Seer (SEER) TD Cowen 45th Annual Healthcare Conference summary

Medicaid policy and regulatory environment

• Current federal budget proposals include significant Medicaid reduction figures, but most proposed cuts are unlikely to pass and would not materially impact the business due to exemptions and the company's low-cost provider status.

• Work requirements in Medicaid could benefit recruitment, as the company offers flexible, part-time roles that align with new workforce entrants.

• The patient base is largely insulated from work requirements due to age and disability exemptions, minimizing risk of coverage loss.

• Redeterminations slowed new patient intake, especially in Illinois, but did not result in significant patient loss; new patient flow is beginning to recover.

• State and federal lobbying efforts continue, with little concern about imminent regulatory threats.

Financial performance and outlook

• A 5.5% rate increase in Illinois, the largest market, is expected to drive top-end same-store growth in personal care, targeting 3%-5% for the year.

• Hospice segment, about 20% of business, is seeing early momentum with anticipated 2.5%-3% rate increases and volume growth.

• Seasonal margin patterns persist, with Q1 as the low point and Q4 benefiting from hospice rate increases and payroll tax relief.

• M&A remains a focus, with the Gentiva acquisition integrated and further deals, especially smaller tuck-ins, considered accretive and likely.

• EBITDA outlook for 2025 is based on stripping out New York, adding Gentiva, and applying same-store growth metrics.

Gentiva acquisition and integration

• Cultural fit and operational alignment with Gentiva's PCS business have been strong, aided by extensive pre-close planning.

• Early integration focused on payroll and financial reporting, with leadership training and data-driven decision-making introduced.

• Gentiva is scheduled for EMR system conversion in about 18 months, with current systems maintained until then.

• Financial and transition goals have been met, and the acquisition is viewed as successful to date.