DocGo at Morgan Stanley Conference: Strategic Growth in Mobile Health

On Wednesday, 10 September 2025, DocGo (NASDAQ:DCGO) took center stage at the Morgan Stanley 23rd Annual Global Healthcare Conference. The company highlighted its strategic growth in mobile health and medical transportation services, focusing on innovative technology integration and expansion plans. While emphasizing positive growth and opportunities, DocGo also addressed challenges such as labor shortages and inflationary pressures.

Key Takeaways

• DocGo has significantly expanded its mobile health services, growing from 2,000 to nearly one million patients served.
• The company expects $225 million in medical transportation revenue for the current year.
• DocGo has repurchased $25-30 million worth of shares and reduced its debt significantly.
• The company is actively filling 800 open roles to support its expansion plans.
• DocGo plans to expand to new states, driven by customer demand and strategic partnerships.

Financial Results

• Recurring Revenue: Primarily from long-term transportation contracts and evergreen population health contracts.
• Medical Transportation Revenue: Expected to reach approximately $225 million this year.
• Share Repurchases: Completed repurchases totaling $25-30 million.
• Debt Reduction: Paid down a $30 million line of credit to zero, maintaining over $100 million in cash.

Operational Updates

• Mobile Health Growth: Expanded from serving 2,000 members for one payer to engaging with nearly a million patients.
• Care Gap Closure: Averaging nearly two care gaps closed per home visit.
• Staffing: Actively working to fill 800 open roles to support growth.
• Market Expansion: Plans to enter about half a dozen new states over the next year.
• Training: Mobile Health clinicians receive 80 hours of training before providing in-home services.

Future Outlook

• M&A Strategy: Focused on acquiring companies that enhance tech capabilities or service delivery.
• Market Expansion: Expansion into new markets, such as Dallas-Fort Worth, driven by anchor customers.
• Municipal Focus: Exploring evergreen opportunities like veteran health screenings and mobile vaccination programs.

Q&A Highlights

• Labor & Inflation: Despite 800 open roles, DocGo maintains high ratings on Indeed and Glassdoor.
• Payer Opportunities: Engagement rates for the DSNP population are 3%-500% above average.
• RFP Process: Actively submitting proposals to hospital systems and payers.
• Telehealth: Emphasized the importance of combining telehealth with on-the-ground care.

For a deeper understanding, please refer to the full transcript below.

Full transcript - Morgan Stanley 23rd Annual Global Healthcare Conference:

Chris Brewston, Managing Director, Morgan Stanley: All right. Thank you all for joining us. I’m Chris Brewston, Managing Director in the New York office for the healthcare team of Morgan Stanley. I’m going to start off with a disclosure. For important disclosures, please see the Morgan Stanley Research Disclosure website at www.morganstanley.com/research-disclosures. If you have any questions, please reach out to your Morgan Stanley sales representative. Lee, thank you for being here today. We appreciate you attending our conference. Before I jump into questions, any opening remarks before I jump in?

Lee, DocGo: Yeah. First off, Chris, thanks for having us. 23rd annual Morgan Stanley Healthcare Conference. It’s great to be here with you. I know you and I spent a lot of time together. We talked about the industry, talked about what’s going on in the space, talked about the innovation. It’s great to be doing a fireside panel with you. I think it’s a very interesting time for the healthcare industry. We’re certainly at the vanguard of some of the trends that are happening with home-based care, the ability to provide accessible care to patients that are falling through the cracks. I think there’s a lot of change coming with some of the new legislation, some changes to Medicaid, obviously, that people are talking about, some changes to rural healthcare.

We’re really participating in a lot of those evolutions, and I’m excited to talk to you about what we’re seeing in the space.

Chris Brewston, Managing Director, Morgan Stanley: Thank you. My first question is on mobile health. That segment is experiencing significant growth in recent years. Can you spend a little bit of time talking about what services you provide in that segment, what types of customers you’re seeing there?

