SGFY - Earnings call transcript Q1 2022

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Operator

Good morning, or good afternoon, everyone. My name is Melissa, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Signify Health First Quarter 2022 Earnings Conference Call. After the speakers' remarks, there will be a question-and-answer session. [Operator instructions] At this time, I will hand the call over to Steve Senneff, Chief Financial Officer, for opening remarks.

Steven Senneff

welcome Health's and earnings quarter everyone, call. conference morning, to first Signify XXXX Good

in you DiBerardino, a a know, leader of introduce contribution as Jason my like many are morning As Jennifer to for her happy from my and her to perspective, Health. Jason retirement. from experience Vice has Board. of this has to of Relations Signify him is Plagman, thank have sell pleasure joined recently wish very the our Signify Jennifer Relations. and President member was her Investor extensive valuable and team, Investor we'd excited side long healthcare both who retired on fortunate Relations an and we Investor It and

to the for turn over I'll remarks. call introductory Jason Now,

Jason Plagman

be you, webcast and Health. happy I'm look community to morning, be May at engaging X, call team, the press our morning's our appeared dated signifihealth.com our the our XXXX. This will XXXX. referencing very call on Throughout available through this investor forward website on live investment and in page the shareholders will financial a tables July be being and release the that recording I with Signify Steve. Thank on X, we to of is Events

presented cautionary will about Form in quarterly language will meaning be the and report which call. the later we be as statements same on this within language page call, of forward-looking first securities our will slide Relations we Signify statements quarter today. filed to On will in the laws. the have release outlook, federal referencing to conference and today's of note posted events forward-looking certain our cautionary We applies presentation, Please the also earnings XX-Q, earnings Health's the That call we press our make summary website. business Investor discuss

filed to Reconciliations later our EBITDA in including also are margin. adjusted for Form these non-GAAP and on numbers X-K non-GAAP measures filed and financial also will EBITDA the yesterday, discuss certain earnings relevant be today. measures, Form will included release adjusted which GAAP We XX-Q, the in

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

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

over Now, to call Kyle. I turn will the

Kyle Armbrester

Thank you, Jason.

glad significantly individuals to strong Yesterday on are us. a while the everyone, across Good for payment thank announced evening, Signify customers' you to have continuum better team. XXXX. outcomes morning, of our the start models. and for you in we drive to care, Team We continued alternative joining success supporting

work the Our quarter hard to have made and performance first generate investments we reflects results. strategic

were and execution results and our grew to by by strategy. solid an $XXX.X XX% and EBITDA or million areas. Care Community increase HCS, of entered an Episodes a We year Home complementary a two their industry margin for driven We overall our our financial corporate ECS, XXXX established adjusted quarter Services continued of highly significant delivered Services ago, momentum of First in of corresponding XX% from with adjusted Home respective segment with each $XX in leader million Community EBITDA, positive Services topline against quarter and the segments, and XX.X%. or and

we clients. Savings for ACO meaningful our condition MSSP. Medicare evaluations for our will Organization, and management our With savings will ACO, or an management of assets Program our both Shared to Health, shared containment and customer the cost total base services HCS be leader be Accountable the of in for Caravan and important ACO or leverage Care care able addition ECS in to In-Home drive a provide tool into segment, ECS cost

Caravan of beneficiaries. by network over already ongoing of through business while is transition services. expanding excitement XX,XXX post-acute driven established Episodes shown in expanded and growing strength clients interest home early services to The Our outcomes nationwide drives evaluation through clinicians. within have our delivered the our momentum HCS customers for management better and also these in-home

increased ample to white is volume While meaningfully for commitments grow with clients to them. us, their continue have there us with space

plans In addition member health provide with growth Medicare growing great lines natural component to to the start commercial Managed have IHE Medicaid rate enrollment, a more are Advantage plan. clients opportunity and other of manage our expansion a business of and and to of to continue Medicaid IHEs are the volume. and our we into commercial off plan our

to a Advantage over disparities mechanism their health and continue is rate and as Medicaid. drive both market leveraging the to of engaging for focus Managed care. our them growth this for share grow and clients members, on time, health, addressing conversion to Member improvement Medicare directing especially expect right identifying to to future important it as We IHEs barriers

time. members' We an pilot the to in capabilities continue our health these physician. individuals can provide primary our member new clinical engagement Diagnostic comprehensive our to meaningful another many chronic to diagnostic early to ensure data demonstrated provides invest and as provides to testing rates specialty and conversion over as We with for improve success conditions eligible appropriate want they better and engage acute possible. Expanding early client help testing advanced identify diagnostic devices. event among result evaluation for or in analytics avenue manage plans additional before base, strategies by member members their we as freedom to growth

