DocGo at 16th Annual Midwest Ideas Conference: Strategic Growth Amid Challenges

On Tuesday, 26 August 2025, DocGo (NASDAQ:DCGO) presented at the 16th Annual Midwest Ideas Conference, offering a strategic overview that highlighted both strengths and challenges. While the company showcased its robust technology and diverse service offerings, it also addressed the impact of declining non-recurring revenues post-COVID-19. The presentation underscored DocGo’s commitment to expanding its core medical transportation and in-home care services.

Key Takeaways

• DocGo is committed to delivering healthcare at any address, focusing on mobile care solutions.
• The company maintains a strong balance sheet with a net cash position of approximately $100 million.
• Q2 2024 revenue exceeded expectations at $80.4 million, despite a slight dip in gross margin.
• DocGo is expanding its medical transportation business through strategic leased hour contracts.
• The company aims to increase recurring revenue by focusing on care gap closures and virtual care management.

Financial Results

• Q2 2024 Revenue: $80.4 million, surpassing consensus expectations.
• Gross Margin: 31.5%, slightly below internal expectations, with improvements noted in Q3.
• Accounts Receivable: Peaked at $282-283 million in early 2024, with significant reductions in migrant services AR.
• Net Cash Position: Approximately $100 million, supported by a total cash reserve of $128.7 million.
• Core Business Growth: Continued growth in medical transportation and payer/provider services since 2021.

Operational Updates

• Mobile Health Solutions: Offering over 40 services, including mobile X-rays and blood draws.
• Staffing Model: Combines on-site and remote clinical staff for efficient service delivery.
• Leased Hour Contracts: Expanding through partnerships with hospitals to enhance transportation services.
• Market Pruning: Exited underperforming markets like Colorado to focus on scalable regions.
• Technology Integration: Integrated with leading EHR platforms, Epic and Athena Health.

Future Outlook

• Medical Transportation Trips: Projected to grow at approximately 8% CAGR through 2026.
• Care Gap Closure: Patients assigned for care gap closure expected to exceed 1 million by 2025.
• Primary Care Visits: Emphasis on increasing visits to drive patient lifetime value.
• Mobile Phlebotomy Growth: Significant growth anticipated from 2025 to 2026.

Q&A Highlights

• Transport Focus: Predominantly non-emergency medical transport, avoiding 911 emergencies.
• Care Gap Conversion: Aiming for a 5% conversion rate, acknowledging challenges with initial rates.

Readers are encouraged to refer to the full transcript for a more detailed understanding of DocGo’s strategic initiatives and financial performance.

Full transcript - 16th Annual Midwest Ideas Conference:

Operator: For joining us. Our next presentation is Doc Doc Go. Go provides last mile mobile health services and integrated medical mobility solutions. Presenting for the company will be Norm Rosenberg, chief financial officer. And with that, I’ll turn it over to you, Norm.

Norm Rosenberg, Chief Financial Officer, Dotco: Thanks for the intro and thanks everybody for coming out. Again, my name is Norm Rosenberg. I’m the Chief Financial Officer of Dotco. I’m joined here today by with Mike Cole. Mike is our VP of Investor Relations.

Most of you probably know Mike. First, let’s get the safe harbor out of the way. Obviously, we’re going be making some comments here that qualify as forward looking statements. The actual results might differ materially from them. Refer to our 10 ks and 10 Q for a discussion of our risk factors and things of that nature.

Okay. So when you come to a conference like this one, so most of the people that we meet with tell us that they’re generalists, and that’s pretty much the way this conference works. You’ve got a lot of different companies across the entire spectrum of different industries, a lot of different companies that you’re going meet with today. And what we like to do when we come to this kind of a conference and have this kind of a discussion is to sort of boil down our presentation, at least at the outset, to our investment thesis. Why would you invest in Dotco?

Why is it something that would interest you? Why is it something that would interest someone who technically would invest in any of the industries that are out there? So here’s our stuff in a nutshell. We’re a leading provider of tech driven mobile care. We’ll explain in a little bit more detail what that means.

