Q4 2021 Ontrak Inc Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the on track fourth quarter 2021 earnings Conference call.
At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press Star then one on your telephone.
Please be advised that today's conference is being recorded if you will.
Any further assistance. Please press star Zero I would now like to turn the conference over to your speaker for today Caroline Paul you may begin.
Thank you and thank you all for participating in today's call. Joining me today are Jonathan Mayhew, Chief Executive Officer, and Brandon Laverne Chief Financial Officer earlier today on track released financial results for the fourth quarter and year ended December 31, 2020 one.
A copy of the press release is available on the company's website.
Before we begin I would like to make the following remarks concerning forward looking statements. All statements in this conference call other than historical facts are forward looking statements. The words anticipates believes estimates expects intend guidance confidence targets projects and some other expressions typically are used to identify forward looking statements.
These forward looking statements are not guarantees of future performance, but may involve and are subject to certain risks and uncertainties. Other factors that may affect <unk> business financial condition and other operating results, which include but are not limited to the risk factors described in the risk factors section of the Form 10-K and Form 10-Q as filed with the.
S E C.
Therefore, actual outcomes and results may differ materially from those expressed or implied by these forward looking statements on track expressly disclaims any intent or obligation to update these forward looking statements.
With that I'd like to turn the call over to Jonathan.
Thanks, Carolyn and good afternoon, everyone and thank you for joining us in the President's state of the Union address on March 1st he laid out a plan to address the nation's mental health crisis by strengthening system capacity connecting more Americans to care and creating a continuum of support to address.
Mental health Holistically and equitably.
Anyone who's tried to navigate the behavioral health care system in this country knows that primary care providers health plans and treatment specialists struggled to communicate with each other which is heightened anxiety for individuals who are already suffering with behavioral health issues. They.
They may simply give up.
Our launch of on tracks New provider integration platform helps address the challenges of system capacity access to care and the need for a continuum of support.
Our provider integration platform is just one of the important steps we took during the fourth quarter of 2021 to prepare the company for accelerated growth and profitability.
The new on track management team has continued to expand and diversify our sales pipeline across multiple industries.
Higher education to hospitals pharmaceutical in manufacturing, we anticipate positive outcomes from our ongoing discussions with multiple national health plans.
Health retailers managed behavioral health organizations employers and provider clinics, we've signed a new contract with a tech first company for life Dojo Behavioral Health program and we are in advanced discussions with the state University to serve the well being needs of their faculty and student population.
We've begun implementation of our industry, leading he I enhanced clinical model and we anticipate signing contracts with multiple partners very shortly to watch our own high quality behavioral health provider network, our advanced provider integration platform.
Powered by a behavioral health industry leader net smart.
It enables us to potentially communicate with over a half a million behavioral health providers already on net smart.
And also with any electronic health record system anywhere in the nation.
This new collaborative care platform positions us to speed up access and scale cost effectively as we meet the growing needs of our new customers. Importantly, we also have a path to profitability that contemplates positive monthly EBITDA in the first quarter of 'twenty 'twenty three.
Three with positive operating cash flows a quarter later.
In 2022 three growth drivers will be our focus number one our new capital structure, which supports our path to financial strength and profitability.
Number two a robust and diversified portfolio of current and new customers comprising health plans employers health retailers managed behavioral health organizations health care organizations and associations and providers.
Significantly higher level of collaborative care achieved through integrated relationships with treatment professionals on our own provider network and the networks of our customers and through the simplification and automation of data exchanges between providers on track here coaches P. C P.
And members.
Brandon will share more details on our capital structure and path to profitability in a moment, so I'd like to share more with you on our customer portfolio and our roadmap for provider integration and collaborative care.
Let's start with customers.
We are deeply grateful for the ongoing partnership in support of our health plan and employer customers. We are working with these customers to expand the markets. We serve together partnering on new government contract opportunities.
Helping close gaps in care and delivering more mobile and digital solutions that reduce disparities by connecting individuals to the behavioral health care they need across all socioeconomic geographical and disease States. We are proud to have signed a three year contract with our largest employer customer a highly respected techs.
Knowledge company for expanded mental health and wellbeing support for their employees in 39 countries.
We've made steady progress on our sales pipeline since our last earnings call.
