TRHC - Earnings call transcript Q2 2021 | Tabula Rasa HealthCare, Inc.

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Operator

Good day and thank you for standing by and welcome to the Second Quarter 2021 Tabula Rasa HealthCare Inc. Earnings Conference Call. Please be advised that today's conference is being recorded. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. my hand is to conference It Dill. Kevin Instructions] pleasure the to over [Operator ahead. go Please

Kevin Dill

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

available of will Dr. through the on Investor will Relations CEO, Chairman, days. turn on on Tabula Knowlton, including the risks information Calvin Tabula recording SEC, section our of accessible For XX facing Factors website a is HealthCare. XX, and of it page the please be filed Rasa the call link to for XXXX. I call XX-K our Rasa refer over our of A Founder with Risk additional and the February to filings this HealthCare,

Calvin Knowlton

the public through increase of is attention $XX addressable These five access. XXXX, some tailwinds TRHC a and total call our in profitability in lawmakers segment. our at I relatively quarter as second our increases with attention a revenue market federal core generated by we on million our first-quarter XX%. In great market. but our MedWise as serving our our a Greetings our strategic the be This like you. our our Thank community revenue guidance thank with Pace and headwinds anniversary as footprint on we over combination revenue, led more to track Five these in first that years supplemented funding discussed for also end year our by years recovery we CAGR largely Pace offerings occurred from plans October. which the CareVention IPO, call you growth, Pace and deal perspective is X.X strong state IPO even five-year market, strong earnings than a the growth to later, COVID pharmacies our and approach would through our company of all Since continued slowed health we high to by acquisitions. segment during are and times. start derived to growing organic This joining in broadened today. from small, garnering in increase and of our exponentially The HealthCare range. of company and

returning XXXX, enter CareVention, the in second during of metrics to first our CareVention growth improved quarter versus all with year-over-year of a pre-pandemic the are our XX% segment by we our months enrollment organic to during trends in Within improving remaining direction. and HealthCare XXXX. X% of the Pace in the As positive months levels recent we moving encouraged key quarter

return are XXXX. range and in candidate to growth improvement quarter of business. one growth making an at front third in lead of on organic as X. to MedWise number is lead pharmacy ideal Ms. hiring driving the a United objective in making announced and Group, experience this recently expect payer strong revenue Kelli of positive Turning early XXXX double-digit of In our fourth her our C-level on to MedWise wide Slide we Healthcare the both to and to This is we most integrated year-over-year half MedWise second return and Kovak to our the progress with highlighted Pace reaccelerating the recovery along the Kovak PBM July, Pharmaworld, growth segment, has in our segment. our

We she had at add coming about her excited will she and in and already, are we the the new impact role positive quarters into as years TRHC. has settles

across Boesen an and going exponential short, who integration with team years sure industry engage near to will of make payer specifically sales are a The bookings our opportunity year our Orsula, a to will across interaction We MedWise about that later, our our unique turn is going future. on developments, to this the a new multi-drug wins ago. of as MedWise leading playing solution expand growth in now I'm for delivering over diverse with in it is in segment of come. benefit Orsula? but to to important number clients. investors will science to the Kevin TRHC segment to all her our simultaneous important have base is in role ecosystem, broader MedWise talk pharmacists which compared healthcare that including the

Orsula Knowlton

require about on an estimated in medical outreach seen Bill sustained Florida, forms to we state the services, state years this in to part the this California, quarter, for be significantly, at as the will an Act or that to reconciliation Pace and California. may states the along and states and and trend in Pace, funding be than XXXX, older live more has to a the expected Pace include the in With Pace, we and home the community-based will a are provide In with about impacting people, the MedWise majority all expand talked like exciting the our package with access developments addition XXX for CareVention long-term expanding as of believe potential of information have and Pace Healthcare few year this segment. Other in program Medicaid regard for plus state we should expansion participants coming the level XXXX. frail four exploring and Illinois division, notably which community. enrollment of I catalyst vast will double a By Missouri growth. Pace their Pace increased time, in Pace will Last to are efforts adding funding priority. who record number Cal. at fall, this comments, in eligible In to in and an benefit, our XX Assembly Pace. in Pace Pace states Californians population encouraging Pace brief important elderly for bills strong including focus After Maryland for Kentucky one Thanks, Florida of most expansion is to option their an independently

