Q4 2023 MultiPlan Corp Earnings Call

February 29, 2024

During the presentation you can register to ask a question by pressing star followed by one on your telephone keypad.

I'll hand over to your host shunted ethic AVP of Investor Relations China. Please go ahead.

Thank you for right now.

And welcome to the monthly plans fourth quarter 2023 earnings call. Our speakers today are Dale White, Chief Executive Officer, and Jim <unk>, Chief Financial Officer also joining us today is our incoming chief Executive Officer Travis Dalton.

Call is being webcast and can be accessed through the Investor Relations section of our website at multi plan dot com.

During our call we will refer to the supplemental slide deck that is available on the Investor relations portion of our website along with the fourth quarter 2023 earnings press release issued earlier this morning.

Before we begin just a couple of reminders, our remarks and responses to questions. Today may include forward looking statements. These forward looking statements represents management's beliefs and expectations only as of the date of this call actual results may differ materially from these forward looking statements due to a number of risks.

Summary of these risks can be found on the second page of the supplemental slide deck and a more complete description on our annual report on Form 10-K, and other documents, we filed with the SEC.

We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of multi <unk> underlying operating results.

An explanation of these non-GAAP measures and reconciliation to the most comparable GAAP measure can be found in the earnings press release and in the supplemental slide deck with that I would now like to turn the call over to our Chief Executive Officer, Dr. White tail.

Thank you Shannon and good morning, everyone and welcome on the call with me today is our CFO, Jim head and our incoming CEO drive installed.

As we close out 2023, I'm really encouraged by the progress we have made in transforming our business.

We began the year with a new growth plan in hand, and a clear sense of what we needed to accomplish.

Throughout the course of the year, we executed an advance each of the initiatives under that plan.

We launched several new products to enhance our core out of network payment integrity and value driven health plan services through HST.

We made a game changing acquisition of a data at data analytics platform benefits science technologies, or BSP, bringing a suite of new products that accelerated the development of a new data in decision Science service line and positioning us to further penetrate faster growing market segments.

Including Medicare advantage and Medicaid.

And we partnered with Echo health to offer a healthcare payment service, which enhances the competitive position of our product suite in the tpa and direct to employer channels, and which will add value to each of our service lines as part of a bundled service.

Bruno: Hello, everyone, and welcome to the MultiPln Corporation 4th Quarter 2023 Earnings Conference. My name is Bruno, and I'll be operating your... During the presentation, you can register to ask a question by pressing a star followed by one on your telephone. I will now hand over to your host, Shawna Gasik, AVP of Investor Relations. Shawna, please go ahead.

Hello, everyone and welcome to the multi plan Corporation fourth quarter 2023 earnings Conference call.

My name is Bruno and it'll be operating your call today.

During the presentation you can register to ask a question by pressing star followed by one on your telephone keypad.

We expect to see further benefits from these investments in 2024 and beyond as our growth accelerates. Moreover, these initiatives are just the first in a long pipeline of new products, we expect to launch over the next few years as we turn into a product centric organization, which.

I'll now hand over to your host Shannon Gasich AVP of Investor Relations Shannon. Please go ahead.

Shawna Gasik: Thank you, Bruno. Good morning, and welcome to MultiPlan's fourth quarter 2023 earnings call. Our speakers today are Dale White, Chief Executive Officer, and Jim Head, Chief Financial Officer. Also joining us today is our incoming CEO, Travis Dalton.

Thank you Bruno good morning, and welcome to monthly plans fourth quarter 2023 earnings call.

Because today are Dale White, Chief Executive Officer, and Jim <unk>, Chief Financial Officer.

Aims to amplify and sustain our long term growth and diversify our revenues.

Joining us today is our incoming chief Executive Officer, Travis Dalton the call is being webcast and can be accessed through the investor Relations section of our website at multi plan dot com.

Shawna Gasik: The call is being webcast and can be accessed through the Investor Relations section of our website at MultiPlan.com. During our call, we will refer to the supplemental slide deck that is available on the Investor Relations portion of our website, along with the fourth quarter 2023 earnings press release issued earlier this morning. Before we begin, just a couple of reminders.

In addition to executing on our growth plan, we continue to put our business on stronger footing by reducing our risk and improving our financial position the visibility and stability of our revenues increased following the contract renewals with our larger customers at the beginning of the year.

The volume environment normalized throughout the year.

Before we begin just a couple of reminders, our remarks and responses to questions. Today may include forward looking statements. These forward looking statements represent managements beliefs and expectations only as of the date of this call actual results may differ materially from these forward looking statements due to a number of risks.

Shawna Gasik: Our remarks and responses to questions today may include forward-looking statements. These forward-looking statements represent management's beliefs and expectations only as of the date of this call. However, actual results may differ materially from these forward-looking statements due to a number of risks.

Our business began growing again in the second half and we delivered on our revenue and adjusted EBITDA expectations for the year.

We have continued to be active with our capital allocation and made meaningful strides towards towards reducing our debt in 2023 by repurchasing or repaying $222 million in face value of our debt much of which was added discount including $25 million of our 6% cut.

Shawna Gasik: A summary of these risks can be found on the second page of the supplemental slide deck and a more complete description in our annual report on Form 10-K and other documents we file with the SEC. We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of MultiPln's underlining operating results. An explanation of these non-gap measures and reconciliation to the most comparable gap measure can be found in the earnings press release and in the supplemental slide deck. With that said, I would now like to turn the call over to our Chief Executive Officer, Dale White. Dale?

Summary of these risks can be found on the second page of the supplemental slide deck and a more complete description on our annual report on Form 10-K, and other documents we filed with the SEC. We will also be referring to several non-GAAP measures, which we believe provide investors with a more complete understanding of multi plans underlying operating results.

Vertebral Pik notes in the fourth quarter in.

In total, we have repurchased or repaid $362 million of face value of debt over the last five quarters.

An explanation of these non-GAAP measures and reconciliation to the most comparable GAAP measure can be found any earnings press release and in the supplemental slide deck with that I would now like to turn the call over to our Chief Executive Officer, Dr. White tail.

Reducing debt remains among our highest priorities and we expect to strengthen our balance sheet and optimize our capital structure as we grow revenues and free cash flow over the next several years.

Dale A. White: Thank you, Shawna. Good morning, everyone, and welcome. On the call with me today is our CFO, Jim Head, and our incoming CEO, Travis Dalton. As we close out 2023, I am really encouraged by the progress we have made in transforming our business. We began the year with a new growth plan in hand and a clear sense of what we needed to accomplish. Throughout the course of the year, we executed and advanced each of the initiatives under that plan.

Thank you Shannon and good morning, everyone and welcome on the call with me today is our CFO, Jim head and our incoming CEO trap installed.

So we made a lot of progress in 2023, and we did it all we did all of that while pursuing our mission to bring affordability efficiency and fairness to the health care system. This year, identifying 22 $9 billion of potential medical cost savings and helping to lower out of pocket <unk>.

As we close out 2023, I am really encouraged by the progress we have made in transforming our business.

We began the year with a new growth plan in hand, and a clear sense of what we needed to accomplish.

Throughout the course of the year, we execute isn't enough to answer each of the initiatives under that plan.

Costs, and reduce or eliminate millions of balanced bills for healthcare consumers.

Dale A. White: We launched several new products to enhance our core out-of-network payment integrity and value-driven health plan services through HST. We made a game-changing acquisition of a data analytics platform, Benefit Science Technologies, or BST, bringing a suite of new products that accelerated the development of a new data and decision science service line and positioning us to further penetrate faster-growing market segments, including Medicare Advantage and Medicaid. And we partnered with Echo Health to offer a health care payment service that enhances the competitive position of our product suite in the TPA and direct-to-employer channels and which will add value to each of our service lines as part of a bundled service.

We launched several new products to enhance our core out of network payment integrity and value driven health plan services through HST.

Turning to our fourth quarter results as shown on page five of the supplemental deck revenues were $244 $1 million up about $1 $3 million from the prior quarter or a half a percent and up one 3% from Q4 2022.

We made a game changing acquisition of a data at data analytics platform benefits science technologies, or BST, bringing a suite of new products that accelerated the development of a new data in decision Science service line and positioning us to further penetrate faster growing market segments.

Despite a difficult year over year comparison, given the impact of our contract renewals with our larger customers, which were not yet in our revenue run rate in fourth quarter 2022.

Including Medicare advantage and Medicaid.

And we partnered with Echo health to offer a health care payment service, which enhances the competitive position of our product suite in the tpa and direct to employer channels, and which will add value to each of our service lines as part of a bundled service.

Revenues came in just below the midpoint of our fourth quarter guidance range.

This was driven by solid sequential and year over year growth in our identified potential savings, partially offset by the cumulative impact of several adjustments that affected revenue yield from identified savings as Jim will detail momentarily.

Dale A. White: We expect to see further benefits from these investments in 2024 and beyond as our growth accelerates. Moreover, these initiatives are just the first in a long pipeline of new products we expect to launch over the next few years as we turn into a product-centric organization, which aims to amplify and sustain our long-term growth and diversify our revenue. In addition to executing on our growth plan, we continue to put our business on stronger footing by reducing our risk and improving our financial position. The visibility and stability of our revenues increased following the contract renewals with our larger customers at the beginning of the year. The volume environment normalized throughout the year.

Adjusted EBITDA was $156 8 million up 3% sequentially and at the end of our guidance range at the lower end of our guidance range for the quarter driven largely by continued investments in the business.

Aims to amplify and sustain our long term growth and diversify our revenues.

EBITDA was down 3% from the prior quarter, our adjusted EBITDA margin was 64, 2% up 150 basis points from 62, 7% from the prior quarter meeting our expectations as we head said our margin would show sequential improvement in Q.

Q4.

Importantly, DST costs were slightly lower than PSP revenues in the fourth quarter adjusted EBIT margin declined from 67% in the prior quarter, reflecting the impact of our contract renewals with larger customers the BST acquisition and our investments in the business.

The volume environment normalized throughout the year.

