ModivCare (MODV) 5 Nov 212021 Q3 Earnings call transcript

Greetings and welcome to the ModivCare Incorporated Third Quarter 2021 Financial Results Conference Call. At this time, all participants will be in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jonathan Bush, Senior Vice President, General Counsel of ModivCare. Jonathan. you Thank

begin. You may

President factors operator. to joining Good risks, webcast. regarding thank you, call, that from Officer. Dan everyone, me Heath company's Officer; Sampson, Securities the make Chief everyone cause Litigation the Reform the uncertainties with morning, SEC. forward-looking third quarter and today's statements that for Those Financial expectations. is company's Greenleaf, are will or ModivCare's other management results company and the in in would from Private you Chief involve may materially actual XXXX release Executive events today these and statements Act. like Thank I differ the and and and press filings remind conference contained With under today's call to factors Information during

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leader a of morning, On the into adding quarter our kind the complementary and of progress, thank transform we a Thank strategy to ModivCare today. September made on Good you, we solutions addressing highly company acquisition care for VRI, health. on modernize joining innovative with XXth, third social us the CareFinders, first one our patient John. focused management transportation you a determinants to a integrated of significant supportive everyone, In our executing segment. rate the we completed medical of monitoring continue market fold. meal and acquisition delivery business offering. we and the the we personal company an On September non-emergency bringing completed and Throughout remote XXnd, development our in Northeast to the quarter, of into NEMT or automate advanced medication care

social positive As value transitions for and care, the nation's critical disparities. to based vulnerable addressing outcomes health market to is populations promoting our determinants most reducing of patient health

focus are experience, client enhancing a and the of driving patient ModivCare's these care to advancing cost We and with on barriers the organizational care, outcomes. removing improving by efforts transformation reducing

of Our unique in together we communities the where impact live team future work to our members in position and partners play and serve are the confident an we health integral and care. role

personal largest the XX,XXX the Scale our roughly with creates patients. and delivering matter XX,XXX platforms the approximately business. business hours care caregivers acquisition of million with combined density care one segments, Simplura this Turning CareFinders to approximately to of in in annually of country XX

expand of states access scale density, revenue as seven We are personal can approximately our at and serve With CareFinders and forma a $XXX referenced with for geographies payers leader and we the million pro states cover in to we care. large time of in which we acquisition. the operate the

outcomes. care of is continue moving escalating home, into robust long-term. settings We quality the improved cost, which our trend care institutional and personal for the from demand lower the delivers health driven of better see services away demand and to in short-term both by life This and

others care strong shortage the hours continued care personal due the workforce. XX% have industry. the region labor XX% are consistent for running is challenges supply depending of to experienced the to our to levels with below on believe due demand the during personal the caregivers pre-pandemic pandemic, apparent, services muted readily our in hours we in We While that the

levels $XX meaningful the We As dissipates, inorganic growth highly of opportunity coming personal a EBITDA we growth foresee shortages to attractive is fragmented segment expected rate generate labor tuck-in the of impact billion care approach from organic quarters. us in a and disciplined the acquisitions. market run regarding long-term and optimistic billable remain a and our with presenting an to personal as care care personal step-up hours grow the is rapidly, our current over for that to

digital the the or RPM, acceleration base, emergency XXX,XXX health our nicely to help to there highlighted of home value-added more traditional room VRI's believe the solutions billion chronically made by Moving safely their two barriers through stays RPM patients. care. in of clients. opportunity also an hospital value market ModivCare's care. The continues the has total which the health VRI's monitoring of new as XX% to ModivCare, alternative the payers than patient or to top and agnostic today. states has monitoring the patients into preventing to the care RPM for By and possible We visits in-person of overlaps integrating only revenue supervised. XX% and RPM for pressures a VRI's removing patient tremendous and offering grow individuals, existing of acquisition best-in-class elderly at VRI penetrated device it is is to addressable is supports across system alleviate payer monitoring remote represents and is for $X.X health cross-selling Remote members team an the ill. in on while aging home pandemic for proactively XX/X of and home health data, be in to led remain platform a care centers,

in-home technology, VRI data have with appealing, revenue a expect to very while accelerate mid-teens counterparts experience. to we some financial customers. connected gauged EBITDA differentiate their productive is margin. also early bridge respective profile more more very care through and leveraging our even with gaps a our recurring services the care partnered with generating the opportunity By growth Our and to teams conversations robust have and analytics of VRI's The

from value brings the Moving our platform amassed industry which believe competition. by WellRyde expanding to industry-leading in technology. reducing access strongest our with complexity, apart we routing app, sets further have modernize us business, patients this transformation quarter rider/driver an technical national user-friendly built NEMT which that continued our the benefited Digital to we the network. brought conjunction we and transportation transportation to In our automate and from the and has acquisition, us

as to pricing Project or These streamlining and automation riders, real IVR, from benefit utilization continue initiatives refer transportation and more and we reduction of ineligible and footprint. of initiatives cost We IVA which effective of estate deployment workforce enhancements, of of centers, solutions our BPO management waste operational Storm. services, our management in contact other include surge our to overrides

of improved Project NEMT Storm initiatives have initiatives and been implemented, processes refer as to second Lightning. group of the continued optimize the opportunities automation We automation While fully such manual as Project processes. our improve additional routing there and transportation are to