Lee, DocGo: Absolutely. For those that don’t know our story that well, DocGo is a medical transportation and mobile health provider. I’m sure we’ll talk about medical transportation. We’ve been doing that for 10 years. We’re a big innovator in the space. We basically created an Uber-like experience for medical transportation, which I know we’ll talk about. Once we realized we had this incredible logistics platform, coordination platform that we were using for medical transportation a few years ago, we started applying that to mobile health. The mobile health segment’s been growing very quickly for us, particularly our work with the payers and providers. We contract directly with insurance companies and providers to coordinate care and provide care to their unengaged, high-utilizing members that are costing their plans a lot of money.

What the plans do is they give us a list of all these members, and our patient engagement team is getting incredibly sophisticated on how we engage these unengaged members. We not only provide the platform, but we also provide the care in the home. We go to the home, and we close care gaps and provide primary care services to these very underserved, high-utilizing, have multiple chronic conditions patients. The plans are loving that. We started doing that about 18 months ago, two years ago. We had one plan give us a list of 2,000 members. I’ll never forget the day. It was December 2, and they said, "Can you go see these 2,000 members before the end of the year?" I’m like, "You do realize there’s 28 days left to the year, and some of which are New Year’s Eve and Christmas." We did. We mobilized quickly.

That’s really one of our calling cards. We used the infrastructure we had on the medical transportation business and, of course, on the mobile health space. We made some great progress there. Today, fast forward from that one payer that gave us a list of 2,000 patients, we have over a half a dozen very large payers that have given us almost a list of a million patients that we’re going and engaging with, primarily in the New York tri-state area and in California. We’ve been engaging these patients. We’re doing thousands upon thousands of home visits, and we’re closing multiple gaps per visit. On average, we close almost two gaps per visit. We’ve had some visits where we closed six gaps in one single visit.

That breadth of service, the number of things that we can provide, and by the way, care gaps are things like a diabetic retinal exam for patients that have diabetes and are at risk of vision impairment. It’s a bone density screen for osteoporosis patients that are at risk of falling and breaking their bones. It’s an annual wellness visit. It’s vaccinations. Lots of critical care and preventative care that patients need, critical services that patients need, but you can’t provide it with telehealth alone. That’s where we come in. We’ve been seeing a lot of growth there. We’re very excited about what we’re doing. The patients are absolutely loving it, and we’re looking to expand pretty aggressively.

Chris Brewston, Managing Director, Morgan Stanley: Thank you. It’s impressive. I want to spend some time on the tech stack. Can you spend a minute just giving a little bit of an overview on the front-end, back-end tech stack that you developed? When you think of EHR integration with Epic, Athena, that impact on referrals and any enhanced functionality you get from that?

Lee, DocGo: Yeah, I think the tech stack is the critical component of this. The idea of providing medical care in your home is like as old as time. I mean, everyone remembers that Norman Rockwell painting hanging in the pediatrician’s office with the doctor visiting the patient, and you’re standing in a cold waiting room as a kid waiting to get those vaccines. Everyone has that memory. The idea is an old one. I think the only way to do it efficiently to go to the home, essentially the industry and doctors realize, "I can’t be driving from house to house." These very, very scarce resources of the physicians we have today, we don’t have anywhere near enough of the physicians we need. Now, technology is going to solve some of that in the coming years, but you know, one in four Americans doesn’t even have a primary care provider.

We don’t have enough doctors, and they certainly can’t be driving from location to location. What we did is we took the tech stack that we built, and we enabled LPNs, which are licensed practical nurses, medical assistants. They’re the ones that are going from home to home. They’re the ones that are driving. There’s more of them. We can train them. The primary care provider or the nurse practitioner or the PA, these advanced practice providers are the ones directing the hands, eyes, and ears in the home, which is that LPN. That’s the tech platform that we built.

In addition, the coordination platform that we built, I mentioned sort of Uber for ambulances, we’ve built a platform where a discharging nurse at a hospital can literally click a button within Epic, which you mentioned, and they can see when that ambulance is going to arrive to pick up that patient that’s being discharged from the hospital, perhaps going to a skilled nursing facility or to home or the next care facility. The tech stack that we built essentially is integrated with Epic. It feels like all the consumer and the front end. You asked about the front end. It feels like a consumer front end. Directly from the patient’s chart, you can click a button. You can order medical transportation. You can order all of our mobile health services. How did we get integrated with Epic?

