TRHC - Earnings call transcript Q1 2019 | Tabula Rasa HealthCare, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the first-quarter 2019 Tabula Rasa HealthCare, Inc. earnings conference call. [Operator instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Corporate Counsel for Tabula Rasa HealthCare, Mr. Kevin Dill.

Kevin Dill

evening. good and you, Thank I'm Kevin Rasa for Corporate Counsel Tabula HealthCare. Dill, of intends Litigation harbor XXXX. to company the Reform avail of Securities The Private itself safe the provisions Act of within call be this law. during made of that statements forward-looking Certain statements the meaning will subject actual These HealthCare's by and other Tabula to the or implied differ materially forward-looking risks, factors forward-looking to uncertainties could that statements cause expressed statements. are results Rasa from those services technology-enabled and include uncertainties developing of healthcare the and products for that clients. and changes These impact risks and regulations potential the nature laws to our market may

investor For is HealthCare, March section on the call additional and the to of our CEO, information SEC, on a of refer with be call founder filed XX-K Rasa X, on page the of will risks it XXXX. Knowlton, through facing our over turn Tabula for filings factors our and link XX I'll Tabula please chairman available A Rasa including recording the relations risk the Dr. Calvin this to of days. website accessible HealthCare.

Calvin Knowlton

gets the events. a who million, Chief adverse update third Good for a year. a for United high XX% just cost, treatise fiscal a healthcare XXX,XXX and a Business were you, first increase. one care hidden for in in cost will are is death a delirium. adds of Lown disease, in meds older new leading on the EBITDA from In Mr. Dr. quick at about I financial States world, At drug seniors Annals mortality was Medication aside This update XX% meds. to drug-related XX over-the-counter for that noted X.X representing our XXXX, twice are doesn't Chief expenditures think our X.X to more United for Diego more Officer, are Orsula event. A events, over that transforming and our epidemic XXX Other quarter, proportions. past was be adverse the hospitalized morbidity us nonpartisan XXXX. When It dark they noted is outlook lives took our April representing medication today life. adults every is XX earnings reached Financial to on low-value researchers the thank Co-Founder XXXX, meds, this stated it to effects XX% five XXXX, San rises number start or UC taking entitled activities; well these with a in like it more Pharmacotherapy cognition quarter this people report, older XXXX. Institute, was billion and to recent XX The kill, experience problem growth. and in prescription Around prescription XX% cause times we no XXX% report cloud The that seek adverse million, In serious of medicines. polypharmacy has of the from drug States, medications of normal, latest patients polypharmacy. more that to cloud. spent or noted adults And likely, likely the of name system. by At who Boston-based on first provide from quarter, and tank the dark in more at Lown meds, likely in a is as XXXX XX% took Knowlton, adjusted the with of five represents a last our seniors would about. it five XX medicines, those talks and impaired our also hidden Thank Lown markets The America's for medications. to it joining revenue or of If story first call. which the as the officer, take of than to of or are of or was an more Forbes a medicines, side Problem. you meds, Drug five problem glance due report prescribing Development Also drivers new more or evening, from more meds more in seniors Taking highlighted XX%. of would year, growth; XXXX. America's individual cloud numbers quality dark Institute the taking is released will business $XXX.X one The XX-page more as termed meds decade, the ruins article data, In XX% outpatient Kevin. US provide older worse. Overload: total the overload. me or drug of five seniors Marketing and in six Brian dedicated At A the Then is or an is is the $XXX and day, more that XX% the US medications multiple billion, people's three Adams, XX%

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first continuing. risk XXXX and medication and The This is started design software. development of is phase mitigation identification our in and

interest humanistic the an is are The outcome. resulting ongoing. design and high, Medication for of phase risk strategic is traction a hospitalizations, of deployment. phase MedWise the the and economic measurable the is our congealing. and positive clinical financial is strategic firm, After in documentation, reimbursement is at value started and The of this PACE, array Enhanced third program impact is approach of is XXXX Therapy launched and outcomes, in documentation also and technology in approach Management plans second has that an been our and phase health

online integration pharmacies' thousands tools year Our risk to our tactic PrescribeWellness. ubiquitously. once pharmacists. acquisition software for outcomes University, novel to last do medication recent University. platform of in provides as CE us management enable pharmacists acquisition we these deployment. we offering solution complemented and pharmacists. A have certified was decision our created to pharmacies. analysis solution I'll MedWise through tens we US Through This is with points pharmacists four deployed for more deployment earnest TRHC systems, of of intend support share our prerequisite PrescribeWellness' scaling with than about multidrug that on community impact solution will PrescribeWellness needs their be medication reach is scaling become to started courses our tactic in MedWise One XX,XXX second validated. TRHC use to accredited How our deploy? be Through deployment a into phase

