Universal American Corp (NYSE:UAM) Q4 2014 Earnings Conference Call - Final Transcript
Feb 19, 2015 • 08:30 am ET
Good morning, and welcome to the Universal American Corporation Fourth Quarter and Year End 2014 Financial Results Conference Call. (Operator Instructions).
It is now my pleasure to introduce your host, Richard Barasch, Chairman and CEO for Universal American Corp. Thank you, Mr. Barasch. You may begin.
Thank you, and good morning, everyone. Thanks for joining us on our fourth quarter and year-end 2014 conference call. I'm here with our CFO, Bob Waegelein; and General Counsel, Tony Wolk. And now I would like to ask Tony to read our Safe Harbor language.
(Forward-Looking Cautionary Statements). During the call, we will also be referring to certain non-GAAP financial measures. Please refer to the reconciliation tables listed in the press release for a discussion of these non-GAAP financial measures.
Thanks, Tony. As we discussed throughout 2014, we made quite a bit of progress in improving the solid businesses that are at the heart of Universal American, and eliminating many of the issues that detract from the overall value and strength of our company.
Starting with Slide 4; Universal American's foundational strength is its proven ability to partner with providers, especially primary care physicians to improve health outcomes while reducing costs in the Medicare population. We've entered 2015 with a great deal of optimism that we're on path to improve and expand our healthy collaboration model.
In our Texas HMOs, we have a successful 15-year history of gain sharing with primary care providers. And in the Northeast, we are using our experience in growing market strength to bring value-based compensation to a provider community that has been historically tied to fee-for-service. We've also embraced the Medicare shared savings ACO program as another way to bring gain sharing to many more primary care providers.
We are very encouraged by Secretary Burwell's speech last month in which she said an ambitious goal to largely replace the antiquated Medicare fee-for-service system with payment reforms that reward outcomes instead of quantity. We couldn't agree more. We believe that a very bright future lies in focusing our energy on programs and locations, where we can partner with providers, especially primary care physicians to improve the quality and reduce the cost of healthcare.
This has worked, and will continue to work quite well for us in Medicare and Medicare Advantage. There is emerging evidence that it can also work in our ACO business. We believe that the skills that we and our partners are developing will be a great value as payment reforms accelerates.
In our previous 2014 earnings calls, I've discussed the following key initiatives to set ourselves up for 2015 and beyond; first, reducing our MA business to its profitable core; next, reducing our expenses both at the segment level and overall. We also right-sized and focused on investments in our ACOs, eliminate the distractions of the APS transaction, and finally, harvesting excess capital and using it appropriately for the benefit of our shareholders.
I'm pleased to say that we've made notable progress with each of these items, and