Q2 2020 1Life Healthcare Inc Earnings Call

Memory and Specialty Care settings with these Partnerships. We look to further on the complexity of Care on behalf of our members and their employers facilitating arrangement of Downstream Specialty Care off medical information sharing and benefits and care coordination across Primary Care Diagnostics specialty and acute care settings.

To date in 2020. We have expanded into three new markets alongside Health Network Partners this included opening in Portland, Oregon in March in Orange County, California in July extending our existing relationship with Providence Saint Joseph Health into these new markets. We also opened our doors in Atlanta, Georgia in June for the first time through our new partnership with Emory Healthcare with the opening of these Mark we have grown our total markets by 50% over the last 18 months. We have also launched Partnerships in existing markets back in January. We launched our partnership with Mass General friggin system in Boston. Furthermore. We are pleased to share that the partnership we recently announced with MedStar Health in Washington DC officially went live August 1st with this launch 100% of our members across our twelve markets are now covered under Health Network Partnerships supporting seamless Coordinated Care across primary and Specialty settings for our members as we noted last month.

We plan to enter Austin test.

As our 13th Market in partnership with Ascension taxes. And today we are pleased to announce our Fourteenth and Fifteenth Market Raleigh Durham North Carolina, which we will be entering in partnership with Duke University Health System as well as parts of Wisconsin, which we will enter with an existing Health System partner as I summarize my comments. I'd like to share my thanks to our entire team for the impacts. They've made during this time in support of all our key stakeholders consumers employers providers and health networks who are digitally and clinically interconnected system of home care. We have expanded our membership Base by 25% year-over-year and grow new and existing employer and consumer relationships. We have extended our service offering available scheduled remote visits mindset behavioral health covid-19 screening and testing and our one medical now National digital Health Employer Solution.

We have addressed ongoing physical wellness and mental health needs and continued extending care to Pediatrics and family members all the while. We have delivered value-based resolved and saving to importers members and our providers have benefited from our Innovative technology to promote frictionless inbound and outbound synchronous and asynchronous access Cox digital and in-person modalities with sustained 90 plus net promoter scores and streamlined workflows with our health network Partners. We have advanced clinical and digital integration opening new markets and delivered seamless Coordinated Care across primary and Specialty settings.

To those joining us today. We thank you for your continued engagement in our mission to transform health care now. Let me turn the call over to our CFO.

Thank you. And hello to everyone on today's call and thank our entire team for their continued support of our members our communities and each other.

Unprecedented times in the second quarter. We are very pleased to deliver results at or above the high end of our guidance.

We talked Swift action at the onset of covid-19 stepping up to the level essential digital and incurs and Healthcare to our members and the communities we serve.

This included launching digital covid-19 cleaning standing up outdoor testing site collecting specimens and following up digitally and in cursing wage test results and any additional keoni.

Well, thanks so much technology has allowed us to extend the services. We provide to our members and Enterprise clients right of the remote visit our healthy to get a website of the entry program on 1 Medical now virtual Health offering these additional Services have grown our client to reach allowed us to sign up more Enterprise and consumer members Drive better-than-expected operating and financial performance and most importantly enable Better Health outcomes for our member.

Let me know take a few minutes to this.

Cuz I will Q2 results and provide our current Outlook.

As I mentioned our value proposition to employers and consumers has never been installed. We continue to see strong membership growth in future years and this Accord at the high end of our Guidance with four hundred and seventy-five thousand members up 25% video.

As previously failed. Please. Keep in mind that this membership count continues to exclude Community memberships, for example for front-line workers with any paid short-term Enterprise memberships that are less than 12 months and any virtual only one medical now uses which vehicle recently launched in geographies where we don't have a physical for debate.

Turn into Revenue in total like 78 million dollars in method Avenue in up 18%

This Revenue includes an income vent of 2.4 million dollars related to the provider Relief Fund established under the KSF, which we have reported a distinct line item in our financial at this point. We cannot predict how much if any additional funds we may receive in the future.

Our membership revenue for the quarter was 17.7 Million which calling 40% year-over-year delivered by them in both consumer and Enterprise memberships with particular strengths in our Enterprise business.

Of 23.9 million and partnership revenue of 34 million.

Increase 81% primarily driven by our growing membership base as well as the addition of several you health network Partners office discussed employer calls. You've seen an ongoing mix shift of Revenue out of the net patient service line item and into the partnership will have a new line item over the past year with these Partnerships have gone live.