ConnectiCare new conditions In leading plan announced as entire X% Caravan member's to of such financing Care from increased Episode a episode April, both will for chronic network In Turning program build on one-month drive and high-quality, volume and will multipay to the providers. in This ECS as day program with procedures of the conditions provider The our reflecting new deliver major state ConnectiCare COVID-XX. episode-based health employer. be a of health program quarter revenue relationships from to year through with ECS program surgery stacking in despite the and work in commercial extensive our self-insured and meaningful Connecticut. a organized addition low-cost with strategy in maternity. leverage relationship first savings knee ongoing our and our a Connecticut ConnectiCare, partners already every such demonstrates ago, our the client, place the We of our asthma in growth build we Connecticut, and business. around headwinds or as BPCI-A revenue. size

team influencing length to readmissions. prevent for back are the their next individuals managing by outcomes proud and home cost and and of to reduce our of We transitions does and of the site care then episode work improve stay

with much of throughout this after out managing in work field the our clients pandemic. We are virtually excited to be largely back the

include and We integrated an our strategy model. in CMS payments BPCI-A total model next iteration Health Both with of care and footprint. to about to strategy of cost this on with continue with BPCI-A engage existing bundled are which our of Caravan excited an very could the ACO program, line integrated episode combining create clients an the combination

areas The to will should work and work held office, with stakeholders of close proceeding come X streams organization and Caravan functional new is we recently on finance. as growth. the portfolio on-site product of thrilled together work integration grow that opportunities established go-to-market alignment and integration Growth following functional functions stream management and by merging like focused are We which where work well, the the on March on and to our the is acquisition team two key a streams; focused certain Our adding two-day accounting Board. on Caravan are internal combined centered have meeting to around a alignment activities. our of is we have our

before, of are providers synergy wellness ACO succeed and our As I Caravan enhance client annual adapting conform to by the a in is our their mentioned the ability offering, visit which IHE capabilities. to notable expanding growth model the extending and complement providers to an reach to we

to existing cost provider of primary the specialty with combination our proposition our the part conduct are relationships road believe and next Caravan ECS model. multipayer and work, care business following savings of panel. portion and who referring program contracts for a prospects very we beneficiaries on the wellness we have been have am clients gaps been care care journey high-risk our While and drive By a able a of private I care engage their and value in-home who of offering, Health the Signify total Through patient will risks to will the a The government. a this providing system. have outcomes From as be the event total team the conditions be and annual care. well and close care site state enhances better excited visited relationships to in a to better acquisition, the in-house identify reaction relationships an about lever provide our is from their multipayer, ACO the in extensive customers in historically our drive of levers wellness to an our insurers members with a in as key Since able management I and not the are to patients comprehensive services to next care visit complete visit. larger integrating deep patient meeting as evaluation primarily of the through providers Signify's the of We best care provider's early annual acute in-home action readily combined Medicare leadership as post-acute applicability capabilities have savings in identifying physician, an the more about of of now with model costs and their federal MSSP of create positive episodes cost evaluation PCP. with industry-leading care to to we primary related view in capabilities. reduce to pleased provider Caravan's to with we the

the program another that we the In submitted for of Signify opportunity business capabilities growth access our application to in will treats of addition, structure model. how combined launches we recently maximize and the potential and We combined XXXX. REACH best in can program Caravan January continue the avenue the to ACO CMS our REACH proposed leverage to participate announcement for ACO our

together As U.S. contribute from significant to and of groups to other our we plans the plan throughout outcomes in care. programs of strategy make fee-for-service is through and poor launch facilitating be an a partner forefront intermediary, home, parties to provider of the healthcare savings can our risk-bearing think individuals cost, we accountable genuine for effort with outcomes and bridge creating the the managing all core We entities country. connect industry better programs. Data out current a system. chronic and we capabilities work structure guest that to map, drive over our time weight insights, health groups about We provider to entities to this and and help powering transformation care activating due the data an and road key build as system shared risk-bearing healthcare accelerate product at to want developing. capabilities is to within be the providing to the to conditions to believe and accomplish value-based those payment value-based the and to We to redesign are create

to our able that evaluation data hundreds are capture We of points performs. clinician in-home each network in

about XX evaluations to chassis health data their of to clinical in becomes with have also perform informs clients amount and system. that to The million XXXX. of out needs meaningful integration our We value-centric clients approximately is Medicare but as our in not our only members, the Advantage This we valuable continue in more build members. analytics data their million we social managed their capture members even plan data more a X.X and Medicaid expect

from unique doing our we their goals the set capturing are The we are data across results that clients' absolutely data CMS and honored showcasing and is analytics patients capabilities payment Our work driving work continuum in we serve. doing equity, with capturing, our and the critical health will success our program. around and through are and value-based to enhancing members analytics support that their the to on

by supported patient's analytics home better providers. for care support assess outcomes patient our in insurers, individuals the their we Our costs and to decision management network of improved health reduced healthcare enhanced action and and deploying provide clients. clinicians for drive outcomes We our return better and systems by by contracted needs to sending as folks and also analytics, drives employers software data, care. We the

us provide of As a an the about outcomes very partnership to risk-bearing front we are organization, better in excited for fragmented with system in impact patients and their with positively opportunity maintaining payers entities health. healthcare to

stakeholders recently we are on which Steve, they a to demonstrate the The commitment I to the support achieve possible key the social and to establishes so look framework establishes available first we I report, areas initiatives quality impact XXXX healthcare. We an aware serve, we our that social we baseline report driving health published will impact the about best you over exists for by team now you across results. which make effectively. tangibly that Board people focused for will an financial tools forward Before accomplishments quarter the payers and report efficiently on for Steve do. feedback. want walk Signify value corporate and social in us the management from to call very passionate. your I several to from and website, the needed report, you inaugural and turn The the all to of important information, progress that our through let shareholders have and in company environmental, chance providers, outcomes governance read is a It and and quality and to our endeavor live on give way which the and and also a do includes receiving hope measure reporting is focus. how cost to

