Q1 2021 R1 RCM Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the Arb One R. C. M Q1, 2021 earnings conference call.
At this time, all participants are in listen only mode.
For the speaker's presentation, there will be a question and answer session.
To ask a question during the session you will need to press star one on your telephone keypad.
If you require further assistance. Please press star Zero I would now like to turn the conference over to your speaker today Mr. Rahim.
Head of Investor Relations. Please go ahead Sir.
Good morning, everyone and welcome to the call certain statements made during this call maybe considered forward looking statements pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995 in particular any statements about our future growth plans on performance, including statements about our strategic and cost saving initiatives our liquidity position.
Our growth opportunities on our future financial performance of.
Our forward looking statements the.
These statements are often identified by the use of words, such as anticipate believe estimate expect intend design May plan project would and similar expressions of variations investors are cautioned not to place undue reliance on such forward looking statements. All forward looking statements made on today's call involve risks and uncertainties.
While we may elect to update these forward looking statements at some point in the future and we have no current intention of doing so except to the extent required by applicable law, our actual results and outcomes could differ materially from those included in these forward looking statements as a result of various factors, including but not limited to the potential impacts of the COVID-19 pandemic and the factor of the disc.
<unk> under the heading risk factors.
Annual report on all the latest form 10-K, and the related to report on form 10-Q.
We will also be referencing non-GAAP metrics on this call for a reconciliation of the non-GAAP amounts mentioned to their equivalent GAAP amounts.
Please refer to our press release now I'd like to turn the call over to Joe.
Thanks, Todd Good morning, everyone and thank you for joining US we issued three announcements this morning, which will be the basis for a substantial portion of the agenda on today's call.
In addition to the Q1 earnings we announced an agreement to acquire a visit.
A leader in health care consumer payments solutions that simplify and modernize the payment experience for patients while driving improved financial outcomes for providers. The transaction provides the tax benefit valued at approximately $40 million equating to an effect of purchase price of approximately $260 million we all.
<unk> announced the strategic expansion of our agreement with Ascension, along three broad categories. The appointment of our PFS solution architecture across the ambulatory and acute settings of care expansion of services performed on the global shared service centers and expansion of automation use cases across key functions of the new agreement also expenses are.
Master services agreements for 2031 effectively of 10 year charter.
Let me start with a brief recap of Q1 I'm pleased to report that 2021 is off to a strong.
Our team continues to execute exceptionally well and we are seeing this manifest itself on the results. We are delivering for our customers first quarter revenue of $342 6 million.
And adjusted EBITDA of $84 million were both ahead of the expectations. We communicated on our last earnings call. The upside was driven by higher incentive fees and lower operating costs.
While the patient volumes in the aggregate remain below pre COVID-19 levels, we have successfully navigated the environment over the past year and believe we are very well positioned to serve our customers and the broader end market in the post COVID-19 environment.
The toll and quality of discussions with prospective customers of our pipeline is very encouraging and gives us a high degree of confidence our goal of signing of $4 billion and new end to end the NPR on 2021.
Technology is increasingly becoming the differentiating factors for many decision making processes.
Our patient experience for PX platform is gaining prominence as providers are increasingly incline.
Net revenue cycle sourcing decisions based on what's best for their patients.
And of all other criteria Adil.
Additionally, automation presents an opportunity to fundamentally transform the nature of our industry and reduce the heavy reliance on labor of that exists today, our operational control across the entire revenue cycle process provides a unique lens significant competitive advantage to drive this disruption.
These two factors on the driving force behind our continued heavy investment in technology and the strategic rationale for the visit pay acquisition.
Before I discuss visiting on detail, let me provide some background on our PX platform when we embarked on our PX shorting of 2016.
Two important ideas in mind, one ease the burden on patients when they access healthcare Inc.
To provide a seamless intuitive journey across all care settings.
At the time of the strategic potential Avi solutions, such as this was clear patients are generally highly dissatisfied with our scheduling billing and payment experience.
And any transformation of the patient experience could potentially be a meaningful competitive differentiator for us as well as for our customers.