We are now in active conversations with 16 health plans across the country potentially representing millions of lives nationally.
The bulk the bulk of our sales pipeline continues to be government lines of business and over 90% of our initial meetings with prospects are resulting in follow up meetings no prospect has fallen out of our pipeline since the last earnings call. While every prospect will not ultimately advanced to a signed contract.
And the speed at which customers move through the pipeline is still lower than we would like we are encouraged by the quality of the conversations and their fit with our capabilities.
We are nearing an agreement to exchange data with a prominent multi.
Multistate Health plan.
Whose total footprint covers millions of lives. We are also co developing a term sheet with a large provider network that needs to supplement their onsite behavioral health services through our care coaches and AI infused interventions.
The partnerships that we are now discussing with a number of health retailers and clinics are good examples of how we are finding strategic ways to bring our value proposition to new markets, we are exploring opportunities to enhance onsite clinics and retail settings with behavioral health solutions.
That can better support individuals with chronic disease burden.
On track is well positioned to be able to to enable these organizations with large footprints.
To access our care coaches and behavioral health providers through our mobile app.
Telehealth engagement and support in person visits as an integrated offering to the local community disables that enables us to be a strategic partner in advancing the use of onsite and telehealth solutions through new channels not tied to specific health plans.
Health care associations are another new category opportunity for on track, we've seen interest in our solutions with health care associations that serve frontline hospital employees.
To that end, we are in discussions with two associations each representing a significant number of hospitals and have just submitted a statement of work for one of them.
Another of our new category of opportunities as professional employment organization or P. E OS.
There is strong interest in our life dojo solution for a large P O with 8000 client companies serving over 4000 employees 400000 employees.
We are all encouraged by the reception to on track programs in the higher education industry is.
Especially to our enhanced life dojo, mobile well being solutions for students and faculty.
A 2021 Mayo clinic study notes that 44% of college students reported having symptoms of depression or anxiety and yet 75% of struggling students are reluctant to see care.
We believe that life dojo track record of delivering high levels of user engagement and improved health habits translates well to the student populations.
Our customers tell us that on track health stands apart in an otherwise crowded marketplace, a 'twenty 'twenty Milliman study notes that 5.7% of U S. Adults in chronic with chronic conditions have an unmet need for behavioral health care accounted for 44% of the total health care spend we continue to focus on this.
Unaddressed high acuity high cost complex population with significant comorbidities that drive up the cost of medical care.
There are many digital solutions in the market.
But they have difficulty matching our system of stratify members to ensure that they received the specialist care, they need and reducing health care in equities through high touch coaching AI infused interventions over sustained periods of time.
And as we indicated during the last earnings call, we are offering prospects competitive flexible pricing models that yield attractive rois.
We think it's possible to sign several customers in 2022 with that revenue being realized in the second half of 2022 and more prominently in 'twenty 'twenty three.
Now I'd like to share more about our roadmap for achieving a significantly higher level of integrated collaborative care as I mentioned earlier the launch of on tracks new provider integration platform addresses the challenges of system capacity access to care and the need for a continuum of support are.
New ability to directly message primary providers and the bidirectional exchange of clinical note means that on tracks Board certified care coaches can reduce the burden on treating professionals. We can stratify members. So that they can be quickly refer to the right specialist our care.
Coaches.
Also provide motivational and counseling in between visits to specialists.
Which heightened member engagement and lessens the likelihood of missed or canceled appointments, which creates strain on an already overburdened mental health system.
We recently announced significant innovations in our AI capabilities.
That enable us to infuse machine learning into the entire member journey.
Not just upfront identification and eligibility. We believe this is the first to market capability unmatched by any of our competitors on track will also be the first behavioral health company to use net smarts, KIR router service, which speeds up timeliness of access to specialist providers.
We will use machine learning to better match members with coaches and providers and natural language processing, we will give our engagement specialists and care coaches real time information designed to optimize their interactions with members.
AI infused measurement feedback assures robust clinical outcomes and cost efficiencies on both an individual.
And a population health level.
I'd now like to turn it over to Brandon Laverne, our Chief Financial Officer.
Thanks, Jonathan.
During the fourth quarter, we recorded revenue of $10.3 million of 44% year over year decrease due primarily to the loss of two large customers and.
And which included the release of.
