Premier (PINC) 22 Aug 232023 Q4 Earnings call transcript

Good morning, and welcome to Premier's Fiscal Fourth Quarter and Full-Year Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Ben Krasinski, Senior Director, Investor Relations. Please go ahead.

to XXXX welcome full-year quarter and call. conference you, Premier's fourth fiscal and Thank

morning Alkire, Financial are CEO; this speakers Our Mike McKasson, Chief and Premier's our Administrative and Officer. Craig and President

results materially discussed we I want file speak the no Factors those today be differ filings as in advised SEC investors.premierinc.com. and our of results obligation accompanying them. the with Before statements we could These section slides and forward-looking certain get to our including future everyone forward-looking Form our from earnings supplemental today. are that update call discussed affect conference remarks Please today, undertake that to of XX-K, soon. in that the contain remind statements, expect are which this Investors management's release and our available actual might at started, to website we

safe financial appendix where non-GAAP measures adjusted risk X-K, non-GAAP flow encourage slides these and as to free of our factor you to to the refer harbor will cash to evaluate financial to Also, this detailed in earnings accompanying business. disclosures. of or measures, our and the presentation in supplemental soon. which release, in we are our Form we included such Reconciliations earnings review GAAP to financial We expect SEC other appropriate, the furnish measures

I over will Mike now turn call the Alkire. to

ongoing quarter you fiscal evaluation our and to progress morning, thank Good us our update in Ben. you, our value Thank and for alternatives strategic you year highlight and joining we fourth stockholders. unlock today. everyone, for of Today, XXXX our on will

XX% care EBITDA agility our total million adjusted team EBITDA fluid to fiscal the health that an share that people These billion, of to cash year. and this environment. and $XXX.X in pleased am dedication million $XXX.X reflect in $X.X our equated net incredibly flow results achieved of of revenue free I First, adjusted of

are strategies confident Premier we effectively team, our costs better, a and ability the deliver to smarter care. to manage enabled in As of our through technology execution grow continued health

Further, with institutional member with pleased the the both SaaS retention a XX% or renewal are We strength this of of we have surveyed rate of rate network and XX% technology they trusted evidence overwhelming with XX% relationship the year long-term better our continued future in members. with the their GPO C-suite by positioned our an months members Premier our for are believe side. recent

for value that our strategic intention Board We potential are announcement non-health and stakeholders. high-return $XXX the to OMNIA in The approximately care recent underlying recent of stockholders. one sale forward or alternatives to businesses moving for of demonstrates with unlock the leveraged reinvested when in value solutions many can million evaluating cash, operations to can premier on that be Partners our team create of are value management return value to significant that GPO our

our With stakeholders. and potential unlock the other outside evaluate our team to continue of for value our assistance to management advisers, actions Board

in isn't progress laser-focused AI-enabled of making For nice care solutions. transformative on Premier in lead proud market health just made to and enabling have, have us, the strides year a continues technology future. technology the care incredibly are we this I'm the and to health we

a and the pandemic suppliers process payments on-time AI-enabling arise. We when Remitra. but next of to unlocking for with are ensuring payments the matter through purchasing for may isn't entire capital providers if, working It

of XX% chain the So we with have accuracy. technology enabled supply predictability shortages

ensure to are domestic and nearshore down on resiliency. We in doubling manufacturing investments

value millions to coding dollars help decisions them of have workflow we been that of For through thousands of hundreds AI-enabling in are of now expanding years, the of and and realize accurate smarter clinicians documentation. offering

and also disrupting process. prior manual timely and are authorization the automating completely We

the in data an end-to-end set vast to signed pharmaceutical one our process. upstream world. optimize the business process XX I'm sciences innovation incredibly companies the largest clinical network our Lastly, with QX, that clinical and applied pleased now in the used in to trial comprehensive trials lengthy are of being top

it disasters, this ground I to connection communities. pause health team our These of make for and turn want hurricanes. and the of over their heartbeat their to serve is their disciplined respond in XX/X natural of Craig, serve the to recognize and to the both members, their members many providers, true tireless boots are ensure year, and Premier purpose. to premier This as available individuals communities. the resources themselves execution their on and I human-made care Before our during to including especially terms our have compassionate work the employees who for wildfires

innovation and that makes ever me of incredibly I've that performance proud this our than year seen Premier values that team core comes demonstrated two are recognizes excited change for Passion of The before. our great with future company. for the more opportunity and

over operational the turn for our call a financial now of discussion and performance. Craig McKasson will to I

