Daco at TD Cowen Conference: Proactive Healthcare Strategy

On Wednesday, 05 March 2025, Daco (NASDAQ: DCGO) presented at the TD Cowen 45th Annual Healthcare Conference, showcasing its proactive healthcare strategy aimed at reducing hospital admissions and improving patient outcomes. While the company reported a strong financial performance, it also highlighted challenges such as investments impacting short-term profitability.

Key Takeaways

• Daco reported $120 million in revenue for Q4 and $616 million for the full year.
• The company achieved over $60 million in adjusted EBITDA for 2024.
• Transitioning from migrant contracts to population health programs.
• High patient satisfaction with a Net Promoter Score of 86.
• Strategic investments in care gap closure and geographic expansion.

Financial Results

• Q4 Revenue: Approximately $120 million
• Full Year 2024 Revenue: Approximately $616 million
• Adjusted EBITDA: Over $60 million for the full year
• Profitability: Impacted in Q4 due to investments in infrastructure and care gap programs
• Migrant Programs: Contracts with New York City’s Housing Preservation and Development Department sunsetted
• Gross Margins: Remained consistent year-over-year

Operational Updates

• Strategic Shift: Moving from migrant contracts to steady-state population health programs
• Care Gap Closure: Clinicians trained to address over 35 care gaps at home
• Geographic Expansion: Based on customer demand, using anchor customer approach
• Technology and Infrastructure: Proprietary platform to optimize clinician utilization
• Patient Service and Satisfaction: High Net Promoter Score of 86

Future Outlook

• Continued Investments: In care gap closure programs and infrastructure
• Geographic Expansion: Plans to expand into new states based on customer demand
• Technology Licensing: Exploring licensing the software platform to hospital systems
• Growth and Profitability: Expected margin improvements throughout the year

Q&A Highlights

• Business Model: Described as the "Amazon of healthcare"
• Technology: Proprietary platform for efficient patient management
• Patient Diversions: 65,000 hospital admissions diverted, saving $250 million
• Patient Service: Focus on keeping Medicare Advantage star scores high
• Care Gaps: Working on adding more care gaps to services

Daco’s comprehensive approach to healthcare delivery was evident throughout the conference. For a deeper dive into the company’s strategic insights, refer to the full transcript below.

Full transcript - TD Cowen 45th Annual Healthcare Conference:

Ryan Langston, Senior Analyst, TD Healthcare: It’s the

Lee, CEO, Daco: same. Come on. It’s the same. No, only four hours. Okay.

Three and a half. It took me three and a half last night. Where do you want me to sit here? Wherever you are. Perfect.

Ryan Langston, Senior Analyst, TD Healthcare: All right. Well, thanks everybody for joining us, forty fifth annual TD Healthcare Conference. My name is Ryan Langston. I cover Senior Analyst for Healthcare Services, Providers and Managed Care. Happy to have Daco with us, have the CEO lead me in stock.

Very quickly, Daco is an innovative care delivery platform, includes mobile health, remote patient monitoring and other ambulance type services. Daco provides services in nearly 30 states and across The UK, fleet of over a thousand mobile units in the field and has had several million patient encounters. So Lee, thanks for being here. Wonderful. Thank you, Ryan.

It’s great to be here with you. Awesome. So maybe a good just place to start. You’ve been, I think, CEO now for about a year and a half, kind of came in as COO. Maybe just maybe give me a reflection on your time here and what it’s meant, What you’ve been able to do and then we’ll get into some of the nuts and bolts.

But I’d love just kind of a recap over the past, call it, year and a half as you’ve taken the reins.

Lee, CEO, Daco: Yeah. It’s been very exciting year and a half. Very eventful year and a half. And I think, really as I’ve gone through as as, you know, leading this company, which I’m so excited to be leading the company and, you know, it’s really been clear to me a few things. One is, this country is very sick.

Very, very sick. And I think The US spends an enormous amount on healthcare. I’m sure there was a common thread throughout the entire conference. 20% of GDP on on healthcare. We have nothing to show for it.

And we saw, as you mentioned, we saw one point five million patients last year and it’s very clear to us that there are patients in in our country, there are neighbors of ours in our country that are not being served by the current healthcare system. They’re getting sicker and sicker. The US will see over thirty five million hospitalizations this year. And the only way to target and really, dare I say it, make America healthy again. The only way to do that is to really, target the hospital admissions.

