HMS (HMSY) 7 Aug 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the HMS Q2 2020 Financial Report. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker for today, Mr. Borchert. Robert sir. ahead, go Please

you, Demetrius, morning and good everyone. Thank

will be our Chief reported outlook, Chief section our fashion. question ask results that and Executive I'd filed. you press me that the Form and our Officer. are and of like until final and the Lucia, in Bill queue six-month can get then first webcast you periods one so posted site being our provide for XX, and perspective and Joining our follow-up, full results Officer; are company Investor to press can Chairman Jeff to call is via ended we Web second on on and and and remind this our yourself our and open accessed preliminary, at release questions. hms.com. the quarter today June This one Relations financial Financial financial through line timely is Bill results are will not XX-Q please Today’s IR financial Jeff the operating and recent for business a release highlighting We the is Web limit site. morning's we XXXX their in Sherman,

see results objectives materially. performance uncertainties subject of timing we current and it nature, make and updated today. expectations to those future to the guidance, surrounding actual Some the and statements to future our today our may and XXXX circumstances are cause our as differ we'll that and full-year COVID-XX, Such financial in business plans effective operating based risks and of on statements are forward-looking business a related view including

most the in reports. considered subsequent SEC and As recent Form and in press be company's XX-Q filings described factors conjunction should release a in our including XX-K cautionary the result, Form statements with the risk today's they

call our to included GAAP Finally, we Reconciliations measures of certain measures morning. in non-GAAP that, press to I’ll site. to our may this Web release hand these Bill. comparable With to over the refer posted are measures now

everyone. you, and morning good Thank Robert,

Given well-positioned our world nation HMS remains our the surrounding COVID-XX. deliver our organizational the agility and continue value financial to clients, circumstances to strength, address while and to

the quarter on to as valuable the of response services safety the was continue of our base, ensuring end centered to first we and operational while being pandemic the initial at to well execution broad client our employees. also Our deliver

in to to home we our As on call, smoothly levels. our of from discussed we successful our essentially service work first disruptions any without employees all quarter were transitioning capacity,

focused plan. closed and in benefit and quarter client on strategic continuing was on strong and product product review our strategic sales, invest verticals, efficiencies, of potential further a technologies continuing to to of continuing execute to quarter to our new drive delivering in growth our enhance yields sales introductions growth second all The and This to in includes three pipeline assess acquisitions.

year-over-year lower our on adjusted medical negative a net declining income, QX work and results COVID-XX. revenue, focus industry of and utilization, both basis. specifically, in impact second quarter had external our to So, was over same facing plans. time, few long-term to financial were ecosystem there due healthcare performance continue growth At the our entire and months, we even though past focus HMS, many the on the client on the shifts and impact sequential challenged challenges the More with pauses, certain EBITDA

to Importantly, of and the all an and low capital Nearly structure the remains encountered, positive, coming will currently industry that XXXX beneficial seeing our headwinds we be a balance. we effects currently outlook some we expect expect revenue of increasing XXXX. in QX debt this very was Despite in with robust solid business to improvement signs related COVID-XX, recent cash our the cash back-half lower and we maintained into recapture we’re of over and and have of flows quarters. of the

rising, in payment certain For Medicaid quarter increase seeing health the currently as are care during also pauses is other enrollment we're COVID-XX services. record the improve clients lifting an audits CMS integrity of our period. and medical expected requests product on third emergency to and and utilization during the example, line is enacted

recovery This revenue Second circumstances to exclude organic almost the quarter resulting from when claim therefore, increased down coordination basis of exclusively related year-ago, COVID-XX, benefits but and you lower was from on volumes an dollars. due lower Accent. to was

signs However, of should the business. as HMS improving trends seeing be beneficial that mentioned, we’re for

available Medicaid to June past For research Florida, XX through was data months. almost Georgetown that example, three according X.X% the states from Families, was up the In total the Children enrollment found on XX%. and on increase Center University over

trend reported recently publicly-traded this in number managed approximately In showed increase an care plan largest criteria in of enrollment can the QX early Medicaid plans many a easing for by coverage maintain of be attributed but the and from data addition, eligibility Medicaid re-determination their pandemic. This individuals of to to X% year. order unemployment, average also state's QX of during to health higher the

and ability higher and deliver unemployment expansion savings costs. is gaining meaningful lower sales continue from have a importance, an to pressures budget Medicaid due to to tax are state revenues, increased as significant year-ago, to federal substantially New experiencing especially clients and and as states our

provided as solutions COB COB our a example, expanded never had state our and re-procure. for we they before services For we to, federal recently services to we that sold agency

in regularly as logos, than we comprehensive to added more new solutions Our and health as were our and services expanded we new are sales commercial COB, innovator line. also Medicare for product health remains two HMS adding plans. dozen strong Medicaid market COB a plan COB a

enhanced a had opportunity anticipated, revenue through one incremental concerted year-ago, efforts. our our requests receive record and other commercial-to-commercial COB We've of MA of COVID-XX integrity Payment circumstances revenue the QX This and Premium to already Medicare-to-commercial we Medicare to COB they're our example, to our work in impacted off is generated validates clients. products, scaling recently coverage dollars our several members as also Protection from ensure and due medical innovations plans have to. an audits. of and predominantly Advantage of Solution have number As entitled a cross-selling involving premiums rollout million was been development just

