MPLN - Earnings call transcript Q4 2021

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Operator

Welcome to the MultiPlan Corporation Fourth Quarter 2021 Earnings Conference Call. My name is Jordan and I'll be coordinating your call today. [Operator Instructions]. I'm now going to hand over to Shawna Gasik, AVP of Investor Relations, to begin. Shawna, please go ahead.

Shawna Gasik

Jordan. you, Thank welcome and fourth XXXX quarter Good to call. earnings morning MultiPlan's

and Chief is This and webcast at through www.multiplan.com. today our me section Executive Investor call be Relations the Dale being Officer. Joining website Financial White, Officer, of accessed Chief Jim is can Head

morning. deck quarter issued portion During website of we slide along to XXXX on release available with the refer call, is this the fourth earnings our earlier press our supplemental the will that Investor Relations

the and fiscal on ended we to Form may due remarks forward-looking on or are included associated Risk uncertainties of Before annual like results year forward-looking and date materially based December with fiscal those responses to Reform on September be ended information expectations, business, quarter statements discussed XX-Q our meaning and may in with as the our I'd the you that Actual from Litigation stated begin, XXXX remind the of risks XX, Securities other available to Form include Any management's and in Factors XXXX, the which filed beliefs XX, XX-K documents report statements such SEC. assumptions and forecasts this filed statements report or to quarterly and for our XXXX. differ of for forward-looking the Act of our implied represent the questions Private within call. by

our that consistent more will gain measures elect this these future, earnings press views investors of so. to is over no a to in extent release the most are the do financial now unreasonable may discuss available we the Dale? financial such included GAAP company's to available management obligation of statements in effort, results how without understanding website. of measures assume please we turn these financial Officer, Chief our Dale We Investor help better the financial the the I slides with A is measures. call non-GAAP financial While call our update and measure, in we results. Executive in on measures and reconciliation believe would non-GAAP Certain portion the forward-looking our that complete providing some comparable at to to note and point to Relations White. like

Dale White

fourth Shawna, Good earnings call. our thank and to quarter you. welcome everyone, morning, XXXX

leader capacity DNA, He was perpetuating end the in Before the the gratitude congratulations of I'd the today. into our XXXX, MultiPlan, get my on helped of on business of extend like to deep Tabak. operating us X,XXX role capital we extend retired the as the he settles he end my Redmond, intellectual mindset opportunities. leadership of who to a firm our and confident MultiPlan working partnership to year, He at Mark's industry. behind. of build with to control in distinct of under and a he has steer a We to the hand, into CFO assumed MultiPlan's colleagues Board and seize the hit to the post been it a on former of in the Mark's growth. and the MultiPlan's into career November success. will announced behalf combination I unique last CFO, have work a Mark January, in company's steward our with the the call of vision, financial company's ground tremendous right Dave company's me into I CFO, impact to would immeasurable at the I'm grasp instilled investment previously XX-year plan, invest past running, accordance and cost left and with Head Mark healthcare retirement. entrepreneurial financial And that my In and has Jim sincere for at chief the Chairman and like after had transition that dedication my proven the position Dave role. CFO moved with appreciation of wish also the in the who moved untiring all level, welcome executive Head, Dave the From on forward XX leadership the Dave banking. best expertise in the has to and in him new in He's dynamics moment, Chairman. executive I of the to Jim years. role incredible personal on is assumed on privilege legacy look

Okay.

company. hand. moving our So, years external one was at A successful history. numerous a of in environment, challenges set which company's the the this of XXXX for customers quarter fourth and in most for on The new savings EBITDA in the to the year and in despite records adjusted business revenues in capstone we and

critical by are charges potential consumers. we we in nearly over play the the proud of savings on and alone, we very generating $XX billion employers role ecosystem, savings payers, processed. start saying me XXXX billion for that of Let identified healthcare medical In in $XXX

assets and and strong us foundation capabilities that a operating results. deep connectivity and platform, customizable domain significant our has knowledge, the Our extensive to reinforce advantages offer our independence, value enabled marketplace unique our in established and achieve competitive

up sixth EBITDA and guidance the a results X.X% history quarter XX% up nearly quarter illustrate prior-year a quarter million, prior-year highest company's top and the and sequentially momentum, Revenues revenues was sequentially $XXX.X EBITDA our in consecutive the last end November. quarter. nearly adjusted $XXX.X provided we of the strong company. marking at our XX% public yet million, from the fourth the ranges performance from up Our were X.X% solid quarter. were Adjusted Both of for again as and

revenues over XX% EBITDA and over For full-year we grew we XXXX, grew XX%. adjusted