We have a medical transport business, an ambulance business that continues to expand. That’s sort of our basement level business. That was the business that we started with, and that’s the foundation off of which we build the rest of our business. We have a rapidly growing care in the home business. That’s something that obviously is of interest to a lot of patients, of interest to a lot of providers.

We have a technology backbone that we built on our own that allows us to execute. And then when you get into the financial side of things, we have a strong balance sheet that gives us the wherewithal to be able to support the growth. We have a very large expanding total addressable market at TAM, and we have a visionary leadership team that sort of looks at this business as being much more than simply a provider of ambulance services and actually the fact that we are a mobile health provider. Our general mission, our general goal, when we boil it down, we put it in a nutshell, is we want to be able to deliver health care at any address. The idea is that on an increasing basis, health care is being delivered outside of the traditional walls of the hospital or the doctor’s office.

And this is where we come in. So whether we do it on a mobile health basis, where we have clinicians who are going into people’s homes or we do it via the medical transportation business or a standby business that we offer at sporting events or things of that nature, we are providing care outside of the traditional areas. We’ve got about 3,000 clinical staff. Now that includes clinicians of all different sorts, including EMTs. We have about 1,000 mobile health vehicles, which is ambulances and other vehicles that we use both here in The U.

S. And The U. K. To provide the services. And then we have, and there’s some math behind this, the hundreds of millions of dollars that we’re saving by getting keeping people out of the emergency room.

One most of expensive things within the overall health care industry, which is rife with overexpense, is the fact that people are going to the emergency room when they shouldn’t. They’re going to the hospital when they shouldn’t. One of the things we like to talk about is that we keep you out of the hospital. This, I think, is one of the most as CFO, perhaps, I think this is the most important slide in the entire presentation. A lot of our business has been impacted by what is ultimately nonrecurring items such as back in 2020, ’twenty one and ’twenty two, we had COVID response.

It was testing, and it was vaccination. And then in 2023 and 2024 and into 2025, providing migrant services, so medical services that we’re providing on behalf of the city Of New York and the state of New York for recent migrants. Now aside from the fact that that got a lot of headlines, but realistically, what that did was it added a very large nonrecurring revenue element to our business. And typically, when you’re looking at a business, when you’re screening for stocks that are growth stories or stocks that you might be interested in investing in, you’re looking for companies that are showing that big year over year growth. Well, what happens here is if you look at it, so from 2023 to 2024, was flat twenty twenty four down to 2025 on a headline basis.

On a top line basis, that number is down because of the lack of that nonrecurring stuff that, in fact, is not recurring. But if you look at you take away the gray shaded area, if you look at the underlying business, the core business, medical transportation and payer provider, you can see that it continues to grow and has grown steadily really from 2021 and on. And actually, if we were to draw this chart out to the left, if you go back to really since our inception in 2015, there has been some very rapid growth both in the medical transport business and in the payer and provider, the mobile health business. You can also see that our book value per share, again, not everybody is a believer in book value as a determinant to value, but take it as you will. But our book value per share continues to increase.

We’re now trading at a very significant discount to both our book value per share and our tangible book value. Speaking of which, our balance sheet has improved. So a couple of minutes here in terms of how we got here. So as we started doing a lot of municipal work, whether it’s on the COVID side or on the migrant support side, so what we found was that these are very large contracts, very large receivables, took a very long time to collect. And over time, we’ve been able to bring that number in.

We’ve collected now about 98% of everything that we have charged New York City and New York State for the micro related services. So there’s a lot of noise about our ability or maybe potentially our lack of ability to collect this stuff. We have now collected it. You can see this from our balance sheet. Our quarterly accounts receivable, the number peaked at close to €300,000,000 I think it was about $282,000,002 €83,000,000 at early twenty twenty four.