A company of our size, particularly when we were starting out, we have a close partnership with Jefferson in the Pennsylvania, New Jersey area, and they’re a very large customer and partner of Epic. They asked Epic to integrate with us. Today, Jefferson is using it. Lots of large hospital systems are using our integration with Epic with our platform directly built in. On the front end, it looks super simple, just like ordering any other service we do today on our mobile phones or from our desktops. On the back end, what other companies are doing, I think, in the delivery space is like child’s play compared to what we’re doing, right? We have to make sure that we have the right level of care, the right ambulance, advanced life support, basic life support. Is the patient on oxygen?

We have to know the right vehicle with the right clinician, with the right licensure for the right patient need, all coordinated together. That’s what our back end is doing. When that discharge nurse clicks that button, he or she sees exactly what time we’re going to arrive. Why does that matter, really? Because then they know when that bed is going to be freed up for the next patient. That’s everything to hospital systems that are trying to manage patient flow. When that button is clicked, the housekeeping staff knows to come and get that bed ready for the next patient. Intake knows when that bed is going to be made ready for the next patient. Of course, the discharge team knows when to get the patient ready when we’re arriving. That coordination and symphony that happens with the tech stack is extremely differentiated.

Chris Brewston, Managing Director, Morgan Stanley: Thank you for that. I want to spend some time on the recurring revenue, revenue visibility topic. How should we think about recurring revenue opportunity within the business and then your line of sight regarding revenue visibility? Is it primarily in the transport services side, or is it on mobile health as well?

Lee, DocGo: It’s on both. I’ll start with the transportation side. We typically sign contracts there from three to five years. Those are the length of our contracts. They’re incredibly sticky contracts. We’re embedding our software within their workflows. We’re providing the crews that are transporting and dedicated to the hospital systems. That’s our model. It’s been very sticky. I mentioned Jefferson. We’ve been working with them since 2017 as an example. Northwell is an example. We’ve been working with them since 2018. You see these contracts. We’ve been working with a lot of our big, great partners for almost a decade in that space. We very, very rarely, oftentimes, it’s at our choice when we decide to move crew and personnel around to orient around some of our customers. We tend to keep those customers for a very long time. They’re very happy.

We’re very, very proud of that in the medical transportation space. We’re going to continue to expand that. On the mobile health space, I think the answer, Ken and Lee, is twofold, right? I know, Chris, you know our business well. We historically have done a lot of work with municipal governments, right? People that know our story know a lot of that work that we’ve been responding to crises and pandemics, asylum seeker, migrant healthcare. A lot of that was episodic in nature. It was very much intended to help in the crisis. God willing, that crisis is over. You move on to the next thing. If we do a good job, the crisis ends. If we do a good job, the emergency is over. That was more episodic in nature.

I think over the last two years, since I took the helm of the company, we’ve been moving the company towards more evergreen opportunities, population health style opportunities. For example, the programs I mentioned with the payer that I described. The payers are always going to have a % of their population that are special needs, that are drifting, that are immobile, and have accessibility issues. We think that space is just very, very large. Indeed, the payers we’ve been working with have talked to us about expanding to new states, have talked to us about expanding their footprint with what they’re doing with us in the states we’re already launched with them. Those are evergreen in nature as an example. Those are really the partnerships that we’ve been signing, the deals we’ve been signing over the last year and a half. We feel like they have very long runway.

Chris Brewston, Managing Director, Morgan Stanley: Thank you. How do you think about the labor and inflationary environment that we’re in? Any adjustments that you can make to staffing or automated processes that are addressing this area for you?

