for I reported market our Kevin. joining EBITDA After million. $XX of adjusted of quarter quarter appreciate you, $XXX call. everyone revenue closed XXXX earnings Thank second second we us the yesterday, million and
form largely revenue as personal provider through was our by performance Home of the an strong revenue and transportation in driven remote segments, segment. in in trips partially and costs, care our increase patient higher passed NEMT as which increase The includes in in our which monitoring division, well
positively contributed growth revenue division’s to adjusted Home EBITDA. Our
contracts the obtained revenue increased from shared in through expense. portion increased of the a our offset passing NEMT, for helped costs service we As risk
a to XX% which this revenue. impact pass-through EBITDA than our full our contract, of was negative adjusted represent from risk offset by NEMT benefit more However,
we our been a in it industry, services segments, in utilization for pandemic. remote for impact seeing Similar though generally are has patient contracts, the nation’s NEMT our recovery portion has are rise negative from a the services. we healthcare positive demand seeing a as strong of see to other progress which of our companies our Even personal we care monitoring increase in and in a this the
remain and I long-term optimistic ModivCare’s positioning strategy. about
Our unique position in healthcare needs us a market our a to amongst diverse and costs enables environment. in manage population continuously evolving the aging rapidly cater to complex industry a chronically regulatory customers’ ill rising and to
intricacies Medicaid the with the uncertainties are access pandemic to to during intervention around healthcare. ensuring clinical While a transportation vital current of significant particularly NEMT the component fluctuation complex, to and improving rose the segment redetermination, and access is
quarter. are this several key There discuss updates to
First, $X.X to from revenue higher-than-expected related our billion. and primarily volume increase we billion from to to is due trip XXXX a This to $X.XXX billion to increased NEMT billion provider $X.XX range revenue shared of guidance cost. incremental $X.X risk contract revenue
primarily revenue, higher $XXX offset to the delayed expected trip-related our early previously million and prior trip related XXXX, guidance million. This contract to were costs, XXXX $XXX we have million EBITDA from higher and in timing implementations attrition of including risk volumes to new being full years. from which contracts particularly is to our affecting in lowered segment, increase million to reduction adjusted Despite NEMT items our $XXX $XXX to contract
former less during employee. receivable quarter, would from operations, million, I balance address $XXX was with cash contract million with arbitration a payables, our decrease quarter negative a due to our flow onetime second the in net to which Next, settlement along like $X.X mainly $XX million a
the that a contracts, NEMT collections, balance large reducing we between shift a which a payments to temporary shared over the experienced and risk created timing Post year. more with pandemic, past have payable coupled been we mismatch
quarter of shift marks notable XXXX second our working capital. The in a
have We our our surpass payables. net a contract balance position where into era sheet receivables transitioning contract receivable disparities, resolved pandemic
largely occurred predictability reconciliation, now additional This flow. time to payments established anticipated, to large lines state than Furthermore, have of clients. adding earlier accelerate clear our layer few due for from cash these clients a
We anticipate of XXXX. half these balance year, in not out, our of the impacting positively collection for surpass repayments the the receivables second payable if flow rest to of the cash
our Our yielding effort is to realign needs customers’ results. contracts positive with
have some upside for pandemic safeguarded trading era long-term our margins, We stability.
a indicating improved cash our between P&L Now customer mirrors our and balance and profitability financial flow closely, more management satisfaction.