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in in is US Hong leaders the to to we our deployment mitigation our Kong for MedWise identification interest Moorestown weeks not is third in-person beyond The adverse from drug come certification. pharmacist offices had and ago, The borders. for event Taiwan Two and limited tactic

tactic which week, outside the Moorestown them, US will as pharmacy had is And our to with universities. growth and expect to This and promising. which folks Maryland's to in Therapy we in expose our certification. company, fourth in-person University as while Asian certain a We to continue we software-as-a-service the of the intent have leaders we letter countries. incremental any propagate MedWise our relationships international don't from to term, develop revenue near would offering, is in plans. team believe well Medication we hospital a of The from come for their deployment long-term our from leaders for support Last hospitals MedWise pharmacist large Management, pharmacist software offices pharmacists

risk integrations are and critical more prescribed, exposing in we eventually tools in to to put discuss will medication will as position before PACE. Orsula intervene these to As in us our do detail, is medication prospectively clinicians

automated are in that be with In coaches. certified we broader with in as the medication robotics assistance exploding, States Pharmacists the multidrug are what using United of causation, underlying fully do need of path which Eric or Topol three be the MedWise expenditures in be needed months. information will intelligence community will real Human software Well, extrapolating, deliberate plenty no providers becoming recent book, healthcare them. providing this artificial their intelligence of reports medical and pharmacist hospital medication and the The can't root replaced. Our concierge cause Who checks technicians. type understand of in, enhances reducing never artificial are in and pharmacy nor interested software aware dispensing keenly the he future pharmacy can while support The tools the to process said, this on technology against reason Medicine, key and to quality, Pharmacists tools dissemination. is patient drug, as with well universally for have is one and about no based two superficial methodical. pharmacies in just neither of pharmacy and actionable now should provides to not now pharmacists root binary interaction disseminating our and science years, safety literature decision our and thoughtful, sense. as drug involved his Deep in common rollout the it machine spite and with inferring focus? learning, be opined we're it has will upon do the one life-saving science? to

drug and adverse huge event year. the growing every So is problem

and strategic solution is effective Our unique. timely,

I turn initiative. over Before would Orsula, this to recent comment on acquisitions to our and our sales like I

our and solidify market. First, the help some we leading to have with, position in acquired aligned companies PACE

We have the umbrella. are organized yielding Capstone which collaborating, They and is CareVention under and Peak Cognify, cross-selling integrated results. Mediture, fully

sector, the hospitals. DoseMe will in MedWise pharmacy Second, hospital in for abroad, is sales which and United the penetrating the open States integrated fully doors and both

Sinfonía's sales, R&D integrations least IT at HR, will in compliance, The progressing commenced have PrescribeWellness Third, finance. and and are year. legal, take a integrations marketing, and

as to we organizational have provide due exciting dive these combinations. seeing this exceptional will showcase together talked potential value and about and I these intellect announcements as by more an last deep have which are our and X.X with experience acquisitions, will later year. evidenced this Our the And as growing have strategic Also, we clearly clients the some bench will and partners of need, clients solutions on pipeline. year, track for companies skills, the as of be comprehensive over know executive the we vision. rationale our we is completed TRHC year, well talent to bringing

our force. now sales Turning to mounting

dedicated performance efforts pharmacies, their to and understands now to led in corporate former companion to ranking Walmart. CEO as Kevin available Boesen, value Boesen. clearly all dedicated Kevin pharmacists, software integrate Founder Walmart Barton for and in respond Walmart, to to Kevin Kevin the improved has Barton our sales SinfoniaRx's Barton resulting tools of that Boesen be quickly network reporting for after he is bring national space. team Last sales SinfoniaRx, Kevin the sales development month, a AVP charged We to PrescribeWellness reporting Kevin to his managed Kevin officer, people we beyond. our Medicaid dozen platform team business Kevin finishes first Last have with the Brian his to the any will MedWise selling When to presentation. conveying efforts. also sales the chief at MedWise integrated sales and PrescribeWellness launched questions within Boesen. month, and hired Our into

our on identification and well research increasing platform, the Lastly, in enhancing MedWise value thereby suite our our team intellectual our continues precision our After medication vanguard tailwinds, review Orsula, increasing to From risk are and as macro science a of will we focus Orsula? mitigation meaningful and address. which our Orsula of property as financials updated perspective, position. tools, Brian will forecast. experiencing the

Orsula Knowlton

toward services the The way volume on opposed for Cal. value-based on crest shift Thanks, care. That paying US traditional outcomes a is is as of to of major the provided.

