TRHC - Earnings call transcript Q3 2019 | Tabula Rasa HealthCare, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2019 Tabula Rasa HealthCare, Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded.

If you require any further assistance, please press star, then zero. I would now like to hand the conference over to your speaker today, Kevin Dill. you. Thank ahead. go Please

Kevin Dill

Litigation good HealthCare. Kevin avail The Harbor call Private the and statements XXXX. for during made itself Corporate Tabula Safe this Securities the of Rasa company provisions Act evening. you, of Dill, Certain I’m expressed will Counsel of Rasa of materially Reform Thank be intends uncertainties that factors and meaning These implied HealthCare’s results statements differ that or Tabula to actual statements those forward-looking forward-looking the are the forward-looking from other could law. within statements. subject risks, by cause to to

These the clients. and our risks services regulations healthcare and and uncertainties for and impact may include the developing nature products laws that market of potential to changes technology-enabled

our of filings Factors March the the information Risk most SEC with including our with the For Tabula additional Rasa to on SEC, section Form facing XXXX. on the risks XX-K recent X, filed HealthCare, refer please

through page will on for A is link the recording it and a website, Relations accessible Investor be days. our call this XX of available of

Now, Calvin Founder Knowlton, I’ll Cal? HealthCare. CEO, to Dr. over Tabula Rasa and of Chairman the call turn

Calvin Knowlton

update year-end Chief third you, earnings Thank today on With quarter Thank Good Development Business for well Dr. us for will Mr. Marketing Financial an Officer, are Chief Knowlton, our as our outlook and and call. markets update our Orsula and Co-Founder, me XXXX. quarter third who the Kevin. on for new our our Officer, Adams, provide Brian joining business activities; provide financial who will evening. as XXXX latest you

gives our of high in operational year delivered closing date has XXXX. to our us core Strength note. out in and Rasa a financial the business and cohesion on confidence performance Tabula solid recent acquisitions in

we and want abrupt the quarters. contract of of result anticipated trimming the completed announced number the the are of of fourth direct adherence third quarter. call a to our termination that had to We out be in successes the medication earlier do in experienced a the range guidance a a moment we’ve as work during year to take this I quarter, in the and star contract third majority While

engaged this DoseMe Rx due adherence terminated that merger in and to and management, software, work, client TRHC. by for client the being change continue recent their not all We be by to performed just but MTM

This was a and core our one-time agreement offering. business not

be While this a weakness not is our should unfortunate core in interpreted an it event, business. as

continue will Brian of impact to this building this the specific we more demand the call. cover including We detail cancellation. our will see novel for throughout which solutions, discuss in further,

our XX% $XX.X XXXX, million, quarter EBITDA said, was $XX.X representing quarter XXXX. representing adjusted third XX% that million, third a compared revenue With QX growth and growth a to was over our

reviewing recent process, one, business four a PACE Healthcare, is we number As our four, terms Health and result which reorganization our units: about now Payers; Plans in Pharmacist; distinct of and company number unit; Patients two, our of the units. these three, and and think time through four number CareVention number Consumers. lens acquisitions planned. like congeal quarterly attributes business PrescribeWellness, the units activity we of SinfoniaRx, And the to spend of I’d had served to DoseMe, four have of as All some the

PACE PACE organizational leadership. CareKinesis Perez. PACE in and by his led Carlos Carlos our healthcare CareVention offerings, First, in has of member Healthcare, career called team each unit, experience extensive our is considering

in the and on three We the expansion I details to the an get organizations have current of Orsula will in PACE move X.X seen uptick organizations shortly, consideration will units. other growth perhaps business of an PACE into so initiative. new PACE

internal team. clinical to of tremendous enhance community PrescribeWellness. the this complement growth in six program staff represents service. the model This has intent The a also pharmacies strong hire by pharmacist the realized PrescribeWellness lead person offering virtual model their second Pharmacist, by their business product unit practice last is is business centralized Madhat, a by is to allows program Farah the with in led services. program months. as to who more growth transition their of Dr. pharmacist serving The support community pharmacist clinical strong their The from of significant the to community and desire investment to

demand Two standing ago, We National house annual concierge at Advisor this and service. room we weeks Community of to packed only our MedWise Pharmacists. initiative launched concierge new a with a the of induced meeting had the pharmacist tremendous adopt Association

over pricing PrescribeWellness have our across next pharmacies We will marketing and four the ROI, the months. initiated with This models including community pilot various tactics, country. test

we spreading of including Boards pharmacists, asked Pharmacy, which gathering the analysis to the others. In our MedWise and of Colleges software pharmacy, address Commission Pharmacy, trends pharmacy, leaders Joint and the We of addition MedWise future within were MedWise novel, to specifically are community of simultaneous multi-drug support word decision tools. in associations XX is of a month to addressing Practice, later this Pharmacy accompanying

pharmacists incrementally. to MTM Advisor EMTM are Sinfonia transitioning pharmacist Our MedWise