$4.9 billion of deferred revenue associated with one of those customers.
Our deferred revenue balance came down to $400000 in the fourth quarter down from $5.3 million in the third quarter.
As a result, we expect near term quarterly revenues from our existing customers to approximate 4.5 to $5 $5 million as we look to sign and close on certain of our pipeline opportunities that we believe may increase revenues in the second half of 2022 but more fully in 2023.
During the quarter, we took steps to set ourselves up for accelerated growth and returned to profitability in the near future.
First our new technology development strategy has shifted from being internally developed to working in partnership with AI and software firms that as Jonathan just mentioned will help enhance our ability to engage with and coach the members throughout their behavioral health journey.
This shift in strategy provides us greater flexibility in our ability to tailor treatment for more personalized care as well as better information to help effectively treat all of our members, while reducing overall costs and development time.
This change resulted in a one time write off of some of our capitalized software and other assets.
Second with this change additional review of our organizational structure and revenue outlook in the near term, we completed a reduction in our head count to reduce our operating costs.
Third we reduced our corporate office footprint as we look to sublease, our former Santa Monica headquarters and moved to full remote workforce of our administrative departments with a small headquarters presence in Nevada.
With this restructuring plan, we believe we have set ourselves in motion to optimize our efficiency and align with the three 2022 growth drivers the Jonathan described earlier.
At the beginning of the quarter, we had 9395 enrolled members and ended the quarter with 3795 or a simple average of 6000 and 595 members.
The decrease in enrolled members was driven by the completion of the transition of over 4600 members that either graduated or additional role during the quarter for the two terminated clients.
That equates to revenue of about $522 per enrolled member per month for the quarter compared to $649 per enrolled member per month for Q4 'twenty 'twenty.
$611 per enrolled member per month for Q3 of 2021 .
The lower revenue per enrolled member was partially due to the number of members enrolled from the two terminated clients as well as new pricing models implemented as discussed last quarter.
To go a bit deeper into Q4 enrollment.
We enrolled a total of 1014 members during the quarter compared to 6000 and 714 in Q4 last year.
But in Q4 gross enrollment by our outreach pool, which averaged approximately 7953 for the quarter and annualized as to a 51% enrollment rate.
Compared to the 55% annualized rate we saw during the first three quarters of 2021 and significantly higher than the 18% enrollment rate. We had in 2020, when we were more dependent upon commercial customers.
We believe that as we move past pandemic utilization will begin to increase expanding our outreach pool as new members at the cost thresholds to qualify for the Amtrak program.
Excluding the impact of the accelerated this enrollment of our terminated customers our monthly adjusted dis enrollment rate would've been approximately 7%, which is consistent with the improving trend over the past few quarters.
Further we graduated 2095 enrolled members during the quarter, which equates to about 22% of the enrolled members in the program at the beginning of the quarter, which has also been increasing steadily throughout the year.
That in the net impact of all that was a net enrollment decrease of 5006 hundred in the fourth quarter.
Our gross margin in the fourth quarter of 64% decrease sequentially from 68, 5%.
But increased compared to 54, 1% in the fourth quarter of last year.
The sequential decrease is due to the new pricing model previously discussed partially offset by efficiencies gained in our operations.
We expect that our gross margins to normalize in the low 50 percents in the near future.
We ended the quarter with 125 team members included in cost of revenue down 7% sequentially from 194 at the end of Q3 due to a reduction in response to the customer loss.
Yeah.
Turning to the balance sheet and cash flow our cash flow from operations in the fourth quarter was a negative $15 1 million compared to negative 100000 in the fourth quarter last year.
We ended the quarter with cash and cash equivalents of $58 $8 million down from $86 9 million at fourth quarter and last year.
Including restricted cash total cash was $65 $9 million down from $103 $2 million of fourth quarter end last year.
We are very much focused on <unk> capital structure to ensure we have sufficient resources and financing to bring a robust pipeline to fruition instead of those up for future growth.
Our board of directors thought further strategic financial flexibility that required us to amend our corporate charter, which was just approved last week at a special meeting of stockholders.
This allows the board subject to current lender consent the ability to enter into transactions such as with strategic partners that may have been prohibited in the past.
Further we just signed an amendment today with our senior lender that provides us with the flexibility we need over the next few quarters to Ray's replacement capital and a secure financial future.
