SGFY - Earnings call transcript Q2 2021

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Operator

Ladies and gentlemen, welcome to the Signify Health’s Second Quarter 2021 Earnings Call. My name is Louisa and I will be operating your call today. [Operator Instructions] I will now hand over to your host Jennifer DiBerardino, Head of Investor Relations. Jennifer, please go ahead.

Jennifer W. DiBerardino

Good morning and welcome to Signify Health’s second quarter 2021 earnings conference call. webcast events a website, page through XX, being available will at is August the on of XXXX. call live recording and be signifyhealth.com, This our investor financial we dated release XX, XXXX. be morning, our August this call appeared in the referencing Throughout the tables that press will On we Federal the Securities Signify will Health’s we outlook and of today’s make the certain meaning call, will forward-looking discuss business statements within Laws. and our in language about quarterly our statements earnings that press XX-Q note in release Form filed the cautionary on Please be later our as report forward-looking will presented which today. language this That applies same call. cautionary to conference

issuing email We each on a we any conference, on release site the or we other Reconciliations our measures, be later including to sponsored you filed Relations the participate yesterday and on Calendar. will our included our for Events these of to encourage press a attendance register adjusted margin. events, time an site GAAP so posting be Investor non-GAAP to in relevant any industry you are EBITDA for Form Investor Calendar XX-Q filed numbers X-K release adjusted Relations also will be discuss on receive or alerts conference which signifyhealth.com. will we notification I the Page non-GAAP today. will and also certain each earnings Investor EBITDA the Form to at add that announce intend conference, in the updates financial We sell-side measures and in conferences

overview President and will Officer. Armbrester, overview. with Officer; call Kyle Steve Chief provide followed Senneff, on a Steve Kyle the financial me Joining Financial by Executive today a business are Chief and

remarks. session an after We our question-and-answer will operator-facilitated prepared have

the call to Now I will Kyle. turn over

Kyle Armbrester

with drive Good Jennifer. customers for better outcomes care value to across significantly Team Thank based for continues while platform. thank the us. supporting continuous our payment morning individuals you Signify joining you, and

revenue we investments it financial for six deliver for hard results reflects Yesterday have individuals, work six In to a the $XX the period value positive and grew Results we’ve year shareholders. by the continued and to quarter customers adjusted of home driven record and segment. million ago. half second increased the quarter in and year-to-date EBITDA announced million month performance and from XX% momentum community first made and XXX. second Our put by to we first $XXX.X of XXXX, months our services XX% evening, are

Episodes related for As reported of the experienced BPCI-A and recently we we impacts, received Services, COVID-XX reconciliation. Care

of run remain further previous Although the will his details Steve confident we recover rate We rates savings size to on go will during exit trajectory. growth program that and pre-pandemic as delivered sales remarks. we resume strong the will reconciliation customers. XXXX levels $X that the into billion

providers we complementary Both entities, health segments businesses bearing measure, existing help HCS are enables our cross-selling Episodes as highly Our between and serve which and for plans risk customers. understand customers’ to payer and sit manage risk. and

of Episodes risk programs health our therefore need home groups. value and segment serves systems physician capabilities also community based and payment assuming the We're Our segment. and and services large increasingly

logistical their we evaluations, membership software our the homes. who and community X,XXX our who network of rely plans, to reach on home revenue as from nationwide teams, and services over majority which conduct supported their Medicaid engagement drives to members health by Advantage Our and enrolled home and Medicare are clinicians segment refer comprehensive These in customers of our Managed IHEs. to its clinicians our and

of Through triage and care allow value our and the XXXX. clients Virtual Our this XX, they plan increase coordination. evaluations the year the of picture nearly same because first health acuity half of of members full the We about an of performed downward XX% period we IHEs, and health represented in plan only six half. IHEs from total have these go XXXX, a the levels completed. in second health assessment, and much can to our appropriate we months continue plan see role pandemic status members XXX,XXX believe in preventive ended prefer the from June approximately and But continue in virtual social home in XXXX evaluations, found trend XX% behavioral diagnostic determining health tests including performing to that evaluations which play will their services. and and other evaluations needs, deeper

needs social delegated a organizations to based of those and network We XXX to services also community workers. about through provide access social address

offer tests receives contributed We an we Continued demand information from pipeline to costs. our for test a multiple additional and preventative our diagnostic have device and in HCS and tests Signify connected strong per And benefit also fee customers enhanced of our through perform home results. devices. lower and diagnostic additional tests preventative hub.

