Lifepoint Hospitals Inc. Q3 2008 Earnings Call Transcript

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2008-11-07 12:37:14.0

Tags: Lifepoint Hospitals Inc., Call Transcript, Earnings, Unemployment, Economy Obviously, Outsourcing, It Operations, Business Operations, Outsourcing & Subcontracting, Seeking Alpha, Lifepoint Hospitals Inc., Call Transcript, Earnings, Unemployment, Economy Obviously, Outsourcing, It Operations, Business Operations, Outsourcing & Subcontracting, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Shelley Gnall – Goldman Sachs.

Shelley Gnall – Goldman Sachs

You highlighted back at the start of the year that something could make you a little bit nervous about meeting your guidance would be steep unemployment or steep job losses in some of your key markets. It looks like through August you had a couple non-key markets with unemployment greater than 10%. Can you talk a little bit about what you're seeing in those markets on admissions or collections?

William F. Carpenter III

Shelley, sure, thanks for the question. The economy obviously is something that we watch very carefully in every single one of our markets. What we have seen so far really has been sort of choppy. Remember, we're spread across 17 states and we've seen ups and downs as it goes across those states and our markets. We've added some ads in some of our markets we've also had some losses. As I say, consistently, constantly are monitoring that.

We have been seeing some reduction in hours work. We've also been seeing some actual layoffs. I'd rather not get into specific markets because we really are spread across the country and there are as many that are up probably as are down. There are a couple that are impacted by the automobile industry, we've seen that specifically. There a couple that are still being impacted by textiles and furniture that have moved offshore, but for the most part we are maintaining status quo. Our unemployment rates in our markets have increased really consistently with the increase in the national average of unemployment.

David M. Dill

Shelley, the only other thing I would add, there are a couple markets that have unemployment rates that are around 10%. It's not as if those markets have gone from 4% or 5% up to 10%, they have been above national averages from unemployment rates for a long time. We have seen unemployment rates in a couple of those communities that have now kicked up to about 10% increase, very consistent with national averages, up 100, 150 basis points in the unemployment rates from this time a year ago, and we're seeing that accelerate here over the last 90 days.

Shelley Gnall – Goldman Sachs

Then if I could just one quick question, wondering if you can give us some any sort of time, I apologize if I missed this earlier in the call, when we could hear about the deep dive results, the market share opportunity in the profitable service lines, and when we'll hear about your convertible debt, the new accounting rules? You had mentioned on previous calls that, I think, the prior period financials will be restated. Any idea on when we could hear of more on those?

 

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