As of today, our debt balance with this lender has been paid down to $19.2 million.
<unk> management has been and continues to be actively engaged with numerous potential debt financing sources and an effort to secure additional financing to fund our growth plans.
We are also in early strategic discussions with a number of healthcare related entities regarding shareholder value enhancing transactions.
The Special Committee is reviewing term sheets and determine the best and most effective opportunity for on track and its shareholders.
As a result, we currently expect that we have sufficient capital and access to future capital necessary to manage operations and execute on the three growth initiatives Jonathan has outlined over the next 12 months.
Regarding our outlook for 2022 and as I indicated earlier, we expect near term quarterly revenues from our existing customer contracts to settle in the 4.5 to $5 $5 million range for the first two quarters of 2022 before we begin to see pipeline revenues contribute in the second half of 2022 .
As a result, we expect 'twenty to 'twenty two annual revenues in the range of $25 million to $30 million with a projected run rate entering 2023 more than double that amount.
We believe we can hit historical revenue levels again for the full year of 2023.
We must continue to be diligent with our cost structure and expect many of the initiatives Jonathan mentioned will help contribute to greater efficiencies and scalability of our operating model.
We had three quarters of positive adjusted EBITDA between Q4 2020 in Q2 2021 .
And we have a path to positive monthly EBITDA in the first quarter of 2023 and positive operating cash flows a quarter later.
I'd now like to turn the call back to Jonathan.
Thanks, Brandon I'm proud of the progress that our new management team is making to turnaround our growth trajectory, which is founded on customer centricity clinical differentiation AI infused interventions and a new level of collaborative care integration with our trading partners.
Our sales pipeline is progressing well with a diversified mix of prospective customers that include health plans employers health associations managed behavioral health organizations hospital networks and providers, we are constantly working to improve our execution and operations, we feel confident the disc.
Positions us well to scale this year and beyond.
With that.
Tomorrow I'll turn it back over to you.
Thank you.
Ladies and gentlemen, as a reminder to ask a question you would need to press Star then one on your telephone.
So withdraw your question press the pound key.
Again, its star one to ask a question please.
Please standby, while we compile the Q&A roster.
Our first question comes from the lineup Richard close with Canaccord. Your line is open.
Yes, thanks for the questions.
First I was wondering maybe if you could elaborate on that.
Strategic discussions you mentioned, you're having in terms of.
Value enhancing transactions can you go into any more details on those.
Richard Hi, Jonathan and you know, we we have had a number of car I mean, I would say it this way there's interest that seems to emerge.
In the more we develop our capabilities.
And the are you know the interest has come from from from a number of different kinds of organizations, but they you know or health care organizations, whether that's you know network related or at risk providers.
I'd say, it's probably the best way to categorize it.
Okay.
Okay. So is there a formal process that you're going through here in terms of or you're just taking things sort of over the transom if they come.
Com.
I mean as branded out why would I go go ahead Brendan.
Yeah, I'll just get you know we.
We have a lot of discussions in the normal course as you can imagine and you know we're always looking at these organizations that pair well with our services and and <unk>.
We'd like to see or how we can benefit is we don't have a formal process in that regard.
And but ultimately you know we looked at all these conversations that that exist in the marketplace.
And you know, but as I as I did mentioned earlier that our first and foremost.
Is to look at debt financing to bridge the time between now and the time, we can close on on the pipeline the Jonathan laid out to really maximize shareholder value.
And you know we thought we'd.
We signed amendment today with our lender.
And with that and some other opportunities. We're looking at you know, we think that gives us that the necessary financing in the near term to achieve.
We've all those objectives.
Okay with respect to the debt financing I appreciate the nine point to 19 point to that you mentioned.
So so what is the debt total debt level you were at 30.
<unk> at 36 at the end of the year 36 million what the what is the debt currently with the pay downs.
We have done through today.
So as of today the debt is now down to $219 2 million. Okay. Okay. I just wanted to be clear on that Okay. And then Jonathan maybe just talking a little bit about you laid out a lot of stuff that you guys are working on.
And.
A lot of interesting items I'm curious just to.
You know this is a lot different than youre looking at the enrollments in terms of how you ran the business before it sounds like these different initiatives probably have different pricing models and.
