Q2 2021 Greenbrook TMS Inc Earnings Call
Welcome to the Green broke T M S Inc.
Second quarter 2021 results conference call and webcast.
All lines have been currently on mute to prevent any background noise I would like to remind you that this conference is being recorded today and is also being webcast on the company's website at Www Dot Green Brooks T M S Dot com.
Under the investors section event after the Speakers' remarks, there will be a question and answer session analysts and investors are reminded that any additional questions can be directed to the company's at.
At Investor Relations at Green Brook T M and dotcom.
This call contains forward looking statement, which reflects the current expectations or beliefs of the company's based on current available information.
These statements are subject to a number of risks and uncertainties that may cause the actual results of the company to differ materially from those discussed in the forward looking statement.
Factors that could cause actual results or events to differ materially from current expectations are disclosed under the heading risk factors in the company's annual information form dated March 30th 2021 and in the company's M D and age for the period ended.
30th 'twenty 'twenty 1.
Which are available on SEDAR, Edgar and on the company's website.
Any forward looking statement speaks only as of the date on which is made and the company disclaims any intent or obligations to update any forward looking statements unless required by law.
I would now like to turn the meeting over to Bill Leonard President N C Channel Chief Executive Officer of Green broke T M S and earns load Sir.
Chief Financial Officer go ahead Mitch.
Mister Leonard.
Thank you Adrian and thanks to everyone for joining our conference call and webcast today.
We're proud to announce our highest quarterly consolidated revenue results to date with 40% year over year growth over Q2, 'twenty 'twenty and 21% over Q1 'twenty 'twenty 1.
This quarter, we achieved a return to entity wide regional operating profitability driven by a record high in treatment volume in new patient starts.
Quarterly treatment volumes increased by 37% to a record high of 58219 as compared to Q2, 'twenty 'twenty and 12% as compared to Q1.2021.
New patient starts increased by 36% to a record high of 1659 as compared to Q2, 2020, and by 40% to 3242 and year to date 2021 as compared to year to date 2020.
From a development perspective, we added 1 new active Tms center during Q2, 2021 with an additional 7 Tms centers and development, bringing the total company network to 129th Tms centers as at June 30th 'twenty 'twenty 1.
This is up from 125 in Q2 of 2020.
We expect to return to our center growth strategy through the remainder of 2021 as we begin to move forward with opportunities that were previously paused or delayed by the COVID-19 pandemic.
We are also particularly pleased with several other milestones for the company and the industry.
We successfully rolled out our <unk> pilot program and continuing to build on our long term business plan of utilizing our network of Tms centers as a platform for delivery of innovative treatments for M. D D and other mental health disorders, and a community based setting.
We're very pleased with the progress made in the strategy through this rabato pilot and are excited to continue to develop this program.
Based on these promising findings, we expect to expand our offerings rabato to additional 8 Tms centers, bringing our total to 13 Tms centers now offerings provide O.
We will also explore opportunities to utilize the buy and bill billing method and explore operating rabato using mid level practitioners, such as nurse practitioners or physician assistance.
Where possible from a regulatory perspective, these mechanisms could potentially enhance the economics associated with the delivery of <unk> at.
At the same time, we continue to collaborate with device manufacturers to expand the range of indications for Tms.
Finally on June 14th 2021, we completed a non brokered private placement of 2.3 common shares at an operating price of $10 million per common share for aggregate gross proceeds of approximately $23.5 million effectively strengthening our balance sheet.
And now for a more detailed review of the company's financial and operating performance I will turn it over to our CFO Eric <unk>.
Thank you bolt on.
As Bill mentioned quarterly revenue increased by 40% to a record high of $13.7 million as compared to Q2, 2020 and by 21% compared to the Q1 'twenty 'twenty 1.
Year to date 2021 revenue increased by 18% to $25 million as compared to year to date 2020. This is predominantly due to a record quarterly treatments performed in Q1, 2021as market conditions continue to normalize after the initial onset of Covid the COVID-19 pandemic.
We also saw increase in reimbursement rates from certain day is do we have long standing relationship with in our more established on regions, which confer the contributed to this growth.
