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    Ben Hendrix

    Vice President and Senior Equity Analyst at RBC Capital Markets

    Ben Hendrix is a Vice President and Senior Equity Analyst at RBC Capital Markets, specializing in the healthcare and financial services sectors with coverage on over 34 public companies, including SelectQuote, UnitedHealth Group, Chemed, HCA Healthcare, and Brookdale Senior Living. Noted for a performance track record featuring a 54% success rate and an average return of 3% per rating over the past year, Hendrix's recommendations have included highly profitable calls such as a 270.6% return on MediaAlpha. Since joining RBC in January 2013, he has held prior roles at Wells Fargo Securities and UBS Investment Bank, focusing on industries such as industrials, financial sponsors, and restructuring; he began his professional career at INVESCO Institutional. Hendrix holds an MBA in Finance and Accounting from Vanderbilt University and a BSM from Tulane University and maintains active securities credentials, complying with industry regulatory requirements.

    Ben Hendrix's questions to SelectQuote (SLQT) leadership

    Ben Hendrix's questions to SelectQuote (SLQT) leadership • Q4 2025

    Question

    Ben Hendrix of RBC Capital Markets inquired about the margin progression for the Healthcare Services segment, specifically the path to target margins for seasoned SelectRx members and the dynamics of fixed versus variable costs at scale. He also asked if a specific level of EBITDA from this segment could accelerate the company's securitization program.

    Answer

    President Robert Grant explained that margins are expected to improve meaningfully through increased scale, a higher mix of tenured members, and reduced variable costs from operational optimizations and new technology. CFO Ryan Clement added that while there is no specific EBITDA threshold, the projected contribution of over $50 million from Healthcare Services in fiscal 2026 significantly enhances capital structure options, including securitization, and supports the company's goal of generating positive operating cash flow.

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    Ben Hendrix's questions to SelectQuote (SLQT) leadership • Q4 2025

    Question

    Ben Hendrix inquired about the margin progression for the Healthcare Services segment, specifically the path to target margins for seasoned SelectRx members and the associated fixed versus variable cost dynamics. He also asked if a certain level of EBITDA from this business could act as a catalyst to accelerate the company's securitization program.

    Answer

    CEO Tim Danker initiated the response, with an executive named Bob detailing the margin progression. Bob explained that as the business scales, increased tenure of members and optimizations in variable costs, such as cost of goods sold, will drive margin expansion. He noted significant potential from new technology and the new Kansas City facility. CFO Ryan Clement added that while there's no specific EBITDA threshold, the significant and growing cash flow from Healthcare Services (projected over $50 million in FY26) opens up multiple paths for improving the capital structure and will lead to positive operating cash flow for the foreseeable future.

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    Ben Hendrix's questions to SONIDA SENIOR LIVING (SNDA) leadership

    Ben Hendrix's questions to SONIDA SENIOR LIVING (SNDA) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets questioned the recent increase in labor costs relative to RevPAR growth and asked about the future outlook for the spread between revenue and expense growth.

    Answer

    President & CEO Brandon Ribar acknowledged a targeted wage increase for nursing staff to improve retention and stability, which he does not expect to be a recurring quarterly event. He stated that this investment is being offset by achieving record-high rate levels, driven by strong occupancy. Ribar affirmed the company's goal is for revenue growth to continue outpacing expense inflation, creating opportunities for margin expansion in the second half of the year.

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    Ben Hendrix's questions to SONIDA SENIOR LIVING (SNDA) leadership • Q2 2025

    Question

    Ben Hendrix from RBC Capital Markets questioned the relationship between the increase in labor costs and same-store RevPAR growth, asking for the outlook on the spread between revenue and expense per occupied room (RevPOR vs. ExPOR) going forward.

    Answer

    President & CEO Brandon Ribar explained that the labor cost increase was a targeted investment in nursing wages to improve staff stability and retention, which is already reducing employee turnover. He noted this investment supports higher resident rates, evidenced by record RevPAR. Ribar stated the company expects top-line revenue growth to continue outpacing expense inflation, leading to margin expansion in the second half of the year and beyond.