There’s so many patients that are being admitted to the hospital or ending up in the emergency rooms and that’s where they’re the most expensive on the system. And to me, over the last year and a half, I’ve really been emboldened to see that we’ve been helping payers and providers and, really municipalities essentially avoid unnecessary hospital admissions. And And that’s what’s made me so excited and I think the opportunity is so enormous in front of us. We’ve helped divert over 65,000 hospital admissions since we really started working on this in earnest. We saved the system over $250,000,000 and I think we’re just getting started.

Ryan Langston, Senior Analyst, TD Healthcare: That’s great. Maybe kind of just wrap up, just reported of course last week. Maybe just give us a don’t have to go through the whole call, but just kind of a recap of the fourth quarter and maybe just kind of 24 in general, maybe how you started, how you ended and then we’ll move on from there.

Lee, CEO, Daco: Yeah. So in the quarter, the quarter that ended Q4 of last year, we did about $120,000,000 of revenue. The company was profitable on adjusted EBITDA basis for the full year to give a sense of how we ended and where we started. For the full year, we did about $616,000,000 of revenue, over $60,000,000 of adjusted EBITDA. As the year went on, we continued to invest pretty heavily in our infrastructure and our care gap closure programs and our ability to go serve more and more patients in the home.

And so, that showed up in our profitability in q four. And really, we’re gonna continue to lean in. Excuse me. We’re gonna continue to lean into those investments. When we started last year, we had a very small number of payers working with us.

We had a list of 2,000 patients to go and serve those patients and close care gaps in the home. We ended the year with over a half a dozen payers giving us lists over 700,000 patients. So again, we’re very enthused and emboldened by the opportunity. There’s a tremendous number of patients in this country that need access to care that they’re not getting, and so we invested pretty significantly over the course of the entire year, and definitely into Q4. And as we started Q1, we’ve continued to lean into that investment and we see a big growth opportunity in front of us.

I would say another big theme of last year, which I know we should talk about so investors know about it, is last year really we were serving a tremendous amount of migrant population asylum seekers. We have very large contracts in New York City to help with the influx and really the humanitarian crisis of people coming to the city needing medical care, health screenings, shelter. And at the end of last year, we wound down completely our contract with New York City’s Housing Preservation And Development Department. So we’re out of that completely. And this year is going to be a transition away from those migrant contracts into more steady state population health programs.

Ryan Langston, Senior Analyst, TD Healthcare: On that investment you talked about, how and maybe you can’t characterize it sort of in one swath, but just how do we think about that? Is that sort of a pull forward or maybe some cost that maybe you’re going to incur in ’25? Or is this just as you sort of sat back structurally, you needed these types of investments and ’25 would be sort of incremental on top of those investments?

Lee, CEO, Daco: Yeah. I think the latter. I mean, first off, there’s a couple of dynamics here. So one is as we’ve sunset the migrant programs, right, the revenue we’ve sunset that portion of the revenue. And so, with it, we had some SG and A leverage that we’re gonna have to work through here where the revenue, even though it’s it’s revenue that I think investors are more excited about, without the migrant programs, we have some SG and A leverage that we’re going to have to solve for here throughout the year.

Our gross margins were very consistent. So as we were sunsetting these migrant programs, our gross margins, you know, stayed year over year at the same level. So we’ve been we’ve done a great job with that. I think we’ll have to grow into some of this SG and A leverage here. So that will, impact profitability in the sort of early quarters of this year.

And then we’ve also invested in the care gap closure programs in our infrastructure to be able to go serve patients in the home. And we’re gonna continue to invest in that. What does that mean? When we send the clinician into the home, we like to be a Swiss army knife. We like to be able to close as many care gaps as we possibly can with that one visit.

So our clinicians today are trained to close over 35 different care gaps at home. That could be a diabetic retinal scan. It it could be a bone density scan, it could be a colon cancer, screening, med titration, vaccinations, annual wellness visits, the list goes on. And so we take great pride in our clinicians being able to go into the home and really be able to close as many care gaps as possible. The team was just bragging to me, last week we went and did in home visit for a patient, chronically ill patient.

