Premier (PINC) 6 Feb 242024 Q2 Earnings call transcript

Good morning, and welcome to Premier's Fiscal 2024 Second Quarter Conference Call. [Operator Instructions] Please note, this event is being recorded.

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

Thank you, and welcome to Premier's Fiscal 2024 Second Quarter Conference Call.

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

future we plans, Please supplemental forward-looking those statements want and earnings I could Investors contain section performance, are get certain everyone website the prospects, that Before our at regarding differ management's our that today investors.premierinc.com. available to in as release advised results accompanying our statements from presentation remind the expectations, such of strategies, this be call actual and materially started, today. remarks discussed

statements and soon. in Form harbor We the risk our these Form to affect obligation as file including filings forward-looking quarter, These that detailed review safe results XX-K and which future speak SEC, of recent our we undertake might most for Factors to them. today, disclosures. encourage XX-Q with no expect discussed and to we are you the update our factor

will measures in the our measures accompanying and we financial presentation included to are presentation, these call. this the appendix measures in refer our of this to during in GAAP earnings measures reconciliations to supplemental Also, GAAP and financial of addition release

in our both our measures also on SEC our expect the quarter soon. which will Information to the Form we earnings be financial for of included XX-Q X-K, non-GAAP and Form furnish to

over call Alkire. turn Mike now to will the I

and everyone, morning, thank Good us you joining for today.

repurchase a including with billion our of $X has updates We of to alternatives its you, that strategic new several are authorization. approved share excited share review concluded Board and Directors

and explored we Board, with for reviewed several options Premier's identified, past value the Over together thoroughly our months, to maximize stockholders. have

focus in substantial this part as process, enhance GPO non-health divested the on stockholders and transaction value unlocks our that differentiated company's businesses. This care XXXX. healthcare we recall may July our for of You operations

a $XXX the mind, from to million of subsequently new part authorization. Board implement considered transaction repurchase this we stockholders. to in With including share this for resources, returns as capital divestiture will opportunities the proceeds repurchase The deploying accelerate share accelerated

the of disciplined process exiting on that strategic alternative in picture are review a strategies our includes differentiates vision. key a market. with the clear focus strategic future We our That

think we essential mission vision, to health of know care. high-quality, is and is we what are that Premier our capabilities key this, about enabler When our an cost-effective

Our solutions better supply provider-led performance care a health chain. strategies technology-enabled deliver unique for enterprise provider smarter and

We us artificial to set competition. intelligence to key vision the apart and see technology as enablers our capabilities and from continue that

of cases payer-adjacent challenges, disruption into shortages, providers industry expansion the device continues healthcare includes Premier is more now use and to the than markets. ever. Moreover, beyond partner grapple as an population, an the aging supply and This sciences, with and essential chain medical life labor including

a stockholders, other to deliver Consistent customers. and focus enhance we and this, and members best on our our disciplined our management Board the to expect with approach for members committed data, remain to execution wide-scale network other We our serve technology at and value to that looked customers. to differentiated ways

We believe right operational affording As while with Premier Board management, businesses more are certain serve, seek thrive assets. value customers these the to for the result, also Premier a the the partners to with other meaningful creating narrow consultation for will that our opportunity they authorized in partners focus.

we consideration advancement for markets believe employer expect and capability the under allow business scale. increased continue a broader continued outside plan we to Assets -- and will include set health provider-sponsored of partner the while through an progress, to

care providers. a to was member our sourcing business, Second, investment provide our purchases our for offering direct strategic GPO augment optionality for SS and additional which Global, commodity health

operational chain the to continue alignment supply capital this removing resiliency further to support commitment requirements committed business our a Premier. resources the membership to provide our believe and scale to for working could necessary broaden and initiatives We with while partner and