Mike. Thanks,

of revenue an prior For XXXX the and Services revenue of segment decrease total of a which with Chain results of year. same X%. year Performance compared Supply net fourth the million, were and was period of $XXX.X a revenue our compared flat as ago, $XXX.X of quarter $XXX.X Services X% increase million, to segment million, the

factors. our the further was of ago net the quarter, This year our member X% in by of administrative were programs. non-acute and volumes These Supply through and Services of primarily member care existing fees both due to segment, growth revenue purchasing recovery or from acute penetration impacted increases In Chain spend. driven following increased by continuum partially

demand and First, the and PPE. of staffing or equipment pricing personal including pharmacy, protective continued categories, across certain normalization

variation impact fee in an certain blended third, share dynamics, systems. in affecting patient to of trends including purchasing. And increase regional aggregate utilization number market member from continued of member consolidation Second, current due the health the

continued and Within demand the inflation, and food volume the category of mentioned. partially the in impact strong the which GPO normalization other driven produced both our of by quarter care another across of and pricing previously of was continuum increases acute categories portfolios, offset by primarily growth, consecutive

as expand look expand supply from the our enablement with penetrate our purchasing drive AscenDrive, we SURPASS category purchased categories, product and and suppliers believe technology largely untapped have members to our through forward, to a modernize including of new portfolio and and business into continue we adoption to and further our payments. care conductive significant analytics technology we services high we contract spend to programs, of broaden As spend continue GPO leveraging still compliance the that leveraging health AI chain purchasing by and opportunity

continue We returning levels of to which members member market business, period. believe although year may lower work the for the persist which sourcing from other revenue are In levels, ago to through supply quarter, certain inventory more normalized levels, to next and and customers' pricing supply quarters. declined excess current and our products, in some year due demand contributed inventory direct continued few members products excess the to

of levels Through COVID-XX the and PPE fiscal with customers, business, during ongoing associated the helping and XXXX, inventory the from were our pandemic. we able management members this items heightened critical to down our reduce during significantly other other secure

logistics to levels. generally our costs returned pre-pandemic addition, more normalized In have

our gown to On our initial in the initiative, launch the exam beginning in quarter some planning glove domestic are to fiscal see front, and initiative XXXX. second isolation of manufacturing we are we uptake

markets in compared due adjacent In including $XXX to the last year's revenue Health. fourth decision consulting in quarter, with to adjacent our Compared X%, primarily our Performance growth and grew Contigo Services and revenue. businesses Services segment, clinical million our year-over-year, growth Performance markets of in million year, businesses, services to combined prior increased than more including XXXX revenue $XXX.X fiscal XX% X% support, our

our to to businesses, Within applied innovation. to link sciences our health systems and adjacent of industry XX% help with differentiation reflecting expedite ability had another over growth strong the set unique revenue data research-ready markets year

As forward, this potential about we future the we remain look growth for business. excited

expansion also for as $XX.X stable Our line continue ramp, strong up future this Contigo particularly expectations scale is growth. business original profitability, and the Health in fiscal goodwill lagging million. creating to in and resulting top a our a the of we impairment exhibited stand foundation progress, XXXX, program, Despite in growth

allow about of very out-of-network programs employee growth benefit large comprehensive contracts locations. million In believe XXX,XXX continue X.X with employers and remain leveraging pricing than will providing claims growth we and We transparent system its provide Health capabilities. and clear, be years the Contigo excellence ahead, to deliver To we existing will management to with to center in also health excited across our us and months this management [Indiscernible] prospects. long-term our more area, expand all while TPA functional while employers, each other

was to compared offset fees revenue by increase our was higher prior the and as logistics to to an was the in EBITDA. the increase scalability, in the GAAP markets to This period. due Services costs of adjusted income adjusted growth benefit $XX.X which quarter. Supply year direct to our adjusted continue quarter-over-quarter in EBITDA, primarily Chain Supply Adjusted year in increased Turning Chain expenses EBITDA net due The due million administrative partially business, Services decline Performance mainly growth to sourcing period, in invest we from in was net a Services profitability. adjacent businesses. in mainly X% prior for lower and EBITDA