additional the and to implementing expect this We next will we Lightning over realize Project year from the initiative benefits be implementation. following

for as in contracts have account the well recent our of retained teams both organization, digits very large our NEMT NEMT single growth our pleased commercial Looking this quarter. populations. contracts win date and positioned with see ride, to sales and in member the management a NEMT community's the been investments pipeline. are XXX% high to to health enables we've we at our the in care opportunities MCO most member some We're we of provide also to pleased Every vulnerable access

continuously important our and expand transportation to strive backdrop, relationships. we strengthen this Given provider

mission-driven and an people communities on and organization, improving the a role important are this. well-being play health our We in serve transportation focused we and of providers

are our their overall further In transportation of to voice and advisory a focused community-based on on we our this building regard, transportation working We experience listening acting hand-in-hand council the feedback ModivCare. established with to their our enhance transportation relationships. providers with providers have working and

We role for helping providers vibrant play transportation maintain network. our grateful are in a the integral us

delivered sensitive and team very initial excited culturally multiple internal meal national to by quarter are our we we which our sales tailored MCOs. And Moving nutritionally emerging our programs. delivery to members and MCO our under includes members meals this business, pipeline,

with will partnered a our that provider national have food the disrupt working issues. and to We offing by we believe country's delivery insecurity service technology-enabled food marketplace meal address our current innovative,

the position delivery future meal ModivCare of synergistic to our has a accelerated potential million that businesses in highly the believe to brought care. to five business a years. player us for group has believe relevant in and our complementary within together continue revenue be generate of we has health that We $XXX

close NEMT, patients' to all cross-care one remote patient approximately or reach US positions holistically, scale, rather Further, With providing than to gaps channel we last care. or and needs multiple X% of mail our own as while Our address holistic growth. with opportunities, well care mile with personal patients, our existing relationships of us a sustained the under of one-by-one. supportive to model and have and also the the million care, to we intend the the access for delivery and avenues potential population monitoring, overlapping umbrella, multitude own XX gives home us cross-selling

states and ranks, payers in remain analytics excellent our a and that to constantly one-stop-shop technology We our with resources. is by are being strengthening an evolving experience serve our and data enhanced position

our we developed validated ModivCare, We Recently strategy discussions also sustainable is engaged value our by integrated we drive care have supportive meaningful received that advisory will payer long-term have profitable integrated shareholders. supportive the at creating for client our growth and feedback partners in care been view pilot. board. value-based while Our believe in by from

the Lastly, health, to supportive nearly patients like hope come. our turn serve day it Financial results. the that, social in quarter look to on a care determinants to XX,XXX better Sampson, I'm Officer all. to quarters members, for lines embarking and progress review the to are incredibly I journey I growth financial who about front sharing our of to we're I'd our Heath? Heath forward deliver and team for care as on am addressing third for our over the an bringing our in every of Chief to the With integrated company excited we long-term access mission healing grateful equity

of of or third $XX financial On consolidated our share. million, recorded loss basis, $X.XX net quarter continued income operations quarter of of million, $X year-over-year The period. the share. increase third adjusted we of volume the diluted $XXX of with trip NEMT $XX quarter loss XXXX. Starting $XXX per to million, per net and revenue XXXX to results, prior primarily million, adjusted of $X.XX Dan. is a a we revenue a relative compared higher GAAP to year was third the $XXX Thanks diluted million had EBITDA or segment approximately in from in attributed million,

are trip up levels. compared pre-pandemic below XX% volumes roughly are While year, XX% still last trips approximately to

our fixed contracts, As regardless XX% the revenue which comparison, capitated of trip full-risk capitated to contracts, from discussed XX% assume are paid and derived revenue. is contracts, quarter, capitated XX% of responsibility where our month rebate are respective is Within primarily at-risk per a from manage last volume. or per In non-capitated and and full fee-for-service. costs approximately fee our reconciliation contracts we at-risk of or contracts, represented from non-risk total XX% member transportation of revenue our

we though the up compared to other related have and/or our a risk costs profit The volume, limit higher these driven expense includes activity. for million higher $XXX contracts. NEMT or our due higher revenue on operational contracts providers, Even increase as contracts either we that expense only for margin. related Service rebate center reconciliation associated the with trip was year. $XXX contact volume trip all to was in paying the trip risk prior to costs stated, service decreased our was margins volume higher volume. on have now based As increase direct in full center partially the million by contact Simply our and and revenue functions are at transportation which segment, for capitated provisions operations trip are reminder,

expected we this with happen. to reminder, our customers have this again, a designed. how are the As is contracts And

by cost volume lower of unit increases also the our offsetting we Additionally the and trip Even pandemic. improvement the trip are pandemic. experiencing increased margin though cost tight entire as of in supply before, discussed because throughout is costs prevalent driven or has unit partially our cost pandemic, because across transportation in during the increase providers' the experiencing per sector. we are which drivers, been The has unit transportation of

and the from Statistics, the increased has As echo broader point Bureau of more easier X.X% being a since disclosures continue Labor year industry said, the supply which driver demand various trips makes our supply. industry price That we tight and last public Uber our and consumer for transportation it and as index have data Lyft because for we recurring the are predictable model especially by network. to match digitize unique and to

