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    Andrew Mok • Barclays

    Andrew Mok's questions to RadNet Inc (RDNT) leadership

    Andrew Mok's questions to RadNet Inc (RDNT) leadership • Q2 2025

    Question

    Andrew Mok from Barclays sought clarification on the projected $4-5 million Medicare revenue benefit for 2026, questioning why it wasn't larger given the headline rate update of over 4% in the proposed physician fee schedule.

    Answer

    EVP & CFO Mark Stolper explained that the headline number is misleading. While the conversion factor is proposed to increase by 3.3%, this benefit is partially offset by negative adjustments to the relative value units (RVUs) for specific CPT codes and changes to the geographic practice cost indices (GPCIs). He affirmed confidence in the company's detailed analysis resulting in the $4-5 million uplift estimate.

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    Andrew Mok's questions to RadNet Inc (RDNT) leadership • Q1 2025

    Question

    Andrew Mok of Barclays questioned the drivers of the revenue beat versus consensus despite headwinds, the implied margin expansion for the remainder of the year, and the significant Q1 increase in stock-based compensation.

    Answer

    CFO Mark Stolper attributed the strong underlying revenue to a bounce-back in March and April, while noting Q1 profitability is always seasonally challenged. CEO Howard Berger pointed to ramping de novo centers and advanced imaging growth as drivers for revenue and margin expansion. Regarding stock compensation, Mr. Stolper explained it was a Q1 anomaly due to vesting schedules and new grants, stating it will be 'significantly lower' for the rest of the year.

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    Andrew Mok's questions to RadNet Inc (RDNT) leadership • Q4 2024

    Question

    Andrew Mok from Barclays asked for more detail on labor inflation trends, whether RadNet has exposure to hospital-style physician subsidies, and the potential switching costs for customers moving to the DeepHealth PACS and RIS systems.

    Answer

    Dr. Howard Berger (Executive) and Mark Stolper (Executive) noted that labor pressures began post-COVID but RadNet has managed wage growth in the low single digits, below the industry average. Mark Stolper specified the 2025 guidance absorbs a $45 million wage increase and clarified that physician subsidies are a hospital-based issue not applicable to RadNet's outpatient model. Regarding switching costs, they explained that most existing PACS are old, on-premise systems, and the industry is entering a cycle where the superior technology of cloud-native solutions like DeepHealth makes the switch compelling for radiologists.

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    Andrew Mok's questions to Astrana Health Inc (ASTH) leadership

    Andrew Mok's questions to Astrana Health Inc (ASTH) leadership • Q2 2025

    Question

    Andrew Mok inquired about the necessity for value-based care recontracting and the evolving tone of discussions with payers. He also asked for a breakdown of the increase in EBITDA add-backs post-acquisition and the expected pace of realizing synergies.

    Answer

    President & CEO Brandon Sim emphasized Astrana's consistent, partnership-oriented approach with payers, which has resulted in friendly and smooth conversations even in a tough environment. He attributed the majority of the increased EBITDA add-backs to one-time transaction fees for the Prospect deal and reiterated the 12-18 month timeline for achieving $12-15M in synergies.

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    Andrew Mok's questions to Astrana Health Inc (ASTH) leadership • Q2 2025

    Question

    Andrew Mok asked for Astrana's perspective on value-based care recontracting and how the tone of conversations with payers has changed. He also questioned the reason for the increase in EBITDA add-backs post-acquisition and the expected pace of realizing synergies.

    Answer

    President & CEO Brandon Sim emphasized Astrana's consistent, partnership-oriented approach with payers, which has built goodwill, describing current conversations as "quite friendly." He explained the increased add-backs were primarily due to one-time transaction fees for the Prospect deal. Sim reiterated the 12-18 month timeline for the $12-15 million in synergies.

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    Andrew Mok's questions to Aveanna Healthcare Holdings Inc (AVAH) leadership

    Andrew Mok's questions to Aveanna Healthcare Holdings Inc (AVAH) leadership • Q2 2025

    Question

    Andrew Mok of Barclays questioned the appropriate EBITDA run-rate for 2026, suggesting a baseline of $250 million after accounting for one-time items. He also asked about the timeline for the PDS spread rate to normalize to the $10-$10.50 range.

    Answer

    CEO Jeff Shaner advised against simply subtracting timing-related items, stating the business is fundamentally stronger and now operating north of a 10% EBITDA margin, though he cautioned against expecting a 15% margin. CFO Matt Buckhalter added that the PDS spread rate will continue to decline through Q3 and Q4, expecting to exit December at a normalized go-forward rate, but it will remain somewhat elevated for the rest of the year.

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    Andrew Mok's questions to Brookdale Senior Living Inc (BKD) leadership

    Andrew Mok's questions to Brookdale Senior Living Inc (BKD) leadership • Q2 2025

    Question

    Andrew Mok asked for targets on moving communities out of the sub-70% occupancy band, clarification on the early-quarter softness in move-ins, and the drivers of strong operating cash flow and its impact on capital priorities.

    Answer

    EVP & CFO Dawn Kussow detailed plans for the sub-70% band, with 50 communities slated for disposition and 38 being addressed by SWAT teams. She attributed early Q2 softness to macro uncertainty but noted a strong rebound in May and June, with the economic benefit expected in Q3. Kussow and EVP & General Counsel Chad White explained that strong cash flow was driven by operational improvement and will be reinvested into the portfolio, particularly through 'first impressions' CapEx projects that are yielding good results.

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    Andrew Mok's questions to Brookdale Senior Living Inc (BKD) leadership • Q1 2025

    Question

    Andrew Mok from Barclays asked for clarification on which occupancy initiatives were already contributing to results versus those that are new, the drivers behind the increased full-year RevPAR guidance, and the rationale for implementing a dynamic pricing strategy now.

    Answer

    EVP & CFO Dawn Kussow explained that initiatives like the 'SWAT teams' began in late 2024 and are now being expanded due to their proven success. The full-year RevPAR guidance was raised based on confidence that year-over-year growth will accelerate through the year, being stronger in Q4 than in Q1. She clarified that dynamic pricing is an ongoing tool, and the company is simply being more active in repricing both up and down to capitalize on specific market opportunities.

