Premier (PINC) 20 Aug 242024 Q4 Earnings call transcript

Good day, and welcome to Premier's Fiscal 2024 Fourth Quarter and Full Year Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the call over to Ben Krasinski, Senior Director, Investor Relations. Please go ahead.

Thank you, and welcome to Premier's Fiscal 2024 Fourth Quarter and Full Year Conference Call.

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

Mike in soon. I Information to call included X-K, expect to XXXX statements measures detailed in fiscal on Form measures call. measures financial turn which financial this results our future to we prospects, are be supplemental supplemental statements will regarding want Alkire. non-GAAP our other and materially reports. Also, we statements those flow no and file to earnings I Investors certain to we on today. section performance, speak XX-K, our our Information are get to forward-looking be everyone website the Factors results the evaluate these discussed as update encourage addition with financial We our expectations adjusted management's Before measures review now our at including financial undertake our the why of the this earnings GAAP soon. and filings remarks reconciliations future these and our our release that contain investors.premierinc.com. Please that available will accompanying SEC, to to in statements measures release during use Form could that in non-GAAP presentation, which accompanying included strategies, and we to business. such presentation we these are our free remind in will from in the of we differ refer the and our XXXX the you as forward-looking appendix These discussed might affect of plans, this file expect of and forward-looking GAAP advised cash today including factor call actual disclosures Form and risk obligation over started, to today presentation in of both earnings them. measures XX-K and also fiscal

fourth Good strategy which $XXX our as full vision in Class and morning, stockholders A joining fiscal expectations. health execution first, results, you May noncore we technology-enabled Global our to XXXX ahead, $X for approved us. and announce to quarter performance a morning, launched shares remain our a divest to to for share SXS also share care smarter another our year and to million our chain; supply third, under value something the Thank year common includes: of processes This of which paint hopeful will exceeded repurchase authorization; repurchase continuing advancing soon. everyone. assets, share the Board better for ongoing, billion and to and I our plan Health Contigo of have to I'm second, pleased which return are

then announcement. McKasson, on Before will retire we XX, begin, to more company advisor his retirement become a the until this through acknowledge date. joins Craig I morning's role in XXXX, Premier. Chief and our want December an on Administrative Officer, XX, successor will Craig than and Financial to years November with current decided XXXX, XX his remain after has executive

Following support the to to capacity retirement, in a continue Craig consulting for XX company. will serve months

for success contributions culture. our incredibly and Craig's grateful to We are company's

structure today. led approximately billion, and successful improvement the the originally formed $XXX expansion initial revenue Premier $X.X at over our the million corporate following of leading health integrated XXXX the tenure his XXXX the XXXX The from restructurings the integration mergers company to Craig public care During is strategic to XXXX offering. Premier, company Premier, through simplify to performance and initial growth

in Dentsply in publicly the as pleased Integra the Chief are with a Vice Vice manufacturing traded positions is Financial LifeSciences additional Officer Dentsply Prior Glenn is Corporation, President Holding to departure businesses. Craig's President company Officer announce Glenn Coleman years of Craig's and Executive Sirona, leading Operating Glenn successor. currently health Charlotte management along While as of XX we care bitter-sweet, the to Sirona, and market. joining financial Chief Executive with served global

the to We to Glenn grow are will Premier further thrilled and into future. welcome are to opportunities excited and experiences the about us help he bring

Turning and expectations. segments I customers, to for results team's and that and profitability am quarter performance. other fourth our the our full of report year and our in surpassed both dedication to our pleased thanks to revenue trust members

incredibly renewal team payers. From with this rate I'm expanding as XX% a performance in fueled outstanding core institutional strategic a for GPO was rate providers, SaaS of provider products. year a informatics fiscal role and technology a and achieving retention part the our XX% for our Our by for manufacturers retention proud standpoint, vital partner and member

collectively for our team targeted supply identified chain members. our Additionally, significant savings