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    Ben Hendrix's questions to Concentra Group Holdings Parent (CON) leadership

    Ben Hendrix's questions to Concentra Group Holdings Parent (CON) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets asked for clarification on industry mix dynamics within the business and inquired about the expected run-rate for G&A and cost of service margins after the Nova and Pivot integrations and the separation from Select Medical are complete.

    Answer

    CEO Keith Newton clarified that contrary to the question's premise, the company has not seen significant shifts in its diversified industry mix, which remains stable. President & CFO Matthew DiCanio addressed the margin question by pointing to the full-year 2025 guidance, which implies an EBITDA margin similar to the prior year despite significant acquisition and separation activities. He deferred specific 2026 run-rate margin guidance to future quarters.

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    Ben Hendrix's questions to Concentra Group Holdings Parent (CON) leadership • Q4 2024

    Question

    Ben Hendrix of RBC Capital Markets inquired about Concentra's strategy for integrating large acquisitions like Nova, the specific integration costs included in the 2025 forecast, and the company's deleveraging plan following the transaction.

    Answer

    Executive William Newton highlighted Concentra's successful history with large-scale integrations, noting that Nova's overlapping footprint with existing infrastructure simplifies the process. Executive Matthew DiCanio added that a detailed integration playbook has been in development for over six months. Regarding leverage, DiCanio confirmed the goal is to reduce the pro forma 3.9x net leverage to approximately 3.5x by year-end 2025 and target 3.0x within 18-24 months, driven by EBITDA growth and strong cash flow, which Newton noted typically accelerates in the second half of the year.

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    Ben Hendrix's questions to Pennant Group (PNTG) leadership

    Ben Hendrix's questions to Pennant Group (PNTG) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets inquired about The Pennant Group's perspective on the Tennessee market following the Amedisys divestiture, the influence of the Ensign relationship on the deal, and the potential for the proposed home health clawback to impact capitated managed care contracts.

    Answer

    John Gochnour, President & COO, explained that Tennessee is an attractive market with a strong talent pool and that Ensign's recent entry provides an opportunity to build a care continuum. He also confirmed that while Medicare rate adjustments affect both fee-for-service and capitated contracts, Pennant has multiple levers to offset the impact, including its diversified business lines in hospice and senior living.

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    Ben Hendrix's questions to Brookdale Senior Living (BKD) leadership

    Ben Hendrix's questions to Brookdale Senior Living (BKD) leadership • Q2 2025

    Question

    Ben Hendrix inquired about the 10 basis point spread between RevPOR and ExPOR, asking if this is a near-term target, and also asked about progress on reducing controllable move-outs.

    Answer

    EVP & CFO Dawn Kussow stated that they expect the margin spread to widen, particularly into 2026, and noted some current expense noise. EVP & General Counsel Chad White added that long-term industry fundamentals support pricing power outpacing expense inflation. Regarding move-outs, Kussow mentioned seeing favorability in attrition and that the marketing team is developing a resident retention program, as keeping residents is more cost-effective than acquiring new ones.

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    Ben Hendrix's questions to Aveanna Healthcare Holdings (AVAH) leadership

    Ben Hendrix's questions to Aveanna Healthcare Holdings (AVAH) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets asked about the positioning of Home and Community-Based Services (HCBS) amid state budget headwinds from Medicaid cuts. He also inquired about the potential for proposed Medicare Home Health cuts to affect episodic rates with preferred payers.

    Answer

    CEO Jeff Shaner stated that despite budget pressures, states continue to value HCBS for its cost-effectiveness, noting 10 states granted rate increases this year. Regarding the proposed Medicare rule, Shaner expressed strong disappointment, calling it 'bad policy' but assured that Aviana's diverse, Medicaid-heavy payer mix insulates the company from significant direct impact. CFO Matt Buckhalter added that the company will continue to advocate for its patients and partner with payers.

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    Ben Hendrix's questions to Ardent Health (ARDT) leadership

    Ben Hendrix's questions to Ardent Health (ARDT) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets asked about the drivers behind the strong inpatient surgical growth and how this trend influences capital allocation towards higher acuity services. He also sought clarification on the expected payer mix for backfilling volume after exiting certain exchange contracts.

