Earnings call transcript Q2 2023

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Operator

Ladies and gentlemen, Thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the LifeStance Health Second Quarter 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Instructions] [Operator

like of conference ahead. Investor now Prokocki, to turn President Vice Relations. to would over the Monica I Please go

Monica Prokocki

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

Prokocki, Vice Investor I am President Monica Relations. of

our are Executive Relations before Joining Chief investor.lifestance.com. Dave this the website, Chief Officer. market Financial me earnings section the Both Qureshi, Bourdon, We Danish opened Officer; issued Burdick, available and release today Investor Ken Operating are of on Chief the Officer; and morning. presentation

In call the addition, this be will conference a replay of available following call.

call outlook, prepared SEC in and the the the your turning disclaimers over involve business please Those differ results to as including release press performance strategy. materially. the filings filings. factors, other Before to Today’s management actual financial their attention risks, and included earnings remarks, remarks for in that and about statements our noted periodic to SEC, contain statements forward-looking with statements, direct forward-looking model, our about cause uncertainties, could statements

addition, non-GAAP reconciliation believe year. comparable noted, financial report compared appendix. for all prior measures, results prior the comparison and is A directly measures otherwise please the in to release included press tables using past investors and of most the we additional information performance. provide we GAAP which note earnings Unless to In help to facilitate that presentation are results

LifeStance. Ken? time, the Ken turn CEO call I’ll this of to At over Burdick,

Ken Burdick

our we performance. you all continuing and thank us strengthen Halfway the Thanks, joining operational are Monica, today. through to steadily for year,

visit we clinician continue and addition, see strong volume In to growth.

organic. where XXX% quarter our is was the growth this first Importantly, of

to to hybrid clinicians by insurance. our and of and the multi-disciplinary model mission day of provide U.S. dedicated access in-person XX% population access to care team affordable of healthcare. personalized every These trusted, LifeStance's to mental clinicians a on Nearly covered deliver commercial virtual has

about is optimizing patient team outcomes. passionate Our

their measuring our progressing, patient's outcomes better care to begin on this To a front. new in advances want clinicians we I launched recent how support informed care by highlighting program. is

assessments outcomes be appointments, new as and As patients after appropriate. clinically will all to sent part program, of follow-up this deemed

capability for stands develop an efficacy invaluable value-based ability with care us new unprecedented and improving be data. continued this outcomes. level will clinical our partners. patient data to toward This will highlight our arrangements will advancement It life Overtime, also of quality and deliver will care our payor differentiated support to allow

drive scale outcomes are We way and that to to across a in country. the improvements and to healthcare in LifeStance's uniquely positioned quality we disciplined leverage size mental help can measure believe

our are about enhance data health inform this We treatment. and better on excited step and analytics mental path to care using to

We pleased are overtime. in our we average new reviews data patient stars. have early X X.X for outcomes the LifeStance tracking of we a results of are XX patient Net other we earn with across still Promoter Score are at out currently initiatives, out that Google While searches our rolling experience very over of currently centers at

tremendous patients care from receive The our experience LifeStance ratings clinicians. the represent and that

every day, deliver recognize opportunities experience. of patient enhance and but to we the customized proud care we compassionate are that, We that the have

As commitment, million we as we improvement, we constantly strive are closer to the serving annually. proud nearly for team's progress move patients of continuous and X

of the earnings July of performance. notifications XX% approximately termination were to the continue our Regarding completed operational on as in improve initiatives announced and we execution, payor process contracts, We call we make which sending that, Xst. of on to last streamline business we progress our our for

have visit will impact operate efficiently. little will more our to allow but no These internal volume, to on teams

terms that aligning contracts expanding with focus vision who commensurate access LifeStance's mental in clinicians and continue value will on evaluate with While and with payor to the of healthcare, this to and rates provide. share invest initial phase is partners, complete, that payor we our our vision

as Additionally, nearly and simplifying phone forward, reduced. email acquisitions administrative single the one and systems systems multiple centers our EHR we created years, XXX us company-wide burden system. on one one of the Xst, six implement to also processes as the complexity now our will be system, Streamlining past of step all truly enable system towards will significant during aligned from have This new of and significantly July effectively swiftly, is a initiatives.

center is has margin results all of with adjusted the of Turning delivered million exceeded second the execution, and achieve disciplined we team year of met commitment. $XXX that in financial quarter our consecutive to full we well-positioned which or third or our EBITDA to met our expectations. $XX of our and This continued revenue million, quarter, $XX million, feel exceeded expectations

turn With Dave? and will I our Dave provide performance to that, on financial additional it commentary outlook.