Beyond beyond retention, growth boundaries. drive Premier partner choice those of traditional is increasingly for to looking the

selected chain outsourcing. In supply Our new market agreements we systems. partnership full fiscal pleased edge largest that annual chain to deals AllSpire $X.X is support competitively health from Premier history. X opening in purchase single to to secured more in technology Partners announce volume I'm supply Health doors than proposals one with its as volume, to GPO comanagement its national billion XXXX, Premier of enablement innovative the

momentum the that transformative that strategic for positions and differentiation. or the alters technology the believe shift a operational partners of a market several that market to providers health change, is have there financial have and sustainable contemplate the and the systems data, great them some of trajectory change We in reasons to people more to to deal implement

further now solution expand to clinical quarter secured fourth logos we perspective solution a integrated as of well plan major We also adjacent in payers, and manufacturers, which as health our support vision and continues to our continue sciences these use the life health into automate decision including markets. companies fiscal the health of Southwest market-leading will their authorization. From U.S., enterprise prior the network into care to AI XX health planning strategy delivery AI-enabled long-term onboarded materialize solution. new product new systems our our as with In care specific XXXX, we attract resource and

We insights united compliance these our and the our unparalleled capabilities robust technology our supply accurate are members and burden transparency integration believe the for our will to become This model health payment manufacturers customers. Most more health innovation ensure adding customers plan on of leveraged reporting part providers and accelerating deliver precision take executing our in recently, to and a other pave manufacturers care quality proven while technology digital will high we critical a reduce to and efficiencies the higher delivering way care chain for to enablement data driver entire with AI-enabled affordable exchange. We of use programs. the administrative this who timely and care. efficiency believe and provider We network health to in is on health in approach care. to for

turn is our fiscal to year health want an thank greatest of In of call at people. I closer our for communities. will provide a highlighting Craig repurchase fiscal to vision our and outperformed guidance mission and once we team and survey, global now indeed our Premier's strategic improving over that to I the asset program share for engagement initial benchmarks results, our update the again for again steadfast their commitment XXXX, its through look employee XXXX. on our

Mike. Thanks,

part to to like incredibly culture that amazing mission It's contribute would work health team, for such be our the Premier. to to and career of an my I'm an grateful with truly to improve of at say strong I honor communities. Premier's First, been

our both to members blended Total member period progress of expected prior the This in from net administrative continued the of were segment, our we Acute of from due in XXXX XXXX Services XX% renewal of group the markets provide the administrative Supply to represent the of as results. million, $XX higher X gross through $XXX.X part Care fees XX% an our update, turning in restructure our driven total level to member year growth Continuum GPO of well August fees. to fiscal contract as that share purchasing quarter increased by increases Now of fourth process. To onetime payments the approximately offset Chain their were increase high partially members and of termination as an our fee aggregate both continue in by segments. early million revenue approximately was agreements. net X% from In

experienced we business committed certain XX, with plan as license, of renewal support of to contributions XXXX currently to our now growth business, approximately lower through renewed representing have of members that from chain highly extended X/X sourcing result occurring fees. our supply renewals As other program. In software and services year additional the and in fiscal over GPO administrative our declined products. revenue growth consulting In remainder enterprise compared and as we being in XX% pricing Performance end of for GPO the fees segment, license agreements increase and period. finalize this services would We revenue, fiscal group's and was surpass, gross address in XXXX, process revenue prior to due demand direct member in XXXX, by this well in the Services primarily gross June group's an fiscal XXXX. In comanagement associated and our during administrative driven by the XXXX

the to grew more continued growth the Health Sciences, resulting Contigo Applied in growth double adjacent Remitra collectively our during experience Decision which year. businesses, digits full include XX% also Clinical our which We in Support, for businesses, and quarter, markets than

fee logistics support million chain direct member of for was partially Total and and in declined increase profitability. in support Supply the period; Clinical Services and EBITDA to million businesses, in sourcing net our $XXX.X mainly EBITDA by due our comanagement in and by revenue. the Performance higher compensation adjusted Decision Turning business Services Support due adjusted lower expense. growth due $XX.X a performance-related adjusted our business in Chain Applied aforementioned quarter. following to to the to increase offset incremental impacted in supply headcount second, income was profit of Sciences blended GPO the to The lower-than-normal aggregate share factors: an first, in GAAP decreased expenses growth EBITDA year margin increased costs prior in mainly

