EVH - Earnings call transcript Q4 2020

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Operator

Welcome to Evolent Health’s Earnings Conference Call for the Quarter and Year Ended December 31, 2020.

As a reminder, this conference call is being recorded.

Your host for the call today is Mr. Seth Blackley, Chief Executive Officer of Evolent Health. This call will be archived and available later this evening and for the next week via webcast on the company’s website in the section entitled Investor Relations. introductory important some is information. There forward-looking This the under call contains U.S. statements laws. securities federal or statements and differ results experience risks subject materially expectations. that historical These to actual uncertainties are could cause from present to of A company’s periodic Exchange filings. current the are Commission, the description cautionary that of risks uncertainties included found reports Securities can the with and statements and filed including in be and the some in

and earlier outlook, news For please to company’s additional information quarter issued on its press results release today. the second refer

today. reminder, are a measures release during the As on ir.evolenthealth.com, company’s will of reconciliations discussed and direct press over the of the I the posted to today’s non-GAAP most the website, the call SEC comparable call section Investor turn company issued Chief company’s available Seth to today the Blackley. and earlier GAAP Mr. this Relations Executive At Officer, measures company’s by time, filed in the X-K with the

Seth Blackley

plan, with Chief am growth; open the are: John a Thank Johnson, our including strategic will results, Financial update one, I the you evening by and Officer. Evolent Blackley, our joined I good Chief Seth call and Executive am of evening. optimal I summary key Health this margins; our of strong recent on organic and EBITDA two, themes allocation. expanding an three, of which capital Officer

close an areas. how our summary as the partners. XXXX and and and organization guidance. it market quarter detailed our I’ll update Next, and us hand XXXX John on business and the of differentiated value the year from an with of macro take environment. to Afterwards, I’ll across the on then will update provide provide as share more fourth insights solutions focus through I’ll a highlights I to well for key our results financial drive review a full

set are questions turning to very of the financials at we’ll the that we before the that we always, XXXX. our results, feel heading strong to will XXXX I take are say into be and end up pleased well happy with As call. we

the terms the quarter, XX, $XXX.X for XX, financial the year. compared for the XXXX, XX.X% quarter ended the to compared the ended of year XXXX, to year Adjusted the million XXXX, million revenue Adjusted the for of the the results the increased to $X ended quarter million ended for In XXXX. XX, EBITDA XXXX, was for period. overview December increased for XX, December comparable ended XX%, $XX prior million year quarter XXXX. quarter and XX, from total $XX.X $X.X $XX.X December to year million negative billion Revenue EBITDA $XXX.X was million December compared for XX, December ended for prior December

XXXX, additional lives December full our and executed that had Century million on we our we technology suite services on XX, New As plus X.X approximately financial million of lives the year. the an objectives Overall, for platform X.X platform. on pleased key we’re

achieving to or of Next, the strategic growth, we track, target strong be to first rates. I’ll status continue our organic the exceeding an on against plan. respect With theme on update our growth provide

core top Health as target, new Molina. XXXX drive utilize base end new and EmblemHealth, services led new partner regional X it we Neighborhood across and X Florida has We XXXX. our value in XXXX, And continue payer be in our and through total new solutions demonstrates announce was partners diversity for and partner strong including our to cost to sales momentum growth Evolent we Partners, of and for with Island, This Medicare, and care additions of and MSAs. of groups differentiated growth Care Utah entered to depth our our of to business. excited plan physician products Plan the on solution, two Our are to partner Care Accountable large market added marketplace. our in strong the beyond and X provider Physicians Rhode into Today, we the of same-store performance partnerships Blue the at objectives

the high growth in by given strong two markets these performance and respective the historical reputations encouraged physician We’re potential these groups. of clinical

as to geographies. for and By quality cost continue We see offering incremental value we physician-led efficient, our care Evolent risk-bearing build high Partners with Care the these of physicians, market. with unlock demand total we organizations expand and opportunities partnering

growth X-year lives Cross Texas Including to under a Century of regionally. increased today, approximately New the of XXXX total addition Care strong Evolent up of to Evolent arrangement successfully represents quarter expanded total markets XX% XX,XXX, under of under announced management growth and total partnerships, network Centene the fourth our of cost entering care XXXX new several our Care these with We Partners a and with for by is of management Shield specialty provider Partners Blue for this. a our Health, sales base the which XXXX. payer Blue from platform, expanded in In lives Furthermore, has in we state seeing commercial. renewal into large lives same-store management expansions which are in Texas like