Dale A. White: Our business began growing again in the second half, and we delivered on our revenue and adjusted EBITDA expectations for the year. We have continued to be active with our capital allocation and made meaningful strides towards reducing our debt in 2023 by repurchasing or repaying $222 million of face value of our debt, much of which was at a discount, including $25 million of our 6% convertible PIC notes in the fourth quarter. In total, we have repurchased or repaid $362 million of face value of debt over the last five quarters.

Our business began growing again in the second half and we delivered on our revenue and adjusted EBITDA expectations for the year.

For the full year 2023 as shown on page five of the supplemental deck revenues were 961 5 million.

Down 11% from the prior year and adjusted EBITDA was $618 1 million.

Vertical pik notes in the fourth quarter.

Down about 20% from the prior year.

In total we have repurchased or repaid $362 million at face value of debt over the last five quarters.

Both revenues and adjusted EBITDA fell within our fiscal year guidance ranges adjusted EBIT margin was 64, 3% for fiscal year 2023 down from 71, 2% for fiscal year 2022, but within the range of 64 to 65 that was implied by our full year.

Dale A. White: Reducing debt remains among our highest priorities, and we expect to strengthen our balance sheet and optimize our capital structure as we grow revenues and free cash flow over the next several years. We made a lot of progress in 2023, and we did all of that while pursuing our mission to bring affordability, efficiency, and fairness to the healthcare system. This year, identifying $22.9 billion of potential medical cost savings and helping to lower out-of-pocket costs and reduce or eliminate millions of balance bills for healthcare consumers. Turning to our fourth quarter results, as shown on page five of the supplemental deck, revenues were $244.1 million, up about $1.3 million from the prior quarter, or a half percent, and up 1.3 percent from Q4 2022, despite a difficult year-over-year comparison Revenues came in just below the midpoint of our fourth-quarter guidance.

Reducing debt remains among our highest priorities and we expect to strengthen our balance sheet and optimize our capital structure as we grow revenues and free cash flow over the next several years.

Year, 2023 revenue and adjusted EBITDA guidance, we continued to deliver strong cash flow in 2023, generating $171 $7 million of operating cash flow and free cash flow of $62 9 million.

So we made a lot of progress in 2023, and we did it all we did all of that while pursuing our mission to bring affordability efficiency and fairness to the health care system. This year identifying $22.9 billion of potential medical cost savings and helping to lower out of pocket.

As I mentioned, we have continued to make excellent progress on our growth plan I'd like to spend a moment taking stock of what we achieved in 2023 and discuss the objectives and initiatives focusing on in 2024.

Costs, and reduce or eliminate millions of balanced bills for healthcare consumers.

Turning to our fourth quarter results as shown on page five of the supplemental deck revenues were $244 $1 million up about $1.3 million from the prior quarter or a half a percent and up one 3% from Q4 2022.

Starting with the multiyear context as shown on page 10 of the supplemental deck. The growth plan is integral to our transformation and is underpinned by a set of rolling objectives and new product initiatives.

As we laid out at our Investor day.

Despite a difficult year over year comparison, given the impact of our contract renewals with our larger customers, which were not yet in our revenue run rate in fourth quarter 2022.

We still expect our 2023 and 2024 initiatives to generate $200 million to $275 million of the incremental annual revenues over the next several years and we won't stop there because we've identified a long pipeline of opportunities, including a range of initiatives that will be in <unk>.

Revenues came in just below the midpoint of our fourth quarter guidance range.

Dale A. White: This was driven by solid, sequential, and year-over-year growth in our identified potential savings, partially offset by the cumulative impact of several adjustments that affected revenue yield from identified savings, as Jim will detail momentarily. Adjusted EBITDA was $156.8 million, up 3% sequentially, and at the end of our guidance range, at the lower end of our guidance range for the quarter, driven largely by continued investments in the business. EBITDA was down 3% from the prior quarter.

This was driven by solid sequential and year over year growth.

Focus in 2023 2025 and beyond.

Our identified potential savings, partially offset by the cumulative impact of several adjustments that affected revenue yield from identified savings as Jim will detail momentarily.

We entered 2023 with four key objectives on our plate.

First strategically enhance our core services to drive more savings and value for our customers.

Adjusted EBITDA was $156 $8 million up 3% sequentially and at the end of our guidance range at the lower end of our guidance range for the quarter driven largely by continued investments in the business.

Expand our hsp platform.

Third solidify our market leadership in NSA services, and finally expand our service offerings to include data in decision Science services, and a healthcare BTB payments service.

EBITDA was down 3% from the prior quarter.

Dale A. White: Our adjusted EBITDA margin was 64.2%, up 150 basis points from 62.7% from the prior quarter, meeting our expectations. As we had said, our margin would show sequential improvement in Q4. Importantly, BST costs were slightly lower than BST revenues in the fourth quarter. Adjusted EBITDA margin declined from 67% in the prior quarter, reflecting the impact of our contract renewals with larger customers, the BST acquisition, and our investments in the business

Our adjusted EBITDA margin was 64, 2% up 150 basis points from 62, 7% from the prior quarter meeting our expectations as we had said our margin would show sequential improvement in Q4.

As shown on page 11 of the supplemental deck each of these initiatives and the product initiatives underneath them are on track and are expected to deliver revenue growth for 2024 and ramp up in 2025 and beyond.

Importantly, DST costs were slightly lower than PSP revenues in the fourth quarter adjusted EBIT margin declined from 67% in the prior quarter, reflecting the impact of our contract renewals with larger customers the DST acquisition and our investments in the business.

First our new balance spill protection product is off to a great start recall that we've launched this product in the second quarter of last year as the first step in our objective to expand our value driven health plan or hsp platform and we on boarded 11000 lives for 2023.

Dale A. White: For the full year 2023, as shown on page 5 of the supplemental deck, revenues were $961.5 million, down 11% from the prior year, and adjusted EBITDA was $618.1 million, down about 20% from the prior year. Both revenues and adjusted EBITDA fell within our fiscal year guidance ranges. Adjusted EBITDA margin was 64.3% for fiscal year 2023, down from 71.2% for fiscal year 2022.

For the full year 2023 as shown on page five of the supplemental deck revenues were 961 $5 million down 11% from the prior year and adjusted EBITDA was $618 $1 million down about 20% from the prior year both.

Hi.

So far in 2024, we have added about another 7500 lives, bringing the total to nearly 19000 lives and we expect to add additional lives throughout the year.

We expect balance Bill protection to contribute at least $6 million of revenue in 2024 to our HST business and we're just getting started.

Revenues and adjusted EBITDA fell within our fiscal year guidance ranges adjusted EBIT margin was 64, 3% for fiscal year 2023 down from 71, 2% for fiscal year 2022, but within the range of 64 to 65 that was implied by our full year.

We're already working on launching a version of this product for our core multi plant services, which I'll get into shortly.

And advancing our objective to enhance our core services, we launched pro pricer in the third quarter and in October we on boarded a few large customers as we mentioned last quarter Pro Pricer is our next generation added network repricing solution, which uses machine learning and AI.

Dale A. White: But within the range of 64 to 65, that was implied by our full-year 2023 revenue and adjusted EBITDA guidance. We continued to deliver strong cash flow in 2023, generating $171.7 million of operating cash flow and free cash flow of $62.9 million. As I mentioned, we have continued to make excellent progress on our growth plan. I'd like to spend a moment taking stock of what we achieved in 2023 and discussing the objectives and initiatives we will focus on in 2024. Starting with the multi-year context as shown on page 10 of the supplemental deck, the growth plan is integral to our transformation and is underpinned by a set of rolling objectives and new product initiatives.

<unk> 2023 revenue and adjusted EBITDA guidance, we continued to deliver strong cash flow in 2023, generating $171 $7 million of operating cash flow and free cash flow of $62 $9 million.

To apply customer rules in choosing the optimal multiplayer solution to apply to a particular claim.

Based on what we know today, we anticipate pro pricer to generate revenues of $8 million to $10 million in 2024, and Youll hear in a moment that enhancing the pro prices suite features prominently in our 2024 growth initiatives.

Also getting strong traction is our itemized Bill review service or <unk>, which is a payment integrity service that reviews high dollar inpatient facility claims during the adjudication process to identify billing errors and prevent overpayments.

The growth plan is integral to our transformation and is underpinned by a set of rolling objectives and new product initiatives.

Dale A. White: As we laid out at our investor day, we still expect our 2023 and 2024 initiatives to generate 200 to $275 million of incremental annual revenues over the next several years. And we won't stop there because we've identified a long pipeline of opportunities, including a range of initiatives that will be in focus in 2023, 2025, and beyond. We entered 2023 with four key objectives on our plate. First, we strategically enhance our core services to drive more savings and value for our customers. Second, we need to expand our HSP platform.

As we laid out at our Investor day.

Recall that during the third quarter, we introduced functionality enhancements, including bundling with our advanced code, adding analytics to proactively identify cases.

With these enhancements we added five customers generating annualized revenues of about $5 million. As a result, we expect <unk> will contribute nicely to the solid growth, we are anticipating and payment revenue integrity services in 2024.

Focus in 2023 2025 and beyond.

We entered 2023 with four key objectives on our plate.

First strategically enhance our core services to drive more savings and value for our customers.

No surprises at compliance remains a significant focus in 2023, and we advanced our objective of solidifying our market leadership by building, an NSA insights portal and creating rules based claims processing capability, we believe customer and claim specific rules.

Expand our hsp platform.

Dale A. White: Third, solidify our market leadership in NSA services, and finally, expand our service offerings to include data and decision science services and a healthcare B2B payment service. As shown on page 11 of the supplemental deck, each of these initiatives and the product initiatives underneath them are on track and are expected to deliver revenue growth for 2024 and ramp up in 2025 and beyond. First, our new balance bill protection product is off to a great start. Recall that we launched this product in the second quarter of last year as the first step in our objective to expand our value-driven health plan, or HST platform, and we onboarded 11,000 lives for 2023. So far in 2024, we have added about another 7,500 lives, bringing the total to nearly 19,000 lives.