We streamlining AI markets. that strategies technologies the market, and growth aspects set excited in apart us provider support supply future of as adjacent in capabilities including about to improvement the data the our are all and unique performance on execute chain we the and leveraging

want with turn explore our I drive it alternatives. contain their of Before appreciation processes as patients costs. about include and and co-management relationship excited that announced stockholders, efficiencies technologies to I'm to over and Medicine expands XX-year recently customers Craig, our we to GPO I express employees diligently to our for strategic people, our agreement Top

proud I'm as health creating and our to Newsweek are to one the also and recognized to for be of to are of so nationally True for greatest improve communities, was we diverse our by that workforce recognized incredibly mission, dedicated thrilled diversity. efforts. inclusive recently America's Premier workplaces a

turn will Officer, now over and to of for Financial call detailed our Chief our Administrative the the for McKasson, a year. review I our fiscal guidance remainder Craig and results financial the of

to Thanks, your alternatives sentiment position with in on of a eye exit I core the want echo review with strategic businesses. an towards excitement healthcare executing Mike. first process about our strength discipline to our

XXXX our me Let results. share year second fiscal quarter first

segment, member revenue administrative revenue from mid-XX% was for to as level. in increase impacted business. a profitability our expected, meet managing year of as actively fee by net fees and prior declined expectations the blended result total aggregate In the ongoing share discipline our an our While did net period, Chain the Supply in we Services

current in continue This customers' in and in inventory revenue. market members purchasing. lower period, impact products impact a by In excess and which resulting direct the partially was levels, decline of offset and to sourcing to has experience other pricing supply we our the business, in year continued contributed member demand growth

operational provide more resiliency chain. some to the I care health moving supply Before on create in wanted updates our to on, strategies

domestic year. our of products near earlier manufacturing part and As on manufacturing to bring in initiatives began partner Tennessee producing this more shore, gown our

domestic In addition, the in expect XXXX. glove of launch second to we fiscal program half our

offers which X Services members period. added access decrease our in revenue program, to agreements the a to we contributions from segment, to by compared medications short was our impacted Performance in now drugs resiliency Lastly, over enterprise prior license drug additional XXX supply. In vital year shortage

our market that the validate solutions. about for need we remain opportunities enthusiastic However,

For example, we consulting margin leveraging and care our clinical providers as health growth in improvement. drive to continue Premier services to are drive business

also grew continue our aggregate. TFS with progress accelerate through AI over XX% make trials. We adjacent Applied businesses, partnership announced our evidence clinical innovative markets into Science, in in Premier's business, where to integrate research recently ways which our real-world Notably, will help in Sciences we to Health

seeing Henry has for eliminated reported manual Premier's X-month handling Ford money. period. need our payables that continue solutions margin to In considerable invoicing over validation nearly and the providers paper of platform invoices addition, we are and Recently, Health technology-enabled market that time XXX,XXX improvement save a digital

was EBITDA by profitability. the income to GAAP factors. the following net Turning $XX.X quarter. Total million for was impacted adjusted

Chain Services in businesses. and mainly businesses. due to Supply adjusted an And decreased second, and support in adjacent Performance in due adjusted a EBITDA lower and EBITDA incremental consulting revenue and services support of declined GPO our markets First, to increase headcount in mainly to expenses our Services growth comanagement supply revenue decrease chain

liquidity The for XXXX months flow sheet direct adjusted a driven year business prior primarily This to declined higher decrease was the period. decreased from compared EBITDA. and partially factors adjusted offset earnings same million the and due costs logistics partially $XXX.X fiscal income year Adjusted lower prior perspective, profit sourcing and in balance the were of of operations higher margin From by million the in offset impacted that net X share first a to decreases product cash income. from by period. $XX.X per by each our interest

sale performance-related lower primarily payments of change quarter purchases during by XXXX reduction lower compared The million the operations. revenue tax was current prior due fiscal the year Cash non-health in from our in payments GPO XXXX care period. in the and by payments was net compensation fiscal to offset was lesser impacted period to in the partially to a the fiscal a $XXX.X year inventory and extent first