Different flavors of contracts can you just go into.
Your maybe the various initiatives that you're working on how are you know how we should think about if you land. One of these you know how to model it or how does that what's the revenue build in type a.
Those type of details.
Sure.
And you know Brandon in terms of some of the modeling I'm happy to have his.
His input here.
I I would have you think about.
The majority of the opportunities that we continue to to go out aggressively relative to the sales pipeline as being consistent with the traditional revenue characteristics.
That said that we've gone after right I mean, how health plans continues to be our first end and the.
A top priority.
As we mentioned the government lines of business seem to have the.
The most activity for us the vast majority of the pipeline seems to skew towards Medicare dual eligible and Medicaid lines of business.
Has everything to do with.
Bright sort of the disease burden and that the propensity.
With which you can an end and we will find people that have got unaddressed behavioral health needs and a big a big.
The disease burden.
Burden overall.
When you then think about that being a primary focus that's where the majority of the pipeline is when you start talking about at risk provider groups or even some of the clinic and.
And retail strategies those are the same kinds of individuals' right I mean, you're talking about people that is largely got a government reimbursement.
Line of business, they might be accessing care in a in a walk in clinic, they might be accessing care through our capital at risk provider group and so the conversations that we're in a really do have a lot of the very same coaching.
Coaching and therapy revenue characteristics of the traditional lines of business have had for the company.
And as we've talked about I, just would separate out that primary focus the majority of the pipeline is directed at those traditional revenue characteristics from the life dojo up mobile platform, which in fact are lower.
P M. P M types of revenue, but the vast majority of what you know what sits in the pipeline today as the traditional revenue source I would describe it as.
Okay, and then as you ramp up in the second half you retire or Brandon was talking about closing some of these would contribute in the second half.
Should we think about like the life dojo I assume the higher Ed is like life dojo.
So this year, it's more like those pack tech wins lower P. M. P. M. What good wife Dojo, and then 'twenty to 'twenty three you know, maybe new health plans or government wine business.
How we should think about it.
I I I would say this week for life dojo, I think because of the price point because of the calendar year of some of the the higher education, you know starting in the fall and in the way they think about their their.
Their business year, you know those conversations are very active to be implemented.
In the current year.
For some of the provider group and health plan conversations that were actively in.
We are moving towards those data exchange and term sheets and you know the things that are that lead us to you know awful false statement of work and contract.
And we are expecting to try to advance those conversations in a in 2022.
And so I think you know whether they will land in the second quarter or whether they will land in the third quarter. It is our hope and expectation that we're going to continue to be able to drive at some of those health plan conversations in in this year and that sort of goes to the point, where you know as we on board.
And implement those in the middle part of this year, we probably.
It won't be recognizing.
A ton of revenue in the third quarter or the fourth quarter, but we will be ramping towards 2023.
Revenue as we onboard those customers in the second and third quarter this year.
Okay.
I'll jump back in the queue. Thank you for answering the questions.
Thank you. Thank you.
Our next question comes from the line of Bill.
With benchmark company your line is open.
All right. Thanks, everybody.
Brandon You Guide you guide, but you suggested that the gross margins going forward would be in the low excuse me low 50 range I think.
Is that a set of mix is that a function of mix in the future that youre seeing.
It's.
I don't know if I'd say mix as much as I'd say, just the way we're pricing now.
Given given the efficiencies we've gained in our model and the Rois that we want to generate for our customers.
You know, we're we're starting to think about how to how to bridge that gap and to give the best pricing and the most most constructive type.
Type of price available.
And just where we see that with with our existing customers coming up new customers coming on in existing customers remain.
That's kind of where we see it you know we will continue to as with a lot of the.
Technology that Jonathan mentioned, we're looking to continue to improve our own efficiencies and so I'd I'd love to see that there's upside there, but I, but I definitely want to.
You know give caution I I've been saying for a couple of quarters that I expected, our gross margin to come down.
A bit and it came down from 68 down to 60, and we do expect that with again with the two with two customers coming up.
Oh for sure that we will see a little bit of a of a lower number coming forward as well. The other thing to remember is as we onboard customers. So as Jonathan just mentioned here, we do expect to onboard customers New health plan customers. This year.
We have to hire in advance of that and and so usually that that creates a month or month and a half.