to visit primary data We additional their the he she with also the coordinate physician obtain same on with need individual the their to leave members’ because or facility an to tests. Most provide to them home or care and benefits member patients. office importantly,

health analytics government Care operational health of clinical Episodes plans, programs. that in comprehensive a provides Our care and Services and organizations evaluate payment services, well to as providers. these provider and programs, develop employers We platform contracted help as again serves networks deliver software

are the and important Services important we of financial operational improved and success patient significantly outcomes. customers Episodes critically Our serve, the to

under payer stages, providers future in a three is driver. employers we conversations traction and build the geographic payer this BPCI-A as this continue BPCI-A as deep provider to are clients Episodes business building by up gaining current networks the in represented At program regions contracts. anchor and to productive non we establish networks plans, for provider our current having segment, three With growth be with

X, we a the we As like largest Health savings with substantial purchaser region's amount Washington the State management. healthcare XXX,XXX January during through but Through condition Authority, and and an self effective Program of not substance XXXX. state's these as significant regions drugs can the support Care costs also we along example, Episodes, yesterday, perspective of an facilitate can announced abuse. with these only Care bundled, Episodes based employer for procedure such members oncology maternity, insured organization, From conditions Episodes

HCS and of capabilities segments better assessment our Program to performance leveraged improve the and engagement our patient being and Care savings consumer outcomes. Our shared through Episodes higher of are

costs transition engaging from around and emergency capabilities discharge, reducing Early solution in and Signify’s is patients systems consumer billion strong our following in designed to XX% Health health were readmissions in-patient approximately impacts virtual most extensive provider to home, solution visits. experiencing Our reduce Hospital our Signify bundled unnecessary contacted but in that shows Health, of engaging Medicare solution based time coordination readmission is the year, patient home of nearly than avoidable discharge. with home days in discharge care just financial with Health. of setting, phase, initial Episodes who visionary partner's plus including risk results the We're discharge to the Ardent home providers, payment enhances program $XX social and days value clinical an occur the evidence our care per Premier provided XXX,XXX hospital during other and performance beyond by team. analysis of readmission, care with clinical Valley XX home associated re-hospitalization Facilitating more in statistically this and financial XX post hospital. transition upwards for the for effect to improves full health the has programs. and showed Beaumont of demonstrates experience, a managed Cape a during participating activated elimination The rates. care partners transition readmissions. hospitals and Services, are based transition Health, to readmissions XX on costs the following are the all interest Care and of within coordination industry's rather XX services to the the Medicare's patients of based reach services extending standard, this results We've To market value significant the of support, BPCI-A address department not from solution XX% avoidable solution which and care Episodes provides readmissions outcome the under to days better achieved patients. critical These through Fear

to recovery positive barriers and We key synergy a are removing impact excited such home. to also between the driving our in divisions see we’re

Signify at value our with I through customers. based or and partner capabilities and platform systems We complex our successfully to a for care. simplify payment now to results. of partnerships drive for to may to functionality and payments. highly our year-to-date outcomes transition financial call turn our you second further Steve for platform to drive programs vision to based other as quarter over companies the strong value value and to increased long-term Our acquisition We walk positive health will to add our enable innovation is health plans supplement

Steven Senneff

be our We the yesterday everyone. second and financial morning, services you to able afternoon, Good through our walk community home happy and Thank I'm driving you, Kyle. and in Strength year-to-date record results. is to segment quarter results reported details.