We closed six care gaps in one visit. So being able to do that offers a tremendous value to the health insurers that we’re working with not to mention how spectacular it is for the patient and the patient’s health. So we’re going to continue to invest into that. The training for that is pretty significant for our clinicians before we send a clinician into the home we have them shadow a clinician who’s been doing it for a while. So there’s a logarithmic expansion that happens as we have more clinicians, more people shadowing.

There’s more investment there. So we’re going to continue to invest in that. I think we’re going to continue to invest in more geographies. I know, Brian, one of the things we’ve spoken about, you and I, has been how do you decide which geography you go to? And for us, it’s pretty clear, you know, we have our geographic roadmap and our product roadmap.

We don’t decide that. We let our customers decide that. Right? Our health plans and our health insurers, they say we really need you in this part of the country. We really need you in this part of the state.

We really need to solve for this care gap. And so we add that geography, we add that care gap to our product roadmap and we invest into that in that expansion. So we’re going to continue to do that. Absolutely, we did that in Q4, which showed up in the financials as you mentioned, and we’re going to continue to do that in the early parts of this year.

Ryan Langston, Senior Analyst, TD Healthcare: So you wound down a couple of these contracts, talk about New York City. Does that open up capacity to sort of backfill some of those employees that were maybe managing that business now that they can kind of be diverted and go do other things maybe you didn’t have the capacity to do. Is that fair to think about it like that?

Lee, CEO, Daco: Oh, absolutely. I mean, we we have we have an enormous amount of social workers, case workers, nurses that have worked on providing the medical care for that population that, particularly in New York Metro Area, that, we want to be thoughtful about transitioning that staff to new opportunities when possible. And so, the last thing we want to do is sunset that, lose that staff, and then we have a big and so we’re trying thoughtfully on how to transition from those migrant contracts into some of the other programs that we’re developing right now that we know there’s a need for and giving our clinicians and then also our wonderful management staff the opportunity to transition to the next population that needs our help. And, you know, that’s what we’re working on right now.

Ryan Langston, Senior Analyst, TD Healthcare: Got it. On the new state expansion, let’s say a payer comes to you and says, hey, we want you to go into this new state or this new geography. Just from my sort of simplistic view, it would seem there’s a lot of upfront investment that has to go into that, whether it’s vehicles, whether it’s hiring, as you said, getting those folks up to speed, putting in a regional management structure, all of that different stuff. So how do we think about that if say a payer comes and says, hey, we want you to go into the thirty first state or the 30, you know, the thirty second or whatever. How do we think about those upfront investments?

Do they share that with you or do you just take that on and just kind of make sure that, you know, there’s enough density there to make that back?

Lee, CEO, Daco: Yeah. I think it’s it really comes down to, as you said, density and then also the volume that that payer can give us. So I get I use California as a great example, right, which we did in q four of last year, which again, we shared with investors on our earnings call last week. We started with an anchor customer in California, And they gave us a tremendous amount of volume, which allowed us to grow and expand into that market. And we set up new bases from Sacramento all the way down to San Diego, Five new bases for us to launch our services from to serve communities around those basis.

And then we filled that in with additional contracts with additional payers like we shared L. A. Care, which is another very, very large payer provider in the Southern California area. We just signed an agreement with the Inland Empire Health Plan also in California. So now we have, we came with an anchor customer and we filled out the other volume and geography with additional customers.

So now our efficiency just continues to improve as we add more and more customers in that area. And that really is our model with how we think about expanding. We really will expand with an anchor customer. They have the density and the volume to support that expansion. So we feel good about that and then we are able to then offer services to all the other health plans or hospital systems that also need the same exact services in that same market and we get more density.

We get even more density. We get even more capacity, efficiencies and then the margins just improve from there. And that’s kind of the approach we’ve been taking and we will see those margin improvements as we go throughout this year and certainly into next year.

Ryan Langston, Senior Analyst, TD Healthcare: You know the business model is at least from an investor perspective, I’d say fairly unique. There’s not really a lot of transport type businesses. I mean, I’d have to go back in 02/2008 to the teens. We talked about AMR, right? With MCARE, American Medical Response, air methods.

Right? How do you sort of explain the business model to sort of the investor community? And maybe who would you benchmark yourself against, you know, someone says, hey, I see this DACO company, I want to learn a little bit more about them. How do we think about that with maybe less peers than maybe some other sort of, subsectors in healthcare?