Third million Adjusted is higher million period. quarter margin was to long-term compared due of $XX our service NEMT expectation expenses EBITDA NEMT margins EBITDA primarily to The XXXX mentioned decrease $XX quarter, were X% in X% in the adjusted prior third with the XX%. previously. of in to NEMT which the in line was

offset initiatives contracts. as we fourth in trip be to will expect full-risk continue maintain quarter expected comparable our adjusted increase third to expect platform in higher EBITDA modernization throughout going operational XX% efforts is forward quarter EBITDA we volumes to NEMT trip and fourth to XXXX EBITDA. While the to X% quarter and steadily, volume and margins the

As remain call automation Dan and Project modernization Project operations of Storm optimizing mentioned, now from on we the contact focused which processes, we and and transportation Lightning. center our

Storm lingering impact supply. been the by related savings Project COVID-XX of the and $XX of obscured have the While fully full initiatives labor we have the tight implemented million

However, taken. the specific actions have been

are are example, rider For reductions our XX% call for to and in will industry will place approaching voice improvements agents various approximately by consistently our process Interactive response account is year have estate happen. Ineligible standards. containment being initiatives also and end in outsourcing Real of have volume. centers and other X,XXX measured happened contact already continue place. and BPO

cost As clearly related these and the COVID go-forward structure. will we show come savings out of labor challenges, in more up our

automate continue to XXXX. will journey and Our into modernize

tasks. expect payments, changing automate processing for reservations, or processes drivers, more We canceling performing as and savings manual and claims other trips, we routing making digitize processing our non-value

Personal Turning segment. Care to our

an $XXX service EBITDA $X million quarter of million. in of Third and revenue which closed contributed quarter. CareFinders on the revenue We was September XX, amount immaterial

revenue has at mentioned for service the we XXXX. generates care limited annually. have strong Billable As roughly the caregiver remained of of CareFinders quarterly consistent pandemic of Difficulties because million exists. to relatively our recruitment the acquisition, throughout the with time hours combined personal demand $XXX that segment our ability

While third Pennsylvania the keep care our pre-pandemics quarter unemployment to for the margins is New remain prior $XX EBITDA had uptick in the in XXXX. these X% the consistent We cost EBITDA incentive a Jersey were in the below quarter in segment slower we challenges workers flat year. mandates adjusted the second third short-term on currently to levels. the for sequential have hours health in a as fourth tight fact personal Personal due in with expiration in New benefit quarters York, subdued Personal rein care Due the a that the care of the incentives to recruitment recruiting, adjusted to quarter hours and was of vaccine a the concentration temporarily don't Northeast, in quarter fourth compared holidays. million period billable expect care quarter this recruiting given as as well roll-off. the sequentially

synergies margins hours that range to normalize, from expect We we as into in next care quarter. and personal they stay are over normalized will realized our the cost expected fourth XX% below acquisitions. personal begin targeted year range to Still, the care our improve to the XX% integrating

we acquisition monitoring on of patient to immaterial was XX, so Turning the this our quarter. September our VRI for financially segment, also remote closed segment on

benefits about the strategic this from optimistic financial are transaction. We and

members, is cash and margins XX be XXXX. XXXX, contracts to mentioned, by VRI expect was tech-enabled cross-selling personal June, monitoring, flow for payable. range. strong million in valuable care, mid-XX% driven million operations an solution and part million. Revenue across meals and NEMT has operations year-to-date well ModivCare's with ended quarter base. remote months our cash the the combined When an in EBITDA a rebate Consolidated we increase recurring our in ideal transportation, growing the $XX long-term cash payer flow while the $XX reconciliation, mid-teens as XX generated of national As opportunity in year-to-date our previously revenue been from represents patient as third was in $XXX from for

continue these settle expect meaningful of accrue we quarter fourth we each to a While to quarter. payables the payables portion incremental during

and ModivCare million and quarter, which in our corporate million We on was mid of purposes, third X.X times $XXX pro for third at of issued with borrowings Net revolver. line the quarter cash pro debt is issued equivalents, at of million announced the of balance three position CareFinders financial forma expectation During cash three and repayment million full fund to CareFinders. an leverage September in our notes, and $XXX the are for X% of of acquisition of which reiterating undrawn this due Simplura net XX, senior Proceeds used committed the VRI the which leverage strong the from general VRI net $XXX the acquisition sheet issuance forma a was XXXX. to we $XXX a were million in times. fund the revolver, acquisitions in We ended included times leverage XXXX. and maintaining solid partially time remain $XXX with to September the acquisition of target

mid to invested capital of meaningful transactions accretion single earnings businesses to CapEx-light front very capital company, last high the to But digits. on been supportive these ModivCare's have into accelerated flow. over generate acquisitions years These with and care the two due National these VRI, nature long-term acquisitions has MedTrans. Simplura allocation, in powerful and delivered Turning transformation with growth returns revenue the also of cash active technology-enabled that M&A have CareFinders, the ModivCare a the on WellRyde,