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    Andrew Mok's questions to Privia Health Group Inc (PRVA) leadership

    Andrew Mok's questions to Privia Health Group Inc (PRVA) leadership • Q2 2025

    Question

    Andrew Mok of Barclays noted that shared savings revenue was significantly better than expected and asked for details on what drove the beat and how much of it flowed through to the Care Margin.

    Answer

    CEO Parth Mehrotra stated the outperformance was broad-based across all value-based contracts (Commercial, MA, MSSP, Medicaid) rather than tied to a single program. He attributed the success to proactive risk management and operational execution over the past 24-36 months, which positioned Privia ahead of pressures from utilization, V28, and STAR score changes. He confirmed this performance flows directly through to Care Margin and EBITDA, contributing to consistent margin expansion.

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    Andrew Mok's questions to Privia Health Group Inc (PRVA) leadership • Q4 2024

    Question

    Andrew Mok asked for more details on the M&A pipeline, given the company's cash balance approaching $500 million, and inquired about other potential uses of cash if M&A opportunities are not pursued.

    Answer

    CEO Parth Mehrotra stated that the M&A pipeline is robust, but Privia will remain disciplined, especially given the challenging environment for many value-based care entities. He confirmed they are evaluating medical groups, risk entities, and MSOs. Beyond M&A, the capital provides a buffer against risks and could be used for share repurchases if the stock price deviates from its intrinsic value.

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    Andrew Mok's questions to Privia Health Group Inc (PRVA) leadership • Q3 2024

    Question

    Andrew Mok from Barclays questioned the drivers behind the increased free cash flow conversion guidance, asking if it was due to broad outperformance or better-than-accrued 2023 MSSP results, and if expectations for 2024 shared savings had changed.

    Answer

    CEO Parth Mehrotra attributed the higher free cash flow conversion to broad-based outperformance across all business lines, not just MSSP, noting strong top-line and bottom-line results combined with minimal CapEx. He added that shared savings for the year are tracking better than their initial conservative guidance, which had factored in significant MA headwinds that the company successfully navigated.

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    Andrew Mok's questions to Acadia Healthcare Company Inc (ACHC) leadership

    Andrew Mok's questions to Acadia Healthcare Company Inc (ACHC) leadership • Q2 2025

    Question

    Andrew Mok expressed confusion about the weaker Medicaid volumes, asking for evidence that it's a payer issue rather than disenrollment, and requested clarification on the components of the operating cash flow guidance.

    Answer

    CEO Christopher Hunter reiterated that the company is observing different behaviors by payer and monitoring the situation, without providing specific evidence to isolate the cause. CFO Heather Dixon clarified that the operating cash flow guidance excludes non-recurring legal costs and that reported cash flow would need to be adjusted down for these items, which totaled roughly $80 million in the first half of the year.

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    Andrew Mok's questions to Acadia Healthcare Company Inc (ACHC) leadership • Q1 2025

    Question

    Andrew Mok of Barclays questioned the cause of the year-over-year decline in specialty revenue for five consecutive quarters and asked when it might return to growth. He also asked if the Tennessee supplemental payments would be recognized in the acute inpatient revenue line.

    Answer

    Executive Heather Dixon attributed the specialty revenue decline primarily to the closure of four specialty facilities over the past 1.5 years as part of portfolio management. A secondary factor was a mix shift towards Medicaid within the specialty inpatient business. She confirmed that the Tennessee supplemental payments would indeed hit the acute inpatient revenue line.

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    Andrew Mok's questions to Acadia Healthcare Company Inc (ACHC) leadership • Q4 2024

    Question

    Andrew Mok requested a disclosure of Acadia's total 2024 revenue exposure from state-directed supplemental payments. He also sought to reconcile the significant forecasted drop in revenue per patient day growth, questioning the interplay between conservatism on supplemental payments and other factors like core rates.

    Answer

    CFO Heather Dixon disclosed that gross supplemental payments for 2024 were less than $200 million before associated provider taxes, and she agreed that a net benefit of roughly two-thirds is a reasonable estimate. To explain the rate guidance, she cited three factors: supplemental payments providing less of a tailwind than in recent years, a deliberately conservative stance on policy uncertainty, and the normalization of the CTC service line's growth, which no longer provides the 100-basis-point rate tailwind it did in early 2024.

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    Andrew Mok's questions to Acadia Healthcare Company Inc (ACHC) leadership • Q3 2024

    Question

    Andrew Mok asked if referral decisions are made at an organizational or individual level and challenged the view that the volume headwind is 'temporary,' given the sticky nature of referral patterns, seeking evidence of recovery.

    Answer

    CEO Christopher Hunter clarified that referral decisions are made by individuals. He provided anecdotal evidence of recovery, stating that direct engagement with concerned individuals has, in some cases, successfully improved the situation and restored referral patterns, describing it as a 'ground game' strategy.

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    Andrew Mok's questions to Oscar Health Inc (OSCR) leadership

    Andrew Mok's questions to Oscar Health Inc (OSCR) leadership • Q2 2025

    Question

    Andrew Mok from Barclays requested a bridge for the decline in excess capital from Q1 to Q2, clarification on the minimum cash level held at the parent company, and an explanation for why the risk adjustment accrual isn't increasing more significantly year-over-year despite rising market acuity.

    Answer

    CFO Scott Blackley attributed the drop in excess capital primarily to the net loss recognized in Q2. He confirmed that parent cash levels are comfortably above internal targets. On risk adjustment, he explained that the current accrual rate is a good proxy for the full year as it now fully reflects the updated, higher market morbidity.

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    Andrew Mok's questions to DaVita Inc (DVA) leadership

    Andrew Mok's questions to DaVita Inc (DVA) leadership • Q2 2025

    Question

    Andrew Mok asked for clarification on DaVita's treatment volume trends following the recent cyber attack, questioning the revised outlook for elevated mistreatments. He also inquired about the financial contribution of phosphate binders and the reasons for lower-than-expected dispensing volumes.