Steven Senneff

you, Thank financial positive quarter as improvement press the another the the I presentation well Relations to morning, in delivering my It pleasure earnings issued while significant Investor the through events to everyone. year-over-year business value page and to walk Good on earnings posted our of results, in success is be our reflecting growing you the customers the as website. to in yesterday individuals. of our release Kyle. will referring table period

Table X, million driven evaluation The had was in-home revenue including XX% in see primarily evaluations of As Total volume. XX% to being year. evaluations XXX,XXX IHE to last quarterly with volume to same for compared quarter virtually. virtual of strong the revenue the the record XXXX. compared of first growth quarter, of we $XXX.X total first was XX% total to quarter mix first you by $XXX.X reflecting in when million, record evaluations increase completed approximately can a ACS period continue approximately up in XXX,XXX, the upward trend of The of

for Given encouraging million IHE level for XXXX. the IHEs, of are client approximately X.X continued our of volume the we demand for the and in full-year confident projection

extend great mid-XXXX demand. Optum a customer example Our their of to expanded through agreement strong with volume commitments is

floor time value we success in X.X floor is shared with We relation minimum you that Optum irrelevant years. As in million to will over of quarter, continued in guarantees $XXX.X committed volume dollar believe to as last price. for original additional the reflected years exchange settlement the the agreement of for a this become stock a ultimate our

charge the the and GAAP on record reminder, over a revenue inception the value us a As of the fair requires to contract. agreement term against at based of floor

and reduction the charge of revenue revenues revenue the a be floor including total will our the in on original million. $XX have HCS agreement to XXXX, for completed analysis impact We of years,

commitment year, half revenue volume extension of revenue XXXX, there reduction. period X, be the a the million reduction through and on $XX revenue a each XXXX, For ECS grew Table will final year million facility continue million, $XX exclusions to in Still Caravan size was we within BPCI-A as and overall X% of see first rehabilitation revenue. program to our program utilization. expectations reflecting inpatient one and $XX.X growth quarter high revenue in month COVID XXXX

the but to continue relaxed CMS to by to this of the COVID not and coverage something remains they continue Given COVID the expect be news impacted exclusions. latest mask is to reversing exclusions, variant, we program committed the recently evaluate. mandates about spread size

receive from which BPCI-A fourth program CMS reconciliations The the the quarters, received for expected will which we true-up is and performed we is reminder, second detailed when the the in period, we typically based a performance quarter. reconciliation be readout on a As reconciliation. next a second during sixth when

we first revenue quarter we first had turn, an for adjusted company to services. strong driven of for loss productivity EBITDA positive to $XX.X the improvements. in community of the to Back margin a and income million, home XX% the Table when that XXXX. growth to XXXX, $XX loss to X. impact in primarily was XX net quarter Table in of we first market million total, each prices of of costs, compared X, loss adjusted of years to of as Last primary $XX.X In $XX.X margin we Total year, to the Moving XXXX. improved We inflationary compared million million $XX.X had expense and increased for the the $XX.X EBITDA we reason quarter. related everyone, of between increasing full-year we points. quarter. for expense of we've Like net the quarter fuel the XX.X% first expansion was to with quarter of of the expect offset experiencing in impacts operating but trends to marking are had been labor years revaluing the In a basis million, quarter XXXX, XXXX reported from but $XX.X XX by the able to million do million the

$XXX our We negative revolving a cash once as our unrestricted Moving as in you ended quarter the with on, debt year-end ended million, of million $XXX payment cash is sheet credit million portion from of the with the levels. $XXX.X $XXX cash the capacity to acquisition. strong quarter exceeded an leverage again and of as debt due can million our the facility with X, net Table outstanding in down under Caravan balance we additional see position

which still as ECS full-year We anticipate results on the million the size Given of and in adjusted the to of guidance XXXX look that are stronger of very our the Total to the range results total estimates year. IHE for of year revenue in EBITDA March, those expect forward XXXX, capacity full-year you guidance range good we provided million be build as follows. maintaining revenue $XXX program to we've the half million. of feel we XX% half $XXX I outlined $XXX back we $XXX the phasing million achieving next updating into XXXX are to second revenue in just to about for and about and financial quarter.