Third solidify our market leadership in NSA services, and finally expand our service offerings to include data in decision Science services, and a health care B to B payment service.

Bring huge value to payers because not all surprise bills are the same.

Our rules based processing engine allows our customers to recognize and leverage the unique conditions of each claim including the likely outcome of dispute resolution.

And we have seen increased success rates in pre <unk> postpaid negotiation by applying rules that allow greater flexibility in negotiating settlements.

First our new balance Bill protection product is off to a great start recall that we've launched this product in the second quarter of last year as the first step in our objective to expand our value driven health plan or HST platform and we on boarded 11000 lives for 2023.

We are also creating machine learning and other tools to enhance our success in negotiating settlements and improving our customers' chances of winning.

Hi.

So far in 2024, we have added about another 7500 lives, bringing the total to nearly 19000 lives and we expect to add additional wives throughout the year.

<unk> cases.

Continuing within the initiatives on page 11, and turning to our new data in decision Science service line as we mentioned last quarter. We released planned optic search in July and the first version of plan optics intelligence in October and I'm pleased with our pipeline.

Dale A. White: And we expect to add additional lives throughout the year. We expect balance bill protection to contribute at least $6 million of revenue in 2024 to our HST business. And we're just getting started.

We expect balance Bill protection to contribute at least $6 million of revenue in 2024 to our HST business and we're just getting started.

Recall that plan optics is a software suite that provides healthcare cost analysis and critical market insights by leveraging machine readable files of payer price transparency data that.

Dale A. White: We're already working on launching a version of this product for our core MultiPlan services, which I'll get into shortly. In advancing our objective to enhance our core services, we launched ProPricer in the third quarter. And in October, we onboarded a few large customers. As we mentioned last quarter, ProPricer is our next generation out-of-network repricing solution, which uses machine learning and AI to apply customer rules to choose the optimal multi-plan solution to apply to a particular claim. Based on what we know today, we anticipate ProPricer to generate revenues of $8-10 million in 2024. And you'll hear in a moment that enhancing the ProPricer suite features prominently in our 2024 growth initiative. Also getting strong traction is our Itemized Bill Review Service, or IBR, which is a payment integrity service that reviews high-dollar inpatient facility claims during the adjudication process to identify billing errors and prevent overpayment.

We're already working on launching a version of this product for our core multi plant services, which I'll get into shortly.

The software will help our customers prepare and execute strategic contract negotiations with providers.

I understand competitive position to drive market expansion sales sales and retention strategies improved stop loss premiums and optimized provider networks.

To apply customer rules in choosing the optimal multiplayer solution to apply to a particular claim.

Also within the BSP family of products, we had a number of wins with our supplemental insurance services and been insights.

Based on what we know today, we anticipate pro pricer to generate revenues of $8 million to $10 million in 2024, and you'll hear in a moment that enhancing the pro price or suite features prominently in our 2024 growth initiatives.

Now moving onto our 2024 growth plan as you can see on page 12, the four objectives driving our strategies are to lead. The next generation of claims processing to advance our HST employer solution in a box platform to deepen the value proposition of our core services.

To enhance and expand the data in decision Science service line.

I am very excited about the first objective we know from our 2023 launches of balance Bill protection and pro Pricer that we are well positioned to bend, the healthcare cost curve by applying technology data and decision science in the management of medical costs.

Dale A. White: Recall that during the third quarter, we introduced functionality enhancements, including bundling with our advanced code editing analytics to proactively identify cases. With these enhancements, we added five custom... Generating annualized revenues of about $5 million. As a result, we expect IBR will contribute nicely to the solid growth we are anticipating in payment revenue integrity services in 2024. No Surprises Act compliance remained a significant focus in 2023, and we advanced our objective of solidifying our market leadership by building an NSA Insights Portal and creating rules-based claims processing capability. We believe customer- and claim-specific rules bring huge value to payers because not all surprise bills are the same. Our rules-based processing engine allows our customers to recognize and leverage the unique conditions of each claim, including the likely outcome of dispute resolution. And we have seen increased success rates in pre-IDR and post-pay negotiations by applying rules that allow greater flexibility in negotiating settlement.

Recall that during the third quarter, we introduced functionality enhancements, including bundling with our advanced code, adding analytics to proactively identify cases.

Multi plan has all of the tools to make this happen.

In 2024, we expect to meet the strong interest of our customers.

Strong interest of our customers have expressed in a configuration that bundles balanced, though protection with pro Pricer we.

We are also making significant enhancements to the pro Pricer engine this year and next which not only will further enhance the flexibility we offer to our customers and increase the savings we deliver but will also generate dramatic operational cost savings for multi plant.

No surprises that compliance remains a significant focus in 2023, and we advanced our objective of solidifying our market leadership by building, an NSA insights portal and creating rules based claims processing capability, we believe customer and claim specific rules.

But we aren't stopping with out of network claims you may recall, one of our 2023 objectives was to develop the next generation of our provider network asset in 2024, we are working on an exciting intelligence hub concept that will enable multi plan and our customers to cure a provider networks where spa.

Bring huge value to payers because not all surprise bills are the same.

Our rules based processing engine allows our customers to recognize and leverage the unique conditions of each claim including the likely outcome of dispute resolution.

<unk> populations.

We believe the future of networks is curation and our net and our unique combination of data decision.

And we have seen increased success rates and pre idea our postpaid negotiation by applying rules that allow greater flexibility in negotiating settlements.

Decision Science and network development assets, along with our over 40 years of experience working with providers and Payors uniquely positions multi plan to lead the way.

Dale A. White: We are also creating machine learning and other tools to enhance our success in negotiating settlements and improve our customers' chances of winning IDR cases. Now, continuing with the initiatives on page 11 and turning to our new data and decision science service line. As we mentioned last quarter, we released Plan Optics Search in July and the first version of Plan Optics Intelligence in October, and I'm pleased with our pipeline. Recall that Plan Optics is a software suite that provides healthcare cost analysis and critical market insights by leveraging machine-readable files of payer price transparency data.

We are also creating machine learning and other tools to enhance our success in negotiating settlements and improving our customers' chances of winning.

The next objective is to advance the employer solution in a box platform of HST, we're already near completion with enhanced reporting as well as predictive and prescriptive analytics, leveraging <unk> been insights risk management platform.

<unk> cases.

Continuing with any initiatives on page 11, and turning to our new data in decision Science service line as we mentioned last quarter. We released planned optics search in July and the first version of planned optics intelligence in October and I'm pleased with our pipeline.

We are also working with care navigation companies on our strategy to integrate concierge service options enriched with our risk models and the new member engagement programs. They enable finally, we continue to consider ways to tie in a pharmacy options.

Recall that planned optics is a software suite that provides health care cost analysis and critical market insights by leveraging machine readable files, the payer price transparency data.

Dale A. White: The software will help our customers prepare and execute strategic contract negotiations with providers, understand competitive position to drive market expansion, Sales and Retention Strategies, Improved Stop Loss Premiums, and Optimized Provider Network. Also, within the BSP family of products, we had a number of wins with our Supplemental Insurance Services and Ben Insights.

Next is our objective to deepen the value proposition of all of our core service lines. The initiatives listed on slide 12 are over and above the work. We do every day to improve the performance of our products.

The software will help our customers prepare and execute strategic contract negotiations with providers.

I understand competitive position to drive market expansion sales sales and retention strategies improved stop loss premiums and optimized provider networks.

Within our analytics based services our focus in 2024 is to fully launch the NSA portal and rules based processing enhancements that I mentioned earlier and we also have growing interest from our customers with fully insured business in services that aid in meeting stage surprise bill requirements.

Also within the BSP family of products, we had a number of wins with our supplemental insurance services and been insights.

Dale A. White: Now moving on to our 2024 growth plan. As you can see on page 12, the four objectives driving our strategies are to lead the next generation of claims processing, to advance our HST employer solution in a box platform, to deepen the value proposition of our core service, and to enhance and expand the data and decision science service. I'm very excited about the first objective. We know from our 2023 launches of Balance Bill Protection and ProPricer that we are well positioned to bend the healthcare cost curve by applying technology, data, and decision science to the management of medical costs. MultiPln has all of the tools to make this happen.

Now moving onto our 2024 growth plan as you can see on page 12, the four objectives driving our strategies are to lead. The next generation of claims processing to advance our HST employers solution in a box platform to deepen the value proposition of our core services.

And it's not shown here, but we're also monitoring the regulatory rulemaking involving <unk> administration, and advanced explanation of benefits, which subject to timing could very well lead to additional product development in 2024.

To enhance and expand the data in decision Science service line.

In addition to NSA services, we are introducing a new reference based pricing options that considers meeting rates and the market capitalizing on the capabilities. We've developed for NSA compliance we are introducing more comprehensive claim editing, which features service level tiers for first pass.

Dale A. White: In 2024, we expect to meet the strong interest of our customers that the strong interest of our customers expressed in a configuration that bundles balance bill protection with pro-price. We are also making significant enhancements to the ProPricer engine this year and next, which will not only further enhance the flexibility we offer to our customers and increase the savings we deliver but will also generate dramatic operational cost savings for MultiPln. But we aren't stopping with out-of-network planning. You may recall one of our 2023 objectives was to develop the next generation of our provider network assets. In 2024, we are working on an exciting intelligence hub concept that will enable MultiPln and our customers to curate provider networks for specific populations. We believe the future of networks is curation, and our unique combination of data, decision science, and network development assets, along with our over 40 years of experience working with providers and payers, uniquely positions MultiPln to lead the way. The next objective is to advance the employer solution and box platform of HST.

Multi plan has all of the tools to make this happen in.

Subsequent pass and post payment needs and we will drive adoption of our new B to B payment service through product bundling sales and marketing.

In 2024, we expect to meet the strong interest of our customers.

Strong interest of our customers have expressed in a configuration that bundles bounced they'll protection with pro Pricer we.

Our final objective is to enhance and expand the data in decision Science service line, we introduced in mid 2023 efforts.