Lee, CEO, Daco: Yeah. And I think that’s something we have to do a better job of as a company. I think absolutely helping investors understand our business, what our strategy is, something it’s gonna be a big focus of mine. It has been last year, but even more so this year because I think there’s a lot of tremendous things the company is working on. The patients absolutely love the service, which we’ll talk I hope we talk about because our net promoter score with our patients is 86, which in health you know, anything over 70 is deemed world class.

So, you know, we know we’re onto something here. There’s a huge need for it and patients are really benefiting from it. So I think we have to really crystallize that message a lot clearer for our investors and that’s something that I’m gonna be focused on in the coming months here. But the way to really think about it is we bring care to patients that don’t have good access to care, and we bring it in a mobile fashion. When that patient needs to be brought to care, we will transport them to to the facility that they need to be taken to.

And we built a proprietary tech platform that allows us to manage all of those vehicles in the field. You mentioned that we have about a thousand mobile units in the field every day. And it’s a symphony, I call it. Right? You have the right vehicle with the right clinician, with the right skill set, with the right training, with the right licensure, with the right diagnostics.

All, most importantly, for the right patient need. And how do you most optimally use that clinician so that he or she can see the most patients in that day with the highest quality. That’s what our tech platform does. And so the way I I think about it is we’re a mobile healthcare company. We’re delivering healthcare.

It’s very cliche to say, but you know, we we essentially are the Amazon of healthcare, the Uber of healthcare, so to speak, where we’re delivering care to where it’s needed and we’ve built a tech platform to allow us to do it. It’s very cliche, but that’s the way we think about it, where we’re bringing care to patients. And when they need to be brought to the a different location, we do that. And the only way to do that, is using basically vertically integrated tech platform like the way we have it. It’s our clinician, with our vehicle, with our licensure, with our diagnostics, all serving our patient with the health system or the health plan, and we control those resources in the field.

So it’s not some sort of jump ball and it’s not some sort of capacity issue. We’re optimally stacking those patients in a way so that we can see the most. And the way I explain is, if we see two or three patients in a day, we lose money, maybe break even, how do we get to that fourth, fifth, sixth patient and using our tech stack to be able to do that is really the crucial component of it. And then if we can see that fourth, fifth and sixth patient, we can make more money. We make profit and then we take those profits and then reinvest again into serving more and more patients.

Ryan Langston, Senior Analyst, TD Healthcare: You mentioned it twice, which is good because it was my last one. Technology, right? So you’ve spoken in the past, I know about above and beyond using technology internally that you have licensed to that software, I believe, out to some folks. And I guess, if you build a tech stack and you have this proprietary technology, is there a chance maybe strategically you don’t want to go into 50 states, but you could potentially sort of monetize that software and license it and maybe build that on more of a grander scale. Is that a potential part of the strategy?

You know, again, just so you don’t have to go into all those geographies?

Lee, CEO, Daco: Yeah. I think so one of the unique pieces for us, and we hear about it, you know, our our our chairman, Steve Klasco, he’s a former, CEO of the Jefferson Health System who is a close customer of ours, close partner of ours. And he he said it really interesting to me. He says, you know, there are so many companies going and selling software or digital tools to hospital system CEOs. So many, right?

What sets us apart is we’ll sell you the software, we’ll provide you with the software, but we also provide you with the boots on the ground with which to effectuate that software and make it useful in the field. And that is a really difficult thing to do, right? We have to have those 5,000 clinicians. They have to be well trained. We have to have those vehicles.

You know, I say it, you know, I have four children of my own, but all those vehicles are children too. They have to come home at night. They have to be cleaned. They have to be tucked in. Some of them actually go back out, you know, for the overnight shift and, they have to be maintained and then they have to be deployed again in the morning.

They have to go out again. So that part is not easy. I’m not saying the technology piece is easy, but the fact that we’re able to do both is a big differentiator. I think it’s possible that we will license the software into states that we don’t have boots on the ground, that we don’t, deploy our services. That’s something we’ve been asked to do.

I think we’re being very thoughtful about that. We don’t necessarily want to empower a competitor. That’s a big differentiator for us. We don’t want to empower somebody in a market that we do plan on expanding into. And so we’re going to be very, very thoughtful about that.