The impacted primarily average million first change non-health and from final in in quarter of fiscal sheet July resulting to in liquidity of finalized the the a per GPO from transaction. From to proceeds June flow share final decreased XXXX, factors our factors as primarily the in income $XXX.X adjusted $XXX.X increased $XXX.X share of sale that XXXX operations, a result and a price cash million sale GPO proceeds of tax same resulting received respect was that the from total due due balance prior from a accelerated net of current care transaction cash primarily impacted the of cash same $XXX.X for XX, flow we to year the $XXX.X received and repurchase perspective, payments. year. was Adjusted $XX.X of we weighted decreased $XXX.X payments cash primarily reduction of fiscal in million operations, The from for operations. With in the in care EBITDA, the decreased in million XXXX, flow earnings a count non-health adjusted of to prior our million as the XXXX share million million. Free fiscal due total purchase tax million aforementioned $XXX.X of XXXX. in from the including year, the operations

the cash the in XX% year. million full fiscal of for EBITDA Excluding of $XXX.X was XXXX tax flow the impact payments, adjusted free

sale was $XXX.X primarily Cash net of the XX, as with of mentioned and our as previously totaled $XX.X million June billion increase the the GPO June partially as of million XXXX, the cash compared XXXX. XX, the $XXX facility non-health driven care outstanding offset by operations, payments, well fiscal of equivalents as The credit our of use in balance XXXX. tax $X the of revolving the repayment X-year on first for of quarter repurchase cash by share accelerated million

We drawn credit no amount the continue on to facility. have

and million in million with partners XXXX focused deployment, $XXX.X and completed disciplined and we capital paid capital XXXX impact XXXX liability obligation those cash of fiscal will focused of common agreement associated currently respect complete in to free in XX in August accelerated and retirement to We stockholders. initial $XXX.X have and XXXX fiscal restructure, termination receivable XXXX to the balanced that also the paid common return We with approach share retired of former no tax shares on are continue our XXXX. addition Class that will in July X.X to $XXX connection million of million in to longer A beyond. With remaining million taking A on the limited more the flow payments to a Class shares than in our fiscal February transaction a be long be repurchase but term,

expect As share occur of execution recently of part $XXX Board market. A we currently share in of our approved shares repurchase repurchase authorization, another that $X open Class common the million our billion of the approved to

million repurchase dividend, We our totaled fiscal repurchase will XXXX. $XXX to progress remaining share in continue XXXX. The we share the assess fiscal under which the authorization quarterly through $XX.X augments as cash million

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

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

XXXX. Turning to our outlook for fiscal

any certain share incorporates of and future impact additional acquisitions. the or potential incorporate the market and million our repurchases the assumptions to it guidance any or does repurchase key related Our significant share $XXX business, not

guidance. provide our to on like In following impacting some clarity addition, would changes the I also

chain announced majority guidance are financial result of excluding in align conjunction evolution Supply supply businesses strategy our the as digital of the Health and previously segment these global In operational divest Remitra interest to of in capabilities Services with presenting contributions it to Contigo any Chain and GPO, the to for a beginning we with determined fiscal appropriate fiscal XXXX. business have businesses, our XXXX. SXS our we more more As from report Remitra's is strategic our plan part tightly

transaction, forward. feedback, shareholder on GPO taxes impact upon sold, of the close and we the and non-GAAP to received analyst it operations exclude revenues interest cash associated paid our following our imputed nonhealth based moving is measures appropriate from profitability expense of of proceeds Lastly, sale the decided the care including OMNIA

per transaction from effective We our impacts adjusted comparable adjusted earnings fiscal will adjusted a excluding the flow in income, cash free present EBITDA, on net share XXXX. these and OMNIA basis,