& X Centene QX Technology states We to expect Century using are Suite, New of pleased report in we XX, to that plans are December as Services and more our XXXX. add Health XXXX,

are to In our market, pediatrics related have visibility we and believe, XXXX. the addition demand momentum we radiation enhance select we the into We in and value Adding increasingly also our ROI markets. services will to therefore, partners. added remains good fees in and oncology management the our expanding The have pipeline geographies, scope, Centene in see to solutions and to strong.

our our announced we’re towards way of growth. on partnerships, top target today, also well mid-teens our organic long-term diversified With the target physician line to a X new towards solutions X and X XXXX new groups for of growth across

line effort, our our to reduction continue margins, we theme strategic expectations. our in Turning with second on progress make cost expanding of to

expand achieve positive of and to were course the cash and costs, able to of ahead margins flow reduce XXXX, Over we schedule. EBITDA scale drive

Looking arrangements, in discuss performance-based overhead drive dedicated which results fourth our exceeded performance part our a clinical margins more for we guidance, few to our partner will at detail mostly quarter, by in deliver Continuing minutes. financial coupled XXXX. believe position with in initiatives, organizations, to cost John the our and our results driven operational enhanced strong strong in us will in

to are on reach medium-term EBITDA mid-teens margins. track We also goal of our

strategic I all closed the Passport assets. into our exit plan XXXX September closed Molina balance have We core third monetize the Finally, with transaction delivered February want health plan and agreements and commitment we with an on focus and that portfolio transaction the theme, optimization. businesses respect update now Across X, our sheet our Health XXXX, to health or on we provide further to monetized to Anthem entered on XXXX. with to in Lighthouse our

definitive True As of entered into HealthCare Health these plan health are New to sell Anthem. Both a previously transactions Miami plan half announced during into and sell first to occur Children’s expected we’ve at Mexico to definitive of the a XXXX. agreement entered assets health of JPMorgan conference, Bright the to agreement to

We Bright, mid-teens And focus, of have allowed X. as will all the significant capital services case we that exceed We paid Molina the led of And growth plans We delever. monetization a our EBITDA and arrangements down and us the conclusion, on made and transactions key on we capital senior margins. as loan well. to term services health strategic investments plan to path from ongoing in senior high today, areas. no aggregate, strong supports have business, to in our focused on position disciplined our The debt. are cost our remain January three have the In cash of have progress invested. the optimization return confident and our focus our

continuing across in like in business, market. to the macro control what we healthcare to to updates environment the costs and providing I’d drive strong momentum Before on need the the overall how touch see is

the that Biden adoption with or administration, acceleration the solutions. our seeing Medicaid COVID, populations protection renewed tailwind First, measures expansion and Affordable Act cost-reducing of energy of for to the a fight be and will Care of we’re

projected focus state base increasing budgets, CMS and reduction. tax will Medicare to and we pressure and on years, insolvency similar state X feel pressure like Medicare federal and A cost to further Part trust X the accelerate budgets the is is state ours. ways occur solutions in fund accelerate move of and on this erosion to continue on pressure adopt the causing to governments to Second, Medicaid to

is X-sided evergreen Continued Pathways support risk Success. in MSSP, partners like to very encouraging of for our programs

as geographic are as as model and accelerate and to refined, model opportunities likely view Newer these we, models, designs those as well. therefore, promising are the long-term Direct such Contracting