on all we had quarter’s mentioned the pandemic, medical call, CMS reviews and temporarily RAC-related passed during hospital order requests. in burdens ease to last administrative As documentation

the In of started addition, CMS a line claim of also paused quarter few some and to integrity the clients our during our other improve do state clients expect quarter. and as pause. lifting work health We PI payment the during have third business second

complete enable the that the expected before, is Medicare work In program fact, month, us later claims begin during received our and from effort. recognize of to to revenue RAC pandemic, this and the which restart will for

be we'll to We recent do. created CMS to work important, a scope pipeline of robust Most with continue sales fully of work understand have the PI to able that implementations.

products new solution outlook marketing business. pipeline triage as a client pursue a our engagement product revenue to expertise resources with about new tools the clients’ the Investment client another and communicating rapid work both it that they are through made In for our claim to preventative health shifted of and to risk at focus business This unusual summary, This we highly-targeted line. to XXXX. many COVID QX pandemic for sales sales driving our traditional EBITDA while and and the in our push prospects. using leadership virus including challenging that lead-generation stronger directly is critical is leveraging lower the management during the those response our COVID-XX industry, quarter, need executives the campaign optimistic health speaks well. identify the this Elli period, our the analytics patients returning members. and from So, development to and case In remain and declined clients needs. most solution elective programs, appropriately volumes risk consumer one complications, gives and PHM traction in is visits. our performance patients client paused and for clients pauses offset information wellness sales we for as we and We're Revenue who platform, severe population impacted care the team using healthcare gain the to in also in about on also their focus the primary was

to growth. the and Jeff profitable our the strong trends remains business we're provide industry confident Importantly, for and now strategies outlook the we of macro that details of long-term believe quarter our will the growth on performance trajectory year. Jeff? remainder continue continue second additional to support our for

good you, Bill, Thank morning. and

financial and agenda. value strong and HMS product well position expanding As our mentioned, growth to continue portfolio pursue our to proposition Bill positions

business. work, in strong utilization Our At invest lower performance new rates, enabling healthy our second in quarter cash including balance industry by client and same sheet, development issues, to and was reduction the COVID-XX a future of we related focus, and to time, continue impacted PHM us flows product healthcare temporary maintain growth. suspension and shifts the or financial certain

our the we X.X% in revenue, volumes last if our previously a that fact, Accent one second from claim but operations quarter higher to revenue up strongest due X.X% fact history. in flow COVID-XX, which exclude organically anticipated. the In in of company's was than have the QX QX in cash as was year, impact down COB you slightly lower

two COB benefit We the impact could product claim quarters. volume continue negative enrollment from the of recent believe offset over our the and Medicaid next increases to trends line

quarterly our our trends past, decreased some from As the Payment is year into a revenue revenue inputs integrity and market a Medicare from one-time the release in variability. and continue you QX factor last forecast when benefit year in timing ago. exclude models reserve RAC data to have the always XX.X%

in XX.X% our lower expected noted, our of in result as of suspension as work second-half XXXX. the in to the QX in circumstances. quarter decreased adjusted primarily cost investment. reduction consumer expected In incurred down well quarter, certain you VitreosHealth of increase related when the revenue operating other temporary we an as an add-back Bill client driven of to than PHM the COVID-XX. benefit. This due schedule. was QX MedAdvisor other suspension revenue to related COVID-XX to offset release of As second and mark-to-market year-over-year We the reflected due EBITDA more $X.X was due fair XX.X% this specific integration million engagement by the increase as in in an or of which recognized Accent reconciliation certain of Adjusted acquisitions reserve the and EBITDA approximately income the costs exclude Accent the in the was million program decline to This value compensation a programs $X.X quarter, activities. decline are COVID-XX the as was

operation management, we invest includes and for in to resources analytics million strategic our and here repositioning of to addition newly severance demand approximately the of business sales, services. align the We completed account growth. support and workforce a signed small as also high-end as address and absorbed This $X expense, of future personnel, accuracy, payment our the

reported per release EPS from diluted down the Second per quarter share $X.XX adjusted $X.XX the diluted QX, a $X.XX in year was reserve ago, of excluding share benefit.

$XX.X cash Our from quarter. flow the was million operations in

continue and sheet with X.X to balance liquidity times XX debt a months very net adjusted of strong profile trailing We have total EBITDA.