of integrated beneficiaries pharmacists $XX care services; Medicare, an care passed employed in Medicare care Kentucky, more momentum A reimbursed Medicare professional for passed Carolina practice. for of to the XX% areas B continued role with for nearly value-based legislation clinical Congress. status ensued as well from pharmacists Pharmacy At levels Indiana, Kaiser by the managing be per the of utilizes TRHC it Ohio, of states where access total states Legislation federal participating to a government Underserved This and related act practice quality are expanded of practice XXXX. in X, delivering role states the three-year of of as pharmacist and pharmacist. Turning reimburse examples over patients legislation to management pilot beneficiaries improvements or their to provided range is of them XX-month Also, successful State State for XX in XX Enhancement by scheme with integrated in is to after XXX to important of another scope savings introduced catalyst dramatic pharmacy primary and as asthma. their care and such Part care for groups, planning pharmacist XXXX, high-risk are resulting It example, into while pharmacists pharmacists was XXXX, chronic disease, advance of would signed states. shortages can scope heart passed $XX Status the provider pharmacists XXXX, PrescribeWellness expand care await X,XXX to other pilot Laws to including XXXX. Medically community. cost this Perry with are services, into provider a July period of provider far recognizing providers This demonstrating community rating. be to under CareSouce have between medically plans XX multistate pharmacists launched the and Governor's the bills pharmacies a get model care pharmacists introduced a and Areas was if in for at signature. model chronic for several in passed clinical pharmacy pharmacists in high client since glucose both now under pharmacists emergency there months, a plans. asthma these engagement. the on the scale the be An better enable MedWise, where XXX providers allows In law, state allows legislatures bills populations health reimbursed underserved interdisciplinary conditions Act Within new Starting of managed and which a North the been and department there hospitalizations, for health as that number BlueCross, of the pharmacist launched provider six pharmacist recognizing diabetes, member have pilot part as permanent Similarly, XX pharmacists control as depression, care patients The outcomes, clinical Advantage BlueShield. of and and part for per XX exciting the reduced managed of level, the in risk. pharmacists who Group state-level, is Part plans pharmacists paid bills as XXXX. XX health the program already embedded Medicaid as such and federal is programs, as provider in of example, a CareSource, independent and identified level at vulnerable services the and commercial in Iowa month XXXX, XX, services. Provider from April or the and Wellmark, Permanente, Iowa, Thus And than which status in Shifting plan which paying B have exist, Ohio chronic Troy the and Georgia. have effective under enhance as XX seniors is example while to blood pharmacists Medicaid program plan under our involving client states and X% individual bipartisan in of

this medication activity pharmacist New license agreements the segment. comprehensive to expertise impact directly practice of optimism key care. our our passed evidenced Risk continued outcome adoption or total stage future collective pharmacists All for healthcare for In empower through the collaborative for factors services for and practice practice recognizes in Medicaid, MedWise of the their as MedWise summary, by outcomes to strong scope which within expansion, at legislation, along our of Kevin? growth areas, delivering of cost of the and drive three Jersey's furthering and to of Medication Reduction Model improve pharmacists efforts patients, and enhanced these top the sets the of recently implementation science the with billing MTM

Kevin Boesen

Orsula. you, Thank

the was field the a due quarter to more highlighted to return pandemic. of second year COVID-X web-based by The sales after exclusively a almost than

a this chain summer, live Pace site on industry of country, been at conferences. number pharmacies, several XX than the example, numerous has an health our centers across and plans, team As more

We relationships have sales professionals, with successfully expand also to continued shorten sales to have cycle. experienced leveraged sales the team the who

of We of the by start sales since have increased the the XX% size year. the

core our community the we team and to markets, self-insured providers, services pharma. addition technology and MedWise directly pharmacy now members payer employer have Pace In healthcare to and dedicated selling market,

through the to size team XXXX. sales continue the the of increase will end of We

quarter second the In we renewed HeathCare's of compared XXXX. earlier, Pace addition XX% growth in were quarter highlighted to up bookings first the to organic CareVention

success have efforts cross-selling to strong continued We lines. Pace programs for with multiple and contracting with our service new

from Pace about to would strong July had year-to-date and As the XXst we a early have of remainder bookings, talk since material of To QX backlog address contract XXXX stated in our I for couple slip a press release, progress our July. of like into we as we XXXX. signings implementation