DoseMe contracting of by is in one Our evidenced the the of infusion companies' our with traction recently hospital infusion Directors largest targeting Pharmacy as country. gaining of and companies also pharmacy

space to medication risk XXXX. This identification tremendous to in a mid opportunity. enhance our and expect we continue mitigation MedWise the upsell injectable into drugs, we is to hospital matrix As with pharmacist late

the development their the demonstrate our We to quarter this integration we’ve and marks value. have had opportunity worked first of hard capabilities, on

are as employee are employee functionality. generally clinics Cerner’s We they the for to excited employee month. as with model engagement launch viewed their model new a Cerner, where the SAAS clinics product this MedWise share using an place program pilot of

greater the as So Systems. toward step Cerner we this see collaboration first with

whom client the same are discussing We have with approach. employee we another

unit, of pharmacist schools continues practice to which in This multi-drug include materialize we system, U.S. MedWise. our the provides University business to Edition, our sales with pharmacy Asia. in student also and MedWise knowledge Lastly, and pharmacists the interaction only thousands

health the and payers. Dr. we American to of see large is Plans led President-elect continue plans Turning who Association, lead, and business Pharmacists incoming Payers our Health to Leal, Sinfonia’s unit, by from interest Sandra also

health interest opioid optimized a U.S. and engaging clients solution. of us for commercial members, largest two our the have plan the in with is Sinfonia largest pilot While shown

us of risk-stratify clients million with in of further last month, intervention their Another patients now had XX discussion. their approximately

the Lastly, our is IT business Apple edition community their data stores, Yesi In who PrescribeWellness enrolled led at the first in unit by more. medication launched pharmacy, with for October, the to PrescribeWellness. Orihuela, unit lead stores. PrescribeWellness and first local request our app late patient person their download one are PrescribeWellness’s refills, Android is This patients available from app XX,XXX consumer allows upload pharmacies who and TRHC’s of mobile

messaging additional will their late The to will push-to-talk risk launch over-the-counter add the to QX medications. local next with MedWise QX, score, medications, Our pharmacist. including allow version, patients connection expected early QX-early version PrescribeWellness a showing in with and start

drug For the a raising in adverse ubiquity announcements in of service awareness we launch market, also target will QX public of of testing begin effect events. the

proven advisory will our proposition solution possessing its well of We of platform this interactions centers, certified PrescribeWellness tracks with our team as support safety Direct that be and MedWise become pharmacists; via of this to assert via only medication medication prepared MedWise centralized until advisors. to mostly multi-drug our centers and safety the describes outcomes. MedWise and negative Both pandemic the as value and with TRHC impact hazards pharmacists local these certified PrescribeWellness our call

of can from position activity We of a XXXX across these we four for today, are future that is say business units, and our and very all seeing confidently XXXX promising. lot the

additional past topic, the who’s Sales our months nine different Officer, over than people. on team, color a CEO, more Chief On Dr. our topic. newly-formed has Sinfonia’s Orsula XX grown also under this former provide sales Kevin will Boesen, to

this as sector MedWise has our pharmacists, the laser-focusing CareVention patients/consumers, Healthcare all So for for PACE company health the growth. well been for payers, of plans, year as and TRHC, transformational aspects on

much events. adverse discernibly to the combinations, to this it light and pandemic. the so have become TRHC’s to offer novel invisible preventable We and catalyze adverse and drug to that and this humankind, We deadly behind due multi-drug we’re need shroud of conversation now for drug in with directly leave the to topic, about events solution to world this death tell ready about to suffering visible resolve from

Dr. to that, implementation, who will Orsula? point strategy view. of sales, I charge marketing, ask of her Orsula now from and Knowlton, in opine With is

Orsula Knowlton

new about our more you, Thank to was presented a what from share an just team. add provide perspective, update and like business to I’d sales Cal. market, PACE our regarding

model. with MedWise as first health represents customer payer transition our Cal SinfoniaRx of with include utilizes program Starting Supporting our to the acquisition’s MTM currently These robust number the this SinfoniaRx’s Magellan existing using platform. market, plan to SinfoniaRx MTM alluded, quarter. our first are thesis, our firsts EMTM managed Medicaid pleased we solution. our this

is which MedWise process; to XXX(b) national client, risk which to during medication be model collaboration Cerner, commercial growth quarter; national our health first to large first Second, pilot for our health solution four health SAAS first we which will their our five, plan organization, with we model have mitigation PBM process; optimized for using clinics. in first in XXXX. is as stratification will program, opioid SAAS leverage top in four, the record firsts MedWise a that also population MedWise and third, first and a license national employee risk electronic a That’s our begin our a five in

assure to incorporate with risk pharmacies, of their national medication have we packaging pharmacy, to will from system system a be medication safety. also This first. addition, In reminder interest including a TRHC’s mitigation MedWise