of aforementioned million the tax cash purchases that Free operations, increase cash the the first same software $XX.X payments $XXX.X to automation. in decreased an flow advancement inflow in fiscal factors an capitalized supply period, technology X impacted as primarily $XXX.X in related for of of million our year the from to as prior well from flow months million outflow XXXX, an of the including chain due

our approximate as and $XX.X XX% to Looking forward tax related the of of of payments sale flow operations, to as XX, million XX% of cash GPO care million we with cash XXXX, EBITDA the non-health impact year. and to totaled June for XXXX. excluding Cash $XXX.X December compared of free XXXX full adjusted XX, fiscal expect the equivalents

driven operations, care non-health our tax the the of The was increase previously sale net of mentioned by payments. GPO

to up we work consent XX, December have $XXX in the continue we true-up a we ends purchase final million as As February. the and in to $XXX.X a through total period price be of of now expect that million member and to proceeds, received

used to will have focused outstanding approach. these to disciplined quarter. a of As continue net X-year deployment, With credit our balance we to stated portion quarter, last remain of the proceeds and respect second pay balanced as billion end on no $X facility revolving of the capital down we we taking and a

fiscal billion Board Mike transaction. a will a the As new our which X $XXX implementation including cash XXXX. XXXX, repurchase to authorization months has through stockholders, $XX.X during dividend, accelerate million approved share This our the returns of XX, accelerated $X first June augment share to quarterly mentioned, of totaled million, repurchase

Board of share of In as addition, of per XX, a record recently X. declared XXXX, payable March on our to $X.XX dividend stockholders March

enhance offerings We in growth opportunities organic acquisitions also to strengthen, differentiate our complement the will and in invest evaluate capabilities and existing to marketplace. our continue to potential or

remainder outlook our to Turning the of for the year.

alternatives result are our formal strategic fiscal we providing of conclusion guidance. the XXXX a process, of As now review

market key significant and the impact incorporate repurchases we or to business assumptions incorporates any share or repurchase may of it related undertake. guidance transaction not $XXX any Our that the future million does accelerated the share following and divestitures certain acquisitions our

ranges $XXX and Products With $XXX comprised $XXX net in specific fiscal $XXX guidance Services to fees revenue mind, these XXXX support to assumptions our million million. million $XXX full are million up $XX administrative other revenue segment $XXX year follows: million as and of $XX to revenue Supply Direct of to million, Chain services of million, license, million revenue software, Sourcing key of

of segment of Performance $XXX million to these million. $X.XXX billion revenue $XXX billion. to net produced total revenue Together, $X.XXX net Services

of includes million adjusted and $X.XX range the to in the an be per the in $XXX to $XXX to EBITDA repurchase $X.XX, to estimated adjusted share be of earnings $X.XX million, $XXX share impact range accelerated from expect to $X.XX transaction. million We which

further guidance following GPO growth full penetration a of on In the year also business, by anticipate blended based we our mid-XX% continued expect be is spend. member fiscal And will assumptions members basis. fee expectations. continue XXXX member aggregate existing and in share to on for Our the purchasing range in driven we

In expect, than GPO participation stable addition, higher low patient with that flat or we expectations. our of these could or represent but for potential the growth generally more reached in remains assuming business. to tailwinds to we are sourcing quarterly single-digit rate or that In our our products end our lower direct the have business, normalized run finally we extent we utilization this lower member are -- utilization believe headwinds to

nominal we revenue fiscal and expect as to half domestic realized the improvement As to of gown quarterly and continue incremental on normalize, glove our basis XXXX. ramp a second from a contributions and flat of we the pricing ongoing in products result, demand in initiatives sequential

life adjacent fiscal to we aggregate markets markets revenue around XX% revenue approximately Performance and our Contigo clinical XXXX. in represented Services decision Health, businesses. sciences, our in support, With Health adjacent revenue business, In our respect growth anticipate comprised Remintra contributions our of of Contigo of XX%