We are also making significant enhancements to the pro Pricer engine this year and next which not only will further enhance the flexibility will offer to our customers and increase the savings we deliver but will also generate dramatic operational cost savings for multi client.

Efforts are underway across all of our all of the products in this line, but our highest priorities are clinical risk models and plan optics.

Our risk models are unique in their interrupt and their interest or ability, which means we not only score risk, but we provide the dominant factors that comprise the score. So our customers can take more immediate action in 2024, we are introducing additional models focused on high cost claims.

It's to better inform stop loss coverages and on the senior population to add value for Medicare advantage plans.

<unk> populations.

We believe the future of networks is curation and our net and our unique combination of data decision science and network development assets, along with our over 40 years of experience working with providers and Payors uniquely positions multi plan to lead the way.

We are also advancing the product roadmap for plan optics to further enrich the data and to add feature function to our software suite, notably we are also in the ideation stages of our planned opex like solution for providers, which will be a significant 2020.

Dale A. White: We are already near completion with enhanced reporting, as well as predictive and prescriptive analytics, leveraging BST's Ben Insights risk management platform. We are also working with care navigation companies on a strategy to integrate concierge service options enriched with our risk models and the new member engagement programs they enable. Finally, we continue to consider ways to tie in a pharmacy option.

<unk> focus and opened a new market vertical.

As I reflect on the significant progress we made during 2023 and as I look forward to 2024 and beyond I am confident that the company is on sound footing, our growth has begun to accelerate and the transformation of our business is on track.

Dale A. White: Next, it is our objective to deepen the value proposition of all of our core services. The initiatives listed on slide 12 are over and above the work we do every day to improve the performance of our product. Within our analytics-based services, our focus in 2024 is to fully launch the NSA portal and rules-based processing enhancements that I mentioned earlier, and we also have growing interest from our customers with fully insured business and services that aid in meeting state surprise bill requirements. And it's not shown here, but we are also monitoring the regulatory rulemaking involving QPA administration and advanced explanation of benefits, which, subject to timing, could very well lead to additional product development in 20 In addition to NSA services, we are introducing a new reference-based pricing option that considers meeting rates in the market, capitalizing on the capabilities we've developed for NSA compliance.

With our growth plan well underway I have decided now is the right time to transition the leadership of multi plant to our new CEO drive install.

<unk> is precisely the right individual to guide the company through this exciting next chapter his extensive experience driving new product innovation to scale. The success. He has demonstrated expanding into new markets his commitment to delivering customer value and his outstanding leadership capabilities will be critical.

To steering us from the early stages of our growth plan to the realization of our strategic vision.

NSA portal and rules based processing enhancements that I mentioned earlier and we also have growing interest from our customers with fully insured business in services that aid in meeting state surprise Bill requirements and it is not shown here, but we are also monitoring the regulatory rulemaking.

Travis his first official day as CEO is tomorrow. So this is a perfect moment to introduce them to all of you. So I'm going to pass the call to him to say a few words drive us welcome.

Dale A. White: We are introducing more comprehensive claim editing, which features service-level tiers for first pass, subsequent pass, and post-payment needs, and we will drive adoption of our new B2B payment service through product bundling, sales, and marketing. Our final objective is to enhance and expand the data and decision science service line we introduced in mid-2023. Efforts are underway across all of the products in this line, but our highest priorities are clinical risk models and plan options. Our risk models are unique in their interoperabilities, which means we not only score risk, but we provide the dominant factors that comprise the score so our customers can take more immediate action.

Thank you Dale and Hello to everyone on the call. Let me start by saying how excited I am to be joining multi plan as I considered the opportunity to lead. This company I reached three conclusions that persuaded me that this was exactly the company, where I can make a difference and where I wanted to be fair.

Involving <unk> administration, and advanced explanation of benefits, which subject to timing could very well lead to additional product development in 2024.

In addition to NSA services, we are introducing a new reference based pricing option that considers meeting rates in the market capitalizing on the capabilities, we've developed for NSA compliance.

<unk>.

Multi plan is great customers, a world class team solutions that add value and an important mission to bend the cost curve in healthcare.

Can get behind that second we have industry, leading technology and data assets that will enable us to significantly expand and accelerate revenue growth by launching new products and services that are natural extensions of the baseline product suite, we provide to our existing customers and will prepare us to further expand.

We are introducing more comprehensive claim editing, which features service level tiers for first pass subsequent pass and post payment needs and we will drive adoption of our new B to B payment service through product bundling sales and marketing.

Dale A. White: In 2024, we are introducing additional models focused on high-cost claimants to better inform stop loss coverages and on the senior population to add value for Medicare Advantage. We are also advancing the product roadmap for PlanOptics to further enrich the data and add feature functionality to our software suite. Notably, we are also in the ideation stages of a PlanOptics-like solution for providers, which will be a significant 2025 focus and open a new market vertical. As I reflect on the significant progress we made during 2023 and as I look forward to 2024 and beyond, I am confident that the company is on sound footing. Our growth has begun to accelerate, and the transformation of our business is on track. With our growth plan well underway, I have decided now is the right time to transition the leadership of MultiPln to our new CEO, Travis Dahl.

Our final objective is to enhance and expand the data in decision Science service line, we introduced in mid 2023.

<unk> innovative products and new vertical markets.

Finally, it is clear to me that we have a strategy and the opportunity to position the company for accelerating growth by leveraging these considerable assets. It's my attention to build upon these successes I am.

Efforts are underway across all of our all of the products in this line, but our highest priorities are clinical risk models and plan optics.

Our risk models are unique in their interrupt in their inter ability, which means we not only score risk, but we provide the dominant factors that comprise the score. So our customers can take more immediate action in 2024, we are introducing additional models focused on high cost claims.

Confident that my experience scaling complex health care and technology environments.

While leveraging products and data to drive topline growth will be a strong asset as we seek to fortify and expand from our core look at new markets and pursue data and decision science solutions that add value to our customers and the members that they serve.

To better inform stop loss coverages and on the senior population to add value for Medicare advantage plans.

So for me joining multi plan is about my commitment to this important mission, it's about my passion for improving the quality cost and access to health care in our nation and its about leading a great team as we seek to achieve maximum impact.

We are also advancing the product roadmap for plan optics to further enrich the data and to add feature function to our software suite, notably we are also in the ideation stages of our planned optics like solution for providers, which will be a significant 2020.

In the coming quarters, you'll hear more from me about how we plan to increase clarity of purpose and.

Dale A. White: Travis is precisely the right individual to guide the company through this exciting next chapter. His extensive experience driving new product innovation to scale, the success he has demonstrated expanding into new markets, his commitment to delivering customer value, and his outstanding leadership capabilities will be critical to steering us from the early stages of our growth plan to the realization of our strategic vision. Travis's first official day as CEO is tomorrow, so this is a perfect moment to introduce him to all of you.

Hence the alignment of our resources and focus on World class operations.

<unk> focus and opened a new market vertical.

This will allow us to get fit for growth by expanding our operating and product development capabilities and intensifying our focus on the product led go to market strategies and attacking topline growth through our sales engagements and new markets as.

As you've heard Dave say execution is critical and I'm here to drive that that's where considerable energy will be focused in 2024.

Travis Dalton: So I'm gonna pass the call to him to say a few words. Travis, welcome. Thank you, Dale. And hello to everyone on the call. Let me start by saying how excited I am to be joining MultiPln. As I considered the opportunity to lead this company, I reached three conclusions that persuaded me that this was exactly the company where I could make a difference and where I wanted it to be. First,

With our growth plan well underway I have decided now is the right time to transition the leadership of multi plant to our new CEO drive install.

You will also hear more from me about an expanded strategic vision I strongly believe we can set our sights higher even higher for 25% in 2026 sort of more expansive opportunity set as we followed through on our objective of leveraging our platform to penetrate new market verticals and deliver.

<unk> is precisely the right individual to guide the company through this exciting next chapter his extensive experience driving new product innovation to scale. The success. He has demonstrated expanding into new markets is commitment to delivering customer value and his outstanding leadership capabilities will be critical.

Travis Dalton: MultiPln has great customers, a world-class team, solutions that add value, and an important mission to bend the cost curve in healthcare. I can get behind that. Second, we have industry-leading technology and data assets that will enable us to significantly expand and accelerate revenue growth by launching new products and services that are natural extensions of the baseline products we provide to our existing customers and which prepare us to further expand innovative products in new vertical markets. Finally, it's clear to me that we have a strategy and the opportunity to position the company for accelerating growth by leveraging these considerable assets. It's my intention to build upon these successes. I'm confident that my experience scaling complex healthcare and technology environments, while leveraging products and data to drive top-line growth, will be a strong asset as we seek to fortify and expand from our core, look at new markets, and pursue data and decision science solutions that add value to our customers and the members that they serve. So for me, joining MultiPln is about my commitment to this important mission. It's about my passion for improving the quality, cost, and access to health care in our nation.

That form based data and analytics health.

Health care is at an inflection point with consumer demands provider and payer challenges and increasing regulation and market pressures all of which has created an impetus for change.

To steering us from the early stages of our growth plan to the realization of our strategic vision.

Travis his first official day as CEO is tomorrow. So this is a perfect moment to introduce them to all of you. So I'm going to pass the call to him to say a few words drive us welcome.

<unk> any I have seen in more than two decades in this industry.

I believe data will be at the forefront of that transformation and health care and ultimately for consumers of care, which includes all of US and I believe multi plan is uniquely positioned to bring data intelligence innovation and value to our customers in the industry.

Thank you Dale and Hello to everyone on the call. Let me start by saying how excited I am to be joining multi plan.

As I considered the opportunity to lead this company I reached three conclusions that persuaded me that this was exactly the company, where I can make a difference in where I wanted to be.

In summary, I see an incredible opportunity to follow through on our transformation from a great private company to a world class public company that's fit for growth.

First multi plan is great customers, a world class team solutions that add value and an important mission to bend the cost curve in healthcare.