$XXX.X operations ago impacted investment. sheet result compared the flow a million we increased year. members. the each share and by fiscal year dividend primarily sourcing lowered balance prior by earnings with net in higher adjusted Compared the that inventory XXXX and XX%, year cash direct business, From a adjusted and a with increased full-year same revenue minority flat, EBITDA. for was quarter, our cash a were as of income fiscal impacted primarily share within offset items per net was paid This from to the items from as These of liquidity adjusted perspective, current

due XXXX same fiscal decrease The EBITDA, and carefully continue expenditures. with manage capital increase approximately a cash property Free for $XXX.X overall equipment purchases for period as of million adjusted a compared was million to to the flow $XXX.X primarily of we or year in was XX% ago.

the From an and cash our from XX% our was continue for anticipated. benefit we XXXX perspective, our subsidiary income to a fiscal tax which XX%, From tax quarter XXXX in fiscal reorganization. XX% restructuring rate to we XXXX range perspective, rate August was second tax effective

result and X%. consistent to a between cash As is the fiscal estimated expectations, to XXXX tax be X% rate with our for

of from GPO X% be we a the tax cash impact our XXXX, excluding to a in cash tax in fiscal in We non-health of be XX% operations, tax will to of XX% tax XX% our of effective on be which fiscal range the to onetime the paid In subject proceeds X% rate sale to anticipate rate. range care rate to our expect XXXX.

outstanding balance XXXX, and quarter the on with August XXXX. cash ended repaid million full received Cash million the revolving an and GPO in of our as five-year of of billion We $X which balance our $XX.X was in the credit approximately as XX, $XXX sale $XXX of with compared $XX.X close XX, outstanding equivalents million facility, upon million totaled June non-health cash of from operations. the July the of care June

We a true-up we of will cash escrow collect year. remaining of to fiscal in later accordance purchase cash from the expect agreement proceeds this $XXX additional million, the completion and upon continue with

With this alternatives. respect to cash we complete balance on strategic our remaining of our maintain plan the to cash we proceeds, currently while evaluation sheet,

of However, capital highest share the proceeds, and that we opportunities repurchase. returning plan the use via evaluate in stockholders to to for the the reinvestment business, value including of return acquisitions eventual the enhance business

share a million. dividend dividends declared September XXXX, to XX, fiscal of XXXX, stockholders record on paid X. of we payable of $XXX.X Board of stockholders to as totaling quarterly Recently, During per Directors cash $X.XX our September

in guidance will given fiscal announced, time. alternatives, ongoing team's Nevertheless, high-level this providing management evaluation provide on overall the I at XXXX XXXX. like outlook strategic potential discuss not Board our market the previously how business are trends to likely fiscal seeing our we or As we business are impact in and formal other and persistent some perspectives our would of the

segment. expect health life in over In to our XX% with businesses, science mid- we and markets while contribute presence will on suppliers, growth to to XXXX, anticipate provider adjacent fiscal adjacent in segment, expanding care continue growth payers. which our companies, we In Performance performance focus also our Services Services we high-single-digit in our employers revenue the markets capabilities, Performance our improvement

I future on and placed significant macro of consolidation business purchasing the to competitive new As is impacted earlier, it systems environment health care and state from pressure by our win including our health business. dynamics, an market of provider of overall continues be always to mentioned and the the current members, retain many the and Group cost member market impact

of high-single-digit to the range continuum gross in and business with the and care experience growing impact any acute in the growth side Overall, in growing mid-single-digit we expect low share. business GPO range prior related continue fee member our to administrative to of will to the side fees changes the

expect member an given However, increasing resulting the previously would mid XXXX, we fee from aggregate to mentioned the to in the high range be across during XX% our the XX% share low GPO share in current market fee there dynamics, fiscal increase all range. in to members

business. Turning to our sourcing direct

impact expect products levels, excess revenue we excess of certain growth member inventory Given the ongoing XXXX. in supply market in nominal fiscal and

achieve As previously cost incentive profitability in fiscal expectations. performance discussed, and to lower implemented our we plan help savings a had achievement XXXX

growth resources areas the and While us benefit will to to savings of cost our the business we plan value some in higher to position overall some do sustainable XXXX, for growth invest continue fiscal creation. long-term in of

have include change in adjusted Enterprises will determined earnings EBITDA. previously the we from last our results from with our quarter. we FFF respect that minority investment in equity minority XXXX to investments expectations, longer disclosed change This Finally, in no fiscal our

result, additional of a that fiscal included equity an As earnings the XXXX. during were EBITDA headwind given expect fiscal in elimination XXXX, we adjusted to

fiscal not will of Consistent change an fiscal XXXX. on flow. cash free flow expect with to this of XX% generate impact we have XX% in XXXX, reminder, a to As EBITDA adjusted cash

also Before other commitment their appreciation to as to members as for reiterate and care partner our the customers. of provider a and I vital serve embedded continue our our role to Mike's for wanted team conclude, and hard health we I trusted opportunity work ongoing take

and our are Our greatest position we on asset, employee high-performing our as will to we future culture focus cultivating continue and driving for a engagement employees business growth.