In well post-COVID accelerating summary, Advantage healthcare we of a the Third risk sales take feel positioned challenging across unemployment, macro the advantage opportunities Evolent business. combination and is and favorable, coding plans environment’s finally, to are that costs higher and environment for the Medicare these trends. of

I to business want highlight our activities and Turning to achievements across Evolent solutions. updates. recent

First, through and our cardiac the cross-sell. management New quality continues managing scope cancer on Century of offering cost geographies, and Health, and build focused to across specialty care

on of is we’re the the very Molina XXXX. launch Blue Kentucky. In technology Washington of as to New this Molina XXXX, Centene XX, with the strong announced on The to was Florida of we addition December Century later Healthcare live by year. is And announce Health and market to expansion, Medicare pleased across first track previously uptake earlier, lives solution mentioned million Light Century New now in in half our platform X.X

under expansion moniker. we separately full lives John platform publish As moment, given will and the services the on this this suite in will product, from of technology the now discuss a membership our rapid

total clinical focused engagement of quality approach and costs population Evolent continues improve outcomes. cost Second, and our a achieve care offering provider health strong to Partners, to provider-driven Care lower management on

lives, to over excited approximately network in lives equivalent lives These million existing represent $XXX managing and physicians As total mentioned now markets. over in of earlier, XXXX. X,XXX these plan physician partnerships is our approximately We XX,XXX under which management have premium for annual we’re our XX,XXX the regions. network in X% in expand health our

a this for million our fees Care savings opportunity generated based beyond. this Across of We and the net for recognize exceeded EBITDA don’t our XXXX While strategic Partners solution $XXX Care the and on a Evolent QX of to performance results. premium. as view in our contributing gross XXXX, entire $XXX fixed we Evolent million, on is Partners opportunity revenue on combination our positive expectations,

provides experience in health in Evolent Our over the population alternatives Care that to groups decade these of drove market. major differentiators the physician the leading select Partners three market

priorities. information technology to First, Identifi real-time highest with automated our provides them allowing platform most the vulnerable reporting, proprietary the physicians and patients and identify

As for for easy while it each the called Panel and scores a new launched critical prioritizes we the to prioritization physician practice an all in makes that The Insight example, module interventions XXXX practice. programs, focus understanding clinical interventions max also clinical risk target and our on the those reaching adjustment goal of highest yield for suite and interventions, incentives physicians. including gap to across proprietary for

based and Second, our population personalized program targets a patients. strategy clinical impactable health on is to approach

communication Our patients and office, care as the coordinate and group are health with at preventable providers workers to cost. providing an better the and extension care community increase in independent of engagement advisers avoid remain lower physician direct We act while physician can readmissions, care. a and

cost record a we superior track success enabling drive deliver savings and care. proven quality Third, in of have providers to

than supported a program receiving point in $XX that $XX CMS next-gen savings savings X more Care by Medicare, million in ACO the solution, payments of the combined As that a earned value reference for in announced million. share XXXX, Evolent recently for created the Partners for Evolent ACOs the

we’re and as beginning ACOs proven in leveraged outperformed addition, a The approximately traction well on on can Contracting. record well with care as is savings cost XX% quality populations, of as In future as to scores. good track as ACO where other with programs outperforming program private of such total program our be other previously solutions next-gen by gain the CMS discussed as average they Direct payer example

current providers Finally, Services, operations new payers operational simplification on focused administrative Evolent to performance offering, service our and to customers. Health and members provide with outstanding streamline continues helping and strong achieve

industry-leading more Maryland. January X, go-live to at health in Physicians solution. with the The which share to went and our a led XXX,XXX solutions end-to-end support live administrative by providers recent also are our the beneficiaries risk-bearing plans Medicaid than unique XXXX, pleased on Care, launch successful exemplifies team value, coupling clinical We provide Maryland

positioned confidence Our the entering have performance, ultimately learning we are savings drives for well customers Overall, intense feel cost cost and we our and focus on for consumers. our we lowers in machine XXXX. very

Before provide I we’ll John, preview to I a XXXX. it organizing on be how turn wanted for to

segments. expected business divestiture our With of we the will True Health, reorganize into services X

care of our Evolent include total The will which Health management cost first will and the Partners physician-oriented along with solutions, and solutions be Century specialty clinical Care brands. New

will infrastructure. our will certain be Services, population Health health segment house Evolent supporting simplification administrative which in second solution The

We to QX I our results our details the performance it that, will turn segments give financials. with begin of will to on additional as as With well to report XXXX these financial provide to John guidance.