Collectively medication Services revenue and partnership 8% or 31% of our Avenue in the corner of what's your eyes on a fee-for-service basis? Make sure some color on our latest bill over volumes because all of our markets

in Mark's to see our in office volumes declined SLT place to visit is very negative because communities

and

Response not call me 19 KO and available remote visits both of which have been widely adopted across all of our markets.

Aggregate of a total billable volume including in office visits covid-19 testing and visits declined for minimum wage. You ask them. In fact during the month of June aggregate number of billable Services, exceeded pre-owned covid-19 level.

This recovery was driven by better-than-expected volumes. It costs all of our billable services.

Please keep in mind that the average reimbursement for these billable Services. We may elope Rico in nineteen by the remote visits are currently in Birthday parody for an equivalent in office. Visit remote message. Do not involve procedures. And therefore on average have lower interest manager then in office visit.

photo related visits tend to be reversed lower the remote with

moving down to p&l. We delivered a few 2K amount of 24.6 million or 31% of net revenue wage should reflect our expansion into Atlanta and Orange County the opening of additional offices across our existing markets as well as Investments. We made to suck out know covid-19 Kia which allows for greater throughput and Rapid scaling of our Laughlin.

The expenses below cost of excluding stock-based compensation real 44.9 million or approximately 1 million years she won levels as we reduce our spend in anticipation of covid-19 Revenue heavens and to fund the continued globe in our provider base wage as a result of Revenue and expense performance or adjusted ebitda with the loss of 15.2 million month.

Lastly the end of the balance sheet and the community position during the quarter. We successfully completed a convertible debt offering this attractive terms of them reissue. It's a hundred sixteen point three million dollars in aggregate principal notes you in June 2025.

And notes behind interest rate of 3% which will be paid semi-annually in June and December and have an initial conversion price of $44.43.

but when it hits from the offering 306.9 million

In total we ended future with six hundred sixty four point four million dollars in total cash and short-term marketable Securities on our balance sheet month. We have ample Capital to continue to fuel responsible and take advantage of the current dislocation in the market.

In summary, we believe that all organization continues to perform well in June to buy managing through a dynamic and evolving environment off 19 is photo pulling the value of our longitudinal tail model to Consumers and employers. It is also proving the value of our technology platform, which allows you to quickly launch Remote visit our healthy to get a website of the entry program and 1 Medical now our 24/7 virtual only offering long as you mentioned these recently launched offerings have seen strong initial interest and together with our continued Geographic expansion to allow us to scale down operations light efficiently managing our capital in expenses providing Tailwind for our business in the months and years to come

No, let me take a few minutes to discuss our account uploads and provide guidance.

We expect to finish with the total membership count in the range of 486000 to 496000 remember which continues to show our strong and growing value proposition to Consumers and Enterprise customers.

Avenue in the range of $84 to $89 usually here mountain in the range of $26,000 to Thirty 1 million dollars and fused to the adjusted ebitda in the range of a loss of twelve million dollars to a loss of seven billion dollars.

I believe demonstrates of a strong value proposition and positive outlook on this Dynamic time, but also recognizing the covid-19 continues to create uncertainty.

20/20 we continue to see strong interest in our model even with Rising levels of unemployment you remain confident in a proposition two members, and we now expect to end the year with membership count in the range of 505000 to 515000 members wage increasing the low end of our price range.

Plumbing p&l perspective we are not providing twenty twenty guidance given the continued uncertainty surrounding coded.

As mentioned we are encouraged by the time that we see in our business and that are reflected in our curiously guidance.

However, you also want to acknowledge that just remain with regional differences in covid-19 incidences and regulations changing policies home schools and universities any potential decline in flu prevalence this winter offset by a potential increase in flu vaccination just to name a few.

Not yet providing guidance. We do expect Q3 to be particularly strong as we expect to serve a fair amount of pent-up Demand with our services that may not carry into Q4.

These uncertainties will require us to continue to dynamically adapt our business and may potentially also impact our financial results.

Being strong membership and revenue growth we have strong relationships is more Health Network Partners than in the past and our flexible technology platform as allowed us to rapidly launch new service offerings such as our website of the entry program held together and 1 Medical now our 24/7 on-demand off virtual service in geographies. Maybe don't yet have a physical point. We believe all of this together allows us to enable Better Health outcomes for our members while using total health care costs, which in turn will provide long-term Tailwind to evolve Avenue and mountains.

We thank you for your continued support in our mission, and we will not open up the call for your questions.

Thank you as a reminder to ask you a question. You will need to press star one on your telephone to withdraw your question. Press the pound key, please let me yourself to one question. Please. Stand by you in a restaurant.