made more have its administrations support even current previous the care, clear. While supported has value-based

is and and it. outcomes. noted he secretary the improve quality paying lower CMMI administrator director, that the stated healthcare and a change the to need interview care to thinking payment Adam and to agree the innovation future recent parties the of quality as problem differently Boehler, costs for We During political that escalating doing our Both negative the American solution He advisor key to accelerate is for value-based Thus, it's efforts that reliance of and this toward is increased for to about to patients. goal an healthcare. costs on there volume. deputy with senior

for patients the recent of prevention In disease care occurs. accountable fact, which as Boehler as value-based identified Adam and before as interview, one consumers, guides, top of in paying embracing outcomes, four clearly priorities, his providers it furthering include HHS's is transition

than HHS Rasa took take this moment was Azar, care currently our when in care a that highlight XX announced care representing to that that With is to outcomes the solution could huge health As April, tailwind want Cal Alex program we quarter voluntary step value-based the new fee-for-service. recently in care for recipients payment and have the of tailwinds value-based mind, as In he works is regulatory which model, rather alluded, Tabula a into proven members. expanding of a payment introduced. one model, million for primary promising Medicare that a initiative value-based I in well settings. fee-for-service requires a over in secretary, a shift positive This

with a only savings for patients the two a of member care risk-adjusted to amount at per models bonuses of physicians pay up and One would per set primary XX% XX% their and healthy a flat with downside. the visit rate home keeping

take and model both to system-based second less mentioned into she about larger patient's direct the contracting is The Verma, programs, a small considering a per and hour. our as incorporating way increasing the models to outline for providers on for model Medicaid to care and and a large healthcare positioned pharmacist it. even has expand practices. which enhancing administrator, at-risk be And ours more I'd incentivized are practices Clearly, participate moment similar wants more further. collaborative volume to practices to in of in we welfare effective should of become CMS and TRHC care certainly Seema take delivers history that the of a that care opportunity like and with is who also outcomes. primary risk, patients supporting state valuable HHS is uniquely even along like clinical success. for tools services how levels

resulting risk accept while using providers and PACE, medication confidently similar improved tools to outcomes. enable First, in to services to manage we regimens, health our

risk pharmacists care Landmark Oak Street who models, MedWise already Health. Tandigm mitigate are where Health, with providers early including We of adopters supporting are Health value-based along medication certified payment

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outcomes certified PrescribeWellness initiate that changes monitor changes, are along better community no the and network behavioral MedWise management to will and consumers risk educating prevention right eventually that believe medications be both our of support pharmacists Thus, health through drug evolves. Third, about adverse for how able often therapy matter and system healthcare required in we with solutions the preventative outcomes event community. our can and improve

it's the the to D know Medicare can and for expansion, We that and future development the scale EMTM to whether all, XXXX to sales We efforts Boesen patient Part are key larger uniquely outcomes, accommodate brings, From positioned be whatever handle to pleased engagement Medicare TRHC our officer. more a is business chief better Kevin quality, we delivers. population. couldn't standpoint, want health consumers our have as

has of markets, organized development. support As individuals targeted combined team client direct primary list Kevin counting mentioned, four national recruited address talent, sales prospect new our includes The a segments. sales implementation and Cal to not

First, regional PACE Medicaid market. for-profit plans; We needs with that pharmacies; dedicated and plans. our health team national plans value-based now third, laser-focused have and and managed similar payers solutions community to a will fourth, along special bring plans; second, national

No. are We sense are and segments a X. Tabula across provide to is with excited which urgency, fundamental training all acting product of month sales this Rasa's

integration in the for thousands pharmacies. begun engage opportunities will Together having its which force we highlights SinfoniaRx, as patients. to force/ground payers, unique offer and solutions result is payers with already of a Cal and air into solution new pharmacies of community that SinfoniaRx quarter PrescribeWellness software first robust resonating that now and with PrescribeWellness, mentioned, Some acquisition of has from include embedded

or bonus will the to even contact achieve use prescribed consumer comprehensive performance, of leveraging to better through network, First, SinfoniaRx pharmacy reviews be the complete direct clients medication able CMRs.

be completion PrescribeWellness are high customer and improved center to call of STAR for SinfoniaRx and SinfoniaRx the interest we quality scores, support demand MTM various that seeing like these will combining technologies are PrescribeWellness health clients. for for growing support and platforms, new for also in processes of Second, growth plan combined the HEDIS capability measures network, potential used settings pharmacy Because explosive of integration community and this success. which critical will of

Enhanced Tabula greater MTM Third, we in for new Rasa's into have incorporated will responses. value care clients overall Therapy our SinfoniaRx's This provide model RFP Medication Management value-based world.

pleased the SinfoniaRx as a we are health of Lastly, insurers. selected to have not-for-profit by national MTM preferred provider group

Some of of these both plan and and clients customers already. SinfoniaRx other health PrescribeWellness are

a willingness combined these bring that health medication seeing to and the for decision are solutions. about value We the of pay two TRHC the plans tools excitement organizations these support into to integration