and the between with enterprise revenue approximately Contigo growth arrangements, Due Consistent timing certain be to quarters. in periodic fiscal consulting and of higher our agreements year, may will license we businesses, profitability years, the of expect X/X other with of magnitude and aggregate of certain recognition of revenue these adjacent adjacent to due prior a XXXX. there combination represent growth our in markets variability this slower engagements markets the in Health associated and

confident of opportunities and our to ahead. committed disciplined strategy remain and in we the creation the value execution closing, In

encouraged customers. to customer share our engagements strategy recent We and by to are existing projects and are and and value excited proposition continue new with

us to We capital ability which balance strong a foundation, continue return by to flexible future provides significant continue operate flow also investing growth. while a financial supported to and sheet, stockholders with the to cash

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

[Operator Stephanie Barclays. comes Instructions] from question Our first of Davis

finally ending the Congrats strategic review. on

the in on X sourcing So assets out business review and to Mike, have on Contigo I these starting X direct the review the you've the or this business. the process monetize. what strokes most of venues made out? And the stand X Do broad will that I'm going really to on sense review, core your for thoughts have to line play during any kind how these some you time processes process. strategic sales of assume explored made

Yes.

the So thanks deliberations. question, options range while and The specifics broad Board's into Board get processes can't potential we really Stephanie. the of strategic considered for the obviously alternatives. a any of And of

rest best determine forward company very the review Just our thorough to the stakeholders. assured, we that stockholders a other in for for conducted Premier's and path

So I apparent. went the of process Health There Contigo bit starting the -- interest a it and think the our became in with STS assets. that, that as was just on, and

we sure not that of organization capabilities grow the future to a its were assets continue and thinking can be membership. partnerships the And that's public we to to those in find it that with core were the we partners, with driver -- areas that wanted really with about those was that believe couple that to to that strong we this And partnership us made assets. was of for a Premier our make that grow had really right lot of to necessarily as those sense really

is Yes. those think actually we X the only that can partners those and Craig, the This and to take level. about resources thing we other scale, bring at next add the look Stephanie. is The would I to expertise the businesses as

the But next a strong out to with they have those core We businesses within take level, scale our to versus belief bright of differentiated help stood a them businesses have that our already partner institution. a both future. have

you. Understood. have I Craig,

me core Let ask business. about you more the

year's first all. out You doesn't pretty last it scrub look cut at for actually heavily bad comp, half your a Services. assumptions I Performance Performance Services tough like But . had

much? environment fit strategic so that change much current sell reflective outlook broader of market process, or the is to the conservative? versus maybe why how making tough So of the ongoing review And it or

last a Yes. when we that of And Stephanie. Performance good that half certain the in you. had agree question, tough Services our we first particularly first comp, business. aspects year's It's with out I take Thank good would feel of all, do about you

guidance anticipated I and As some Health the that we remarks, out, forward look and year perspective. we prepared seeing I started in Contigo are that directional the we we we growth put my in full not preliminary had when indicated provided as year, the had

markets haircut. And I And about remarks. shrinking talked in so the a my of rest that's it's certainly to sort been relative businesses of our prepared adjacent

with been say strategic I not totally Secondarily, our by would I review think has in happening the process. it do but alternative influenced market, what's somewhat

in finish We earlier segment. over from but to think expectations certain year. what are long enterprise continuing in to good cases. tapered seeing were get prospects I we time in the line some We've those we our take for the Performance pipeline, Services of the those would see the still a thinking about feel licenses we

into And the of you through adjusted guidance license year we flow agreements, profitability that as so well. know, the we that line as full the does given have established. factored And EBITDA those to that

Close comes Genuity. from The next Canaccord Richard question of

be I aware bit Performance wondering you there's quarterly any of? could just we little maybe a and Craig, quarters, cadence, and chain about we supply was nuances fourth third should Services from talk think should if the about how if the the