Look forward to meeting all of you in person in the coming quarter and with that I'll turn the call back over to Dale.

Get behind that second we have industry, leading technology and data assets that will enable us to significantly expand and accelerate revenue growth by launching new products and services that are natural extensions of the baseline product suite, we provide to our existing customers and will prepare us to further expand.

Travis. Thank you we are thrilled that you were onboard.

I want to remind everyone.

But I will still be around I will remain active as executive chair of the company and I am glad to have additional time and capacity to devote to supporting and deepening our key customer relationships and leveraging those relationships to help travelers drive our transformation forward with that I'd like to turn the call over.

Travis Dalton: And it's about leading a great team as we seek to achieve maximum impact. In the coming quarters, you will hear more from me about how we plan to increase clarity of purpose, enhance alignment of our resources, and focus on world-class operations. This will allow us to get fit for growth by expanding our operating and product development capabilities, intensifying our focus on product-led go-to-market strategies, and attacking top-line growth through our sales engagements and new markets. As you've heard Dale say, execution is critical, and I'm here to drive that.

Innovative products and new vertical markets.

Finally, it's clear to me that we have a strategy and the opportunity to position the company for accelerating growth by leveraging these considerable assets. It's my attention to build upon these successes.

To Jim to take you through the financial results Jim.

Thanks, Dale and good morning, everyone before I begin, let me join Dale and welcoming Travis to the multi plant team and share with you how excited the senior leadership team is to partner with Travis for the next chapter in our transformation.

Confident that my experience scaling complex health care and technology environments.

Leveraging products and data to drive top line growth will be a strong asset as we seek to fortify and expand from our core look at new markets and pursue data and decision science solutions that add value to our customers and the members that they serve.

This being deals last earnings call I want to thank him for his vision and leadership and wish him well in his new role at the company.

Travis Dalton: It's where considerable energy will be focused in 2024. You will also hear more from me about an expanded strategic vision. I strongly believe we can set our sights higher, even higher for 2025 and 2026, toward a more expansive opportunity set as we follow through on our objective of leveraging our platform to penetrate new market verticals and deliver platform-based data and analytics. Healthcare is at an inflection point with consumer demands, provider and payer challenges, and increasing regulation and market pressures, all of which have created an impetus for change. Unlike any I have seen in more than two decades in this industry, I believe data will be at the forefront of that transformation in health care and, ultimately, for consumers of care, which includes all of us.

Today I'll walk through the financial results for the fourth quarter and full year 'twenty three.

Then I'll turn to our outlook for 2024, and I'll close with a review of our balance sheet and our plans for capital allocation.

As shown on page five of the supplemental deck fourth quarter revenue was $244 1 million an increase of <unk>, 5% over Q3 and in line with our Q4 guidance.

In the coming quarters, you'll hear more from me about how we plan to increase clarity of purpose and.

Compared to the prior year's fourth quarter revenue increased one 3%. Despite a difficult comparison, given the impact of contract renewals with our larger customers, which we're not yet in our run rate in Q4 2022.

Hence the alignment of our resources and focus on World class operations.

For the full year 23, total revenues were $961 5 million within the narrowed range of guidance provided on our Q3 earnings call and down 10, 9% from the prior year.

Travis Dalton: And I believe MultiPln is uniquely positioned to bring data intelligence, innovation, and value to our customers in the industry. In summary, I see an incredible opportunity to follow through on our transformation from a great private company to a world-class public company that's fit for growth. I look forward to meeting all of you in person in the coming quarter. And with that, I'll turn the call back over to Dale. Travis, thank you.

Turning to revenues by service line as shown on page six of the supplemental deck relative to Q3 23 network base revenues declined eight 1% or $4 6 million driven largely by our complimentary network business, which had some customer adjustments, which I will discuss in a moment.

As you've heard Dave say execution is critical and I'm here to drive that it's where considerable energy will be focused in 2024.

You will also hear more from me about an expanded strategic vision I strongly believe we can set our sights higher even higher for 25% in 2026 sort of a more expansive opportunity set as we followed through on our objective of leveraging our platform to penetrate new market verticals and deliver.

Our analytics base revenues grew three 2% sequentially attributed to strong volumes in data eyesight and NSA services.

Dale A. White: We are thrilled that you are on board. I want to remind everyone that I will still be around. I will remain active as executive chair of the company, and I'm glad to have additional time and capacity to devote to supporting and deepening our key customer relationships and leveraging those relationships to help Travis drive our transformation forward. With that, I'd like to turn the call over to Jim to take you through the financial results. Jim.

Our payment and revenue integrity revenues increased three 2% sequentially from strengthen our discovery health lines of business like revenue integrity and Itemized Bill review.

That form based data and analytics health.

Health care is at an inflection point with consumer demands provider and payer challenges and increasing regulation and market pressures all of which has created an impetus for change.

Versus the prior year quarter network based revenues declined 4% analytics based revenues grew one 9% and payment and revenue integrity revenues grew 8%.

Unlike any I have seen in more than two decades in this industry.

Excluding a $3 8 million contribution to revenues from BSP, which is reported in our analytics based revenues fourth quarter consolidated revenues were $243 million up slightly from the prior quarter.

I believe data will be at the forefront of that transformation and healthcare and ultimately for consumers of care, which includes all of us and I believe multi plan is uniquely positioned to bring data intelligence innovation and value to our customers in the industry.

James M. Head: Thanks, Dale, and good morning, everyone. Before I begin, let me join Dale in welcoming Travis to the MultiPln team and share with you how excited the senior leadership team is to partner with Travis for the next chapter in our transformation. This being Dale's last earnings call, I want to thank him for his vision and leadership and wish him well in his new role at the company. Today, I'll walk through the financial results for the fourth quarter and full year 23. Then I'll turn to our outlook for 2024, and I'll close with a review of our balance sheet and our plans for capital allocation. It's shown on page five of the supplemental deck.

For full year 'twenty three network based revenues declined eight 9% analytics based revenues declined 12, 3% and payment and revenue integrity revenues declined six 9%. These.

In summary, I see an incredible opportunity to follow through on our transformation from a great private company to a world class public company that's fit for growth.

These year over year declines are largely attributed to the impact of the contract renewals with larger customers in the beginning of 'twenty three.

Look forward to meeting all of you in person in the coming quarter and with that I'll turn the call back over to Dale.

And also due to a sharp decline in Covid related claims savings, which had spiked during the first half of 2022 and dropped off significantly in the first half of 2023 <unk>.

Travis Thank you.

<unk> that you were onboard.

I want to remind everyone.

Excluding a $9 5 million contribution to revenues from nearly eight months of owning DST full year 'twenty three revenues were 952.0 million down 11, 8%.

The fourth quarter was characterized by further normalization of volumes with broad based strength across categories as shown on page seven of the supplemental deck total fourth quarter billed charges increased 2% sequentially to $43 4 billion and identified potential savings increased two 3% sequentially to $5 9 billion.

James M. Head: Fourth quarter revenue was $244.1 million, an increase of 0.5% over Q3, and in line with our Q4 guidance. Compared to the prior year's fourth quarter, revenue increased 1.3% despite a difficult comparison given the impact of contract renewals with our larger customers, which were not yet in our run rate in Q4 2022. For the full year 23, total revenues were $961.5 million, within the narrowed range of guidance provided on our Q3 earnings call and down 10.9% from the prior year. Turning to revenues by service line, as shown on page 6 of the supplemental deck, relative to Q3-23, network-based revenues declined 8.1% or $4.6 million, driven largely by our complementary network business, which had some customer adjustments, which I will discuss in a moment. Our analytics-based revenues grew 3.2% sequentially, attributed to strong volumes in data eyesight and NSA services.

To Jim to take you through the financial results Jim.

In our core commercial health plan segment billed charges were up 5% sequentially to $19 4 billion and identified potential savings increased two 2% sequentially to $5 6 billion.

This being deals last earnings call I want to thank him for his vision and leadership and wish him well in his new role at the company.

Today I'll walk through the financial results for the fourth quarter and full year 2003.

This sequential growth in volume was broad based across both physician and facilities claims and factoring in our typical claims lag was relatively consistent with the trends in the third and fourth quarters that were reported by some of the publicly traded payers and hospital operators.

Then I'll turn to our outlook for 2024, and I'll close with a review of our balance sheet and our plans for capital allocation.

As shown on page five of the supplemental deck fourth quarter revenue was $244 1 million an increase of <unk>, 5% over Q3 and in line with our Q4 guidance.

Also we have seen strong NSA volumes through our platform in Q4 exclusive of the downstream itr volumes, which also increased significantly in the second half of the year.

Compared to the prior year's fourth quarter revenue increased one 3%. Despite a difficult comparison, given the impact of contract renewals with our larger customers, which were not yet in our run rate in Q4 2022.

The strength of our volumes was offset by a decline in revenues as a percentage of our identified savings or revenue yield.

As shown on page nine of the supplemental deck, our revenue yield declined seven basis points sequentially for the overall business, which includes both <unk> and <unk>.

For the full year 23, total revenues were $961 5 million within the narrowed range of guidance provided on our Q3 earnings call and down 10, 9% from the prior year.

In our core percentage of savings revenue model, which is approximately 90% of our revenues our revenue yield fell 15 basis points.

James M. Head: Our payment and revenue integrity revenues increased 3.2% sequentially from strength in our discovery health lines of business, like revenue integrity and itemized bill review. Compared to the prior year quarter, network-based revenues declined 4%, analytics-based revenues grew 1.9%, and payment and revenue integrity revenues grew 8%. Excluding a 3.8 million contribution to revenues from BST, which is reported in our analytics-based revenues, fourth quarter consolidated revenues were 240.3 million, up slightly from the prior quarter. For full year 23, network-based revenues declined 8.9%, analytics-based revenues declined 12.3%, and payment and revenue integrity revenues declined 6.9%. These year-over-year declines are largely attributed to the impact of the contract renewals with larger customers in the beginning of 2023 and also due to a sharp decline in COVID-related claim savings, which had spiked during the first half of 2022 and dropped off significantly in the first half of 2023. Excluding a $9.5 million contribution to revenues from nearly eight months of owning BST, full year 20 revenues were $952.0 The fourth quarter was characterized by further normalization of volumes with broad-based strength across categories.