Fast forward to today I am pleased to say, we believe we of the most advanced comprehensive technology solution to transform the patient experience, our PX platform of integrated across care settings, ranging from primary care to outpatient settings, such as imaging labs same day surgery all of the way through the inpatient.
Surgery with.
With the acquisitions of Sci solutions and product last year, we significantly enhanced our in house the ability to digitize order intake scheduling registration and the authorization of process, thereby delivering a robust cost effect of digital front door capabilities of our customers as we've deployed RPX.
Solution the customers we've seen several transformative results.
More than 60% of the patient registration of counters for value.
The self service basis, NPS scores are above 75%.
And there will be a tough time spent on administrative tasks.
We've also seen an improvement in collection rates and the decline in the percentage of the patient accounts that progressed. The late stage collection activities that are a well publicized dissatisfied on for patients.
These results have fueled our conviction to continue to invest heavily in PFS. The next logical capability to bring them in house is the technology to modernize the consumer payments ecosystem and health care.
<unk> is the leading consumer payments platform with a proven track record of driving improved payment experience and improved financial outcomes for providers visit.
<unk> makes the healthcare financial experience simple and efficient for both patients and providers in several ways. Let me provide a few examples for.
Patients can digitally view simple modern and unified statements at the guarantor or family level across care settings. This is a critically unmet need in the market today.
The second patient receive coordinated tailored communications throughout the health care journey. These communications, which are driven by machine learning and adapted for patient preference keep the patient informed and in control of the financial experience for.
The deep integrations with both health plans and HSA of pet Straighteners operating uniquely clear and the line 360 degree value for patients for.
Patients receive financing options and anticipate the need for payment flexibility.
Vance machine learning creates personalized payment recommendations that worked for each patient's unique needs, while improving provider revenue items.
And finally with 10 years of curated data from 300 million visits we believe visit pay has the most AI ready dataset for patient payment behavior of vital differentiator for US we think about our proper of investments in digitization.
The patient satisfaction loyalty and retention driven by visitation platform are significant two of the most important outcomes of 40 point of improvement in net promoter score and a 35% improvement in patient yield which is increasingly important given the increase of patient payment mix over the past several years.
By combining <unk> capabilities with our what we expect out of the richest payment related functionality healthcare providers can offer their patients from pre service through final Bill resolution. We're excited about these capabilities, which will round out our PX offering the cover all patient access components, including.
Integrated Orgeron referral management and real time scheduling with booking an appointment comprehensive pre registration preauthorization and price estimation of for patients arrived for the appointment.
Contactless check in and digital pre service forms when they arrive for the appointment and seamless digitized build visibility of payment options pre visit at the point of care and post visit with visibility across care settings and into the payment choices.
We expect to formally launch this comprehensive solution midyear and will showcase it at the HIMSS Conference on August where we will also hold on the industrial event to highlight this and other technology initiatives underway at all once.
In addition of rounding out of our PX platform. This opinion allows us to establish the leading position in the consumer payments area.
Health care consumer debt is arguably the largest and most inefficiently managed liability of our services income.
As we seek to solve high value problems to create a competitive advantage for providers, we can't think of the federal space for disruptive innovation.
And we believe we will be rewarded well for our investments in this area.
Visit pay will also advance our technology platform with both access to a robust dataset to enhance our AI based automation roadmap and patient contact capabilities, which will enable us to reduce friction in the patient access and denials management domains.
R. One will also gained substantial technical engineering talent as part of this acquisition, which accelerates our technology roadmap.
In addition to visit pace impressive standalone growth trajectory. We are also expecting meaningful cost synergies from the acquisition by deploying visit pays deep functionality across the $40 billion of NPR, we have other management.
Over time, we also see significant revenue synergies of note. Our sales team is excited to communicate our enhanced and the end value proposition since much of visit pays installed base lights with large health systems similar to our target based on the end to end customers in.
In summary of the rationale for bringing together our wanted visit face capabilities with spirit for Capella further fueling our conviction for the results at some of our common customers, where we've been able to generate value beyond what either company on a standalone basis would have been able to do.
We believe these proof points of replicable across of our customer base and a broad set of health care providers.