fairness operational for the adjusted our of organic margin, XX% XX% for the over EBITDA. public and burdened and interest business fully million $XXX representing free and by strong to on US capital cash growth for We COVID-XX three-year and generation best-in-class vision we using of over and you MultiPlan's was serve to invest of health and range health and was in the operating all design. and plan affordability, on EBITDA business. these over cost, reflecting services have wide revenues grow delivered their $XXX focus sponsors comprehensive achieved members unique million pursuing our stakeholders In efficiency XXXX of declining control our single for the to X% million a We preferences our more in If underscoring mindedly $XXX scale impact and results financial relentless care healthcare cash company We million, flexibility over acquisitions, total generated XX adjusted roughly XXXX, more taxes in flow, plan our by based payer of our helped excellence. suite the we system. and plan flow than the customers XXX,XXX in bringing our employers, than levered for a promote expense, strong

Our patients. services nearly that $XX Their plan the XX over million health over claims. payers and sponsors serve billion XXX healthcare unique million helped on them saved

in stakeholders identified our supplemental XX%. page by As or $X savings these for we XXXX of five shown over billion deck, on

we of the deliver about by charges. additional of We to measuring is this identified volume our savings customers, our HST, how charge of COVID-XX shows accomplish mix business elective Excluding enhancing it on for weigh grew think drives platform services savings key capturing acquisition by like per able our claims reducing claim to billed Growth claim we of and services efficiently we our even or the continued X% high represents savings dollar because by more the our surgeries. were performance to of by $X.X the savings rates contributed to value volumes higher to billion as leveraging value medical in the by deliver pandemic revenue. and identified of

contractually to the receiving or by plan for with all Our delivered sponsors that providing results suffer identify preclude an We this to the acceptable services in diminish the significantly healthcare very balance consequence that providers plan and adjudicating to US reimbursements provides consumers. members the are complex stakeholders of and hardship potential financial to system. payers, of do health solutions MultiPlan solutions bill. means all seeking the a between stakeholders independent that are of a to direct fair value rates health

over the balance mitigate of and In unique independence because our to our problem. our providers, million services solution with X.X relationships fact, bill been a always have

form We medical and US of with premium We a that claims the helping billing and are this and identify ensuring and dollars. and restore solutions charges paid help that some critical or that and contain or overcharges. spend, by waste of underpaid in payment after third, or of also before a improper do preserve play remove disproportionate unnecessary abuse accuracy, identify role to is leads rapid to attributed growth roughly $X.X trillion, which and

putting highlights to the Let some XXXX. our mildly. we a over for To of year support counting Surprises analytics-based two plan services savings release health business XXXX, me category, we say turn to is integrated No to in our software the HST, Act. we We had single business. with acquired introduce In it issued savings value which We acquisitions. versus We now identified services the new our XXXX. payers driven biggest XX% grew compliance The the of delivered grew services by not late by busy

accuracy to of bundle Data edits April, methodology iSight a behalf on integrity include, highlights improve over program payment customers. savings million in pricing the by XXXX and XX savings, in increasing nearly notable Some to starting we implemented our into prepayment $XX

savings initiatives for customer negotiation we savings over than more the Over year, doubled generating customers. operational We performance, our to in from had improve $XXX significant new million wins. our lift the

to example, Data payer iSight million plans members expanded a large new regional use health driven a a program. iSight of number administrator or Data or its iSight plan of plan cost Data A For other pricing added methodologies. and expanded non-contracted management health added its

XXX inside network reference-based our we network such its owns over initiatives, together quality bill service to XXXX, through program Quality as casualty with savings National XX%, value-driven the health network, is are in about network. plans, tools our stemming access expect the number majority management medical our of to our technology, combination believe by and our using and members on the We in integrates the casualty that plan provider We credentialing Assurance. plan of that pricing added a grew new initiatives other pricing. new believe, adoption pleased note. XXX,XXX added our future for members review increase independent of network this also Not payers for new added we the total reference-based version professional are number XXXX, property only new million. regional In the about believe so represent of X provider networks-based A services company added a that Committee segment. the program, network, that the longshot. national in we X% XXXX and other of to to of engagement very a In The which another to savings property in see plan network area. our for a of program the services, identified added usage bringing job. included are the bills the pricing by We category, of from pricing best we and X% by accredited sponsors deliver, market growth reference-based improve employers two health the in XXXX worthy company these We're access cost that blue network market injuries

last Advantage proprietary build payer's not in added implementations support and revenue projects states. customer of grew XXXX in enrollment, regulations Health this its we a services a increase deployed in-network significant for identified successful which awarded by the particularly as early in to Within service, secondary with two states. network pricing as suited had billing Partners. editing heel comprising three Again, were of in the many surprise savings nine XXXX We completion On service. over services a new acquisition for counties integrity claims. our compliance XXXX. bill, We payment for state XX% our Medicare year's includes custom in with network This XXX we of savings a X% identified Discovery is category, the counting through of