John Johnson

we Seth evening for adjusted pleased our to XXXX exceeding end Overall, everyone. of are targets. good revenue Thanks, the with and and achievement our both financial our ranges high goals, relative EBITDA

same-store across financial throughout a with to we exceeded base revenue model, against expectations, Our entered our our as results same growth. attractive commitment strong to in into growth. high strong demonstrate XXXX carry the year We disciplined growth momentum into consistently visibility new Seth addition and adding execute strong of And XXXX. we clients mentioned, our driving XXXX X that

billion, million revenue, services XXXX, year full $X organic including represented the XXXX. For which $XXX growth XX% of in had services revenue in over we of

ongoing sequential line, expansion, our cost bottom over for year, combined continued further part year disciplined of cash specifically, fourth by and efforts. positively and due the strength improvement for driven results allowed our shared pandemic. adjusted achieved representing basis free was approach improvement the In This million XXXX the quarter, target higher-than-forecasted XXX EBITDA savings by our adjusted margin. EBITDA our and primarily utilization medical in Adjusted EBITDA across with our a performance-based revenue control in to profitability in revenue, year. investment strong coronavirus or development, the point the focus in we arrangements capitalized X.X% a to performance-based On both software the us was achieve $XX.X flow arrangements impacted to on lower-than-forecasted positive full

to containment be near operating to and our term, the driven the by of strong. expect continues volatility we in earnings While industry pandemic cost underlying the power our growth continue the add to both to efforts, business, our

XX% turning $X.XX detailed common million, prior quarter for to quarter period the year. the EBITDA Adjusted $XXX.X the revenue our Adjusted of the or same impact the in per available Now, quarter through mostly partner the let through me million the Class million of share $X.X for minus $XX.X per $X.X year-over-year guidance. to was million to or fourth compared take loss additions results, results cross-sell. shareholders $X.X relative minus with year. prior same period common increased common minus grew A consolidated you $X.XX Beginning minus before to million in our new for share of to and

$XXX Turning increased same to EBITDA prior segment, results services increase driven prior quarter our our our in The million $XXX.X primarily base. the expansions for in fourth by the services up period compared $X.X to XX.X% segment, new fourth cross-sell in partner the was segment the quarter to from partner our quarter additions within by $XX.X revenue of million, in was million year. revenue Adjusted from year. and existing million services services

was Health, of a $XX.X we of X Turning the as in to Adjusted reflective first Bright percentage True Health in minus the of of the to was was for both expenses quarter, fourth modest premium expense as agreement increase business. Health months fourth an entered deficiency revenue of and of the premium the an have had the million. million reserve quarter well line of bounce which sell XX% the our against to Claims roughly over we quarter. EBITDA medical back accrual True a premium federal into planned as taken XX% from that segment, revenue year $X.X

cash, investments, cash Passport. balance to in accounts $XXX.X in to finished quarter $XXX.X including cash we wind related million the with and regulated down held fourth equivalents of the Turning in sheet, the million

also $XXX.X represents of the $XX.X Cash available sheet, versus cash held in note to for on with the for capitalized Capital million granted end from of was third by loan associated quarter of million increase events our as million Ares retired an first, cash, as principally this Corporation Ares driven to cash performance in warrants software the quarter. in our from well development with and XXXX Passport repaid EBITDA the December in the million. deployed $XX we quarter, cash. million returned our January financing balance Two Excluding adjusted $XX Passport, the term $X.X strong