I United a like DoseMe. Now of to acquired for DoseMe in would CEO US the the company. moved States highlight success company, presence January January, to recent our establishing strong

technology. to health by to our we pharmacists clinical able DoseMe. robust, expect record brings solution bring hospital-based safety pleased We in in standardization quarter. with perennial medication DoseMeRx technology The Jersey are through their In DoseMeRx of pipeline health was first New quarter to one of the medications. adding another along be is XX first with dosing Florida and Florida, Cerner electronic systems DoseMeRx during the hospitals MedWise our hospitals progress hundreds into nation's used with of and leading and integrated directly

manage to with started topic, is reductions while care last conclude as few we the which the already. discussions value-based for would fully elderly In model I hospital and my all-inclusive PACE, pilot is We with performance that safety such program cost with at-risk admissions. have to like for a or prospects in organizational of the PACE, medication improving first continue along care. outcomes

first, Some the PACE we happenings in March Association National Spring include participated recent that Policy Forum. in

PACE payment session, Medicare During anticipated they the spoke changes for policy will model, in about which result in modest average. the increase a on

month report to published state association PACE a savings recently per regarding Medicaid the XX% savings. the programs. identified paper per The Second, that or brings member $XXX a

may including Lastly, CMMI which they one PACE or We dollars. regarding programs various envision states Medicaid to that sent their receive PACE. second Medicaid in in their require the should innovative directors participate letter other participate, programs to to CMS day, innovative

Some the hosted communicate to additional enabling to impetus solutions highlights services that provide PACE clients for technology, recognizing efficient include recent clients deliver acquisitions enhanced more TRHC advanced now the and can that care. we

combined first and of clients one Carolina. Senior software Mediture Care instance, is StayWell greater February at For satisfaction. with Indeed, North direct we the efficiency launched integrated our our in result client in improved

added is is enhance to from data out package mutual plan And our for the From first various the is expanded have of start-up to Our Arkansas a PACE support Ozarks, performance and of the PACE client three new analytics this solutions. a an these segments clients. our services; standpoint, growth the integrated future. the that with considering further our services clients using client's all opened in near goal or our we organization of roll in during rest to data quarter.

medication Our a Northern organization mature PACE begin June and signed X. services California in safety on will

to start We results. a in California pending standing scheduled South new to start this X summer. great and had have program begin approval cross-selling long in one we final the will have expected Indeed, July Southern on program PACE

we and with PACE our in services PACE PACE in adjustment services organization began In four Michigan risk addition I new to added Indiana, our programs just Medicare what plan clients. a management two signed mentioned, start-up new health

efforts Center throughout to additional to open, cross-selling TAC PACE or clients has expansion US Our engagements support Technical over expand continue consulting the market new in PACE with Our our XXXX. and a Assistant growth locations dozen their

all the next Brian? market rate Brian, share, have dollars a to continue estimate of the great run to CFO. our on pleased with be XX% we a of a have market the only growth Considering PACE I'll over trajectory nearly you path is our that and our considering PACE of is turn market solution runway solutions? call that, have if size we addressable over the A XX% what all the are We question the to total providers. this and may used the of years. several collaboration to billion With

Brian Adams

review into But To you, and the the quarter remarks this evening, our clearly and they into I express also first first the Thank for I'll finish up dig second markets detail Rasa's are and wanted provide that targeting with I to to how outlook I am Orsula. I the extremely successful the in The the before our quarter our understanding numbers, prepared full-year we quarter. value pleased company's well bring additions the we performance XXXX. of solutions. a Tabula acquisitions in believe recent that are positioned are XXXX. And

For XX% of quarter first the of $XX year. XXXX, Tabula million, Rasa revenue generated total over year a increase

this service compared product million from XX% the medication organic growth. XX% $XX revenue We XX% increase Excluding XX% our the rate recent Recent to was to of in depreciation for million, the the in million Product increase. XX% due in Gross first of primarily first last organic the quarter quarter forecast revenue year. acquisitions for was the XX% quarter representing of services. The revenue to at maintain year. amortization, this acquisitions, year, excluding in XX% and compared risk period growth to an $XX.X growth Service came XXXX. and $X.X full of $XX represented for quarter same quarter growth comparison management last growth margins, the million the revenue to in our in XXXX. contributed