Average average revenue beat but normalized at $2.35 in Q2, 2021, which represents a 2% year over year increase compared to Q2.2020.
Year to day 2021 average revenue per treatment.
Treatment decreased by 3 percentage to 227 as compared to 230.18 year to date 2020. This was predominantly attributable to the adjustment to variable constant race consideration as I've said.
Offset by favorable payer mix and higher average reimbursement in Q2 'twenty 'twenty 1.
Same region sales growth was 38% in Q2, 2021 and 16% in year to day 2021 the.
The increase was.
Primarily due to the increased revenue as market conditions continue to normalize.
Moving to regional operating income Q2, 2021 marked the return to entity wide regional operating profitability.
The wide regional operating income was 900000 in Q2.2021 as compared to the entity wide regional operating loss from 200000 in Q2.2020.
This was predominantly attributable to revenue growth rate of 40% in Q2.2021 would you eclipse.
Direct center on regional cost growth rate of 28% over the same period.
The continued development of CMS centers bid with revenue growth within our existing regional cost structures enables us to leverage these costs towards increased entity wide regional ultimate operating profitability as we continue to scale.
Year to day 2021 results.
In an entity wide regional operating loss of 600000.
<unk> thousand as compared to entity wide regional operating income of 5 on involved within yesterday 2020, the entity wide regional operating loss year to date is primarily attributable to an adjustment to variable constant rates on estimates due to the continued impact of COVID-19 pandemic on payer processes.
This was increased by this.
This was paired with increased marketing spend in Q1.2021 to lessen the impact on the COVID-19 pandemic on our operating metrics on the increased momentum as the market conditions began to normalize.
Zero the aggregate corporate costs increased 84% to 5.8 million for Q2.2021 as compared to Q2.2020, primarily as a result of cost associated with professional and legal fees related to the equity financings.
On a normalized basis year over year corporate costs increased by 61%. This is predominantly driven by cost associated with listing all common shares on the NASDAQ.
Including compliance regulatory insurance on order related professional fees and also the normalization of spend relative to the Gulf curtailed COVID-19 related spend and the comparative Q2.2020.
Net loss for the period on comparable year ends of loss decreased by 31% to $6.7 million during Q2 'twenty 'twenty..1 this was predominantly due to our record quarterly revenue achieved in Q2, 2021 offset by professional legal fees related to the NASDAQ listing and equity financing in Q2.2020.
Also to consider we recognize the inauguration in connection with the achieved Tms acquisition, but did not occur.
Occur in Q2, 'twenty 'twenty 1.
As a reminder, we were more than happy to do that the achieved centers performed well as we expect to enjoy the benefit from net performance in the future.
From a balance sheet perspective, the accounts receivable balance remained stable as of June 32021, we had approximately $19 million in cash on hand.
Moving on to our core operating metrics.
As of the end of Q2, 2021 that <unk> Gms Center active Tms centers increased by 8% to 122 from 113 a year ago.
Total centers grew by 3% year on year over.
Yeah.
As Bill mentioned, we expect an acceleration in development through 2020.1 as we begin to move forward with opportunities that were previously paused or delayed while the COVID-19 pandemic.
Compared to Q2 'twenty 'twenty. The number of consultations are formed increased by 70% to 3533 number of Tms treatments performed increased by 37% to a record of 58219.
And the new patient starts increased by 36% to a record 659 comp.
Compared to Q1, 2021the number of Colonsay. Its consultations performed remained relatively flat as we focused on more specific thoughts on generates a higher quality lead.
The number of Tms treatment performs increased 12% on new patient starts increased by 5%.
All leading indicators remain strong which will promote future growth despite not moving into it as a typical slower summer season.
Back to you Bob.
Thanks Terence.
As I mentioned, we produced our highest quarterly consolidated revenue results to date driven by record quarterly treatment volumes in patient starts we achieved a return to entity wide regional operating profitability and we experienced a record quarterly high in new patient starts all of which speaks to our sound business fundamentals and we believe positions us well for future growth.
We're also very pleased with the results of this bravado pilot and look forward to expanding that program.