planned target this penetration implementations segment. reflecting In with fact, a large editing important deepen ability to customer, this we network our year have two additional market in in our for

integrity plan payment business with our We and national also were integrity to And X a needs implemented a expansion added health of separate launched integrity top within value revenue coordination with January of a and million are with Blue a plans, XX services. new components piloting post of we implemented expansion implementing number and/or $X Surprises customers and revenues of client another regional new mining of wins The plan business in custom complying services into payer a services significant program went a now meet health total revenue data payment deliver Cross awarded course, data about post post mining and existing for $X notably had expected with over and mining regional years. million. three pair. We We sold of pre to for year. other which in with We contract our a We payment service and data varying a approaches this effect number No an customer. end-to-end benefits Act,

of new deal legislation. identify rule. on this comply to solutions year implement heavily we with operational help we've through helping previously, our deep complexities a this the introduced in the last spent them to new guide have As great by trenches And the and customers strategies clients us mentioned relied

As XX have XX completed of programs of customer today, over or in we sales NSA process pipeline. have in implementing the and opportunities

on to related to X% based operational underway, our programs the approaches to No customers for The far, to larger compliance the our just majority pay-for-performance there the XXXX We of begun opted picture, Surprises With customers has And client Act commitments, now back customer or up headwind some these the fulfill revenues potential Stepping believe to lift net our a and NSA live customers To to our regulation have decisions significantly progresses, their their we their in both which platform The have of to volumes, different we to identified with settle. environments our approaches. would implemented to NSA. our relates savings. current are impact not in that the for date, confident and identified that who, reasons, savings compliance estimate client adoption few big reconsider well thus on regulation. dust and structure year various revenues. the for calculation those will based fee recoup the is as of claim the we a event,

Jim, it to other turn I cover over of off. are couple there topics Before to a

litigation from about brought and investors status Churchill us with First, affiliated questions we have major received against stockholder our the the investor, of the Capital. defendants

case vigorous the without be to continue are case, want no other we longer litigation defendants dismissed and party While will that is on generally against to to work completely do misleading these merit should continue a we not emphasize comment claims. and we we to present with and believe defense the a this to Churchill and

Jim? discuss service like Second, operational the will over deserve highest work yet and I'd Jim. I would of us our Jim enable customer another of our X,XXX like to year colleagues for maintain to hard whose and results. our for dedication MultiPlan outlook acknowledge provide and They credit levels call XXXX. to the great delivering excellence. hand our results to

James Head

I'm investor excited for and Today, everyone. meeting our you and for to be on community. successful and the the look forward be MultiPlan working Good a team to the updating Thanks, with company morning, XXXX. year Dale. I'll part of outlook

was mentioned, with Dale As adjusted XXXX outstanding revenues an for exceptional quarter QX and EBITDA. MultiPlan

Organic over QX revenue As page ever the XX.X% quarter X million deck, revenue strong. in on from growth increasing supplemental increasing history, XXXX. of shown and MultiPlan's X.X% was XXXX highest the QX remains QX of $XXX.X

quarter, approximately X.X% page million acquisitions the during on and over of sequentially. revenue million supplemental or up pandemic impact shown XXXX and normalizing contributions for the X excluding or $X QX COVID-XX decline were and Discovery As HST of nearly $XX XXXX the QX the in our revenues of X.X% about the in up deck, the from

Our up XXXX and our the $X.XXX year highest full annual XXXX over were total for revenues ever. XX.X% billion, revenues

and As growing service deck, shown growth excess XXXX, services revenue our services integrity XXXX on in experienced growing and supplemental X.X%. page network-based modest we X analytics-based with in and XX% of services all in more each payment the of a lines, across

page million in $X impact half million revenue estimated QX was deck, supplemental down to XXXX. and we on QX COVID-related the $XX million, approximately an to estimate of $X of detailed QX the XXXX estimated $X the As in COVID-related impact approximately from revenue X million XXXX of

revenue was the full-year million million. For COVID-related to XXXX, $XX impact $XX

costs Fourth as predominantly increased adjusted function million. with well $XX.X support a Discovery, Turning expenses $XX.X expenses. is $XX.X were increase were company. QX QX associated public attributable million to expenses EBITDA quarter addition of and to XXXX of XXXX, being in operating The HST over which combined the million as of approximately

approximately As company we run public million. rate annual $XX have of is indicated, cost our