So let's break down this breakdown this decline.

About six basis points of the decline was related to mix effects and yield normalization.

And about nine basis points of the decline was related to various customer credits and adjustments that are nonrecurring and will abate.

Our analytics base revenues grew three 2% sequentially attributed to strong volumes in data eyesight and NSA services.

Importantly, none of the decline in our PC revenue yield was related to contract changes with our customers. None of it instead, there were more idiosyncratic programmatic adjustments in the quarter than any typical quarter, most of which will disappear in Q1.

Going forward, our expectation is that our <unk> revenue yield is likely to hover around the 5% range with some modest fluctuation driven by product and customer mix.

Turning to expenses fourth quarter, adjusted EBITDA expenses were $87 3 million up $7 7 million from $79 6 million in the prior quarter, but down $3 2 million from Q3 2023.

The increase of $7 7 million over last year's fourth quarter was driven by the combination of the acquisition of BST structural cost increases and investments in the business.

For the sequential comparison the decline in adjusted EBITDA expenses reflected the moderation of upfront costs related to the BSD immigration and tight expense controls.

1922, and dropped off significantly in the first half of 2023.

Our adjusted EBITDA expenses for the full year 2023 were $343 5 million and include approximately eight months of BST cost.

James M. Head: As shown on page 7 of the supplemental deck, total fourth-quarter billed charges increased 2% sequentially to $43.4 billion, and identified potential savings increased 2.3% sequentially to $5.9 billion. In our core commercial health plan segment, billed charges were up 5% sequentially to $19.4 billion, and identified potential savings increased 2.2% sequentially to $5.6 billion. This sequential growth in volumes was broad-based across both physician and facilities claims, and factoring in our typical claims lag, it was relatively consistent with the trends in the third and fourth quarters that were reported by some of the publicly traded payers and hospital operators. Additionally, we have seen strong NSA volumes through our platform in Q4, exclusive of the downstream IDR volumes, which also increased significantly in the second half of the year.

Excluding a 9.5 million contribution to revenues from nearly eight months of owning B S. T full you're twenty-three revenues were 952.

Adjusted EBITDA was $156 8 million in Q4, 2023 down two 9% from $161 5 million in the prior year quarter, but up 3% from $152 3 million in Q3 23.

0.0 million dollars down 11.8%.

The fourth quarter was characterized by further normalization of volumes with broad based strength across categories.

Shown on page seven of the supplemental deck total fourth quarter billed charges increased 2% sequentially to 43.4 billion and identify potential savings increased 2.3% sequentially to $5.9 billion in.

Our Q4, adjusted EBITDA was closer to the lower end of our guidance for the fourth quarter due to continued investments in the business.

Adjusted EBITDA margin improved in Q4, 'twenty three to 64, 2% up 150 basis points from the prior quarter and down from 67% in Q4 2022, excluding.

In our core commercial health plans segment billed charges were up 5% sequentially 19.4 billion and identify potential savings increased 2.2% sequentially to 5.6 billion.

Excluding the impact of BST the margin in our core business was above our consolidated margin for Q4, and BST revenues less costs were slightly better than breakeven for the first time since the acquisition closed in.

The sequential growth in volumes was broad based across both physician and facilities claims and factoring in our typical claims leg was relatively consistent with the trends in the third and fourth quarters that were reported by some of the publicly traded payers in hospital operators.

In may of 2023.

Full year adjusted EBITDA of $618 million was down 19, 6% from $768 7 million in the prior year or.

Also we have seen strong and I say volumes through our platform in queue for exclusive of the downstream itr volumes, which also increased significantly in the second half of the year.

James M. Head: The strength of our volumes was offset by a decline in revenues as a percentage of our identified savings or revenue yield. As shown on page nine of the supplemental deck, our revenue yield declined seven basis points sequentially for the overall business, which includes both PSAVE and PEPM. In our core percentage of savings revenue model, which is approximately 90% of our revenues, our revenue yield fell 15 basis points. So let's break this down and break down this decline.

Our full year 23, adjusted EBITDA margin was 64, 3% down from 72% for the full year, 22%, reflecting the combination of the lower revenue and higher adjusted EBITDA expense dynamics previously discussed.

The strength of our volumes is offset by a decline in revenues as a percentage of our identified savings or revenue yield.

Excluding the impact of BST the margin in our core business was above our consolidated margin for the year.

As shown on page nine of the supplemental deck, a revenue yield declined seven basis points sequentially for the overall business, which includes both P. Save N P E P M.

Turning to 2024 guidance, which is presented on page 13 of the supplemental deck. We anticipate 2024 revenues of 1.0 billion to 1.03 billion growing approximately 4% to 7% from full year 2023.

In our core percentage of savings revenue model, which is approximately 90% of our revenues are revenue yield fell 15 basis points.

James M. Head: About six basis points of the decline was related to mixed effects and yield normalization, and about nine basis points of the decline was related to various customer credits and adjustments that are non-recurring and will abate. Importantly, none of the decline in our PSAVE revenue yield was related to contract changes with our customers. None of it.

So let's break down this breakdown this decline.

The revenue bridge on page 14 of the supplemental deck illustrates the key components and assumptions in our guidance.

About six basis points of the decline was related to mix effects and yield normalization.

And about nine basis points of the decline was related to various customer credits and adjustments that are non-recurring and will abate.

First we expect our core out of network business to contribute approximately 150 to 300 basis points to the consolidated overall growth.

James M. Head: Instead, there were more idiosyncratic programmatic adjustments in the quarter than any typical quarter, most of which will disappear in Q1. Going forward, our expectation is that our PSAVE revenue yield is likely to hover around the 5% range, with some modest fluctuation driven by product and customer. Turning to expenses, fourth-quarter adjusted EBITDA expenses were $87.3 million, up $7.7 million from $79.6 million in the prior quarter, but down $3.2 million from Q3 2023. The increase of $7.7 million over last year's fourth quarter was driven by the combination of the acquisition of BST, structural cost increases, and investments in the business. For the sequential comparison, the decline in adjusted EBITDA expenses reflected the moderation of upfront costs related to the BST integration and tight expense control.

Importantly, none of the decline in our P. Save revenue yield was related to contract changes with our customers none of it.

This includes new sales growth initiatives and modest increases in utilization and health care inflation as.

Instead, they were more idiosyncratic programmatic adjustments in the quarter than any typical for most of which will disappear in Q1.

As well as the net effect of program changes in customer attrition.

Moving across the revenue bridge, we expect payment in our payment and revenue integrity business to contribute 50 to 75 basis points of growth for fiscal 2024.

Going forward, our expectation is that R. P. Save revenue yield is likely to hover around the five per cent range with some modest fluctuation driven by product and customer base.

We expect our value driven health plans, our HST platform to contribute 100 150 basis points driven by the combination of member growth in our growth initiatives, including our balance Bill protection service.

Turning to expenses Fourthquarter, adjusted EBITDA expenses were $87.3 million up $7.7 million from $79.6 million in the prior quarter, but down $3.2 million from 232023.

We expect our data in decision Science service line to contribute 100 to 150 basis points and our <unk> healthcare payment service to contribute 10 to 25 basis points.

The increase of 7.7 million over last year's fourth quarter was driven by the combination of the acquisition of B S. T structural cost increases and investments in the business for the sequential comparison, the decline and adjusted EBITDA expenses reflected the moderation of upfront costs related to the Bse immigration and tight expense controls.

Importantly, these last two service offerings expansions are still nascent and we expect the contributions to growth from each to accelerate in 2025 and beyond.

As shown on the adjusted EBITDA margin bridge on page 15 of the supplemental deck, we expect to continue to deliver an adjusted EBITDA margin of 63% to 64% in 2024 slightly lower than our full year 2023 margin, but stable industry, leading and within striking distance of our longer term margin expectations and.

<unk>.

James M. Head: Our adjusted EBITDA expenses for the full year 2023 were $343.5 million and included approximately eight months of BST costs. Adjusted EBITDA was $156.8 million in Q4 2023, down 2.9% from $161.5 million in the prior year quarter but up 3% from $152.3 million in Q3 2023. Our Q4 adjusted EBITDA was closer to the lower end of our guidance for the fourth quarter due to continued investments in the business. Adjusted EBITDA margin improved in Q4'23 to 64.2%, up 150 basis points from the prior quarter and down from 67% in Q4'2022. Excluding the impact of BST, the margin in our core business was above our consolidated margin for Q4 and BST revenues less costs were slightly better than breakeven for the first time since the acquisition closed in May of 2023. Full-year adjusted EBITDA of $618 million was down 19.6% from $768.7 million the prior year.

Our adjusted EBITDA expenses for the full year 2023, or $343.5 million and include approximately eight months of B S T costs.

Adjusted EBITDA was $156 $8 million in Q4, 2023 down 2.9% from $161.5 million in the prior year quarter, but up 3% from $152.3 million in Q3 23.

The mid <unk> range.

Bridging from Q4, 'twenty three run rate of 64, 2% to our 2020 for Martin margin guidance, we expect roughly 80 basis points of margin contraction for full year 2024.

Q for adjusted EBITDA was closer to the lower end of our guidance for the fourth quarter due to continued investments in the business.

Within that 80 basis points, we expect 25 basis points of contraction related to net structural cost increases.

Adjusted EBITDA margin improved in queue for twenty-three $264, 2% up 150 basis points from the prior quarter and down from 67% in Q4 2020 to.

More than offsetting that cost increase is about 140 basis points of expected margin lift driven by higher expected revenues in 2024.

On a largely fixed cost base of our core business.

Excluding the impact of B S T. The margin and our core business was above are consolidated margin for Q4, and BSC revenues less costs were slightly better than breakeven for the first time since the acquisition closed in.