We do have a pilot in development right now to license our software to a hospital system where we know very unlikely that we’re going to be deploying our own physical services to. And then we think there’s an opportunity for us to expand it from there. A lot of hospital systems say they choose us, we’re not the cheapest provider, we’re the highest quality and with that comes oftentimes a bigger price tag, but they choose us because the software just allows them to optimally manage the patient flow and the bed management and everything, which we didn’t talk about. But, that’s a big differentiator for us. I’ll just give a great example.

One of our large health system partners who’s a big customer of Epic goes to Epic and says, we really like you to integrate with this dot go, tech platform. So directly from the patient’s chart, a discharging nurse can click a button and they can have a us, an ambulance come and pick up that patient. Now, why is that interesting? First off, the nurse knows exactly when to get that patient ready so that we when we arrive, we’re super efficient. We can take that patient to the next destination.

The intake team at the hospital knows exactly when that bed’s gonna be available for the next patient. Right? The housekeeping staff knows, okay, now it’s time to come and get that bed ready. So and then that patient doesn’t have to stay perhaps if they don’t have if they don’t know when we’re arrive if they don’t know when the medical transportation’s arriving, that patient may have to stay an extra night in the hospital, which the patient doesn’t want and the hospital system doesn’t want. So, that confluence of that tech stack, it’s not just about getting a patient from point A to point B.

It’s about getting a patient from point A to point B safely and with great quality, but then also making that bed available for the next patient. And if you can use the beds you have more optimally, you can serve more patients and you can run your hospital a lot better. One hospital system CEO was telling me that, it costs $3,000,000 to bring a new hospital bed online into the system. To add one more hospital bed into the system cost $3,000,000 for the average hospital. So either you have to do that or you can use the beds you have more efficiently and then you don’t have to spend that money and obviously it takes time and capital to add hospital beds to the system.

Our all our whole goal is to help you use the beds you have more optimally. And hopefully, perhaps a patient that shouldn’t even be in the hospital doesn’t even need to use that bed, so you don’t have to add any more beds that are necessary.

Ryan Langston, Senior Analyst, TD Healthcare: We’ll get to patient service and some of that in a second because I want to touch on that. But what you just said is kind of interesting and you go back to something you said, 65,000 patient diversions, I think I wrote down. Yes. When I think of how healthcare has just been run typically, we’re in a value based care environment, but it’s reactionary. A lot of times fee for service, you have to do something to get paid for it.

Lee, CEO, Daco: Yeah.

Ryan Langston, Senior Analyst, TD Healthcare: And I think where you’re coming in going to the patient’s home, you could call that preventative medicine, right? Value based medicine. So, but you know, 65,000 diversion sounds great, but how how do you sell that and your your services to a municipality, a health system, a payer

Lee, CEO, Daco: and

Ryan Langston, Senior Analyst, TD Healthcare: say, hey, this is we’re not gonna go from fee we’re gonna go from like fee for service to preventative and here’s the data that we can show you. So how do you lay that out to your potential customers?

Lee, CEO, Daco: Yeah. We like to call it people are starting to copy us right now, but we call it a proactive healthcare revolution, right? Being proactive. You spend your whole life, everyone tells you from from an early age, better to be proactive than reactive. Be proactive, you know, push.

And so our whole goal, we tell it it’s the culture of the company, and it’s really the service we’re espousing, which is really proactive healthcare because we feel like if you can intervene ahead of an emergency, it’s way better for the patient, it’s way better for uncle Sam, they saves a lot more money, it’s way better for the payers, it’s way better for really everybody in the in the system. It’s the only way that you’re gonna get that 20% of GDP trending downward. That’s the only way if patients are healthier. So I think that’s going to be the next revolution that happens here in this country. I think the new administration, I get asked all the time, it’s obviously a very, very timely topic.

People say how’s the new administration and what they’re doing. I think this new administration wants to cut costs and the only way to do that is to have patients be healthier and have the have the clinicians, have the physicians, have the providers part of the outcome and be incentivized for the patients getting healthier, not sicker. Like you’re saying, every every diagnostic you do, you make more money. That’s the patient wants as few diagnostics as possible, not more.

Ryan Langston, Senior Analyst, TD Healthcare: So

Lee, CEO, Daco: how do we get the how do we incentivize the whole system so that the patient is healthier and needing fewer tests and fewer treatment? So that’s that’s our plan. So I give you a great example with LA Care is one of our customers. We started with a pilot. We started working with them eighteen months.