Next let me provide the customer update with a focus on the Ascension agreement and on book deployment activities that might point.
I am pleased to announce the strategic expansion of our revenue cycle services agreement with the assumption.
This expansion can be broadly categorized into the following three areas one comprehensive deployment of our PX technology solution across the acute and ambulatory environments.
The expansion of our scheduling of scope at certain patient facing services through our global delivery centers and third approval around the broader application of technology and use cases for automating key functions within our operations.
As noted in my first point essentially will be standardizing its technology footprint for digital engagement and will now utilize our once complete PX technology solution for both the acute and ambulatory settings of care important to note. This technology expansion also includes the full suite of patient payment capabilities. In addition to the.
The strategic expansion, we have extended our master services agreement with Ascension.
Through April of 2031, we expect this expansion to be net favorable over the term of the agreement relative to our prior contract. In addition of the weighted average contract life for our end to end contracts is now nine years. This gives us a high degree of visibility as we think about making long term investments to support future growth.
Turning now to the life point on boarding continues to progress on the schedule. We initiated the phase one on boarding of January and come out the phase two in April to date, we have welcomed over 700 employees for light points R. One and technology integration for phase one hospitals is currently underway, we expect to commence.
<unk> III in July with the goal of completing all of the deployment activities in mid 2022 on.
On the related note. We're pleased to have bulk of David till <unk>, CEO and president to R. One support deepening our strategic partnership.
His depth of health care expertise and broad vantage point will be invaluable to the company.
Next I'd like to turn to our automation effort. We are highly committed to this effort as it presents an opportunity to fundamentally transform the industry by reducing the latency of inefficiency that exists in the revenue cycle management infrastructure and today the.
The $15 million task, we automated by early 2020 delivered approximately $20 million of EBITDA benefit last year.
We now have 40 million of tasks of production up from 30 million of SPX for the 2020.
These $10 million incremental of tasks cover eight new routines and demonstrate an accelerated development pace the.
The modular nature of our development approach allows us to develop new routines at a faster pace by reusing it added to existing automation.
Additionally, the investments we have made the additional core capabilities beyond just RPI, including optical character recognition natural language processing expert rules of machine learning workflow integration and analytics have expanded our automation coverage of any given workflow.
In closing we remain very excited about our business prospects going forward to recap the key messages from today's call.
Our team continues to perform exceptionally well and this is translating directly to our financial performance with our Q1 results. We are off to a strong start for the year and look forward to continued strong execution going forward.
The market dynamics remain very favorable and we are of high degree of confidence and added $4 billion in NPR from new AD Tech deals in 2021.
<unk> rounds out of our PX platform market, leading consumer payment platform and establishes a leading position in the broader consumer payments ecosystem.
Our expansion of the Ascension agreement is a meaningful validation of our PX technology solution and the extension as net favorable prior agreement.
We continue to invest heavily in automation and the modular nature of our development approach allows us to develop new routines at a faster pace now.
Now I'd like to turn the call over to Rachel.
Thank you Jill and good morning, everyone.
We're pleased to report the strong first quarter results with revenue of $342 6 million $6, 9% year over year, and adjusted EBITDA of $80 4 million up 35% year over year.
Adjusted EBITDA margin for the quarter was 23, 5% of 30 basis points on 19, 2% in Q1, 2020, driven largely by significant higher incentives.
Are you in the first quarter results in more detail net operating fees of $286 1 million increased one 9% of $5 2 million year over year, primarily driven by revenue for new customers, partially offset by anticipated COVID-19 related volume pressure.
On a sequential quarter of basin net operating fees increased $14 7 million driven by continued recovery in patient volume.
Incentive fees of $29 million were up $12 2 million over the prior year on $1 6 million sequentially driven by strong operating execution.
Other revenue of $27 5 million increased 26% for $7 million year over year strength by contribution from Sci interest.
Somewhat offset by lower revenue from condition of advisory services income related volume decline.
The non-GAAP cost of services in Q1, with $242 8 million compared to $237 6 million last year given the.
The costs associated with certain of new customers and on boarding mine.