That number has come down very significantly. Obviously, within that is the migrant services related AR, which has gone about €150,000,000 at the 2024 to where it currently stands at about 40,000,000 to €50,000,000 And obviously, consequently, our DSO has come down, getting much closer to where we had been. I would say that the more normalized level is what you see here at the midway point of 2023, which was about eighty six or ninety days, and that’s really where we ought to be. And consequently, that obviously has meant that we have converted AR into cash, and that’s why our cash balance has been going higher. We reported results for Q2 about two weeks ago, a little bit more than two weeks ago in early August.

So just to give you a little bit of a background there, a little headline. We did about $80,400,000 of revenue, which was a little bit above the consensus. Our gross margin was about 31.5%, which was a little lower than our internal expectation. There are a couple of transport markets that had temporarily lower margins during Q2. Those have since improved into Q3.

You can see that where the Mobile Health segment’s margin has been, where the Medical Transportation segment’s margin has been. And then the amount that was outstanding on the line of credit at that point was $30,000,000 We have since paid that down. So that debt is no longer there. Our total cash, which included restricted cash for our captive insurance company and restricted investments, was about $128,700,000 net of the $30,000,000 credit line. So we’re at about $100,000,000 net cash position, and we are at about that same level today.

So let’s take a little bit of a step back. That’s sort of the update. Let’s take a little bit of a step back and talk about some of the macro factors that we’re dealing with and that we’re trying to take advantage of as we go out and build out our business. So if you look at The U. S.

Health care business, and you’ve all heard about it, nobody spends more money per capita than The U. S. Does on health care, but we don’t get the outcomes that are better than anybody else. In fact, nowhere close. So we’re not as a society, as a system, we are not getting the return on investment that you would expect to get from all the expenditures that are being made.

It’s something that we know. What is really the issue behind it? So if you think about it, if you look at how we spend money today in our health care system, it’s primarily treating issues, treating symptoms, right? We want to spend our money on or we spend our money on trying to heal the sick, which is a really good idea. We obviously should spend money on healing the sick.

But the problem is we don’t spend nearly enough money on keeping people well. And had we done that and if we were to do that, then we would end up spending a lot less money down the line on things like chronic disease. What ends up happening is we sort of wait until people get into the system, we wait until they’re at a point where they need to be treated, where they’re on medication for the rest of their lives, and we’re not doing enough on the other side of it. And this is the idea behind it. The CDC estimates about ninety percent.

So almost all of the $4,500,000,000,000 that’s spent in health care are for people with chronic diseases and or mental health conditions. What we’re trying to do is we’re trying to assist the payers and providers and the hospital systems with getting people before they’re at a stage where you’re going to end up paying for their chronic issues. So we’ve tailored some solutions to the different segments. And our two key partner segments, and you’ll notice what’s not here is the municipal segment, the population Health segment, which had traditionally been a very large part of our revenue base, but which is ultimately nonrecurring, and that’s why we’re not talking about it here, and it’s not part of our guidance. We’ll continue to do those programs.

But essentially, our solutions are tailored to two key partner groups, one of which is the payers and providers. So health plans like Molina, health plans like Anthem, Emblem. And hopefully soon, it will include really all of the major payers that are out there. And the services we provide for them is something called Care Gap Closure and some primary care provider service, the PCP services. So if you’re a health plan provider, you will have millions of people on your plan, not all of whom are keeping up with what they’re supposed to do.

So if they’re diabetic, they’re not necessarily getting their diabetic retinal exams. They’re not necessarily checking their blood sugar or the other things like that that they’re supposed to be doing on a regular basis. And that becomes a problem for the health plan provider, because ultimately those people don’t end up getting the care they need until it’s already much later in the process, and now you’re treating them on a much more acute level and a much more expensive level. Plus the plans themselves are rated and provided and ultimately reimbursed on the basis of how well they do in making sure that the people that are in their care are having that preventative care taken care of. And that’s something that we’re doing for them.

We go to the home. We do these what we call care gap closures. Someone has a gap in their care, and we come in and we close that gap by providing that particular service. And the other thing we do is the health care system. Health care systems, and this traditionally has been a big part of our business, health care systems are not really in the business of transporting patients between their facility and home, home and their facility, within their network of one facility to the other facility.