SinfoniaRx business. is which quarter lowest past, margin in the of discussed As the due we we the gross have period have in the to first the seasonality generally

to end carry previously gross to was We recent long-term had which we margin. XX%, impacted higher XXXX of the favorably a set a software and also that by margin the target high this reach acquisitions, expect now range of year. quarter of First generally XX

also margin, with margin excluding Gross for longer-term XX%. first last XXXX, quarter to a gross XX% first quarter of to the updating of to compares on due As depreciation the the in XXXX. target margin for basis during XX% with margin. margin and compared XXXX, XX% such, last which in the quarter, This client amortization, are carries X,XXX was compares improved same in in SinfoniaRx of and consistent a the quarter their business, the of expectations quarter of year. we excluding in depreciation year. gross line in recent expected contributed our amortization first PrescribeWellness material increase points was onboarding. based to last to gross and general was approximately the XX% first to gross which - depreciation period quarter increase product Service given had the staffing margins, ratios XX margin, SaaS higher to our in excluding nature

expect it and the put We strategy. made a last to meet XX% to a we year compared result this from these gross our deliberate, contribution of us that revenue year. year. will longer-term two our as this of up this revenue total service businesses targets XX% position margin Overall, is made to We've acquisitions continue clear it shift and expect recent in growth

first When compensation XX% the you to value fair XX%, from from increase impact the XX% same change This period represented operating quarter in ago. expenses stock amortization, and have exclude of consideration, a Rasa We operating Our Institute. initiative, of in up our top to this depreciation, the in down as represented would XX% generated is expenses XXXX. XXXX This for of year and quarter, Development the of along cost the total quarterly million contingent X.X the in revenue the end million in expenses $X.X adjusted quarter guidance. Tabula and ago. a reflects EBITDA DoseMe compared line incremental the Precision exceeded year first with operating with Research in our $X.X in expectations the Pharmacotherapy

acquisition the based last first commenced the of about of EBITDA the quarter quarter, the variance. for PrescribeWellness recall year. our will making which first the in this X.X% in contributed This XXXX margin EBITDA on expectations for to not we adjusted the which the line Adjusted time compared X.X% we quarter update quarter is at $XXX,XXX to You year. investments was for are did some for earlier with the of

consistent $X.X loss loss million; stock-based Our depreciation The net to a $XX of the million; compensation $X.X the of first the Cognify The loss first calculations share XXXX. of of income to of income a year. XX.X share $X.XX, quarter acquisition-related the and diluted XXXX was of contributing of the XXXX and and to loss quarter XXXX quarter loss are quarter of diluted million of $XX.X quarter GAAP on of last count for for net per million in period the expense the count $X.XX versus amortization the value per per million based acquisition-related GAAP million diluted net were DoseMe. net for changes interest the with net compares for $X.X million; first of calculations of of share XX.X of share adjusted of first are $X.X net in for per million quarter related consideration million first million; for XX.X diluted the first GAAP XXXX. first of $X.X XXXX. XX.X compared of to Adjusted quarter diluted The million expenses based contingent XXXX. XXXX primary quarter versus factors net $X.XX was share of first for same share fair on

well Our using related rate. tax stock value amortization net per interest as as intangibles, the diluted costs, acquisition-related for to and the expense amortization changes excludes on compensation, in of income noncash taxes fair adjusted issuance debt a income quarter normalized acquired of the stock-based impact contingent share consideration, discount expenses,

and from of line. used from balance Turning sheet, we to out today increase of primarily acquisition drawn acquire we February. and as in $XX.X connection Currently, down our my million unrestricted out convertible of last mort the on the XXXX, result offering to million $XXX March pay $XX.X senior note credit. net pay hedge line to cash to and XXXX. second cost the transactions, off $XX our $XXX.X of for of of comments full-year had We at $XX.X proceeds quarter with million million PrescribeWellness; have outlook earn the of the cash is the SinfoniaRx; nothing compared proceeds the million million an end convertible the close The XX, of pay to in note quarter the balance I'll the subordinated $XX.X million. that to of with the

$XX.X of range adjusted and the we X.X be revenue in range million; range EBITDA be XX.X to net For $XX quarter XXXX, in to be of anticipate the of to of the to $X.X to in second million. XX million; loss to the

reiterating the the updating and total midpoint DoseMe. XXXX, revenue net to result full-year million. a for the income revenue revenue, and Of purchase revenue of million as for For we guidance million and product provided revenue of as we that in range and the XXX We accounting result $XXX guidance at expect $XXX be to we a EBITDA of previously anticipate PrescribeWellness are adjusted $XXX range. of service of

adjusted be to million. of range in We expect to the $XX EBITDA XX

and in DoseMe, losses to As our as the to Institute. guidance well mentioned costs expected Precision as Pharmacotherapy Development includes XXXX related Research attributable previously,

As we've which have previously higher communicated, XXXX, any XX%. we do not basis in was adjusted be below than to After we future institute, of research at realized in expect to we points expect margin a XXX are margin the less our Again, the investment folding creating. an than we potential related XXXX our guidance. very the midpoint reasonable what DoseMe to EBITDA and