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

Kyle Armbrester

Steve. Thanks,

asset have models incredible a and are cost have that and to us We to care clients in-home start Team bringing is a off extensively division. It the to post-acute on of model. Adding our services platform our Signify while With expanding providers component, bridge forward and drive the further capabilities between focused we care us better we us in risk payers. serve covers provides our fully a connect value-based use enables all gap unifying now is episodes, to great front drive XXXX. opportunity of a market relentlessly solution ECS HCS and total a to Caravan together for Caravan, to set individuals. to our and in of an and our customers important great capabilities

bring drive our all significant Advantage which should in already we with ability to had Caravan, With now about goal organization the having and by we've Medicare the to integration them everyone an constituents, and of businesses XXXX. believe well accountable help Medicare value ACO conversations including these population of shareholders. CMS for suited the in-home of through scaled business, care book their great Medicare fee-for-service Additionally, the have to achieve are we services in

I turn operator Operator? our questions. the your to will call over take Now, to

Operator

Sandy, you. Thank comes Draper from you. question Our Sandy to instructions] today of first over Guggenheim. [Operator

Sandy Draper

to trying Should is you how size, understand a comments, Just last size much, I'm just that ago? guess everyone. would understand reasonable commentary quarter, or the Thanks view you question, think billion. the lower for the I how either around believe to first love today that sort some Kyle I when of months still your I good versus billion end $X.X program looking a so more guided to few around try guided we about from is size that to range? of the $X.X you Steve, and range? morning,

Steven Senneff

exclusions range would end high have at I year. back Hey. Sandy, difference the it's low on size we're in still program whether we end And range. that encouraged between or We're Yes, up say end we the the going Steve. depend absolutely, good is going question. how of last forward. that really, by many to from coming the COVID

very we're range. that right comfortable still So with now,

Sandy Draper

either That's contributor then jump of Okay. then the an half us there in half weighting, and I'll back the will that in factoring should an ECS you've sure we And whether just Great. second impacts year. in follow-up, pricing queue. revenue Caravan? trends I'm Obviously, helpful. besides higher just of into around the other Caravan higher of about it's second thinking remind weight terms we're HCS make are the got But the bigger trends, my half? excluding Caravan just or the volume Thanks. a in be

Steven Senneff

a Yes. bit of little It's all the above.

You're size ECS, the versus going with higher we just which that year the last program talked to have about. is

as you to also quarter. You're just record quarter side toward have two. HCS on last we had had evals XXX,XXX a record quarter. But volume through a in We're for done volume that We – trending we over quarter never press going we heard, one. the

toward XXX,XXX trending going we're So forward.

driving capacity. business. seen we've never that our all half back the So for going be IHE higher demand, the And about to is ever demand

demand second And half. continued going through strong so see we're that to

Sandy Draper

I'll Thanks. queue. in jump Great. back the

Steven Senneff

Thanks, Sandy.

Operator

Thank you.

line next from Samuel JPMorgan. to comes Anne of Your question from the you. Anne, over

Anne Samuel

a follow-up Sandy's question. to for much just so question. Maybe taking Thanks the Hi.

really little would You initially, first had bit XQ you quarter. some outperformance lower. a the in said nice But be

the affirmed waiting year. for and You guide the the

holding of to there's So just into is be we anything that for there. conservatism guide taking that on might wondering account embedded some second or reason the for should been if quarter have the the just kind

Steven Senneff

upside, is say little really half, with say the maybe from Sandy Back a looking QX. talked I bit Yes. bit pull had we forward little I'd of we a that slight strong. as would there's a just

that's how thinking so QX. I'm about And

we're that numbers, and our waiting the numbers will in we're get about but Right which we us more get in recon now, full-year, going. hopefully all the as tracking quarter insight of to far recon few weeks. expectations, are going really internally, the feel next where the to give to two, good As we're

Anne Samuel

Makes sense. It's still early.

that was you from that? some I Caravan well. learnings had integration you've could hoping the said is share far You maybe that progressing so

Kyle Armbrester

staffing spend have customer get those out Yes, team, an homes issues, to of folks' with they're inability prepared Caravan or ability in a I them lot the they're been been to go conditions and after the as base time to the to to Anne. to facing absolutely, out get in into you into the find these don't facing And they've and leadership and fantastic. to alluded conditions remarks, it's identified. the clients, when post-acute. go They out capture appropriately manage I

of so client out really inside post-acute post-acute the going all the work community And network via of services service the is our all division bringing business. all that episode workflows And we've these density part episodes then specialty built have base homes. and a to all we home what and into of of we're that and with that as

have tremendous to to patient drive of better costs better those drive when combined, ability things, shared savings. All outcomes remove and and a

from episodes Number just together, these to is we're the similar works. been revenue pursuing collect and great really that make clients kickoff a businesses revenue their how cases those bring one. program number synergy we talked we've model all from our that they the – how it's so on about And or two, as

savings have they a shared So construct.

as we're in workflows internally system key merge asset a when us clients health more together we work frankly, of top And workflow the as I of risk and bunch they the together the for easy talent identify quarter picked it's And taking and platform the think on lot that that us lot up, that a mentioned about tying is acquisition. this that part the we some analytic to specialty with need just world, to software That plan so a last for a and think that really and product we engineering of of Steve's well. is and doing. work our bunch needs in-home to on. And closed and being a we analytic physician financials mentioned a of acquisition as we big synergies post-acute of about of see as helps sits coach

So bringing capabilities we of good business, of and kind together it's many that been centralizing unifying have. asset a really so to the the

we've yes, culture is lot done well. always of just along same And So with here the of plugging and manage a and the team people integration lot it start got spreadsheets. really the integration together. and don't M&A a first that's We first of

progress thrilled, happy So and very had frankly, we've been date. I've the with that to

Anne Samuel

terrific. That's Glad it. to hear Thanks, guys.