increased resulted million. We grew XXXX the on Our impact of the from $XXX.X million. COVID-related revenues adjusted EBITDA for $XXX.X impact. history expenses and the million included EBITDA QX The of XXXX million and million QX $XXX.X from year $XX QX quarter quarter was total XX.X% million $XXX.X XX.X% XXXX, EBITDA of and adjusted to million $XXX.X were highest $X X.X% XXXX. adjusted grew combination in adjusted Full-year our related of $X expenses EBITDA adjusted $XX estimate in in EBITDA the in estimated an million in company. fourth approximately of to QX in the million COVID controlled

was adjusted up the of for As for the quarter, and year. page was COVID-XX the pandemic QX adjusted from Discovery XX.X% for XXXX from QX basis, and XXXX. contributions X, that same impact X.X% during and up shown EBITDA adjusted on up X.X% normalizing QX EBITDA XXXX On over the HST excluding EBITDA

QX QX expense reflecting and earlier. QX margin and Adjusted discussed margins. XXXX in EBITDA in XX.X% our in XXXX, was dynamics revenue XX.X% to the Turning versus XXXX XX.X%

XX.X% from points full-year down also for adjusted full-year XXXX basis Our EBITDA was margin XX.X%, XX XXXX.

cash totaled for full-year and XXXX million. to was generate approximately cash full-year $XXX mentioned, free operating As flow, approximately we million which XX levered Our significant flow Dale $XXX continue

On XXXX our XX of operating Starting the deck, of page assumptions some environment. I'd with our key business outlook. in underlying trends to supplemental by side. to frame like the the our guidance on revenue Moving highlighting for the

strong core Our initiatives. revenue and growth, underlying growth in our driven expectations by services our include growth net

revenue some momentum We our us through underlying modest headwinds expect grow to help year. this

certain receipt of a mid-January. delay in could COVID-related the some December deck Specifically, medical six the today to we between a to relative is in and of on extend pressures claims the quarter expect of service revenues medical potential geographies. how might revenue those of increase XXXX. related of given X XXXX, and claim uptick a which supplemental predict evolve COVID believe and those It persist, remain likely effects lag second of like effects on Page in of mix eight the though the to mix in elective date our claim quarter from the Omicron pandemic are the first year, quarter. our of in week XXXX, the effects surgeries, moderated in the the effects utilization Omicron difficult to of over fourth and through COVID-XX case of Factoring January remainder average cases, the surge elevated to details the the surge into our we and

options as a revenue of the operationalizing expect new this for have customers addition, to up of to In subset other for NSA, also decided the handful as net to modest X% mentioned headwind earlier, claims. their we Dale implementing rules and pursue a related

NSA view. up conservative X% wins, is by to related of new known these losses, a With estimate our offset some

headwind the the in our As total add scope would clients claims. out-of-network of I later up Dale to claims make for see some of of of XXXX. majority use not we NSA course earlier, that solutions out-of-network mentioned further of which recoupment these this vast all the continue in for MultiPlan potential

best-in-class our cost expect we driven the On focus At a adjusted highly primary continue three to culture. slightly same XXXX, expense of that on the discipline signature expect we margins remain we MultiPlan's control been to EBITDA factors. has be the as side, margins lower in by time,

to dynamics. pressures some First, inflationary related structural we expect cost largely

our we and enhance customers of platform NSA solutions. and the investments support for our to related customize anticipate our in our Second, to benefit solutions

in in new products contracts Additionally, initiatives growth These large through supporting integrity our we support health investments value-driven and segments plans. are capabilities. payment part investments to in focused targeted are on and targeted our our

million billion on revenue $XXX full-year are shown the on adjusted EBITDA deck, of of As between and guiding XXXX cost expected page we and XX and confluence based million. $X.XX revenue full-year to a between $X and drivers, the billion supplemental $XXX

a imply point for XXXX. supplemental think $XX components cash net expense page we flow and We roughly P&L payment also our anticipated NSA Medicare relative Advantage XXXX, discuss On the million. trends. in services offerings. bridge our including headwind in XX to This generation you XXXX, To page for the our our to On postpaid growth COVID will our this to expectations of free extend contribute and the three drag calculate $XX by other put we XXXX. full-year that driven the we both to margin provide some the we NSA. deck, in factors includes plan key and earlier. COVID in-network growth anticipate to X% cash as revenue we to value-driven starting I be enhance But our expect points incorporating expect related underlying for Overall, help supplemental with basis EBITDA adjusted approach EBITDA approximately to and of in the and initiatives flow continue channels our our million XX as abatement our in deck, net related net to by of to X% dollars, further of core combination and CPA, approximately From utilization to revenue margin to growth X%. we expect $XX The X% in recent we roughly into of client-by-client as X% on XXXX. even X% segments, in of that XXXX, activity revenue of net adjusted million contiguous growth offset XXX year. growth mentioned services margin a a to core We approximately based services guidance. XX.X% integrity primary initiatives impacts and claims more growth up we million client the in to specifically, XXXX headwinds be with growth bottom-up, to of expect $XX growth X% we aforementioned revenue partially X% services integrity expand broker revenues, the underlying approximately consultant health and X% compression to