Turning are in our we financial but financial the circumstances best have challenging now annual of believe performance guidance, quarter, we not we environment. historically, future updated this our to is of try to and updated in important our provide to unique it midst guidance estimate each

and to clients million work, in of XX.X%, in from to a our as impact maintaining exclude last guidance revenue guidance growth range. full-year delays low-end adjusted and for COB and business year COVID-XX, analysis expect $XXX financial EBITDA you below range payment we XXXX. QX is impact PHM the XXXX factored be million guidance, we XX.X% our integrity we $XXX now Given previous COVID-XX This due our when to towards now revenue to total a $XX million, RAC The line, of to due and the Medicare circumstances. but to performance revenue release of product compensate of are our updated to reserve reflects compared greater to the

management macroeconomic or forecasts, by accurately claim and membership very historical complexity, circumstances. sources inherent and This as unemployment the and external of With include Kaiser from fluid Medicaid currently third as our expect, midst forecast in As work said, associates and expenditures, key continuing We results Foundation. as such to drivers driven such population XXXX. well expect data health data uninsured CMS, and input variables the into issues our COVID-XX to utilization analyses obvious there internal you that both and as performance utilize we improve challenging continuous numerous fourth revenue to and trends. volume includes quarters COVID-XX. might The the Family various as in be healthcare

our for COB said we've quarter-to-quarter consistently potential always has the past, the variability. product line in As

key a performance. quarterly the play may revenue our timing So progression in part of

and volume the ultimately demand individuals increase. Services Healthcare care our cost capabilities will more the enter As and clinical believe health back online, we likely payment of come containment government outcome for accuracy, programs, sponsored

We for of close momentum second-half positive of have our our outlook XXXX active confidence the demand in and and sales the current trajectory XXXX sales our given moving for into market level and pipeline, of the solutions, implementations. our

We’re maintaining for as expense of guidance full-year the year. X.X% for adjusted of to trends range XXXX our now to growth XX% forecasted million a million for $XXX second-half EBITDA year-over-year better of the result $XXX of operating

million Act $X.X reserve adjusted investment XXXX for as comparison the exclude million purposes as Medicare from gain. well $X.X to EBITDA normalizing the the release, we’re revenue, with As

related be did beyond. for continue in order this XXXX we maintain some then We to remarks, as results last managing relative quarter, to IT and Bill second-half diligent in we'll questions, our and ready concluding drive remain investments, to an now to an costs Bill? spending While cost believe in offer expenses of acquisitions will revenue and in we increase discussed growth. appropriate the will see structure

strong protecting as in as And safety. value organization will Thank operational to our demands continue and to as services, delivering the while supported to you, in clients, invest moves Jeff. to our growth meet business swiftly fully We future resources our the account and also our we industry's needs. client well discussed, confident our remain and health outlook sales evolving employees' HMS meet market bolstering and for management remain

believe a going clinical do lower premiums higher care during from lower Strong are greater opportunities pressured and leading importance work containment in and HMS will to longer-term and sales managed as of -- health we to states. crisis way are capabilities positive effects and to this impact. this the all stations As have of positive Medicaid its COVID-XX state pressured can the the through feel for show create due sales how system, to close healthcare the after indicators. plans of outcome cost grow Medicaid we budgets are costs active revenue some our and managed are trajectory The pipeline, particularly weight

directors entire vital to and employees value healthcare I to in we our deliver our our business and So, our thank for to continue valued want their their to support commitment clients clients and be to well-positioned high industry. our the partnership. continued and board trust of for collaboration and

our workers, we’re challenging nation's sincerest on Finally, ready workers essential are who the Operator, I'd send all all frontlines our for Thank of healthcare during like appreciation serving question. time. to of you. and and the this us first responders to now all first

from Instructions] Baird. question [Operator comes Gillmor our you. Thank And first Matthew with

may You proceed.

impact I the Hi, to quarter. COVID guess good with the for morning. Thanks question. second the I start on wanted

call and obviously here, of came it, were we impacted you about a talk XX-days the than higher what sequential quarter, expectations that, business the first bit I I a million were versus of know, sort all during appreciate how you territory in think $XX the in your can about unchartered in talked quarter you had just impact but COVID sort ago? it

want to you Jeff, start?

Yes, with start take. I'll this I'll so one.

be PI was program. Medicare in and going primarily impact but we We COVID-XX of revenue million down driven we initial estimating suspension $XX had million impact in really Matt, thought so, we million to $XX of million $XX QX. the that was $X due related for to expectations our booked So, was be QX would for XXXX, RAC COB by the actually are approximately the the QX the to sequentially, that to

$XX the look for COVID. the As estimated we over impact back in quarter, now was million

are we've in forecasting fluid inherent As noted, this there environment complexities very with in the impact changing. variables

progressed, quarter work PI PI greater more million. $XX impacted As made $XX million clients the care and our that to paused second impact state-managed than obviously

occurred noted, work Bill work also pandemic. provider and addition, available claim due business, finally, slowdown recoveries, subrogation pauses during of the our for level, in state rolls side On under at also the Accent the the the the business collections quarter, but in in then the there were which COB federal utilization COB experienced that impacted our as for up lower volume healthcare.gov and our to

in expect the our said I of as third really decline. of clients and the vast driving rebound and as again, remarks, model, in majority business So, prepared we the but the overall nothing in suspensions fourth do inherent quarters, their work, restart the work

and probably utilization? precise of because you available there's claims Got back but think it's then much recapture to actually ahead, by give, of be that lost a going the Bill. healthcare much of it. and how those million, And a for if you kind about Go just as would how lower versus not follow-up, think appreciate, answer I do $XX auditing