Matrix's helping our programmatic strong are pipeline we evaluate primarily in opportunities. and was solutions impacted returns in segment, balance a robust decline to a sheet. and remain third on quarter Matrix and clinical focused revenue for is delivering shareholders in by on well primarily to new the to growth care to We trials, XX% COVID-related revenue. hold perform double-digit in segment, year-over-year to capital to which over a timing a clinical equity Revenue comprised which care investment, their employer of clinical acquisitions as the performance which health approach due of health, labs, assessments third well wins. Touching which continued volumes nationally, drive due clinical includes acquisition rollout XX.X% while vaccinations their as quarter, optimizing of of with a comprehensive meaningful disciplined during maintaining business continue faster-than-expected in decreased clinical growth in We

revenue investments to consolidated the third the compared consolidated third staffing of in recorded third basis, XXXX, a wins. EBITDA Matrix's revenue, due $XX of million, For $X adjusted million new lower as continued solutions the million of of XXXX. quarter $XXX million as compared of the in On to the ahead was for XXXX, quarter quarter $XX clinical clinical solution the well to Matrix

has planned Matrix, in encouraged with at comprehensive and We're to remains and by encouraged market the beyond our the the assessment profitability business. partner and to investment the opportunities near-term future aligned about been investments as headwinds realize Matrix. support impacted ultimately growth value ModivCare diversification, substantial health has While company diversified

growth concludes with expect previous digits monitoring operating follows: margins NEMT margins mid-XX% for the questions. adjusted last statements, revenue operator with and we with in call XXXX remain Consistent that, This the X% prepared EBITDA growth EBITDA and EBITDA to and XX% high With revenue mid-teens provide in year full February. the objectives guidance during between between adjusted our remarks. care our our long-term adjusted of quarter, growth please in open mid-single-digits call XXXX we in as year-end XX%; as the single margins XX%; Lastly, revenue remote personal results range. patient the in with mentioned

you. be conducting session. question-and-answer Thank a Thank We’ll now you. [Operator Instructions]

from with comes question. Our Securities. CJS first Please question Bob with your Labick proceed

information, questions of lot detail Thanks and for a Good the morning. thanks this my all morning. taking for

You’re welcome, Bob.

sequentially NEMT, that. from an maybe you profitability a start information I good things how and the QX is And So, and in levels when utilization of talk to then year-over-year trying returns like Could and utilization QX contra and how about want that the the us revenue steady run a you on with trended impacts find quarter? obviously term, for utilization gave how margins in to bit to little to still rate normal better for also, a revenues. lack much quarter some

Hey.

Bob. So, Dan. This is

any substantive on and say, I piece, I thing the the is up so incrementally ticking So and transportation what wasn't utilization -- I swings. think there would

think been to enduring for the what related is is, shortages. I part driver most we've

trips, cost that of are plays down of we've as increases. believe our is all is we And XX% that driver gets as network going I there unit in the now. The cost And unit news shortages as The is, rerouting network seen so unit of some we that's traditionally that again it. got represent will and a number. temporal; this, drive that on role demand, a terms think if And at on number look healthy a increases, is large result, cost. XX% we've high good the that and the think we as and opportunity initiative supply

confident that the the that seen labor a now that that going that comes increases also a in have I as in $XXX things workforce. thinking on point The back are play with our to unit out and right themselves, cost will that of as I'd as be was got Lightning control. decreasing business, though rolling, network Project I that on And and our are we've strong costs. would I on other and also a will talked also if focused about I building network something million. we thing initiative kinds target is about believe that we've those role health and into are resolve Storm the would pretty Project our describe rocking we've I'm like And back

other the So that's to where you I am that one, on answer Heath? one. want Do

Yes. Yeah.

about first give also some less then it pre-pandemic. expect point quarter I XX% So our for said, higher. slope in we're the we're utilization, to quarter Since just actually last XX% in fourth high context, quarter this in it's been from been the pretty steady, than increase steady. we but pretty quarter has that about And we script put to

QX So way did same the that for think as and slope into I probably will it QX. stay QX,

manageable unit comments So top Dan's cost. around of on utilization trip hopefully, and volume but that's

Got it.

of those I Both super is Okay. us again helpful. I And that. appreciate which think, great. lot a gave then, you

You retained sense on your the give you new you're bunch of us contracts? more. there contracts said of you've all bidding and market a out just potential the a opportunity with maybe Can ahead right you now and

mean, I Yes. say many to I I think in mean, contracts. would in frothy. pull respects it's I a these we're win position

an payer our the lot presence of company better. do is better best-in-class that pretty only our as And think on position evolution a account the the of an as payer-based a in large us has put pretty significant a also technology you now. and roll it confident in RFPs of We've can don't client And state the we're company these there. exceptional. we've the XX% gotten and systems actively will our with our excellent our have we really technology a We've out were to and that part to of really out business win a they relationships is national and And And the business payers in I management experience expectations make mention our historically and isn't I team. of We've of There effort not I'm in to and that advising many in hospital things I we of would platform of the built around some that things consists we're know need a are say way that platform. you states if provider member are services. got got big Bob of think mention, to I board involved advisory them.

think we're well-positioned. really -- So we're I

I to And the would it's those We magnitude would gone what again payer is with very on of well-positioned those many you I haven't is material of in on say. tell think but record we're states them. relationships what order and win I

don't you add? I would anything know So Heath else

next The on No that in this be part out the for of for complete larger that business able on the to right update year. you -- there know and guys latter quarter. come latter ones know -- and now. XXXX those those hopefully mid part But we'll we'll will are of we'll