second $XXX.X contract payables. on million revolving on to repayments quarter, borrowed the we During support our credit facility
knew leverage ratio our net As We going XX, of to this leverage times. were was point. X.X June we XXXX, at be
with as we $XX anticipated key relationships, of prior contract earlier, history. to million customer QX. payables customers approximately off we noted line in long-term Prioritizing agreed couple of accelerate paying However, related a into
the and anticipate cash of for normalized Moving be capital-intensive strong our low flow expectations utilize cash to This intend second quarterly overview presentation IR a a revolver will forward, supplemental which the we cash businesses, we view website of XXXX. capital, the detailed on fueled by generating substantial core our flow, uplift flow our half from working paydowns. provides for
the personal monitoring activities. non-cash and operation that is cash impact goodwill important It conclude expense point, in balance sheet non-cash our or and not a to annual within To our resulted this impairment patient care charge assessment $XXX note our does of flows goodwill million segments. a is remote ongoing
as what strategy market Despite are with with aligns charge, value-based of value by evidenced care non-cash segments remote their see fair contracts. and these unlock value. segments’ And tenets it that well. care, personal monitoring supportive this new arrangements Instead care more, to carrying we performing our current is with segment key patient
will of long-term remain surpass about measures value. and we the strategic shareholder This expectations the performance We our driving more their makes their anticipate prospects, and on focused us to deliver acquisition. enthusiastic performance time ensure initial at long-term the
some industry care redetermination. is an taken investors, to eligible a aggressive has access Next, I of our of thoughtful are that to to the states more being mind and been redetermination, of not have Medicaid want There approach disrupted. is to ensure lot topic Medicaid address redetermination about others of the top members all information
XX by states Medicaid terminations to and That expectations. forecast from issues. for and of states mitigation track having XX evidence said, number seen received other with we address to-date, approval membership minimal continues By our impact a our plans redeterminations line procedural have pausing in to
affected I million XX.X and would are also our out redetermination. Advantage, are million by which like are that of members, Medicaid to point million not X.X XX.X Medicare
membership membership existing growth. XX% primarily XXXX, June due MA million contract new has six from Our and contract since grown or wins XX, to
MA to redetermination impacts. in a disenrollment, counterbalance some lead programs, providing redetermination to regular While may and Medicaid growth we expect Medicaid
our we For an XXXX, approximately to the half of could Medicaid is of create $X which million second redetermination embedded headwind in estimate adjusted million, guidance. $XX EBITDA
XXXX. towards Looking
to We strategic discuss $XX currently of expected impact XX-months initiatives growth adjusted are I over later, forecasting $XX million gross $XX million are next as savings EBITDA million $XX potential Yet, of our to to to from XX-months. will a drive to redetermination. the million
models, Rest our seeing in with insights industry projects feedback indicate will aligned and manageable. and assured, what the redetermination be customer our data market we are
things progress. more We as updates will provide
Jessica healthcare Jessica and leadership IT expertise to of eager to a our Kral our Before some updates Officer. has came UnitedHealthcare, to highlights, and an team. on wealth to We us brings Chief substantial some Information I’m brought recently experience as team. our operational from background I our in and she new of provide review extensive
he and our and new Officer, significant will he with company’s bolstering his name Further This has in will we supporting organizations prior our and our hired announce team fostering nurturing we growth. team, once members employees, field commitments. instrumental further a People experience individual fulfills XX,XXX his company Chief proven be
is issue can have will early also to are and will X-K. a I’m announce direction. which release name, join as deep has us our experience in a I Financial from received September a with once role announce and you thrilled and Form healthcare pivotal we we who also individual understanding career, she multi-industry an to that future talented will What in agreement shaping Chief play Officer, next able multi-decade and our officially we her experienced a press tell
team continue additions, to our individuals With to fields. our executive attract commitment recent these reflect exceptional will in respective their unwavering
confident about place individuals drive have And strategy these in it to forward. say, As I’m of all we team once is board, right and the transformation will often all our we that on the people.
steadfast Lastly, to two want I while I CEO note, our their I the I’m extraordinary jobs. support a to balance and dual juggle extend roles of for can that team on excited heartfelt a having gratitude to lighter about fun affirm On CFO.
our the market. let’s strategy change important the Starting in market, discuss and an with execution. Now segment
the from shift navigate revolutionized by which is is we fee-for-service. being industry that landscape, is the clear it healthcare mandates, CMS fee-for-value to strategic new the accelerating evolving As rapidly
Medicare value-based member payment holistic XXX% more of paradigm Medicare by This approximately and of is is and Advantage towards alternative driving also anticipated a It will Medicaid traditional that transition towards XXXX, shift XX% models. care.
and is and As costs that combines payers grappled complex chronically affordability providers with evolving reimbursement the and an coupled rates, healthcare paramount. quest ill experience interconnected landscape, with an tighter populations, quality, regulatory - integrated for and higher services
and the three, excellence sales arrangement a needs: through capabilities to to have models. one, in market these platform; clinical scalable we digital ModivCare, At develop pressing platform customer-centric parts separated participate enhanced and and our a two, operational build into automation; strategy and three enhance response in growth value-based
our fast-paced, is data-driven powered is which strategy artificial intelligence Our by digital in era. transformation, crucial
around revolves excellence, which solid we strategy of are automation the The and have a scaled our sets first of we further platform of improvements operational over the for year phase past our proud made solutions. foundation
culture, a and decentralized model. made past and model we operations considerable our shared Over upgrading have a from the and transitioning central strides year, talent disparate in service to
to this a by Phase has understand $XX and sales been management, that model transformation, marketing running prioritizes relationship X, through new backed salary better hunting growth and referral To parallel an upgrade execution X, scope to approximately transitioned annual million opportunities, and operations. of million. Phase $XX reallocate involves we of and approximately all centralized of fostering expect organization the coordinated back
addition value-based Finally, Phase to participate in in fee-for-service. will X arrangements
data harness and customers, each enabling strengthen digital being strategies, each design together. engagement members providing capabilities clinical conflicting three models, to connected other, augment and We for other our Far our to connections developed complement will from by to virtual newly are supportive-care-services our care. designed longitudinal phases collection these
for into now delve Let’s each of our our progress segments.