Kyle Armbrester

Yes. Thanks, Anne.

Operator

Thank Anne. you,

Your of Goldman comes Cindy from Sachs. open. next is line Motz of the question now line your Cindy,

Cynthia Motz

on welcome, for And congrats a Thanks quarter Thanks. very my taking strong question. and Jason.

in right? clarification, we it's look your that numbers according So what when revenue terms of at in least HCS both is the my little for question it at the I also visit not And to is visits, looking strong. record rising on Just the business. very Obviously, year-over-year. sequentially very, just per that's looks had

you the for And and you thing color follow-up. So ex Steve, Optum about just said little I terms year's report the years that your the on one of Thanks. in then effect on revenue, always might more is correct? guidance have a looking that. just And more and then

Steven Senneff

Yes.

is revenue So And relatively the as to slight Cindy, I've it positive it first there though. there. flat, a like let's increase, we per really trends one remind make said holistically, everyone, see start it's on I you to with at HCS. look looks a just When there. want previously, couple we price That, going things and the can where to of continue some we're go beyond. largest values others we with of different our we of of mix XXXX are impact about our that outpacing and growth client in clients where devices, with where preventative number attachment in good individual rate at diagnostics really some look But our our feel rates the points. when sure and

included the far as year our in numbers. all impact, As that's

revenue. it's the that – all we there. and in everything guidance show, we GAAP our included So It's

no about million. And your there's surprises to those to make $XX in there. put next be it's and a you – we The XXXX so everyone been This going just million can again. averaging numbers million $XX them so it's sure has year, models. And to down year. drop trying I'm will $XX

our in So that's It's numbers. all our guidance. all

Cynthia Motz

guess, Great. control, can you on was expecting. were Because with XXX it like HCS abating expect trends the I smaller, we to we can if some saying look with even I were or those I year, and end, ahead go which you same in up stay the quarter and probably where COVID the higher cadence there's then that HCS, much back then too, feels is ECS, a division, what might think is for the then the And of a would than guess, I similar the is – just continuing. our tweak and first because if it maybe you're to but possibility significantly at obviously you'll are leaving expectations is what cost guidance it still also, just ahead margins it later on. And very mean loss. a the has like

great. color there any be Thanks. would Just

Steven Senneff

impact about offset we've that the us that. of really Yes. that is there really of initiatives place the think the is of proud things and in. and every in worried We're Look, I out productivity company lot one to put a inflation

exactly margins. those driving we And case that upside we're that that's the just point so could pressures have, nice you items that it's that, why inflationary look to really some despite just if outperform you're mentioned. we even where for the you, we seeing, of still And

Cynthia Motz

Great. Thanks quarter. Good again.

Steven Senneff

Thanks, Cindy.

Operator

you, Thank Cindy.

your Kevin from is next Kevin, open. Your comes Caliendo question UBS. now today line of

Unidentified Analyst

actually is for on This Kevin. Kirk Hi. James

in of XX% You were quarter. mentioned mix the evals total in-home

Just of for mix and in-home remainder where the see that you the telehealth between maybe do year? trending

Steven Senneff

that would peaks range. I our somewhere it's that kind come couple years ago. expect of Yes, a down in of XX% less We've from than of

that where where So of that would quarter this feel XX% in there expect of we we would I kind of line be. were is

Kyle Armbrester

the reverse virtual, in-home was XX the of not to just And percentage be there. clear,

Steven Senneff

Yes, sorry. clear. that's was Yes, XX% virtual. sure Make

as calls, possible. our really us are as on earnings to we've As much previous clients said pushing do in-home

down go will would expect time, And some as it there. there's long I so still variants as over that out

its it I fine that around keep to the model think rate. in

Unidentified Analyst

more maybe the follow-up just pathway XXXX And in to should maybe big Thanks. profitability we one around and picture Thanks. about How ECS. beyond? question think quick Great. and

Steven Senneff

for run Yes. size out that its are get One be billion. are really A XXXX we that to profitable to going in the couple assuming program of stand-alone. in that $X the breakeven us ECS coming to be of back XXXX. we'll called or is to back things the helpful rate, are which we've in around drivers full going is And segment

that, in happen good feel will that so XXXX. And we

rate feel will also driving the up also that that today some savings for go in We to of exclusions has as CMS away, beneficial COVID and well. back us that place be going which is

So make non-BPCI-A we then those are components. couple house. key business continue going traction to far And to commercial be in of a as our our of as side the

be good is revenue a feel Caravan in additional And us so growth but going least, for and beyond. and driver about nice is to then we additional revenue feel acquisition we that there. XXXX EBITDA And getting of last not

Operator

I think is line open. still your

Unidentified Analyst

all set, you. thank I'm

Operator

next Gary ahead. of go take please Gary, Taylor question Thank from Cowen. you. We our

Gary Taylor

Hey. Good morning.