Lee, DocGo: Yeah, staffing is a big component of our business. We’re not just a technology platform, which is a big differentiator for us. Obviously, that scales, but we also provide the staff. I can tell you that’s a big, big competitive advantage. I speak to hospital system CEOs, health plan CEOs, and they say, "You know, if I have to see just another person that’s trying to sell me a software platform, you know, we provide the software platform and the boots on the ground." That is a big component of our business. We have a very talented engineering team on the corporate side. On the field side, we have thousands of EMTs, paramedics, nurses, advanced practice providers that are in the field. As I say, they’re the heroes in the story, active in the field, going to serve patients every day.

Right now at the company, we have just about 800 open roles that we’re looking to fill right now because we’re trying to expand the contracts we have and the scope of the work. It’s a challenge on the hiring side, which I’ll talk about. On the inflationary side, we don’t have a lot of inflationary pressures on the business. All the vehicles that we have, we either own them already or we procure new. We have a very favorable credit facility that we utilize to procure the vehicles. Actually, on the fuel side, prices have actually come down. We’ve seen, you know, we drove 8.8 million miles. We use gas, electricity, things of that nature. Last year, we drove 8.8 million miles. Frankly, on the fuel side, that’s come down a bit.

On the people side, as I mentioned, we’re actively working very, very, very, very quickly to try to hire all these open roles that we have for our expansion. We’re working on that. I think we are consistently the premier place to work in this space. If you look on Indeed and Glassdoor, we have the highest ratings in the industry. We provide great training capability to the staff. They get to elevate their career and progress their career within our company, going from an EMT to a paramedic to our Mobile Health business. We’ve been working to make our company the great culture that it has, and also to attract the great talent because we need to scale our workforce and be able to hit our very ambitious plans.

Chris Brewston, Managing Director, Morgan Stanley: Thank you. I have to think the payer opportunity is pretty significant. Can you talk a little bit about care gap closure that you hit on a little bit, chronic care management? When you think about these conversations around kind of dual eligibles, Medicaid, is there an opportunity in Medicare Advantage as well? Can you just spend a little time about the overall payer opportunity?

Lee, DocGo: Yeah, so we tend to work with the payers that are providing managed care, managed Medicaid, Medicare Advantage. You mentioned the DSNP population, the dual special needs population. Those are the lists of patients that the plans are providing to us, particularly the ones that are unengaged, that are costing them a lot of money and not getting the care that they need. We’re actually seeing enormous uptick in the DSNP population. That population tends to engage at a rate of 3% to 500% more than the traditional population we’ve been engaging with. That’s for a lot of reasons, right? They tend to be lower income, so they tend to have less access to great care. They tend to be ambulatory in nature. They have mobility and access issues. Some of them are elderly. We check a lot of those boxes. We come to those patients’ homes.

We provide the care in those homes. They don’t have to worry about coordinating transportation. They don’t have to worry about managing the schedule of various different appointments that they have. We come to their home and provide a lot of that. The plans are very focused on that population right now. We see a lot of great confluence of variables happening. One, the plans are very focused on this population because they cost them a lot of money. Engagement rates for us are really high with this particular population, and we solve a very critical need. We’re continuing to add resources to provide comprehensive services, chronic care management, preventative care, primary care in the home for these populations.

Chris Brewston, Managing Director, Morgan Stanley: Thank you.

Lee, DocGo: Anybody, Chris, I should say, anybody that’s at risk for their patient population, these value-based care, which we feel is where the industry needs to go. Anytime a provider is being incentivized to provide more tests, to provide more screens, that’s a bad scenario because the patient is just getting more and more sick care, if you will, more and more tests, more and more visits. We actually think the entire system should be rewarded for how healthy the patients are and how few visits they need or how less often they land in the hospital. We want to be successful when the patients are actually healthy at their home and not visiting the hospital unless they truly need to. We want to align there.

Any of the plans that are trying to keep patients out of the hospital, any of the hospital systems that are trying to keep certain populations out of the hospital, and particularly with the 30-day readmits, we’re aligned with those plans very well because we’re going to the home. We’re providing care for patients that are unengaged, unattached, chronically ill, and that are not getting the medical care that they need. As a result, they’re landing in the hospital every other month. They’re costing the system a lot of money. That’s where we come in. Any of these managed care plans, value-based organizations, we do very well with.