million received forma these two items, cash for an million. in January. Passport $XXX.X available XX/XX/XXXX $XX in Pro also additional from was We cash early our balance

less other differentiating the senior and An no ability EBITDA no maintaining be while suite expect adjusted expansion Xx have from cardiology. give which continue margins performance until maturities was balance will on XXXX today. debt rapid to be our us than CapEx outstanding We suite a and delivers in And services product place Xx to services and partners aside sheet. beyond, our offering. notes, million core balance can and of XXXX debt invest strategic development XXXX positive gross the technology that at to for to across in for in ‘XX our have other strong convertible and strong $XX our important the This our ROI achievement oncology higher dominant we

a perspective, the value In further addition margins, for expansion a the platform to foothold XXXX, across By per potential end opportunity up-sell to member driving go-to-market our platform average offering gives demonstrate new at partners, was attractive $X.XX and from suite. serving us to month. an of this deployed health per to covering plan X.X fee the of of performance lives million the as partners this

modestly this Given on full quarter QX. in platform which from we our delineate the performance strategic X.X of XXXX, had Health X.X forward. XX, when product will lives as suite, up these On the December our announce in Century we each members in portfolio, million platform, the New separately importance services we million of lives lives, going includes approximately

to prior period services Our was in $XX.XX quarter for for year. the platform the PMPMC same average $XX.XX compared full the

members and segments, with will And XXXX New making operation held that to Health reported discontinued our we on and a To adding such, the our for X True consistent our business, financials for financials we business with signed QX to New tech reported sell beginning our number. business. are services end, with only as as into provide for Mexico, in on guiding transparency the how be membership now Century XXXX as sale and segment services to greater reorganizing we report depth outlook, Health some results. reportable changes we agreement Turning services are separately the we are True our strategy. evolving our are a

we top strong services line, business, growth year organic come exceed Passport. into the with On to in the the visibility XX% excluding

In XX% fact, over our the revenue visibility into we of midpoint have guidance.

In terms performance-based our despite of EBITDA top the our combined profitability, adjusted XXXX the our cost work, outperformance arrangements, disposition with of Passport. on in of will progress strength on even increase our of the

well Specifically, XXX for basis future initiatives expansion XXXX us set guidance our the These an projects midpoint incremental point over of margin to plan. our up according improvement XXXX profitability our results. also

will Looking our of as new revenue and performance-based economics the recognition, based EBITDA other inter-quarter year, across usual factors. partner savings timing go-lives, vary shared on

guidance. Now let to me turn

For we expect to to to we million. respect million million. $XXX a $XX forecasting million range $XXX $XX of revenue full the year full of With year, total are adjusted EBITDA,

forecasting it the million. back that, For quarter Seth. we revenue we With are quarter And first $XX of $XXX for million. the forecasting I over turn specifically, to are million $XX to total first will $XXX to of adjusted million EBITDA finally,

Seth Blackley

on key our close as with updates to want as I messages. few of organization a John. summary a our Thanks, well

strategic the of us. the organization, execute be Evolent plan. for a healthcare’s with have on strong we a differentiator a very for of and and at place be experience leadership continue bench talent, to will team to our Looking deep in talent themes continues destination key top a to decades

advantage allowed This engagement top communication strong talent of culture. individual leadership XXXX. and gives focus retain transparent achieve and strong close well engagement, for score employee Our firm-wide across as to and development a performers us on a us to as the organization long-term has a competitive XX% world-class

XX% Corporate humility. company Index Equality honesty Human organization, Campaign mission-driven for supporting and organic Across firm-wide and are received diversity, equity, promoting report for score on launched I across Foundation’s our a honored talented our of proud recently to newly trended dedicated target Evolent efficiently our strong inclusion, at atmosphere culture work summary, and a Rights score that third, XXX that perfect initiatives. and and have fostered year. positively executed allocating alongside I’m reflects and of our achieving on we DE&I the inclusion As XXXX. In margins; to team capital. culture differentiated second of development XXXX, an a drive to scaling our business driving with respect, leader groups also appointed debuted mid-teens inclusion and bias and business the resource enhanced and the also close John deeply focus our solutions; on growth employees educating X the on to and strategy of and growth

high year. formal level us for participating questions. visibility to strong gives in into XXXX our everyone are Thanks With end remarks that, and take the targets confidence we’ll we achieving Our for call. tonight’s our in happy