to on had expectations Is this Just few Caravan revenue change your there that? a any EBITDA for still intact? given questions. us had previously XXXX was year what What you for

Steven Senneff

good big now. changes. and No in XXXX We sales Yes. at, Caravan process right for we're they're a still feel where about and

big that. for talked And in But so on expectations deliver about what able XXXX. are a that be previous we've they'll calls focus to

Gary Taylor

bit a some to had in-home – some mentioned willingness quarter do that's I Omicron sort pull-through Got to the – degree weighed impact of on you that do I of from how you. did the XQ mean And or to? in-home. think would imagine was you in What terms of related XQ. of little

I guess that might understand thought would I of to pull-through that So have have maybe kind of what opposite the been? want such

Steven Senneff

were It – diagnosis continued of ECS elimination a had Yes. reduce side impact the of was the that side, the size it It impact. of through But of lot the a COVID. on really wasn't wasn't HCS our on significant on Episodes to ACS house. where program

Gary Taylor

last some to before, about obviously, material? we a so fuel guys it like were can or way any there become that one. Is it size you heard sort reimbursement quarterly just if I up, you then give are talk could makes some really it fuel us an way keep on And to haven't sense. so of fuel prices eye

Steven Senneff

called not not even guidance things the not It's scheme but to It's doubled, like gas We not it. that the for in higher, out if in one like material, Gary. we're – material have certainly. of little it's but just it's going prices for things. as pretty do inflationary small at the going to look change Obviously, grand are out we folks of it's bit that that we that's a field,

Gary Taylor

Got it.

Okay. Thank you.

Operator

you, Thank Gary.

Tassan please question today from Sandler. next Jessica comes go Your Piper of ahead. Jessica,

Jessica Tassan

question. Hi. taking Thank much my you for so

different So quarterly year anything on is to volumes, I think cadence there the to last? guys mentioned just this capacity. interested you IHE know relative of

So on bit? just you that elaborate maybe could a little

Steven Senneff

Yes.

a so the off significant know a – is volume back bit significant earlier typical what far that keeping make of of what just was not we're one the so as much to expect that drop-off we fact as it in a just because up kind don't quite that with. demand a probably the to But be not I so have in got more. half year we'll think I in our demand have falls year. is probably build that as just might QX we typical a And – every much the bit it down. but and going little I I much we is little of past we've there's wind still I'm as year, that as pretty anymore, to that it alluding sure standard that's year more thing

Jessica Tassan

– the are support do over order today of additional or course some in Got support to it. guys Or some XX,XXX hiring And that? demand? to you the the the do you hires the year XX,XXX of enough do that field to in people is additional sort – anticipate making need

Kyle Armbrester

the but to year, markets. numbers our around this new is credentialing guess in hit about great capacity and We moving hiring both. and Yes. the capacity providers I answer feel new we always making are

– stops. we never get year, and next lot into frankly, So toward a talked a that QX. try load end our towards going we the of we member in the the about, files of Because year, right? capacity of lot And as other to things

and to planning, laying will I out so across mention, I in ground county our going nation how capacity book, of in-homes for something to new because And the And this big wrinkle be so now every alluded we we're are to that to doing a start on expansion we game fee-for-service the hiring deliver inside though, there's earlier, is right? going us. all of the this a U.S. capacity. TAM

into that the in-home book evaluations And amount there. is ACO the value there's moving of we a tremendous fee-for-service are Caravan. We have

now we all we're in a regardless go doing they're to prop value for or Medicare fee-for-service inside into our Advantage. so if be in-homes is going And when Medicare, market populations

Because healthcare a better And we're about. so exciting folks going managed in than incentive savings this shared make with. investing these that these now we're those ever, that and we're do they're ton upgrading It's in to connecting that the contracts something expansion right? partners provider proactively that is out really the to excited condition that we in capacity that making and contracts big technology, a identification be system sure to we're more our the with sure groups, provider cost of go have being of total back there's

so of a of us. And the our many that as integration unifying part we business. have a capability the pretty for And about so expansion we're excited this one Caravan TAM set so large of it's reasons

Jessica Tassan

And historical both then IHEs of and you us number? just performance be helpful. the terms to can would then Thanks. I last guess, my just of are Caravan's dollars be, overall savings? going in IHE one first Caravan MSSP in And reporting the percent That's off, you remind in

Kyle Armbrester

them Yes. structure, to division. out won't ACO in right? breaking Like the the they're savings doing separate ECS model we're a going shared service going the them because sits be into as to be fee be of We part that

separately. So breaking you historical do we savings? be want out them won't And to comment on Steve,

Steven Senneff

mean, in I X% around it's historically, the been range. Yes.

drive savings optimistic we when these start additional And can is so for and the higher we rate forward. one about business that that going all we're the of services really things assets significantly this around adding business

Jessica Tassan

you. Thank it. Got

Steven Senneff

you. Thank Yes.