And providers -- done things so of also our say upper, look upper out in I look country. up. our is a that's but had if necessary mean Xs -- embarrassed in evil -- important with mentioned that's on we of our before evolve that company out like the better doing how there's from lack back provide together historically to a We've involved And transportation our this think at I I that's it think how experience they're never to we're will of a at I as members underscore and I'd the of the recently there you I experience description. say member week going little feedback. like get I'm Bob. significant. member the XX% the that and advisory and upper, together part a next going then be leadership executive and transportation we're a riding in ELT every all we in with how actively with our that the I of another to them. this scores that that's transportation we're also council. kind put around spending the I collectively is you point Xs would would if statistics our treated relationships fact experience but for be provider morning I at also we're with off-site it to member sum something can't We mean country brought nine team and which of between end

that Qualtrics where getting getting -- examples where we're got fact real-time we're too. -- transportation already providers feedback in product feedback. called this as XXX We we're almost also a of launched we've our from many week XXX And as

We're we're think focused end this transportation guess I long So from area that launching with -- providers. I particularly transportation giving be the business networks. enhanced how on playbook relationship out I transportation the at with provider and being of payers. to I We're know them the we've our in really way successful. guess fact December building That is of the in minority bringing also providers had community-based Bob just the goes a day, where in Illinois kind significantly Transportation town-and-down we're University on owners

that of and well stuff future. just So into I Bob the well great positions exceptionally on here going now I a we've got lot think us

back for great. superb. follow-up questions. Okay, you queue That's very thank in much. I'll Well jump

Of course.

Thank you.

question with with Tanquilut proceed question. from your comes next Jefferies. Our Please Brian

Hey guys. I first for good morning you… guess

Brian. Hi

I QX about kind of you expectations. know talked

clarifications color some one? there, And about? that and can do guidance any level takes settlement thinking then, QX you in the how effectively kind just that think Just puts payable share out with be like of fall QX on of QX, for us the you terms settlements payable in like, the any we in Difficulty] [Technical expectation should

Yeah.

is those NEMT expected disclose. we be from coming again fairly So VRI acquisitions for on then that with I we disclosed EBITDA said are care a for other the on from like flat PTMs perspective performing as proxy is the good it And and to perspective as and personal an those. And going call. the are an that how

And what about few the for high-XXs the we've be And why year. being to we'll have payables personal Again high-Xs, balance. within that and through large well well. said So then, of of but a segments the we're in of we consistency consistent EBITDA the a as quarters continues talk in. there's the where those a feel trip utilization probably range expect big next good and makeup the, those chunk that that as before, on that's with quarter. depressed -- as with to continue pay do come side payables those customers about really and care the build chunk that we with next to all to volume said, is there That --

these So made our position, similar when deals. I cash about we feel really good to

helpful. that's hopefully So

focused terms you they obviously higher you out economic set but about there, rates as how the able pass think structure on mean are -- is incentives Dan, and is drive that just being any your your your us able or you to you discussions think maybe color terms personal them effectively? on of just of all the about help the with for you up of Yeah. is. relationship I are through, subcontractors how called in in can rate as or to works. everyone's labor through shaping Maybe know cost share to so It you're having it supply? that? give I -- manage how driver us we think you shortages. But Thank with I them to think with transporting it. And what and care my much the issues of can guess that. a we follow-up labor do to if And

Yeah.

just well. I a saw I'll talk there's, Heath some rebounded let XXX,XXX last other this things more the of October. of But jobs I So about the of listen think couple month aspects as in growth And jobs kind the of here.

listen that the plays role a Brian. of in we people type recruit So huge

we're are position how you how network? very extend we can a credit that, a is has us We we get also we -- have lines result that, we again, -- all in this position relationship shortages us But good community-based. in for had of them people will and get so get know to we thinking labor rebound and done for real. mean I in were -- we to that. some think that driver more the feel the believe specific Nashville drivers restaurants think we here have on cars, automobiles I normalized -- so again. But that, there's about COVID that with and so moreover, your things for bigger do as -- we fewer in know I so will have with we And a if very that And available seen we regarding them their will, it's will we our think type requirements get us. shed historically will picture solidified, and help Amazon you've about, think do business and purchasing light that And the requirements. an is it of get cars

-- marketplace we're think forward. that well? having But is of a University a we're be be just like in so a going something be able And Again, so, is with communities - answers we select tighter Brian. Transportation happens We things to a how COVID that do our And with I providers we we and and believe we think to happen guarantee as partnership for that's to. going will of in the something company one there's going where Again, groundbreaking the like, here committed I so with this changed And is the this minority the we're build game think, out in to the Brian. a out grow, going vision we're as we're to this significantly no And if -- organization. going pretty community-based figuring build transportation businesses and build don't the other future. of what's workforce. want to group

I'll that, with how it So turn the to on work. pass-throughs Heath over

Yeah.