Offsetting this lift is 125 basis points of margin contraction from investments to support our platform, which includes investments in it infrastructure and about 75 basis points of contraction from investments to support our growth plan.

In may of 2023.

Full year adjusted EBITDA of 618 million was down 19.6% from $768 7 million in the prior year are.

In short you are seeing us use the benefits of operating leverage to fund our growth investments, which is that balancing act that we are pursuing to enable our growth plan.

James M. Head: Our full-year 23 adjusted EBITDA margin was 64.3%, down from 70.2% for the full year 22, reflecting the combination of the lower revenue and higher adjusted EBITDA expense dynamics previously discussed. Excluding the impact of BST, the margin in our core business was above our consolidated margin for the year. Turning to 2024 guidance, which is presented on page 13 of the Supplemental Deck, we anticipate 2024 revenues of $1.0 billion to $1.03 billion, growing approximately 4-7% from full year 2023. The revenue bridge on page 14 of the supplemental deck illustrates the key components and assumptions in our guidance. First, we expect our core out-of-network business to contribute approximately 150 to 300 basis points to the consolidated overall growth. This includes new sales, growth initiatives, modest increases in utilization and healthcare inflation, as well as the net effect of program changes and customer attrition.

Full year 23, adjusted EBITDA margin was 64.3% down from 70.2% for the full year 22, reflecting the combination of the lower revenue in higher Jested EBITDA expense dynamics previously discussed.

Returning to page 13, our revenue and cost expectations imply a forecast of $630 million to $650 million for adjusted EBITDA and 24.

Page 13 also shows other guidance related to our P&L and cash flow to help you estimate free cash flow generation for the year.

Excluding the impact of B S T. The margin and our core business was above are consolidated margin for the year.

We expect interest expense of $320 million to $330 million in 2024 versus $332 million in 2023, reflecting lower debt levels as well as the benefit from our fixed rate hedge that we placed on a portion of our term loan b.

Turning to 2024 guidance, which is presented on page 13 in the supplemental deck. We anticipate 2024 revenues of 1.0 billion to 1.03 billion growing approximately 4% to 7% from full year 2023.

We are forecasting capital expenditures of $120 million to $130 million in 2024 up from about $109 million in 2023.

The revenue bridge on page 14 of the supplemental deck illustrates the key components and assumptions in our guidance.

We will continue to make capital investments in our platform in DST and a new products related to our growth plan.

First we expect our core out of network business to contribute approximately 150 to 300 basis points to the consolidated overall growth.

We expect depreciation of $80 million to $90 million and a tax rate between 25, and 28% finally, we anticipate operating cash flow to be.

This includes new sales growth initiatives and modest increases in utilization in health care inflation is.

As well as the net effect of program changes in customer attrition.

Between 170, and $200 million in 2024 versus $171 1 million for full year 2023, driven primarily by higher adjusted EBITDA and lower interest expense.

James M. Head: Moving across the revenue bridge, we expect our payment and revenue integrity business to contribute 50 to 75 basis points of growth for fiscal 2024. We expect our value-based health plans or HST platform to contribute 100 to 150 basis points, driven by the combination of member growth and our growth initiatives, including our balance bill protection. We expect our Data & Decision Science Service line to contribute 100 to 150 basis points, and our B2B Healthcare Payment Service to contribute 10 to 25 basis points. Importantly, these last two service offering expansions are still nascent, and we expect the contributions to growth from each to accelerate in 2025 and beyond.

Moving across the revenue bridge, we expect payment in our payment in revenue integrity business to contribute 50 to 75 basis points of growth for fiscal 2024.

Before I can turn to turn to Q1 guidance as you are aware multi plan established a long term incentive and retention program for the BSD transaction to retain the management team and to align to future revenue targets are.

We expect our value driven health plans are HST platform to contribute 100 150 basis points.

Driven by the combination of member growth in our growth initiatives, including our balance Bill protection service.

We expect our data and decision Science service line to contribute 100 to 150 basis points and our <unk> health care payments service to contribute 10 to 25 basis points.

Our 2024 guidance does not include any impact of the incentive payments of which the first.

Our milestone does that $12 31 24.

These targets were deliberately ambitious and will require performance beyond what is assumed in our current guidance.

Importantly, these last two service offerings expansions are still Nathan and we expect the contributions to grow through each to accelerate in 2025 and beyond.

We should have a better line of sight, if any incentives are expected by the time, we provide our typical guidance update for the second half.

James M. Head: As shown on the Adjusted EBITDA Margin Bridge on page 15 of the Supplemental Deck, we expect to continue to deliver an adjusted EBITDA margin of 63 to 64 percent in 2024. Slightly lower than our full-year 2023 margin, but stable, industry-leading, and within striking distance of our longer-term margin expectations in the mid-60s range. Bridging from Q4'23 run rate of 64.2% to our 2024 margin guidance, we expect roughly 80 basis points of margin contraction for full year 2024. Within that 80 basis points, we expect 25 basis points of contraction related to net structural cost increase.

As outlined on page 16 of the supplemental deck and in the press release. This morning for Q1, 'twenty four we anticipate revenues of $235 million to $250 million and adjusted EBITDA of $150 million to $160 million.

These projections are largely flat versus from Q4 dollars 23 and reflect typical Q1 seasonal softness.

The mid sixties rage.

Bridging from Q4 twenty-three run rate of 64.2% to our 2024 Martin margin guidance, we expect roughly 80 basis points of margin contraction for full year 2024.

As with 2023, we expect sequential growth in revenues and adjusted EBITDA as we move through successive quarters in 2024.

As we realize additional gains from our growth initiatives.

Within that 80 basis points, we expect 25 basis points of contraction related to net structural cost increases.

As you are all aware theres been some disruption in the industry related to the change healthcare cyber incident.

James M. Head: More than offsetting that cost increase is about 140 basis points of expected margin lift driven by higher expected revenues in 2024 on a largely fixed cost base of our core business. Offsetting this lift is 125 basis points of margin contraction from investments to support our platform, which includes investments in IT and infrastructure, and about 75 basis points of contraction from investments to support our growth. In short, you're seeing us use the benefits of operating leverage to fund our growth investments, which is that balancing act that we are pursuing to enable our growth. Returning to page 13, our revenue and cost expectations imply a forecast of $630 to $650 million for adjusted EBITDA in 2025. Page 13 also shows other guidance related to our P&L and cash flow to help you estimate free cash flow generation for the year.

More than offsetting that cost increase is about 140 basis points of expected margin lift driven by higher expected revenues in 2024.

We have taken preventative actions protect our systems and data and continue to monitor the situation closely with our customers.

We believe this is causing delays in claims submissions upstream from our services.

On a largely fixed cost base of our core business.

Offsetting this lift is 125 basis points of margin contraction from investments to support our platform, which includes investments and icy and infrastructure and about 75 basis points of contraction from investments to support our growth plan.

But it's too early to determine what impact if any this could have on our volumes and revenues downstream over the course of the quarter.

As a result, our Q1 2024 guidance does not reflect any potential impact related to the sensor.

In short you are seeing us use the benefits of operating leverage to fund our growth investments, which is that balancing act that we are pursuing to enable our growth plan.

Turning to the balance sheet and capital allocation, our operating cash flow was $27 7 million in the fourth quarter and Levered free cash flow was negative $3 6 million.

Returning to page 13, Ah revenue and cost expectations imply a forecast of $630 million to $650 million for adjusted EBITDA I'm 24.

As a reminder, second and fourth quarters are lower quarters for cash flow, giving the timing of our interest and tax payments at <unk>.

<unk> reported for full year 2023, operating cash flow totaled $171 7 million of free cash flow of $62 9 million. Despite absorbing a $23 7 million litigation settlement $7 million of one time transaction costs for our BSD acquisition and approximately $13 5 million in additional cash taxes paid on the cancellation of our debt.

Page 13 also shows other guidance related to R. P and Alan cash flow to help you estimate free cash flow generation for for the year.

James M. Head: We expect interest expense of $320 to $330 million in 2024 versus $332 million in 2023, reflecting lower debt levels as well as the benefit from our fixed rate hedge that we placed on a portion of our term loan. We are forecasting capital expenditures of $120 to $130 million in 2024, up from about $109 million in 2023. We will continue to make capital investments in our platform, in BST, and in new products related to our growth plan. We expect appreciation of $80 to $90 million and a tax rate between $25 and $28.

We expect interest expense of $320 million to $330 million of 2024 versus 332 million in 2000, twenty-three, reflecting lower debt levels as well as the benefit from our fixed rate heche that we placed on a portion of our term loan b.

As shown on page 19 of the supplemental deck, we ended the year with $72 million of unrestricted cash net of cash our total and operating leverage ratios were seven three times and five three times respectively.

We are forecasting capital expenditures of $120 million to $130 million in 2024 up from about $109 million in 2023.

We will continue to make capital investments in our platform in B S T and a new products related to our growth plan.

We continue to be active and disciplined in allocating our capital as shown on page 17 of the supplemental deck during the fourth quarter, we used $17 6 million to repurchase $25 million face value of our 6% convertible senior convertible pik notes as well as $2 million towards the repurchase of our shares this brings.

We expect depreciation of $80 million to $90 million and a tax rate between 25 and 28%.

James M. Head: Finally, we anticipate operating cash flow to be between $170 and $200 million in 2024 versus $171.1 million for full year 2023, driven primarily by higher adjusted EBITDA and lower interest rates. Before I can turn to Q1 guidance, as you are aware, MultiPln established a long-term incentive and retention program for the BFT transaction to retain the management team and to align to future revenue targets. Our 2024 guidance does not include any impact of the incentive payments for which the first ARR milestone is at 12-31-24. These ARR targets are deliberately ambitious and will require performance beyond what is assumed in our current guidance.

Finally, we anticipate operating cash flow to be.

Between 170 in $200 million in 2024 versus $171.1 million for full year, 2023, driven primarily by higher adjusted EBITDA and lowering interest expense.