Operator

Jessica. Thank you,

Our next Matt comes Matt, from line William is of question Blair. open. Larew your

Matthew Larew

Hey. response Caravan Good outlook sort question, you the In of reiterated to for in XXXX. Gary's morning.

in talked EBITDA previously You XXXX. doubling about

Steve in how referenced. you just the much versus I to, improvement wanted gauge maybe just is and alluded savings to So I success of your which rate, that guess that confidence as from season, the in in selling

Steven Senneff

confident still in we're Yes, everything.

our able what In even is that. to talking about, has on fact, more Kyle do be confident we're been to ability

in it ability will the be going new to the of lot of some it's some the program forward savings and savings And with improving through rate of our a going be sales, but just XXXX. shared

very yes, that. in I'm So confident

Kyle Armbrester

biggest for us. community in post-acute and the core more good And into biggest they access set too, in black they're no is one a are getting when like, looking and reiterate we just of Signify so we managing And your And I out help. a to I've competencies gone it's us the of look, of And doctors always homes a of mean, what start like, at these are clients, post-acute anybody, partner where needs for they're to best risk into complex hole at question, your right? gaps this to and have perform the if have a we I the organizations tasks. battery the that, that nation nurses gaps and for they bring and some are to two to and capability really the know to than with home you look

Matthew Larew

you from interoperability learnings improve for platform your platform the key or what goals year? are hood. how share Caravan kind much That's create opportunity can are upon? your have of great. or Coach just under this to with then, And curious And if versus I'm some your Obviously, Caravan Kyle, technology you is curious, just there of an that

Kyle Armbrester

Yes. Absolutely.

in right? First the of is Every that company hiring, that and on space they're staying aware the of, I'm tech top country the is technology in making hiring sure curve. foremost healthcare especially

getting great. efforts to talent. that of bring benefits, a the Mike, bumped he's environments, battery sure continued and just running there flexible compensation, we've who's fantastic our and feel leader. we're there things We've best recruiting brightest to up make and got a so And strong in whole working really incentives,

from in mentioned, not clients view and are of integration, managed data going is level data, feel data, that individuals inside like the making government out to on we number that they're where filling from as proud key connecting and data system those and just longitudinal not those not of. post-acute. exists the care extremely then these system individuals. is really all and doing round really been specialists. two, And They're traditional from where folks I'm data getting getting we're I in their and gaps getting the home. the They're point, a the inside has creating feeds all gaps, business out for collecting a Signify sure plan it's aren't we well, get not activating One, at teams with access we're the data and the great What journey. existing health well to of that not risk So that has that your and our twofold. something employers of been health our federal from really bringing clients massaging data

existing So products. number our of aggregation insight continuing data would two, workflow be piece and do one. Number that of inside we kind are to expansion

we diagnose connecting see return sure to our we're that to care to get options short specialist someone able in make So partners new a of go with dementia if devices, to to with in expanding order. that new them and behavioral one

of So product better a individuals to time. extending care of is that lot and our lot take a are integration workflows where of these teams work spending

Matthew Larew

helpful. Okay. That's

could I one if Sorry, just in. more sneak

But workforce HCS have specialized. hiring your or the you given the issues and year is differentiated not had over on technology referenced last really on any You so, side, side. the

place the curious, if assessment longer given roll had, fill side? sort the times have Just on of noticed pay in open XXXX having of the And more or sort there? for demand of you've you've hire in terms record what you to

Kyle Armbrester

grow our more capacity. just had than manage to I and taken top. from point ever Steve's it the because client to actually of We've we've great this mean, demand Yes. ability

so And from valuation and traditional when work. our doing game they're running the across issues

we like areas, enabler key the to. in folks service really folks where I So can't that facilities, get the again, into that as technology can work seeing home, post-acute the into a the mentioned are gap to bring fill into just ACOs

so is our And differentiator. that big

We guys have team. saw managed that ramp nicely. and that I the continued to through margin well and performs. We've with how really mean you that have scale done

in and As People it's surge on demand market. health capacity touch always that have members' patients' a their are we and we in form incentives lives Steve has so to there's mentioned and If volume county, beautiful there of not in certain those and in static and making markets. special for lives flexible, like clients single that I've our around that mentioned calls, right? touch improve We that numerous makes can a particular that rural these move successful we a county our outlook. sure we're move part model we even folks demand it make that a

ability And meet line continue kind our substantially. We been business and to recruit to grow incentives of very and grow in very, to great all bonuses things and of demand. feel so we've client of all expectations with any our kept to this about paid all able our

Matthew Larew

Okay. Thanks Kyle. a lot,

Kyle Armbrester

Yes.

Operator

of Matt. to Baird. comes Kesavabhotla Thank from over question you, Instructions] [Operator Your Vikram Vikram, next you.