Our first question comes from Richard close with canaccord genuity. You may proceed with your question.

If your line is on you, please unmute.

Yeah, thanks. Sorry about that on 1 Medical now sounds like it's live is this National in scope as we speak or is it just basically on a client by a client basis in various States?

Yeah, so this is a mirror. Thanks for the question. This is live and we rolled it out just this quarter and we rolled it out to Great initial interest from existing employer account who wanted to offer our one medical now of service across greater geography. And so this is why I've across broad geography off. Okay, and that do you hire the clinicians in the states that you're offering this or are you able to leverage existing one medical clinicians?

We have a national model for are employed salaried provider model, and we continue that National model of employees salary providers office. Okay. Thank you.

Our next question comes from Sean Whelan with type of salmon receiving a question. Hi, thanks. So just to follow up on on Richards question. What what's kind of the the the level of traction that you're getting? I know you've not in the membership count for one Medical but now but like what's how do we think about that full with into the model in terms of memberships? And in terms of the financial contribution for that and um, you mentioned that that it's targeting markets where you don't yet have have a physical presence. So just help me better understand. Is that is that the target of places where you intend to have a physical presence or is it more broad than that?

Yeah, thanks Sean. So, you know, we're seeing a a great run we're here and with the launch of one medical now, we are capable of serving employees at our employers. Nationally. This song came about organically from our existing large employer accounts asking us to turn one Medical on across all their markets which we saw as a great Testament to the month. We've been providing those clients. And so this is just another facet of the comprehensive offering we can provide employers and Thursday. We absolutely can turn on for existing accounts or for new accounts across multiple markets whether or not we ultimately have physical presence in those markets.

Is the price point the same?

In in general we have, you know bundled pricing with our Enterprise accounts. And so we look at it together with the wrong number of lives and the and the number of markets but in in general it is at a reduced membership fee.

Okay.

Thanks so much.

Thank you. Our next question comes from Sandy Draper with security. You may proceed with your question. Good afternoon. Thank you very much for taking my question. Maybe I'm not sure if this is for Thursday near you or Bjorn the comments about the net Patient Service Revenue, obviously because of covid-19 merrily dropping to around Thirty 31% of our total revenue, but that has been trending down kind of it's making art to analyze is you now have I think every region your end you have a health system partner should the, you know outside of cocoa may be accelerating this one year the general trend. Is that going to still be down and help me recall. If you have a partner in a region, when are you still billing fee for service Revenue? That's not necessarily going to the partner if you have a partner in every Market. Thanks.

Yeah, this is a mirror. Maybe I'll take that one. So is he is he noted Sandy? Thanks for the question. We now have Partnerships in all of our markets and we are open and and Achieve equivalent economics come across our partnership approaches. However, they're structured but as you can see in our p&l the mix of Revenue is Shifting towards the p.m. P.m. Partnership Revenue, which itself can be different time and across different Market, but we we as you can see we certainly are announcing more Partners actually have Partners in all of our markets and all of our anticipation announced markets. And so that is a major driver of that shift.

Okay, so did so I guess the general Trend would be over time. You would continue to expect to see more partnership revenue and maybe less Patient Service revenue and not give me an example of when you would Bill fee-for-service even if you have a partner in that market.

Well, we well we don't share partnership contract specifics as I mentioned. We can achieve similar margins across our relationships whether they're structured on a patient services Revenue 6 p.m. P.m. Basis. So we are open to either approaches but as you can see there has been an increase in the partnership Revenue approaches, and I don't know if you want if you want to add anything to that.

Yeah, and maybe just a polite a little more color. You know s u s you think about the fee-for-service revenue in the second quarter of which to your point was done about 31%

Yes, I'm going to be two things that developed is right one. We continue to drive to your point to the p.m. P.m. Model in select markets. And as you point out about a hundred percent of our members covered by those but uh by uh Health Network Partners, but the other piece that In fairness you saw in our queue to fee-for-service results is that you know will see for service markets. We did obviously have some fluctuation in terms of total bill of a volumes, you know between what's going on with kovich between office visits between Kobi beta testing and animals visit.

Okay, great. That's helpful. Appreciate that.

Thank you. Next question comes from Brian Daniels William Blair. You may proceed with your question and congrats on the strong results. And thanks for all the details so far in regards to the new one medical now offering want to follow up on that again, just to make sure I fully understand is that something you're only offering to potentially new and existing corporate customers that want to provide a benefit to remote workforces where you don't have centers or you actively going to sell this to employers and kind of local or Regional areas where you may not need a center or may not even intend to have a center in the future. It's kind of a virtual Health only type benefit.