about compression points structural XXXX, insurance of which costs inflationary spend on in like other basis related XX expect to includes wages pressures premiums. and we First, external

levels activity in support basis second about that business for Second, expected compression Bill and was in things, drive make and customizations momentum XXXX, XX support points investments XXXX to strong, need of well EBITDA and the of in XXXX to other investments our to as half includes platform solutions. we very in business. That as bucket operations IT among margin adjusted to deliver clients, Surprise is

we are extend our our making and support are in on client post and revenue our to payment strategy and in through revenue focused contracts. supporting integrity health growth offerings investments plan prepayment, Finally, services value-driven

at this contribute in our growth these And the acquired the as we recently earlier, revenue supporting solutions to meaningfully the term. to to businesses are noted and of long products driving XXXX. growth, aimed businesses over those As scale investments expect as well

in of spending management compression XXXX, XX% At our of expect same of any will in about EBITDA to key adjusted XXXX. implies we time, philosophy. our attractive will benchmark. and adjusted by a approximately points an growth EBITDA full-year see revenue to also for We XX invest will continue we the this the investment margin when The EBITDA business cost ranges adjusted still guidance maintain best-in-class we combination margin opportunities, drive of that I discipline tenet to them. pursue note our as basis

Turning to other guidance items.

million $XXX million million $XXX of intangible of of We $XXX million, $XXX expect million and expense depreciation million, million. interest to $XX to $XX CapEx million, $XX of amortization to $XXX to

tax between expect We rate XX%. the XX% and

Finally, we million operating between $XXX million. cash be and expect flow $XXX to

touching million. on surge year, are our supplemental COVID weighted in to to to million of $XXX outlined our on the finish million could revenues of of note supplemental front remarks page of which this given the view in release effects anticipate EBITDA and I would to $XXX $XXX million QX deck by the we press XXXX XXXX, that the capital As of guidance our like $XXX be morning, my for priorities the the and end adjusted I XX XX detailed incorporates slide deck. would Omicron. up more on QX

is One of MultiPlan the cash things flow its phenomenal free that differentiates generation.

generated we've $XXX three million flow, Over roughly the $XXX last free in in million including XXXX. cash years,

cash burdened of by expense, Our attribute of our MultiPlan. capital which generate an allocate for business expenditures, XX% CFO impressive provides XXXX interest a area taxes free How is that flow, as is new financial fully XXXX we was of key and and we capital of flexibility. revenues, significant our focus me the

and platform Now, will drive customers. is made so the has the of do to of we I've enhance as past, to in as our indicated it invest in and as the platform and performance believe valuable in highest priority strategy, organic and long-term business continue the savings that growth our more to to value. To part improved the us end, we've invested

strategically our priority acquisitions. of is with accomplished we terms like in and attractive through Next and growth to M&A, HST Discovery pursue financially

our is reducing priority leverage. Our next

We share debt to combination look will priority we of focus on term, have through that a at us EBITDA the continue our first even two for it a reduction, the buybacks. in to priorities. lower capital growth and although is near do we flexibility Generally, And as that finally, opportunistically.

quarter-to-quarter Thanks year-to-year these all a like with to Dale. I'd relative a look much. that basis you Finally, I to measure forward ask priorities the of us allocate And to to versus working generation, turn community. between basis. with how our to that, over investor very Again, we as on capital it overall in we you

Dale White

up it open kindly you would Operator, Jim. Thanks, Q&A? for

Operator

[Operator Instructions].

Joshua of Our first Raskin question Nephron. comes from

Joshua Raskin

handful the a point My It assumptions solutions, went headwind that XXX customers for into question just at sounded that using No different like understand was from that now. The of just are Surprise Act. least that on helping basis

way I business to don't unchanged? of think totality think understand am the et that the So, that Is the right, impact think claims of existing cetera? is you on that activity, there's rest You your it? about any

Dale White

X%, is. some made but it it and we customers it visibility a known includes in talked that yet includes the Look, attrition, decision. haven't honestly about new around wins, our pipeline, smaller when Yes, right, are

Joshua Raskin

to client so sort it's is on eight not week just got points it's six And right? yet, activity date. claims, This any like of you've based to data

Dale White

You're into or to the claims the We're new data of see we're XX legislation starting days with only first on right. the year. and service absolutely after

Joshua Raskin

of talk you see your know filings. XX the you contracts, changes expectations? material in to into we'll know any your your Can I XXXX, group? totality major about move top it talk in any payers, But us concentration to XX don't sure you – any broadly that in material in specific. But I'm change, as K. I give customer customer payer top your change again, the you

James Head

We XX-K. material in give filing can changes our that on no you visibility as think that. be But typical, I composition. we'll And we tell will there's you,

Joshua Raskin

into meant I more XXXX.