certain point, smaller I have what Well, healthcare people comorbidities is of but -- so only there those a multiple a a amount, rebound some that will at lower be There amount utilization. be in. lost. procedures, be is will not utilization There's need that elective and get would will to say for for a

we've we'll coming and will So, seeing cost started our actually claims -- higher again, them the seeing I start think in data. through start

a And lagged is three-year opportunity data the service. recover. our data COB, retrospective course from actual a with then, So, we to little of have

number do, them and of it’s So, with do comply that once can have depending are they claims projects window, do I is or weren't clients federal need turning there them to client from mean, still years, financial on but be back two reasons, do the most PI, most three, could turned to it we requirements also we’re years, have on compliance, or we look recoveries and states the for back of drivers, be on, PI, back a audit a certain only from the a so, allowed government. the the clients up not that to can would to of the the the on

Great, thank you.

our And William question next Ryan comes Daniels Blair. with from

You may proceed.

Yes.

that that more about cost EBITDA intact, is or talked and is given something being given going COVID? the restructurings, that some You the transitory savings sustainable forward, is

No.

think, costs of we're restructuring structure, the amount We the making the year. always the do some did based we overall small a quarter. upon in Ryan, forecast back-half in our I cost second investments,

of the to that some will fund looking. we're So, actually incremental investments help

to would fairly we I we forward, think structure from again, the you progress into past, you incremental as expect happened the to that So, it's leverage going in going and at I the consistent, as back-half on our expect remain at cost as look look get the what's continue revenue EBITDA and line, of we’ll good year.

if And that to that I'm health, are is under of bit speak integrity kind you you a and if there, should Okay, just how a of for an little lined the of spikes still kind think trying the states varying those uptick whereas are Thanks. program for that's seeing helpful. on or business? where get we then, or seeing can we flat activities, regions state how monitor decline regional and pause potential basis? the curious feel that a on both cases are to of your population have impact

we’re the August, York state, across the nation as of re-auditing a now state both because and the pause Medicare the though have of all Medicare everything separate and of state auditing. that hit also asked of I would plans the was months RAC month, to integrity hospitals, this beginning New hardest the have I has health area or reopened we health by initially Ryan. behalf else and in end few we're so both the Thanks, that hoping plans where the of on that will be, ago the RAC month the from believe payment calls auditing

not have to been markets. We in different specifically asked slow down

down. So, Florida somewhat haven't we recently hotspots, are and Texas to slow been asked

compliance and So continued Advantage part, my audit. but the continued. There'll a perform guess be for most actually reason Medicare is Medicaid the the there still plans plans will delays, again be have to the some

but up, down had pretty QX only changed. lift really expect market that there we will a only entire So back come to York New where we and industry QX the audits thing as that state hard the pick the the has has through was and time started on

some seeing and And normal reflected our is claims we're companies, QX being that April volume COB that the we service reported plus isn’t, and volume. the to in expect that in incremental business in to forward you a point percent publicly XX volumes to ramp of as QX XX% were low prior-year revenue the increases volumes, and in trends as of flow, and moving is returning more least our as well seeing July the June and at approaching look also hospital

move So, we month. a seen of more as to have tendency do normalization overall towards this

with next from Jefferies. our And question comes Windley Dave

proceed. You may

good Hi, taking question. for Thanks morning. my

think questions One that at cost help words the some of of your investments. like, it you question, to the Jeff, use that sounds restructuring earlier that of you some got would I my fund mentioned, it that

we I'm you trying some there found I XXXX. have carrying think should efficiencies understand So, operating that beyond guess to over if are about that

more think cost long-term the to Just structure? about

from did with volume restructuring Yes, ramped, IT cetera, well that. I continued for think that et expected in really perspective as making will pay investments think the I some help we're we of as modeling a the

incremental that to expect back-half help wouldn't XXXX making we're in big it will of our fund some a of from but the cost in reduction drive into growth the necessarily I So XXXX. see to rate, run investments and

commercial I those being should were logos, then Accent that you the those interpret either two a could Bill, size opportunities? the give And sense us And of think you I business? of mentioned as some way, Okay. in

into HMS are building but you can't of dollars. were measure know, employers HMS see clients. on conservatively, a cross value of HMS but for kind or so being good other to to course, plans than I we've legacy there. of then that and saying we done with the just real are and contract get account, that's Yes, to we into clinical then, increase across funnel Accent services what as an traction activities but into we likely the of its' so we able all always the they what mean, other into plan measure margins us state, ultimately, the Legacy and we've -- the we consolidate And based both that's the millions always the of more I commercial HMS annual that into is account it's been building we're continued expenditures HMS have very related to technology. very HMS hard opportunity to really measure RPA, Accent sales legacy to size we but accounts doing the when or product are as rapidly and entire accounts, as And sell Accent is, with be really clients, removed Accent, the COB technology, specifics, sold COB services employees, strong would starting funnel into as for well had continue commercial-to-commercial risk that spectrum the Medicare-to-commercial line, then, the we sales COB deploy a somewhat and