Yeah, thanks Ryan for the question. You know, we really have the opportunity to do all of the above, you know, nothing constrains us from selling it to anyone. It really came about four ganic Lee as we started to serve larger and larger employer clients who wanted to turn us on across all their markets. They like the longitudinal value proposition. We had they like the salary model. They like this synchronicity just a synchronous model. They love the quick response. They love that. We've added other digital Health Solutions on to that, uh, including care for the whole family took to it really gives us a lot of Runway to explore all the above.

I can ask a quick follow-up on that. Do you think is that rolls out comes more advanced? It gives you the opportunity to land more clients that may have been hesitant otherwise because they have faith in the workforce. You couldn't serve such that it will accelerate those conversions. And then also does this at all change your potential Capital deployment priorities as you can perhaps provide services and locations where you might not need a footprint. Thanks.

Yeah, we do think it allows us to have greater reach within existing large employers with Nu existing large amount or is that want some greater level of benefits parody If you will across there multiple markets, so yes, we we do see one medical now giving us that ability. I think in terms of capital efficiency, if you will just as with our remote and visit we believe that certain long as we continue to grow these digital Health approaches. It may be the case in the future that we can serve our members with less incremental than physical locations and then otherwise might have anticipated but we do continue to do testing and screening and vaccinations and it'll be covid-19 viral.

and and that's

The nation's we anticipate those as well. But overall we do see this as growing the the the digital component of our model just just to refresh people's memories as we noted in our previous roadshows even before covid-19. We had three x that digital engagements to in-person engagement in our model and this is just further reinforcing that approved.

Very helpful. Thank you.

Thank you. Next question comes from Wiki goldwasser with Morgan Stanley you may I please have your question. Yeah. Hi good evening. So you talked to the birthmarks about the particular strength in the Enterprise business. Would love to give some more contacts that where do you see? Where do you see the strength? I mean, did you see more new employer clients that you anticipated or is it the member activation wage rates are picking up faster or is it lower attrition?

Yeah, thank you Ricky for the question. You know, I would say in general. It's been about more growth and signing up new Enterprise account. We've always had very strong retention and and activation. This is really been about adding more Enterprise accounts adding more new logos. Okay, and then if I may just a follow-up when we think about your membership guidance for second half of the year. What are you assuming in terms of just unemployment?

Yeah, happy to happy to give you some more color there because obviously there's there's still a fair bit of uncertainty as we think about the second half off at College by the time just seemed so far and you can see now we have no membership guidance for for the third quarter and the fact that we increased the low end of our guidance office here that we did we feel that we are Vali Vali valve position to you and continue to to see a lot of activity and a lot of interests them. All Enterprise clients, maybe box too, uh to take USDA back. Um, yeah, what is included in our membership account on the Enterprise side, uh, um memberships the Google searches for 12 months or more. So at least it won your membership, so, you know couldn't see probably too much of a headwind in terms of potential unemployment until later this year off.

Um, but that's definitely something that you're watching very closely.

Thank you. Thank your next question comes from Lisa Gill with JPMorgan. You may proceed at your question. All right. Thanks very much. And thanks for the call early as far I just want to go back Beyond to suck comment that you made around billable volume and you talked about June. I'm just curious your comments around the Q3 pent-up demand. We're about what six weeks or so here and to that the next quarter. What what are the trends you're seeing as far as in office. Are you starting to see people come back to the office or you standing just seeing more procedural type off of volume? Cuz you you did note that previously right that that was the issue where you get paid remotely, but without the the procedures it it's not the same amount of Revenue.

Yeah, great great question. And as you heard earlier, you certainly started to see the volume of of table available. Is it approached before we levels and thank you deeply Kobe level in June and you know here we are in August and recently, you know continue to Mom tell us about that that what does the absolute level but also the relative mix of those visits since then frankly. I will see you three guidance is probably is is is is reflective of what we've seen so far in the quarter and what we expect for the rest of the quarter now, I think I think if you look at those three different video tipes the Readjustment, um around have not really changed in terms of Dynamics in office visit still on average higher reversed the remote. Yep.

