DocGo (DCGO) FY Conference Transcript

Summary of DocGo (DCGO) FY Conference Call - June 09, 2025 Company Overview - Company: DocGo (DCGO) - Industry: Mobile healthcare and medical transportation - Core Business: Provides medical transportation and mobile healthcare services, focusing on bringing care to patients where needed and transporting patients to care locations [4][5] Key Points and Arguments Business Model and Growth - Medical Transportation: The company has a robust medical transportation platform, which includes a tech platform that calculates estimated times of arrival (ETAs) for medical transport, having calculated 15 million ETAs last year [5][6] - Crisis Response: The company played a significant role during the COVID-19 pandemic and the migrant crisis in New York City, which helped establish its reputation and capabilities [6][7] - Patient Care: Over the past ten years, DocGo has cared for 10 million patients, focusing on expanding capabilities in home healthcare and medical transportation [8] - Revenue Guidance: The medical transit business is projected to generate $315 million at the midpoint, with growth driven by partnerships with large hospital systems [9][10] Growth Drivers - Hospital Partnerships: The company partners with major hospital systems, utilizing its tech platform to manage patient flow and transportation, which has led to organic growth [10][12] - Market Expansion: DocGo is expanding geographically, with recent expansions into Chattanooga and Dallas-Fort Worth, and is targeting a growth trajectory of 20% by increasing transit numbers from 575,000 to 700,000 [16][18] - Service Expansion: There is potential to deepen relationships with existing hospital systems by offering additional services beyond medical transportation, such as cardiac monitoring and transitional care management [15][19] Market Dynamics - Fragmented Industry: The medical transportation industry is highly fragmented, and DocGo's investment in technology allows it to capture market share by providing a more efficient service compared to traditional methods [21][22] - Predictability in Operations: The company’s model provides predictability for hospital systems, allowing them to manage patient flow more effectively, which is a significant value proposition [29][27] Financial Performance and Guidance - Accounts Receivable: The company has made progress in collecting outstanding receivables, reducing the balance from $150 million to $100 million [67] - Municipal Revenue: The company has removed municipal revenue from guidance due to unpredictability but expects to report it separately as it comes in [70][71] Payer-Facing Business - Care Gap Services: The company is expanding its payer-facing business by addressing care gaps for patients who are chronically ill and have difficulty accessing care [35][36] - Patient Engagement: DocGo has successfully engaged with a growing list of patients, now totaling 900,000, to close care gaps, which is a significant growth opportunity [39][43] - Revenue Model: Currently, the company operates on a fee-for-service model, with plans to transition to value-based payments as it establishes a primary care practice [46][44] Operational Efficiency - Labor Model: The company employs a unique model where licensed practical nurses (LPNs) are dispatched to patients' homes, directed by centralized healthcare providers, optimizing resource use [61][62] - Cost Management: DocGo is rationalizing its SG&A expenses while maintaining capabilities for future growth, particularly in the payer and provider verticals [79][80] Additional Important Insights - Patient Management: The company emphasizes the importance of patient bed management for hospitals, which can save significant costs associated with building new capacity [28][29] - Long-Term Relationships: DocGo aims to fill the void for patients without primary care providers, establishing long-term relationships where necessary [56][57] - Future Outlook: The company is optimistic about its growth trajectory, with plans to expand services and geographic reach while maintaining a focus on operational efficiency and patient care [54][55]