    Answer

    CEO Javier J. Rodriguez stated the year was progressing as expected aside from the flu and the cyber incident. CFO Joel Ackerman explained that while patient admissions normalized post-attack, an unexpected spike in mistreatment rates in Q2 prompted a more conservative outlook for the rest of the year. Regarding binders, Ackerman noted the lower volume was due to patient adherence issues, not patient mix, and provided the contribution to revenue and cost per treatment.

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    Andrew Mok's questions to DaVita Inc (DVA) leadership • Q1 2025

    Question

    Andrew Mok from Bank of America inquired about the breakdown of the 50-basis-point treatment growth revision between the flu and the cyber attack. He also asked how the costs from the cyber attack would be treated in earnings and sought more detail on the oral phosphate binder mix and its expected evolution. Finally, he asked about commercial mix and Q1 exchange plan growth.

    Answer

    CFO Joel Ackerman detailed the treatment growth revision, attributing slightly more than half to the flu's census impact and the rest split between Q1 mistreatments and cyber-related admission losses. He clarified that direct cyber costs will be non-GAAP items, while indirect costs are included in guidance. CEO Javier Rodriguez explained the phosphate binder favorability was due to a higher mix of iron-based binders, which they expect to remain stable. He also noted that commercial mix was flat in the low 11% range and open enrollment was healthy.

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    Andrew Mok's questions to DaVita Inc (DVA) leadership • Q4 2024

    Question

    Andrew Mok from Barclays asked for clarification on the revenue per treatment math for phosphate binders, which seemed light. He also inquired about the acceleration in G&A costs and requested quantification of a settlement gain.

    Answer

    CFO Joel Ackerman explained the blended RPT impact from binders is lower than the per-patient Medicare amount because it doesn't apply to all payers and not all patients take the therapy. CEO Javier Rodriguez described G&A as part traditional cost and part investment in areas like IT and revenue operations that yield benefits elsewhere. Ackerman declined to quantify the settlement gain, calling it small and routine.

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    Andrew Mok's questions to DaVita Inc (DVA) leadership • Q3 2024

    Question

    Andrew Mok asked about the hurricane impact on Q3 and Q4 treatment volumes, the implied acceleration in Q4 growth, the magnitude of 2025 headwinds and tailwinds, the financial impact of phosphate binders, drivers of G&A growth, and the ACA exchange mix.

    Answer

    CFO Joel Ackerman quantified the Q3 hurricane volume impact at 10 basis points and expects a lesser impact in Q4. For 2025, he suggested modeling headwinds and tailwinds as offsetting at the OI line. CEO Javier Rodriguez explained that the phosphate binder impact is currently unquantifiable due to unknown reimbursement, mix, and volume variables. Rodriguez also attributed higher G&A to investments in IT, wages, and reimbursement operations, and noted the company's QHP mix is around 3%, growing with the market.

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    Andrew Mok's questions to Encompass Health Corp (EHC) leadership

    Andrew Mok's questions to Encompass Health Corp (EHC) leadership • Q2 2025

    Question

    Andrew Mok of Barclays inquired about mature occupancy rates for single-bedroom facilities and the company's stance on potential CMS quality rating initiatives.

    Answer

    EVP & CFO Doug Coltharp stated that for all-private room hospitals, bed expansion is considered when occupancy exceeds 80%, with capacity running into the mid-to-high 90s. CEO Mark Tarr added that while CMS did not move forward with new quality initiatives in the final rule, Encompass Health is open to incorporating new quality measures if the industry agrees on the standards.

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    Andrew Mok's questions to Encompass Health Corp (EHC) leadership • Q1 2025

    Question

    Andrew Mok from Barclays requested details on the drivers of the strong 3.9% growth in revenue per discharge and its expected trend, and also asked about the level of share repurchases contemplated in the new guidance.

    Answer

    CFO Douglas Coltharp attributed the strong revenue per discharge to low bad debt, a favorable payer mix shift toward higher-reimbursing Medicare, and positive quality metrics, but noted they do not assume the payer mix trend will sustain. Regarding buybacks, he did not provide a specific number but highlighted that Q1 repurchases exceeded the full year 2024 amount and that continued activity should be expected as declining leverage creates capacity.

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    Andrew Mok's questions to Encompass Health Corp (EHC) leadership • Q4 2024

    Question

    Andrew Mok requested more detail on the specific drivers of rising group medical prescription drug costs. He also asked about the expected net benefit from provider taxes in 2025 and whether the 2024 benefit would recur.

    Answer

    CFO Douglas Coltharp identified GLP-1s, new cancer drugs, and a specific eye health medication as the main drivers of higher drug costs. Regarding provider taxes, he stated the 2024 benefit of $15.4 million included $5 million from prior periods that is not expected to repeat. He emphasized the item's unpredictability and noted it is not a point estimate in the 2025 guidance.

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    Andrew Mok's questions to Encompass Health Corp (EHC) leadership • Q3 2024

    Question

    Andrew Mok asked whether the 7-8% growth in total FTEs would moderate or continue to track discharge growth, and also inquired about the underlying wage inflation and its future outlook.

    Answer

    CFO Douglas Coltharp stated that FTE growth is expected to remain highly correlated with discharge growth, as the company has stabilized its employees per occupied bed (EPOB) at approximately 3.4. He specified that underlying wage inflation (SW per FTE) was 3.5% in the quarter. He also noted that RN and therapist turnover rates were at very strong levels of 20.7% and 7.6%, respectively.

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    Andrew Mok's questions to Addus Homecare Corp (ADUS) leadership

    Andrew Mok's questions to Addus Homecare Corp (ADUS) leadership • Q2 2025

    Question

    Andrew Mok from Barclays asked about the overall reimbursement environment for home and community-based services (HCBS), given that national Medicaid payers have cited it as a margin pressure point. He also questioned the drivers behind the negative same-store census volume in the quarter.

    Answer

    EVP & CFO Brian Poff acknowledged payer pressures but highlighted continued strong rate support from key states like Illinois and Texas, though he expects the pace of increases to moderate. President & COO Bradley Bickham and CFO Brian Poff clarified that the negative same-store census comparison was distorted by the prior-year inclusion of the disposed New York business, and that on a sequential basis, census actually increased.