Sure. question. Thank you for the

business, third then relatively you at -- I anticipate point we the fourth think would Supply flat in third slight expect step-up from think this I standpoint about across the sequential kind and quarters. a Chain would slight if of our a and the Services a quarter

business know that do in sort the tremendous, given the step-up believe the expect truly hit the direct watermark we do of we of but we but for that end said And slight sort I've low hit mentioned, some I run. bottom sourcing that had I the of not direct sourcing. As past, we've in

the the sort I we we to would our continue itself year expect and half sort thinking Performance of best that. Services then think Relative in, flat third second is I the quarters across repeating sequentially fourth So forward. of think as of through quarter came about as to about and we broadly back slight up where way the step move business, in the a

that sort QX We year will slightly. plans hoping some think closure step I of we do out. the But of help gap sort would up level rest we're anticipate the have would is to playing overall, QX the of where

assets the of with on just well it Okay. I'm not That's timing. you was -- as divestiture? going that the Are bought, guess, Contigo. I a potentially sure And as TRPN X.X ago follow-up, the years the or

the be correct. business, That's business be entire that we Wrap network would the which TPA TRPN. Health It to COE would provide Contigo the tied and Yes. business, the components

And that then don't associated information the with XXXX with the I in you fully -- Contigo, fiscal gave the TRPN was revenue assets fully the for was number. revenue that remember, in

The time XXXX. asset in acquired frame October was of the fiscal

So would about then fiscal XXXX. year months a in have in it and full 'XX X-plus been

comes question UBS. Kevin from next of Caliendo The

and this functional sort When there the we and parts is any other don't of businesses? any dissynergies from Meaning, level, there's these be know think business any bundling about of how of revenue works other on there that not fully or offering? could I if Contigo other STS having companies owning a as first that is of by affected your actually question. any revenue your part synergies? That's these kind

all an I are $XXX you ASR cash flow, your of to cash And question do and can't but for you expect finance of second then on repo. drain you I now, the imagine the ASR. -- free have mean, want And expecting million is the how more to cash that you

us think forward. repo financing ASR about to you just how take going if of through just the can and So the sort

Kevin. Thanks the Sure. questions, for Craig. This is

dissynergies, material to a of potential result with revenue for businesses First and partnerships. these respect would of not I dis-synergies all, looking expect as

I highlight think business, I is with only thing that the our is but SXS GPO it expect contracted this, and supplier. wouldn't would a

receive a do business. even administrative on continue if GPO provider controlling full we to another of that there SXS had certainly We would that So fees ownership that anticipate purchases. were or

that However, can't actually to a contract, but then if that GPO to remiss I'd not they chose be a yes, I occurring. place, not envision do be say would

to really that dissynergies any aren't for at business. would Relative direct there apply Health, Contigo that all

first So question. that's the

have the to there million is finance may we a relative funding here The is cash facility second do of to of -- share the short-term repurchase accelerated in a that the the days, promptly. in when very use anticipation down that our potential expect to our credit expectations of we to couple utilizing but we would bridge the question that some ASR, will $XXX pretty launches that given pay timing initial just funding

as done XXXX and make then Contigo then authorization, into and we forward, to the we the to additional obviously, criteria And extent utilize fiscal point, subject to the Health flow that facility have from assessment allocation standpoint, conditions do sense as and that, a that could in to well. credit other -- had look in it of moving cash at free we to transactions relative whether capital that remainder when flow that repurchases our would we we any generated cash for extent made market the forward we the factor that

America. Allen comes question of from of The Bank next Lutz

you softness that maybe think the driven strategic that any improvement Craig, And any closing think some was of other Contigo could the -- of drive in you impacted strategic you review Contigo? the review parts review. the of outside mentioned the of business? the do Do by

cash that flow, to mentioned on How you cash would said rate think working Contigo? SXS also conversion pretty about like free conversion, but the intensive. SXS separately, was what and should look excluding we then XX% And free capital XX%,

Yes.