Dave Bourdon

Thank you, would half financial echo first and through the year, Ken's of operationally comments solid I performance the Ken. in our like to regarding team's both results. this

growth productivity. primarily higher produced of representing was This of X,XXX,XXX volumes XX% we count and result driven quarter, visit volumes higher-than-expected million, driven Visit productivity. XX% with increased revenue results top-line In outperformance clinician strong increased were higher the $XXX of of by year-over-year. primarily the by that second year-over-year,

increases. by $XX Total year flowed increased through center year. the Adjusted primarily margin, over million payor year EBITDA center of expectations. X% million our with visit XX% of over in The margin quarter $XXX, increased outperformance revenue on was consistent driven per by to $XX to year rate modest revenue

negative million, year, In liquidity. free cash the quarter, was flow with over year improvement in which second $X expectations. $XX to million line our was a Turning

impacted quarter, and flow as payroll bonus taxes. stated from payments we first which to such improve As higher previously, we costs cash was by compensation expected the

quarter, a as DSO This a prior days. we hold above XX increased the rate from claims to XX was second our sequentially retroactive to expectations large the to days due In decision made payor increase. for

should similar claims due for negotiations. as improve. to hold other rate a the meaningfully several expect third We in from quarter dynamic we payors updates DSO

million. the with quarter net debt exited cash we of of and quarter, million fourth the $XX During $XXX long-term

we debt with business us draw debt a well of full additional sufficient from delayed free the as as financial QX, capacity we end flexibility loan providing had for $XX As term towards run head XXXX. $XX year to the facility of of flow million positive cash million a as the revolving

In full by raising raising year full we $XXX $XXX year revenue terms our $X,XXX are XXXX, our and of million margin our to to range range million. million, outlook to $XX million to for million $X,XXX center

maintain range further EBITDA reiterating are of for to million flexibility guidance in We $XX the investing to business. adjusted million $XX the

guidance. We of is our which the expect productivity QX second in half higher into driving experienced the we the year, increase that in revenue continue QX to and the

third million adjusted $XXX $XX to margin EBITDA center revenue of $XXX $XX expect million $XX million For of $XX million million. quarter, to of we to the million and

reflected third quarter of summer in a seasonality vacation As a reminder, the guidance season, which results there result capacity. our as clinician in is lower

that favorability, to to Before drive make it to clear are Donnish, as revenue we XXXX. I'd like accelerate continuing we in investments I transition

digit stated As XXXX previously, we expect margins. exit double to with

be However, benefit of greater XXXX We foundational XXXX, XXXX expansion see will the investments. margin to as year on expect in will a not our from fully our have linear. progression we XXXX of anticipate margin full to in returns expansion but

additional for With to that, Danish respect I'll turn with to color over it the operations.

Danish Qureshi

Dave. you, Thank

clinician net growth teams around align two and continue to our ads, clinician priorities, productivity. We

increase second In bringing quarter, terms of X,XXX in ads, grew an year-over-year. our net clinician clinicians, total XX% of we XXX the to by

messaging, XXX% growth this with and our quarter's Importantly, consistent was prior organic.

clinician expectations. capacity in to to clinicians Turning our time productivity, or trended available see line make the patients with

sustained three In deliver terms of utilization for improvement, our has which appropriately for we quarters. continue fill been to to ability our clinician schedules,

We the year. believe it is year, our now increase performance the go which half in first of the the expectations appropriate for assumptions into is higher productivity factored forward of the half to our reflect second to revenue

these at middle, the in the of funnel. discipline operational utilization We through top, and improvements are bottom patient driving

our with At to funnel, growth the the related clinicians patients overall line capacity. in top we and new their of the attract of continue

boots primary doing expanding referral ramping key to in delivering which care is local new and a solidifying clinicians. Our the the referrals, contributor and ground tremendous growth job team relationships on is

brand online increasing ability continue levels of continued effect funnel. combination to Additionally, the our of in marketing traffic with team's the growth have patient positive top to organic at drive a awareness in

patients. the scheduling the middle improving at Second, are of of funnel, our we

for on the appointments Our the who intake phone. teams enhancing matching are prefer their over patients schedule overall to experience and conversion focused

our capabilities OBIE. also intake to to patient digital optimize leverage We matching booking experience and continue via online our

middle that announce to month of project. further at excited implemented to nationwide funnel. the the second offline has progress are been led of as the an completing OBIE and efforts have We fully These XX quarter online

a significant down since visits, time use ability of to bottom of the improved to on converting this terms of and their Finally, by utilization end points X represents completed a our our to cancellation has at X funnel appointments XXXX and XX%. had That facing the of improvement scheduled patient another the rates quarter, the point impact in productively. clinicians

top, better-than-expected funnel the second middle, bottom quarter. Our contributed strong and execution at to productivity the in