As exclusive Holdings, partner, market companion its you in new to an may division, the SinfoniaRx’s agreement. software mention recently Remedy Rx Humanis to have Canada that under employer read, I our in launched wanted Rx,

to these excited are begin firsts. We

PACE XXth Moving held Meeting XXth through Orleans. on National in was to the PACE, the Annual October Association New

includes PACE management, The united and record, TRHC’s consulting. third-party risk CareVention Medicare risk adjustment, TRHC’s companies now combined solution our HealthCare administration, PACE mentioned, Cal under brand. PACE health medication are electronic As

PACE to business over attendees. annual attracted addition Appreciation meetings, our In Event and new multiple XXX client

largest Pennsylvania. XX as Association XXX States and Michigan, are PACE the North number providers X. of of An there that September outlined Carolina with organizations California, in states include update

XXXX, the to growth PACE XX% compounded participants, As annual last years. five over over grown XX,XXX has a of January X, rate

Association directly by within PACE added client was leaders timeframe; featured their ER confident A National platform in four health short to that Rasa was fiscal and collaboration decrease related which also the were identified technology about and HealthCare in pharmacist to of quoted highest and years. consistently in News our recently was A October to has that their use that PACE PACE decrease IT that XX% prospects, hospitalization, value the ratings in a Tabula issue over total a the survey Health tremendous say time growth a XX% TRHC’s realized organization. remain conducted are

of support our providers directly offering, by ease are core XX% that financial believe of quality organizations We integrating and clients partner less their analytics. least than of a one PACE were Approximately PACE is but TRHC use are all as of of XX% growth. and acknowledging at we TRHC combining clients, the and, The our very these use service use in goal service, offerings. that for pleased the value impacting four the in future, stability data of service solutions

Cross-selling of our far PACE $XX of amongst accounted ahead the the first of CareVention is in cross-sold HealthCare nine expectations. customers approximately which so revenue year. of XX million companies We this XXXX, for months into

January by medication begin and For locations equity-backed Their of of July focused pipeline California March United growth is Health, which their followed risk private the organizations will along PACE, for-profit Sutter and the with includes Welby our medication with management, X, mitigation States. our of their with on one third PACE a fourth on risk X, in location, on services first Pasadena Stockton, in XXXX. consistent location partnership Health PACE December

including Florida. along begin will with Welby, clients, located and in Indiana Jacksonville, XXXX startups two South We new strong with Bend, PACE three

Our lines. starting service client CareVention visibility planned is signed expansion multiple the ever This startups, X. pipeline two exciting, Over openings with a year so greatest for is new on agreements. January we far have XXXX using XX with two into had Healthcare

sales on the a team As a Sales support led order leveraging and final sales Officer. note, market, growth Chief sales Dr. to in I’d give like by you XX started the SinfoniaRx, sales opportunities in efforts, In on focused by on fully in Kevin perspective, over with the market, eight To team, have payer TRHC’s we the Boesen, just sales a teams an inside additional we few of provider, effort including CareVention XX PrescribeWellness HealthCare salespeople. ongoing XXXX direct the to the pharmacist, for for and PACE. cross-sell team our formation to expand company. capitalize on Today, we

continue structure We our to members grow efforts pharma, sales sales appropriate sales Other team to have chain changes to cover made we pharmacies, additions and and believe their operations. our maximize and the that organization.

sales pandemic that and To situation. to TRHC remarks, pipeline, a adverse offering a we real has simultaneous the have events. documented impact robust regimens drug my of outcomes, have with positive a proprietary unique conclude on a strategy multi-drug cause and team,

to I’d Officer, like Adams. to Financial now turn Brian? our it over Brian Chief

Brian Adams

Thank you, Orsula.

our a pharmacy a efforts. MTM for the our center continues evidence national quarter, we line expanding as growth infusion all highlights support the by targeted well centers at growing call our growing signing expansion third PACE customers, offering which as center the include A University; saw During top the few of business, virtual of in from to our the for main areas and opening deal ninth quarter continued one customers, gross cross-selling Drake owned our provoked of of call of of XX%; grow, DoseMe pharmacist our organically nice our including margins. business

to details one referenced our had MTM that new adherence on We previously a I get the announced into I the contract the with contract quarter, earlier. customers. cancellation Before wanted touch of Cal of