Mental health remains a key focus on the U S. With recent examples of professional athletes speaking out on mental health issues. This shows that mental health awareness continues to grow shifting away from the stigma surrounding mental health issues. According to the CDC. After the onset of COVID-19, pandemic approximately 40% of U S. Adults.
Portage, drawing with mental health or substance abuse, making access the Tms therapy and other mental health treatment modalities.
More essential than ever.
We believe these factors will continue to drive market growth.
Our business is position is stronger than ever to take advantage of new Tms indications, new treatment modalities and new expansion opportunities both through organic Tms center growth and M&A. We have now treated over 19000 patients with over 675000 treatments performed a significant positive impact on the lives of so many pace.
<unk> suffering from mental health disorders.
We look forward to keeping you updated on the progress of the company throughout 2021. Thank you for your time today and with that operator, we'll now take questions.
As a reminder, if you would like to ask a question via the phone. Please press star 1 that is star 1 for questions. We'll pause for just a moment to compile the Q&A roster.
Yeah.
The first question comes from the line of David Newman with <unk>.
Yes, John its capital.
Good morning, gentlemen.
Yeah very good housekeeping.
Great. Thank you excellent. So youre initially started targeting 140 centers by mid year on year at $1.29, and I know corporate Covid was a bit of an impairment on on getting on it.
And now you've sort of sort of the balance sheet with the with the private placement. So maybe you can just talk talk to us a little bit about.
On what your organic and inorganic plans are and I know, there's a couple of areas you're really kind of are looking at California, and northeast U S and and how you densify the foot print in and leverage what you've got so maybe you can just talk about now that you've kind of got all of that behind you lost out COVID-19 not behind us yet, but what your plans are sort of on the back half, which you sound.
Very excited about.
Very much. So thanks for that question, Yeah, we're not quite at 140 centers, yet mainly due to a timing issue. However, we are we were a little bit more conservative due to COVID-19, but we remain extremely bullish on our pipeline and expect to be in the range of 150 centers by the end of the year.
Okay, and then whatever those jurisdictions. They those other jurisdictions that you are looking at bill in terms of debt, maybe in organic growth like California, and northeast U S has the pipeline on M&A kind of thing.
Our strong pipeline it continues to be a strong pipeline as we talked about before when you look at our business model in terms of expansion it really going to come from a couple of key areas..1 is M&A opportunities. We do target locations that have multiple centers and play both regional players in more of a corporate provider that somewhere between 15.
On to 'twenty 5.
As part of our growth strategy, we still have only 50% of our centers are so.
2 years, our age we need to add density to in those locations locations like Michigan, Florida, and obviously take advantage of a great platform on California. So I think youll see a combination of growth through a couple of various pipelines got it and you look at your sort of Oxford funds that you had there that kind of help you kind of get to the next day sort of.
On acquisition had 15 million delayed draw term loans I know you have 3 tranches of $5 million.
You can access access it right now according to the release, but what what does it take to sort of get to the first tranche. They couldn't get them to help you with sort of inorganic growth.
So theres a few a few requirements on.
<unk> to that on the.
The main 1 being EBITDA targets.
And as we've always said, we aim to be kind of EBITDA profitable.
Kind of midyear mid next year.
And that's kind of as a as a prerequisite in terms of accessing the debt additional funds. So we don't we don't anticipate axes.
<unk> seen them over the near term, but it would certainly be helpful kind of in a kind of a 12 to 18 months away period.
Excellent that's very helpful. And then if you look at sort of you know kind of moving.
Past Covid here and the number of obviously people reporting mental health issues et cetera, and but the depressive disorders have seem to have declined a little but as we kind of emerge from from Covid in vaccines and arms and things on things like that.
But yes.
They move past first line treatments I think bill you sort of alluded to that the pipeline still looks very very strong and maybe just you know a reduction a stigma associated with mental health I mean, as you look on a pipeline how does it look you talked about younger demographics and things like that how does the pipeline look.
As you look into the back half of this year and on into 2022.
I'm still significantly big I mean again, we've always talked about in the past there's already an underserved population that just grew.
Based on the pandemic the stigma is no longer really out there anymore. I mean, if you just recently watched the Olympics you saw Simone Biles talk about it and you saw Michael Phelps support her in his conversations on more than ever you have more people talking about it I think we are still working through COVID-19, but at the same time, when we looked at our numbers.