Turning to we real making we project our the announced on real that good estate initially estate, optimization earnings progress QX call. are on

patients end XX consolidate we clinicians. to centers planning our consolidated second As and to the we no XX were XX to By year. reminder, to of a this disruption the little centers quarter, with

of in an review by through centers quarter's As are for call. and provide late targeting real that identified we we update work our we will we estate, next this earnings additional XXXX consolidation

openings. continuing of to novo are Additionally, we pace intentionally our moderate de

from down guidance now more no original are We to than of our to XX in XX. XXXX, expecting XX

leverage. we the in use while and we will goals XXXX operating our de ensure forward, real meets novo regularly estate of hybrid our footprint continue openings needs of our supporting space. Going existing expect our and of it to fewer model, efficiency we And evaluate as continue

proud foundation dedication of of the continued business. driving to our across operational I'm closing, In team's improvements the

and complexity the We streamlined dramatically areas have many of reduced Company.

and have phone EHRs a system. booking systems X, of X, to dozens We national out rolled to XXX from online gone

around a KPIs aligned of a set teams move single We have in common also forward the direction. us that

of into and are have are still the do, and energy lot While team quarters a the of work two enthusiasm to year we two process, and palpable inspiring. transformation just a

turn I'll his Ken to that, back it With remarks. for over closing

Ken Burdick

since our and systems, and I referenced and been It year by all payor outstanding processes, on simplifying time, Thank we as dedicated standardizing I like business, Danish. would joined the their in work thank real our clinicians contracts, focused first other of you, of areas and for that LifeStance, Danish. has the have estate XXXX. in members continued to one team half of nearly

also our the unique enhance treatment. care and and data leaders space, leverage mental As mental inform care better to to use in analytics to we health outpatient are scale beginning health

and work I confident we the long-term make commitments. and that, our necessary than recognize short of I ever ahead deal top foundation, our focus of as with to to us, investments we that, there discipline achieve a While on continue great am execute is more both priority, will our strengthen

Operator? We will questions. now your take

Operator

[Operator Instructions] Your Hettenbach first question Craig Morgan Stanley. with comes from

is Your open. line

Craig Hettenbach

Thanks. talk as over on to mid-teens clinician that next Ken, do some of around gains, are revenue growth just think about productivity Can some for potential growth revenue firmly years. based the what the any you couple growth higher you of risks see the about on and puts that or track drive kind could and you seems takes things mid-teens it? you it

Ken Burdick

add I'll and comments. in you and $X.XX give my then Donnish weigh let his

occurs The had that first most the organic. mentioned script, as recently percent to me we've a growth is is we've in that thing hundred that the

the can be back where free an of we into at we more of acquisitions a will from mode. one upsides acquisitive cash, point So is our that fund

rates, downside, upside. And et is the we frankly focusing cetera. around earnings every day, pure which So terms Donnish in in on focuses of the talks productivity have each to about cancellation that that and in on that stay and of call he sort things rates, conversion vigilant utilization, represents

So, I got of stay but am overall optimistic, on top to we've it.

Danish Qureshi

view on that recruiting engine, now delivered Yes, as the it its look in improvements to continue with front which be we've being continue with ads to and through to on a future continue affects utilization that we approach productivity. organic best-in-class our able we focused the concur net And answer. clinician out to deliver really as a conjunction our to as ability already I'd with scale we to

to has how new our very side start been we lever of we the being, clinicians improvements do and we that turn With equation, our our make time to area on driving appropriately. on that not attention going commitments productivity available fill being which an delivering the put primary they have to to the with the purposely attention Historically to our is other to our utilization that that when us, capacity? are focus

the Now again that so we which start going equation, made our side see strides we how affect that attention turn to we other forward. have many that of to the and is will on front, capacity

Craig Hettenbach

were to the On any I have those investments can would this for Are year? a you Dave. more follow-up bit it little doing other into how you initiatives investments, nice making just frame have and It's reinvest upside revenue is And spend you to able you're more? things already a that some then business. that the of you're there like

Dave Bourdon

would As initiatives. the say would new investments any I the to far not same. as particular themselves, more I of point

to in continue invest across us exit in double performance that of with and improvement that We the aspects XXXX areas as margin effectively we well drive XX many allow scale to can as business drive so margins.