about of first I being I alternative certain Services strategic have market all, the businesses at that of I that to had So to was points overall. broadly will view think clarify, our about to talking segment all the relative questions Contigo, across the holds. what kind of specific future customers dynamics, just certainly has wasn't say I Performance

in a what Relative more also Contigo indicate to next to conversations to excited And level. so the out that take having about our resources we're with and as SXS, us moving expertise us did forward. with actually we excited able business are partner behind the to talk and and potential now being future and have opportunity customers remarks, go alongside the very we with the to about those strong is businesses about

future the we So to relative do what that. feel may good about be

As would to that our conversion, cash into guidance far would further To XXXX. that in EBITDA sale point SXS But provide included flow the that guidance, is our and the as we extent working we're a time. of those providing slight certainly conversion. free have in the put some that perspective the held need to of at in point, overall, cash expect those revised the we a that this at of business. fiscal given We capital are terms place update perspective we free still given conversion get would for flow on would as improvement the requirements that in actually we

next from Eric of The comes Baird. Coldwell question

I questions. have X

market? market. any just before round? ASR. open to the when then completes? ASR timing curious on when companies Or process remaining potential determinations of before and that X typically, and we on anticipate be you getting through the First market $XXX if in and think the post getting What the of likely back activity would or how determines of next And I'm if for repo the you'd million

Sure. is Craig. Thanks, Eric. This

all, of to market be repurchase. the while accelerated first So share expect the not we in do

million is place. taking The first $XXX

through us correct XXXX. So first on complete We'll anticipate fiscal perspective is do quarter likely let We place. of could that. that $XXX the and in million the your take take

repurchase once that that taken provide on open and have capital fourth August remaining that see earnings determined that the that when provide ongoing we would point, again, to at at the would things needs, thinking market in be quarter further million think we the conditions, to -- release repurchase, think our expectations if for that either accelerated all be out that, and $XXX based would at but is time a volume to market -- determination when we I share So be come update trading And cetera an the time how that we'll $XXX and is million potentially out, et that at time. might I share a point. implement or that the another likely through we we've that would relative

Next on product the business. question is direct sourcing

be of be partnerships With included gowns the independently? a and held finding on in this gloves consideration Or partner? TBD. those Or would that is

Generally, -- I have based a transaction. negotiations it and for are say, partnerships independent is have does gowns and depend the manufacturing for will and today, domestic obviously, not into But with on by so mass we the would go likely partners. for that that requirement there of Eric, we drugs those the would certainly nature generic certain definition, the

more up. did in gross perked range. Okay. typically Was And has -- obviously, EBITDA and performance, during think gross in you that it mid-single-digit is determined very a then the business business bit is that XQ? hovering the low to sourcing ZIP by margin profitability. margin mention that I challenged Revenue, code been know of

-- Low correct. single digit that's

Yes.

tad did is looks Contigo, year. And million over this math year. I've last million have done X with maybe $XX bear I it a million, of so If correctly it like actually. maybe complex the most $XX you're on last revenue targeting about Okay. me. one, This $XX XX%, then the

XX% be XX% to given So XX% year in for the to half Contigo around adjacent get half quarter. Yet the near growth flat. average first second the has on per is to markets, full

first if it is half in second market your because was So than million that's a quarter-over-quarter. Is were higher adjacent this though the average they enterprise Contigo are in first done -- second right. reduction on about half, in the is, half license in half the question decrease $XX even the half? quarterly the much second lower I've revenue was down lower again, and My in agreements now because ELAs, if

lower just the items? a to sense in are adjacent things half? and a those trying second it other of why get in absolute I'm here markets Is dollars on growth combination here

There's lot Yes. to there, Eric. a unpack

little to need bit, that I So but... process a

too, probably to that's I do question. Yes, long be a fair,

I We a of of in broad around don't back significant step back commentary. level, generally, at sort back the First of expect based a adjacent all, what markets your we expect commentary adjacent on in terms levels don't significant of But accurate step markets in Contigo say would of the performance a in is is my half the year.