$XXX million software products $XXX is and fiscal million guidance Supply key these net which comprised and support follows: With full of ranges year $XXX are revenue mind, million to and segment of to of our sourcing $XXX $XX as revenue excluding Remitra. services Services revenue assumptions million revenue changes administrative XXXX of other in million, $XX includes Chain specific million, fees to license, now direct

excludes continue Contigo $XX fees of this net guidance segment to million million of and to to $X.XX care $XXX from to administrative $XXX net includes revenue member revenue OMNIA, Together, $XX these purchasing. Performance include million, from contributions and to our revenue non-health Remitra Our will in Services million revenue the billion. Health million revenue total related which $XXX businesses. produce

range We to $X.XX. earnings to $XXX expect the adjusted be in to EBITDA of share in range per million adjusted to $X.XX the $XXX million be of and

is Our guidance the assumptions following based also on expectations. and

our gross existing fees GPO continue, to and by member utilization new further of spend members. of the growth penetration we addition expect with levels administrative business, GPO In driven in current member

on blended to member range will increase We basis. continue to aggregate year XX% fee anticipate fiscal the for XXXX share low full a

by revenue Supply Performance Chain XXXX a result Services the consulting recognition provider license to business by our weighted. In we revenue be into business, in timing our our Supply to to termination recognition. member factored new agreements payments Services bookings and these than Services benefited perspective, of our of of and payments care supply have other business. growth XXXX chain from timing fiscal better continued our conversion during enterprise fiscal primarily finished segment, to support revenue expect software associated expect certain and of comanagement impacted we expect Chain of more engagements, driven we we of XXXX, any segment expansion be While adoption we do be the types back and our the revenue slightly not as expected to license, fiscal the a health From half due guidance. Also we cadence services

and our double-digit Support Decision to We businesses. Sciences continue growth expect in Applied Clinical

perspective, mentioned, segment half year-over-year impacted first with more a decision Remitra the in As segment previously are our to the revenue growth that changes the on weighted, cadence the profitability, many will business we expect report segment the Chain slightly also associated be we being be nature the quarter in lowest a fee decrease of back as XXXX. From expect in beginning Supply the to Performance to business, Services the fiscal with point revenue impact Services administrative business variable administrative in a fact comparable have fiscal XXXX in there for GPO year. Related the profitability net of fees not to in our share measures. the given in result costs

always However, we very we practice, our a take are matter cost our carefully seriously. structure. fiduciary responsibility normal And of as managing

I mentioned profitability we will now from exclude the as the addition, transaction In non-GAAP and impact earlier, of measures. our OMNIA

the expect half, margin full XX% of of continue fiscal free our profile to first tax we of the the EBITDA being given agreements. Related XX% cadence we perspective, revenue flow year, to quarter associated from enterprise expected in the first adjusted first cash, the subsidiary to our year. approximate of the expect year. anticipated benefit achieve license our adjusted approximately to to of our the first with expect EBITDA cash cash watermark to in be second favorable to the quarter half Lastly, we primarily the restructuring timing from with reorganization. a XXXX guidance a half we In the compared given perspective, XXXX of low year, and From XX% margin the for

for X% transition our connecting and today. us remain you call for your with tax quarter questions. months our committed to XXXX following As and expect early We first a X November. for of range to over fiscal call smooth now to coming in will next less time rate many appreciate we earnings and open a ensuring anticipate XXXX over successor joining the the look we'll my result, again fiscal a cash be I than years. Thanks X the forward similar

Instructions] [Operator

Nephron from The first comes Eric Percher question Research. with

with for what EBITDA to you I'll expectations ask on to some And here. underlying A congrats margin in speak year. Craig, across the question the the retirement say, to ask margin next expectations I'll reclassification. your is from the any for respect I'd impact like first, versus And assistance And segments. expectation to