Specifically, MedWise than is highlight I last segment, which we payer would during are the our like bookings doubled generated year. to more same what period realized that

booking have quarter quarter. was already the XXXX, bookings the context, company's the QX highest pre-pandemic in in surpassed last our which For additional QX history

XXXX. half show healthy versus We are confident the will bookings growth XXXX second full-year and

ability enhanced model and clients for of enhanced unique Humana a has of win Science nation's our for contract wins across payer current and type MTM with MTM WellCare, a included without our MTM MedWise wins continued services our MTM accelerated new with with traditional growth and plan therapy model Advantage one provider customer, the payers, medication ultimately XXXX largest groups. to MTM employees BlueCross, management our of Key wide deliver Medicare contract our rate. to multi-year and largest Our spectrum a combine a programs programs MTM future renewal new of a BlueShield enhanced concierge risking expansion regional new with

community tools to and continue enrolling through of our recently multi-year Unit software in of Medicare. Additionally, of network our the our and allow enhance agreement clinical signed patients services will support to network support our engage patient This to Business a software. through agreement access have loyalty pharmacies several we and use PrescribeWellness to pharmacies enabling

Lastly, February progress I of talk XXXX sales we in XXXX bookings wanted already that represented revenue this equated revenue generated our back new revenue. in-year XXXX. into above key toward million. all was of as $XX At growth, end points Recall to our one This the the have of than would target, X July, we of percentage is the revenue which convert original of during of target. XX% attained which components in-year more to part highlighted we XXXX guidance XXXX about

We close quarter. in by remainder third of this gap the expect the Brian? the more to of end

Brian Adams

X.X% million QX. and Thanks, of Kevin. QX on of high and versus at year was growth report continued at members. showing and I'm X% Non-GAAP was margin improvement basis $X a range end guidance quarter growth to pleased adjusted our range. represented $XX.X million the the guidance a midpoint execution EBITDA X% our revenue by another team sequential solid of total a versus our right ago represented of and

across and to to QX both the sequential MedWise expect we guidance, growth Turning show continued segments. CareVention

With XX% we implementations growth. this to the the growth QX last and in inorganic is quarter MTM quarter midpoint the October, begin to from of declines to of expect Note, be XXXX. year-over-year I'd sequential contract specifically acquisition that the this X% more that balanced range the like of half XXXX. as revenue representing result early year-over-year as versus will our show we a of anniversary of growth to contribution note healthy MedWise revenues This growth a well in compared first delivery as year. new interventions throughout Personica

segment in our XX%. growth organic in of XXXX to year revenue are of of range EBITDA full reflection than large a with range possible adjusted and of full our to our contracts that sales growth year of estimated XX% concentrated X% release, noted quarter ongoing of MedWise activity the non-GAAP our have for in representing the range, outcomes. unchanged a press ranges normal wide for a the the including and guidance of to The and As high larger XX% level both number be revenue third remains

on had and Slide significant improvement in and our flow QX highlighted and QX. from we in expect cash cash As flow QX operations further during free both improvement XX,

turn in invest the marketing. million We $XX Cal back expect for be it in that, comments. we as XXXX With continue free to R&D for flow of cash for sales to closing range negative to over and I'll

Calvin Knowlton

we Q&A. on out please months Operator, to first Thank performance open strong closing a the you. call look the remainder half To with for of pleased close, are XXXX and our forward note.

Operator

from and [Operator Instructions] to Sean question you with Markets. question Dodge First comes Capital ask a a RBC reminder, as Thank

Sean Dodge

good on those a the but morning you point there Kevin, up bid think and you've year-to-date, instances congratulations starting good double Maybe of were the bookings. on where those momentum said, MedWise Thanks, bookings. put yet at in quarter. I not the I a won number are can you think where but into far so

could have some as half help is also on if put something or the anything then you lift there numbers could a timeline of that? maybe just get you year? into the can we around for back that So, share And

Kevin Boesen

appreciate for I Sean. the Yes, that. Thanks question.

bookings signed. You actual are are booking as a a win we count until well. as correct, business, the that way we we If do won't contracts