Operator

comes with JP Our from Lisa Gill Morgan. question next

open. is line Your

Lisa Gill

because color were contracting. about rate One, I with want can noted, managed managed you when contracting is et care just thirdly cetera, that, made Dave, Two, seeing us negotiation environment changes about any And is give holding either contracts that around And claims think with I up to an you like due or around DSOs environment value-based comment to type we we care? is managed around initiatives start those managed rates? care around you when it in think have increases. the any what the care annual the your any to you're that care? rate you're current of do care with capitation, with looking then there managed

Dave Bourdon

I'll that Hi, take Lisa, it's Dave. one.

there -- few a there's a So, there. pieces was

our them payors we negotiations we engagement regular of with perspective. having with as all, go are an far first interaction doing the So from as are that payors, --

Some of contracts. them are annual

perspective. Some them are from annual an plus escalator of an one

them, it on already. payors arrangements care the would situation, want far our we the mental more things as anything being that. have prevalent value-based that around not care So, else, depends but value-based entire with around as capitation I interactions of book. and And our I across you like do also we frequent be have early in to than health with point to engaging and rather them bearing, say, value-based quality it's care or would than more access risk stages is some

Lisa Gill

quick Can of maybe Okay. your in is person. and this Great. year? for just the up give us a virtual percentage rest just on you And what then quarter the versus follow expectation the

Danish Qureshi

This I Sure. is that. Danish. answer can

compared So from XX% QX virtual about in QX. virtual a represented our perspective, in withXX% of as visits total visits

and that increased as see return hybrid slow a patient ultimately where demand our footprint So, the said, to trends, how it in for we around sells how strategy trends, our way visits direction. because in-person optimization we it that which think a for about being fast real out, affects deliver That more we that to is than anything it continue maintain. differentiator where the to model of to key in we trends and is what continue care, and estate want to in we agnostic remain it us,

Operator

William with Daniels Ryan from comes question Blair. Next

line Your is open.

Jack Senft

my Thanks question. on for taking this Hey for Yes. quarter. guys, Ryan Jack Congrats Daniels. is Senft the

older appreciate select differs this or the second dive a is a But the already outcomes process part out too specifically, this this is So, And only with -- the it included how this from for care group? just on of informed clinicians. the deeper is to the measures rolled front can clinicians. out or I launch rolled what are like Thanks. you nationwide program then, new into comments program for little maybe on clinician the

Ken Burdick

single more from Actually, acquisitions not we of effectively. it rolled It's them this harness if is had that's always power nationally as approach been us doing LifeStance, haven't that's to data consistent. Thanks to of assessments, for things they a but the we at question, Jack. that allow way done doing and program. going lots nationwide as the to out the It's transition

it's then done And hopefully of the to clinicians to-date, work structured inform XXX,XXX making in we we analyzing these helping a have we're clinical of and the our the that inform the about already industry still but sure and efficacy very of and practices patient assessments protocols. more to discipline stages, and best early way helping are just

Jack Senft

consolidation noted as the Thanks. others markets are are additional are on you too, good --sorry, are oh I'm you those quick centers a curious same the same within within consolid -- center that Understood. candidates. consolidating, consolidation the god, if front, that as follow-up And if or that curious others markets those others are -- markets Thanks. are if are sorry my as are new identified? that the you those or that

Danish Qureshi

take I will So, this Danish. is that.

or closures markets the are may we in this within the at way that have So, the initial may new XX are states same have some Others looked had was, and markets. them had with in. that we XX, sort The the They space. initial of what the suboptimal all build, were acquired the would quality most the in-person and of the characterize in either utilization footprint, as obvious I that layout, were that the was importantly, closures. the locations of of

say, go is next broadly one there The and visit of largest to it's this we some consolidate volume single With clinician being centers a more reason. rounds, proximity these and in-person looking compelling may every can but not patient box, workspace. that where both check centers to and traffic utilization other

same mixed So, be may question, some bag cases, in initial specific of is, answer the may to that brand that not new XX, other cases, in market. were they part it's occur your which in markets the a

Operator

Next from with question comes Caliendo UBS. Kevin

Your line is open.