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    Andrew Mok's questions to Addus Homecare Corp (ADUS) leadership • Q1 2025

    Question

    An associate on behalf of Andrew Mok from Barclays asked for a breakdown of the 7.4% same-store revenue growth in Personal Care, especially given the decline in same-store census. They also inquired about how same-store gross margins compared after excluding recent M&A and divestiture activity.

    Answer

    W. Bickham, President and COO, attributed the strong revenue growth to better caregiver scheduling and improved service percentage, driven by new operational tools. He explained the census decline was a temporary effect of the Medicaid redetermination process. CFO Brian Poff added that on a same-store basis, the gross margin was 'fairly equal' to the prior year and slightly ahead of expectations.

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    Andrew Mok's questions to Addus Homecare Corp (ADUS) leadership • Q3 2024

    Question

    Andrew Mok of Barclays asked for an outlook on wage inflation over the next 15 months, noting it appears elevated, and what would be required to lower unit cost inflation. He also inquired about the underlying trends and drivers of variability in the hospice length of stay and where it is expected to normalize.

    Answer

    President and COO Brad Bickham stated that wage inflation has not been as high as suggested in personal care, as rate increases have offset pressures, while skilled wage inflation is running around 3-4%. He also explained that hospice length of stay is now stabilizing to a more normalized level after volatility during the COVID-19 public health emergency, and the current levels are considered appropriate.

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    Andrew Mok's questions to Surgery Partners Inc (SGRY) leadership

    Andrew Mok's questions to Surgery Partners Inc (SGRY) leadership • Q2 2025

    Question

    Andrew Mok of Barclays asked for an explanation of the year-over-year and sequential increases in 'other operating expenses' and 'professional fees.' He also requested commentary on working capital considerations for the remainder of the year.

    Answer

    CFO Dave Doherty explained that 'other operating expenses' can fluctuate due to items like provider taxes, while the increase in 'professional fees' was mainly tied to costs from facilities acquired in 2024. For working capital, he identified higher interest expense as the primary headwind for the rest of the year, following the expiration of interest rate swaps, but noted this is partially offset by ongoing improvements in revenue cycle management.

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    Andrew Mok's questions to Surgery Partners Inc (SGRY) leadership • Q1 2025

    Question

    Andrew Mok of Barclays asked for details on the company's confidence regarding its low tariff exposure and questioned the significant increase in the cash payout to non-controlling interests (NCI) in the quarter.

    Answer

    CFO David Doherty attributed the confidence on tariffs to their partnership with GPO HealthTrust, which provides significant contract protection and visibility for 70% of their spend. Regarding the NCI payout, he explained it was a simple timing issue where year-end holiday schedules pushed some Q4 distributions into Q1, causing a temporary 'double up' that will normalize in subsequent quarters.

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    Andrew Mok's questions to Surgery Partners Inc (SGRY) leadership • Q4 2024

    Question

    Andrew Mok questioned the lack of operating leverage in Q4, the drivers of high transaction costs and their expected abatement, and the reason for a large change in the deferred tax asset valuation allowance.

    Answer

    CFO David Doherty attributed the Q4 EBITDA pressure primarily to accounting for the corporate performance bonus, which was higher than in the prior year. He detailed that the elevated transaction costs were due to higher M&A volume, deal complexity, and costs related to the Board's strategic review, and expects these to abate significantly in 2025. Doherty explained the deferred tax asset change was a non-cash, technical accounting requirement with no impact on the company's cash tax position or use of NOLs.

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    Andrew Mok's questions to agilon health inc (AGL) leadership

    Andrew Mok's questions to agilon health inc (AGL) leadership • Q2 2025

    Question

    Andrew Mok of Barclays asked for specific reasons why burden of illness assessments underperformed revenue expectations and sought clarification on the 6% first-half cost trend versus the prior full-year guidance of 5.3%.

    Answer

    CFO Jeff Schwaneke clarified the 6% trend was in line with expectations for the first half of the year. On risk adjustment, he explained the issue was not rejected codes but a need to better identify patient conditions, a gap that new clinical programs for diseases like heart failure and dementia are designed to close, with financial benefits expected in 2026.

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    Andrew Mok's questions to agilon health inc (AGL) leadership • Q4 2024

    Question

    Thomas, on behalf of Andrew Mok, asked for the latest 2024 national trend figure that CMS provided for the ACO REACH program.

    Answer

    CFO Jeffrey Schwaneke and CEO Steven Sell confirmed the latest published national trend for the ACO REACH reference population was 7.8%. They added a note of caution that this figure could be updated and potentially increase.

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    Andrew Mok's questions to agilon health inc (AGL) leadership • Q3 2024

    Question

    Andrew Mok followed up on the negative risk adjustment, asking whether it was a data or forecasting issue, the timeline for operational fixes, and how investors could gain confidence that the issue will not recur.

    Answer

    CFO Jeffrey Schwaneke characterized it as a forecasting issue where an overly optimistic forecast was created based on strong 2023 investment in the Burden of Illness program. To build confidence, he stated the current forecast is now tied to mid-year government data, incorporates a historical midyear-to-final lift analysis, and has been cross-referenced with the forecasts of their large payer partners to ensure a robust and well-supported estimate.

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    Andrew Mok's questions to Cigna Group (CI) leadership

    Andrew Mok's questions to Cigna Group (CI) leadership • Q2 2025

    Question

    Andrew Mok of Barclays asked for an update on Cigna's GLP-1 products and their dispensing economics, considering recent partnerships and a competitor's commentary on headwinds.

    Answer

    President and COO Brian Evanko stated that GLP-1 contributions to Evernorth are in line with 2025 expectations. He detailed a new program capping patient out-of-pocket costs at $200/month to encourage employer adoption. While market feedback is positive, he expects most clients to incorporate this new benefit at renewal. The overall economic impact from GLP-1s remains consistent with the company's full-year guidance.

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    Andrew Mok's questions to Cigna Group (CI) leadership • Q1 2025

    Question

    Andrew Mok inquired about Evernorth's experience in the evolving Part D market under the IRA, asking about observed changes in manufacturer or member behavior and a potential pickup in specialty scripts previously covered by patient assistance programs.

