2022 Guidance and E.S.G. Considerations slide image

2022 Guidance and E.S.G. Considerations

Operational Excellence: Home Health Cost Per Visit (CPV)-Adjusted YOY Total CPV impacted by planned wage increases, wage inflation, new hire pay and higher health insurance costs. Contractor costs down slightly year over year as utilization has stabilized Components Salaries 4Q'20 3Q'21 4Q'21 YoY Variance $66.09 $67.58 $69.73 $3.64 Contractors $5.08 $4.96 $4.93 ($0.15) Benefits $12.98 $13.16 $14.52 $1.54 Detail YoY increase (+5.5%) due to higher fixed new hire pay (+1.9%), planned wage increases, wage inflation and clinician bonuses Sequential increase due to the same drivers, including one additional month of raises YoY and Sequential variances minimal due to relatively consistent utilization YoY increase due to the impact of COVID-19 on health insurance costs (lower utilization in prior year) Sequential increase due to the seasonality of claims Initiatives Staffing mix optimization, productivity and scheduling improvement initiatives in place to help overcome salary increases Focused efforts on filling positions with full-time clinicians Focus on cost containment and spend optimization with specific focus on high-cost claims Transportation & Supplies $7.16 $7.28 $7.10 ($0.06) *Visiting Clinician CPV $91.31 $92.98 Clinical Managers $9.38 $9.85 $96.28 $10.39 $4.97 $1.01 Fixed cost associated with non- visiting clinicians YoY increase driven by additional staff and planned wage increases Total CPV $100.69 $102.83 $106.67 $5.98 *Note: Direct comparison with industry competitors CPV calculation Unit cost reduced as volume increases $91.31 Cost Per Visit (CPV) $92.98 $96.28 $100.00 $75.00 $50.00 $25.00 4Q20 3Q21 4Q21 ■Salaries ■Contractors ■Benefits Transportation 6
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