XX.X net expect range of loss We to be $XX.X in to million. the

assumes taxpayer taxes. for XXXX remaining XXXX to cash in not of outlook expect effective tax Our and federal we rate be XX%, do a an

projection loss acquisition-related contingent not any DoseMe value and include fair net future acquisitions. does in Our change Cognify consideration for of

strong was Rasa. to a Orsula very and expressed, Cal for this As XXXX Tabula start

We foundation favorable That have industry our feel which for closing. to I'll to And of back prepared effects and tailwinds. concludes the grow and over on really an beginning my the acquisitions. call solid organically remarks, Cal turn Cal? to through built incredibly we're

Calvin Knowlton

Brian. you, Thank

pleased this stressed my where and the and here to remarks with little were Please, we're on call and truncate thus we going we're Tabula everything call, because accomplished everyone all that a we'll Rasa And questions. incredibly has with thing thank it we've XXXX in then long-winded open this on going. think I operator? I'm far that for

Operator

Thank of Mohan Naidu you. And first [Operator line question instructions] comes with Oppenheimer. from our the

line now Your open. is

Mohan Naidu

well. resources do markets the segment? you for for flow? versus Cal, there maybe my guys when the Kevin so you How in questions. health with, to right many hospital different near-term And are and opportunities opportunities are as this Thanks guys think of prioritizing taking about pharmacies a part long-term begin where is opportunities for now and you see you for maybe the deal plans,

Calvin Knowlton

to us? one do Kevin Mohan. want take Boesen, you, Thank for that you

Kevin Boesen

or looking at long-term and is Tabula Thanks the at for guess question. looking versus and think PrescribeWellness opportunities. Sinfonia yeah. - Sinfonia, the have Sure, base client Rasa way The short-term I about payer the existing to in both market that cross-selling

excitement Sinfonia a pharmacies, science. access the questions XX,XXX to pharmacist about ability great a broad a Tabula speak call center of services using to that's trusted there's the around with and So deal using client, for example, Rasa now over a to have

really that. lot from standpoint So is marketing a we're what on of a doing focusing

Orsula two The Medicaid having PrescribeWellness new existing folks specifically have of we second our really mentioned, markets. some on is that longer team Sinfonia into the the clients. of and managed space. have Medicaid going term the

models expanding. overall there And Medicaid that solution that healthcare great costs. on good safety, a the is, But MedWise deal really again, excitement in a looking of of on focusing so, we're focuses space reducing medication there's on

for as and for national sales the a payer mentioned, payer group, aligned So group Medicaid the we third one another focus a plans space. for have Orsula team group managed in as regional

Brian Adams

And a that Mohan. on second, build just to for

important I we those really that leveraging are that launched the new have to is think markets. fact just and commercial, and what's models into we're note already

just other from targeting operations this something So not new. is perspective, We're markets. an some

Mohan Naidu

that that Thanks new It's DoseMe? DoseMe Maybe for Orsula, right? pure two color. just about Florida, in that the now, talked the include and right product Jersey MedWise not deals on New product, you does

Orsula Knowlton

Mohan. yeah. correct, is That

Mohan Naidu

we visit contract becoming Or me. that about interesting, how the for should sounds a can from last a I very Hong eventually? And that on pilot? that Taiwan, think question deal the Kong Okay, guess Any translate Portugal updates and flow? how into

Calvin Knowlton

we there with we're Yeah, one But this Cal. going slower is thought that over it'll with along. some working still The problems is Portugal happen. than IT through. It's

effect. that's really that interested, to The over other trainer want a the world to the of part there be and train have what want they type is do they of leaders

first don't but the We contract, have And a This to over training. come the or here they to not a and - of it's near foray year be with a few so leaders had near-term their a be that term is two. be was revenue. think going going that's maybe to going

Brian Adams

what Brian. looking really model This to while international looks develop an to these for the we It's be really to operating in channel a like there. going take us. Yes. is are for partners folks But us setting,

really kind the intention so type And of of of relationship. that's trying to develop that

Calvin Knowlton

thing Mohan, the laws strict. Europe think, have happening privacy that's patient other in the gotten I very is

so, an working perspective through And that too. kind we're from IT of

Mohan Naidu

the great. all color. a lot That's Thanks for

Operator

with next of from Blair. And comes our line you. Thank Daniels William Ryan the question

Your line open. is now

Ryan Daniels

year. go that Yeah, thanks you, the margin for staffing SinfoniaRx of points taking gross the line what business over how type gross bit sustainable that a mentioned that about going detail think about front into one margins up guys, forward? you on you questions. basis more for year Brian, specific Can you were is I the improvement did X,XXX and for

Brian Adams

Sure.