    Answer

    President and COO Brian Evanko noted a structural shift toward more complex specialty medications. He reported that Evernorth's specialty script volumes grew in the mid-teens in Q1, with Medicare growth being 'considerably higher' than commercial. While the exact cause is unclear (IRA impact vs. manufacturer marketing), he confirmed the trend is a clear beneficiary for Evernorth's Specialty and Care Services business.

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    Andrew Mok's questions to Cigna Group (CI) leadership • Q4 2024

    Question

    Andrew Mok of Barclays asked for clarification on why the pressure from higher specialty drug costs was impacting the stop-loss business but not appearing to affect the fully insured portion of the business.

    Answer

    CFO Brian Evanko explained that the total healthcare cost structure for 2024 was in line with expectations, but the mix of costs shifted disproportionately toward high-cost individual claimants, which specifically pressures stop-loss products. CEO David Cordani added an illustration: a moderation in lower-dollar inpatient events was offset by an acceleration in higher-dollar events like complex cardiac and oncology procedures, concentrating the financial impact on the stop-loss segment.

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    Andrew Mok's questions to Cigna Group (CI) leadership • Q3 2024

    Question

    Andrew Mok requested more detail on the nature and magnitude of the planned strategic investments across the core PBM and specialty businesses that are expected to continue into 2025.

    Answer

    CFO Brian Evanko explained that these internal reinvestments are a core part of the capital deployment framework. He noted the company is tracking toward approximately $1.5 billion in discretionary CapEx for 2024, with the majority directed toward technology, including customer, provider, and broker-facing platforms, to strengthen capabilities in high-growth areas like specialty.

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    Andrew Mok's questions to CVS Health Corp (CVS) leadership

    Andrew Mok's questions to CVS Health Corp (CVS) leadership • Q2 2025

    Question

    Andrew Mok of Barclays asked for a reconciliation of the favorable Medicare results in the HCB segment with the unfavorable results at Oak Street, questioning the source of the pressure and the specific cost drivers.

    Answer

    CEO David Joyner and CFO Brian Newman clarified that the populations are different, with Oak Street serving a higher-acuity population and Aetna members being a minority of its patients. EVP & Group President, Prem Shah, attributed Oak Street's pressure to elevated medical costs and robust benefits, which are being addressed through enhanced leadership, technology, and a revised center expansion strategy.

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    Andrew Mok's questions to CVS Health Corp (CVS) leadership • Q1 2025

    Question

    Andrew Mok sought more detail on the 'early signs of pressure' observed at Oak Street Health, asking about the nature and timing of these trends and if any operational challenges had emerged.

    Answer

    Prem Shah, EVP and Chief Pharmacy Officer, responded that while the overall health care delivery business performed in line with expectations, Oak Street Health experienced some pressure from medical cost trends in the first quarter. He characterized the data as 'very immature' and noted the company will continue to monitor how claims develop, adding that this pressure was offset by favorability in other parts of the health care delivery business.

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    Andrew Mok's questions to CVS Health Corp (CVS) leadership • Q4 2024

    Question

    Andrew Mok asked for elaboration on the aggressive actions taken in the individual ACA business, including any changes to provider networks and the expected impact on margins embedded in the 2025 guidance.

    Answer

    CFO Tom Cowhey noted the individual exchange business was unacceptable, losing nearly $1 billion in 2024. Due to significant pricing actions, membership is expected to fall from 1.85 million to under 1 million in 2025, which should drive margin improvement but not a return to breakeven. Executive Steve Nelson added that the team is reviewing all components, including network design and risk adjustment capabilities, to improve performance and return the business to target margins over time.

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    Andrew Mok's questions to CVS Health Corp (CVS) leadership • Q3 2024

    Question

    Andrew Mok asked for an update on the expected pace of Medicare Advantage margin improvement and inquired about the reason for changing the target margin range from 4-5% to 3-5%.

    Answer

    An executive, likely CFO Tom Cowhey, explained the target margin change is primarily a mathematical result of the Inflation Reduction Act's changes to the Part D program, which increases the premium denominator. He noted that while margin improvement is expected in 2025 and 2026, the long-term pace is dependent on the rate environment. CEO J. Joyner added his focus is on accelerating performance through total cost of care management and asset integration.

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    Andrew Mok's questions to Alignment Healthcare Inc (ALHC) leadership

    Andrew Mok's questions to Alignment Healthcare Inc (ALHC) leadership • Q2 2025

    Question

    Andrew Mok of Barclays sought clarification on the calculation of the $14 million out-of-period risk adjustment benefit and asked if it should be excluded from forward-looking models. He also asked about the fully diluted share count.

    Answer

    CFO Jim Head explained that the $14 million sweep payment is a normal course of business, especially with high growth, and should not be backed out of the earnings base, though its magnitude is unpredictable. He noted it reflects a conservative stance on booking revenue for new members. Regarding the share count, Head suggested taking the detailed calculation offline to ensure accuracy.

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    Andrew Mok's questions to Alignment Healthcare Inc (ALHC) leadership • Q1 2025

    Question

    Andrew Mok from Barclays requested clarification on Part D seasonality, noting that the MLR trend now seems to be increasing later in the year, contrary to initial expectations. He also asked for the reason behind the expected increase in Part D revenue PMPMs throughout the year.

    Answer

    CFO Robert Freeman clarified that while the Part D MBR could see an uptick in Q4, the overall second-half MBR is still expected to be lower than the first half. He explained the Part D revenue PMPM increase is driven by two factors: the timing of midyear revenue sweeps and the expected reversal of the company's risk corridor position from a contra-revenue payable to a positive revenue contributor later in the year.

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    Andrew Mok's questions to Alignment Healthcare Inc (ALHC) leadership • Q4 2024

    Question

    Speaking for Andrew Mok, an analyst asked why Alignment assumes a flatter MLR slope from IRA changes compared to peers and whether it relates to their Part D benefit structure. A follow-up question concerned the drivers of higher Q4 G&A and the expected quarterly progression in 2025.

    Answer

    Executive Robert Freeman suggested the difference in MLR slope may be because peers have stand-alone Part D plans, which Alignment does not. He expressed confidence in their forecasting, expecting a similar MBR seasonality pattern to past years, just with a less steep slope. Regarding G&A, he attributed the Q4 increase to normal sales and marketing seasonality combined with higher commission costs from significant membership outperformance, while highlighting the 330 basis points of full-year operating leverage gained.