for today, your questions. We appreciate time and now call we'll the open

[Operator the question begin Research. session. The is now Instructions] Please Eric first Nephron will ahead. We go Percher from question-and-answer of

you up on in variability the give to Maybe volume some could of a the of whether you've geography the catch changes perspective some Thank progress? anything to spoken you've seen you. and macro, that like looks start with or regional us and

Yes. Thanks, Eric. This is Mike.

quarter it do while return in said, overall, mid-single-digit utilization period. some pre-pandemic have from prior sort I a acute vary that our or data So that, of seen guess, does some providers we've many over a our prior seeing some the And then level. over continue a just old not with full so volumes geography to non­acute period. is for to We the improvement you the increases probably the standpoint, increases low-single-digit showed year year of as by

are are So the better seeing belt. regional, it's Florida, we are incredibly the just -- than again, than Texas we seeing growth obviously much come back. in places But doing places rest

And that. we'll to continue track so

how difficulty we of in strategic the given marketplace, but not what's land limitations the on where as guidance, you've about decision to going you? on the guidance directional have or effort market the think guidance the formal And today, much predicting not knowing will versus the not commentary is the

really this It's the Eric, is latter. Yes, Craig.

and how alternatives of could business, just continuing the that changes to assess we expectations. are our the evaluate think in about we potential strategic and as potential complexion impact So the

perspective, announce guidance, in one statements So when we to is provide initially that there our financial GPO change non-health would care the our be issuing of I examples of pretty the but the I would wanted operations divestiture look. without thinking highlight would a way significant did

not it's having subsequently, that because that of of the transaction, And then uniqueness impact.

that management plan discussions team just this post come alternatives So Board formalized with we and really wanted really out through more review with about and exercise. in the to get the to guidance then

the items the or net here, just of Craig, expansion the capital in of year, tie working a cash recur one together these expect flow on to all free this may the to guidance relative you commentary, understanding cash EBIT not EBITDA you improvement or few time And triangulating Can last EBITDA flow. percentage contraction?

Yes.

contraction could I in it what the about based our would that construction, provided think conversion cash ‘XX say I you likely broadly, EBITDA when around XX% again, to there expectations of will commentary XX% to would be rate. think free that flow. adjusted I continue on But say overall current be in I

you. Thank

of from Please ahead. Genuity. is Close Canaccord question Richard go next The

Yes, the ago. the And bit renewals member then increases fee a I just from thanks questions. you the the for there? previously restructuring back the maybe in -- can Craig, more and several of about timing little was talk share years

that. Just through all walk us

Sure.

we have, as that I I be did mean, talked So of did the year six, restructuring in majority seven to remarks, competitive not contracts continue tremendous think are into XXXX, my back I five, environment. providers about Health under when have in pressure prepared it members remain entered does our time a care clauses, the didn't as points subset termination a either or market time. or to that we renegotiations at for that the to did or agree those ability members to disclosed, did go the point intact. actually some that We restructuring at out maintain do of convenience previously in in

on done we've some we as So seen those, fee have share. pressure

In circumstances, a have some process. actually contract to entertain a willing fixed to have we members subject firm that seen renewal been limited

on share time. And so had that fee has points some pressure in at

so continue we then think that Performance as members nature Services things opportunistic talking all-in also with it when with sense relationships, in we're And and of terms makes move about GPO bundling as about the evaluate. forward. capabilities And in we'll longer-term we extensions to being of

causing current mid- low-XXs our all those from ‘XX that up So what range increase of high XX% characteristics disclosed. to the fee to likely to are are share the I

little highlighted respect bit applied to growth a for that opportunity would the be market on clinical with then you and more the helpful. in really sciences, adjacent the And that detail helpful. That's maybe win Okay. trial

Yes. This is Mike.

of clinical in what perspective a we've me the just broader space. let of trial been sort So give doing

of to health capability we're offer partnership science kind well obviously, real-world this aware, think So organizations, amounts evidence, with in sort systems, to life you're medical data. significant able And devices. of we well as as I have our of,

I think our couple of a about unique things very, very offering.

of unstructured look if at investigators. the looking AI it identifying and patients can you at think funnel, before actually about to capability and able we're for the using the sort First, exclusion the terms our site we and of we flip physician And trials, where data. in select inclusion we're criteria

is pick, of picked a investigators physician today that So can of happens funnel. many flip what actually of site sort times a and a that then sort we where so reverse

devices very medical and science very, life that think I that something is So interesting.