Importantly, the automation digitization effort for continued to drive efficiency, which helps the cost of services flat sequentially and down 330 basis point year over year.
Non-GAAP SG&A expenses of $19 4 million were down almost 9% year over year, primarily due to lower travel and marketing costs of.
Corporate cost control actions.
Sequential Nathan and G&A costs decreased $3 4 million Q4 results included $1 $6 million of payroll taxes related to the vesting of employee stock of work.
Adjusted EBITDA for the quarter was $80 4 million up 18, 8 million of our 35% year over year.
The increase was largely due to higher incentive fees further magnify, our automation and digitization effort.
Mark.
Lastly, we incurred $13 million and other costs in Q1 related to the rationalization of our real estate footprint ongoing clinical related expenses.
Cost associated with strategic initiatives, including of the Japan acquisition on the capital structure simplification transaction, which we completed in January.
Turning to the balance sheet cash and cash equivalents at the end of March for $103 5 million compared to $173 8 million at the end of December.
The use of cash in the quarter was largely due to the 105 million payment for the conversion of preferred shares to common as well of Capex of $9 6 million.
We generated 46 million of cash from operations in Q1, driven by adjusted EBITDA growth.
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We remain focused on generating strong cash flow from operations and one of our focus areas. This year and to carefully manage our AARP, which increased last year, primarily due to a R associated with the networks and Sci acquisition.
I also expect our other expense line to moderate excluding expenses related to M&A activity.
Net debt at the end of March inclusive of restricted cash with $444 1 million compared to $379 8 million at the end of December the increase was driven by use of cash for the capital structure transaction.
Available liquidity at the end of Q1 with an excess of $130 million consistent with commentary on the Q4 earnings call.
We believe on liquidity sufficient to index relative business on navigating the current environment and on.
To provide additional flexibility to fund the visit to the acquisition.
Intent to refinance our current credit facilities concurrent with the completion of the acquisition and expect improved liquidity and pricing as a result of the refinancing.
Turning to our financial outlook.
Can you to expect revenue of one of our one to $1 46 billion and adjusted EBITDA of $315 million to $330 million for 2021.
Can you to assume the patient volumes remain at 90 day, 95% of pre COVID-19 level in line with our experienced year to date across our customer base.
We expect to update our guidance after completion of within the payout provision.
R Wendell a part of it.
For approximately $300 million in cash and transaction that provide the tax benefit valued at approximately $40 million equating to an effective purchase price.
<unk> $260 million.
So could you assess anticipated financial profile of the growth is strong with greater than 70% compounded annual revenue growth over the 2019 for 2021 period and comes on.
On the very compelling gross margin profile.
Beyond 2021.
The need to pay to be accretive to growth and margin.
Consistent with my comments on our last call. We expect Q2 revenue in the range of 335 for $345 million and adjusted EBITDA of $65 million to $75 million.
As previously noted.
The sequential decline in adjusted EBITDA is largely a function of upfront costs associated with Onboarding the light.
Before I conclude I want to briefly touch on our ESG initiatives.
Published our inaugural ESG report in March.
To have received a lot of positive support and feedback.
The key to enhance the interest of all of our stakeholders.
The commitments that are centered on innovation integrity and income.
Sure.
Ah report can be viewed at <unk> RCM dot com slash ESG and Ali we welcome your perspective.
In closing I'm pleased with our continued execution of delivered Q1 results ahead of our expectations.
The fundamentals of our business remains strong.
The forward to maintain the momentum demonstrations in the line.
As the year progresses.
Now I'll turn the call over to the operator for Q&A.
Great.
If you would like to ask the audio question. Please press star one on your telephone keypad.
On the Star one to ask an audio question. Your first question comes from the line of Sean Dodge with RBC capital markets.
Thanks.
Good morning, and congratulations on that on the quarter.
On on the revenue outlook, Joe you mentioned high degree of confidence in your NPR target, maybe digging into that a little bit more you have said before <unk> been very active on the RFP front, including a handful of several large one.
Can you give us a sense of of how those are progressing on all of them still active had some been decided now and then maybe anything else you can kind of share about the <unk>.