so that a for perspective, are fair transportation at to those right to from was up a I I've X.X% CPI the -- not farther not So with to now causes cost issue said, surge should; a/k/a transportation is for more trips or the that a they we higher. expensive going will costs issue those to and than perspective a expected be rate. be That's rate go provider drive people though. that's experiencing shortage are the partner pricing. is have to maybe The last-minute

again on-demand And do as have These inefficient Dan and shortages trips. go this, into the So are partnership especially mentioned forward broader plan. and to also up. not -- we then time can costs we because we that to these important causing this move are

So get moving. we're more when you and but rate where consistent that that have really that's profitable there's that and volume going make provider is time really now, to sure transportation we more higher what's volume they a to plan, know increase,

this the though is higher good happen even to strong make again should we're these come where feel spot. and our COVID there and ensure be and So out healthy, with of And in to processes we're margins with be as have be really transportation new wage model they and we'll that moving able to we we that digitized, our it place because we making. are really expect in a providers

our Yeah. to XX% And now just Brian another mean related example should under of reroutes. XXX% of this That I is is driver business number is all shortages. That right XX%. be probably reroutes.

work. of just also about Also can costs multiload examples drive are that until to very recently you as things these so been think drive haven't And we able well.

under example into much people So we're COVID-related which and back we what as be where you forward. seeing self-correcting of items Again, our particularly be here. where labor going particularly evolve are again doing that's as partnership-based model force and another -- we are come these should should that going more given the is to continue start to

me it. then question Got And Dan. last from

maybe the can incrementally from talked state the You so food and you food about share us partnering payers RPM, any that that. strategy just with? your and of And color kind like business partners you're your on reception just curious that you've with gotten on

Uber than the it has board another of large vulnerable Keep on. remote out includes our very those And the it patient conversations national piloted payers. teammates our X% out a Brian, two national drive populations. good and I to includes massive I of even we really the solutions I got seen is And there got know need unmet population It's obviously, advisory about care payers. most have a US going with and elegant it. own to we're company food; mind XX We've piloted And personal there don't where these mean And we've solution members. level got really Eats. more with I of obviously digital that and it concentration We've we serve in with We've partner. it's into there's where and continue one think Yeah. commented that -- we're good has client elegant our positioned. feel feel around in and patient and that transportation, drive we and or million there's populations that monitoring. if about

with it the Medicare so that see are offering that XX%. position. excellent are we doubled Advantage We've five in we're plans an Six expect Well last payers. the think got the the relationships our those phenomenal of we represent top you has of XX% market, Advantage food double again. Medicare number represent XX% of So expansion. to just and has of -- payers year

superior a an We X% have we're with technology well had the positioned. or Brian, US that's relationship we think extended that really a superior of So has XX packaging, that product with superior a platform has members just really, population. company million

guys Thanks Awesome.

you. Thank

Thank you.

with Street question with next from Markets. your proceed comes Please Brian questions. Our O'Neil Lake Capital

good segments in you I other those about all Good morning. in the Dan, and Medicare thoughtful extend might -- opportunity business. a other MA from Advantage and you're a -- I'm sorry little to That's talking bit follow-ups. the a just payers the MA, have guys the discussion peers. the food hoping areas. but I'm Brooks traction whether gaining O'Neil, with M&A the appreciate my answers color I to questions you were of couple

Yes.

-- unequivocally Medicare Brooks $XX of National -- the why say this of would million you yes. we I is I Advantage know the So, reasons MedTrans I represented is answer mean one know bought business. it

facto the the order plans of kind so, MA that number compete. to a benefit is from for business again. the there -- these doubled is ago dejure this no of to de be the numbers, start again in offering transportation the moving it's going that of if a from And part to supplemental is NEMT offering and year you plans are at looking becoming doubled and And

already and in Advantage the good maybe I'll little the really So, about let business percent bit with and him a his us is that. about that's really, there. room Medicare feel really, of talk opportunities Jason the

Thanks Dan. Yes.

our business today. XX% business MA is of about So, approximately

by have as a We continues continues kind plans. top estimations, be to patient remote of in supplemental -- those XX monitoring nine approximately it's -- benefit. monitoring it of added XX And some as a have supplemental our patient benefit MA remote today the the

the to plans opportunities expanding benefits. MA those excited we're so, other And about related future

it space, what would about is UnitedHealthcare several care personal the months the two number at at is UnitedHealthcare ago personal food. I here four talked just number members. look announcement MA is the three and we I've you one and are things times if say provide again The care that look announcement. Brooks, is -- then, our transportation, referenced to about need Number three And

is So, you won't. us if guarantee pretty you direction get can you throwback these things much the -- certain lot pretty But but United's much that of be can comment going. this moves, Brooks, that's A a making it. there that -- are