As far some arm. we been a things IV doing control we're in up been creating as interesting standpoint, from synthetic things Phase some to market, have the we've study where

So what not that have placebo whole kind allows is for to us it allows of the comparators.

so And the you're it becomes obviously, have when incredibly things, have. efficient we of and data data kinds a that do given using lot more that that able to we those and accurate

we're real-world disruptive evidence excited those in these So space opportunities about for the really trials. two

thank you. Okay,

The of go UBS. next question from ahead. is Caliendo Kevin Please

my it question. last taking the inventory Thanks the next any said I products expect The levels? and easing think of and inventory levels guess, quarters, abate up just similar a more the I quarter-over-quarter? sort comment in if Maybe color quarter. channel channels what And the to seeing or level understand of, few to inventory what seen clogging you're you've thanks are for what in You said, little had still, I'm you to, is you little trying a on there bit. maybe

start, so additional definitely -- Craig. perspective. add improvement. then any Mike is I'll seen But can we This Kevin. Sure, and have

inventory patterns that and But on overall come lot start a to down return. some just well. it points the then during hold out. that at they commentary It's that levels activity was that in of I ordering there way my the continuing are which to some time, all to seeing purchased members, primary glove excess are pandemic seeing improve. is things up are We had gowns, say, theme and the But not we're they being the as purchased the would

And fiscal continue through first XXXX. of see to so half we'll we think the it that likely

quantify of ordering it or Is in it there normal way seeing? what can is any XX%, of impact? to to form like categories size now? like these we're the any XX% magnitude this, a what you shape patterns sort And way, it versus for Is

Really wish does we by provider. could. vary It

an yet probably I would be the generally, XX% did But where getting I back, So to back XX% of it’s just height be. at it it some used don't it's of the have that getting of pandemic. not of aggregate the you. overall to level kind to is some of would really the with the that needs it to say, there where provide I members over-procure to all stuff way

couple And -- that mid-XXs helpful can the fact we know, going range. years XXXX? to generally members, from speaking, say, we to Is at think are of you partners fee high-XX% but low I are, Helpful. your mid through to locked this the don't to with understand? of on be up, all the now that about for Should to share, least XXXX or increase next

number yes, to generally do speaking, I a historical always are renegotiate. that mean, broadly, of market opportunity just a for contracts part members think there waterfall up say, not of I We where can come create I that restructuring or over have an regular would which could have situation period. our go members a consolidation, be to

yes, to then been wouldn't obviously, the talking we'll sort time evaluate already for existing changes footprint we've of those, that place recruit the about. have would new was the absent, But a that in unique we'll contracted we of And member period that continue say, see the typically, those in circumstances through members. that at I the although place are of, is to So our marketplace at restructuring. sort broadly, time

you Thank much. Great. so

Thank you.

Please is Coldwell of ahead. go The Baird. next question from Eric

was much. hoping some transaction, very I Omnia questions more the of here. for several on the discussion Thanks modeling

when true-up released purchase the will the are that? eight and on be will and escrow takes expected in months? $XXX million puts the time? adjustment price the about What million First, $XXX could you over talk to How

dynamics of a use things seems we are just some expense, expense some I the then more debt could like modeling model balance and that. imputed also think impacts, There's interest sheet help treatment like unique XX-years there dynamics on And interest unique transaction. of on this amortization over the

is Sure, Eric. This Craig.

fees $XXX-plus relooking So of is a million close of the at true-up the or so or as baseline $XXX million date. function the of

when So months. a number of a in it the back, based closed look August, was we transaction on back

get date, we'll through at the the So we have then that. close multiple came when forward, and we the applied actual door revenues look will the that in to

And additional so and our that based come at on will expectations that believe be will in monitoring, proceeds that the we point in time.