Craig. for question. this Sure. the Eric, Thanks is

profiles of across business in As we margin that consistent fairly in in our to EBITDA for Chain we anticipate think margin we segment year. the would be will percentage, be, Services about EBITDA and terms the Supply mid-XXs anticipate, low fiscal to XXXX, the would the the fiscal

EBITDA in consistent quarter an it first from is an the direct watermark year Services mid-XXs that our be will we changes low the the we margin counteracted mid-XXs. the the is profile The below the that mid-XXs. The segment, be on incremental an out to and perspective Performance sourcing, think years guidance, GPO. last and the In will in over we in overall EBITDA supply the that for to anticipate would it expense we're margin. will side, then results X level discussed that chain with What relative seeing revenues obviously, adjusted of by the that share fee changes business margin removal the the average

Services Health of and that transfer the Contigo size in on removal that of And change business. in given Performance the scale obviously is the the an of business. side, revenues Remitra the has the impact margins the margins a On not material

you prior the And into to your visibility relative feel coming the That's how helpful. X year? margin the do into years,

we'll segment. as we of publically come into very the GPO Supply Chain we disclose to have renewals Services as Chain Chain the the the in do think we doing continue be in services. impact think good part that our year, we in We about the I Supply factored as that the feel Supply of

So about we I good that. feel think

Services side, Performance expectations. we margin think feel about I the good On the

occur. and fiscal we certain periodic we're year put when into to a quarters based always visibility for engagements guidance with the say, is Performance licenses basis, heading through on As of the I But throughout on similar consulting XXXX broad a segment. there enterprise Services and/or the out timing variability that

Davis Stephanie from comes question next The Barclays. with

on congrats the retirement. Craig,

be missed. going were You sorely to very

Stephanie, I appreciate that, you. thank

versus in the upside of of lot on then there's as and bookings from kind FY called be lot out pull is of much well, guidance changes a for up lumpiness this XQ and can was some of because in in a the guidance. some soft I know How the or a follow beat the some Services to quarter, just Performance underlying environment? moving forward and that wanted from in mainly timing There just 'XX there expectations expectations you pieces. I

great Stephanie. a question, Yes, it's

To through pull all, a it in First the in thought put kind on team of of say se but that successful came come quarter actually the it million line say I terms that we that I the what otherwise of of is $XX the fourth was perspective performance in in the pipeline. actually XXXX. of per was would wouldn't a engagements through that, might very have into we're ballpark finish forward, getting

a anticipating to that is the we a with is secondarily, are the slipped might past overcome the is of to that do we again, have but do that what lighter. to given anticipated would potential seen going bit in Performance teams QX. so from everything those, basis; And can years we've Services. terms why quarter it, X in be first be rates -- the impacting; consistent, obviously, we're quarter a, of the going is they to And and has have That growth into some on first year-over-year the think

guess that one. I on following kind No, up of

background a little frame Is demand softness. like a peers? us channel bit thinking Because near lot this the the, guess, more can demand the give like care And primary some guidance? of you're to departure environment. a normalization, broader some business, seen of distribution the hospital-facing a side, have right, of we've We better post then see GPO does on it there on COVID about headwinds of any names heard from medical you your what I on environment feel

This maybe system, think we of health is Mike. up of macro At Yes. digits. Stephanie. couple a utilization single to things, flat still level, is A the

there. occurring. So that still tailwind that's Obviously, we is do the believe there's exists regionality a there of lot

contract still terms run GPO, supply have chain you look at that in portfolio have the in rate the penetration. long a of we products including if of we very Secondarily,

will driving tools and contract continue of believe, developing, technologies that to we we've the been levels for us in of the growth higher provide terms So penetration.