the number a been order the significant So changes year that There's some maintain need going were effect the and a medication of to we of in this result completed ratings. star increase increase pretty related a to fact the that revenues to went in in reviews really into requirement into that customers. of certain had be comprehensive our significant

it released those to quarter typically, taking customers kind so, demand able of of late really we reposition were year, period generated first our was because is because place. as lower from a last have when qualification do margin out were in we the And the

year, from accretion to necessarily expect be sustainable like although don't enhanced feel and we that I benefit there some staffing model. going this will the Now that's do for be full

this do continue business. to that expansion This was some for quarter. for benefit an So think we'll of see I margins that extreme

Ryan Daniels

look to - front of approaches all smaller already a are of I potentially curious, groups? makes over are here? sales XX How the you about move for partnerships get standpoint Kevin be in first physician the and or size, about something what the investment contracting the managing opportunity those as next big for got when million in helpful to push patients that into Orsula, talk you that have answering to be few vendors potential physician years, and individuals? out Is do with a internally sense. during been you going quickly from I'm patients booted could who think numerous direct balance may kind those and that's which do that XX the either apologize this groups, how then I Okay, CMS's the And you question so to investment that that you do pretty out with take million, go this. model with could but those it to systems But or

Calvin Knowlton

Orsula? to one? want Or you Kevin, that take

Kevin Boesen

question. of ourselves do healthcare how in And I looking terms is Yeah. we great in I sure could. a It's think and position important. changes the at

the a help to a like with we software, enhancing existing model, PrescribeWellness One relationships both Tabula patient we with medication payer those manage as Rasa PrescribeWellness, of and as PrescribeWellness of to collaborative up leveraging become to population using as in a that the Rasa lot that providers as both are about workforce platform, that has that is new decision that well with through the the different have things more existing, work that ability as has. Tabula that models the pharmacists equipped expansion more pick in this where science think really well really areas targeting community the pharmacist you the

is it's XX,XXX right, doctors. work really the do technology? and one really these the of we've all saying, at use that in we're that So these ways we can of looking empower got pharmacists that with leveraging them How communities better partner with

Orsula Knowlton

marketplace. Kevin, that where partnerships I companies we've with was just established, do the in their going we're we to technology that instance, for add have

would looking helpful be as marketplace management value-based We people programs Athena start resources out. are to for We of risk care envision very care the right or value-based that for those in medication now. that roll

Ryan Daniels

Thanks. interest Right of at two now, the time. I'll in it keep

Operator

Wieland our Piper question And Thank of next with Sean you. from the Jaffray. comes line

now. is line Your

Sean Wieland

thank you. Hi,

So MTM ability to on Sinfonia for the consumer have or either points your engagement you the improve do EMTM services PrescribeWellness, proof any within from pilot? on early

Calvin Knowlton

talk to best what of the you're side. about probably some you're points on sales doing earlier Kevin, and the proof

Kevin Boesen

do. We

the year. a access with we One pharmacist. are So we're times working the that PrescribeWellness pick to particularly them - that see to excited The really XX and is patients targeting ones about. pharmacist, there's times a two the XX advantages that payers up

patient leveraging important. So is pharmacy engagement that the strategy of

the whether of technology Sinfonia some technology using piece and that specifically it it that the side. stores PrescribeWellness email, the is on voice other do, applying be The that messaging, and that has text technology of messaging,

So in terms things Ratings, in there have advantage significant. a it's done as already PrescribeWellness now engagement, terms like that because the engagement, improved what Star escalate, with cutpoints And we've in definitely patient relationship. and market the is data clear of for of of we

Sean Wieland

that. centers. potential talking All of probably in improvement Sinfonía SinfoniaRx the the for related into PrescribeWellness call the PrescribeWellness the there about as in were integrate know in to is margins to call gross is business? a gross another not I But right and tie center And and you lift margins you

Calvin Knowlton

Absolutely, as Sean, result improve margins the there's a continue to acquisition. opportunity definitely to of an

Sean Wieland

Super, thanks much. so

Operator

Thank next our comes Demko you. And with the question Citi. of Stephanie from line

line Your is open now

Stephanie Demko

the Cal, consumer-facing questions. give how line color you Hey, evolve you've guys. us added we you Thank could this my that on can and taking expect PrescribeWellness? for now some business to

Calvin Knowlton

Hi, Stephanie.