Operator

Ryan Daniels Our you. Thank [Operator comes question from William first Blair. go Please ahead. with Instructions]

Ryan Daniels

for the color. hit I and guys. But market Thanks I be momentum systems. towards in comments. in so for general partnerships appears to taking seems lot late. apologize groups. physician I this with all you the call, the hopped of prepared And another had doctor on the like on I shifting if Yes, know versus a little healthcare bit risk-bearing in lately questions a

that’s means curious resonating on and you in So that comment rates? if can your what Evolent how I’m close and to and it pipeline phenomenon

Seth Blackley

happy to. Ryan, Yes,

the I segment, are think in over we couple independent to groups years. groups, physician of particular provider our frequently last you’re right. Within more sales physician selling

physician results groups proves groups getting kind nature in and based you results entrepreneurial assets system out and health aggressive As of the of and that the of of that systems have point. kind nimble ACO they both have it slightly experience, had we’ve the to look the point and them experience And physician more more when next-gen at the on on without some just the of of decade total be – we’re last care. thing, starting that sort found and health where at allows the attacking the cost the

announced And shifted last this years last think, to XX particularly our Ryan. so We two category, new we few direction. sales months, lots the heard good opportunity and And the as that we today this business XX down the groups think we you’ve entire lot of savings as are Partners success, examples of over a we in I of off opportunity that The had of think when – activities Evolent the about that premium, on million have an Care have a signed that. $XXX announcements in that I unit now you based EBITDA million on – of premium. $XXX an

is And physician I and obviously, efficient to aligned have, couldn’t continue about feel sector over time. we think And to the more see you’ll providers setup so having better the critical down that. we

Ryan Daniels

is core That’s are the million helpful. that of technology just reported tonight kind services or X.X in And the newer version launched include then the very of the regards platform, Century New the you and well? from that does that lives year that offering New exclusively Century new on in to that as lighter this metric you

Seth Blackley

newer spots. I’d spot across it’s bright say We the just And the – bright had look, Ryan. That’s it’s year. platform, several a

example for larger them. a quickly then this And plan, those Blue is announced nice is opportunities suite, we nice to Florida lives opportunity have on think of I across rollout way profile. full X.X around nice relationship that and around back It’s the that. come margin last which the has the one year it it creates and performance million a of is to us a really an

so, product. punch this And of set one-two it’s rollout with that up nice the a life kind is of

Ryan Daniels

my Yes. like impressive seems seems months it’s in about product math, which less launched XX guess – right, I just $XX just a than million rate, it’s very ago. it run if it’s for you

run agree if math, that million around that know but it is don’t rate? you I So would $XX with

John Johnson

John. this is Ryan,

Your rollout and math is that we’re with right. – yes, product. expansion of pleased the of very about And rapid

Ryan Daniels

this How go perhaps past, consider at are last should curious I talked foot clients version, then in the for we lighter versus starter looking in. the more but me. core there And this they before a that pipeline the the I’m mean about New water of one now have they we’ve kind is this if all Century? in

your at base not approached it think other services? it’s Thanks, all is So that cannibalizing might incremental getting because client you’re Or sales? you otherwise guys. do a have

Seth Blackley

I you Ryan. it And is Sure, national can it’s that. about these And with out if Yes, lot larger quickly. what’s nice where incremental. we go our a view This as Seth, the look of very is Yes. relationships take of again. you lives, rolled across country, and it can some payers. at we’ve that the state-by-state

You align takes is, benchmark what performance that what the a do to on don’t have for to and more time. have product, you

we of performance lives And mentioned come set margin, you get ago So lives. can of and lot to XXX,XXX opportunities in example, higher PMPM, that’s lower only follow-on. where kind then see a million to up minute and And more a will an is place but as Blue a the where the math is example behind a revenue. suite a I Florida the full which $XX

so make million to really well. And that of X.X convert whole the doesn’t take over to many work it thing

as and view additive it really So about excited we it.