As will I detail by Kyle impacted discuss Episodes in of COVID-XX program, which short effects results mentioned, -term being the in the the are on Care BPCI-A momentarily. of

referring commentary, that press tables the the my During be I to in earnings release will yesterday. appeared issued

record continued in to was the additive same to see home.HCS the preventative $XXX.X total a of to and the in quarter attachment valuations an the we by Virtual compared of preference quarter rates services quarterly and evaluation XXX% was XXX,XXX in seeing evaluations diagnostic up evaluation can the perform record XX% Total in to also increase, in quarter testing percentage to record total evaluations million, evaluations are Revenue HCS second include revenue second compared XXX,XXX which we $XXX.X virtual as period reflecting home in services primarily HCS decline, customer as year. you had volume we to the quarter increase had is the table driven XXXX. segments of approximately As revenue. including one, of of million when strength last growth volume. for a

Despite where XXXX, cost fourth quarter. call our projected XX% COVID-XX quarter was continue that a in After year. on a of our size, As from to program are We fourth our volume better our a revenue the same follow to expectations the Still period one, half on still XXXX HCS from program. compared will million, year, delivered savings I strong decline the still a second headwinds year-over-year across seasonality lowest year, and XXXX expect first IHE the we with the to in growth first expect impacted revenue pattern typical rates will XXXX, ECS out half which be strong table the last more be quarter May, to mentioned be to utilization decline XXXX. of quarter are our COVID $XX.X to in the compared and revenue year. across the savings the partners higher we second spread quarter

were There a Episodes. distinct their within areas latest care the excellent reconciliation. two received individuals negatively was rate in that impacted ensuring While savings

case episode relates to first The diagnosis period comorbidity area to pricing. coding, a that CMS an target diagnosis patient being ultimately triggered and an missing acute adjust which incorporates prior codes. Episodes mix XX-day There's adjustments

And not being that were health During patients a diagnosed avoiding and pandemic, routine comorbidities care as Medicare were result, visits. coded.

associated for that turn Episodes. the As episodes, the fully not quarter. savings individuals therefore second and lower lower of and patient the the the entered was for This comorbidities for in acuity reflect to did price reflected in contributed the savings not rate shared coding target

skilled discharged and next percentage facilities nursing for COVID-XX care cost side believe bed higher rate savings of post-acute and impact rehabilitation We Patients as that COVID that In will significantly area being facilities, the with resumed visits patient during routine point. XXXX makes impacted other by facilities two outbreaks on from outpatient reduced inpatient and believe care weighted pandemic the facilities care. The facilities. were adjustments at the we staffing were to areas to to facing when X shortages. receive total, to least due average second acute transfers availability normalize relates individuals skilled case nursing these

for and utilization Our down our and lots normalized of balance more XXXX data set sales COVID is resurgence the healthcare supports of proving assumption occurs. for utilization

them making transfers next who Regarding side are need. for of those a again once from the recovering next nursing care viable facilities the side choice of care pandemic skilled

next More importantly, increase and shared leaving side traction Kyle frequently all home we of believe should appropriate and believe described make for which more in that reduce the care care best our of facilities savings. individuals we homeless readmissions, acute to costs solution will the transition services

into the country pandemic our rate XXXX. another the and that the variant we at in of expect for is Setting behind business strong us like program not worst year go the Episodes $X Assuming to will operates billion a run size. COVID

more becomes state rate once the savings in the of the believe will rearview also XXXX COVID-XX vaccinated mirror. and fully the country impacts We rebound the in

of million offset period June appreciation strong second million $X the $XXX,XXX total Table quarter by second for million, breakeven adjusted second Back at EBITDA of the due to company of of Table million the XXXX ago. and Operating refinancing. EARs to growth net for of or revaluation compared $XX.X nearly the loss quarter to the the net driven a a X, in for compared equity XX% increased income debt of Moving services. right $XX.X community same year the the of to and quarter a X, primarily loss revenue total extinguishment to was debt income $XX.X loss million to agreement for by quarterly home quarter $X was

through home value IHE Year-to-date the reflect EARs as for first virtual. company continued fair of related As the our segment instruments these which disclosed incremental services directly XX% expense months of approximately and value. XXXX our IPO, linked the in the XX, to in the six are the reflects XXXX the of last value upon the overall was change June largely of to in XXX,XXX, volume with quarter community increase largely strength results strong of

full for total XXXX, the of XX% IHE virtual. was For approximately year comparison volume

as services to to evaluations virtual half volume progresses. impact healthcare expect expect reflect from but of decline year pandemic total Episodes percentage will We the results to of as Care on of a continue levels. XXXX first utilization, we the for IHE COVID-XX improve utilization the continue

