DocGo secures contract with major NY academic medical system

Published 06/08/2025, 12:42
DocGo secures contract with major NY academic medical system

NEW YORK - DocGo Inc. (Nasdaq:DCGO), a provider of mobile health and medical transportation services with a market capitalization of $138 million and strong liquidity position, announced Wednesday a new contract with one of the largest academic medical systems in the New York metro area. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt and a current ratio of 2.44.

Under the agreement, DocGo will deploy its proprietary transportation management software to centralize discharge management across the health system. The company will also provide dedicated basic life support ambulance services at select facilities through its Ambulnz brand. While the stock has seen a significant decline of over 71% in the past six months, InvestingPro analysis indicates the stock is currently undervalued.

The services began in July and will increase throughout the current quarter. DocGo’s platform will coordinate all discharge transportation and vendors while integrating with the health system’s electronic health records, allowing facility staff to order transportation directly from patient charts.

"The consolidated, centralized transportation data offered by DocGo’s software platform is the foundation for quality improvement initiatives on patient throughput, transportation timeliness and other key metrics," said DocGo CEO Lee Bienstock in the press release statement.

The system consolidates data from all transportation vendors into a single warehouse, enabling unified reporting and analytics. Patient demographics and insurance information are automatically pulled from patient records.

DocGo’s technology aims to enhance patient flow through timely transport and increased visibility into transportation arrival times. The company’s platform is designed to help healthcare facilities improve operational efficiency in patient discharge processes.

Based on a company press release, this contract represents an expansion of DocGo’s services in the New York metropolitan area healthcare market. For deeper insights into DocGo’s financial health and growth prospects, including 8 additional ProTips and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.

In other recent news, DocGo Inc. reported its first-quarter 2025 earnings, which fell short of expectations. The company posted a revenue of $96 million, slightly above BTIG’s estimate but below the consensus forecast of $104.2 million, and an adjusted EBITDA loss of $3.9 million, which was significantly lower than anticipated profits. Furthermore, DocGo revised its revenue guidance for 2025, reducing it from $410-$450 million to $300-$330 million, citing uncertainties in the municipal channel. BTIG subsequently downgraded DocGo’s stock rating from Buy to Neutral following these results. In addition to financial updates, DocGo secured a contract to provide community vaccination services for San Diego County, aiming to improve healthcare access in underserved areas. Additionally, its subsidiary Ambulnz won a $3.4 million contract to offer medical transportation services to the Albany Stratton VA Medical Center. During its 2025 Annual Meeting of Stockholders, DocGo announced the election of three directors and the approval of executive compensation.

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