James Head

We feel comfortable well. that statement with as

Joshua Raskin

$XX but basis beyond How new it things? think products growth be new going term, just are what worse? cost growth see. XX last it integration Is initiatives. that? million that of coming year, one I the basis next points margin thinking forward kind thinking above increases assume do wage just the XXX Is screams that sorry of then of a from lot we structural another large. about So should I'm pressures the terms relatively years, million, of the just of XXX couple and are inflation of for every investments those would or is margin about sort to one, basis in XX is points from points as That calling and XXXX, is you you're the basis incremental, well? points maybe support we in typically as buckets right? $XX that right, longer compression I'm

James Head

question, good the Josh. a think It's point still our coming from which is And in, best-in-class I amazing to starting margins, me. outside is pretty the

hard this this year from your going on cost year. that in are expenses But structural we year in see we seen investments XX% to a bit podium it's personnel up and hide be your we catch a bit year. when have platform But little it's regard, of of are we're changing dramatically. every it's of XX% and So, – The revenues. increases, the see last don't will some little to the this and that

but So, mismatch I'm initiatives, forward. that up we see a bit to And growth going not little then it's least, the client investments a of some support contracts. last, so going ramp sure not the as we're to

more And the them some in labor these of have integrity arenas. and intensity subrogation to payment

expense So, of there. pressure we see little a bit

see year. basis don't a step I downwards view by we that long-term a So, we don't this not anticipate every percentage mix, as time drift a a by see over these points We trend. down points, may but as

Operator

question next Grosslight Our from of Citi. Daniel comes

Daniel Grosslight

than congrats on XXXX higher anticipated. a Congrats And joining bit Dale team. the Jim on quarter. COVID a is The we impact for strong promotion and on the

listen earnings return they're to If during their you XQ of calls, care clearly the utilization managed commentary or anticipating provider this year. the organizations non-COVID

Should mostly just we So, can you where you impact to detail second in and like year? most sounds anticipate this from first half weighted? break expect the see in half more the out it's of COVID it any impact COVID little a

James Head

this environment, still of which the quite we seemingly a is – suppressed frankly, we of activity vis-à-vis our concept. were we the largely bit And bit of Listen, still was same-store in little the in non-COVID a was good businesses. with impact, XXXX fourth our And on of pretty kind today. ball a – network quarter, same where see exited COVID crystal roughly little kind which

at I end weight the year. are going that So, into we the this of with still maybe quarter first that. second anticipating will will quarter we heavier of agree see you a and

the going front I where the we are about the end probably of as think not or occur. entire half we're see that's of a But, or have we're abates all COVID to again, better There's surgeries on elective second particular, just question mark I whether going weighted. to quarter lag, the big year, at think to whether us. to sense think going some for And So, more persistence. in that's a

Daniel Grosslight

in felt and being continue quarter, business expect that year? this Again, mostly networks into you to dynamic the like last it's

James Head

Well, said seen differently, we haven't it.

be seen it haven't yet. We removed

admit given side. claims crystal Omicron. bit the know But the we we going. that a think on just little popping just the I we of where up COVID see is so, fact And this is don't ball, that

Dale White

eight that six to in claims. lag Daniel, we have week

services thus and December. far, the November was February service Omicron So, provided the of in And the January where you that, height in really we've dates and seen claims were to now – variant. well for as back know, of

QX. definitely feeling in we're So,

Daniel Grosslight

sounds it It growth that like down quarter, little payment the good was decline XXXX? in spec the a integrity that if bit for around payment in the you're a making should anticipated, lighter progress space And at out XXXX. But you I just in in sequential specifically some very think and Can sequentially. you're look than the X.X% about in reasons lot for segment we how integrity? investing we

James Head

of is a XXXX. on particularly ramping political would issue. is something in the wins, not XXXX softness integrity what's versus second really XXXX, fourth but think payment XXXX. in our I a In in bit customer in new Daniel, and had But going those up, negotiations of half side we little quarter, we separate long-term the

a starting to XXXX. obviously, those of momentum some and across get in some And the are in business. we seeing pipeline shift So, in integrity payment good lines business