Visit and uh Cove it related visit internal also below those remotes available widgets on average and you know, really what we meant with the point around around end up man is that you know, as I said, we've started to actually in total billable visit above Rico with levels when you think about it this way just only so much time or so long that you can or want to you know postpone about this visit or certain other procedures at some point just needs to get done and that's what we've started to see sort of ss. June all around and our guidance reflect that right and then just just one quick follow-up. Give a call back to Ricky's question club membership. You said, you know for the most part is 12 plus month. Is there anything within your contract where they they have to give you a notification so if I'm a large employer and I'm laying people off are are they letting you know Thursday?

Ahead of time or is it more of kind of an eligibility feed so you're not getting a lot of you know lead time around the potential of of lost membership. Yeah, I guess it depends on the client by client basis as you can imagine all of those contacts a little bit you need certainly, you know, there are some contracts where we have better visibility than others wage. Um, so it it it's a mix but again, when we look at our pipeline when we look at the renewal dates that are coming up for contracts, um, you know, they're sort of all flown into our consideration and deliberation as we thought about QC total membership guidance, and and okay great. Thank you.

Thank you. Our next question comes from Ralph.

City you may proceed with your question.

Great, thanks want to go back to to membership, you know, certainly good to see those numbers in this backdrop, you know, you beat the high end of your guidance and you know for 2-qb 5,000 you only raise the low end of the full year by that $5,000 despite the upside and some of the new announcements. So just hoping if there's anything we need to sort of consider as an offset or you know is is conservative at this point.

Yeah, and and maybe it's just two two levels that we came in right at the high end of our guidance for our membership for huge. So, you know, I think I'm going back a little bit to the conversation around the potential unemployment. What's happening in the economy? Thankfully also what's happening with covid-19 and the fact that we might enter a lifetime will in different geographies and different Industries. Um, you know, people are going into sort of rolling lockdowns or coming out of all the markdowns. So, um, you know, they're certainly a fair bit of availability here still for the for the for the remainder of the year, but you know, just taking a step back having come in at the top end of our guidance and being able to raise the for your guidance On The Low End by 5000 Fiola we feel obviously is is is appropriate but also shows the momentum of the business

Yep, okay fair enough and then if I could just one quick follow-up on the the one medical now virtual only offering a I'm still not exactly clear on sort of the economic flow through it sounds like it's a membership office. So you will get sort of the um, yep, you know the the annual fee but then on top of that is it just you know, you're getting reimbursed for every time somebody gets a virtual visit and how is that reimbursement determined on sort of a regional or national level?

Yeah, thanks Ralph it it's a bundled payment based on employees and and continues kind of our approach for on-demand wage will care as we've done with that in in in markets where we have the physical presence. So we've basically extended that on-demand virtual care across all of our money for those other employees of those those existing employer accounts and and for new account.

Got it. So there's no additional Revenue pull for any type of obviously on site or virtual care above and beyond that bundle price. Is that fair?

If you mean there is incremental revenue for each of those employees that comes in a bundled way, right? Okay. Got it. All right. Thank you.

Take your next question comes from Steve s t b lyric you may proceed with your question.

Thank you guys for the question. Maybe just a follow-up on that last and I was curious there as well. So just to understand this. Basically, it's the same service offering minus the physical office off, I guess and unlimited Demand on demand Telehealth ten candles members do billable visits that wasn't clear on that point just now and then if you could give us a sense for what the membership fee is for for one month now members, that would be helpful, too.

Yeah.

Stephen yeah right now we're offering it on a on a bundled basis for employers. So that's the way we're offering it. Now as we said before nothing prevents us from doing anything else with this, but that's how we launched it with our with our existing account. Got it. Okay, that's helpful and off any comments just on the on the difference in the membership fee. I think it'd be helpful to think about it, you know relative value price with the the office of the physical assets included.

Yeah, I mean again this kind of came about initially organically from existing client that wanted us to extend our offering across all their accounts all their thoughts hold their employees. And so we bundled that into an overall price when we worked those with those employers, but I would say in general you can think about it off as a lower list price if you will then or membership fee price where we have physical offices. Okay, sounds like it's maybe variable and maybe I'm more just to follow up on the the bill available remote visits was hoping you can share maybe a couple more metrics around that I don't know how much you're willing to share. But I guess ideally I'd love to know how much revenue that contributed to Q or or sort of Less Direct like what percent of digital interactions are going billable now or how you expect that to develop going forward to seeing good demand for that relative to the sort of bundled off.

All in on demand service or how do you think that'll evolve?