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    Andrew Mok's questions to Alignment Healthcare Inc (ALHC) leadership • Q3 2024

    Question

    An analyst on behalf of Andrew Mok asked about the drivers behind the atypical G&A seasonality in the second half of the year and the durability of these savings into 2025.

    Answer

    Executive Robert Freeman attributed the favorable G&A trend to the absence of new market launch costs for 2025 and the lapsing of one-time expenses from 2023 related to insourcing member experience functions. He confirmed they expect continued SG&A leverage in 2025 as they progress toward their medium-term goal of 10% SG&A as a percentage of revenue.

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    Andrew Mok's questions to Humana Inc (HUM) leadership

    Andrew Mok's questions to Humana Inc (HUM) leadership • Q2 2025

    Question

    Andrew Mok of Barclays inquired about the potential implications for Humana's membership and margins following a competitor's announced pullback from the individual PPO market.

    Answer

    President and CEO James Rechtin stated that Humana sees 'bad benefit packages,' not 'bad membership,' and feels their products are well-positioned after two years of adjustments. George Renaudin, President of Insurance, elaborated that Humana has already made significant benefit reductions in 2024 and 2025, creating a value gap to peers, and feels its plans are now priced appropriately for long-term value, regardless of growth.

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    Andrew Mok's questions to Humana Inc (HUM) leadership • Q1 2025

    Question

    Andrew Mok asked for more detail on Humana's Part D experience relative to expectations, specifically regarding the pace of seniors entering the catastrophic phase and any observed changes in member or manufacturer behavior.

    Answer

    Chief Financial Officer Celeste Mellet stated that overall business trends, including pharmacy, are developing in line with expectations. She confirmed that guidance already contemplated low double-digit pharmacy trend growth and higher trends in areas like oncology, and that current performance is consistent with these projections.

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    Andrew Mok's questions to Humana Inc (HUM) leadership • Q4 2024

    Question

    Andrew Mok asked for the P&L split of the incremental Stars investments between MLR and OpEx, and for an update on mitigation efforts for the 2026 Stars headwind, such as the potential to crosswalk the group contract, in the event of an unfavorable lawsuit.

    Answer

    CFO Celeste Mellet stated that more color on the P&L location of the investments will be provided as the year progresses. CEO James Rechtin addressed the mitigation plan, confirming they are still assessing the group book crosswalk option and that a final decision is not required until late summer or early autumn.

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    Andrew Mok's questions to Humana Inc (HUM) leadership • Q3 2024

    Question

    Andrew Mok questioned the feasibility of Humana's 3% margin target for 2027, considering the planned investment spending and current Stars scores, and asked if a minimum Stars bonus level is required to hit that target.

    Answer

    CEO Jim Rechtin acknowledged that the 3% target is realistic but carries risk, stating that 'meaningful Stars progression' is necessary without specifying a number. CFO Susan Diamond added that factors like the rate environment, V28, and IRA will also be important, and that the current investments are expected to generate returns that support the margin recovery by 2027.

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    Andrew Mok's questions to Universal Health Services Inc (UHS) leadership

    Andrew Mok's questions to Universal Health Services Inc (UHS) leadership • Q2 2025

    Question

    Andrew Mok of Barclays questioned the startup losses at the Cedar Hill hospital, its accreditation status, and the impact on guidance. He also asked for clarification on the underlying EBITDA guidance changes, excluding discrete items, and the factors offsetting the soft behavioral quarter.

    Answer

    Executive VP & CFO Steve Filton explained the Cedar Hill losses were due to delays in Medicare certification, which he expects imminently. He noted that guidance includes a $25 million drag from the facility in the second half of the year. Filton confirmed the main drivers of the guidance revision were new DPP revenues, offset by the Cedar Hill drag and scaled-back behavioral projections due to lower-than-expected volumes.

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    Andrew Mok's questions to Universal Health Services Inc (UHS) leadership • Q4 2024

    Question

    Andrew Mok inquired about the primary drivers for Universal Health Services' strong 2025 EBITDA guidance, which is higher than typical growth, and questioned the rationale for the unusually wide guidance range despite improved operational visibility.

    Answer

    Executive Steve Filton attributed the strong guidance to a return to historical norms in core EBITDA growth, driven by solid volumes, robust pricing, and effective expense controls. He noted the non-recurrence of significant 2024 malpractice expenses and benefits from lower interest costs and share repurchases. Filton explained the wider guidance range reflects conservatism due to potential uncertainty in government reimbursement policies.

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    Andrew Mok's questions to Universal Health Services Inc (UHS) leadership • Q4 2024

    Question

    Andrew Mok of BofA Securities questioned the drivers behind the strong 2025 EBITDA guidance, which is higher than typical growth despite a forecast decline in state supplemental payments. He also asked about the unusually wide guidance range.

    Answer

    Executive Steve Filton attributed the strong underlying growth to a return to historical norms in volume and pricing, effective expense control, and the non-recurrence of significant 2024 malpractice expenses. Filton explained the wider guidance range is a measure of caution due to uncertainty in government reimbursement policies.

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    Andrew Mok's questions to Universal Health Services Inc (UHS) leadership • Q3 2024

    Question

    Andrew Mok of Barclays asked for commentary on the acute care volume progression and its future outlook, and for clarification on higher corporate expenses.

    Answer

    Steve Filton stated that UHS expects acute care growth to return to pre-COVID levels, with revenue growth of 6-7% split between price and volume. He noted that unlike some peers, UHS doesn't anticipate a large incremental benefit from Two-Midnight rule changes. He attributed higher corporate expenses to a $5 million loss on debt extinguishment and $5 million in miscellaneous legal settlements, both considered nonrecurring.

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    Andrew Mok's questions to HCA Healthcare Inc (HCA) leadership

    Andrew Mok's questions to HCA Healthcare Inc (HCA) leadership • Q2 2025

    Question

    Andrew Mok of Barclays requested the latest figures for ACA exchange revenue and admissions as a percentage of total, and asked for more detail on the performance of hurricane-impacted markets, including the remaining headwind in guidance.