Ryan Daniels

on great made. Well, much. you've Okay. and I success you congratulate the so and Thanks a year all progress

Seth Blackley

Ryan. Thanks,

Operator

Jones question go next comes with Our ahead. Goldman Sachs. from Please Robert

Jack Rogoff

is question. or are Jack group? on the customers late. Centene that yours This on I and Great. only I in Century for taking there Thanks others New Bob. Light Molina also of Rogoff that are using my also jumped this apologies, for guess, are are And

Seth Blackley

No.

the have bit have markets. of both and partners, on We they right, a couple of light some a depending may others. some within little some of our and the And performance regions

Jack Rogoff

is That or you if the this, of missed trying more broad services I define how the sense? Century is pure it. apologies lives Century in full of platform? of Evolent makes or delineate suite then New the bucket? Got Just full that sense. suite Is that like some full but And a do that New that’s to if

John Johnson

that as of – our The platform this Yes. Think life traditional John. full life metric. Jack, is

as inclusive administrative Partners’ that’s in Century on. as platform Evolent lives, performance the lives of Care the suite the and lives so New So well

Jack Rogoff

That’s I what programs guess, last Perfect. groups? what I physician new you And specific makes then That did disclose will one sense. regional for supporting thought. with me. these two be

Seth Blackley

total which the total clinical focused reducing premium clinical care care side and Life. for of solution, It’s total of cost cost of on Medicare is the the dollar our on work the management

solution. So cost total and it’s annual a per of sort member at, run that clinical we $XX,XXX a of care number it’s

Jack Rogoff

Makes sense. Thanks a lot.

Seth Blackley

are You welcome, Jack.

Operator

Cowen. Your next with question Rhyee ahead. go Charles Please comes from

Cal Sternick

Cal question Sternick on there on having of a been on it solutions. just like Charles. cardiology with side success NCH, for oncology the you lot the and payer this so Hi, have is A guys looks

other that curious So exploring high if practices high are to maybe there platform? any expand you’re NCH acuity the cost,

Seth Blackley

It’s Sure, I Cal. can take that. Yes. Seth.

thinking of about small quite now, and you hundred cardiology are nationally, relative focused oncology very it. life market We lives we’re actually share if think number on we about several have opportunity. Right because the still million to

that that opportunity which expand a do. something But on think, will I So approach to the I’d and taking say, is with way been, some focused maybe and areas, we’re management, oncology. not share have right certainly, to that do offerings of later the management is in does is, market we’re in The we resonate and it’s timing those specialty two. traditional first other now, in the cardiology just this provider-led eventually

Cal Sternick

And big they if guys with individual from your payers Makes with any new you curious do reflected from enrollment presence sense. to add anything the in there Thanks. and enhanced the the other your special the period, subsidies? know have and if is in which you members across any of have cover there a exchanges. Centene benefit I well, business And both lives? So any – could Molina, guidance? benefit any would be as partnerships, I’m or then

John Johnson

Cal, this is John.

So the do we platform. individual business have on

but portion And small so beneficiaries we members I be there membership in of that platform. do to individual a our have reasonably certainly, on expect significant. would if a of the there, It’s not bump business, that. we could be were

Cal Sternick

you. thank Great,

John Johnson

question. for Yes. the Thanks

Operator

next Sandler. Sean from Our with comes question go ahead. Wieland Please Piper

Matt Shea

like in Seems earnings program, up Shea environment This you we meaningfully Matt CVS’ for competitive example? hearing think stack have oncology programs of see been changing is management kind question. and on thanks specialty curious Sean. Hey, if more you space, for other actually about for competitive the against management calls, the how the you maybe on