Chris Brewston, Managing Director, Morgan Stanley: Shifting to M&A, can you talk a little bit about the opportunity within M&A, particularly in the mobile health segment, but maybe across the business? Are there specific areas of focus when you think about strategic expansion for the business?

Lee, DocGo: Yeah, I think for us, it’s always going to come down to added capabilities that the plans particularly are asking us for and added geographies. That’s one area where we look at. Added capabilities relating to the tech stack, added capabilities relating to the service delivery, and of course, new geographies that we’re not in today. Today, we provide services in 30 states, but of course, there are lots of different parts of the country that are still well underserved that we can go and make a difference. That’s where we look at on the M&A side. It has to be complementary to what we’re doing. It has to make us scale faster so we can get the density faster so that we can increase margins over time. That’s really what we’re looking to do on the mobile health M&A side. We see a lot of opportunities.

I know, Chris, you and I talk about this a lot. There’s an inflection point in healthcare right now where some of the smaller operators are having a hard time because they don’t have the scale and the density, particularly in the mobile health space. We’re seeing a lot of opportunities. I think healthcare is on sale right now, frankly, with a lot of the smaller operators having a hard time because they don’t have the density. For us, we’re lucky because when we deploy a mobile health contract or a mobile health deployment, we’re launching out of the same base and same infrastructure that we have on the medical transportation side.

If you go visit our base in Ridgewood, Queens here, you’re going to see 100 ambulances coming in and out, and you’re going to see dozens of mobile health and mobile X-ray and mobile clinic vans going in and out of that same infrastructure. A lot of the mobile health providers that don’t have that medical transportation infrastructure, which we’re very unique in that regard, when they don’t have that, scaling is much more difficult than it is for us. It’s a different investment thesis for them. We think that bringing them into the fold could potentially help us scale and get more density there. On the medical transportation side, we’ve been very successful there. People may have seen we mentioned, you know, we acquired a smaller medical transportation company. Usually, medical transportation has a very long-tail distribution. It’s a very localized segment.

We only have a very small percentage of it. We think it’s a $10 billion market on the medical transportation side. We have a very small % of that. There’s an opportunity for us to acquire, you know, perhaps smaller, less scaled medical transportation operators and bring them into our fold where we have our self-funded insurance plans. We self-insure all of our ambulances. We self-insure all of our staff. We can bring them in, and they can gain those efficiencies. Obviously, they can gain efficiencies from the tech stack, which very few, if any, medical transportation providers have. We feel like we can bring them in and make them more profitable as they join our scaled infrastructure on the medical transportation side. We’re looking to do that as well.

Chris Brewston, Managing Director, Morgan Stanley: Thank you. When we think about capital allocation, it kind of ties back to the M&A conversation, but how should we think about prioritizing different pockets of capital allocation? M&A, share repurchases, increased hiring. Can you spend a little time on that?

Lee, DocGo: Yeah, I think number one is going to be making sure we have the resources and spending on the organic growth. You mentioned the staff. We train our staff. We invest very heavily in training our staff. We mentioned that we brought on a very large Medical Transportation contract here in New York last month. I think it started in July, so about six weeks ago. We brought on a very large, we had to staff up, and we had to train that staff to be able to provide an exceptional service to that customer. We invest into that. Every Mobile Health clinician that goes into a patient’s home, we have a high bar on that. We require that they have 80 hours of training before we let them go into a patient’s home and provide services. It’s a large breadth of number of services that we provide.

We’re going to continue to invest in our operations, invest in our people, invest in our training, invest in our scale organically. We talked about M&A. We think there’s going to be some good, creative opportunities that we’re going to look at there. Growth, growth, growth, both organic and inorganic. You mentioned some of the other capital allocation we’ve done. We’ve repurchased shares. We’ve repurchased shares. I think we have purchased just about $25 to $30 million worth of share repurchases that we’ve done off our balance sheet. We also recently, we mentioned on our last earnings call, we paid down, we had a $30 million outstanding balance on our line of credit. We paid that down to zero. The company has zero, you know, no outstanding, no large balance on the debt side. We paid the credit facility down to zero.