NEMT our and improved has services. focus facilitated technology operational on centralization considerably Our by excellence
and reduced meeting our quality performance key miss in We as indicators, customers’ on-time performance our trips. exceeding are such or requirements as service level seen all and
reduce Our multimodal customer to has costs. increased transportation and led strategy satisfaction partnership
We centers through tech-enabled are traditional options, transportation as key at unified lower and to omnichannel well. transitioning from dispatch engagement member priority processes call cost a is improving
over to We XX-months the automation operational excellence centralization, continued $XX these efforts. next savings through million anticipate $XX XX-months between and million to
We expect these and redetermination of initiatives will mitigate utilization. headwinds Medicaid the higher
albeit results, in new total promising Our sales NEMT shown of which strategy MCO than with nearly Year-to-date, businesses the within we $XXX XX, we million, XXXX. wanted. of commence June value will secured slower have has segment through all a contract
contract contract renewals amounts $XXX three- the won million and expansions, the total value to to this over Including five-year terms. contract over year
up $X.X contracts five-years, currently which next billion the of million. for we Over approximately NEMT RFP, state $XXX of worth foresee around serve we
Our levels business, in than team been historically. are service successful retaining higher delivering we has and
are We in and additional to have win share. we retaining confident we contracts market the and convert the majority aim of
Additionally, holistic continue more in transportation. offer approximately opportunities which frankly, more pursue we just our MCO manning of and, that beyond $XXX pipeline, receptive we million new will to solutions is
our and our care, regulatory on personal streamlined better excellence operational has In services, focus compliance. centralization enabling
from full transformation model. disparate unified a of this on embarked local shifting model more regional to segment, have a We
resources This us growth. to to reallocate has also allowed
the the increased of half X.X% to we as year. projected additional momentum second gain the in Ours in growth continue second quarter towards
supportive is from for we it noting commenting stakeholders will our imbalance important the professionalization. role, now. supply And and rule will CMS’ feedback Quickly optimistic concerns further we are with the not care final is HCBS that industry implemented it note that further that aligned rule however, have until exacerbate of It services. personal wage demand drive on provision about will expressing proposed once XX/XX rule, four-years the issued, the the be to
strategies us Guardian also monitoring excellence to operational integrating our efficiency, provide segment, elevated the have RPM improved while care last from levels, allowing the In May. acquisition Medical
leveraged to have growth. efficiency, enable We boost vital collection technology data and fostering
market seeing strong maintaining are we and PERS, pipeline. gains Within share
quarter. year-over-year example, were up activations first XX% enrollments For to compared XX% increased and
vital year. to We this starting medication management are expect also our capabilities meaningful enhance adding expansion and and
model previously members, the longitudinal Under the developed strategy, by team, our customers’ and data to enabling us Higi careful Healthcare integrates our virtual cutting-edge newly facilitating with operational dedicated product led innovation capabilities. management our excellence technology newly develop strategy a Bennett, of clinical and value-based and This engagement and to our empowers strategy data from capture of Jeff arrangements. management CEO Solutions,
generate payments. to expect we value-based innovation from and XXXX, dollars meaningful In
on member approach arrangements that to active opportunities have customers’ move the that to confidence programs our innovation and give We value-based focused into insights needs. aligned us our is
to significant continued value equity momentum I brief investment another by update and Matrix XX%. for second holds we on like in driven believe a assessment Matrix Medical, would provide the saw in our which of quarter quarter strong growth ModivCare. delivered
adjusted $XX of EBITDA to million million results from. still the context, to range anchor $XXX is value For correct
We value with our time. at Frazier are and to that minority Matrix in trajectory is confident XX% the significant right monetizing we aligned on the remain interest create right
us. to last team would dedication. been year closing, In a thank their entire The like significant has period our I for and of for work change hard
done things highest providing service help quality to to as have amazing business. we committed remained have We of this transform the
build culture what transformation meets we I’m incredibly where to compassion undergone. we forward. to and have guide our the have as achieved We proud of profitability continue us continue move on and will we
We the I on health. are continuing we as focused determinants right to clearly growing supportive-care-services social remain our trajectory, the of see on committed this and
Head pass would Ken. the Shepard, quarter second provide Ken overview of an who like to will I Finance, our to performance. of Now financial call our