And for Tms therapy, there was at $1.6 million patients that were probably eligible for Tms therapy.
And that was before the pandemic. So I think right now there you have you have people that are still suffering from depression, but theyre also for the first time in 2 years enjoying taken a family vacation, having the grandkids visit the grandparents and Theyre taking advantage of that at this particular moment, so I think.
<unk> still remains extremely strong and obviously mental health continues to be underserved on all time high excellent. Thanks, Jeff I'll handle the line, but good traction here.
Thank you.
The next question comes from the line of Noel Atkinson with Clarus Securities.
Good morning, Bill and earn so well done in the quarter and thanks for taking our questions.
First off just a couple of clarifications here. So in terms of the new sort of outlook for a range of 150 centers by the end of 2021 is that active plus development centers.
Yes.
Yeah.
That is active in development.
And so on.
You mentioned in your comments on the previous question.
Are you still targeting sort of mid 2022 for positive adjusted EBITDA on a quarterly basis.
Correct.
We still guide towards that.
Okay great.
No.
Can you give me a number of clinics that are currently open and active.
100, 122 is currently active with set on that remains in development.
Okay. Okay.
Okay. It Hasnt changed since June 30.
Well, we always talk to you too.
June 30th so on.
I believe there's 1 more that's become atkinson's.
Okay.
The $2.35 per treatment average range.
A really strong improvement quarter over quarter, you're back to sort of pre COVID-19 normalized levels do you see any more potential improvement in the pipeline in the near term.
I think there's 2 factors that really contributed to that as you saw we still took adjustments will variable consideration on.
That obviously declined as a percentage of kind of the call.
Call It gross revenue.
So that's 1 factor that contributes to that and then.
As we mentioned we've made significant investments in our billing and reimbursement team and they've done a great job at getting high reimbursement from some established players. So that is kind of kind of priced into the true city 5 I think we will stabilize at that level.
What potential upside as we as we kind of continued negotiations with payers on on.
I'm trying to get better rates.
Okay.
But for the moment the uplift should that should stabilize.
As it was pre COVID-19.
Perfect.
And then there was quite a significant quarter over quarter slowdown in local marketing expenses. In Q2 is that sort of a 1 time expense or is that a decent run rate.
So I think that's a decent run rates I think you'd see a we kind of.
Call it abnormal spend both in Q4 last year on in Q1 on that was really a product of maintaining lead flow and on some additional markets.
Marketing relating to Covid and then in Q1, we really wanted to take advantage of normalization of the market on the momentum. So we spent a little bit more.
We normalize that so so.
Kind of a more expected rates on a quarterly basis.
Okay, great I'll get back in the queue. Thanks very much.
Again, if you would like to ask a question press Star 1. The next question comes from the line of David Martin with Bloom.
Bloom Burton.
Yes, hi, guys.
Or to go back to the question about that from 35 per treatment.
No you said that there is still some adjustment down the variable consideration.
Because of delays on some of it linked to Covid and some of them on to the new way, you're billing, which ultimately will prove to be positive, but I also thought you were going to be collecting some of the age receivable.
Receivables from Q4, some of the payments that you didn't receive that you'd be collecting until this year. So I'm trying to figure out in Q2 was the positive effect more than the negative effect and ultimately.
These other factors weighing on where would your revenue per treatment to be next quarter.
So I mean, the if you if you look at the year to date rates I mean, that's probably where it would have been without the without the.
Kind of a positive uptick.
The adjustment from variable consideration as we as you mentioned, we continue to collect on the aged receivables and that percentage.
I see.
<unk>.
<unk> revenue continued to ratchet down on which would stabilize reimbursement rates, but a lot of a lot of that did uptick in in Q2 also had to do with positive traction as we as.
As it relates to pay us on on.
Which will be our go forward benefit so yes in terms of day remains remains upside as it relates to collections on older All day or.
But all of that I had the low percentage a provision in Q2 already reflected some of that.
So for the second half of the year should we be modeling $2.35 per treatment or.
A bit lower but higher.