We place third about and and, generate contract were in EBITDA. revenue the third that we $X $XX to of work We another the quarter. canceled, The fourth the expected quarter, million the in that in majority and of generated take time was of million revenue. $X was this XXXX million million $X contract at contract to third The and in adjusted was million canceled fourth quarter, $X approximately million to expecting of quarter. had contribute during $X

we are result, a our accordingly. guidance As adjusting

as year XX% of total the last of generated expect revenue XXXX, results, million financial $XX a Product XX% increase an in increased and Now, total we quarter XX% represented year, turning of $XX.X revenue to million, purposeful the a revenue compared to third continue year-over-year ago. for XX% of near-term. compared decline to to of we

our driven increased both amortization quarter excluding offerings. and the XX%. our from $XX.X compared year. third XX.X% strong contributions in expense XX.X% Service by as last third in organic within the revenue service growth million was well Gross year-over-year as margin, service acquisitions in of The revenue growth of quarter depreciation to of

The meet revenue long-term XX% XX% increase total SAAS our up revenue percentage a We to diversifying service base comprises last particular, order to result of primarily in shift year. plan mix, of to margin to compared compared gross on continued streams the revenue year. now X% greater revenue as our revenue revenue of our the of to in last continue was focusing makes our target XX%. In

to Product year. in last was gross margin, the XX% excluding depreciation of and amortization, in quarter XX% the third quarter compared third

modest this from was a in As gross prime we resulted to year acquisition transition a new increase XX% are a margin, Service result expected, The compared excluding we and seeing XX% service gross margins the margin completed to recent our depreciation amortization, in the vendor. PrescribeWellness as earlier ago. uplift of year.

change third impact revenue XX% Operating in you revenue of of compensation as represented were contingent quarter, the up total stock in the year. to and the sales The acquisition-related as have would our expectations quarter integrate are with the as with and our launch associated Precision infrastructure. reflects of build in is in Pharmacotherapy Research Development our of expenses to acquisitions, XX% out recent and increase last Institute, investments making of percentage consideration, XX% the expenses amortization, fair depreciation, in total operating the from well exclude When we the expenses a quarter. value line

from our operating over synergies As the two previously leverage and infrastructure. capitalize on our improvement continuing three in years as force, materialize executing and to expect to to next sales platforms expanding stated, on our the we begin acquisitions, integrate we resulting to

Research third our excluding quarter of X.X% revenue Adjusted compared the based was of expectations year last EBITDA, in to compared development with generated quarter increased $X.X last on year. X.X% This compared reviewed. investments we third the In quarter a in the line in just was margin for stock XX% ago. $XX.X XXXX million of to costs, terms year. adjusted XX.X% EBITDA I million of compensation, and to

Additionally, out not build our to infrastructure, some to compensation, last sales of our were unit. costs compared year. business quarter stock sales of to investments the only an is revenue X.X% also and includes conference X.X% intense excluding but costs, reflective related recent for of This marketing pharmacist

$X.X share of diluted share million calculation of are share the compared $XX.X versus in the $X.XX third per per net million last for loss diluted diluted $X.XX of loss GAAP XXXX. on million third a income diluted net period share XXXX. the Our year. count The $XX.X quarter of the of for XXXX of GAAP net for quarter GAAP $XX.X was third to for the quarter of million net net loss to GAAP quarter based income per third compared same

Adjusted of compared in net million to diluted per based for diluted income quarter XXXX quarter the the per adjusted XXXX. quarter income income quarter diluted share third share share of third million per are third $X.XX net Net XXXX for XXXX. diluted a was versus XX.X the third of the count for of share $X.XX calculations XX.X on

Turning had to million drawn. as credit unrestricted balance XX, end of XXXX, of sheet, cash line the XXXX. of $XX.X we $XX on available the our to million at compared million September of nothing currently with We $XX.X have

will I to To and for my our an full-year the initial an comments update expectations. fourth wrap up quarter provide outlook today,

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

our guidance impact the of result, loss quarter as to the will of and, cancellation. fourth the reflect during we the trimmed earlier, the the As from I adherence occur contract stated a have majority

revenue adjusted million updating $XXX EBITDA range of $XX million to in the in follows. We million. year million; range outlook as of to the to full to the be XXXX, be total we’re our anticipate For $XX $XXX

behind As as expect in margin expected XXXX. And as we adjusted the attributable EBITDA Research full-year well EBITDA in Institute. related costs losses margins are in margins to be the Pharmacotherapy now, Precision due have the factoring discussed about and Development expecting we DoseMe to slightly XXXX of contract cancellation, below to the adjusted be to business past, we XXXX’s to launch X%