So that large have in we and do we flight that of wins the revenue a to quarter number and referenced. sales close that by expect I that's of third driving end in-year

Sean Dodge

for can centers way revenue turning and the the I expand. continues on, what guess like in And to pipeline the in the contribute fulfillment new of new these it those there looks Can numbers terms incremental anything medication in begin Okay. wrap on looks share what then Pace, XXXX? of you of for some to implementation like help XXXX around, that I how can profile anything you frame can the these in revenue like? end mix, average guess, of else include many or to implementations

Calvin Knowlton

I Sean. that. will Hi, take

I around we during implementations quarter pharmacy had were second the heavily concentrated notably services. that think most the

do we XXXX that So have they're see forward. revenue a to expect going that impact then going meaningful on and ramping pretty

third about the revenue we release opportunity pharmacy-related So on of for the obviously a earnings that call XX us. and in the that highest the are and carries quoted

Sean Dodge

Okay, again. that's helpful. very Thanks,

Operator

with comes Ryan Blair. Our Daniels William from next question

Ryan Daniels

questions. Hey for thanks taking the guys,

signed the recognize think into-green you timing revenue merely delayed one a Just or that it quick process, contracts to that end delayed? those contract was Does been from on by got be the that of signing the to meaning July. you'll the appear the have able that delay

Calvin Knowlton

delayed that the contract the thanks Ryan summer that two road for on been folks question. signing, week. signature just I haven't Merely think years the vacations for for Now, the a

Ryan Daniels

pricing can demand seen in patient and monitoring I'm pushes solution. you've the bit on out that, about a your curious if develop the remote that then, any more around that talk to thoughts to great. little a market opportunity? in there maybe just are going just what new is Okay, potential and you partnership reach And you the

Orsula Knowlton

Thanks service participants, symptoms hospital Yes, interest to reduce staff the we question, for that to hospitalization seen should an as the of add-on avoid have for try Pace a are COVID its be symptoms the with from available to sure, number in Orsula. that have Ryan. or discharged they participants. COVID to really That's need and particular those way

have We anything. not projected

large a we of and have have imagine, as I of. pilot, try you issue to major programs know, it's get a far ahead As can number as such we interested a in did

So in with small percent the range. offering typical, the We reseller acting Pace really as of that. charge would $XXX have get relationship a market Tice, is who from is to be and a strong very that's a product It the and the we product us. of the

Ryan Daniels

a at seems in groups? is in of curious Okay, one variety more you developing to maybe opening concierge our how I of IPO those partnership-type then pipeline? you're I'm et the do and for medication to potentially business patient opportunity the robust, the some you Is with you talking your now cetera. risk offering be the you Thanks. more ADEA these, that, remote think adherence that's by a perfect, the sales like maybe do the it started services offerings thoughts adjustment risk Company avoidance, one, more bit like this monitoring, last and the just since also different and have Cal medicine a but up the progression even about providers, the about out of and of model now MA-at-risk ADA, talked and little really

Calvin Knowlton

Yes, absolutely right. you're

started; financial people couple and at so ACOs in have that risks. risks platform at are a couple do are focused financial entire we at fact, that others of line, In our in of companies are one just a is

with where are got So customers services plan maybe other beyond existing right to right a able we to you're the deepen how relationships our strong that that Ryan. for absolutely now. some Kevin, we've of on are been of with you some we have. at want We've risk expanding touch

Kevin Boesen

visits. some and in I that and driving how our is our shows key hospitalizations that science ultimately have point think Yes, reduces data a the we that's of room emergency success,

The tools patient on health care. while providers that at-risk help plans about enable reimbursement you other maximize their talked they're improving that to

And science. the we're that so the is that through and offering services all of

to So, care Pace we're only see expand allowing really similar us of services, in your STAR-related to is provider it's and provider services it's these are that carrying MTM are ways impacting to allowing Advantage at-risk not metrics, groups you unique we that of us a risks. point, because total driving expand Medicare now cost

Operator

next with answer that question? from our is that right, Does SVB Davis Stephanie Leerink. All question

Stephanie Davis

taking my you question Thank guys. for

Orsula Knowlton

Hi, Stephanie.

