DocGo expands ambulance services in North Texas

NEW YORK - DocGo Inc. (NASDAQ:DCGO), a provider of mobile health services, has announced a new contract to supply ambulance transport services to a major health and hospital system in North Texas. The subsidiary EMS Direct will offer Basic Life Support, Advanced Life Support, and Critical Care transportation to facilities in Fort Worth.

The contract, which was signed and put into action in under 90 days, highlights DocGo's ability to rapidly meet healthcare demands. "Our ability to scale quickly and effectively is one of our key competitive differentiators," said Lee Bienstock, CEO of DocGo. He added that the agreement will enhance medical transportation availability in Fort Worth and support further growth in the Dallas area.

EMS Direct, under DocGo, is committed to providing high-quality healthcare solutions in Texas, aiming to improve access to medical transportation services in the region.

DocGo's approach combines mobile health services, remote patient monitoring, and ambulance services to deliver care outside traditional hospital settings. Their technology and network of certified health professionals aim to improve patient care and efficiency for healthcare facilities and insurers. Their Mobile Health service supports telehealth by facilitating treatment with a remote physician at a patient's location.

This new contract in Texas signifies DocGo's ongoing expansion and dedication to enhancing healthcare services. The company's forward-looking statements in the press release indicate their strategic plans and expectations for their operations in Texas, though they acknowledge that these are subject to various risks and uncertainties.

The information for this article is based on a press release statement from DocGo Inc.

In other recent news, DocGo has reported a revenue of $138.7 million for the third quarter of 2024, marking a 26% decline from the same period last year. This decrease is primarily due to the wind-down of migrant-related projects. However, the company has shown strong performance across customer verticals and a notable increase in care gap closure programs. The company's CEO, Lee Bienstock, has revised the revenue guidance for 2024 and outlined the company's growth and expansion strategy into new healthcare services.

DocGo has doubled the number of assigned lives in care gap closure programs to over 500,000. The revised revenue guidance for 2024 stands at $620 million to $630 million, with an adjusted EBITDA of $70 million to $75 million. The company has welcomed Dr. Stephen Klasko as the new Chair of the Board and plans to reach a run rate of 1,000 weekly visits by the end of 2024.

Despite a decrease in net income and a significant decline in Mobile Health revenue, DocGo remains optimistic about its future. The company anticipates cash flow from operations to be between $90 million to $100 million for the full year 2024. These recent developments suggest a strategic focus on expanding healthcare services and technology offerings.

InvestingPro Insights

DocGo Inc.'s recent contract win in North Texas aligns with its strong financial performance and growth trajectory. According to InvestingPro data, the company has shown impressive revenue growth of 30.19% over the last twelve months as of Q3 2024, reaching $694.97 million. This expansion into the Dallas area could further boost these figures.

InvestingPro Tips highlight that DocGo's net income is expected to grow this year, which is consistent with the company's strategic moves to secure new contracts and expand its services. The company's profitability over the last twelve months and analysts' predictions of continued profitability this year suggest that the new contract could contribute positively to DocGo's bottom line.

Moreover, DocGo's ability to rapidly implement the contract within 90 days demonstrates its operational efficiency, which is reflected in its strong financial metrics. The company's P/E ratio of 14.65 indicates a reasonable valuation relative to its earnings, potentially making it an attractive investment opportunity in the healthcare services sector.

For investors seeking a deeper understanding of DocGo's financial health and growth prospects, InvestingPro offers 15 additional tips, providing a comprehensive analysis of the company's market position and potential.

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