Daniel Grosslight

One last capital on slide. for one deployments me the

on levered X near up in M&A and at currently And over debt, comfortable And the priority you make least flex you Where taking leverage? acquisition, if is an times. on leverage X are like around term. operating much seems you a basis? it You're your can

James Head

made HST use acquisitions. to and funded in using down a about doing have But we that think and the believe XXXX. don't maybe took migrate the the to we leverage We and can some do talk we target. was XXXX. successful growth the we look we've to that funded fact Discovery But acquisitions in we actually were we continue act rearview do delever. despite ratio cash mirror because – to achieved it a able was turn, I down And been to need in balancing actually that in XXXX. we flow do that free that

down emphasis understand working give investor trying absolutely to issue we I'd think to that is and growth that to are we're from community balance time. like over leverage the deleveraging. an and So, the that I migrate the audience here But is we

Operator

Franklin comes Our with next question Jarman Goldman Sachs. from

Franklin Jarman

on just fully XXXX? of and do how to impact NSA up to about X% on? with longer-term in your implementations, applications? follow the think think sort follow-on you of should the X% any year, effects customers we sort guess about first you about complete for their of we are As discussions And I think what percent

Dale White

are with good how of and larger it. days And compliance NSA XX a we NSA, heard implementations pipeline. XX over larger and continuing sense to you say, customers. customers implementations over our into the we're with we're And XX approaching forward in have move me as have our we

of a in be We Our lack we a solutions, think not our the of fact, and up reasons. that make yet we're step it, there incremental it's will independent don't around look, NSA think a all offering compliance you modest of at We're with in Jim couple a customers that mentioned, solution. it's attrition, think known decision. use it's and that independent measure as recurring persistence, we It's new to smaller stopgap our we the It's about customers. headwind. mentioned, continued visibility X% I But our solutions And have as to wins. down. for our a an some for NSA view

and And We is implement. payers in need world. a And possess the you we agility continue the for what and excellence a always operational and and do to MultiPlan done do brings forward. and this that's well. really have NSA will going do that need that comply equation postpaid of payer the arbitration, to have to the the to fully will back-end really negotiation, this really capabilities our complex piece many of management and It's don't legislation negotiation to complex. our payers for And

Franklin Jarman

the follow-up balance on sheet. a Just

paydown As appetite par. have This about debt your you against M&A. and year, below balance bonds the think drifted

roughly So buy bonds the versus deploying below as the prices bond do you in and other how to at looking par, markets think curious, appetite just about growth? capital your about for you points opportunities XX back open think

James Head

think with we're arena, opportunities I do we between look start how But if about, that debt and balancing to the capital Frank. talking M&A reduction act in all which at deploy that, to I optimize we're will options debt is the reduction.

think I to we So, available. may ways, all use, I to want in speak tools I some those tools specific but think are don't that

Operator

Our Common next David with Morgan. from question J.P. comes

David Common

follow-ons, frame it does arbitration affect mechanics of had could what it To extent a so you put also guess a and best that, though. can in more extent when to tussle was the think? software Very helpful said measure. just that that are as over even the And on not give What's biggest us you impact the of stopgap couple color able understand, on, the you? single NSA you we it? might involved laypeople I I the any a understand release, to

Dale White

ever in If attest By operating to biggest and he the mean was of the we've would our all CTO history phone that, single it our we of the platforms. effort the that today, touched on had company. it being release

XX ready to to and of behalf on months today and understanding we're desires sitting part – better our The what interpreted of terms needs, the listening and in spent January wants were they their understanding our Act the of customers. we we No act so, implemented X, on the And legislation, doing customers, to we needed as implement do here Surprises

we were services mechanics, Everything service company. Arbitration probably that's And every why was And all law, postpay to the so, for in those new understanding of The That that are new negotiation, law. was claims it customers' expertise, the management Again, those us, Health turn we IT it our Discovery things benefit the our implement had agility, X a do their services with our do subrogation. of them years and help a repricing of requirements of claims, touched the day. for our law to us heavy in operating was were wheelhouse. data customers terms our analytics, ready we and experience of things Partners the to our are And but arbitration a nimbleness, lift. most of needs our arbitration. platforms January was sort on the and our else it. the of was newness the of of –

we support Discovery long Liz take customers, on And negotiate unable ready to and customers. asked service claim build our over long with and if Longo, are ready a event service we is and successfully, to a goes today. who our is and our was work so, to that disputed ready we're And in there executive, the we're time, and of tenured be that it behalf arbitration arbitration that

David Common

what if you. with sounds staying And or have form way, you right, of great it – volume interpreted majority arbitration, be in I like processing, claims Surprise the one will this Bill shape

Dale White

Yes.