great. Okay, sorry… I'm

on as and expecting. services that growth drive again, and year, Yes, are to second-half we helping traditional base our see HMS the opportunity, demand to back-half as to we're I Accent for the I in mean increase as customer Accent well as word we and the continuing new the the noted the for at certainly Bill traditional for look well, but two just the revenue COB be sales we as space, would see for COB side, noted the add Medicaid implementations even continue significant cross-selling COB

that. Okay. I it. appreciate Thank you for

next our And Leerink. comes from Stephanie with question Davis SVB

proceed. may You

is provider best volume we've multi the on side through of our been the question. like a a of earnings. part-time This running We've seen as some recovery more

think So recovery first, PI integrity on volume payer for some of concerns volume the for of demand we revenue, converge; view get see in past the are your how for you we some should just from two, assumptions what the provider the lies sort what how and remainder recovery? that year; three, of about for to payment

ahead. Go

you when multipart Yes, you these start to get questions, --

to going You're this. hate

right, any part All You can go feed of it. ahead.

eligibility comments it's started pay that us at course, when QX. from else them days those That's enrollment we increase cost healthcare a after a update that has it's free hear positive, anything plan so and that the even anywhere one and care service, market see HMS's data perspective call Medicaid managed a Medicaid dramatically quoted for the close our that heard their seeing to add in continues, recently we about another eligibility, from seen so Jeff, three volume the months growing monthly that's If or have that see X% weekly either if earnings typically We due hospital we the us publicly on side, very on be and systems they're So, get company's claims to couple consider or at a from behind until daily, of of clients, eligibility numbers that, is but it's XX or key to Medicaid months but as often about so have not QX between We recovery -- rather to see would or we we're a leading between particularly which that? we're that, we to you and avoidance. was or it's indicator we're to why more rises activity, down call what heard we -- sponsored still volumes. cost XX quickly, the insurance, which impact that XX% that XXX% when pre-COVID paid they perspective you'll current they so go to utilization. eligibility real for COB of will service the to traded start to we time happened. anywhere claim date of XXX% as faster, behind a that's then from our long then files, date were being little behind you

purposes just in noted, can our and medical Yes, and so, work of the during of plans continue we that mind. do to few managed we for are for Medicaids in and at do couple of the QX to work Bill a our audit QX. as receive claims keep continuing our I mean, a on, CMS, exception look claims states building, health I certainly, that many with pausing we as add, that really inventory quarter, record we're customers so second would

factored and is driver, to the customer certainly think You know but importantly as more the to us driving back-half that so the more claims as PI return see does just expectations. working EOB clients we've us a that we we're That that start said, and confidence most their at side, look of return doing to well level. probably allowing that, as year normalized I have is is the allowed biggest CMS as of there pause this us in give again most in going restart that to

then quick excess again Okay. this friction, comments. a environment? And without program provider we in That's about up those ramping given Medicare the talked one on creating just planning the restart guys. RAC one, of current super helpful are prepared you How

to any complex a automated records little it restrictions that depending we less sample -- clinical so a number without new typically always send to further, a happens starts to review on and relatively with a our off allowed is, enroll we provider in self-contained cycle off of claim any Well, service. what say do already slowly, audit, a on there's us Medicare facilities X before number starts were of it's let's in if given given

today. per approving cautious new for be audit RAC RAC, as CMS of recoveries the up, us, we fund capita but So the and auditors the are think algorithms remain ramp edit from and we I will trust semi highest in they

to a that little And bit. I'll add just

able So, work be we'll for quickly good offsets -- claim to a the as the do out, revenue for into second book quarter, CMS of medical start we the our paused ability those get on the request were meaning we findings during where continued with those we to period, pause pre-pandemic typical that we medical just records claims, and were requested, had doing. during couldn't to to gives we so we'll quarter, into and quarter new the our requests complete do relatively really that view work on audit records we then during for we're the able lifted, receive record to second claims, we sending but work -- pretty during the our normal quarter ability and fourth a move that more claims in claims and know routine, just that of you dollars had us

Jailendra our with next Singh from question And Suisse. Credit comes

begin. may You

that last looks retrospectively just RAC Maybe your for and go CMS review Jeff, you well, saying follow-up can one, are program a CMS so program? as loss those on generate audit for and revenue you understand some recaptured back like claims review revenue point, what can to COVID like, this or some and RAC I'm recapture is be claims? so trying just before

pandemic with the pandemic are able would these ability This be predicted working CMS claim. had for work the of would to Yes, period, incurred to the do pandemic does really any claims And back-half already the able period. that any the our during, -- in works do for still quarter. claims not before for right second the pandemic our now so started. had so forecast in claims the Well, were include that been during our to or further claims are requested and you to received We're we clarify a we work that periods. year audit from have include