Those You've in multiple organizations heard are contract obviously are standpoint are call. those times better. a that us penetrated highly this that more say performing from this

to that really capabilities, for our out about comanagement demand message When really, to market. We're in going we're that continue actually get co-sourcing, providing So excited to strong out that. -- the we're seeing those levels services, Stephanie, as us also to to drive and you the in to and unique higher allows the know, of leverage technologies tools a very penetration that our floor bring opportunity way.

that I So services standardization then picks more as you, believe be necessary. as do we around see capabilities opportunities. And we things going finally, up, and will of consolidation and kinds tell our are integrated to those

want seeing So we as those provide to to and for the services those again, areas. opportunities continue into we're us

question with next Partners. comes from Leerink The Michael Cherny

Mike. on Dan is Clark for This

to in start, of with sort Just fiscal wanted you fee your members, to year we admin you share? reset your ongoing 'XX should your continue to on grow are EBITDA based where in as is renewals think going

broader we If jump these and can the discussions could, have more provide. health to bit for to level, other at fee in in we around little actually allows do this that. that that Craig, I with answer before frame a the us around into having to want conversations these reset highest broader way admin services systems just I tools

Craig? this through go to continue sell opportunity us broader we capabilities. as at to I look do for to there an reset, our is continue So

this around fiscal be in previously But the XXXX actually establishing low might today, some question, not will to administrative fiscal think XX% do publicly share time. fee your the you consistent provide point with to would for question, remarks expect, made, We're guidance. Relative our anticipate in Mike. I've we're giving range. I that 'XX color XXXX as that we say, I guidance Thanks, Yes. at our

will continue 'XX the range. share We anticipate of and at that to that's been day, into 'XX. are would going will and rise within We to the prior And XX% have our with commentary. end impact consistent the do renewals that fee

XXXX. well growth But point, believe that poised forward. on moving positioned a business an do clearly growth So on through at basis we'll fiscal and EBITDA profitability kind the regain we its and that gone implication will has be to of have that prospective reset in

of as as sort are renewal then the you renewals? go for this folks you And it. you you bring conversations them of sort can talk your as about process, going opportunities how customers in that Got attach through rate Performance talking are have? those you with Services with Like

Yes.

question. First thank you all, for of the

We are cross-selling We it annual year. this as of plan. actually hyper focused on objectives part put our this

So obviously, of to help them are in care sort provide way the they opportunities, communities. their the advance

Our machine them way authorization, those look they real with look midsize health capabilities. helping at way those advantage systems serving of the to that, and with systems some ability the the learning co-managing they're do opportunities and Obviously, will prior to AI probably capabilities the not to in capabilities chain at bring HCC supply they those their health we help taking documentation, we value today. cases, are be up other for smaller, that those

a more those we'll chain. to way the continue of efficient supply will the have bring they continue can table to value focus We demonstrate discussions. as few just that these we areas do are help to be to on be that the But in them the we

we The mindset only through Craig. is going Premier this of is thing would I And we're process. have really add this renewal as that a do sort one

together, And opportunity getting they in And XXX%, and approach. We're Services. that about successful big in going to are integrated that Performance renewal be through through can about there's clearly, not the so thinking up teed capabilities it team margin the deliver that an services deal a opportunity way. obviously we but for growth future all improvement the GPO across, all but is set

Tassan Jessica comes with The question from Sandler. next Piper

I I'll Steph Congratulations left where on guess off off. your maybe retirement, Craig. kick

Is AllSpire. So win? co-sourcing co-management congratulations maybe what just -- to a any then the XX% the the there maybe contract can surrounding August you and us are terms typical with guess, understand in of fee help huge restructurings on were that GPO And that line nuances XXXX versus I just win engagement? of in circumstances with share?

Yes.

RFI/RFP of in a a terms obviously, our was to key from of I it was just process, So was the bit AllSpire, what get feedback team differentiation. little able

happening I the could part the number Number systems can think, in identify overall, technology most of in capabilities terms for to we have very, interested where products. for bring we a about systems AllSpire, that products, be the are able across provide savings, that's pricing from opportunities for our of what's was all penetration. it there's then those where one. broad very for to contract value that health to there's them standpoint and to that think I And AllSpire, of view opportunities help a importantly, they health were pricing two,

those think the selected that that were heard they the of were I so keynotes reasons some that And I Premier.