Sales pipeline sales outlook and how we should think about.
You hit net 4 billion over the coming quarters.
Yes, Thanks, Sean.
Just a couple of comments to provide additional color on progression of pipeline. The first thing is I would say looking to your question I would say, yes. The RFP activity is active and we are progressing nicely through the through.
Through the different phases of the pursuit process of commercial pursuit process. The second thing I would say is.
Of our in total active and to add pipeline.
It's up 175% since the start of the year. So we're also seeing we're seeing active opportunities progressed, the later stages, which underpins.
Some of our view on the year and then in totality on the add 10 basis, we're seeing the the total pipeline in aggregate are great grow nicely. So so we continue to feel really good about.
The end to end offering and market receptivity and we're seeing that across the board in and that's and that overall commercial pipeline.
Pipeline.
Mentioning in addition to that.
And I think another indicator of the flexibility we have on our offerings.
We booked.
24, new modular agreements with new customers in Q1.
On the overall revenue bookings was 74% and ahead of our original target.
No.
We could see continue to see drove broad based positive activity at the end market.
And so on.
That's somewhat.
The dimension of that I'd share with you shortly.
Okay, Great and then net.
Maybe along the lines of of what you just announced here with the essentially with the pension and the the complete adoption there now of your peer.
Exclusion, if we think about the cross selling opportunity across the other parts of of your current base.
Can you give us an idea.
What proportion is currently using all of the components of your PX platform on that maybe just kind of how we should be thinking about the size the potential around cross selling into the other parts of the kind of the non Ascension day.
Yes, the way I would.
I would describe that as with with our two probably most mature.
Deployments that being the ascension and Intermountain.
And essentially the inner mountain have have a little bit different strategies as it relates to the digital intake but.
We're pretty penetrated with this announcement on ascension across those two customer basis.
There is some opportunities on the edge, but.
What I would really point to us.
The book of business outside of those two anchor customers, obviously light points.
Sure.
Amit.
Penn State et cetera, and there are there's significant white space for us to expand into and.
As I said.
Increasingly our goal is seamless integration.
Across care settings, so that's ambulatory ambulatory acute and increasingly based on our development Roadmaps post acute setting and then as well seamless integration across the workflow of what I mean by it in terms of workflow. That's the order intake the referral process of scheduling the signals financial clearance.
I E. The registration of create et cetera that process and then finally the payment.
Process, so that that overall value prop.
Is resonating and we see we see strong.
Strong receptivity to that and our captive and on customers.
Okay. That's very helpful. Thanks again.
Great. Thanks, Sean.
Your next question comes from the line of Donald Hooker with Keybanc.
Great Good morning.
I understand the acquisition of visit day, but I was curious if you all could provide any detail on visit paid financials itself like what exactly are you acquiring for actually just the company the.
Kind of what kind of revenue should we start building in an EBIT is our other large EBITDA losses can you elaborate on some of the financials of the company aircraft.
Yes, what I would say David is I will just use the full your kind of kind of basis. So we look to if we look to 2022.
We would expect this business to do about.
$41 $42 million in revenue.
And we would expect it to contribute.
Conservatively $7 million to $8 million on EBITDA as Rachel mentioned in her commentary this business has been growing.
At 70% compounded over the trailing three years. So it has got a very high growth profile.
And it's got a very compelling.
Gross margin.
Right.
That comes with that growth.
But maybe equally important on there are significant what I'll call captive operational synergies and what I mean by that is that's where we're not dependent on the external markets for growth.
We're just to a large degree in control of fully deploying the visit paid platform across our contracted book of business and those synergies come in the form of.
Digitizing.
The interface with with the patients around the payment process, which allows us to lower our cost structure for <unk>.
Second thing is improving the yield.
All of which contributes to our Kpis and the third thing is we think overtime. We will we will be able to materially shift on to the visit paid platform digitize the statements or online bill presentation and today, we are of significant amount of cost.
That still exists in print statement of operations somewhat tactical but.
Without a doubt on from our standpoint of synergy that we are of high degree of confidence in the.
