Jun 25, 2023
Modivcare Sees Steady Growth In At
Modivcare Inc. (Nasdaq: MODV) continues to see personal care and remote patient monitoring as key tenants to its strategy to unlock value-based care arrangements. “This is evidenced by new contracts,”
Modivcare Inc. (Nasdaq: MODV) continues to see personal care and remote patient monitoring as key tenants to its strategy to unlock value-based care arrangements.
“This is evidenced by new contracts,” Modivcare CEO L. Heath Sampson said during the company’s second-quarter earnings call Friday. “This makes us more enthusiastic about the long-term prospects, and we anticipate that performance will surpass our initial expectations.”
Based in Denver, Modivcare is a technology-enabled health care services company.
Apart from its at-home services — which include personal care, remote patient monitoring and meals — the company also is one of the largest providers of non-emergency medical transportation (NEMT).
Company leaders have been banging the drum for value-based care consistently over the past several months. The latest earnings call was no different.
The company’s focus on value-based care reflects industry trends, Sampson said.
“This is also driving a paradigm shift toward more holistic member care,” he said. “As payers and providers grapple with an increase in chronically ill populations, higher costs and tighter reimbursement rates — coupled with an evolving complex regulatory landscape — the quest for an integrated health care experience that combines quality, affordability and interconnected services is paramount.”
The company has recently been shifting away from traditional call centers and has been growing its omnichannel options which, Sampson estimates, could save the company between $30 and $50 million in the next 12 to 18 months.
Through these continued centralizations, Modivcare also expects these initiatives to mitigate the headwinds of Medicaid redetermination and higher utilization.
“Similar to other companies in the health care industry, we are seeing a rise in utilization of our services as we see progress in the nation’s recovery from the pandemic,” Sampson said. “Even though the increase has a negative impact, it has generally been positive for our personal care and remote patient monitoring segments, in which we are seeing strong demand for our services.”
Modivcare reported $699.1 million in revenue, an 11.3% increase year over year. For its home care segment, revenue came in at $183 million, a 10.2% increase year-over-year.
The increase in total revenue was primarily attributed to a 1.5% increase in membership, a 9% increase in revenue per member, per month in the company’s NEMT segment, a 3.4% increase in hours worked and a 7.2% increase in rate per hour in its home care segment.
Patrick Filbin is a reporter for HHCN. Prior to joining Aging Media Network, he was a reporter with the Chattanooga Times Free Press and a features reporter for the Gillette News Record in Wyoming.