we a half, I our with will business say first sciences particularly applied the had quarter. second in strong

not that not stepping it's normal at a might it's back but it So the clip have that on basis, at level. growing

an to as my Performance half quite for seeing, going are level We enterprise conversion I year overall the this see on on licenses in segment. aggressive not standpoint that mentioned being candidly those we're from in as cadence commentary around Services of we're and the second of the

of from Sandler. comes Jessica Tassan question Piper next The

you I of the GPO on share what the us with such you back year potentially care in end review. would the accelerate? customer that the 'XX, or line takeaways remind could -- in of adds health FY guys rate could in was was the expected new to Congratulations just be full market be I FY then competitive yes. hoping And is kind expect the for 'XX? to exiting

Sure, Jessica. This is Craig.

So the to XXXX. fiscal be the as indicated we expect my in across for rate fee share range the mid-XX% we in remarks, GPO

experiencing aren't on perspectives the been we've dynamics moving we that fiscal have providing market the or as yet But We that extent said to publicly continue. forward. XXXX

our But we're XXXX. times, has get we marketplace, consolidation have mid-XX% planning do in not increase we into where affected about specific the see that point, providing see above this as we to further that better until pressure At at it visibility If we we and be. guidance in expect to could which administrative level. share for that fiscal fee

to harp question just my you to just earlier noncore. mean impossible strategic end it. and of towards to that or that hoping occur potentially decision sale just did was next on what And a conclude in I Wondering kind process. Got understand execute of interested one, on Contigo the this That's is but review just the review? it So that is helpful in a don't led partnership the guys timing, why to

Mike. is this Jessica,

So Contigo obviously, review in a I reasons strategic announce were that why there a decided number conversations to lot we potential potential the for will partners. of happening were process. you of there's looking the tell

number evolve. I continues was the as to X think process I the think that

there a just us health obviously, we was of that we became more with that towards And like as that much wider pay care level. our moving to in to can to a partner higher help different more asset. interest believe space. of apparent that sort would take lot It find to systems collectively us capability they're that that a

So tell timing, the was process. really the of a in to I team board of the process. And strategic just it bit time going was on you was that it think that felt a and would just little move evaluation there lot it I but out

That's hospital Got XXXX Okay. momentum seems obviously, operating it. margins accelerating. strong last is And just, my question like is helpful. then ended and

there that Premier to participate updated kind for anticipating. that And lag in perspective we where be over what hoping time of a strength? is expects Just on an frame should

things. So a of couple

outpatient year, X.X%. calendar saw up X.X% of the volumes of we the up all, inpatient and First at going volumes end going

quarter of last the was calendar the year. that So

obviously, as significant that, a care said now. So right a issues supply are chain Having are affecting health obviously is tailwind, that bit X that of expect, you'd our for capabilities. there

to And we're One deal with the issue. is continual incredibly labor positioned think well labor the issues. we

our you care to systems our think help labor use if health efficiently. about So technologies

systems they're enabled. our about at been machine struggling care issue. health support think to learning a we're AI can the spot We manual you help systems care really and capabilities that labor our move more If processes through to as with technology great health have believe that

health moving learning. advanced The is think this market are to electronic HCC the second systems can proliferation using strategy demonstratable AI, processes. prior of And they're We do authorization overall show that record. differentiated machine AI machine and do technology, capabilities care leveraging in of focusing the very from very, trend scores, manual our on learning those X technology-enabled offerings think value medical unique to we as on

us. technology-led that's of trials, idea do we do that very finally, work to think this we realm, pharmaceutical with then for our unique companies identify And in patients believe for

is that's two. scale. our care So health then systems helping just more And number final the really create

them thinking all to offerings curve. really cost capabilities. can creating we're capabilities of course, our shared other help they're bend our clinical supply and continue support ways their that sort as bend of to decision And that chain And those along curves, are cost and about services aligned

question comes the next The Company. Sutherland Bill Benchmark from of

little have, trouble math a with I here. Craig, the

the year being talked in rest the kind of line Performance in you for the half. you came with about As where of first sequentially for Services

provide what and on seem that's can you terms could think of EBITDA on meant. if it well, revenue that thoughts at to just least wanted year, because you've if didn't you the your clarify add I that. just Maybe as in based up full adjusted

