-home programs that started during the pandemic and has accelerated since our recent announcement to launch a comprehensive offering of clinicians covering all aspects of advanced clinical care services in the home later this year.” –LHC Group Chairman and Chief Executive Officer Keith G. Myers
Telehealth Demand Remains High
“On a year-over-year basis in the second quarter, our total consult volume increased 98% or 49% on a pro forma basis. Including Access Physicians, revenue increased 84% and bookings increased 136%. Our bookings performance for the first half of 2021 was greater than bookings performance for the entirety of 2020.” – SOC Telemed CEO, John Kalix
“We are encouraged by the receptivity to our expanding set of responsive commercial benefits, centered around virtual first, on-demand and physician-led offerings. Year to date, we have added about 150,000 members in such innovative commercial offerings even with the evolving and uneven labor market trends which impacted second-quarter membership.” – UnitedHealth Group CFO, John Rex
“Our U.S. telehealth efforts with Circle Medical are also gathering steam. Circle Medical saw 214% growth in revenue and 238% growth in appointments as compared to the previous year. While many other telehealth businesses are cooling off we’re seeing Circle Medical gain momentum. 88% of Circle Medical’s revenues are attributable to their telehealth program. We see them scaling through to the end of the year.” – WELL Health Technologies Corp. CEO, Hamed Shahbazi
Primary Care Boom
“We ended Q2 with 621,000 members growing our membership base 31% year-over-year. We added 23,000 members during the quarter, and it added more than 145,000 members over the past 12 months.” – One Medical CEO, Amir Rubin
“We grow organically, by expanding our assisting practices and building new medical centers. In the second quarter, our organic membership growth was 30% year-over-year.” Cano Health CEO, Dr. Marlow Hernandez
The Acquisition Trail
“The [Iora Health] acquisition would meaningfully expand our potential market opportunity, adding approximately $700 billion to create a combined total addressable market of $870 billion across commercial and Medicare segments, including Medicare Advantage, and the new Medicare Direct Contracting program.” One Medical CEO, Amir Rubin
“Our pipeline of acquisition and investment targets is robust, and we believe there are meaningful business development opportunities this year to enhance growth and our strategy moving forward.” – LabCorp CEO, Adam H. Schechter
“For the six months ending June 30th, cash used and operating activities was $57 million, an increase of $43 million, and we deployed approximately $618 million for acquisitions.” Cano Health CFO, Brian Koppy
Post-Pandemic Performance
“…what we continue to see throughout the first half of the year was COVID costs coming down faster than initially expected, but non-COVID, outpatient in particular, rebounding faster than expected, and that continued through the second quarter and we anticipate that that will extend some into the third quarter before it levels off.” – Humana CFO, Susan M. Diamond
“With the effects of the pandemic moderating in the second quarter, we experienced a strong rebound in demand for our services. COVID admissions in the quarter were down to 3% of total, as compared to 10% in the first quarter. Volumes across all categories grew significantly compared to last year.” – HCA Healthcare CEO, Sam Hazen
Delta Variant Impact
“The rise of COVID-19 Delta variant is placing significant pressure on hospital emergency departments, especially in states such as Florida and Texas. The increased pressure stemming from COVID-19 creates a significant distraction for both our current and prospective hospitals and health system customers, resulting in longer sales cycles and delayed implementation timelines associated with new business and cross-selling opportunities. Finally, we’ve modeled a weaker than normal upcoming flu season, representing additional headwind.” – SOC Telemed CEO, John Kalix