June. primarily ended see, Table can from a the and X, refinancing quarter to in decline you deleveraging successfully with end quarter million at closed $XXX.X we in of first cash as our unrestricted we related on, that debt the Moving the

quarter debt have of interest As in We $XX we outstanding our expense in credit the reduced pricing. favorable million, million ended and million of new our the annualized capacity reduction $XX approximately debt more facility. a and under with a the result reflecting term-loan on million revolving $XXX refinancing, $XXX by

Given cash negative with at our levels, period our XX, net we leverage. June position debt the strong which XXXX, ended exceeds

are We or financial to back and to evaluate business in into position a acquisitions. potential invest continue the and strong flexible partnerships directly

negatively total we EBITDA to half in $XXX XXXX, are follows. our that adjusted $XXX the revised the million the the million record for of The of will not to average results XXXX total the IHE range first volume, program ranges million. rate in guidance GAAP Given EBITDA impact $XXX the revenue as $XXX COVID-XX Total balance situation financial of guidance weighted million and or worsen raising a revenue for of assumes and and savings for size adjusted range XXXX.

to X.X%.I billion update quarter. weighted to updating year ECS you results approximately segment average the We look in are HCS on our Episodes approximately $X.X rates to segment ECS impact of strength of are forward reflecting X.X% performance and for billion financial approximately IHEs segment. weighted million, following next X HCS the estimates program for to able being $X.X ongoing full segment on continued average COVID-XX the savings key are XXXX $X.XXX $X.XX also to million size indicators the and

remarks. Now for turn to like I'd the over to Kyle back call closing

Kyle Armbrester

to Thanks, transform our to that healthy, people Steve. like day is continuing to how this Signify our thank and positive to energy I'd drive to more business and team paid enjoy the happy passion days take guide and our hard work results. for at opportunity work mission to Signify’s to delivered putting home. every grow healthcare can for

Operator? call turn to I'll the questions. take Now over to your operator the

Operator

Alfonso first ahead. question Andrea, Kyle. go [Operator UBS. from you, Our Andrea from comes Thank please Instructions]

Your open. line is

Unidentified Analyst

Andrea. Kevin It's with Hi. Caliendo

that over have what's and eVal trend we on maybe about it expected per as that's eVal, would XX% up HCS about year a that Is sequentially. on? baseline is like the year? services? additional would going question was next you the there Or as it kind established that goes the other guess you carry discuss revenue the that forward baseline Can the this I is member really of driving new per a First to increase is modeling think

Steven Senneff

Steve. it’s Kevin,

going up is One, be So things. the the home. the it's going couple a versus virtual in is price average reason to

as some as pricing to XX% it's So give comes reminder, about number left. us down virtual that going a that's differential

And were XX%. under year, so just last to we closed

first of here said, the about we that. we're to half, As half

that So to going driver. that's be a

up it continue we thing attachment other is, that's there. nice preventative diagnostic revenue to driver. continue also there be driving and drive to nicely, The we continues a that have gone to big have the rates our testing and And

So those two big are really drivers that the seeing. we're

Unidentified Analyst

any or labor terms other in any sorts seeing assessments up is or in seats of quick are nowadays either that all providers costs. follow per terms A amongst of you pressure wage doing issues? topic seat people and the Are of labor cost related your filling

Steven Senneff

over the we're beauty them The our around. model of we that have able flexibility X,XXX to move in where one is our providers get network to

So per visits. more we're volume of wage seeing you not get se but a to more can home of the clear in pressure us like lot

And work, the money the perform, to so compensation, more that more going the their they're they make. can at total more can they visits

continue so have focus. and allowing per And to to been And we and that's more and them more try drive our efficient visits day. really become

major of a any pressure continue there's on. wage we've across have real the couple focus network and in pressure hotspots areas getting margins. providers We our not on to there. that But our we But seen that any any put