I mean, these deals take time. These programs take time for the exact reason you were just explaining Ryan, which basically we had a cohort of patients that were being discharged from the hospital and we knew that this cohort of patients that have a very high likelihood, it’s called the LACE score. The basically, they have LACE scores of eight, nine, and 10 on a scale from one to 10. And LACE stands for length of stay, acuity, chronic condition. So these are sick patients, eight, nines, and tens.

They have a very high likelihood of being readmitted to the hospital. And on often on on average, these patients were ending up in the hospital five times a year. Right? So literally every other month, practically, they’re in the hospital. So as the patients were being discharged, they’re being discharged into our program, And we go and we check-in on those patients every week and making sure that their transition of care from the hospital to the home is going smoothly and we’re closing various different care gaps that are happening.

And then LA Care said, we gave you these eight, nines, and tens on the LACE index. We didn’t give you these eight, nines and tens. And the cohort we gave you, ended up in the hospital 62% fewer times than the cohort we didn’t give you. And, it took some time to get that data. And so now we have this great case study and we have others, but we had now we have this great case study.

It says, look, the the work we’re doing is helping the patients. And if we’re helping the patients and we kept and keep them out of the hospital, obviously, they’re much better off as, you know, as mothers, fathers, and children for their loved ones, but then also it’s much better for the system. It’s better for the payer. It’s better for Uncle Sam. It’s better for, overall the system.

So that’s the way we see it. And now by the way, the cohort we have is they’re going to get a much bigger cohort because it’s working. So and then we’re going to get invest into that. That’s kind of the evolution of the company that you see happening right now.

Ryan Langston, Senior Analyst, TD Healthcare: That’s great. That’s pretty cool. Patient service. You and I have talked about this before, but my simplistic example is Medicare Advantage star scores are always important, but ever more important now, getting harder and harder to achieve those four and four point five stars. I envision that you can play a part in that to keep those star scores up with an MA contract.

But how else do you view patient service and sort of adding value not just on the cost side, but on the quality side and promoter side and all of that? How does Docco kind of fit into that continuum?

Lee, CEO, Daco: Yeah. I mean, so first off, we have something inherently going for us, which is patients want to be at home. In any industry, it’s it’s insane to think that the healthcare industry, you know, is like last to the party on this. Any industry, if you meet your customer where they are, they’re happy about that. You make them come to you in a in a inconvenient way, they’re not gonna be happy about it.

So frankly, just right off the bat, it’s not like some genius idea that we’re coming up with. If you meet your customer, in our case, a patient, if you meet them where they are, they’re just inherently happy. And and they prefer to do that. And I’ll give a personal story in a second. But, so that’s going for us right out the gate.

And so when we go to the home, the patient obviously very oftentimes, why are they not going to see the clinician? They have childcare issues, they have mobility issues, they have behavioral healthcare issues. Very often one of the very higher incidence of comorbidity we see is depression in our patients. So, just by going to meet the patients where they are and, and being able to provide them with the care and then we do it in a very innovative way, right? Our vehicle, it starts with the branding of everything.

Our clinicians are well trained. They’re very friendly. You know, our patients, one point five million patients didn’t meet me last year and they didn’t see my smile. They saw they saw the smiles and the compassion of our heroes in our company. You know, I’m not the hero in the company.

The hero in the company are the 5,000 clinicians that are going into the patient’s home and they’re well trained. They have a smile on their face. They’re able to solve the care gap in real time, oftentimes more frequently. And, and we have this whole experience where when a clinician goes into the home, they don’t drape mud into your home. When you when someone comes to your home, that’s a very, that’s a big responsibility.

Big responsibility. We we make sure we put booties on our shoes. The clinician has a whole suite of diagnostics that are available to them in their bag, and and they’re enabled with technology that allows them to solve the patient patient need. I give one great two great examples. Right now, one of the care gaps that we do is a bone density scan.

Now, oftentimes, how would a bone density scan get done? They’re driving the patient into the clinic to provide the bone density scan and then they take the bone density scan in the doctor’s office and they get the reading. That’s great. It actually it works tremendously. For us, it’s a little different.

We go into the home, we do the same bone density scan, we get the reading. But at the same time, we’re able to see that this patient, their home environment is actually unsafe for somebody that has osteoporosis. Loose carpeting, they have to go up and down the stairs. And so now we’re able to provide them more wraparound services. We’re able to code we’re able to document and code things in a way that’s much deeper and insightful than just if somebody came to the doctor’s office and patients love that because we’re trying to address all their social determinants of health while we’re in the home.