In future addition, million. to any include consideration be in the to range we $XX expect $XX of million net This for not does to the adjustments Cognify. contingent loss

performance Rasa’s revenue pleased cancellation. this I’m EBITDA guidance with estimates ended our contract for beat the adjusted and for and the within quarter range both despite Tabula Overall, quarter EPS. We

as addition, the markets sales momentum the we we going work have XXXX building, to realign mentioned, beyond. In we’ve done to the in are I force all and serve out and in build pay dividends is believe and the

I turn closing over that, Cal Cal? With back to call the would remarks. to like for his

Calvin Knowlton

Brian. you, Thank

XXXX. As on this Rasa pleased far thus I Brian I everything all have think stressed call, are Orsula, in we and Tabula incredibly with accomplished

are strategic of our we results the and these been members, has could ongoing of clients. delivered hard every without where and quarter, have as the vision, our going, well team dedication Now, case and trust of collaboration all the as not we work,

sights initiatives have hospitals, and should for our into significant our begin will as science We tactics that of traction. are two on yet-to-be-public pending. concierge gain as touched XXXX. well Use local Certified MedWise pharmacists integrating

thanks medication you safety thank disruptive MedWise who to sophisticated listening, and our want have enabled I solution. us to propagate to our members to continue for team sincere

please open the questions? would Operator, At to this you call point,

Operator

Our comes line of Instructions] Daniels. from first [Operator Ryan question the

open. now is Your line

Jared Haase

for the I basis of maybe looks like new this Jared or XX evening. guidance maybe EBITDA guess Ryan down midpoint the margin’s guidance, if Haase from range. it the prior This about guidance, adjusted so at at first, the points just in looking look I is

Was kind adherence with So of that’s anything of the associated there noting? just going Or the curious loss else was why sizable carry-through. purely on contract? there margin that is worth that there

Brian Adams

is No, that impacting to that is the adjustment at guidance only thing our point. this

the So the contract sole loss is of that factor.

Jared Haase

for cancel your a there Or And in with is place was to typical clients control? change are that abruptly this it provision structure, fashion? unique, contract then in specific of able

Brian Adams

are which with adherence pass doing contracts, our This that in was we’re for interventions. an the management the it’s developing going for where to we giving us on the was contract, interventions. us the not medication qualification and the where population the target they to year one on expected this estimate volumes like client So typical early therapy

beginning on there so And It commitment volumes. contract. was understanding the of no was specific the an at

terminate interventions. opportunities send And us no these they ability to and to the so had longer perform

ask going I’m to anything that he wants addition Boesen Kevin to got he’s there. if add

Kevin Boesen

covered it well. Brian Thanks, Brian.

With of we one In to this large are that certain these with good an in plans, they’ll contracts, good adherence estimates, how protection, estimate do some some guarantees, the achieve many to good we of but some patients make ones target health want particularly that benchmarks. terms cases, have they didn’t. related in the there’s downsize star to

Brian Adams

– And a comments just to staffing on to that. related build just couple

this During quarter, pharmacist the were the to that was staff we virtual reposition focus to third adherence project to support. able dedicated on the

So in while were in quarter, the third this a up huge you to QX. support impact not we see staffing contract didn’t

huge a the to contract staffed not we decrease QX. not seeing in had in fourth in quarter because our this you’re up costs support So

Jared Haase

you. Okay. Great, thank

Operator

Next question is from Sir, the now comes open. Stockton. your Jamie line line

Jamie Stockton

on a to we is lot like weren’t for cost you some about Maybe just that, hey, said, be – growth. staffing It structure going sequential just cost seems in up follow QX, up there’s this there Brian, as anything the we to contract. think

So should that about are we statement within growth? thinking areas there income be cost the capturing of that specific kind as

Brian Adams

Yes.

throughout progress folks are to up, going process this year, significant comprehensive in bit started staffing is staff effort hadn’t the to on some know receive business. the or MTM But seasonality the support on. services qualified that much the complete we reviews this difficult the point to the are in So while be I required at quarter, past. specifically weren’t you up more little Sinfonia to we’ve there we medication touched the a was yet to fourth in the that as

earlier in So we leverage don’t had we same the year. have that the

in where see consistent place to in would CMRs looking a going going where line to be you’re second quarter quarter. have you’re consistent and we a fewer labor that in level costs, people than had to to delivered So we’re fourth third effort the and of it for deliver continue if the

Jamie Stockton

in And we you commentary think as you be maybe this PACE the thinking then, other that offering? you XX going the that I guys had, And about can that think for my that are base got market? guys you for then, PACE XX is one number of be from already four of off have end question Should that to organizations three as all give with locations about said on kind a locations main the growing the just some pharmacy that of standpoint? XX guys offerings the you Or institutional or that PACE contracted of would should sense some XXXX. that taking are year that you’ve of we core us

Orsula Knowlton

along and for successfully them. Sure. are startup could we they Because medication other cross-sell, do with some management. PACE therapy question. also are Thanks, Jamie, bring for services your organizations The XX in

As the at of number as far be XX end of the year. about locations this will

Calvin Knowlton

CareKinesis [indiscernible] mitigation. medication with are actually starting risk So XX the as

Orsula Knowlton

[indiscernible] And they have may services.

