LifePoint Hospitals Earnings Call Insights: Expense Rates and Store Revenue Growth

LifePoint Hospitals, Inc. (NASDAQ:LPNT) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.

Expense Rates

A.J. Rice – UBS: I just had a couple of questions. Maybe the specific ones first, on that high-tech comment of $32 million to EBITDA is that – are you having the same roughly expense rate as last year about 8 million and therefore 40 million of incentives is something close to that?

Jeffrey S. Sherman – EVP and CFO: That’s in the ballpark, A.J.

A.J. Rice – UBS: On the volume and pricing assumptions for 2013, can you give us any flavor for what you think those might look like?

Jeffrey S. Sherman – EVP and CFO: On the adjusted admission side we are anticipating being down 1% to up 1% for the range. For pricing, I kind of gave the individual pricing.

A.J. Rice – UBS: Is there an update on the new Mexico indigent care program?

Jeffrey S. Sherman – EVP and CFO: At this point, the stage is still in discussions about the program. So, at this point, we’re not anticipating any other changes in our guidance other than the reductions that started in the third quarter will continue. So, it will another roughly $6 million in reductions in 2013.

A.J. Rice – UBS: Then finally, just stepping back and thinking about next year and health reform implementing. Are you making any changes now investments over the next year to better position. I mean you’ve got ongoing investments to improve efficiency and so forth, but I wondered if there anything that you’re specifically doing to prepare for that and maybe any early discussions you’ve had with the insurers about contracting for next year which you’re seeing?