This is something that has long been a pain point for the hospital provider. It’s something that we partner with them in order to provide so that they can forget about it. We can handle the transmission, the nonemergency medical transport on behalf of the systems. We provide efficient, reliable transportation to them. We do it in many ways.

We try to do it on a leased hour basis where they don’t have to worry about on time compliance or anything of that nature because they will have a dedicated ambulance or several ambulances and the related personnel and equipment that are there to provide the trips whenever it’s needed. We also allow them to integrate we are fully integrated with their electronic system with their electronic platforms. They’re able to order it directly. It’s not like the old days where you would do a little bit of a jump ball. You’d start to your receptionist in the hospital, you start to dial and you see who can sort of like ordering car service back in the day, who is going be available to take my patient home when they need to leave.

And the interesting thing is the hospital spend a tremendous amount of time and effort and money on making sure that the patient experience is good, because they’re rated on that basis. So you might have someone that’s in your care and you provided A plus service to that person for two weeks, and now it’s time for him to go home. And all they’re going to remember is that they got discharged and they had to wait two hours to get a ride home and whatever other issues came along with it. So this is why this is a big pain point for the hospitals. It’s something that we provide them to do.

We’re currently in discussions. And one of the things that we do is we go to hospital systems and we say, look, we can do more than just provide the hospital the transport for you. We can be your entire back end. We can take care of all your patient transportation needs. We can take care of follow-up visits in the home as well to make sure those people don’t go back and get readmitted into the hospital.

So that’s a lot of what we do. It’s really much more than a matter of simply taking a ride, raising our hands, saying, okay, we can be there when the dispatcher needs it, and we’ll get in and take somebody from point A to point B. It’s a lot more than that. So let’s look at our two segments. We operate in and report in two different segments that I’ve been talking about here before.

There’s the Mobile Health segment and then there’s the medical transport segment. The mobile health segment, you have payers and providers that want to expand the access to care that their patients have, right? So how do we get to our patients? I’m a health plan provider. How do I get my patients to be able to see a doctor without having to leave their home?

How do I get them to have more opportunities to see someone? So we offer a broad range of mobile health solutions. Now there are a lot of companies that provide health care in the home. Here’s how we’re different. Number one, we offer a much broader range of health solutions than most of the others do.

Most of the others are one trick ponies. They’ll either only draw blood or they’ll come and do an X-ray or they’ll do some other relatively nonacute type of things. We offer about 40 different things, 40 different types of services, 40 plus different codes that we’re able to offer. It’s whatever somebody might need. It could be a vaccine something as simple as a vaccination or a test or it can be a we do mobile X-ray.

It can be something like a blood draw and everything in between. Now the way we were able to build this program is because we were in the ambulance space, we had a proprietary logistics platform that’s able to route people to get the equipment that’s needed to the clinician that’s needed to where it’s needed in the right time. And it’s something that sounds very simple, but it’s not. And it’s actually what we consider a competitive moat for the company. To be able to build out that kind of platform that can get someone to the right place at the right time and to make sure you’re matching the clinician with the need.

And by using what we’ve built over the years and what we’ve invested over $100,000,000 into over time in terms of a routing network that we’ve built out. So by using that and layering onto that a mobile health business, we’ve been able to be very efficient. The other thing that’s different about what we do is the way in which we staff it, the way in which we deal with it. So if you look at it, there are two different categories here. You can see it in two different boxes.

There’s the on-site clinical staff. There’s a person that goes into the patient’s home, and then there’s the remote clinical staff. Now many companies that are offering in home services are simply sending a doctor to the home or a physician’s assistant or someone on that level. Those are relatively expensive clinicians, obviously. Now you obviously need to have them there as far as oversight, but what our model does is we send a lower cost clinician into the home to do the physical stuff, like a certified medical assistant or an EMT.