    Answer

    CFO Mike Marks stated that exchanges represent about 8% of equivalent admissions and just over 10% of net revenues. Regarding hurricane markets, he noted the guidance was raised by $100 million due to better-than-expected recovery. CEO Sam Hazen added that the North Carolina market saw stronger-than-anticipated demand, though this was partially offset by a tighter labor market requiring more contract labor.

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    Andrew Mok's questions to HCA Healthcare Inc (HCA) leadership • Q1 2025

    Question

    Andrew Mok requested clarification on HCA's hurricane commentary, questioning why the impact was considered neutral year-over-year when two markets were impaired in Q1 2025 but not in Q1 2024.

    Answer

    CFO Mike Marks reiterated that the company's full-year 2025 guidance assumed that the impacts from hurricanes would offset each other and not create a net tailwind. He explained that this assumption played out as expected in Q1, as the year-over-year earnings change in the two primary affected markets (North Carolina and West Florida) was effectively flat or neutral when combined.

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    Andrew Mok's questions to HCA Healthcare Inc (HCA) leadership • Q4 2024

    Question

    Andrew Mok requested details on the performance of Mission Hospital, its impact on same-store volumes in the quarter, and the expected pace of recovery in 2025, including any explicit EBITDA assumptions for hurricanes in the guidance.

    Answer

    CFO Mike Marks explained that for 2025 guidance, the expected year-over-year EBITDA increase from the reopening of Largo Hospital is anticipated to be offset by a decline in the North Carolina division due to lingering hurricane effects. Therefore, no net tailwind from hurricanes is expected in 2025. He also noted hurricanes created a 20-40 basis point drag on total company volume in Q4.

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    Andrew Mok's questions to HCA Healthcare Inc (HCA) leadership • Q3 2024

    Question

    Andrew Mok from Barclays pointed out the deceleration in inpatient revenue per admission growth in Q3 compared to the first half of the year and asked for the underlying drivers between acuity, mix, and rate.

    Answer

    CFO Mike Marks attributed the entire decline in the growth rate to state supplemental payment programs, which had a significantly lower year-over-year growth contribution in Q3 compared to the first half of 2024. He confirmed that underlying growth from acuity and strong payer mix remained robust during the quarter.

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    Andrew Mok's questions to Centene Corp (CNC) leadership

    Andrew Mok's questions to Centene Corp (CNC) leadership • Q2 2025

    Question

    Andrew Mok of Barclays requested clarification on the 2026 ACA outlook, pointing out the difference between restoring 'profitability' and achieving 'meaningful margin improvement,' and asked for a framework for the range of potential outcomes.

    Answer

    CEO Sarah London reiterated that Centene is pricing for a return to profitability in 2026 with a focus on 'margin over membership.' While she described the expected improvement as 'meaningful,' she stated it is too early to provide a specific margin range. She noted that visibility will improve significantly after state rate certifications in August and the release of the market landscape file in September.

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    Andrew Mok's questions to Centene Corp (CNC) leadership • Q2 2025

    Question

    Andrew Mok from Barclays requested clarification on the 2026 ACA outlook, pointing out the seemingly varied descriptions of 'return to profitability' and 'meaningful margin improvement,' and asked for a framework for the range of outcomes.

    Answer

    CEO Sarah London clarified that after operating slightly below breakeven in 2025, the company is pricing for a 'meaningful margin improvement' in 2026 with a focus on margin over membership. She explained that it is too early to provide a specific margin range, as visibility will improve after state rate certifications in August and the release of the competitive landscape file in September.

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    Andrew Mok's questions to Centene Corp (CNC) leadership • Q1 2025

    Question

    Andrew Mok asked for an explanation of how the Part D risk corridor works, questioning how the company can still target a 1% pretax margin if performance is poor enough to enter the corridor. He asked if it's applied at a level that allows for a blended 1% margin.

    Answer

    EVP and CFO Andrew Asher explained that the company is still on track for its 1% PDP pretax margin goal due to SG&A outperformance and the protective mechanism of the risk corridor. He detailed that the corridor creates a 50-50 cost split with CMS on losses exceeding 2.5% of the bid's pharmacy cost assumption, which is currently being triggered by high specialty drug utilization.

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    Andrew Mok's questions to Centene Corp (CNC) leadership • Q4 2024

    Question

    Andrew Mok sought clarification on how much better ACA effectuated enrollment was than expected and asked if the 20-30% membership decline assumption, should enhanced APTCs expire, contemplates member buy-downs.

    Answer

    CEO Sarah London clarified that enrollment is tracking slightly ahead due to a more muted impact from program integrity checks so far, but the company is maintaining its assumptions for a potential delayed impact. Regarding APTCs, she confirmed the 20-30% decline is a baseline scenario and that the company has run numerous mitigation scenarios, including member buy-downs and different product designs, and is prepared for various outcomes.

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    Andrew Mok's questions to Centene Corp (CNC) leadership • Q3 2024

    Question

    Andrew Mok questioned whether Medicaid HBR improvement is still considered a tailwind for 2025 after the Q3 setback and asked about visibility into the January 1st rate updates.

    Answer

    CEO Sarah London affirmed that Medicaid HBR improvement is 'definitely a tailwind for 2025.' She noted that initial 1/1 rates are coming in and a full update will be provided at the December Investor Day, reiterating confidence in growing adjusted EPS next year.

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    Andrew Mok's questions to Molina Healthcare Inc (MOH) leadership

    Andrew Mok's questions to Molina Healthcare Inc (MOH) leadership • Q2 2025

    Question

    Andrew Mok from Barclays questioned Molina's confidence in achieving Medicaid margin improvement in the second half of 2025, given the inflationary trend environment and potential risk pool pressures. He also asked about the required premium increases for ACA plans in 2026 to reset margins.

    Answer

    CFO Mark Keim acknowledged that Medicaid trends are slightly outpacing known rate updates, leading to a higher guided MCR for the second half. CEO Joseph Zubretsky addressed the ACA question by stating that while specific rate filings are not disclosed, their 2026 pricing models incorporate a catch-up for 2025's underperformance, a significantly higher medical cost trend assumption (11%), and a conservative view on the acuity shift from subsidy expirations, all aimed at restoring mid-single-digit margins.