Is don't Okay. benefit from case should and on increase. we about you the quarter, the nature guidance And have the how on business, enrollment given your timing that that increased then, Medicaid my of enrollment? this lag building follow-up think the talked your from benefit much last about still you Medicaid

until the recognize to back-half model seeing but of to tailwind the as and Medicaid we we would thought year. it's started positive our claims been in, we in that have quarter of going think looked the could increasing last hard guidance actual knew roles us a there We lower also the impact. be impact I and some say fair forecast and very to about for at that volume Yes, claim an

as do last some we the main the two claim second quarter, drivers it we that be quarters, we mind, assume I lost roles and volume in look have increasing So, in by of believe we offset Medicaid that in to two our safe could business. of it's think keep now lower at the that COB

call That for we paid Medicaid roles and cost quickly or from that coverage avoidance. managed database compare eligibility relatively a that. if find coverage, comes a a first we state other that other there's happens and eligibility is once on The member can get determine where we either plan, our to national

potential back-half we in offsetting claims factored to think that the guidance in of we volume of year. the into have the So some Medicaid we lower that see the of revenue have the back-half some positive our the do And year.

thanks. Okay,

our from next Hooker with And comes Donald KeyBanc. question

may You proceed.

for question questions. Thanks bit I'm to back recapture this just make where sure earlier little sorry recapture straight there's things. that, we I'm want morning, of good repeating can that get sort Hi, this but look of everyone. and you about here. effect a the because

impact a you’ve here, QX guidance as seem you QX? in reappears present million and $XX businesses. QX $XX how your you much So, across Maybe say was the to million in COVID-XX there of when from that

we number. give discrete a Yes, didn't

keep claims during pre-pandemic, claims sending post-pandemic. good have we'll claims start any the period, of at that not we clear in able the for we $XX per occurred pandemic Medicare talked pandemic able we'll again, during So, pipeline the that then RAC chunk it's be -- point, in out for new to that about. million but a to and already And this audit mind, be was the

we're RAC So, get with still CMS clarity that. piece, for I think working the on Medicare to

able of a first of again, to in little -- the second-half revenue guidance of expecting be over -- the you as look year there's to Some said, compared the prior Bill work our recapture at year of And the those year. a where related back, we're PI some if a our the first-half range, for in was work, $XX some -- we three of the of look time. year will to mid-point increase million the over in bit

we does that into third certainly, So, include as recapturing move some quarters. the and of those fourth dollars

June looks the we that? QX, synergies question, about those given acquisition, And like then super. re-ramping should quarter, Accent held in re-taper relatively expectations? it looks last revenues maybe for that the we speaking, think are -- How environment. in of should Okay, they QX it Or on like okay and top roughly the

Yes, almost accident the so at $XX would year, year that say RAC look of I we million of as half of in increase it CMS first-half really in revenue. versus second-half is the the the

okay. That’s

higher first-half the the be versus year the second-half of year. of the will That in

it the more as recovering as providers well year of -- is in back-half is traditionally Accent, So ramps the dollars from Accent and well.

staff see So or quarter dollars not back recovery impact claims. processing some from of our not some either second in just we did home repaying the and sending providers just

claims those but by the are period per budget due be there's year, those period So, expect Accent. expect that some close just we the we to perspective We dollars do into recover being of pause again some worked expect a a providers. it second-half longer -- roll not we where from in during be to again, of but to And for expect some stronger the to lost XXXX, expect dollars. going close of time pandemic to be to to a the

Thank much. you very

Dodge Sean Markets. question next our comes And with RBC Capital from

may You proceed.

proceed. You may

sense Can made kind of been management earlier, the made in building investments had morning. you little the pipeline reestablishing some sales a Maybe there? a particularly to the on going the population you've around in organization Good I has activity sales of give you'd able activity much solution. recently, pandemic bit to progress a or you'd comments your know disruption back Bill. there? us of How make a health

pipeline, [indiscernible] XXXX -- done of rebuilding sorry, we've brought fact, Yes, so good and we new the I'm we logos. in brought job pipeline, the a in alone in four

and three and would asset logos. new brand-new, then be Elli those So

new we are significant never brand are a and of we additional before, with to starting then and up-sells management then, accounts into existing then especially benefit PBMs and traction sold those queue clients. get to So we've companies, have both

Now, to capacity demand with has said, sales seems outpace the that times. at

for that re-launched HMS only queue past this line, accuracy been we’ve so, to look in sales of continuing what entire to it and confusing, as course health little we're brand plan that throughout up. of that the PHM ramping has launched then leaders, in you product state, as federal So, week space, additional consider well payment a or but sales providers. a would And make but been our less a not the has and

the you you be impact So family, saying, someone's at they're -- but when we first biggest sit was to continue their their and your want that this really have a because for to of a don't worried about did message not expect send grow, due is will to worried just may and safety visit, safety COVID home health and impact, an health and that child thing well-baby the mom that about. don't their want

have capacity emails So, to comfortable specialists. those coming of feel or are to people the second-half more or their traditional and we what expect facilities getting or back doctors increases, the healthcare see texts year and/or calls more the because in the