Operator

Thank you.

comes Michael, please question Cherney ahead. from from next America. of Michael go Our Bank

Michael Cherney

that and performance topic think in I Good you health as Was more talked very regards clinicians? obviously that hard about a was to morning. your population? on drove the the evaluations want activity home the something individuals the the it in business of of meaningful Was what quarter, What the was a the of the part to the it XX clearly seasonality the patient outperformance of understanding Thanks get regarding an performance main performance? curious, the about you strong question. availability to quarter. more the on the stay had taking drivers level comp, in for of about normalized return of ridiculously just HCS with something of

Kyle Armbrester

highs. a things. all even the it's services say or is demand This time one I'd few for

So we to train continue nicely. have our conversion very rates

So our with our with we're data better better engagement getting tactics.

to in we've we I efficient away it, getting to really one. last so on our bringing mentioned, a work for email alluded multifaceted two, with So easily manual are the Number as SMS and the automating heavily, of that'd platform investing Steve more more be call, services in number technology, with folks..So a providers. lot the more

groups and we're the a evaluate So able to been more to visits helping then they're all we've assess have genuinely we're nature where to. I finally, doing And our conversion devices quality then and for multi-faceted together. properly care, it clinical experience, when or up going specialists doing and doing seamless individuals and strategies face-to-face where they go either back plan clients’ leads risk come the in somebody, PTP. a a to shift in better really time to with in in with that which have a to but and everything lot of these health taken radical would have and them been there's on get of follow And bringing front year-over-year when more turn, say years,

inside value our broaden more adoption The we've which as broadened of again, line final I'd client great substantially, we once well. coordination the is is, service individuals the base really really the care the drives really across it's had social home. thing get lives say into So service

with throughout social we've and And substantially conversion well. a as community been really as is also not but we've national and in launched continue behavioral perspective. social driven perspective the expand holistic go And payers and our that more just higher pipeline the to markets able year and that that clinical great got we've to to in scaled a out organizations, too, a bringing so we've help now workers several

Steven Senneff

great that's gives in increase quarter record of why conversion it's been obviously, the third That that see ton to existing HCS us and guidance our to a led we and our from revenue clients it's raised and momentum demand consecutive area.

Michael Cherney

quarter. forward year, to just were up half imply and to as your shakeout? and what's half think to prior Is your a line prior that implied expect second that expectations this to revenue there relative Understood IHEs follow the you relative And where for HCS trends expected the quarter? to of back that into back think guidance anything quarter? How was would in obviously, you on does to and this to you implied have you would normalizing the comp? where the XQ And guidance relative growth that about on where be? the this typical pulled rate, the Is with

Steven Senneff

pull normal we've back the seasonality. And with normal right of it is first the back over to rates, like the us last done, the along would will we're half And really we This back be assets, obviously as of to from But fourth to that COVID. be hey, we're to just well. end a particularly of that's expectations less until going No, half year, where what the really, excited, at this able than half, the in going tremendous not to the the we're amount HCS. what even we're year with that's half we've impacts about we're as perform we see the just a excited, is, been that back And said, we versus event mentioning QX, did clients, on look the in we the raise the we're all on. for quarter, in we're, allowed year said, we performance. as seasonality than over the of to more forward and conversion it still excited returned year as think due guidance deliver I demand

Operator

you. Thank

at Anne Samuel comes ahead. question please, from next go JPMorgan. Our Anne

Anne Samuel

in there was that? should how offsets about ECS for little thinking year. for about I Thanks. talk Or we the taking be the how back hoping half margins? bit my we thanks question. maybe of any revenue a Are lower margins, we margin Hi, about think

Steven Senneff

total, in job. So done very happy, has we're in at we there's side. costs to continue expand margins impacted, HCS look again, in we margins that is really variable right, ECS total, our little if a nice

So on pressure at the year. the that impact to there as margins to business business manage side lower when the there's expand year-over-year, But in our going the look be total, it margin we're we for we of and still so base some overall have have projected able for year. the

Anne Samuel

really just savings the helpful. kind year? gradual? maybe That's of on And should into rebound it on early come looking the how that, more in Or think we on that rate, next then it about the something of be cadence Is the something back year? that'll is