Kevin Caliendo

for Thanks Thanks. question. taking my

bit a are But heavy Just a you of some at above? love I of least the of quarters you in months And enhancements, be detail have two this to two of operational plan? plan sort margin done. about hear to you initiatives those, XX lot is next again, with year going enhancements, of revenue operations. you lifting what share the the of little a terms of on improving are more sort know the talk all into can here mentioned forward. You updating, maybe could enhancements,

Ken Burdick

really Sure, is Ken. to clear. be Kevin. This I want

the foundation continue are fortifying we of have of There intention is can only to a literally strong quarter pleased every While progress, two the where we are grow way we company. and through. we with that year investment so the build phase a

us would the none at decide -- heavy is declare So, done. would of lifting LifeStance that

declaring there as heavy said months. progress the victory. over that lifting steady, is remains from next are We are we Having -- XX plenty that, view far I but and the solid of

question, it doing above. the your our costs, revenue. leverage, to performance. of improved part we To of But we administrative work doing going will operating improve is is operational second also that are really will The the are improve will. things that all if That you drive

which talk are it's we the a incredibly rock taking years Board two of we it growth we to So, bit grow invest pause across are for as why business, foundation we going that's a transformational upon and taking because an to have so about and forward. high solid a that just

Kevin Caliendo

is A be of the, enough to needs currently your quick done Just follow-up, being where like? in terms in advertising sort its dynamics demand network to to services that demand you is of that you I think schedules and the and or understand outreach is or if where like, just patient any you for fill might. there additional heading? the Are trying or are of traffic finding

Danish Qureshi

is Danish. this Kevin, take I can Hi, that.

general perspective, in patient point a as outstrip an starting demand So, supply. from industry

based well for health general, demand LifeStance overwhelming country. the on of positioned in are across So just mental all regardless we the services

Ken Burdick

That's right enough appropriately that obviously, two the as through primary to our place offices our that making is or demand business to capacity with the execution appropriately coming of clinicians' our funnel that then bottom as of that which marketing awareness, we're care focused. we visit with convert all the feel efforts, of presence top fill right-sized. sure that the now we takes the local of development is include the completed well really compared and But to of said, operational Now, as where top fill and to online have overall brand our the the increasing that and our patient funnel, levels that direction and the middle demand funnel. relationships organic being

Kevin Caliendo

Do guys in that that do it, we talk brand guys love about gets you it's favorable. ever I your where way? you about know setup think number supply demand that as think going the about talk expect awareness your your think you penetration how to the resources I direction gets a it going don't trend you forward. when you to allocating about you easier think that Do market on in where remains CAC it the about just understand forward? go industry is you But a for are think Meaning gets as better others now, I'd lot. better?

Ken Burdick

Yes.

organic always have from the acquisition. been focused pertains very we the of Company, to it beginning So, patient as

we So, our a only regularly discuss CAC spend. or something CPA is it minimal of is because not such total amount that

So statements. to aggregate discussed we spend look we've it at if on kind totality, In of everything "marketing." revenue public of in on you like previous X% than related less

the just is is of And actual paid, have. X%, activities the the headcounts, so which a that teams, they that not that is fraction related that

of an of have as a the organic because of and to primary brand filling direction as model efficient and acquisition funnel. as to awareness on continues levels the we drivers favorable in we pertains our increasing the So focus both move top it of patient that demand, extremely

Operator

question Sachs. Next comes Perse from Goldman Jamie with

open. is line Your

Jamie Perse

sticking with here you start. Danish, to

and just much on to you wage making to and lower the fill the piece, you're more driver changes give What packages improve to clinicians? for And productivity your maybe other the And or levers half. to fill the accomplish incentivizing a have on is the that? feasibility to time you compensation time. their capacity, any there the that of of through which pull that's mentioned do you environment more outperformance obviously then, clinicians is front thoughts conversions room ability in key How to first been Just cancellations? first

Danish Qureshi

Yes.