One thing that we learned from operating an ambulance business for over ten years that EMTs are capable of doing quite a bit more than just getting somebody into an ambulance and out of an ambulance and getting them from point A to point B. They can offer a lot of these services. And that’s someone who’s getting paid maybe $30 an hour or $40 an hour. So that’s someone who can go into the home, and that person, even if they only do see one person per hour, for example. And then you have remote clinical staff, and someone’s getting paid more.

Maybe they’re getting paid $100 an hour, 120 an But they can see several patients because they’re sitting in an office, and they’re dialing into the different calls that are happening across the network. And when you do that, your unit economics work. Our average ticket price, I’ll call it, for a home visit is something in the area of $200 to $250 $300 depending on the arrangement. And so by doing it the way that I’ve described, we’re able to generate a really nice margin. And also, as I mentioned earlier, we provide this very broad suite of services to people, right, whether it’s mobile phlebotomy or all the way to urgent care types of needs.

If you have someone and it’s hard for you to get to the emergency room or anything like that, plus we don’t want people to go to the emergency room. It’s just not a place where people should go if they can absolutely if they can avoid it. And that’s something that can be provided within a home setting. The key thing here is that line that shows the value provided to the health plans. Every one of these things that we would offer provides value to the health plan, the underlying health plan.

So on the mobile phlebotomy side, for example, we’re able to have access to bedbound members. There are a lot of members who need blood tests who just are not able to get out of the home. The care gap closure, the fact that we we’re not a one size fits all, we’re not a one trick pony, we’re able to close over 30 gaps in that area is a very big deal. And it leads to higher quality ratings for the plan that actually translates into dollars and cents because that is the basis upon which they will get reimbursed. So they’re going to make more money, or conversely, will lose a lot of money if their patients don’t have their care gaps closed.

So we can do that for them. These are the patients that they find it most difficult to reach. So when we’re able to reach out to the patient, because they’ll give us a list of tens or hundreds of thousands of people, we’ll reach out to them, we’ll schedule care gap closures, we’ll call them up, we’ll say, hey, we’ll come over, we’ll take care of this particular plan. And that’s something that’s offering tremendous amount of value to those health plans. Mobile and staffed clinics is something that was an outgrowth of what we did on the population health side when it came to COVID testing and vaccination and other types of vaccination, where we take one of our vehicles, we go to a certain housing project or we go to a neighborhood, we go somewhere, we’re there for a day.

It’s your typical mobile clinic that you see really a lot of. And that gives them access to underserved communities, right, and better health outcomes for the people who are just not otherwise going to be vigilant about making sure that they get to their doctor or other clinic or something of that nature. And then primary care physician, which ultimately, the twenty five percent, twenty five percent, thirty percent, it might even be an understated number, of the people that are out there do not have a primary care provider. And one of the things that they typically will do is they will wait until they’re ill, they’ll wait until they have an issue, and they’ll take care of it on an urgent basis, But they won’t necessarily have a primary care provider. These are the services that we can offer as well.

Okay. Now medical transportation, which was our initial business and continues to be a big part of what we do. We provide nonemergency medical transport either between clinical settings or back and forth to a patient’s home, primarily paid by either insurance, Medicare, Medicaid or the facility itself. One of the things here that we do is that we typically provide what we call a fee for service, which is I’m going to take you from one place to the other. There’s a reimbursement rate for that depending on the type of trip that it is, depending on who the payer is.

But now what we do is we do leased hour contracts. I mentioned earlier, we’ll go to a facility, we’ll partner with the hospital and we’ll say, we will provide just look at your traffic patterns. Let’s look at how many trips typically are done. We will provide four ambulances for your facility, standby essentially with a couple of EMTs in the ambulance, maybe a paramedic as needed and all the equipment that’s needed. And then we will do whatever trips you need.

And you don’t have to worry about on time arrival or anything like that. They’re sitting right there in your parking lot. And obviously, we’ve got some nice logos. If you look at the names or the pictures below, these are some of the major customers that we have. New York City Health and Hospitals is a big one on the municipal side.