Steven Senneff

a we it'll a that the this already back facilities back? tomorrow happen facilities nursing there our come a in of shut of the we and their as one bang, annual diagnosis first them to That's said the the was But we're and think call is were system, just at If into or checkups the things naturally they mix should have And down. that where to is, into savings happen codes in missing there's like, it the adjustment healthcare people case is we're is where it came rate interesting down that be are the return that skilled half in going patient returning to really even reason year, last seeing today. the see. that comorbidity that quarter big of year, transits lot no. the Is it

facilities putting facilities, was them into trend inpatient is people higher cost that were and it nursing too, so who natural centers, away are skilled rehab back going as the just up And running. like

going see in guiding point. year around, percentage the So at primarily is call, X we least we're savings at the it’s to for of that we've from conservative pretty around that’s But of will XXXX, the rest as rebound think gradual were that be we where it, we're approach it it in start expecting about we're of thinking impact that the XXXX a way a to there. this COVID in we'll taken the said related those to keep kind rate, keeping

talking story. happened, hadn't much ECS be if about much better So, that it'd be we and the business wouldn't

Anne Samuel

really helpful hear great to That's and so much. Thanks color.

Operator

you. Thank

Larew comes from ahead. from Matt Blair. next Our William question please Matt, go

Matt Larew

QX the you mentioned be and I electives thought call coming was size we program of kind On what were back would think online.

sort mid-May rebuild that here to backup you you're here? from in from of of changes June, curious, seeing Just the program size terms any have and

Steven Senneff

we're of still really view that's a XXXX And look short-term. is kind we're is seeing optimistic. long-term that's of Matt, encouraged back today. the is COVID coming the we If that and the So where piece even we why size program this this of really impact to

the continue we program of for a billion along our volume come all the continues around mark, month, could back about returning showing $X every number mark, electives to average we a very, optimistic expectation because a big client us, our are us our for the feel to though like this And of like, percentage So at total. have electives almost $X very we we our the trend. underway billion was all sets that a weighted to XXXX. year. to increasing. year that We've trends with that back actually it's small that look a I've want are said almost the as claims that previous to that size calls, It's fairly year, strong it's is back up $X on start end billion even billion said is and dollar happening. We're But seeing that the

And the around to a we strong in momentum head as be then going that's the so to to back And previous rebound the questions really ‘XX. savings rate.

in issues we're subsiding, As run already up that seeing savings the issue, ’XX. adjustments a for utilization nice set back missed can comes case subsides, the us

Kyle Armbrester

Sort of to complement that.

help when to quickly got Just an to charge been ID, a obviously a the infrastructure. deeply our which patient and integrating Episodes perform finding them, we've is fees, to compliment services critical lot to into do we metrics alongside in overhauling more somebody work there, really been AVP of capture we've

our into to better in base of and about clients. largest some job across So kind connectivity we've in remarks, happy then, the XX the a of prepared live digital hospitals. nice and our the and we're mentioned, transition over services I as of team's really really shining And building that. very done delve I'm with home

clients as of and that to unnecessary to to expanding the Our we're at and do also recover with, to just but service working Episode name us asking we're more particular others. ACOs are opportunity to a cost indicates inside BPCI But transition much stay home that to is there giving the beyond folks versus it looking and facility. the patients a

elements as excited well. So those we're about

Matt Larew

a built year. discuss of the half of procedures I your into and sort the of the ECS, health its a have to normal clients your be or of elective potential of in year? your half the back think discussions with seen part sort into surging delaying from what's couple your that back And, terms you Steve, about just I we another in vaccination impact for and XXXX. And dates, built for HCS question said getting the of wouldn't expectations systems what's your observation of bed. there Another guess curious of back expectations for COVID

Steven Senneff

anything significant. the this think seeing the seeing I is we're we're good way that news not is

really XX% As our mentioned, it's of is electives. I XX% only volume driven to by