in on initially things longer. product quarter lot as was were up I I as we're put our where think payment sales, as of for being say progress, that. was add of out, conversations the ended second-half we progress, traveling into really easier that we our significantly, again, Yes, I and deals sales. reach a quarter of just in of and pipeline, level in our in as terms even are are the but about taking forecasts as things or finding are very get there well the that previously would and the more actually on those would I got sales mean, a progress, quarter more just was we calls meaningful And including it and our a That were those were have routine the were to integrity without payment with executives accuracy COB factored the really and strong we think high quarter process hard we all on into signed closed that having more of sales as normalized true closed year. that verticals, hold sales inflammation

the the more of in little kind I I some on related but you Can staying of couple of a what engagement just being of pandemic? give by you of a a ramping us COVID bit for interactions. applications examples partially of then, mentioned also back talked think activities, -- about that's has traditional offset some And kind stepping Okay. hope population, you this the of

ask go educate people clients -- a rapid actual when those had things. get anything about to from communication protocol in to response we developed to doctor, to to where we of number so Yes, to not state to level to all QX be down the the us a was tested, able driven of do when that

a Some continue clients do on basis. regular us of asked the that to

there people -- U.S. able we to more COVID. the that these plan the who more from have present COVID, volume are analytics study and people yet the is the we in of than continue think what not this they of building regarding their diagnosed for our had with and but from Power more in that be to that COVID that to I about a said to be should very the want outcome education. clients, think you We most health out it it half who who having did clients important was less are QX, was bad of JD we're heard the So risk doing

put to do to get that, game help them clinical and start you're a Then really COVID. of and kind need. from do not they prevent outcomes We So understand cost people them you resources what like the sure from and make what of ahead they services to on getting think perspective. much if the

health analytics platform. using as our social of some into well determinants other So using we're predictive that Elli as analytics built

well. as for system, any So, pandemic some now opportunities healthcare havoc in reek our as for there to future it are but continues we think it

right, very Thank helpful. All you.

with Richard Canaccord Close And our question comes Genuity. from next

You may proceed.

[Technical upbeat sound the the sales addressed, obviously difficulty] it the been and in pipeline. quarter but in

quarter, others? your based broad targets your the the the first pipeline, is Or across And the outpacing areas? would or it -- bookings the whether respect sales any So new internal is second I'm be the to all for is one. strength with just with to the particular curious respect area expectations that then exceeded

the first, I'll start add. to Bill, with if you want

also first Richard, we periods. of year, the quarters with two in compare the be sales prior think, line I where expected were we up when through significantly the So the year, but over to

think, traditionally, the track part the fourth year more And tends back-half the with year of on activity I of the in third selling the and quarters. be to So, anyway. stronger expected

and then, all Okay, across areas?

short budget the amount some have State towards and shortfalls. budget Yes, budgets -- and towards are we're who particularly very across but really big States seeing interests are but fair looking actually them, looking of agencies, Medicaid a not balance are large to all some at of

So we're do to gaps. those with close them, working help closely on them what can we

amount on fair we concepts new then we've have product approval and are And market some alpha present the a upon of that some get seeing new a just our to we we're be time audits clients. the their lines that. state as said, to each So out of we we we audit, the It in some and the and really are to Each side, a or sale. tests other unique have to brought then launched run with starting services selling beta in CMS. is

said one we slip or that did during get with RFP, just you with. come never any new and a there? could Bill, did they going you more thoughts to I that you mentioned in, if state any more an that? the here, details something And provide Was Okay. business you Can to pandemic need

System that of in benefits Information was enabled module the No, Procurement MITA Medicaid we MES, this -- the Medicaid piece. won was coordination

ways see by agencies the that federal that vendor re-procuring as these state are bids we able the work proposals a believe or them we're I because either roles reef government significant into that the seeing integrator, for do scope, now very contracts one of through up the number work competitively system done trying oftentimes to is again, packaged increase. of meaning we us for of it another MMIS they're a we're added sending to some their what but as procurements, to own was yeah ways find I’d on state for their did say, do vendor, won. the one they're just or a in to we then to well to our Medicaid the until win we with and through it as and amendments had shortfalls expecting so, And a money was when rework novel find save be see

Okay, thank you.

comes question next David Larsen. our from And

You may proceed.

you quantify And reductions? revenue Hi. much how With like, Thanks. of Are respect expecting year? so, that EBITDA dependent that, have in versus to the if on more to the you cost any back-half please? is of can reductions the guidance, cost

always the but would more going but to we'll technology continuing help growth deploy efficiencies learning, talked be second-half say in again efficiencies, revenue AI. increase is to machine we to technologies Yes, EBITDA year, invest expect to driven us have to we're as in about of I by drive continue process robotic of the the the in margin automation,

historically. So, getting definitely to again good revenue leverage those synergies the continue we the of of well, as be to accrue and will on in going is it that as the more have back-half but year revenue driven majority growth

guess seems Great, be an able Manila the in hospital to to is And with me Do have it my thanks. audits, paused? onsite work? why medical EMR. CMS Is they in records to medical I digging through like that and do have work have in they been to remotely paper records the you Like paused? should you like, then to at do folders been audits be able everybody that question looking order has and why be that like actually department the the the RAC the

you And could turn if potentially doesn't CMS impact the I Is I year. right? why guide August, look that So, end then, up that on back guess Thanks. at remotely? the can't guess, the of switch for revenue data the the

answer the the first So, question. let part me of

audits. do do CMS do for being them payment, with not only we any we to do some advanced but significantly that onsite were don't plans particularly for lower them don't that reviews any in CMS, but health of CMS. wanted not We send utilization, bother hospitals So, with for States, what some but as impacted

as could don't people CMS’s client's or less decision really was office, provider impacts our to in make office financial business friendly, audits these accounting to it in ways because think the of implemented you -- there're or if reality, the in number patient do that They results that as it hospitals, Now, watches and we're that are understand it the they course accounting of but a that. is turning I up-coding we a well particularly to Congress to report interested fact do the there back very program going on that as on Congress program ultimately that they COVID believe on, find and claims. even