I mean, I think I think as I mentioned to you know at the moment because the expectation is stable on with with potential upside. If we as you mentioned continuing to collect on aged receivables.
Okay. Okay. Thank you.
The next question comes from the line of Tania Gonsalves with Canaccord Genuity.
Good morning, guys. Thanks for taking my question on that first off.
On the salaries and wages line.
And it seems like there was a pretty material uptick there.
Florida, just wondering if this is from salary run rate or if there is some kind of bonus or anything in there that I'm not.
Counting for.
And so so important to nodes on in terms of the comparative quarter was obviously.
The growth rates of the comparative quarters, not really comparing apples to apples.
We're in the midst of COVID-19, with with the quota curtailment and spend on unless head count them on all fronts. So so that's 1 thing to consider.
As it relates to kind of a normalized rate.
We've invested fairly heavily in kind of the billing reimbursement.
Function.
Which which is obviously as you said yielded results. So a good return on investment there.
There may be some efficiencies going forward.
Are there also maybe some efficiencies as it relates to the integration on the cheap achieve Tms.
Tms integration.
Obviously, we also become became a dual listed company on and that comes with a significant additional investment in people, including HR compliance and as I mentioned the revenue cycle. So I.
I think this is this run rate is kind of what we can expect but definitely stability as it relates to not growing at the same rate going forward.
Thank you.
And you mentioned.
The expectation that you hoped EBITDA positive around mid next year any idea on when you can start.
And you'll start seeing free cash flow.
When possible.
So I mean, that's kind of a protocol working capital cycle, but you typically you will see that followed followed kind of 2 quarters or so after.
Okay.
And then last question from me the conversion range.
Consulting team that with patients is pretty healthy.
Dorothy you guys been able to do over 50% conversion and it's been kind of a little bit lower because a lot of the concept of happening on line without shifting back to.
In person.
Or do you think that conversion rate has the potential to go back about 50% any cell line.
When do you think that could happen.
Yeah, I do think that has the ability to go back up Tanya, but I also think we're seeing a patient.
That is a little bit more unique in a sense that were getting phone calls for kind of general site because a lot of the offices are still not open and still dealing with with with Covid situations. So some of the patients that are coming into the pipeline or really not candidates for Tms therapy, yet, but we still want to see those patients. So that we can put them in our pipeline.
Assuming they don't get better with first line treatment. So I do think there is upside potential as that patient begins to kind of continue to go through there.
What I would say eventual felt med cycles.
That's all from me. Thank you so much time line.
The next question comes from the line of Justin <unk> with Stifel G. M P.
Hi, Good morning, Thanks for taking my call I just had a question on debt.
Hi, I had a follow up question on the operating leverage to the business. We saw on some of that take place in the current quarter on the higher sales and the EBITDA loss was narrower than what we were expecting in <unk>.
Just on the comment of achieving positive adjusted EBITDA mid next year are you able to give any parameters around how many centers that would entail or target revenue range at which point, we could see that positive EBITDA.
So I mean, we haven't given guidance on on revenue. We obviously expect to continue our revenue growth trajectory as you mentioned, how do we get to positive adjusted EBITDA, There's operating leverage both in kind of a.
Regional cost infrastructure, so you'll see on increase in an original operating income.
And then a stabilization of corporate and G&A. So that's really what's going to drive on the.
The.
The positive EBITDA and we continue we would expect to continue kind of all current growth trajectory.
Okay, if I can ask a different way at 150 centers.
With the business be able to achieve positive adjusted EBITDA.
Yes, I mean, the answer always is we can at 150 centers. If all we wanted to do is just 1 on 150 centers, we can certainly run the business.
Certainly.
In terms of we will we as Bill mentioned, we will be in kind of a 150 range, we expected to be on that on the 50 range by by year end.
But we don't we know what's going on we've got more operating leveraging that what the plan is not to stop but on a run of 50.
But obviously continuing to flow grow our business significantly and there's obviously costs associated with that so if you do to answer your question on the record yes, we can run the business, possibly 150 centers, what you will see in terms of.
The evolution of the model is we will we will continue to have a little bit of operating leverage on.
On the regional basis, as we as we add centers and we wait for those centers to scale to profitability.