Seth Blackley

Matt, it’s Seth. Yes.

in say these that differentiated seen are tends shift an to would other is are So landscape. cost very work would some the we be and our I our obviously, might around on of competitive ability The outsized There eviCore meaningful in cardiology. a our oncology be example. drive areas. I focus to not have based our players savings broader. work focus by And say deep,

are a good I high I think oncology, the good think, news differentiated the is, that so trends the spot in. a and particularly such focused point be provides that in being pain results is, it’s community, for payer a player to dedicated,

And so run is into. main competition generally, not we the issue

good feel we that the both and for So solution also for oncology, cardiology. but outlook about – for

Matt Shea

Shield bit, any we think plans? Blue Cross role about the a then expanding And how with Blue in maybe back Blue penetration Texas? the Okay, good And Blue recent did the with should play further with to Blue’s that Board Shield Cross stepping partnership addition, hear.

Seth Blackley

Yes. I mean, it’s interesting.

total. think a relationships We obviously XX Blue out now couple I of, have of

in So that in close go available do XXX serve about to way to that our community best think million the we incremental is want there general, network. is it to are that lives that to that

to a doing building that. word-of-mouth part having the a frankly, lot addition job there. to and of for the Board We’re important that credibility is Florida Kim’s the great out is, an other But work plans. of go Blue

right start our partners job, going the pretty And I place and of want references be. we think that to so the the have we’re we’re our fantastic segment, doing a And that’s Blue the off we to a there, on them and now driver think. in to probably supporting are I that execution, so focused success biggest be good

Matt Shea

Okay, got Congrats it. Thanks guys. for the the on question, quarter.

Seth Blackley

Thank you.

John Johnson

Thanks.

Operator

[Operator comes Larsen go ahead. David from BTIG. Instructions] Our question with Please next

David Larsen

efforts? be Medicaid maybe to you about thoughts talk having you. business Can for state pushing receptive? continue your more into you bit impact is that book that your quarter. good pressure a budgets, market on example? and they Any the on the there? Is and is COVID a on Thank Congrats selling And there Hi. of

Seth Blackley

David. Sure,

overall. I’d So for the is in say, us COVID pretty modest general, impact

side, help on sales the you described some increased On time. I the over think, pressure that the will budgets,

side going In a execute. our it’s COVID life, kind probably to that’s right? slight adds us positive performance slight forward general, on to the So XXXX. of to tailwind ability volatility and probably a in

fact reflects For that and all views general, I on And the it’s overall pretty for all gave say, modest our XXXX, us. this in neutral. more David, the guidance probably it’s obviously would we

David Larsen

hopped bit it. a I appreciate Okay, on And late.

Century covered for Like you you you. have the But there? Health, thoughts if New that? any Sorry Thank in-sell sized Molina this. with potential

Seth Blackley

mean I it. in sized haven’t We live we’re Kentucky.

kind live expand. represents We’re states portion great a like I’d we’ll and opportunity hopefully, as total have now soon. a opportunities we’re It’s form we very Washington for Blue and lives. that it a on what going job a doing them do modest They large of of comment, – partner. And have reasonably the Again, focused as which right the on say obviously in that, to takes. depending obviously

You examples the example on the instance, some of a as, of what lives can block like mean. for Blue Florida can use

there So we’ll to time. have but great about it, right feeling deliver, over task address our hopefully execute, and is a have opportunity, opportunities very them that now large to is opportunity

David Larsen

Okay. Thank you. that. Appreciate

Seth Blackley

You are welcome.

Operator

session. This question-and-answer for back would remarks. I like to the Seth concludes closing conference to Blackley turn our any over

Seth Blackley

to soon. you and Great. live Nice will we lot. to to talk everybody connect a hope Thanks with

John Johnson

all. Thanks,

Seth Blackley

night. Good

Operator

today’s The conference now attending presentation. Thank concluded. you for has

may disconnect. You now

Evolent Health (EVH) 28 Feb 212020 Q4 Earnings call transcript