I revenue, that by we're going Obviously, law if which shutting have they to said enacted It have down, that. that that's to is program. impact it So I would and published, will the would turning about Web they've concerned sites that, audits that back believe RAC CMS I about already on, I'm discussions it not on they think had their restart. already with the have again as happen. an on doubt we've but

Great, thanks.

couple more these questions. know little we're a I have running two we We're So, going to we final take questions, a make long. sure

comes question Strauzer with CJS. next Charlie our And from

Thank you.

at larger question Just spike pauses reinstate could your all? given last extend picking some States, pauses, have that factored the all guidance you are they at into that cases concerned forward, the you at in the up of some of some COVID of the and on about kind the going pausing,

particularly mean, have an we the I that. really where States where has see example audit don't give I'll of you -- spikes, contracts. been I Yes, there

a we Medicaid to expansive with a has recoveries. not overpayment that Florida RAC. us also So, waiver all contracts very do a for have COB They have

So, audits. They not under we that that on down lot of contract. do work a have slowed

new do California, really In fact, they're COB us. from adopting services recoveries. we only

amend then Texas and things. state can from So, ideas. recoveries And to down we of and have course note in for new are of also our they’re that contract the other the slow us would one do to not have plans audit. to they They be stopped that worked other a Texas, open asked providers, not COB

on any lifted. communicated plans in that happen and that state has only Yes, audit that could its was state? that New mean York the to but health been be State basically that I that should given So pause

the to think of are let we're I to run as system, providers are that particularly they some there back new abusing do, as and let you issue fact So going to compliance fact that get a can't rampant. normal that because have the it's can't well the who that a

a auditing across has there So, be programs. the to certain level of

and fair very you That's thank much.

comes question Citi. final our And from with Grosslight Daniel

You may proceed.

cash a pretty you this position, had capital quarter. cash nice in and free some You're flow strong

just looking has volatility additional at assets your in I'm and and impacted PI how the still deployment capital PHM the acquiring So you're near-term? curious plans, if

reviewing Yes, we be actively during are work that continuing opportunities, to the quarter. acquisition continue we

think set think do balance into can a slow then picking-up in say of the we're to look to as switchovers that certainly our and be almost are through of fit integration a halfway position now marketplace. the a IP month, during there full Accent the of expecting signs opportunistic with see sheet the be of again for be little strong the to to be We we modest health that that to to of I will the starting for good on that in challenge period, finally, the the as we opportunities the we're halfway there. continuing assets there'll will finalizing strategic a a to new able for So are really I hopefully the us. pipeline more continues that did potential and we're be occur integrity in and we're opportunities would look our out management terms acquisitions side, that year population in pandemic to terms the this some maybe of bit solution complement our result continues and And of certainly payment just selling marketplace. but expectations, down say integration pandemic period, valuation

might leaves seem just go it's maybe have love difficult right on case, guess to senate and democratic administration as thoughts read to your impact would you a kind follow-up, your of Biden if a on away? now, ACA but any won't the update it, Thanks. that political to I and how get Got a tea the And I business.

Affordable Well, most which what think we which opportunities was assume we'd and administration so means would increase that be expansion, Biden's The think course with have Care I people would an in mean would Medicaid be greater to people opportunity. for really covered, more Act, that started more I of

filed the original So, the court, AG think the we ACA with. be challenges that suit, to but the and there's challenges this to Republican of replace net There think continues has to from been posture it it's from the the positive. in nothing a I Supreme some Court,

about, the significant mean a people number think that they'll repeal, to it, coverage. don't of you're happens at depending if talking what So, happen, I side losing I their I one legal but look from were actually know on of

usual health or that's a has there I like that see care there business think put re-win been as by something challenges to a will that positive and really happen, see administration. been replacement as Trump the that as So, be Biden no were plan net but continued almost to win because we for we us forth

business we similar So, a if office. usual, think a very be it'll in it's to Trump, as back

Thanks, Got guys. it.

the portion back and the over call turn of gentlemen, remarks. any Q&A I’d this call. to now Mr. Lucia today's like conference Ladies to concludes Bill for closing

We you our today. Well, to like thank call. QX I’d all you attending forward look to to call for the speaking on

day. HMS. thanks So continued your interest in Have safe and please a wonderful stay for

you gentlemen, conference Thank for Everyone call. this and participating may now you day. have disconnect. a Ladies concludes today's and wonderful