Yes, a because articulated. only I we last piggybacks The add but this for Craig. right the was the that pulling have won on all just in is go-to-market to on that question had where it reasons is through technology my response is one much I very GPO, Mike would addition approach, the the all thing Premier

just And is Okay. quarter to really be results. clear Awesome. wanted I my question on second fourth helpful. then the That's

no guidance? guidance, contemplated quarter, fees million early of in -- million the that $XX hit $XX fees in guide? that So such know fourth your kind just 'XX 'XX the I are term or there's I'm 'XX in curious hit your FY no were there and those was a in onetime the but such

the the in they results. established year. guidance occurred quarter one quarter chain, did These know the about supply I'll the in expectations When not guidance. guidance impacted so for We our the third the impacted, for was say, the fourth quarter about talk no, were on quarter, XXXX performance, termination contemplated in and we million X in but $XX the fiscal obviously not those. our The that didn't we third

Richard comes question with next Genuity. Close from The Canaccord

Craig, opportunities. Congratulations, been that questions would better A bit as of entering you more in of pipeline some asked enjoy. understanding. the examples talk a Mike, comanagement, from was a helpful uplift get be lot little the well into into my if co-management, just go And have the wondering about I already. could give you maybe like But of

the appreciate Thank question. you, Richard, I and

are to with inflation systems with continuing as experience you of issues. high-cost some all, issues and So health our labor first then know, obviously,

say it around that we're take savings. an up back I'll doing of in with driving one transformation Richard, total go approach we and level So how

opportunities bringing talk that see we're around folks upon there the data are to systems So health our improvement. where care for of we to the team based

technology And bring that really high-level are do capabilities are be cost and so how take be health care day, But systems improve could there providing. the advisory quality out There help out the it's -- the necessary. necessary. of that could at the of are needs end they we that

go through we that, into is distribution of part might of as a that do may and analysis that, areas And they'd procurement us a identified from that to advisory got phases look, could work, comanagement. some chain. what there some So opportunities from get standpoint, it that that they've mean be standpoint, to as for anything all that means supply it up shore like be of

structure beneficial service, to and identify what And for question, the so that's what's engagements, organizations. that obviously to upside? long providing #X. efficient is is them associated #X, there's more the your around that drive get those in to potentially we're that revenue there obviously, contract as opportunities can then opportunities levels term. And penetration. are then going capabilities bring in those most is #X, the higher our those opportunity Obviously, to through there with And become where and of help actually automation technology we'll

those from and And kinds are of contracts regional, things contracts so national penetration areas. not also only GPO, from around services our but more that purchase

be So work value to think systems. comanagement X with we continue those about the as health probably bring those more were that additional will doing X areas or

Okay. appreciate terminations. details And the a follow-up, then the on I

any those process that I the customers gone renewals in can the, that is are than through book book details expecting any individual rates -- how already of with? guess, additional part you've Or yet to have there you in part about thinking renewal the are the at that book? similar -- the of look has renew, of -- you you provide And As that? you're terms people different this

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

are there have say been to future. distinctions the wouldn't I the will of members composition and foremost, be renewed and the renewed First between in continue that now

member that based -- the retention that I'm organizations we of those conversations timing relationship those around have we've changes how approached within taking have and drive on We been expectations place back XX% be come renewals a occur. our the process, should couple thoughtful may when and I the terminations, year. to, GPO will had yes, we in but through of going this discussions had say to we this past and

we of the successful good renewals through our months. coming have navigate in that plan rates. as We strong have to feel and the will retention remainder place to to about organizational that move continue the believe the kind of continue very We teams over be we

Congratulations again Craig.

appreciate. you, Thank I

for Premier's This concludes Fourth session presentation. in Year you Conference and Call. question-and-answer Thank our XXXX attending today's Fiscal Full Quarter

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