Kevin Dill

a just bit up us. You broke just little for repeat you yourself? Could

Stephanie Demko

get facing on consumer maybe PrescribeWellness? side can some you now evolve color the business have to and that that Sure how thing. I just wanted

Calvin Knowlton

the local it to be to couple something They'll they'll able the pharmacist, not to right be to Well, call there, on want things that to an them to for they score. their going a there's community will upsell and to centers. their say And a away - in to go something and there's show contact want have an if to MedWise MedWise database. to, forth, load we'll the will patient be their and iPhone pharmacy's dad, in what's play one offer is or the do offering certification, message let's sleep local able My or of pharmacists Steph. with a that, our get local they be is MyMedWise pharmacist, to happening instant there, of risk be if it they'll then so that or way once the we're as the and have able for to the what X-Eleven right using, patients will in that tethered the be

that. on that's of So plan kind the

on companies right license that's doing our direct-to-consumer this other that that to fully direct-to-consumer a not are us pharmacists, stuff us to We of that to permit another speak, our yet couple will work permit couple other now. some starting that to evoke also - companies are so with baked of model and And collaboratively some a will initiative. will materials mild

number a that some looked So at. with they've that done groups a patients and already - some we've on a marketing focus lot lot clients groups of - of

that quarter the we'll on thereafter. by kind or we're quarter the next able side of So cooking hopefully and that be to unveil

Stephanie Demko

And I for then Brian. forward is about this look it. to And more next hearing one

the scale that us about correct past So how and you me contract wrong, on years? three AmerisourceBergen think on over really the in maybe should impact changed if up I'm color but this given believe month. are Could margins we on any coming your you've I give you guys renewal

Brian Adams

Sure.

for and are contract, not us. White it going renewing with to We've GPO a acting essentially going Q we be So will our Thrifty disclosed AmerisourceBergen. actually with a to in be - be as they're signed the

time. when say were structure, GPO buying we able of than out a will arrangement the is couple much ago, GPO smaller rolled I years our a we what were Now although group that different maintain pricing current of to we the at

that would and I incremental points some be won't to side. about on the probably this until will there it's say, XXX but half So happen of basis be, second year or margin so going product the improvement,

Stephanie Demko

should also will that into year continue, - and that of annualize first Got or it next half and

Brian Adams

No, that will continue.

Stephanie Demko

it. Appreciate guys. you, Thank

Operator

you. next of Matt from the line Gillmor question comes Thank with our Baird. And Robert

Your line is open. now

Matt Gillmor

for Appreciate guess revenue all outlook. the question. wanted thanks the about the PACE ask in taking comments. I I to your progression Hey,

as guidance the the was this progresses. bit I a X XX of XX% little quarter year growth acceleration implies you think then and provided at an

onboarding sight it you can line to assume of What's about talk of of that? that driving are the acceleration? of maybe sort some the that I sort and part just So of

Brian Adams

product and short of that recent us year But the the overall result was we in signed client this the into quarter enough that, impacting little this the And closure the we in already I'll Matt. growth XX% that light. pipeline that's Yes, mean feel a half talked projection really, Sure. I in latter take moving rate a term. confident side bit we is about. on of very the have that the

So that's about it.

Matt Gillmor

effective of that follow-up being relationship. by nonprofit Okay year I and then selected a just Is maybe comment XXXX? this is was to wanted starts insurer. national one that or prepared maybe I there that for understand SinfoniaRx to about remarks. it your some business heard a

Orsula Knowlton

comment you that? would Kevin, to like on

Kevin Boesen

- are direct within opportunity it allows the Yeah, in programs for And included MTM, does what some it to members its so it is that that an really contracting. organization MTM broad. do that

program, Medicare a be launch programs, also the gives programs Medicaid to a commercial some other likely year. So but if it opportunity it'll XXXX, programs, us within calendar the it's current

Brian Adams

are be give might it lives think helpful the by I that just them Kevin, to organization. covered some of perspective on number that

Kevin Boesen

XXX Yeah, large it's it's organization, about a million.

Operator

you. line the Analysis. with Frank First next Thank from of our Sparacino And question comes

now is line Your open.

Frank Sparacino

guys. Hi,

Given the time, offline. I'll just catch up with you

Calvin Knowlton

Frank. Thanks,

Operator

comes question Thank you. Stockton Fargo. line Jamie from next Wells And our of with the

now is Your open. line

Jamie Stockton

business because the in Sinfonia the seasonally even But Brian, of Maybe quick usually kind earlier The higher taking maybe one drove is like one. sequentially. sequential there thanks that the revenue. business, weaker, but I Hey, there's little part you for services up I were noise still some just that the a of know think, mentioned acquisitions services of question.

think we being the driver acquisitions? sequential that as So the of is there improvement a of outside should about anything

Brian Adams

relationships see that secured you're I quarter, side. driving so going that this the to our organic I value number expanded continuing a the from an growth into we XX% Yeah. and customer have good that quite nicely seeing a really of last XXXX, was about would say of mean year which interest that's and there, bit

And number so with this of expansion pleased of relationships year. we've been those the pretty a

Jamie Stockton

thank Okay, you.

Brian Adams

Jamie. you, Thank

Operator

participating disconnect. thank And Thank your ladies the day. have and does conclude Everyone gentlemen for wonderful in you. we'd and you today's may a This to like you conference. program all

Tabula Rasa HealthCare (TRHC) 11 May 192019 Q1 Earnings call transcript