And so fundamentally, that’s just a much, much better experience for the patient and that’s why they love it.

Ryan Langston, Senior Analyst, TD Healthcare: On care gaps, talk about it quite a bit. One thing I would think about is, I think 60, is that it? 60 care gaps you can close?

Lee, CEO, Daco: Well, 35 today.

Ryan Langston, Senior Analyst, TD Healthcare: Okay. Sorry, I don’t know where 60 came from.

Lee, CEO, Daco: That’s good. It’s going to take some investment by the way to get to 60. I’m not saying we’re not going to do it, but I think

Ryan Langston, Senior Analyst, TD Healthcare: it’s a team. Anyways, when I think of adding and I think you mentioned to us recently, I think you bought a phlebotomy company to sort of add some, you know, maybe add one more to that list. How do you think about is it a step function? Have you sort of, I’ll say cleared out the easy ones and to get the next five, ten, whatever the number is, you got to make a big investment to get there or you have to buy some more technology or buy a platform or just how do we think about growing those care gaps in terms of what the sort of investment profile looks like?

Lee, CEO, Daco: Yes, I think have we cleared out the easy ones? I think the right way to think about it is we’ve put together a model. We have our own physician’s practice. There are a lot of companies going and doing care gap closures that are, that are doing essentially like what the company we just acquired, the mobile phlebotomy company. They can go in and they can do a set number of care gaps where you don’t need a physician’s practice or a advanced provider overseeing that visit.

And I would say those aren’t easy ones to do, but it but to the ones that that require physician oversight and diagnosis, that is what sets us apart in a big way. And because we have our own physician’s practice licensed in all 48 states, and so that piece is set up for us already. And so a mobile phlebotomist can go into the home and use the diabetic retinal scanner and get a reading. You still need an ophthalmologist or a clinician to read that reading and diagnose that reading, and that’s where we come in. A mobile phlebotomist cannot go into the home and do an annual wellness visit, your typical annual wellness visit, or deliver a vaccination, or do some of the intervention or care gaps that are required by a physician or physician oversight to do.

And so we’ve added those as well, and so we’re able to run the gamut. When we don’t need an annual wellness visit or vaccination, now we’re gonna be able to send the mobile phlebotomist to get that scan for us, and we can do so more inexpensively, and we can do so we can do so, with much with much more expansion happening. But when we do the need the physician oversight we’re gonna send the full you know version of our service offerings so now you start to see us optimize the margins more as we go through send the right clinician with the right licensure for the right patient need we did that on the medical mobile healthcare side with this acquisition of our mobile, mobile lab collection company as well.

Ryan Langston, Senior Analyst, TD Healthcare: Got it. Few seconds left. I’ll ask you the same question I’ve asked everybody. What are you most proud of your time at Daco?

Lee, CEO, Daco: I think I hope everyone’s answering the same answer. For me, really, it’s it’s the it’s the patient, net promoter score and the impact on the on the patient lives that we’re having. You know, not a week goes by that we don’t find a patient who’s at who’s at risk for vision impairment or blindness. Not a day goes by where we don’t find a patient that has open care gaps and if we don’t address it, they’re gonna get much sicker. They’re gonna end up in the hospital.

And so for every patient that we’re able to divert from the hospital, I’m most proud of that. And I and really anybody leading a healthcare company that should be their answer. I I maybe I’d be curious we can get a beer after and see what else other people are saying. But, to me that’s what I’m most proud of. I think we’re only getting started for us for me to be able to brag.

It’s, you know, it’s not even a humble brag. It’s a brag. 1,500,000 patient interactions last year and we’re just getting started. And to see the breadth of services that we’re offering, to see the demand for the product, it will take it will take time to grow it out. We’re transitioning from some of the more legacy contracts into the new frontier for the company.

It will take time and investment, but I’m very, very excited about being able to do that and expand into this in the rest of the year and the years to come.

Ryan Langston, Senior Analyst, TD Healthcare: That’s great. We’ll have to leave it there. Lee, thank you so much. Thanks, everybody.

Lee, CEO, Daco: Appreciate it. Thank you. Thank you. Thank you so much.

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