the that's So question. first

we weekly couple question second actually escrow on months. we The of as the are receiving balance, payments go next through the

seen So that million we've already a payments, couple $XXX down. reducing of

as coming takes their So and that's progressing escrow. those that conversations flow to are in good is the feeling with to cash and relieve the get members consents how place going consents about

relative That have we Omnia's were activity. revenue Number sheet we will relieved received that over the associated recorded -- with the the three, agreement that the we record on the as the and to again, as term we XX-year be debt balance, proceeds sheet. partnership balance channel debt balance of

administrative of previously, the have on to we so comes get fee at I an the I at follow-up sheet, relieve XX% about we'll fingertips, and So And but have It's debt the actually level. And talked each the that the balance. interest generation time imputed revenue quarter, it from will with -- specifics at the I incremental we'll to growth be above will but my the of close. baseline debt of around have as to then we'll get level associated interest I'll the purchasing that the members follow-up don't balance fingertips, given apologize, those imputed happy on a specifics with that. my don't have low-level those

should is two a The new up going show debt, be might, line debt in line in I a building specific this item? new model item Where follow-ups. quick for if to Craig, that we item?

It balance be on a the single sheet. stand-alone will item line

And transition free final then cash the Omnia, to I There the one. of flow believe. also is Yes. associated

what magnitude impact? one headwinds And in to of tell can free thinking that of your conversion 'XX? not? the you if might so, Is be cash So cash in the flow us it about fiscal rate flow modeling that is free terms

will Yes. To cash revenue at your now we cash point, associated we that time flow because will it have transaction. the initially with that flow the that not of that received have

you ballpark headwind be? could it to fiscal you that is what us So tell in ‘XX, expect what

back I'll need -- come has. the with depend Omnia to you, growth on to amount. specifically I'll on back based the follow-up the it -- based specifics will on go Eric, because that we'll

very Yes. Thank you much.

Lutz The Bank is America. Please ahead. Allen from of next question go of

Thanks for taking the was Can And growth out? relative growth and mentioned for Thanks. seeing questions. those non-acute the you bifurcate you're there the programs? Craig. rates Can GPO break further then the growth two and market was you there acute in One from penetration. you

Yes.

And expectations continue overall acute gross mentioned as So of think to I and to the at into in low growing non-acute. more in the level part continuing Mike the is will the I the talked about mid year-over-year. high single we're and and then what digit see business high-single-digit recovery ‘XX, activity to that at mid-single-digit non-acute level kind growth acute low-single-digit of is in

same-store would the majority I comes In to of you penetration. have growth that terms of market but through dynamics breakout, drive continuing specific our a from growth I don't tell versus penetration, contract

me. one Great. for then And last

to health the you ago? the consolidation, business? years On the impacting stronger? system maybe impact or versus that's weaker about it can talk is similar a sort business Or two Is one, getting it year three of or how this

the Health of in a two with our Yes. of What would large I is significant Advocate highlight was very merger. merger there XXXX, fiscal that

the combinations activity think have of year one and wouldn't say potential the can a the is do overall other. year-to-year, size I more over magnitude the changing that at but dramatically So I significant impact time, points in

it's be them while again, we two of to and of we it So happen. we'll the have historically. accounts different are know be lot which who committed given were continue don't merger members forward, But Advocate both and the those Premier could in Health as us to a engage economics ways, with implications premier have of did in -- conversations to what could look is why see

Thank you.

question next Please Credit is go Rice The of ahead. Suisse. from A.J.

for reviewing modeling history 'XX would frame. period. restructuring coming contracts a Obviously, review necessarily everybody. in contract renewal those doesn't go far. up 'XX Hi, of strategic time to lot to our if on you're seem the Thanks in the be A the trying process value out that me, But or is, that 'XX long-term view happen figure of changes entity of in out the terms time it going and a are period what seems to to got the fee what's they've to people like 'XX share on have to in churn? for to

sort point. don't to like community, perceived investment wonder people you if give they as you be I question, to that can a to maybe expect you them the -- you open an there's but what this it's looks some to talking review, strategic have opportunities can do quantify perspective. so like? under of I assess in But think at I you're better feel the different parameters, about end

Yes, just is this -- Mike.

you things talked bunch Having whole pressures from that that's Craig mean, a on appreciate of of relates a around. share we Just And and bit issues this. one those I the been especially health four It's it's think, out us albeit fee especially put that, said different it and could that A.J., arms predict things. we're tough to to from couple like the as of care, to just have macro really of coming a and going I environment to pandemic, continue two say for things stuff of happen the those years to challenging consolidation the to occurred. as what's some our there's now. a quite about

been Our focus has technology-enabled the supply chain, always right?

