Megan Holton

Megan Holton asked for an update on the infrastructure readiness for the new national healthcare system partnership and if any additional investments beyond initial outlook are needed. She also inquired if the Q4 CapEx run rate is the right one going forward.

Answer

Jason Clemens (CFO, AdaptHealth) stated that the company is on track with its initial outlook for infrastructure investments, which have supported December and February start dates for the new capitated contract. He mentioned the Hawaii acquisition and a $100 million draw on the revolving credit facility for an acquisition supporting the February start. He confirmed that the Q4 CapEx run rate, as a percentage of revenue, is approximately the right one going forward, factoring in the impact of recent dispositions.

Megan Holton asked for an update on the infrastructure readiness for the new national healthcare system partnership, inquiring if there are any additional investments to consider or if AdaptHealth is in line with its initial outlook.

Answer

CFO Jason Clemens confirmed that AdaptHealth is on track with its initial outlook, noting that Q4 and Q1 investments have supported the February 1st West Coast start date for the capitated contract. He mentioned subsequent start dates, the Hawaii acquisition, and a $100 million revolver draw for an acquisition supporting the February start. Megan Holton also asked about the Free Cash Flow guidance and whether the Q4 CapEx run rate is indicative of future quarters.