The collective the.
Collect the bulk of that is.
Its probably at maturity more than twice visit page 2020 to contribute to EBITDA. So when we roll all of that in not even counting for net new growth. We think we can go get we think on the synergize basis with.
With only assuming.
Our operating control of synergies. This is a very accretive transaction for us.
Got it Okay fair enough.
The future very strategic technology.
The capability in the eyes of the upmarket.
Got you I mean, just to be clear so theres there the synergies, which makes a ton of sense it'll probably plays into your P&L over the next few years and then just on a standalone basis, Youre, saying 41 $42 million of.
Revenue next year, obviously high growth I mean, just to be clear guidance.
Yes, growing up 70% trailing net growth will come in as the business growth.
But it's still in any scenario of going to be from our standpoint looking out past 2022 off of that basis of very high growth business on a very high margin business.
Sure and then maybe just as a follow up also would love the here and visit pay has been around for a while I think I'm just looking at the not familiar with them obviously.
But it looks like they have some nice logos on their website.
Of different health systems, they work with some of which are RCM.
Clients on how much or not.
Can you just talk about kind of any any maybe client introductions or kind of overlap or what their client base looks like.
Yes, so what are the things that we looked at the difference.
The difference.
Targets of the patient paint the ecosystem one of the things we really liked about visit based platform is they've actually.
Sure.
Some of the most sophisticated health systems and you can see that on their logos as you referenced on and from our vantage point, that's a really important capability demonstrated capability that we liked about their profile, we know how hard it is to.
To serve some of the leading health systems.
And those are health systems that are run very very well. So when you see of technology thats driving incremental improvement whether that'd be on the patient experience or in the financial outcomes.
It is a true proof point from our standpoint.
Two of the.
To the leading position that visit.
That's the first point the second point is right. After this call. We've got some probably 'twenty calls with prospects meeting not current customers, where we're really excited to introduce.
This acquisition of talk with those potential net new customers.
The enhanced value prop, we're bringing to the market.
And that's an indication dawn of of some of the growth synergies that in my prior comments I didn't even include but we do think there's potential over time for those to be significant of potentially outweigh the captive.
The operational synergies that we used in our underwriting case.
Great sounds interesting good luck and thanks for taking my question.
Thank you Don.
Your next question comes from the line of Stephanie Davis with SBB Leerink.
Hey, guys. The Echo my congrats on a very busy quarter.
Except for China.
Following on the last question I was hoping to hear about how you chose if we could pay among the many payment providers on the healthcare Canterbury and then given some of your prior investments on the patient experience platform, what 90 day closer Goodbye opened Dallas.
Yeah.
The.
One of the things as I mentioned on one of the factors for us choosing visit pay.
Was there of demonstrated value prop into our target customers. So again.
That was without a doubt of factor.
In terms of.
In terms of our calculus.
The second thing is we.
<unk> had an opportunity over the past couple of years.
So to have a part by cell partnership with the visit they know what I'll say is we have not taken full advantage of that.
Just because of all of the priorities.
We've had ongoing.
<unk> deployment of growth and absorbing.
All those things, but we know we don't view of that partnership and we saw firsthand the results that we could generate.
The third thing is as.
As we got into deeper discussions with visit Bay.
We were really really impressed with the human capital or the talent. They have on the company and I would particularly emphasize along the following three lines other growth.
The sales team and their channel for growth. The second thing is they are marketing in some of the commercialization and product position skills that they have and then finally and most importantly was the technology development profile.
So talent was the was a big factor for US and then the third of final thing is really just.
The advanced.
Analytics and algorithms they have around serving the patient with very tailored for.
Financing options and we think that's a key differentiator above and beyond just a bill presentation platform, which obviously is very very important but at the end of the day those deep insights and the analytics that they've built over the past 10 years, we think are compelling and differentiated to their peers.
Understood the kind of bad.
<unk> been developing capabilities going forward as well.
Yeah, I don't think.
I think we are in.
Sure.
In really good shape from.
Depth of capability in every one of the workflow steps were R.
Call it organic investments have been on our kind of continued to be our around the deep integration.