We’ve been very judicious in using our balance sheet. We have, again, we shared on our last earnings call over $100 million of cash on the balance sheet. We feel like we’re in a good position here. We feel like we have the resources we need to effectuate and implement our plans on the growth side. We’ve been using the capital from our balance sheet to pay down our debt. Again, we paid that credit line down to zero. We repurchased shares. We feel like we’re in a really good spot to implement our plans and return value to shareholders.

Chris Brewston, Managing Director, Morgan Stanley: Talking about the RFP process for a minute, how has that been able to expand as you scaled? Are you targeting larger contracts now? How has that kind of progression been and that breadth of services you mentioned before too?

Lee, DocGo: Yeah, I think when we used to talk about the RFP process, it was very focused on the municipal side, particularly on the government procurement side. I talked about historically, we were submitting about 100 RFPs a year, which was 3x what we were doing before we really started focusing on that space. I think we’re submitting more proposals than that today, except it’s just a wider range of recipients of those proposals. It’s not just the municipal customers that might be down to maybe call it 30 or so a year on that side of the business. We’ve more than replaced what we were doing on the municipal side with many proposals to hospital systems and payers, everything we’ve been talking about during this conversation. On our last call, I announced that we’re already in contract with two of the top 10 largest national payers.

We are in active talks with two more of the top 10 largest payers, and we have 35 proposals out to payers all across the country there. On our medical transportation side and other provider side, we have probably another 100 plus proposals out. We’re doing more proposals and submitting more proposals than we ever had, and it’s been to a more diversified, wider audience of recipients than just the municipal side. We really feel like on the municipal side, we want to be a lot more focused on evergreen opportunities, less crisis response, less emergency management like I had talked about, and more evergreen longitudinal population health style programs. As an example, I’ve shared we’re looking to provide services to our veterans, right? Health screening services, health prevention, and fit for duty readiness screenings for our heroes in the military. That’s evergreen.

That’s going to be there for a long period of time. Population health to underserved communities, perhaps with a mobile vaccination program we just launched in Southern California, targeting populations that don’t have good access to vaccine. Again, that’s a longitudinal multi-year effort. Those are the types of municipal programs we’re going to be bidding on.

Chris Brewston, Managing Director, Morgan Stanley: Shifting to market expansion, you’ve entered several new markets in the last 12 months. Can you discuss a little bit about how you assess a new market that you’re going to enter into and what you’re looking for, kind of what that target market kind of somewhat looks like from a playbook perspective?

Lee, DocGo: Yeah, I think first and foremost, we want to expand into the markets where our customers are pushing us to expand into. We don’t go to a new market and hang a shingle and then try to sign up some business there. We always expand to new markets when we have an anchor tenant, an anchor customer, if you will. That’s usually a hospital system. As an example, we recently expanded to Dallas-Fort Worth metro area. We expanded there with Methodist, which is a very large hospital system. Now we’re looking to expand to other hospital systems within that area. Very often when we are expanding, not often, all the time when we’re expanding to new geographies, it’s because we have an anchor customer that’s pushing us there. I think you’ll see us expand to states.

We have plans to expand to about a half dozen new states over the next year or so. Really, those states we’re going to expand to are the ones that our health plan partners and our hospital system partners are pushing us to expand to. We’re very successful with the health plan in California. They may want us to expand to other states where they need our help. Those would be the states that we look to expand to.

Chris Brewston, Managing Director, Morgan Stanley: I didn’t grasp that you have the visibility as you’re entering into each of these from those partnerships. It’s helpful.

Lee, DocGo: Absolutely.

Chris Brewston, Managing Director, Morgan Stanley: Can you talk a little bit about the go-to-market strategy for each of the customer segments? When we think of government, payers, the hospitals, events, what’s the sales cycle like for each of these if they’re different?