means line offering space. there's to believe admin value that non-acute purchase We our care think that incredible really the for is, going space, gross to top number. we pretty additional service continue play to role And We expand the health the fee opportunity do creating systems. a terms in so in in what revenue, want is our Remitra of significant

to us takes now. really So five out for from in years your -- given four, -- the numbers and question, in two, just general, just hard to three, put and it is puts answer specific

told consistent marketplace. share and the is A.J., dynamics There something thing on what The this The think that's pressure evaluate. the we're Yes, is are be have market future, with in to Craig. challenging. could only would fee I I we continuing add, that

to, Mike we've been that's much that has that the referencing. dynamic mitigate been But possible. have and try strategies consistently as in as We to something described, marketplace as a

question. maybe Okay. all a thrown that things comment you? bait business you're otherwise to opportunities, today I'll specific the efficient leveraging some the because using for made take to payments, Are or Maybe more there we the purchasing make from you're that where in at economics prepared the you yield hear looking lot. AI on to remarks follow-up my you said AI the around

Yes.

think of character couple other I of really well, things. different But Leigh great sort certainly the optical meaning Leigh a And we're the of unique really So that in additional recognition on commentary. jump is what's a stuff any with to that as invoicing bringing is that. and here can deal space doing in and

some automate standpoint, pretty do accuracy that technologies So a actually think which pricing our is today, of those we a from a health manual burden a lot for sitting standpoint, significant have system. care effort processes on the from unique algorithms lot [Indiscernible] a that can we manual of

So example. that's one

sure not I'm have additional thoughts. Leigh, if you

I'll and like cure Mike sort OCR, use recognition, that generation intelligence members, character where the at We've next is we're able Mike driving we're to optical to pick vision, of on just our which a talking to effectively that the that's invoice artificial price images. on artificial manage recognition There's computers was of to computer about. that said. to trying intelligence for pay. been and piggyback really drive for model enables down sort and of a concept digital of field what look It's

Thank you, Leigh.

lot. a thanks Okay,

Thank you.

of from Guggenheim Wallace Next Please Securities. is ahead. go Jack question

is you shift for and John since if was on comment Jack. Park if GPO if and call out? last market the changed any quarter competitive Hi, market to in I this could there's wondering it's on the share dynamics

Mike. is This Yes.

Just the in a last general, I'll had tell quarters. couple of you, couple we've wins nice of over

kinds a of sort recruiting long-term really I these of last actually calls you're health systems, the about As very over when couple the weeks was good new couple feel I propositions new you of in know, in efficiency, differentiation terms more things. spoke lines of with of are our funnel. I what very, prospects of significant think Lee I is along some those getting to and driving very and pricing accurate a technology the do

to -- all the systems to the value to continue drive in health get the think our for price value additive ability best to to I most our just from it's get market.

And for supply then our at resilient very, here as looking chain, obviously, intrigued contract looking as more I offshore. organizations very whole vertical create strategy and ways at products are think manufacturing domestically with we're what with integration well to doing

well messages progresses. are this received incredibly to and market the come being more those year in as So

could pace health you adoption Got on update Remitra relative the us any maybe the system and and And suppliers? it. give of between

are we terms say of in in areas getting adoption. of terms focus Yes, of on I track would the back our that

We together product Many attempting of trying functions invoicing from our using What do these for standpoint. the to to in network largest have various to their that all are whole in bring a this uphold utilization the systems health is process. at health we're of to an more mentioned actually invoicing network, broad past. that systems technology all a

So that's underway. of still sort

continue in the but networks. relates it creating as for We've out offering. participating, participate -- whole some quarters to of of it the in their supplier in couple process terms continuing those the over companies to very that of the very, come again, success to is the of through next work large with to had suppliers value more to build we As of multinational interest course the side, some additional we're

any lastly, PPE are seeing COVID the you or uptake And in demand quarter Great. related to cases? in uptick this

per patterns recovery but we've due I but are seeing it a on tied seen COVID uptick ordering heard but to cases. COVID we PPE haven't cases mentioned I and yet specifically say as real back come broadly, se, I earlier, wouldn't actual -- to

example, those as the are York, some did again, and Although some mandating yesterday that that in I of masking situations again. New an of facilities summing just hear

an keep eye on. something So

team. you, Thank Great.

Thank you.