thanks question. the So, for

filling clinicians us commitments was in focus full and right they time the patients. giving caseload making were are You on delivering with our first sure by a we're started as for us to I that appropriately our very of COO. that The

the utilization strides the made the down against heart We've everything cuts third so, And given it. our cancellation that with of to of put rates front concerted equation. about by we've talked we've we about a on being have that since example side productivity in that effort the specific a very cutting significant

continue is for to right side the there improvement is further though other of the have could There like capacity. areas to front, of and we now understand our we equation, on a that utilization our a with levers the are where themselves to we're number turn time leadership teams feel So start which the in we incentives we what are and that pull attention the spot clinicians we can discuss to to do. to starting

early want of to program we've But capacity in later give a their strategy on once starting around -- made focus that of kind we'll more it's back was in filling there a those clinicians our more productively. around path time of it. our enough to that and process Things more want LTIP create us concerted an of thought that come and incentives long-term to more developed of that their initial that like

to come so, when back similar there. to we clarity forward we and have evaluate And opportunities we'll continue you all we'll other go as

Jamie Perse

for question. just a then financial Thanks Okay. maybe And that. philosophy

specific sounds are there's investments being increasing maintained. You're like not you're incremental. is EBITDA that revenue contemplating It guidance,

flexibility. You mentioned just maintaining

invest on that that or So let operations to a of about think that flow potential or through? you. there reallocate top would you just how or philosophy you'll incrementally the accelerating have kind the great. when in Thank is Just is you just any that stronger be thoughts line,

Dave Bourdon

just generate we Dave. Jamie, that is Yes, as it's which XXXX, investing. I'll we are for one. take you flexibility, it's described, Basically, what

that There's multiple continue we're through there. flexibility. new initiative when any if investments XXXX, We more-smaller and there, an expect not generate in through in investment I it's to that we financial big And list have working areas.

As we margin making leverage be improvement, we we into in will and 'XX. but move XXXX, investments also operating still will see

are stated and years. investment As Ken 'XX and has foundational 'XX

Operator

Tanquilut comes from our Brian have do question we with And last Jefferies.

line open. Your is

Brian Tanquilut

to in that Ken, mean, Good thinking think I increased network an Administration whether for on, LifeStance question how competition? open the health, do it's or about morning. you the maybe more door you opportunity, push how behavioral a just Biden coverage for are force does that affects

Ken Burdick

I'm Well, supportive. entirely

President between treatment what I exacerbated the the is highlighting we before all demand the It for and Biden supply. disconnect pandemic it and is of He health pandemic, but have think elevated existed what, mental doing. sort the the observed.

we whether fully a society. we're the frankly, about talking responding realizing American parity So talking of the are changing about or to condition,

no that of it through think I will And demand. to we're and where translate as navigate positive seeing period is there a we unprecedented be to sort try is indication demand going subside.

think So, of brings model if we we way because a that don't good built to and competition We ways that's have competition. we the the health, company people to on access because and better think a positive. continue we find We more execute. mental expand are a it to are good that company we lack

Brian Tanquilut

the willing eliminated. you other to give And that payors, the you maybe with increases clients and Appreciate I the or that. been that, XX% then you need to about justify think are called remaining through to keeping that are who of any contracts them side calling Are fact seeing contracts flow think the rate you on panel? as the we you have

Ken Burdick

an initiative. ongoing Yes, discussion that's ongoing and

Certainly, increasing payors way important. it's in which As we said rates is for in mutual our important. our the benefits. the it's really terms, are with we also and level of partner engagement the prepared But remarks,

partner. good a be to want we So,

the strain treatment, and and our access mental members patients We to stress in minimize decision and able want health which they as their for to courageous be itself. is a

payor ongoing process to the be going from an the to process, payment everything and barriers removing including is credentialing So with partners. just reimbursement dialogue our

for The reduction done in many reasons. contracts payor was

reason first to simplify we were burden. because The administrative looking our is

patient this literally and on his said contracts where in very first had as very, seeing impact were And because we're these tranche, visit so little de visits Danish minimis remarks, activity. revenue

interests we best of as that the that our Now, and of going our have to sure go payor best forward review relationships further, this the interests our fit we'll sort patients. continue we make and

volume, looking we'll terms So, be at of be looking at rates, the we'll looking relationship. the be at we'll

Brian Tanquilut

credit follow-up, thing? Dave, just a about Maybe drew that? thinking the one XX quick timing you be just should that we How of facility. Is

Dave Bourdon

timing draw was was the on related We we DDTL, so a to thing, accessed flexibility, acquisitions cash early put balance was that more Yes, the And in again, just to term sheet. facility. maximize that that year. that funding, delayed our the our loan were

Operator

There conference time. today's This Gentlemen, further and this call. concludes session. the at are no answer question concludes this questions

You may now disconnect.

LifeStance Health (LFST) 9 Aug 232023 Q2 Earnings call transcript