Jamie Stockton

Okay, thank you.

Operator

line question Wieland. of Next from the Sean

Your is open. line now

Sean Wieland

Thanks.

this little confused. on again, just a lost client I’m So

with SinfoniaRx? pretty every guessing client one not? word product MTM lingo, much of right a was the – this it or used "adherence" is your You’ve use to lines. Is that assumption, to other describe I’m

Brian Adams

that. take I’ll Yes,

programs, to for two is and question look One components group. qualified So if you But the you thanks request. MTM your MTM program. the at key comprehensive if the business clarification doing look the medication at there’s for reviews and Sinfonia –

year-over-year, Sinfonia our great. that’s so which And business. It’s predictable. is It’s core grown

– There and star it to because is adherence the tied improvement. component another call star to it’s service ratings is we MTM which

medications. the or for plans benchmarks patients related qualify three program, usually D MTM the order to to So qualify, Part about you medications, diabetes of adherence an measures, for don’t in statin medications, components, to look some blood different XX% star their pressure adherence star adherence to there’s and so hit cholesterol-lowering medications, adherence so at if who to

specific doing was So that program outreach to patients. to

lot a diabetes, to calls take meds. cholesterol reminder blood As of it, pressure,

MTM So program. it’s component the different a of

Sean Wieland

it And so, either, it was like doesn’t then sound right? PrescribeWellness

Brian Adams

side, No, the Sinfonia correct. It’s on correct.

Sean Wieland

did And anticipate? you

Kevin Boesen

minimal, types are have that very other structured contracts we same of in manner significantly and the that similar are [indiscernible], smaller. are that the

one by this looks is this. the So far that largest like

Sean Wieland

cancellation, be the had to generated XXXX this to revenue anticipated in prior contract? And you from

Brian Adams

for a It contracts. was done relative single-year, We that. forecasting year-to-year to XXXX hadn’t No. any

Sean Wieland

services And out this is of revenue? going to come

Kevin Boesen

right. That’s

Sean Wieland

tied Got services much percentage-wise, kind are it. one-time of these to of revenue, How your contracts?

Kevin Boesen

small. very It’s

far largest. So would service look million. rest maybe this are by this the say was I contracts the $X of – like the that it’s

Brian Adams

in Yes, aggregate.

Sean Wieland

so much. Okay, thanks

Operator

Next Matthew Gillmor. line Sir, open. question the comes line from now is of your

Matthew Gillmor

you contract. on I of this follow-up had Brian, million you one $X have think XXXX. I said for generated off it

from I year. confirm that, we’re thinking next wanted headwind so it’s right? So just pretty for obviously as to Is about that small the it,

Brian Adams

That’s correct.

Matthew Gillmor

capabilities populations. for Magellan about would of Orsula EMTM-like their Medicaid with some talked some said be you of using sort of the contracts an MedWise payers, and think I

be the it PBM also national with services Is talk hoping was payers? for or about think just could sort I both I how commercial using those you the model’s mentioned a population. working will of software, and of MedWise that size be you gate? So these build? great. will pilots there software? they up of frame kind are then, Or is contracts? these Are details more to And out of any way the there any would meaningful

Kevin Boesen

Now, this take question. is that Kevin. I’ll

very MedWise. programs We’re these the and use about excited of

the science, truly of to it and opportunity improve the to goals lives. MedWise care people it total cost is, of talk has how unique reduce to patients' One about for the been

It do a be with excited Medicaid Magellan. managed component. program the very, services so, And to very first will we’re

be geography be will leveraging support would more that to transition goal of Our in our those software as PrescribeWellness to a in network. the that we pharmacists train

$XXX,XXX a secondarily Florida. between It’s So that’ll contract total in in and launch in Virginia, then $X to million size.

model. we’re will it similar in and technology. start while the MedWise XXXX of very about service to certify train It’s their other program as that traditional component their excited that pharmacists have to terms traditional is contract adding The MTM a Medicare the to a is launching programs in use and opportunity we the

a So SAAS. it’ll transition to

that’s PBM same model $X to be that transitioning then, similar the program in goal looking It’s similar to well, very the thing. program, to that size, service as side in in size a on the with in of of commercial million that the It’ll $XXX,XXX the range. SAAS. And a is implement to type