Calvin Knowlton

Steph. Hi,

Stephanie Davis

I want risk extension to calls of in folks wind program as for solution? conversion maybe using wins prepared EMTM a a on out go-forward lot for MTM the creates heard potential touch if a that Hey. a comments; the MTM and outlook look I for the near-term opportunity actually

Kevin Boesen

Yes, the within I from really with has actually signed paper think put we we have good that responded two people insight days. all had been out that it that with and to us

weeks. a the So leading in couple meeting next CMS the we to of have with person charge in

got we've here. the program So is, selfishly, more we've to good because doing great look, that trying them expand things focus actually we get with a what to science, what types we're the But got to results. on of the and program real anyway, on the more do response we're

we've of addition in so are Jersey the also happened in besides CMS New have at done top the we're and that, And in in CMS, six process. six, New told have the we're states besides to another so, other we now Jersey speak. and we about that we what What are now have to copying, Medicaid that

will the university see we'll ability pharmacists. improve now; that takes So Air our certifies group to the that Force and the that our how

as opportunity million and there and, it know with big are these you Medicaid. XX states to other to EMTM to take all million a in to think, expand into see also Medicare in XX we So people we had Medicaid

good opportunity. a it's So

Calvin Knowlton

Stephanie, I’ll...

Orsula Knowlton

Did you exercise, no oh continue.

Calvin Knowlton

a traditional contract of little ability science as bit payer renewal wins, we contract and add I your was the just well the that MTM that a to going question program. XXXX win to preface just the had as into that to to payer that, to with directly the sort to related large our are of add national large back the

certainly driving outside of EMTM. it's So results

Stephanie Davis

So if very of takeaway Cal's risk confident extension talk you you the had sounds in EMTM program, correctly? about like, profile if of reading to it this guys feel kind I'm

Calvin Knowlton

can when of mean, but better we've days, we'll mean, the contracts last of that's that in I to those head, not Kevin when they cool I couple answer our route, happen, provider that either impactful. using all very just regulatory but the a as need Well, I that of so we in right that happen, us meet earnings the their I'm told they and what whether they interested weeks change contacted something expanding that know, have some that two the freestanding need went in does was and said helpful. encouraged largest with or to if want months or what through excited met to within were legislative does and to don't three do most we change don't and us. consensus MTM partner to we that we're that's frankly call, see, I see country about with be, people I we know with and MedWise more ago, after of are goes so would why is consensus would type we'll them

got just, we've it's ahead tremendous then now. ramp to of So, that, Medicaid right us a the we add

Orsula Knowlton

October the that that think publishing be thing should three results the coming now the that intervention. is And results on out in most a right our and exciting we're available of secondly, will be peer-reviewed journal, articles in specific I

Calvin Knowlton

Of the MTM.

Stephanie Davis

MTM. the Of

Calvin Knowlton

kind pharmacists all the very do, three, that and what had the we a journal. robust be interventions, were articles on one, and what Yes. what got outcomes We've number three the second special specific will of

Stephanie Davis

one with opportunities don't want and want MTM leave out. a I the quick I just to for Brian. the Under

with amount how think ramping these of it feel XXXX year paid? do giant pretty Just had, on they timing dependent given wins about you up of or is outlook, wins much like you new FY fully at point this de-risked the the of just

Brian Adams

Well, Stephanie.

Kevin heard XX% as I probably of end think you July. about the on target of sold the we're say,

the a end there's but pipeline should tremendous a So through we're out the be we good in if execute, the done still quarter, that third year. position able of to work to we've close be to got

Stephanie Davis

right, All I guys. thanks appreciate it.

Calvin Knowlton

Thanks, Steph.

Orsula Knowlton

you. Thank

Operator

comes Sandler. question with next Wieland from Our Sean Piper

Sean Wieland

Hi. Good Excuse me. morning. Thank you.