Yeah, we you know, we've certainly seen great uptake in with remote visits and we anticipate they will continue and continue to be an important part of our model as we know. We don't break out those specifically, of course. We we also have Partnerships and partnership Revenue where that took a cruise to the partner and then we also have a patient service Revenue where that accrues to us, but I would say across either model. It's very well received and and growing and if if I might just add a point, you know, the the Partnerships have been really quite powerful during this time as as we mentioned here today. We've launched, you know in Portland and Orange County with an existing partner during covid-19. We also open our doors in Atlanta, Georgia.

We earlier this year announced a partnership in an existing Market with Mass General Brigham and Boston and then announced with MedStar Health in which which just went live August first off which brings us to 100% of all of our members being under Health Network Partnerships. And as we mentioned before increasingly a lot of our Revenue coming in on a per-member per-month basis and then also as as we mentioned on our remarks in the last earnings call, we mentioned the launch of Austin Texas wage extension, Texas. And today we mentioned our Fourteenth and Fifteenth markets Raleigh-Durham, North Carolina with Duke as well as parts of Wisconsin with an existing Health System partner. So I think really just to add to your question what this shows is really the strength of our model the strength of our model with Partners the strength of that partnership Rev.

Which helped?

Drive by a strong result. It's really helpful. Or maybe if I could just sneak in one more to follow up on that. I guess I'd love to understand like how are you confident that the p.m. P.m. You're getting from the hospitals or commensurate with sort of the value of providing for the health systems and insert a better than the fee-for-service model. Like, how do you evaluate that? I should we evaluate that.

Yeah, we we believe we have you know, Health Network partnership relationships and underlying economics that allow us to deliver our long-term Financial targets and we feel we feel very strongly about that. And as you can see by the number of markets, we've opened all with partners and the number of new partners even announced during the Depression or our partners see Great Value in that so it's really a great win-win for both both parties.

Thank you. Our next question comes from Matthew Gilmour with you may proceed with your question. Hey, thanks for the question. I was hoping you could update us on the on the Pediatric service. And you know, I'm kind of early read in terms of how that's ramped. And are you seeing any positive impact from a membership perspective in terms of either consumer ads or on the Enterprise size if there's a higher degree of activation rate when that's available?

Yeah, I think we've certainly seen both we've seen increased enrollment in activation on the Enterprise side. And on the consumer side. It's just one more reason on the Enterprise side. Not just for the employee but their entire family to sign up and as we've mentioned on our road shows, uh, most of our employers are offering our our one medical membership benefit to employees plus dependents and now we can just catch even more of them and we're seeing the same thing on the consumer side, So it's a great way to add more members and increase the value proposition to employers. I'll also note to this is just another example of how we're increasing the value prop to importers, whether it's with our healthy together return-to-work offering our mindset behavioral health approach, of course this pediatric approach or whether wage

For when medical now all of this is making are offering just more robust and and giving more reasons to to to sign up and on top of this. We really have you know, a differential model that serves multiple key stakeholders. So it not only Delights consumers with ninety net promoter score and is a great benefit that's loved by employers. But as we mentioned we had a paper published in Jama the month of April showing that we take out costs and that is that paper 45% of the cost and then not only are we kind of delighting the the demand-side employers and consumers but we've redesigned the Healthcare System. We've taken providers off of the fee-for-service system. That's so rampant out there where the more volume that's done the more providers done whether it's virtually or in person. We have a Samsung model for our providers and we build technology that allows to the provider to improve productivity and reduce the burdens of desktop metal medicine and the other reasons we're seeing burnout in positions dead.

And we've interconnect.

In our system, right? Let's not minimize that between primary care whether it's inbound or outbound population Health with Diagnostics testing Specialty Care reducing a duplicate of testing integrating systems owning the burden of that complexity of navigating that system on behalf of employees and employers. So this is really an interconnected system that we have lunch together that's digitally and clinically integrated. Well, I see that we're at the top of the hour and we have one more. I think we are not dead. We have one more question. Perfect.

Yes, our last question comes from Richard close with canaccord genuity. You may proceed with your question. Thanks for the follow up. I was just curious on the timing of Raleigh jobs and Wisconsin. If you could let us know when those expect to be lives markets.

Yeah, thank you Richard. Those are the live at some point next year.

Okay, and then is Austin scheduled for the beginning of 2021?

That is correct. Okay. Thank you.

Wonderful. Thank you and well.

Well, great. Well, I want to thank again everybody for joining us on the earnings call today. I want to thank you for all your interest in our mission to transform health care and for all the great questions and engagement with our organization. We look forward to seeing you next time. Thanks so much everybody. Have a great day.

Thank you. Ladies and gentlemen, this concludes today's Compass call. Thank you for participating you may have you may not disconnect?