Lee, DocGo: Yeah, the sales cycle is long. The sales cycle often is anywhere from 6 to 18 months, depending on, you know, I would say on the new customer side. I think the sales cycle will be shorter, absolutely, for the customers we’re already working with. As we were just discussing, we’re already working with a large health plan in California. It only makes sense that they would expand us. I think it would be quicker, and those processes are going much faster to expand to new states with those existing customers. That’s much faster than the 6 to 18 month cycle I was just describing. For the new, very large, again, we’re not taking a few extra ambulance trips because we’re working with a nursing home here or, you know, we’re working. We tend to, not tend, we work with the large health systems and the large payers.

We take over their entire transfer center, their entire, you know, medical transportation nerve center, if you will, operations. The software is integrated. Those sales cycles tend to be a little bit longer. They also tend to be a lot stickier as well. That’s what it looks like. I think universally, what’s the pitch? What’s the value prop? It’s pretty simple. We help keep patients out of the hospital. Health plans really want that because that’s where patients are the most expensive. Hospital systems don’t want you getting readmitted within that 30-day post-discharge window because that means that perhaps you’re bouncing back to the hospital because you have an infection or you didn’t get the proper care the first time. They’re getting dinged on their quality scores. Oftentimes, they’re not even getting reimbursed for that second readmit within that 30-day window. The hospital systems, again, don’t want you being readmitted.

We have transitioned to care programs with hospital systems. Everybody in the value chain wants to help keep patients out of the hospital. Patients also obviously don’t want to end up in the hospital. Everybody wins when the patients that need to be in the hospital are there, and the patients that we can prevent from going to the hospital are being cared for at home and healthier. People often forget, it costs $3 million on average to bring a new hospital bed online, so to speak. To build a new hospital bed costs $3 million. Hospital systems want to better and more efficiently manage the bed they do have than spend the CapEx on building new hospital beds. They want the right patients in those beds. The patients that can be prevented from going to the hospital, everybody’s incentivized to keep those patients out of the hospital.

That’s really how we’re targeting our pitch over that 6 to 18-month sales cycle.

Chris Brewston, Managing Director, Morgan Stanley: Thank you. I’m going to ask another one, and then I’ll open it up to any questions from the audience as well. For Mobile Health, given the growth in that segment, can you discuss a little bit about where you see that market going, how you’re creating value for your channel partners, the hospitals, municipalities, payers, across that?

Lee, DocGo: Yeah, I think on the Mobile Health side, a lot of it is keeping patients out of the hospital, which I just discussed. I think oftentimes the health plans that we’re working with, there’s a big quality component to what I was just discussing. For example, you mentioned the Medicare Advantage plans that we work with. They get what’s called a HEDIS/Star rating. Every health plan, every MA plan gets a quality score. That quality score impacts how much premium and reimbursement that plan gets. Also, when participants are signing up for their MA plan, they see the score. They see the quality score right in the portal. Obviously, the plans that have the higher quality scores get more enrollment. They get better premiums. The winners win and the losers lose. It’s actually the way the system should work. That’s where the care gap closure comes in.

How do you increase the quality score? What makes a good quality health plan? A good quality health plan is a health plan that’s providing care to all its members. A good quality health plan is a health plan that their members like and that their members are satisfied. A good quality health plan is a health plan that’s managing their costs appropriately. That’s what makes for a good quality health plan. All the care gaps that we provide, they’re specifically targeted at the HEDIS/Star ratings matrix and helping the plans improve that quality score. A big component of the quality score is how satisfied the customer is, how satisfied the patient is. Our Net Promoter Scores, our patient Net Promoter Scores are 90+, which is like unheard of in this space. We help check that box as well.

That’s really the value to the health plan, helping them increase the quality of their health plan by providing care to members that are going unengaged, by providing the care gaps and closing those care gaps so their quality scores go up. As their quality scores go up, more members choose them. As their enrollments increase, obviously, the health of the plans increase. That’s the virtuous cycle that we’re participating in.

Chris Brewston, Managing Director, Morgan Stanley: Thank you. Any questions from the audience? All right, I’m moving to my next one on Medical Transportation. Can you discuss a little bit about that market opportunity and in particular the partnerships that you have? You mentioned Jefferson before, Northwell, HCA. How do you think, how big do you think this market opportunity is and the growth opportunity there too?