And with situation a facilities, if to systems us. are few And able the for likely healthcare that seeing have we're going around. not be any go to to this it's more impact really also there's so much deal the

forecasting like there's there that be be So type going to obviously of pockets, time. last while was we're shutdown, any national there not may

good normal like of any in for we've kind the rest Having feel the this this and about national Hopefully, vaccination So new now baked obviously solving of numbers, up problem this we into We that our shutdown. feel behind is year, is bearing the us. part piece of a getting well. the of big a seeing of ‘XX. rates go setting then for lot up as what

so, favor. to that's numbers, another They're all I numbers utilization, And as the see our we returning the we think in the trends look systems. and factor health at back

Operator

you. Thank

George, from please is George question ahead. Bank. Hill next Our go at Deutsche

George Hill

the taking for Thanks question.

weakness of ECS your a given year-over-year would to I it was I'm guidance year, in more talked of color of kind but but the relates about a what have I and utilization. healthcare on to And you're the versus how in medical just bottoming discretionary the there? rolls on us utilization, the have little the QX surprised or into think use the year-over-year your you when last have system? well, that, kind think, of of costs, So are copper medical my and non-discretionary easier answer been MCOs kind of utilization us have just versus of a an are guess easier increased as lot starting of been just it I seeing, lot see that thinking question I you kind seeing thought a last growing expectations you this medical little the costs, might Steve, use thinking should is the QX as was what question, on would I so of preempted

Steven Senneff

half is, for of here, is one is of received you the too, year. we last from things second CMS reconciliation have the to remember George, So just that the like

be good for And so will this reconciliation of year. half the the first next

there's So half, this first going in the impact quarter year. even COVID and the of second on significant

why certain an said impact is what be in we're that and more of environment seeing of areas was us. lag that always year But we've ‘XX a was going pockets tough part versus the that is, for to Now, nationwide. kind

starts as And and just of their going in not we and against back, -- case mix those adjustment history, again, we're low. rebound simple Episode, is someone's part if it's are there's no are people as go so, rates. And that having that an artificially seeing they're is happens to that utilization as comorbidities what that

program, what's part target six into And, they'll diagnosis will that the And And is off their that's up. get target house, those over savings will it that based happened people that as go the so price, back call return, price. rates months. back be be were will driving of last, obviously and to that the go history, nine across their that

we back, I naturally think in trends people utilization the whole is the that thing process drive just feel the that we're up. seeing that go just also will as

we It's like say, we keep But still, next to industry. months know, this and that, the saying backwards. And flows through we're the about have the as there. would George, We I I thing going So be year, leading last to we savings the the I guidance, six as our there's it's some back future. excited rate far we're about know of get say good. ebbs going believe

nothing we able is savings of really if were to participants certainly well, X% so that this the rate And rate during tough time. but look like our manage at clients all ashamed a about, to be are savings we thrilled

back. timing. that It's it's we when know adjusted. to going a of bounce get just the we And matter So

George Hill

reflects HCS. I basically, feel slowdown, half? looking it quick guidance, Delta was about we Maybe you've the and the the color. QX, kind time of would great that weeks Kyle, XQ last ask for raised guess, as relates seen think relates as delivered up for this to was the follow guess in That's of guidance the year you expectations it the strength just some Thanks. I back in to for commentary? the of variant question anything the the like strength I a and tempered just Do in as the of guys Or kind six real that kind

Kyle Armbrester

at any nothing in more maintain markets. daily I protective we've room we if and COVID, mean, on Nothing, equipment weekly, monitor particular anything, to on continued a all, actually, providers,

go the homes, We a have peak were in zero extremely they last scared, facilities in safety folks we throughout transmission high I take are still. want from to operating entire a to clinician documented process. into don't member, of into this say pandemic, lot we of the even and would a

on value and right, them. needs we're coming social so strong care proposition. homes you're check for And it's giving really getting it's resonating, a your and And that alternative met a like are having behavioral make clinical sure health bring And free doctor them great is you. to to a

And so we've seen conversion continue.