Does that answer your question Joseph.
That's very helpful. And then I had a question on the US provide oh pilot the expansion from our 8 centers to 13 and it's based on some promising findings on I'm wondering if you could just provide some additional context on what the Kpis that you were looking at you know to warrant the additional expansion.
And then and what Kpis are will be monitored for the additional clinics to perhaps expand it because you know even in a more material way across the entire network.
Yeah, Great Great question Josh.
As we talked about the focus now is expanding the offering and moving from pilot to the beginning of a rollout to various centers within regions to cover that patient care needed. What we were hoping to validate really in the pilot was kind of a reimbursable product capturing a wider range of patients. The network response in terms of.
Continuing to send patients and obviously you center utilization.
The revenue per treatment is slightly higher with rabato utilizing the administered observed method.
But obviously with changes to our model potentially in terms of regulatory standpoint, we really feel we can move to a more favorable position as well. So everything we saw on the pilot we're thrilled with we had the opportunity to <unk>.
Attract patients to obtain more revenue in that particular patient from prior non responding Tms patient we were able to capture someone further along on the depression line. So we liked what we saw this Roberto and we'll continue to kind of ramp up the offering.
Thank you are you able to disclose the number of patients that you have served a witch rabato so far.
We didn't disclose that it was enough for us to get our pilot results and from our standpoint keep in mind that when we launched our pilot we still haven't turned on a faucet either we have not sent out are kind of educators into the field to call on doctors to discuss the operating for Green Brook for both Tms horse bravado, we have not done any direct to consumer approach with us.
Bravado, yet so really a significant upside in terms of <unk>.
To provide on gaining more traction within our model not only was kind of getting the word out but also more center openings.
And when do you turn on that faucet.
It's a couple of things 1 is the fact, we're really working towards.
A greater goodness on the factor from a railroad Tory standpoint, I'm really trying to get to the next level in terms of that higher reimbursable opportunity for me, it's like really getting our Brazil business and position was <unk> for 2022 to kind of start to make an impact on our patient care.
Understood and thank you for taking my questions.
Thanks, Jeff.
We have a follow up question from David Martin with Bloom Burton.
Yes, hi, thanks for taking a follow up.
As far as for vital on you mentioned you could change the model to enhance the economics right now is the profitability of administering as providers similar in line with Tms or higher or lower.
So as bolt said kind of the reimbursement is a little bit higher if you look at it from a global treatment the patient perspective on the.
Contribution is very economic very similar to Tms.
What it obviously does for us from enhancing the economics of a center is the sporadic patient is less sensitive to the timing of which they come in as we've previously said on CNS patients like that morning session.
Lunchtime station in late in the day, because they typically are working patients drive themselves to and from the center on what's provider does it enables us to kind of utilize that additional capacity and the lower demand times and.
Adding contribution on.
What that effectively on the hunting the economics from the center.
Okay.
On the other question is they are forecasting.
<unk> adjusted EBITDA breakeven positive mid next year.
If you accelerated your growth plans.
To a higher number of centers in your plan right now.
That delay it or do you have a big enough piece right now you could offer and you'll get to this breakeven point mid next year regardless.
On that really like as mentioned suggest then that really depends on the velocity of expansion. Obviously as you add organic new centers those take time to ramp to profitability. So that will kind of erode your original operating margins. So if we really turn on the on the on the pedal on develop organically debt.
It will delay the adjusted EBITDA breakeven point kind of at all at all as I mentioned that our current plan velocity on breakeven is on the 20th century.
Okay. Okay. Thank you.
You have a follow up question from David Newman with <unk> Jordan capital.
Hi, guys. Just a quick follow up I think the question has been framed a few times just on the breakeven EBITDA, but I'm looking in mid 2022, but if you look at you've got this relationship or partnership beside them on.
On psychedelic and obviously a lot of promise there and then if you look at the bravado as well and kind of smoothing out I'll call. It your day part almost like a restaurant.
And trying to keeping the leveraging or on your operating leverage there in terms of your cost structure et cetera. I mean, what are you guys thinking in terms of turning these centers into sort of had a holistic mental health centers.
Centers, where you're you have to provide oh, you've got perhaps psychedelic you got Tms therapy.