Across the process flows so across that workflow continuum and deep development work to ensure we seamlessly integrate.
Across care settings, So I've mentioned ambulatory and acute that was a big strategic driver in our discussions with the sanction and then I would say looking forward, we anticipate making significant investments.
Organically via our technology teams around extending not workflow continue on into the post acute setting of care, which we think there's a significant opportunity.
And then the final thing is.
From our standpoint off of the PX platform, we think Theres, a very logical extension of some of these services.
Better serve the clinician or the provider.
So those are some areas on our internal development roadmap looking forward that we're very focused on.
Just one last follow up for me just given this acquisition and the extended extension contract how does it change your relationship with Frazier if at all and do you know if the extension is still interested in expanding the hardware component.
Kind of the change and he was on that with COVID-19.
Yes.
Really don't want to get into it wouldn't be within my perspective to get into essentially strategies from the standpoint on the hardware.
But I would sort of what I would say is.
We're very focused on solving.
Very complicated.
Problem, which is that I'll keep referencing the the integration the seamless integration in the eyes of the patient across care settings on across workflow and for us to solve the problem. We have to go very deep on the integration of technology and that underpins kind of all of our bias on our app.
Now there will be different personas of customers and there will be customers that don't necessarily want to embark or theyre not prepared at this point in time to embark on that journey and they just need a a very compartmentalized solution side, So I think I.
I think our focus and what I would draw your attention to is our focus is along those lines and and we feel and we're hearing from our current customers as well as target customers, who buy our own admission of the larger kind of integrated health systems that they really would like us to bring that value props for the market and so that's.
That's where that's where.
Our internal efforts live which is which is maybe not the same that market as.
Some of the intake.
The company's.
That is the Super helpful clarification, Thank you and congrats again thanks.
Thanks, Stephanie.
There are no further questions at this time I would now like to turn the conference back to <unk>.
Joe Flanagan, we do have a question I'm sorry.
Yes.
Go ahead of genes.
Joe Good morning, everybody.
And congrats on this quarter did you talk about the client overlap with visit pay in particular, the maybe quantifying the market opportunity of cross selling.
Into your base and vice versa, excuse me, maybe RCM into their base.
<unk>.
The up to this point do you have any of your own patients functionality that maybe is going to be replaced either self developed with your script library or are your customers generally using third party applications for this function now thank you.
Yeah. So.
So let me first cover just give a little bit more color on client overlap.
Visit page serves inner mountain. So so we work with them and that in that setting and as I mentioned before there are partially deployed out of ascension.
We will fully deploy the platform at essentially other than in our cap the book of business outside of those two anchor clients.
The significant white space for us to deploy now as part of that deployment.
We will be displacing third party patient came of platforms that exist in that third party spend that with our contractual.
Contractual frameworks and transition to our control and that's very much in line with the comments that I've had in the past, where we have an internal technology platform and we have very broad coverage of the process with our captive technology, we displace an in source integrate and simplify.
For for our customers their technology ecosystem and that will occur with dissipate. If you look at visit pace outside of.
Primarily inner mountain.
And you can see some of the logos on their website, whether that'd be of Nova poorly in the clinic.
The guidance singer Henry for you starting to get a sense.
From our standpoint, they've done the hard work of.
Of trying to kind of trade, the leading integrated delivery systems and that's.
That's squarely in our strategic focus from a growth standpoint.
It's early innings, we're just starting the process, but I'm generally optimistic that those discussions will receive well then we'll have a lot of focus from our commercial teams.
To curate.
These relationships and look to convey the value on a broader basis that we can deliver.
The partnership.
So that's how I would characterize Jim kind of the the spectrum of of call. It installed base of client potential synergy.
Very helpful. Thank you.
Thanks, Jim.
Ajay if we if we don't have any more questions. Just the thank you for your help today moderating the call and thanks, everybody for joining US today, we are very excited about the developments.
Of that we're announcing and I look forward to updating you on progress on an ongoing basis in future calls. Thanks again for all of your participation.
Thank you for participating in today's conference call. You May now disconnect. Your line at this time.
Yeah.