Operator

Our comes question next from Barclays. with Steven Valiquette

Steven Valiquette

official, Dale, around expansions in I'm to you've curious able other with you're any around just assume CEO? same or that. operational the following transition if thoughts the but, [indiscernible] the potential kind just while, changes change now take we role or been obviously, more offerings your of just the all from curious other with to product any any adjustments share or that Or thoughts to just should to your place preliminary the guess get may a for strategic CEO I company the service

Dale White

last growth, and great were of Mark at partners I a years XX-year the And a since and particular track with question. very in absolutely you're XX That's we right. operating Jim record the company. a in inherited company successful I,

not We mission There enhance a the strategy. execute system. element. extend of our elements to to to the is healthcare to data, a best to to continue leverage connectivity to now services the effective as our look efforts to in deliberately determine way change horizon delivery deliver our starting US more and new our on We're that the achieving fairness and growth focusing be longer-term expand value to bring And we data, needs and to on have affordability, system. efficiency we'll and continue been to lot our healthcare extensive we're out

want So to We we're our our simply said, growth. invest in investing growth. in just

Steven Valiquette

couple we've questions for you is a color, the to slide just on you flow, cash bit XXXX. of guidance My far this little a to versus little just the but looking on that, And inbound a in more spending on bit XX, investment down cash that's despite bit, that. up related around little touched as the just XXXX confirmation EBITDA flow guess XXXX operating going as but got be alluded for to guidance speaking some operating in the a

James Head

it's Listen, guidance hand, guidance, on and little cash three in with softer. little year a had Two is one last more or pretty year's some bit bit ways, of a one, consistent we XXXX – last reasons. have our flow Number we a on EBITDA.

of On the interest the expense was other more have terming refinance. out. we That because hand,

a got we've So, the on slightly higher expense side. burden interest

other and a a We course we better thought bit we'll expenditures out. respect the in of with light sense of capital taxes. how the over were there's taxes we'd year we up that But some just will of And on little bit play stuff and last some taking those a to are where cash capital elements terms be of year, is have a little that working taking down bit.

slightly out, where a I it's reasons. relative So, change. a But below might rightly EBITDA, we're have don't point those bit for been you as we little we're fundamental to – our think

Steven Valiquette

later also NSA. guys I But that. questions a the up couple just X% on I'll around you got on follow headwind offline of with

Operator

question comes Our Rishi final with Barclays. from Parekh

Rishi Parekh

follow-up. I to not have QPA, that is does presumptive does changes plan And focus your With any on And feel the QPA will the NSA, the primary decline that how going the headwind, the that change there surrounding litigation default headwind offering? were the that's if X% do if you or rate? a

Dale White

a great That's question.

And four XX similar and have raising by regulations. we're there's physician filed, Texas IDR been all there's filed the on provisions by of and NSA additional Texas I providers the about to one balance complaints, that then, and suits bills. the process been think ban since the an by one days the and I as emergency other Bill Surprise you the lawsuits with And group. two right, room interim know, of been You're Medical two Association, think sets into

think we legislation as clarity the I hope year around unfolds. the to get

severity away positioned, they're to expected by greater of the issue I the illness of from allow QPA, because we're move if of complexity flexibility treatment this by year. think, provider in final or doing. rates May direction, reimbursement think the IDR I of or is well But don't they that the either government a in they a if federal getting higher the

will our no regard, way of be All which applicable it that matter services goes. in

needed, feel we're again, we'll we'll not positioned. correct well law. pay concerned. to And changes we're if we but attention and course, And of the So, law in course to any the

Rishi Parekh

highlighted and And revenue. a of customer then, in earlier, X% wins, to believe I you number X% growth

startup Now you too to I actually know those there's a cost realize wins. before start

you can you weighted. growth second And half those wins the of going I you some is noted that. you could wins? I expected So, hoping have around be a revenue that was XXXX, then, assume that quantify that for lot to confirm also

James Head

in think give wins don't just the will specifics too to on growth, achieve the to second we're in not up that rate. and ramp some clarify, year half I of we the run Well, going contracted much but the to are have going wins,

clients in the additional So subrogation of ready more are labor get teams going intensive for we going XXXX. some wins to have the the benefit data we are some And spots and into up those in have kind contract where mining service to of and stand important opportunity.

some business, so as of against see we can it's perspective. But benefit terms explicit the see how all So, we XXXX, of in again, these growth contracted a go are more our into positive we going. that. be investments from you'll And

Operator

any remarks. for I'll That was hand back so our final question, closing

Dale White

you. we And time in you with support to working confidence today. and the forward Listen, thank we and and continued business appreciate your for look

Operator

for you Thank call. today's concludes joining. This

now may lines. your disconnect You

MultiPlan (MPLN) 17 Feb 222021 Q4 Earnings call transcript