What is your sort of targeted kind of bravado is it still 30 centers for next year mid next year. What are you doing to decide in a partnership and where do you want to take this such that it sort of drives that EBITDA.
Great question, David obviously from our standpoint, as we talked about before we never got into this business to be only Tms, we think there's some great opportunities for unique delivery.
Platform and our unique delivery platform to offer kind of both Tms bravado on psychedelics when ready we're excited for the collaboration with Simon it's probably a little bit too early to talk about how that's going to impact our bottom line, but what we are working towards as a company is when someone is suffering from depression OCD who is fair.
Drug treatment, we want them to think about green broke as the place to go we have great doctors, great staff, who can deliver a great patient experience. We've always wanted to be that place that offers all of this so that is what we're working towards what we're working towards is the fact that as I said before we don't need provider or <unk> or psychedelics. It at every.
Single office, because the patient does not have to come on a daily basis, but we will continue to build towards those 30.40, and we don't want to put a number on it yet but centers of excellence, who can how that and really create that special patient experience.
Okay, and that's great and is there any other things that we're not thinking of that you could kind of bring in tier service offering other alternative treatments like a week I'd be covered it off or is there something else out there that we should be thinking about.
No I think we're always open to other potential opportunities on our marketplace such as Alzheimer's.
Treatments, but right now we continue that we have a great Chief marketing Officer continues and Chief Medical Officer continue to look at those opportunities for us what we do think we do really well is again that patient experience at the center level, great doctors, Great staff, we think we can add different product lines into it.
Do I think it will vary from mental health now no, but I think the pipeline continues to grow with mental health and not only just from newer treatments, but also the indications from the current manufacturers that are in development that will expand on kind of again Tms we.
We can do this without adding additional kind of significant costs our model, our SaaS capable and so we're thrilled with our position to be that unique delivery platform in a community based offering to kind of have that person thinking by green brick to help them in this difficult challenges perfect. Thanks Bill.
Your final question comes from the line of Noel Atkinson with close security.
Thanks for the follow ups.
I just wanted to confirm.
So for a patient visit first provider delivery without the buy and bill.
Green book would hopefully be receiving over $235.
That's correct in terms of it's a combination of codes, but for that treatment essentially the treatment with a physician on the 2 observation period.
Okay.
Okay perfect.
And then.
Secondly.
What do you think your Tms capacity utilization is right now across the overall cleaning portfolio.
So I'm looking at that we generally operate at about a 70% capacity and as we grow because we generally and renew our region, especially add new centers, when we get to that capacity on with Covid and some some scalability solar on incentives, we probably just below that on a global basis.
But we generally target about 70.
We can be at a 70.
As a percentage utilization as a normal company with a mature Tms centers operating at about 80%.
But that capacity utilization is there a inherent inefficiencies in tons on scheduled scheduling as I as I mentioned earlier.
Okay, Yeah, I think from my perspective.
We're still dealing with a market that is still being impacted by COVID-19.
Were announcing record quarters that continues to show our ability to perform in a tough environment I can't wait to see what we're capable of when normalcy returns so in terms of utilization.
And then just finally from me so on OCD.
<unk> talked about this earlier I apologize, but.
There's been really pretty good initial reimbursement activity from Greens away for OCD.
Are you seeing for treatment volume there in patient interest level that sort of thing.
Yes, I think there is definitely patient interest we are starting to see the reimbursement pipe line.
Definitely support providers in terms of providing care for that OCD patients.
I still think there is possible enhancements to that policy on the reimbursement, but I think it's a great start for brain's way in terms of starting to get that coverage coverage is limited right now in terms of the number of payers covering it but I do think it's a great first step and I expect most of the payers to follow so again another platform that can get added to our center in <unk>.
As a indication that is reimbursable.
We will benefit from without any additional kind of.
Staffing needs great. Okay. That's it from me thanks.
Yeah.
I will now turn the call back over for closing remarks.
Well, thank you everyone for coming out.
Hearing the update on Green Brook, I hope everyone enjoys the rest of their summer stay safe and look forward to talking to you again in the fall.
This concludes today's conference call you may now disconnect.
[music].