I personal as some -- much the as the is have. of It XX% the these populations and care are patient we to -- the is these expensive On business disproportionately duals. and be you of could eligibles business dual weighted as care personal people just mean side Brooks are know most

don't represent And care cost we just is transportation improve you So that's massive are so to company way And market lead And where massive -- there, and the from -- and again, XX% remote if the Medicare lines. the be the care that the embedded really thinking and to start well include on of going represent future of was to in recently of and will equity keep in who better stood the XX% there out Advantage role our the mind and so out the number quality then Brooks. a the there care is Brooks approach. positioned MA will of CMS a there likely there food of positioned are you integrating models of to Brooks, about the on top this. personal payer not things Centers that interest health is One, moving. just couple curve for of several right us. Innovation bend work. again, I a now cost And the and two, out all just things we just focus of care of strategy came are saw to CMS opportunity approach whole-person and will these significant and population. more supportive of payers, continue business, on total a from those in our play monitoring standpoint play And revenue six -- five know side

when in this such total in years valuable have the partnerships. to of And is we addressable there This been about for XX we've is built-in position why railroad already we forward. the you the a channel better company also we a So, as outcomes change down. again, a part than what's asset that's think we're isn't home. tracks health move putting market And are that

and say, the let's go better Absolutely. related up following Medicaid to not Would and there economics term? you in to are side for lack the or just TAM call a trying economics but the base, it to MA customer equal the they deep, too are better the of

at you just I look and Brooks in dollars at – look – mean, just are Well, that you Medicare that you tell the everything. Advantage mean, should you I

Right.

a either some so comparable little in yes, or they're think better. I instances And

more. Cool. – I All color. noticed Appreciate right. One the Yeah.

is really – this before it – you stuff. data got good Brooks Interesting

length On the on just remote of service vitals two And on it's years. curves average the X.X piece, the years. the is monitoring, record monitoring for

personal side, a that those think think the care average just standpoint build from reoccurring And to for Brooks. four Jason I – continues on we then time just the is patients XXX,XXX – stack patient to around and that on the So about just revenue business years. care continues a

the versus side, how like supportive – episodic and So with far ultimately the patients more and much just again, care extensive. care these management the just about are is relationships valuable how patient thinking more have we because side clinical

think, Yeah. No, great. it's I

I time it's think all good. amazingly and you're right at exciting and the right think, place in it's I the

the I was assume, could a the than G&A $XX – any this little million and offer I this stock commentary related was But, to it's was acquisitions kind Heath, that's higher there I of or some quarter. whatnot. think one-time quarter? is line modeling you just color curious noticed I bit So, on of I

that that of is that of $XX acquisition acquisitions, number. Yeah, chunk we made a in costs the million big

Yeah.

in technology that other The around doing we're expected. investment as build but is,

Appreciate much, so the color. Thanks Okay. Perfect. all guys.

Thank, Brooks.

Thank you.

with from comes Research. question Barrington next Mike Petusky Our

guys. few Hey, questions. good morning, A

morning. Good

sequential that me. from QX QX? The versus to QX, clear that that a was ago wasn't from year volume or sequential it was in trip Was Heath, XX% increase utilization? or in

a Versus ago. year

you. Got

Okay.

we to levels. pre-pandemic be with then, have And XX% go – to

it, Yeah, got that part I it. of

Okay. Excellent.

sort a So Dan, mean for big you you of could obviously set guys. delivery for meal out vision what

this have sort break be I quarters, some do in expect so out sort mean, Just I either of, in to revenue material out? of mean, of break enough I plays will initial in the QX how XXXX? you it to or sense meal out

don't I think.

out. would to next it's I be don't that, So we I say months months the to X material break it enough think won't going over XX

just just but so I don't I – just focus, but If couldn't that's obviously, about We're the what going see get reimbursement about we'll million it, to I $X.XX, it we be to give talk you partners don't we'll a have we'll concern to continue to be I about see work – one continue going share talk to have who hard right And and don't. is we why but there meals to a reason who I it. mean, exactly, talk of any about reason. it. to meal We're might to the in week. able some have to really level at mind.

to feel to – again, the like very relates going well relates and be that's Brooks. as and positioned there'll around be a it it process as Now quality we're of happen it around think it's going I to we technology to – particularly But not very, relationships food. tomorrow, that's

it's not more Yeah. it's a with process or within a partner have state that be going though, sell timing material months. MCO The when to the sale well. on specific you And you into care in get Mike, actually on, contract six an as a state next a the the little why specific with, managers to

just very cycle personal VRI takes and care within sales So and time. to similar the that

it, you there pretty get On side the that you in and of sticky. get when other you're

the about though of have even the we with talked length the time patient. -- Dan So and

a when to when you you months, and quickly So, even important we talk really get point care it's after one though it's again, point cross-selling. six think revenue. about managers guys months, it's that. ramp sticky going other and XX around And this is And

made personal and we we when monitoring care care about in this don't manager acquisitions. is with the these manager. So and haven't we that vitals we baked care on are talked food remote The and same have meeting on

-- RFPs come actually care on So manager. list. sell up, we the that And it one when they into the have can they

So care VRI, matching us the matching with process is in that this for food really with ability that new powerful. with personal sales

Brooks. for it. to call Kidding. one want It's below Got thing I Brooks call one did the but Kidding And operator make for belt. comment. guys really the is to me, just Brian, hitting you to Brooks,

Mike, -- I corrected. man. My got was slapped was hand I

So All you. couple right. Kidding, A kidding. more. Love far Brooks. --

On all we're you the the of know people about tough -- pro forma now. reminded obviously environment Obviously, the business, given in personal current fair $XXX assessment million. right and now that all headwinds that $XXX that mean run I more where at that there? is sort care and rest? guys If million I the is looking a like rate, business mean $XXX we a is million, the somewhere is revenue of