Sure, Bill.

that closure we that where So QX expectations for yes, although in I order be say generally, out, I Contigo to expectation there broadly of on came is march did and to expect kind we level. to need gap along that QX QX some would achieve with indicated, as

from lots perspective, for But when relatively how from year the adjusted that say, consistent standpoint. expectations cadence to think thinking part, I'll out. make is we top we're the with about we it standpoint, most expecting that the of between a happens. how performance sort From for So sure revenue things fiscal revenue play year would services Obviously, about an of have of the EBITDA the to the playing overall how out now we overall. be, is a broadly, to year that's are and line do end

Okay. Yes.

you as the partnering aspect might and of what kind majority be? their just it that Would where part? interest investment little Can then you of on Contigo think side of us stress. then about of I'm on there's more and the be And the a X guys shape for this it. give about control color the curious kind Okay. Or

This Craig. Sure. is

the of expertise would somebody through to forward. a the would move have control and more further our obviously, to that else. The but So an is and question what go partnership, whether those X X we'll and that but to scale, would leadership businesses ownership those majority go take to the resources expectation interest ownership to the organizations businesses all of certainly, businesses expectation process, to of we maintain that extent be majority these is,

And you -- I'm sorry, did you up. Craig -- finish it

-- question not what I'm about you I by I sure wasn't investment. clarify investment. meant wanted to your

majority going direct explained require I of all of obviously that's kind you it's Well, a to taking it. mean stake, and investment.

So -- okay, that clarifies that.

next The Percher Eric Nephron comes of question from Research.

a I tomorrow, they've sourcing this Contigo, saw was moved could want And specific you if the sourcing, positive, partner investment Or material? to on be to what and it no potentially at I'll contribution to and is immaterial just there get negative ask EBITDA? Contigo. a further would be more little contribution from precisely bit

it be be not slightly EBITDA. it would the those, I a But accretive it tremendously to material say would level. EBITDA, X to at would net-net would accretive of but

the -- think or you Okay. what and think rate And in I'm if but the these Craig, do ask you in dislocation from you, not 'XX where 'XX should just relative we what the or at own you that helpful. to look is then, speak and out? partner you I run, the through if Could businesses to 'XX, wanted could the some of try fall look process. businesses have or about to pressures to growth to and challenges not you and That's and specifically, expect asking natural

at generally I Yes. overall if an talked grows the look GPO, we've business changes growth about, I gross talked we've relative to independent about, share that level it you low on of mean think mid-single-digit fee basis. to at a that

on we being fee for we've 'XX change into in share in and line the that -- pressure dynamics because a the share that been top to underlying that growth Services market. that has of that From our growth a the I a of the Performance mid-single-digit think of about part provider standpoint, more we've is core side in business. talked really mid-single-digit transparently quite about the business of of low technology expect the business that while terms seen been a decline with But in fee stretching we've now, talking that for assumption

businesses talked is why with the about. that there, some be XX% we've The that we've that to the growth has growth adjacent type more excluding we're Contigo, of talked about, year-over-year which at negatively impacted again, Contigo seen of business the that would XX%. markets we've XX%

these last what And be ops? determine you question move potential partnerships would helpful. That's to will discontinued if

evaluating, as that's likely and formalized where expectations as and obviously, plan independent anticipate more internally the that we Yes, would with of for we'll we'll the criteria auditors, soon wind held-for-sale be expect have classification. we all our that those are around And up. required for a

Premier's in and session Call. presentation, XXXX Quarter question-and-answer Second attending Thank you for disconnect. now our Conference concludes Fiscal This you may today's