Total capital deployment for full year, 23% to $322 million, including $166 million of capital on debt repurchases and mandatory repayment that reduced our debt 222 million face value of $141 million on M&A and $15 million on share repurchases.

Before I can turn to turn to Q1 guidance as you are aware multiplan established a long term incentive and retention program for the BST transaction to retain the management team and to the line to future revenue targets are.

Our long term capital priorities remain consistent and our highest priority remains investing in the business to drive growth and long term value. You are seeing this in terms of our investments in the P&L and also our capital expenditures, which are grown have grown above our revenue growth rate in the short term to fund investments in the business. These investments are series of small bets which have attractive.

2024 guidance does not include any impact of the incentive payments of which the first a R. R. Milestone does at 12 31 24.

These are targets were deliberately ambitious and will require performance beyond what is assumed in our current guidance.

James M. Head: We should have a better line of sight if any incentives are expected by the time we provide our typical guidance update for the second half. As outlined on page 16 of the supplemental deck and in the press release this morning, for Q124, we anticipate revenues of $235 to $250 million and adjusted EBITDA of $150 million to $160 million. These projections are largely flat versus Q4-23 and reflect typical Q1 seasonal softness. As with 2023, we expect sequential growth in revenues and adjusted EBITDA as we move through successive quarters in 2024, as we realize additional gains from our growth in it. As you are all aware, there's been some disruption in the industry related to the change healthcare cyber and We have taken preventative actions to protect our systems and data and continue to monitor the situation closely with our customers. We believe this is causing delays in claim submissions upstream from our services.

We should have a better line of sight, if any if incentives are expected by the time, we provide our typical guidance update for the second half.

The risk return characteristics.

With our remaining cash flow will primarily focus on debt reduction, notably we've reduced the face value of our debt by $362 million over the last five quarters.

As outlined on page 16 of the supplemental deck and in the press release. This morning for Q1, 24, we anticipate revenues of $235 million to $250 million and adjusted EBITDA of 150 million to $160 million.

While our long term priorities have not changed following the acquisition of BST in the near term, we are likely to emphasize organic investments and debt reduction and deemphasize M&A as we've consistently mentioned.

These projections are largely flat versus from Q4 twenty-three and reflect typical Q1 seasonal softness.

As a result, you should expect us to continue making a series of small but critical organic investments to support our platform, including our new core products and our new data in decision Science services line and you should expect the bulk of our incremental capital generation to be allocated towards debt retirement in the near term.

<unk> 2023, we expect sequential growth in revenues and adjusted EBITDA as we move through successive quarters in 2024.

As we realize additional gains from our growth initiatives.

As you are all aware, there's been some disruption in the industry related to the change health care cyber incident.

We will continue to adjust share repurchase and as we've consistently said that will continue to be a small allocation of our overall capital generation.

We have taken preventative actions to protect our systems and data and continue to monitor the situation closely with our customers.

Before I end, let me summarize the broader landscape with.

We said 2023 would be a pivotal year for multi plan and pivot is precisely precisely what we did.

We believe this is causing delays and claim submissions upstream from our services.

James M. Head: But it's too early to determine what impact, if any, this could have on our volumes and revenues downstream over the course of the quarter. As a result, our Q1 2024 guidance does not reflect any potential impact related to. Turning to the balance sheet and capital allocation, our operating cash flow was $27.7 million in the fourth quarter, and levered free cash flow was negative $3.6 million. As a reminder, second and fourth quarters are our lower quarters for cash flow, given the timing of our interest and tax payment. As Dale reported, for full year 2023, operating cash flow totaled $171.7 million, and free cash flow was $62.9 million. Despite absorbing a $23.7 million litigation settlement, $7 million of one-time transaction costs for our BST acquisition, and approximately $13.5 million in additional cash taxes paid on the cancellation of our debt, as shown on page 19 of the supplemental deck, we ended the year...

But it's too early to determine what impact if any this could have on our volumes and revenues downstream over the course of the quarter.

We put our contract renewals in the rearview mirror, we set our new growth plan in motion and we've positioned the company well to deliver growth in 2024 and to accelerate that growth in 2025 and beyond we've.

As a result, or Q1 2024 guidance does not reflect any potential impact related to this incident.

We've managed the delicate balance of ramping up investments in the business to drive growth, while maintaining our industry, leading margins and we used our free cash flow to aggressively reduce our debt and expect our capacity for debt reduction to expand as we grow revenues and cash flow over the next several years in short our transformation is underway and I want to thank all of our multi plant.

Turning to the balance sheet and capital allocation are operating cash flow is $27.7 million in the fourth quarter and Levered free cash flow is negative 3.6 million.

As a reminder, second and fourth quarters are lower quarters for cash flow, giving the timing of our interest in tax payments.

His tail reported for full year 2023, operating cash flow totaled $171.7 million of free cash flow is $62.9 million. Despite absorbing of 23.7 million litigation settlement $7 million or one time transaction costs for our BSD acquisition at approximately $13.5 million in additional cash taxes paid on the cancellation of our death.

Colleagues, and especially Dale for working tirelessly to keep it on track.

That brings me to the end of my comments I will turn it back over to Dale.

Jim Thanks.

To our employees let.

Let me Echo Jim's note of thanks for their tremendous efforts this year and for everyone is the 20 plus years I have been with the company.

At.

As shown on page 19 in the supplemental deck, we ended the year.

It has been my honor and privilege to work with you to deliver on our important mission and I'm enormously proud of what we've built together.

Let me also say how important it was for me that our next CEO.

As passionate about health care affordability is multi plan has always been true.

Travis brings innovation experience and the energy that will drive our mission, even further and I couldnt be more excited for what the future brings under his leadership.

Im confident that multi plan is in a great position and in capable hands.

And now I'll turn the call back to Bruno Bruno Please open the call for any questions. Thank you.

Surely thank you.

Ladies and gentlemen, if you would like to ask a question. Please press star one when your telephone keypad.

Thats Star one.

On your telephone keypad.

To withdraw your question Star followed by two and pleased to also remember too and mutual microphone when is your turn to speak.

We do have our first question comes from Joshua Raskin from Nephron Research Joshua You May proceed with your question.

Hi, Thanks, good morning.

The chart on the 2024 revenue bridge was very helpful. It looks like your core out of network processing still the biggest growth driver of call it $15 million to $30 million $15 million to $30 million of growth can you tell us what the added network segment impact was in 2023 in terms of how much of a detractor that was and then where any other buckets net negative in 'twenty.

Three.

Well I think in 'twenty three Josh if you kind of go back to what we did a year ago.

One of the biggest overarching.

Headwinds was the contract renewals.

That was about a 9% headwind if memory serves it and that washed across all of our products, which are essentially in the core and then payment integrity for the most part so the compare is a little bit different I think what you might say is in our core out of network business.

<unk> the core base, it's about.

Closer to 200 to 400 basis points of growth, which is a little bit below our ambition that we put out at investor day, but pretty consistent and so we've got a clean compare this year I would kind of look at it that way Josh and then what we've got is a series of layers of some of the new growth drivers like HST and data in decision science that are going to add.

Add to that.

Okay, Alright, I think I got that and then I know you mentioned a little bit of this on the call, but you know our current period appears to be.

Seeing some pressure on utilization more so than the senior market may be more M&A than than fee for service, but are you seeing more demand on the Medicare side for cost containment products, where some of your newly acquired products.

That we're focused a little bit more on that market or those resonating better at this point.

Yes, Johnson sale, yes.

Obviously, there you've seen all the changes that are that are happening within Medicare advantage from CMS and the pressure around price and risk and is heightening. So we feel our data and decision sciences line of business.

Is tailored to meet that need and that demand. So we're doing a lot. We've done a lot of work in 2023 and will continue to do that work in 2020 for a route tailoring our risk models too for the senior population and we're excited about that opportunity as we move forward throughout <unk>.

24.

Okay and then just last one for me Dale you mentioned curated network says as a potential future opportunity and I'm curious.

If you could just give us some examples or maybe a little bit more what that means is that geographically based is that sort of segment based is that specific type of customer chronic disease I'm just curious with curated networks look like.

Yes, I think I think it's a great question. The curated network concept right is focused on bringing the best best providers to the table from a cost and quality perspective, and managing the utilization through that provider does not necessarily based bye bye clinic.

<unk> specialty Josh it's more based on looking at that instead of having a large all inclusive network is really zeroing in on those providers, who can deliver on cost and on quality and provide the best clinical outcomes for employers and the best cost outcomes for them.

Lawyers that that's our plan it is geographic specific meaning we're going to target certain markets as opposed to doing something nationally, but we're going to zero in on those markets, where we believe there is opportunity and demand and interest for a port network like that.

Okay perfect. Thank you.

As a reminder to ask a question. Please press star one.

Thats Star one on your telephone keypad.

Our next question comes from Luis <unk> from Citigroup.

Your line is now open.

Hey, this is Louis soccer, Daniel gross but just had a question on your Corpus Guide you mentioned back in your Investor Day.

Youre thinking about like 4% to 5% medical cost inflation annually.

Here's a competitive one.

How should we think about the.

I think we have been longer I think we think about the longer term as kind of four to five I think near term.

We're not even expecting that inside our inside our guide.

And one of the reasons why it just lags theres, a big set of renewals coming up in the throughout the health care.

Ecosystem over the course of the next via where things have started to tick upwards, but we haven't seen the full effect of that so I would say we're conservative on health care inflation. We're also conservative on utilization I would just comment on the utilization front.

And pretty consistently we saw an uptick in the first half and continued normalization throughout the year kind of to a new level, we did not bake into our guidance any material upswing.

<unk>.

In utilization and I think thats consistent with what we're seeing from the hospitals et cetera, which is.

Some good year over year compares but don't I'm not sure from a labor perspective from a capacity perspective, they have room for another dramatic uptick so I think we're being pretty conservative on both of those components.

We currently have no further questions and that concludes today's call.

Ladies and gentlemen, thank you for joining you may now disconnect your lines.

Thank you.

[music].

Q4 2023 MultiPlan Corp Earnings Call

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