Yeah.

this it's QX. the on, it slope Dan said, gap, And COVID, we think flat you of right know from right? anywhere to of there's about XX%. demand come I as then -- a really -- COVID we pretty out the out So hard to you're the think what's coming As XX% way is now, right? a demand So know right is

timing that. it's So

than happen that to QX, Our it going a the meet said. to of need of we demand. a what's in lot coming in from pent-up out because could COVID, long-term is But we've the perspective, QX quoted be growth the higher this growth

thing -- And other mean kidding. say Mike, it Yeah. thing other I -- the -- Brooks the would I just about

opportunity recruiting it, mean talk I is I recruiting this -- this and the especially hard thing say like there, pandemic. other supercharge XX% we is like a business business. retention Mike side. demand out this we over and on of about would demand this We is in And But business there. that. think of so bananas how the The there's actually as is really about massive XX% is we're about is The I about how a come thinking XX%. terms to do

end a but, correction that the the XX% think almost market we there'll it's sight on based certainly, demand, like be course no in so to Mike. And there's XX% depending to on

share. a one And in we're or players. then also, still We're states relatively though even in, that largest our from of two small we're market percentage the on that

So Pennsylvania, that's -- New there in right? York,

New Jersey.

New Jersey.

Connecticut.

care Yeah, markets largest which a are for some of personal whole. the as

than echoing we we Dan's come better just do out in So point the this lot and of there's recruiting business. on past, we have a upside even when in

argument that be the business, billion Yeah. I an in to right mean you just can were could now. $X a we're in alone $X markets make the billion markets

to results? can question in quick a just the I And of are quarterly going we should volatile on I mean Matrix, a just forward on part schizophrenic. results Because related year there basis about of mean which Great. talk sort about spike from there profitability sort of was huge a extraordinarily more COVID man, talk results the essentially the perspective it. of you lot -- Can expect expectations my and are there? you muted last a

wellness from because Yean. piece some number -- with to assessment hired there, clinical on being piece, I you company and we're their were one, No, the who's gotten a starting in a that. from is visits” is there Officer that. to assessment XX% health business Operating back. agree what done do But And piece, now a had of Chief trials growing on all running seeing somebody through come the they've It's was almost right think a from “in-home the telemedicine. I -- respects again.

that. I think about good she's I doing feel a terrific so job

issue. Number one. pipeline made a areas And two opportunities they with trials, The full. trials the investments. of opportunity some saw and in that's of And fact So timing clinical an is the the pipeline challenge clinical it's big number in institutionally going I kind of future non-COVID-related, future. clinical speaking less the a is them that the we know centered the to think which you model. XX% care, like in And business just of tells are moving trials also really is where they of

these trials, again, positioned. they're in words nurse clinical now. other in extremely the is -- right practitioners helping the wave home these So they're just And having well do

in this So little of good would is I bit very feel ultimately describe don't made. EBITDA going about I the out say, And yes XXXX fall a I what I as been setback. it's transitory. where investments a to they've would but know

I happen form. knew should that in the also some or think so COVID ran going a and to continue down knew But trough kind you assessment shape faster investments be in were hit than think clinical we of a they steady. of trials the was I making areas anticipated the business we we clinical we testing, to right

clinical more So fruit for clinical the that kind we'll bear that's, I they're if trials. think after trials to -- just And hit I visibility say. think some they that and waiting but what on time. because the -- the But of have would more hit we'll quarter, have we're for investments made I much fourth the to quite will they've

large quarter their -- is success why I have on space. that, they they very And currently small big the relatively opportunity the think in clinical quarters deliver there's trials Yes. that's companies a then add next on delivering with critical. that of so these in clinical I'll contracts trials, couple around

Thank right. All Really much, so guys. it. you appreciate

Thank Yeah. you, Mike.

Thank are at back I Dan the floor to would you. There this no for questions over to comments. further closing time. like Greenleaf, turn any

care what to a you better And I be in and any the come. of regardless what able way we're been the company think has very little again and of in is this where here. let's amidst together. feel the because didn't the of my fit and is, and headed, never business a vision. hey level business think to just cash because pandemic positioned bit get food And of transportation able yet row in through it. right where at all a didn't on consensus opportunity we've want collect are where of I'm the relative say change building or to we cash I NEMT of But company and very we like or been do clear. quite how end clarity shy. and off best went anybody I quarters beat XXX% front about monitoring things and extraordinary a incredible of now -- those in be year. I feel and or was where anybody from COVID, some executing it script personal a business, -- because I food like, just to But during ahead we'll at a the whether the we a care we're personal going going greater this lose don't I And are XXXX, just been couple was listen we things there good just look always We we're not frankly, -- -- to I'm in of proud It's we we and Yes. we've position seven in things. remote realized look and would deployed here this was. us. by got maybe go great feel to have didn't do I sight to we've many One respects, lot robotic

I we know again, -- best fundamentally guys the have so believe come. -- yet me you to And heard is and

We Group, follow Relations interested and are I safe forward this back participating financial thank wonderful morning. for you a a you to result. Please our Investor out up release that we quarter our reach all The scheduling want to to have firm look to reporting with XXXX on in call. Stay in So day. when fourth call if our Equity you February

today's concludes conference. This

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