Q2 2024 The Oncology Institute Inc Earnings Call
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Speaker Change: Conference Center, can I have your name please?
Speaker Change: Thank you, this is for Rachel Smith
Speaker Change: with IAERA, which, and you need the oncology, you need the Oncology Institute Conference.
Speaker Change: Yes. Yes. I told you so.
Speaker Change: All right, thank you.
Speaker Change: That obviously won't be an issue in Q3 and Q4. Plus we have the go-live of all the capitation contracts we signed in the first half of this year in Q3 and Q4, all culminating in both improvement in drug margin as well as improvement in our capitated revenue in our existing sort of clinic footprint. So that's where we're seeing that.
Speaker Change: fairly significant pickup in Q3 and Q4 as we look at the rest of the year.
Speaker Change: Okay, got it. That's really helpful. And then so maybe just on the dispensary piece then, if you back out some of the DIR fees, it looks like margins perhaps getting
Speaker Change: a little better, is that fair to say, on sort of the core margin XDIR fees in Q1 and Q2, that sort of that progression we had thought about is improving or is it still holding about the same?
Speaker Change: That's exactly right. Yeah, so there's other factors as well because of DIR fees. So there's, you know, additional improvement in margin related to
Speaker Change: expansion in the actual business, party business itself, leading to improvement in our rebate tiering, there's seasonality effects which hit in Q1 which then wash out in the back half of the year, all of which drive additional margin improvement in Q3 and Q4.
Speaker Change: Got it. Really helpful, Dan. Last one for me, Mihir, appreciate some of the comments you had on cash flows.
Speaker Change: I guess entering the quarter, the thought was some of that.
Speaker Change: receivable impact we were seeing related to change and other disruptions, you know, might reverse. It didn't really reverse in the quarter. I just want to make sure I got your commentary right. You know, how should we be thinking about
Speaker Change: You know moving cash burn forward in light of some of the working capital efforts that you that you highlighted
Speaker Change: Thank you very much for watching this video.
Speaker Change: Thank you all.
Speaker Change: So, the impact of changed healthcare was almost all reversed in Q2.
Speaker Change: The increase in AR and Q2 is solely related to our pharmacy business.
Speaker Change: which about 90% of which is from Medi-Cal, state of California, Medi-Cal-Rx, where the state were holding trunts for about three weeks due to its fiscal year-end.
Speaker Change: Those funds have been collected in the first half of July, so it was timing due to states holding funds due to its fiscal year end.
Speaker Change: Okay, got it. That's really helpful. Appreciate all the questions, guys.
Shaq: Thanks so much, Shaq.
Speaker Change: Thank you. Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
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