    Answer

    President & CEO Marty Bonick attributed the 9.2% inpatient surgery growth to strength in orthopedics, cardiology, and general surgery, consistent with the company's service line rationalization strategy. He stated this frees up capacity for higher-margin procedures. Regarding backfill, Bonick expects it to come from other commercial business and physician outreach strategies targeting high-acuity cases. CFO Alfred Lumsdaine added that demand is strong across all payer categories, including core commercial and Medicaid.

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    Ben Hendrix's questions to Acadia Healthcare Company (ACHC) leadership

    Ben Hendrix's questions to Acadia Healthcare Company (ACHC) leadership • Q2 2025

    Question

    Ben Hendrix asked for an update on smaller guidance headwinds mentioned previously, such as closed facilities and liability fees, and inquired about the strategic alternatives for the underperforming facilities.

    Answer

    CFO Heather Dixon confirmed there were no changes to the previously mentioned smaller guidance items. CEO Christopher Hunter explained that the company continuously evaluates its portfolio and will not hesitate to close or repurpose facilities that lack a clear path to viability, while also proactively engaging with referral sources to address headwinds.

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    Ben Hendrix's questions to Surgery Partners (SGRY) leadership

    Ben Hendrix's questions to Surgery Partners (SGRY) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets asked for more detail on the key learnings from the company's strategic review and how those insights are shaping future strategy regarding geographic footprint, the mix of ASCs versus short-stay hospitals, and partnership models.

    Answer

    CEO Eric Evans explained that the review reaffirmed the significant value creation opportunity in the short-stay surgical market. Key strategic takeaways include an increased focus on portfolio optimization to accelerate deleveraging and cash flow generation. This involves being more open to health system partnerships and selectively divesting assets, potentially including surgical hospitals, to provide more flexibility to self-fund growth in core ASC service lines.

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    Ben Hendrix's questions to SELECT MEDICAL HOLDINGS (SEM) leadership

    Ben Hendrix's questions to SELECT MEDICAL HOLDINGS (SEM) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets asked for insight into the expected seasonality of LTAC margins given the more stable high-cost outlier environment. He also inquired about the amount of startup costs for the Inpatient Rehabilitation Facility (IRF) segment included in guidance for the second half of the year.

    Answer

    Robert Ortenzio, Co-Founder & Executive Chairman, explained that LTAC margin seasonality will remain consistent, with Q1 being the strongest and Q3 the most challenging, although overall margins are suppressed compared to 2024 levels. He also estimated that IRF startup costs for the remainder of the year are slightly less than $10 million.

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    Ben Hendrix's questions to CHEMED (CHE) leadership

    Ben Hendrix's questions to CHEMED (CHE) leadership • Q2 2025

    Question

    Ben Hendrix asked about the rationale behind assuming the Florida rate-to-cap spread will not persist, the potential link between local management initiatives and Roto-Rooter's recent recovery, and the reason for the Q2 tax rate favorability.

    Answer

    CEO Kevin McNamara explained that while a higher Florida rate is beneficial, they will manage the business assuming a rate increase at the national average, reserving any excess to prevent future cap issues. On Roto-Rooter, EVP & CFO Michael Witzeman stated that management poaching issues have abated. McNamara identified the main challenges as a one-time spike in insurance costs and, more critically, lower lead volume, which he attributed to changes in Google's search monetization. Witzeman also explained the lower tax rate was due to fewer stock option exercises during the quarter.

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    Ben Hendrix's questions to HUMANA (HUM) leadership

    Ben Hendrix's questions to HUMANA (HUM) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets questioned whether Humana's conservative MA benefit designs for 2024 and 2025 could negatively impact member experience and STARS, and what was being done to mitigate this.

    Answer

    President and CEO James Rechtin acknowledged the potential for abrasion but pointed to the high rate of 'bounce back' members as proof their offsetting operational actions are working. George Renaudin, President of Insurance, added that they monitor NPS and CAHPS surveys closely with no concerning trends and highlighted investments in member experience, like the Epic MyChart integration.

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    Ben Hendrix's questions to HCA Healthcare (HCA) leadership

    Ben Hendrix's questions to HCA Healthcare (HCA) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets questioned HCA's commercial volume trends, asking if the company is observing waning consumer confidence and if it anticipates a pre-emptive rise in procedures before a potential EPTC expiration.