Tassan next ahead. of go Sandler. Jessica The Please Piper from is question

the for thank questions. taking Hi, you

to So I was the wondering just 'XX? that stable in FY in direct within Supply then Chain breakeven Services. or What you was 'XX the And or single low 'XX? remain kind adjusted of expect EBITDA digit back to of retreat in margin business sourcing would profile

Yes.

business, our basis. business margin about talked typically we've being it again, very EBITDA for sourcing effectively low direct adjusted broadly, a on So an

we it retract the fourth elevated quarter that a due but had purchasing margins So the when from ‘XX business. little did pandemic, did to levels bit have EBITDA in for low-single-digit

look range in but that to margins, the we then to EBITDA high to as adjusted gross forward, be would we forward think EBITDA continue in to mid-single-digit low-double-digit to gross expect I not to and margins low -single-digit continue it moving be range.

the even rate That's helpful. the Can you it. to understand relative looks an on on care us care what GPO share for Got fee GPO. basis or maybe health help the non-health absolute admin a like back

What I more that getting in into not have so the have systems, would specifics health health typically fee acute say acute Yes. providers with higher share large is we see broadly market. we leverage and than care clearly, non-acute integrated systems broadly scale,

to getting the higher aggregation opposed I having would actually typically, where shares. the and to negotiate price the it's as savings non-health scale extend think through curve market and about maturity to the fee care that more

FY that liability, And it. did that just $XX then about the non-health admin million GPO fee ‘XX of the expectation? does based the Got versus in net million $XX incremental care imply revenue on prior

see care what piece Yes, of quote don't to talking is. still in determine order though, earlier, I a terms it it this are have about that we'll We in. the to true-up, higher. would expect non-health number came Jessica, in -- I We of payment was where the terms specific in to true-up that wait to be actually

in if extent alternative and motivated your is these decision making to this share, And magnitude? it. conversation? you're business. strategic just because Got Services should a just you, where my is Basically, Thank know the strategic Performance you're business, to question the kind can what's your investments And invest that again. last of then by interested show guys the there's confident you those investments to up for

Jessica. color. start, Mike This I'll is then Thanks, and Yes. Craig, add can

to decisions there revenue that had actually or in It to the spots is provide adjacent continue not there employers, actually businesses opportunities for case that in in future. scale the are greater for can the to where and to is find for strategy strategic So Performance we've an tied with markets things the business life those doing of the ongoing are diversification the where Remitra, I those providers, say in opportunities benefit suppliers also and to sciences, that other our alternatives. pools we're opportunities Services, of we sweet growth benefit for to look and invest other actually and profit extend payers markets stakeholders there but deliver would growth

As provider the mid-single-digit the we're low more we've markets in to the growth indicated, that landscape. the XX-plus percent growth adjacent versus revenue experiencing in

opportunities to are And evidence as so ability terms help then And the those delivered things reason a the that's a of and space. the be in through prior in actually the of both areas, of marketplace, to real-world take clinical from providers the for portions Mike arena. a and and actually clinical system automate the and the making way standpoint clinical create that we're time and the we're the doing trials needs sciences eliminating we particular the the for that that to efficiency that lot that resource of And decision in support look change investments. lot the effort payers applied to continues in authorization as continue effort focus manual described,

the for Contigo that incremental last be have we making think And will we continue the of and way scales. reset the business look two about about talked to do in sort are the it Health, then to investments three we in continue ago, in as as primary real balanced payviders. we network of Those areas. quarters national as to build-out Remitra,

system got care I'll we've the we in them. only Jessica, that of sit we right to add Yes, very space a these is and that in health partners, unique care health build love alongside strong other in very very, innovate

and on standardize services. extender costs about think their allow ways us they that provide structures be reduce are them committee to technologies capabilities to to for us support as help or have then We what understand to them, way business and and for the to to be build and it services a they issues labor

same and we standpoint, as spirit devices with suppliers many oftentimes, that pharmaceuticals. both a because from In work GPO medical

us we're able are we very issues where well are -- for could very, be pool profit thank we innovation work an of capabilities what the business to understanding level So do exciting we that to you. we're invest the continue it's we sit drive should to unique in additional questions be those But that and building organizations and are I think them health that appreciate because dealing to discussions, that sit As want in just, with I through care, line to Premier. in? to and those out potentially with as are there think

quarter Thank question-and-answer concludes for disconnect. full-year Premier's and earnings This our now Fiscal and you XXXX fourth session you conference today's may attending call. presentation,