So much drug the in in the events commercial, emergency those visits. they’re adverse measuring in Medicaid room plan, hospitalizations, reductions the interested very that result components, in managed all Medicare,

programs, those we’re very success, So to excited on it. and build launch that track

Matthew Gillmor

you’re the And And interventions? are the time. to model, to the EMTM-like that I that Is perform interventions plan by you where it’s what I saying take mean correct? an pathway think service, for a is doing over there’s

Kevin Boesen

Correct, exactly.

initially, centrally-based with plan patients, interventions health those. pharmacist that do or to completing our a be the either with network the pharmacists it So, doing will transition it’ll center pharmacist call PrescribeWellness the

Matthew Gillmor

you the Brian, know around formal then, could, is And probably you’re I to position give but pretty good. in side a sounds guidance the visibility like it XXXX, not if in PACE

as You’ve pipeline you’re payers. with be we what we got Should about targeting? this something growth thinking XX% still else? orienting around should Or be

Brian Adams

No.

appropriate I this we expectation. announcing XXXX that refine that pretty point. at results. But get at point, that’s to as think we’ll that’s an and Obviously, get year-end expectation a think reasonable into that this closer I

Matthew Gillmor

thank Great, you. Okay.

Operator

Next Steve question from Halper. of the line

Your line is open. now

Steve Halper

questions. Two

with growth item, housekeeping revenue CMS? in And a organic as just quarter? the update pilot what EMTM any on So the the was

Brian Adams

about I the quarter. can just update. in take organic growth the was it growth Steve, organic XX%

Calvin Knowlton

it the out XXX-page years. EMTM enlightening, was very actually on was was program from announcement, showed week it reviewing quantitative. mostly all but stuff, from last But the document that CMS X.X good Steve, they some and it was last – There came a a

it’s they or beneficiaries about engages But to according XX.X% it of interesting traditional beneficiaries were the found meet whereas MTM CMS, EMTM, engaged. that the very that was requirement, targets X.X% thing about

So of that engaged on in were been uptick people a the this. huge it’s number

little talk page Rasa here’s a on And what group did here’s Tabula saying one It the again, wasn’t did. this quantitatively it of comparing. this group was bit But pages, about qualitatively what it article. of on did, back the XXX-XXX

Orsula Knowlton

Prescriptive.

Calvin Knowlton

actually did And was medication Yes, it and prospective we the that were mitigation. yes. identification prescriptive, the risk ones only

Steve Halper

thanks. Great,

Operator

Thank you.

Grossman. your is now question David Next the Sir, line from open. line of

David Grossman

Great, thank you.

in particularly for necessarily the still loss margins impact the which that to about given Again, fourth you obviously of this point that want the low? Or had a providing this guide the significant kind the target XXX last without basis points? to do for to Just down well. so one expansion is base year, your as year, cancellation. be on next the next us contract year off margin a for how Do of that quarter, want the the ability fairly be by starting you going been It’s question brings on contract? thrown year of has think

Brian Adams

that know points question So think that a I could you ready XXX yet, but to to be basis just expect at respond comment. I would minimum, don’t I’m my

David Grossman

Because and through that And to of new flow then, going think given business? levels been business that expect you allowed growth wins expecting more today, pretty Is of just you three PACE, Or they see Or getting, that growth into the to that to How had wins. is is to to saw sustain the should it favorable do you PACE that some where quarter back rate obviously organization that years the the your maybe the this some you’ve I scale business? itself that was think disclose know an you’re that the metrics you we about experiencing? realistic? ago. acceleration it PACE do

Brian Adams

in mean, XX% that in customers on have. we expectations be based year I earlier the slight uptick with growth next growth now. of that what about and that with the number forecasted a consistent I now side, new would going the PACE right describing we think anticipate our was our into think right Orsula centers past I We’ve on current so would

little we some that I those for plans, get right able think be rates that more But comfortable still XX% growth of increase to think little visibility of the might into a growth As a bit. around now, at bit PACE. I

David Grossman

just it. one Got question. last And

activities do Now that those and and or up is backlog’s a or reaching that sales people to any critical you’re of of to sense building of may the other just pipeline, productivity force pipeline have the give on us the how the for example, kind XX advantage mass, metrics you XX Medicaid, share, people?