    Answer

    CFO Mike Marks reported that year-to-date managed care and exchange admissions were up 4%, in line with expectations, driven by a 15.8% increase in exchange volumes. CEO Sam Hazen commented that healthcare demand has historically been inelastic and it's difficult to attribute trends to consumer confidence. He noted volume declines were concentrated in government-sponsored or non-payer business lines.

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    Ben Hendrix's questions to COMMUNITY HEALTH SYSTEMS (CYH) leadership

    Ben Hendrix's questions to COMMUNITY HEALTH SYSTEMS (CYH) leadership • Q2 2025

    Question

    Ben Hendrix of RBC Capital Markets requested a detailed bridge for the revised 2025 EBITDA guidance, an explanation of payer mix trends, particularly commercial elective weakness, and an assessment of the potential benefits from the Rural Health Transformation Program.

    Answer

    President & CFO Kevin Hammons provided the EBITDA bridge, starting with the previous midpoint and adjusting for new DPP revenue (+$140M), the Cedar Park divestiture (-$20-25M), the Q2 miss (~-$70M), and other revisions. He attributed commercial volume weakness to consumer financial pressures impacting high-deductible patients. Regarding the rural program, he stated it's too early to quantify the benefit but estimated about 40% of CHS beds could qualify.

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    Ben Hendrix's questions to TENET HEALTHCARE (THC) leadership

    Ben Hendrix's questions to TENET HEALTHCARE (THC) leadership • Q2 2025

    Question

    Ben Hendrix from RBC Capital Markets asked for more detail on the acuity trends, seeking to reconcile the strong revenue per admission with the reported decline in hospital inpatient surgeries and understand the drivers of the stronger case mix.

    Answer

    Chairman & CEO Saum Sutaria attributed the strong acuity to focused growth in cardiovascular, orthopedics, spine, neurosurgery, and robotics. He also highlighted the contributions from emergency-driven trauma cases and a successful patient transfer strategy, which brings in sicker patients requiring more complex care from outlying hospitals.

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    Ben Hendrix's questions to Elevance Health (ELV) leadership

    Ben Hendrix's questions to Elevance Health (ELV) leadership • Q2 2025

    Question

    Ben Hendrix inquired if the current environment is altering the company's capital allocation strategy, particularly the 50/50 split between reinvestment and shareholder returns, and the balance between M&A and internal projects.

    Answer

    CFO Mark Kaye explained that while Q2 share repurchases were paced for flexibility, the company intends to be opportunistic going forward. He anticipates lower M&A activity in 2025, with a greater focus on integrating past acquisitions and opportunistic buybacks. The long-term capital deployment algorithm of a 50/50 split remains unchanged.

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    Ben Hendrix's questions to UNIVERSAL HEALTH SERVICES (UHS) leadership

    Ben Hendrix's questions to UNIVERSAL HEALTH SERVICES (UHS) leadership • Q4 2024

    Question

    Asked for clarification on the projected decrease in Directed Payment Program (DPP) funds for the upcoming year and inquired about the current adequacy of malpractice reserves.

    Answer

    The decrease in DPP is primarily due to the recognition of prior-period payments in 2024, not a decline in ongoing programs. Malpractice reserves have been set more conservatively at the higher end of the actuarial range to provide a cushion, with the hope of avoiding another increase in 2025.

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    Ben Hendrix's questions to AMEDISYS (AMED) leadership

    Ben Hendrix's questions to AMEDISYS (AMED) leadership • Q3 2022

    Question

    Ben Hendrix inquired if the decline in fee-for-service visits per episode was primarily due to an increase in Low Utilization Payment Adjustments (LUPAs) caused by labor shortages, and its potential impact on future revenue comparisons.

    Answer

    President and CEO Chris Gerard responded that while the LUPA rate did increase slightly from about 10.5% to 11%, it was not significant enough to be the primary driver of the overall decline in visits per episode. He advised that he does not expect a material change in the LUPA rate for future modeling purposes. CFO Scott Ginn added that staffing constraints are more acutely felt in lower recertification rates.

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