Impacts that that comes into our gross margins you know in advance.
After signs.
But before launching that particular contracts and so that's our that's our analysis as well.
Got it.
As far as Opex and the changes that you've made in the cost structure.
Fourth quarter charges.
Is there a level that we should think about.
But you're kind of running at now.
For Opex.
I would definitely expect it would be you know still a little bit less than in the fourth quarter.
I had mentioned that we had made some changes in the fourth quarter.
And so we'll be we'll likely be coming down from there.
Theres also some.
Some direct cost to come out with.
With the there's some direct cost of revenue.
To come out and lose that provider costs of that nature that come out as well so.
I would say.
We would expect that the opex would come down from the fourth quarter levels.
And you know start to normalize from there.
Okay.
Jonathan.
Based on.
The experience you've had with the two large plans that lapsed last year.
And how you are.
Beginning to you know work.
Work towards an absolute W with with.
New or maybe could be not new large health plans, what how have you changed your approach to being the most effective you can be with that kind of customer going forward.
Well I appreciate the question I you know the capabilities story has really evolved and changed you know number one.
Our ability to think about customer stratification of the member stratification his changed and our ability to talk about and enhanced and differentiated level of ROI, and then ROI guarantee and a commitment.
From a performance standpoint.
Or are all things I will tell you have resonated in are resonating.
And a pretty material way with with a prospect base.
The only other thing I can say think to up to to sort of draw a distinction on particularly most recently is you know there are a number of the larger digital behavioral health programs that had been in play for a while and you know whether it's you know at your three maybe heading into year, four where there's been a.
Degree of exposure to the capabilities of.
The schein seems to his worn off.
Whether some of those capabilities can be expanded right. They don't have the ability to ingest data. They don't have the ability to model and outreach pool and they don't have the human capital to make the trained kind of professional outreach is to invite people in to treatment and I know, we talk about that a lot, but if those digital platforms don't have.
Those capabilities.
And there isn't a sort of a development schedule to expand those kinds of capabilities I think health plans are beginning to understand that there are some limitations.
To some of those.
Subsequent solutions that they've had in place. So I would tell you. It's a combination of those things the capabilities the ability to stratify the population to back into and are alive with a pretty aggressive performance.
Performance guarantee and then you know people who have implemented some solutions are sort of prepared to look at alternatives a couple of years out.
Hmm.
Okay that makes sense does that help.
Yeah. Thank you very much.
Yeah.
Thank you.
Our next question comes from Milan, Sean Dodge with RBC capital market. Your line is open.
Hey, Good afternoon. This is Thomas Miller on for John Thanks for taking the question.
First question relates to the 'twenty two guidance I mean, I know previously you all talked before about things natural recovery in outreach pool based on kind of a broader health care utilization.
You all seen that at all and are there any expectations built in the guidance for the back half around that or should we think about that being driven primarily by new business.
I I I would say.
Predominantly we're looking at the forecast being driven by by new business. There's some element of utilization that we would expect.
With the with the pull numbers.
The impact on it now versus you know when we had a huge commercial business and there is a lot different and so.
That could have some elements of an impact but much smaller than the impact of their customers.
Okay. Thanks, and then on the three year contract you would mention Theres a flat P. M. P M across the employee base or is there any sort of enrollment or utilization based component and I guess, how should we think about that in terms of relative contribution. The 'twenty two and then the Verde at a full run rate or are they rolling that out in phases, given the size and.
Certain geographic footprint.
That it's a it's a fixed P. M P M across the entire population and it's a it said its new contract built off of what we've had in the past and so the revenue contribution for 2022.
Would be would be incremental to what we what would it be a little bit incremental to what we had in 2021.
And so it's it's it's definitely built in and are.
Part of the forecast.
But it's but it's an it's an existing customer that signed up with a new contract for some expansion.
To go along with it.
That's helpful.
Alright I appreciate it that's all for me.
Thank you. Thank you.
We have a follow up from the line of Richard close with Canaccord. Your line is open.
Yeah, Jonathan I was just curious if you could just dive into the net smart relationship a little bit just exactly what are you guys doing with them.
Is it a sales channel potential for you just any more details on that relationship would be helpful.