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    Andrew Mok's questions to Molina Healthcare Inc (MOH) leadership • Q1 2025

    Question

    Andrew Mok sought clarification on the updated assumptions for higher rates and cost trends, asking which business segments they applied to and what specific factors were driving the changes.

    Answer

    CEO Joseph Zubretsky and CFO Mark Keim clarified that both the higher rate and cost trend assumptions were for the Medicaid business. They explained that while they have received higher-than-expected rate updates, they conservatively increased their cost trend outlook to match, resulting in no change to the full-year Medicaid MCR guidance of 89.9%. Keim noted seasonal illness ran about $10-15 million higher than normal but was anticipated in guidance.

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    Andrew Mok's questions to Molina Healthcare Inc (MOH) leadership • Q4 2024

    Question

    Andrew Mok from Bank of America inquired about the specific components—rates, trend, and risk corridors—that caused the 2025 Medicaid MLR guidance to be higher than the target shared at Investor Day. He also asked for clarification on why risk corridors provided no material benefit in Q4 2024.

    Answer

    CEO Joe Zubretsky explained that the 2025 Medicaid MLR guidance of 89.9% is essentially flat with 2024, based on a 4.5% rate increase matching a 4.5% trend assumption. CFO Mark Keim added that the deviation from the Investor Day outlook was due to a 60 basis point higher jump-off point from Q4 results and a neutral impact from rates versus trend, which was previously expected to be a 20 basis point benefit. Regarding risk corridors, Zubretsky described them as an 'imperfect hedge,' noting the lack of benefit in Q4 was due to trend pressure occurring in states without remaining corridor protection.

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    Andrew Mok's questions to Molina Healthcare Inc (MOH) leadership • Q3 2024

    Question

    Andrew Mok from Barclays asked for the drivers of the outperformance in the Marketplace segment and how this year's Special Enrollment Period (SEP) membership compares to prior years. He also inquired about the revenue recognition policy for off-cycle rate adjustments.

    Answer

    President and CEO Joe Zubretsky described the SEP membership growth as 'extraordinary,' noting it was driven by Medicaid redeterminations. He explained that this cohort had a younger, healthier demographic than typical SEP members, resulting in a lower MCR than historically seen. CFO Mark Keim clarified that for revenue recognition on off-cycle rates, the company requires documented evidence from the state and does not book revenue based on conversations alone.

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    Andrew Mok's questions to Tenet Healthcare Corp (THC) leadership

    Andrew Mok's questions to Tenet Healthcare Corp (THC) leadership • Q2 2025

    Question

    Andrew Mok of Barclays questioned the deceleration in inpatient and adjusted admissions during the quarter and asked for the rationale behind the 50 basis point reduction in the full-year volume guidance.

    Answer

    Chairman & CEO Saum Sutaria clarified that the guidance adjustment was a simple reflection of the year-to-date math and not indicative of an underlying issue. He emphasized that the quarter was strong, with volumes reflecting the successful execution of their high-acuity service line strategy, and noted there was nothing unusual beyond normal seasonality.

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    Andrew Mok's questions to Tenet Healthcare Corp (THC) leadership • Q1 2025

    Question

    Andrew Mok asked for perspective on how the total joints market in ambulatory surgery centers has evolved over the last five years and how much runway remains in terms of eligible population or penetration.

    Answer

    Saumya Sutaria, Chairman and CEO, stated there is still a lot of runway to move total joint procedures to lower-cost ASC settings. He cited barriers like hospital outpatient department (HOPD) strategies, physician comfort levels, and employed physician restrictions. He noted that the shift will be complete when clinical considerations are the only factor, and the industry is only about halfway through that process. Adequate outpatient reimbursement is also a key factor.

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    Andrew Mok's questions to Tenet Healthcare Corp (THC) leadership • Q4 2024

    Question

    Andrew Mok asked about the specific drivers of higher acuity in the ASC segment, noting that the case mix disclosures do not make the source of high single-digit revenue growth obvious.

    Answer

    Dr. Saum Sutaria, Chairman and CEO, clarified that the high-acuity growth is driven by specific procedures within the broad 'Orthopedics' category, such as total joint replacements (hips, knees, shoulders). These cases have significantly higher revenue, and the strategy is to grow this high-acuity work, which boosts net revenue per case even with modest case volume growth.

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    Andrew Mok's questions to Tenet Healthcare Corp (THC) leadership • Q3 2024

    Question

    Andrew Mok followed up on the Conifer topic, asking if there is an incremental enterprise EBITDA contribution from divestitures even if the service relationship is not expanded.

    Answer

    EVP and CFO Sun Park clarified that the incremental benefit referenced for 2025 comes from the "expanded opportunities" with divested hospitals. Chairman and CEO Dr. Saum Sutaria added that one large expansion will require investment to onboard, similar to a new customer, before reaching typical Conifer margin performance.

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    Andrew Mok's questions to UnitedHealth Group Inc (UNH) leadership

    Andrew Mok's questions to UnitedHealth Group Inc (UNH) leadership • Q1 2025

    Question

    Andrew Mok asked for the company's perspective on the risks and implications of potential pharmaceutical tariffs being contemplated by the administration.

    Answer

    CEO Andrew Witty stated that while the situation is dynamic, the company feels "better than pretty good" about its position. He cited multiple layers of protection, including pre-existing contractual price protections and legislative measures that limit manufacturers' ability to pass through price increases, suggesting the company has limited exposure.

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    Andrew Mok's questions to UnitedHealth Group Inc (UNH) leadership • Q3 2024

    Question

    Andrew Mok asked about the permanency of SG&A cost savings achieved in 2024 and whether any components should be considered temporary heading into 2025.

    Answer

    Andrew Witty, CEO, affirmed that the company will remain 'very, very disciplined' on cost management. He described the cost reductions as a necessary and sustainable response to external pressures like CMS rate cuts, designed to protect members. He stated that this relentless focus on finding efficiencies, particularly within Optum, will be a key feature of the company's plan going forward.

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