They manage 11 hospitals in New York City, very large. The Jefferson system in Pennsylvania has been a joint venture that we’ve had since 2019, which has really been a good group to work with. And then you could see some of the larger names that are out there. And we are constantly in the process of trying to add more of these large hospital systems. That’s really who our target is, right?

We’re not marketing ambulance services to individuals. This is not a B2C type of business. It’s a B2B type of business or a partnership type of business or joint venture type of business where we’re trying to partner with some of those larger hospitals to essentially be their transportation arm. There are very, very few, maybe no hospital systems that run profitable ambulance businesses. It’s just not the kind of thing that they’re not incentivized to run it in a profitable way.

It’s just the kind of thing that’s always been a very big pain point for them. Okay. Now a little bit about the tech. And I know it’s always a little dangerous when the CFO is talking about tech because to me, tech is still about the cost and how much of it can be capitalized. But the reality is that it’s something that we’re very proud of.

If you look at it, you get a picture here. It looks a lot like your type of Uber interface or Google Maps interface. One of the big things that we’ve done is by being able to integrate this with Epic, which is one of the leading EHRs, or with Athena Health, also with the leading electronic health records platforms. And it’s a good patient facing app. You need to be a programmer to use it.

This is what you see towards the bottom here, those pictures on the bottom, that’s what the user, the person who’s ordering the trip, it would be the nurse or the discharge person at a hospital, is seeing. And then they’re also seeing where it’s located. And it’s able to take into account it’s a pretty basic algorithm. It’s able to take into account how far away something is, how long it will take for that particular vehicle to get there. It will also make sure that we’re not overstaffing it.

What I mean is that you’ll have certain ambulances that are made for what they call advanced lifesaving trips. You’ll have one EMT and one paramedic on there. Well, paramedic’s making a lot more money per hour than an EMT. I don’t want to send a paramedic, and I don’t want to send a more expensive ambulance to do a basic, a BLS, a basic life saving trips. That’s also some of the things that we take into account.

So it’s not just for efficiency, but it’s also for the stuff that I see and that Mike sees that the patient won’t see, which is are we doing it in an efficient way economically. So a big part of our story as we make up for the decline in the migrant revenue, obviously, is the growth of our core business, which we showed earlier. Here are some of the metrics. I just want to show you what things have looked like in the past three years, what we think they’ll be in 2025 and 2026. Medical transportation trips continue to increase at a pretty rapid pace, about 8% between 2023 and 2026.

I should point out that is a number that includes the fact that there are two or three markets that we have pruned. So there are a couple of markets. Colorado market, for example, was a solid transportation market for us, but it was never going to get to scale that we demanded it. So we turned that market down. If you pull out the markets that we pruned that were there in 2023 and ’twenty four, they’re no longer there, that CAGR is not an 8% CAGR, it’s probably in the low double digits, maybe 12% or 13%.

Also, the next one is patients that are assigned for care gap closure. So I said we partner with these medical plans, and they have these health plans, and they have a bunch of patients. And they’ll give us a list of patients, and they say, Okay, here’s a list of tens of thousands of patients that we need you to try to address, try to get those care gaps closed for them, try to schedule those appointments for them. Originally, when we were starting out, seventy five thousand of those patients in 2023. That number, as you can see, has increased very dramatically.

It will be over $1,000,000 1,000,000 patients next year. So that’s 1,000,000 names of from whom it’s a list from whom we were able to generate visits. Now in terms of number of care gap visits completed, we barely scratched the surface in 2023 towards the end of the year. 2024 also was very light. That number is projected to triple this year and then to nearly double in 2026, growing obviously at a very, very rapid pace.

And then we’re starting to do a little bit of the primary care physician visit. That’s a little bit of a difficult upsell, but that is, to us, the goal. That’s when you look at the lifetime value of a patient, that’s when you really start to get some big numbers. And we bought a mobile phlebotomy business, and that that business is expected to grow very dramatically from 2025 to 2026. When we’re able to layer on those patients assigned for care gap closure, a lot of them need mobile phlebotomy visits, and we’re to be able to execute a lot more of those.