You know it's a good question on the sales channel that's not the I mean, it's not at the moment and that's not what you know we were primarily looking for out of the partnership, but I would say first and for most it at them.
Gives us.
A pretty robust.
Very easy a platform to create a collaborative care and interoperability.
Connections.
Broadly so you know.
The EHR that are our care community will sit on gives us from a management any reporting standpoint, just a whole lot more information to see verifiable levels of activity in our care community right. So we get to just manage.
And in a totally different way.
It allows us to.
Hook up with.
Other ehr's and create a set of interactions that we can begin to do different things with right. We can create bidirectional information, we can share our coaches notes with treating professionals as.
As we make behavioral health assessments right.
Determining the level of somebody who's anxiety depression or substance use as we're going through an intake or non ongoing coaching.
Set of strategies with the person that you can share that information with the treaty professionals and let them know whether the people are progressing or or regressing right in in their.
Their level of treatment it helps us understand the timeliness of when somebody should graduate from the program.
But because of the.
Adaptability in the end and in the other vendors that we can align to net smart it gives us an increasing set of AI.
AI and machine learning.
Our vendors that we can plug in and so we can do additional data modeling weekend have.
In inbound and outbound submissions.
The submissions are round, our outreach and eligibility effectiveness.
We can think about real time integrations for a provider searches, which is you know one of those things that you know that I mentioned in the script, but just knowing when our providers got availability how much provider of eligibility they've got knowing whether there are some geographic.
Considerations that may really be important. So you can think about sort of geomapping somebody's access, but you know things like knowing the best time to reach out to people.
Speech patterns and sentiment feedback can all be linked right. These modules that we can bolt on.
Two the platform just give us you.
You know a real set of capabilities that to the very best of our knowledge are just not being deployed not that some of these vendors aren't doing this stuff for other industries, but when you link together.
What net smart can provide to us around management information reporting information and then the ability to match up our own internal vendors.
But also link up but the other eat EHR that these.
These clinics retail locations and cappuccino provider groups have it gives us a level of collaboration in the trading process that I think.
Really will distinguish us in terms of the kind of outcomes that we can generate but also just the convenience. It support we can provide to the treating partners right. It's just what would be a lot easier to do business with a company like ours.
So you're saying.
Yeah, you're essentially licensing the care fabric platform from that smart.
Instead of doing that in house sure So Brandon.
Correct Okay.
Okay.
Can you talk a little bit about the.
Your your plans.
The behavioral health treatment specialists that work what exactly are you doing there.
What's the cost involved.
With that is is there any incremental cost or is that something that you've already developed or.
Over the course of 'twenty to 'twenty two.
It will be over the course of 2022 I I would describe our network strategy maybe in two buckets. So one is enhancing the provider service capabilities right that we can provide so yeah I'll start with the easy one if you will but enhancing our alignment with current providers, we are going through and have been in a pretty.
It is rigorous and intensely going through an identification of provider groups that we can strategically partner with right where can we have our performance S. L as where can we create and use the kind of integrated.
Capabilities that I just mentioned so that we can align around referral patterns data share workflows bidirectional treatment notes right like we want providers that have capacity and have a willingness to interact and engage around those kind of preferred dimensions. So we're working our existing network too.
Really try to increasingly make sure we can find contract and put some performance teeth around those arrangements.
With who is with.
With existing providers that we already do some work with and have relationships with.
The second part of it is.
To contract with new high quality providers.
Our wine around these collaborative care dimensions, and so whether they already have a community resources that they were referring to whether you already have primary care physicians that they're referring to we want to make sure that we can get that same level of integration and we want to be able to do it any preferred proprietary.
Terry access to those treating professionals, so that contracting strategy. We've got a couple of different contracting models that we will be able to work through but wont be able to contract on a on an exclusive basis to to ensure that those individuals.
From a treatment standpoint are uniquely aligned to on track.
Okay. Thank you.
Yep. Thank you.
At this time I would like to turn the call back over to Jonathan for closing.
Mark.
Thank you very much we appreciate everybody's time, this evening and the opportunity to share with you our quadrant our optimism for what we're working on.
And we are working.
On these opportunities with great urgency.
So so so thanks again.
Have a nice evening everyone. Thank you.
Ladies and gentlemen, this concludes the conference call. Thank you for your participation you may now disconnect.
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