Vikram Kesavabhotla

environment through whether have pass that, that your from to of periods that comments prior about, on these to are this it's your as to guess, balance you in the throughout expected? fuel, higher typically And side. side? Hi. the on year? customers through time the revenue pressure business? far on to just to to over able when incremental year Thanks of your is you go talked level, follow-up what then are I through of the things some wage And higher perhaps trend provider you a relative I labor manage Or labor are as efficiencies network a inputs, just in through for the this inflation wanted to question. any going guidance how on you're your seeing so Thanks. or you you for are those things in those taking you cost the follow-up what labor assuming typically the

Steven Senneff

I'll that one. take Vikram,

comment, So nice in within everything our back we're inflationary saw to managing a improvement. as with my is And expectations. QX, margin you

in figure will we've meet the doing to been special covering pressures drive always are productivity that we coming. we As we demand Kyle need this saw that efficiencies. our to out drive all is the the the market beauty have. gross And to if for the of trying incentives that said, got do initiatives margins. do would there's that, off every to seeing numbers that year. impact But we what on this inflationary that you're We which We've always we're particular a

feel we do So about good that.

on it passing As clients. far to as some

that. really were we do at that pass there to forth And to volume want with our clients were the we through. to day, so COVID, them. During us are open of the and had I PPE able things to drive mean for some very end the they

always question So avenue can that's this not at this for that's that, an out of explore year. we the point

it in a most road been that down productivity covering initiatives. gone our haven't through and of we've significant We way,

Vikram Kesavabhotla

you. Thank Okay.

Operator

Thank you.

Cindy, today to Goldman back you. follow-up line Cindy question Sachs. is of question from Motz last a Our of the

Cynthia Motz

Oh, hi. I just wanted Yes, Thanks follow-up. again. to

doing trials, about there, it the business the about – of you're testing in-home talking everything the You because about going leverage guess I sense and diagnostic part had the that more and you're mentioned market. talking else. you clinical and something I've with like what hearing to been ECS were already makes

the you're So in there already home.

people, overall about kind you look billion of that had something when And slide part have the up? identify see that? I'm $XXX about you obviously, would then Kyle, to seen that anything can pick So Like, a are maybe because we mentioned you you a just too, don't I TAM of thing? think data, but start I at in would that growing. you TAM had while you the talking that have can guessing that. when Is numbers, the growing your And or about Like back something. maybe

clinical opportunity, trial about and might impact that Thanks a might how see we lot. when how TAM? then So the testing diagnostic like curious that just

Kyle Armbrester

Great Cindy. question, Yes.

first. question TAM the take I'll So

fee-for-service So too. the TAM without just Medicare a to doubt, Advantage we're in-home this expansion moving as a visits is from Medicare the book with

side, So now country. of are to there's entire need the fee-for-service ton folks, doing they be a ACOs on right? but millions the inside we of across in folks the one population, the in-homes ACOs, across obviously, of Now

So say, go plan partner system this that's visits the over and and a in really to health a with anyone us gives or on. XX. these partner with to want ability We comprehensive do

aren't revenue So appropriately, that's that of diagnostic the of focused managed them very tremendous two, them conditions a I that, on it's When doing amount doing HEDIS – of with ago, on ton EBITDA material and of getting of is in today we're closing a back part are started a today. testing, that and care nature in and clients Number we chronic our years being and we're a driving fast-growing helping a one. HCS volume there gaps for identifying our zero value. specialist, The getting business. really Today, part of into stars there. excited business And business. effectively care majority that that about the that measures. going plans, to It's flows number four

them said, today, but What's plans, the the because all health whole systems, from really has we're honored All going been being back the can their the holes. that the What as hasn't take never into mentioned a interoperability take an have if when still was How the been the use it's doing they and the the data that standardized step we something plans that So there world, clinical are I on standards when hand members look, entrants smoking things health they're extreme that not And those area we're and of anywhere condition when systems, mentioned, they care been where of that – So meaningful battery That's a where getting In market areas social set the you even that the talked most facilities running to healthcare, into and data something are of off traditional then see is employers, cessation individual? great program, excels finally, [indiscernible] about of doing on risk CMS great as of connect post-acute that for how I that No one systems mentioned, own that value-based call visibility she then Do many an are it's ability the in new to comprehensive has obviously specialists. to enjoy. and these they the with into matter and in well. to, called, Signify is difficult actually Signify as they've got serve. many with for right? post-acute fall the data, home. post-acute smoking the that health the go we meds? have the health documented? have have black home. they they

and real-world doubt, have of all a trial these without but we underwrite, make track. help those them clients has life models and bringing so and evidence come and not data the keep a extreme we for find continue identification both risk our that delivery together, sciences, populations, to big that in to haystack, future right various we'll the play benefit a bring in execute also with the believe things on that into across can not we can existing to but on the clinical needle rich And only of all trial the folks side, facility healthcare we

and working And it about going continue future And work the to frankly, something we're in two plenty that we the in is been but big on that that conversations have, so it's the to divisions on. space we're on. expand we of a And focus today. without something and growth continuing we've, on excited have to doubt

Cynthia Motz

Great. Thank Okay. you.

Kyle Armbrester

Yes. Cindy. Thanks,

Operator

Armbrester, no time. at I turn over are back the further to call Mr. this questions There you. Kyle

Kyle Armbrester

you reach Signify interest thank additional out today. Jason. Thank and you, your the employees quarter. to our and everybody through if customers, you for shareholders call and for to you us of supporting you, great And Thank everybody. our in Thank Health all any our joining please questions, all Great. another have for

Operator

This concludes today’s call. conference

now may You disconnect.

Signify Health (SGFY) 8 May 222022 Q1 Earnings call transcript