So there’s lot of growth coming. I don’t want to spend too much time talking about management team. I’m not going to talk about myself. I’ll let the tabloids and Page six of the New York Post do that. But on a very serious note, a very big step forward that we took was about ten months ago, we added Doctor.

Steven Clasco as our Chairman of the Board. One of the things that I think was a I don’t want say weakness of the company, but one area that we really needed improvement was having someone who really had a certain amount of health care background and gravitas as part of our Board. And Doctor. Colasco obviously provides that in spades. He’s run a couple of hospital systems.

He’s involved on the private equity side as well in that space. He is someone who has opened up a lot of doors for us. And considering that a big part of our idea is to partner with health plans and to partner with hospital systems, obviously having someone like Kim on board is going to only help accelerate that. Okay. A benefit that we have, and there are many others that are trying to offer this particular service, but very few, if any, that have the vertical integration that we have.

So we have the technology part. We have the staff. We have the staff already on hand because they’re doing the medical transport. They can also do mobile health. We have a laboratory license.

We have a clinical practice group so that we can employ indirectly employ medical practitioners. And obviously, we’re credentialed on the Medicare and Medicaid side, and we know how to get people credentialed. If you were to decide that you wanted to start this type of business, today, you would have to do all those things. You’d have to put together a fleet of vehicles. You’d have to have a routing platform.

So we like to think that we’re in a position where the barriers to entry to doing what we’re doing, even in a market where the addressable market is growing and is very large, we would like to think that the barriers to entry are very high. This is a finally, there’s a little bit of an exercise that we like to do in terms of our ability to offer comprehensive care. And you can see one of the things that one of the areas, without getting into every one of the boxes in this matrix, the central ordering for transport and mobile health, the fact that you can go to one place and you can order whatever kind of trip that you need, whatever you need, and it’s a proprietary platform, that’s something that sort of sets us apart from that group. The ability to do medical transport is something also that doesn’t happen very much across the board. And then you can see in some areas, there are a lot of companies that have some of these things and not all those and really none of them that can do all the things that we can do.

Having said that, we are constantly on the lookout for companies that are doing things that can help us fill in some of the blanks in the portfolio. And if I had to look ahead and estimate, we will probably continue to do M and A in this particular area. The And M and A that we’re going to do going forward is not going be a matter of buying revenue, and it’s not going to be a matter of necessarily doing a tuck in ambulance acquisition. It would probably be something that allows us to fill in some more of the blanks in this particular box because there are companies that handle a good part of some of this continuum, some of this matrix that can definitely help us do what we do even better. So what is if we’re going to try to position ourselves as a growth company, so what are the factors that are actually going to help us grow?

So number one, we have these legacy customers. Legacy has a little bit of a negative connotation, but here, it’s meant to be these are recurring customers, strong relationships with large health plans. We’re focused on reducing hospitalization. We’re getting involved in the payer programs and virtual care management. We have a robust pipeline of opportunities.

And we have, as I alluded to it, an M and A channel that will allow us to both expand our customer set and our capability set. So what are the key takeaways? We don’t get a lot of time really to go through everything here. But if I wanted to sort of put it in a nutshell or summarize it, here’s the way I look at the company. I put the first one up there because it’s I have the floor, and I come from the finance side, so to me, this is where things sort of start.

Strong balance sheet to support the continued growth. The balance sheet is not just a set of numbers that happens to come together. It is managed. It is strategic. It has a purpose.

We need to go into this particular market, which is a somewhat fragmented market. We need to go in there with a war chest, and that’s what we’ve been able to build. We have a defendable competitive technology advantage in vertical integration. So again, very few, if any, have the vertical integration that we have or the technology platform that we have. We have a unique value proposition to health care systems and the payers and providers.