Orsula Knowlton

Sean. Hi,

Sean Wieland

follow-up on Can line Stephanie's interpret that help earlier comparing results across EMTM. with EMTM this you data us CMS a week them regions? the just of questioning the that And all published on program

Calvin Knowlton

folks Yes, were signed the, And years. up across risk that Sean. all them XX million every find we are The came was which XXX,XXX XX,XXX out risk three first few in score about they was those who the strategy to higher on and AB&D But saved $XXX people, them interventions it stratify are had because a years. and reason people homogenized on their received our we to we the with met data of month. our people we intervened in and first the

plan but the doesn't at to will five when these risk. ones be, three the them, it when business people overall it mark, meaning over So, was on in that it intervening as hit be we or you took not the that that a you X% are presented at look will

analytics So that's on, results. and looked kind really what of were denominator everybody the disconnect at, the the their actuaries over study The over just was we intervened was the people our modernized the were way there. total basically

that was big disconnect there. the So

Sean Wieland

is that how among understood? participants, the is and other And disconnect CMS well

Calvin Knowlton

somewhere and in it back five I original the and Well, what they XXXX but knew doing, somehow. the them years, along with submitted they've we've was, proposal we that got read were XXXX guess what alluded we

that's ago months through have to met three them when we or it, told we different continue well, go process. it I'd with we why extend that's So and will have so say, it to a were

we to couple process; it explain opportunity will achieve why of to so took another in a this have that's So we weeks.

where see we'll So it goes.

Sean Wieland

on Okay. even what comment And then full-year halfway vendor your you bookings designations the Can the back of visibility based on half of into we're the one ramp have the into and on the half, percent on year. the the you the now through for back got? revenues choice, year Brian visibility you've

Brian Adams

XX% I'd this of Sean. we're say Yes. point. north at

Sean Wieland

To end or high lower? the midpoint or

Brian Adams

To the midpoint.

Sean Wieland

right. Thanks so it. All Got much.

Brian Adams

Sean. Thank,

Operator

you. Thank

Our comes question next from with David Grossman Stifel.

Orsula Knowlton

Good David. Hi, morning.

David Grossman

good Hi, morning.

Sorry I on mute. was

terms the you I activity of bookings for lot on you've some been to sense the about, contributing of context that again as of mention just commentary an give just there's anything expansion it if here to one well. follow-up how So of maybe sounds or terms and revenue us talked would renewal year-to-date us perhaps a of about give meaningful was and a growth. that that that a to wanted scope I be in of was the new may like in could know potential some those

would to context any be helpful. So it

Kevin Boesen

sure I right. say you're David. would Yes, that

One we customer revenue about overall the the we we're a be ones following in this that so that AR sort continue and renewal long-standing grow core contract The excited some be what for in that adding would year the point new in year. year, at of that the does about are of half tends include to was were expansion that, of remainder a with. services it's to

in third more will up little more the end already, bit some we some growth what give though end is, XXXX said around by up set of to provide the bookings you we've So, detail with a you quarter insight. good

So, more come. to on that

Calvin Knowlton

we bookings was in be just David, big clear, to just renewal numbers. renewals referencing, include that the don't Yes, our Kevin

will include that does included of renewals. it the be but So expansion not

David Grossman

of I XX%. the left the what's And balance it. Got guess

have just million have that deliver that I your does the half that $X.X we to the sure we in year understand mean midpoint, in the back math? to about of make the to So bookings

Calvin Knowlton

That is correct.

David Grossman

from the context the over seen is of of end Okay. that any remind don't to just the I any, And historically to is just of Company a achievements past? typical has there that December, remember us July how number? again, frame

Calvin Knowlton

payer expand a the and relative So with by has of existing different supported clients to we've is pipeline the that unit growth some of pharmacist with that had created contracts. and the number work opportunities consolidation to we on we number that the the and the have recently

MTM ratings, core relate in quality some that services, support existing it align. that we what improvement And from for so, payers pipeline have in the does uptick some contracts to we spending to see

David Grossman

reconcilable that's point CMS what populations that been them these able back, just you're even entire population but questions there's the you've commercial understand, maybe us market and on intervene save you're EMTM on then looking that, their out the the a to relevant And across Is again, going data playing is cost with markets. when Because been people and X% Cal really to it. to you was to for in assume know and where objective you out savings? X% that's help save can can not bunch a their of are entire disconnect your or I I you Got trying achieve the kind if they already of clients. that CMS, for to that

Calvin Knowlton

was we Well, for you're what right, the across exactly program now, it them so X% all and population market the when tell competitors whole we is. the

stratify the as risk with see intervened any Medicaid million XXX,XXX with is New would about this example, had that working to we sufficient Jersey, have there patients risk And through that to sense. enough so if score we make be we were For state some people upon. we in X.X

So the cohort. on it depends

with So the in risk the anywhere medications in us. the see usually point, because In people population, to mean for to time see sicker your typically I people, fruit that hanging low in teens of commercial the drugs, many some the sometimes of I most single-digits group. are, we two where XX% many they're comorbidities. have have older a younger just or a we typically have. it high on

David Grossman

Right.