Lee, DocGo: Yeah, so estimates on the market size, it’s a $10 billion market on the Medical Transportation side. I shared that we expect to do around $225 million worth of Medical Transportation this year as part of our guidance. We have $225 million-ish of this $10 billion market. I mentioned it’s actually a very fragmented market. It’s a very local market. We feel like we have the ability to be one of the few large, nationally scaled, multi-state Medical Transportation providers. There’s a lot of goodness that comes from that scale. The cost can be invested across the platform. We talked about our tech stack. That tech stack is used by all of our markets across all of the states that we operate in. We talked about the training. We talked about the recruitment process. Again, standardized systems that get used across the entire system. We move vehicles around.

When we have more demand in one city or state than another, we’ll move ambulances around. That ability to scale is going to be very valuable in this space. I think over time, you’re going to see the space consolidate a bit. I think we’re in a very good position to participate in that. There’s a lot of great enhancements that come when we’re able to bring a smaller Medical Transportation provider onto our platform using our tech, using our infrastructure, using our logistics capabilities, using our procurement, using our ability to manage risk in the space. We have a lot of scaled processes and procedures that I think are going to be very, very valuable as this fragmented space becomes more and more standardized in a way. We think there’s a big opportunity there.

I think Medical Transportation has gotten a lot more appreciation from hospital system CEOs because they realize that it’s a big component of their patient flow, how patients come into the hospital, how patients go out of the hospital, how they get coordinated that transportation. I think that hospital systems are realizing it’s a big component of what they need to solve for to make sure that their beds and their capacity and their utilization are well managed. I think health plans are realizing, wait a second, a lot of these patients are going uncared for because they’re missing appointments. The transportation is not solved for. They’re not going to their doctor’s appointments because they don’t have transportation or they don’t have childcare. I was looking at one hospital system’s data. They have 28% of all their appointments are no-shows for the hospital systems.

The insurance providers also don’t like when you miss your appointments because that’s where you’re getting the care that you need. I think transportation and the coordination of how patients access care, how they get to and from points of care is getting a lot more appreciation in the market, I’d say, over the last 12 months.

Chris Brewston, Managing Director, Morgan Stanley: Thank you. I have time for one more. Telehealth. You’d mentioned a little bit before from a competitive perspective when you think about it, just given the lower barriers for some of your competitors to enter into that segment. How do you see that as kind of an opportunity, but also when you think about it from a competition standpoint too?

Lee, DocGo: Yeah, so we think telehealth obviously solves a big need in the space. I think we’ve learned post-COVID, there’s a big role for telehealth to play. It’s convenient, and it serves its purpose. We’re very, very bullish on telehealth. At the same time, we think that telehealth is incomplete in many cases, right? You cannot provide a patient a vaccine through a Zoom call, through a telehealth visit. You cannot draw a patient’s blood through a screen. You can’t take a swab. You can’t take a sample. You can’t take a colon cancer kit through telehealth alone. We feel, again, that that boots on the ground paired with the tech platforms, telehealth is really what our unique value proposition is. It’s very hard to do, very, very hard to do.

That’s why you see a lot of people in the telehealth space, a lot of people in the, so it’s called software and tech enablement space, and very few people in the actually frontline space like we are. We think our ability to be in the frontline space, a thousand vehicles with thousands of clinicians all in the field on the front lines providing care. Again, last year we provided care to a million patients in the field. This year I shared we’ll do 750,000 patient transports, 150,000 patient visits in their home. We’re monitoring another 50,000 patients. There are very few companies that are doing that type of care in the field at scale with a workforce like we have that’s incredibly well trained as well as the software platform.

We feel like the software platform, the telehealth platform paired with those frontline staff and the coordination and logistics and the infrastructure of all that is going to be incredibly compelling and is incredibly compelling.

Chris Brewston, Managing Director, Morgan Stanley: Thank you. Lee, thank you for joining us today. Really appreciate the conversation.

Lee, DocGo: Absolutely. Thank you, Chris, and thank you to Morgan Stanley.

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