to have aren't So our care or what access to for in are your that They healthcare proactively on no manage satisfaction off very scores going and and like softness to don't providers are the grid and the are as that high. and front. to would they easy folks provide healthcare services that provider sometimes realize helping and they're able And to potentially. in get retention

that's I'd the do there most this do practitioner, all really leaving in. is seen on with to to several expand expand doctor, clients lives got And of in a I've more fact, in disease in the degradation these in I haven't a to we're consistent. consistent ton and And expand into our and network given and more with in our core any ways thing performing the to any all that home, And we're, We clients nurse in amazing most devices, we've connected earnest and multitude help think And asking about the etcetera. of investment well. working work with months. of of been we a metrics. so tech with say really they're you're that the the the with us clinical we're guys manage last few risk we've opportunity pathways want got you touching is analytics how broad think of creatively that as and us

as no, softness the answer your which and as up. is why demand pick HCS is questions high the so continue And to numbers ever,

George Hill

color. I you. appreciate Thank the

Operator

[Operator you. Instructions]. Thank

Sandler. Please from next ahead. Piper comes Our Jessica go question from Tassan

Unidentified Analyst

for taking Jessica Sean for Thanks Wieland my question. is Tassan.

term? change bundled does to role your with convener that? the the Specifically, So in outlook size longer the program of for change? how bundled How latest respect on program And what's thinking the payment? payment mandatory does

Kyle Armbrester

talk great coming year out and at any five, They should bigger now. been on with model day calls we the next model monthly of We've them a which dialogues to by them is have guidance be question. weekly with Good bunch too. and year,

more to all believe You and behind for They changes program mean, the work spend they're also this anticipate care levels I and their of forward. that insane they've fundamentally procedure work, done pretty is your the value based dramatic manage conversations assets it getting to been beyond, the steadfast landscape have to various the hospital. effort They're go also with care, it. helping or all and healthcare positive through energy to the helping approval. centric individuals going and an across the expansion led and in that in navigate just

And down the holistically home. so looking more at folks into

on, works lot the The employers, a on with payments, folks, other non-BPCI-A thing, we're working about our we've are to prospective ACOs, talked we the them commercial right. self-insured

So We've the that chronic spent sessions inside things in them been paid talking received. maternities, BPCI-A on leadership of where broader non-BPCI-A run. of of BPCI-A has front. that Episodes, a a moved the the them. bunch the as with are of well team been time, And had time substance we've inside retrospective beyond sort We've also that's thought way to to program that's the just procedural diabetes, we're lot not well. condition abuse how we shown real and needed the work And

the are us. path a health again pandemic, And from see engagement still right just The we additional add ton new I've were So trust a and savings ton would to time we for guaranteed volume with health there lines across of there's continue forward demand. there's our folks. a on the most year advocating to anticipating before, said here the model conviction systems to this great there's and and soon for base them I have additional last service Medicare We time. during our of give able client five, bundles that systems know the really them and of where was that a of to the ton

human we've my forecasted. hopeful that year We’re don't the with good that to made, dialogue that to ability model bundles on five, we But been I as a through add well. have aspiration. them That's

Unidentified Analyst

year me does remind hit P&L? and five Thanks when model your

Steven Senneff

be year. first next not will year next next right, So the half of so will five year year October hit until that model of

get along that like second unless significant see of Sean, remember be. that we develop the But every year. until range wouldn't to Now range estimating take low what month a we actual are the said of We usually end number half going is on that uptick. the next we

Unidentified Analyst

much. Thanks very it. Got

Steven Senneff

Thanks, Sean.

Operator

no we audience. questions It have the appears you. from Thank further

over back any hand I'll remarks. to for final So Kyle

Kyle Armbrester

to all year past throughout give and big for of and a been transition a Great. and you everybody, big appreciate as wanted the country help Thank thank manage to it's book put just we care our very, that take has us work fluid they've helping and get the for sure visits the that take they've to done, were sure very COVID all and to quarter this team but year, we whole that members the remained into a responsible you, which they've work resilient, also, to and into homes been this those with making seriously. make all that appointments lives and

you thank And guys. So to soon. you all talk we'll

Operator

today's joining call. rest Have for a all day. of you Thank lovely your

now may your You lines. disconnect

Signify Health (SGFY) 11 Aug 212021 Q2 Earnings call transcript