So least the level, individual the as opposed then, you're they're based population on commercial markets. you've level into far? seen on sounds going to to clear when like savings be what satisfied the at It so with just

Calvin Knowlton

we Yes, convert I of system their a into quality patient that it we and of anything, do and have we through dollars. run think is and what the we them, and with life, before also high a few then we base come ask who here's risk but tell number into back the get do

So sell stuff. that's this how our of model we

David Grossman

just about may work you need the some market, market, suited may to And to better last think one for populations go in with partners that Okay, to past, including the about older of using little your product that be I got newer it. thing, consultants to talked ways efforts EMTM nascent either they of of report that your savings talked bit could to bundling customers those achieve. or kind think you a provide a and MTM also I with on still taste Are to pretty anything those?

Calvin Knowlton

lot I our science as success. point MTM, with the driving of far as EMTM Yes, second think that's to the a bundling what's

From spend energy before us. the us resources. huge to opportunity that's markets a time think for consultant it's I test win much given too and been that an front, we So and

the consultant some consultants example help to market good a where initial a in So self-insured brought some that trigger relationships brokers we with employer and wins. benefit of is to create

four now and are FTEs additional helping that that we've support And expanding got that. so, some

David Grossman

All point, just right. Kevin. that on bundling And

So what bundle? to what the you are like, when is you pricing the economics

Calvin Knowlton

Hey, one. David, I'll take that

we're with MTM typical standard EMTM, it's going our to the pricing EMTM you're solution, bundling for EMTM that our if the addressing So for pricing and be MTM program population then group. standard it's with the

the model but each just those So been solutions. the with we we've that over populations use same one using, pricing managing of we're that

David Grossman

Got it. All much. thanks guys. very right, Great,

Calvin Knowlton

Thank you, David.

Kevin Boesen

Thank you.

Operator

[Operator question R.W. next you. from Baird. is Our with Instructions] Kesavabhotla Vikram Thank

go Sorry, ahead.

Vikram Kesavabhotla

recent the there you I back anything volumes just guidance seeing trends on half curious, good year remind assumes you're Thanks. case your thanks, through do potential this enrollment us the any Pace for that Hey, see morning. the of market? was and far in could just based you in Yes, as changes as what

Calvin Knowlton

Sure.

we the at second assumes month. north get and sequential just of X% per about basis So the were that quarter to on exiting X% original per guidance month a

against our So expectations. nicely trending

didn't second going the of we we fact, be, ahead as we think quarter we little were plan In did. where rebound quickly a to bit were as to

year, into So things second with I think expected. of half the getting the are in what we line

Vikram Kesavabhotla

And great. you called of you've the Okay, to follow-up, some the just increases sales out a then made maybe team. as

you in expectations hiring through terms the if your of date are more to and type Just Thanks. you've can to progress some that us there what the do? color made curious the on size plan you give and year balance of of that the

Brian Adams

Yes, absolutely.

as field-based as markets side bench far payers that and in as as we've talked the previously pay of well core care increased pharmacy business. we've in our the So about the staff

existing So hire some have well. folks in space from relationships we and that to continued that's experience gone that

field-based things, side our of So that's that strategy. the been

an some different In team if will in-house support some out field-based team does started based those it's in-house of sales segment, historically help could some but our that of work three for of to sales opportunities addition, that so and teams. have those to We've lines of California be hire business product we've and got for that our the fourth lead our other from and community we sales provide three also some that location generation in a our anywhere deals teams recently our services. and related pharmacy hospitals,

then the So, about end try and target that's year. get XX to of growth a is to total to the really of the by the really

Vikram Kesavabhotla

you. Okay, great. Thank

Operator

day. Thank our you. Have a wonderful participation And for ladies Thank and now your you today. disconnect. program and Q&A gentlemen, this may and concludes session for you

Tabula Rasa HealthCare (TRHC) 7 Aug 212021 Q2 Earnings call transcript