It’s something that’s we approach it from the standpoint of here’s what we can do for you, here’s your pain point, here’s your problem that we can solve. We’re building a recurring revenue base with very attractive customers. And we threw this one in here, a mission driven company with what really is a world class management team. There’s a really tremendous group of people who manage this company, who come from all different areas, right? We’re not all health care people.

Many of us are not health care people at all, myself included. We just have people who are good at managing, good at logistics, good at managing the financial end of things. And here’s our point: We want to be able to provide care where the patient wants to be seen. So I really appreciate everybody coming out. We left a couple of minutes for questions.

Will Mike and I will be here the rest of the day as well. So if you want to follow-up with us, you can do that as well. But I guess we have about three minutes left. Let’s throw it out for any questions anybody may have.

Unidentified speaker: So relative to the transportation segment, what proportion of those of that revenue is ambulance as we would think of it lights and sirens and whether it be an automobile accident, heart attack, whatever, versus someone moving just between facilities, making a phone call, I need to go to the doctor, these sort of non licensed siren ambulance sort of activities?

Norm Rosenberg, Chief Financial Officer, Dotco: You’re talking about our within our revenue base? All right. So the predominant majority of what we do, not all of it, but the predominant majority of what we do is what we call the non emergent or non emergency medical transport, right, which is taking somebody from the hospital or from the doctor’s office home or the other way around or from one facility to another facility or to a nursing home or back and forth. That’s the predominant majority of what we do. The reason it’s not 100% of what we do is that we do have here and there, we have a couple of emergency nine eleven type arrangements with municipalities.

We try to avoid it. The reason we try to avoid it is it’s not great business. The reimbursement rates are very low. You often don’t get paid. Collections are not great.

It’s just really something that we try to avoid. The only time we do it is when we have an arrangement with the municipality where we’re paid what they call a stipend. So we’re paid a monthly fee. So Dover, Delaware will tell us, we will pay you x dollars per month to be the back end of our nine eleven. They’ll have their 911 system.

You’re going to be the ones who do the who do those actual emergency trips. There is something that compensates us based on the number of trips that we do, but we’re paid a monthly fee for being able to offer that. So we sort of know that we’re not going to lose money. That’s when we’ll do it. That’s when we’ll do it.

Otherwise, we won’t. We’ve had a couple of situations where we bought companies that had a little bit of a nine eleven part of the business, and we frankly, we couldn’t get out of it fast enough. Have one additional question.

Operator: Would you

Unidentified speaker: please go back to the slide that shows the number of visits, 2023, ’four, ’five. So right if I go back to 2023 and making the patients assigned for care gap and then the care gap closure visits completed, it’s roughly 10%. And if we roll the clock forward to this year, it’s not even close to that ten percent number. Is there something that’s changed over that time horizon to different patient set or is this part of maturation? What

Operator: kind of

Norm Rosenberg, Chief Financial Officer, Dotco: that is? Yes. No, I think the thing that changes that, that initial set of $75,000 was a lot more I hate to put it in sales terms, but think of it as either a warm lead versus a cold lead versus a hot lead. So those 75,000 was a group where the we were basically asked to schedule visits with patients who are already a little bit down the road with the insurer. So we were just sort of coming in and closing.

So it’s not a really good proxy. I mean a 10 conversion rate would be great. It’s not something that we assume. We assume we shoot for something closer to like a 5% conversion rate. Now in 2024, you didn’t see it.

But part of the thing is that this is also looking at an appoint in time. So in 2024, there are 500,000 patients that are assigned, 10,000 trips that are done, but it’s a little bit of an apples to oranges comparison because the 500,000 was at year end, right? So over the period of the year, we typically get these lives assigned to us towards the latter part of the year. So it’s not that we started with a list of 500,000 out of whom out of which we’re able to generate 10,000 trips. It’s a little bit misleading there.

But our conversion rate, I mean, we would hope over time that we’re able to maybe convert 5% to 10% into visits. Okay. Well, again, thanks, everybody, for coming out and listening. Mike and I will be around the rest of the day and look forward to catching up with anybody. Thank you very much.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.