Kevin Boesen

that for question. thanks Yes,

can are in then markets, forecast space we So on payer which as core generating of We plans. a Brian together and in the provide team our put a some specifics. Medicaid, the putting do the that additional I for probably Medicare, together interest together worked XXXX. we have and But commercial sales is – the lot

it’s – tackling those that. market and sit are really total the areas, care total pipelines of we at chasing The in metrics, perfectly for having if the interest cost you that look And not with quite broad. people necessarily and are

the a of one think aggressive, even optimistic folks opportunity’s there. that, given the though aggressive and We’ve it’s target, pretty they’re each sales all I

David Grossman

Great, thank you very much.

Operator

you. Thank

of Demko. from the Stephanie question line Next

open. now is line Your

Joyce Xiang

This is for adherence client any loss your Specifically, value the to able tweaks is strategy. Thanks Joyce the due impact forward? taking Stephanie. be making my you going the you like that would Does Xiang change enhance sounds to It in question. programs, how position a proposition? to of – contract for

Kevin Boesen

one – don’t was meaning great don’t metric that’s health that was and plans. program-specific, program don’t I anything any an important been one adherence know – question being in Yes. I this there’s I and that with I there that this that for the ineffective. know case in think a this was that chance case don’t anybody think to thought relative

do and our an just an programs some outlier, a don’t pharmacies it We outlier it’s We So business. even pretty community are changing. support was do as like not our see thought it’s to We core that of it’s anticipate said, think really in those any – And dollar run, truly business is. Cal successful. adherence I amount. what large it those

Calvin Knowlton

you is if they large Cal company is look I the the all a less. – other at tremendously star this they’re ratings than undergoing less did client – right year. this year thing last assimilation for that other thing particular this the is they now. client, of think had another achieved And this They’ve

really busy made that But incentive they trying to to doing but star with ratings should think stayed them decision. assimilation have this it, I that they’re continue done get with think show their on acquisition. I an this, for really just but was this there So they really should

Joyce Xiang

year, rate annualized? this And how growth revenue looking loss contract we to should about is interim think your until next

Brian Adams

being consistent we’ve what as the it past. communicated with about think in would I

for rate Rasa year kind next to is be Tabula of this I growth cancellation I contract impact us about for that think think for overall appropriate this an organically XX% and year. would place don’t and a thinking that.

Joyce Xiang

Got it. Thank you.

Operator

[Operator Instructions] Next line Sparacino. question Franco the of from

now open. is line Your

Franco Sparacino

Hi, Prescribe, to guys. it quick. for I’ll is that tracking to try below? plan ahead, On XXXX, be

Brian Adams

or we’ve to through the right [indiscernible]. six This where that Brian. owned Yes, expected tracking exactly be months first them they’re we is so now

Franco Sparacino

top two And list number And well. in standpoint? contracts standpoint, maybe Orsula, as revenue short-term the be TAM gave think from a you you of greatest the a you It that secondly, initiatives if works. of a opportunity a rank-order have I’m just or one or curious new the from could may

Kevin Boesen

terms went This is that of Kevin. first Are she you asking the those through, in opportunities?

Franco Sparacino

the mean, think I small, Yes. things. other know I BEA but of opportunity is the some and some maybe opioid I relatively the XXX, of

So list, that’d Kevin, be the yes. first

Kevin Boesen

that’s the opioid medication then one Yes. pending the opioids on using significant the side science, managing launch, a national our simultaneous the top That’s that the opportunities, three relative rank. for payer. and analysis Medicaid there’s are launch, program, and probably large payer more and the new the Medicare so to decision multi-drug The opportunities so

for net centers but the patient programs. that’s others an smaller to space, use a have having that network, in provider they unique developed, it’s creates that FQHC an go clinical onsite Oftentimes, innovative we for that we EMR safety like experience as learning good integration with us oftentimes opportunity populations, that more a opportunity, where us we’re pharmacist have into the area. get The opportunity to pharmacy also who’s a managing so into work of a but difficult

And so, coordination of care is critical.

in but integration how and performs, be see very EMR And market MedWise how performs smaller, is see important. that so, the being able to

Orsula Knowlton

have agree, to to it’s hard really would say. I Yes. but

All of these are first.

might have than a be attraction – one greater another. So

instance, we’ll the for new their is to really. For are. so like This canvas look commercial around largest PBM, on almost our plans, discussions see is a we health where us,

Franco Sparacino

guys. Great, you thank

Operator

you. speaker. will turn Thank to over Please call continue. I now the

Calvin Knowlton

you I with very thank good-night. the we’ll joining think that. call. And that, much appreciate for Well, We say

Orsula Knowlton

you. Thank

Operator

everyone, Thank Ladies you, concludes this you. for participating. gentlemen, conference and call. today’s Thank

disconnect. may now You

Tabula Rasa HealthCare (TRHC) 9 Nov 192019 Q3 Earnings call transcript