It’s official: Heath Sampson is the president and CEO of Modivcare Inc. (Nasdaq: MODV).
Sampson, who had held the interim role, let stakeholders and other interested parties know the four things on his plate for the next 90 days during Modivcare’s third-quarter earnings call Thursday.
“First, solidifying a high-performing executive leadership team, which includes finding my successor as CFO,” he said. “Second, realigning and reallocating certain resources to drive efficiencies and operating leverage, while freeing up teammates so they can continue to improve the member and customer experience, and drive organic growth.”
Another area of focus is implementing a “disciplined operating model” with distinct objectives and metrics.
Plus, the company wants to establish roadmaps for process and technology that align with its one member, one customer approach.
“Our processes and technology will be developed to enable our point solutions to provide a tailored member experience,” Sampson said. “Additionally, without distraction to our point solutions, we will align resources appropriately and build capabilities to cross sell our point solutions, and progress our bundling and value-based care strategy.”
As a company, Denver-based Modivcare offers technology-enabled health care services and provides non-emergency medical transportation (NEMT). The company’s Modivcare Home division includes its personal care, remote patient monitoring and nutritional meal delivery services.
As he takes the helm — having served as interim president and CEO since August — Sampson noted that he’s excited about Modivcare’s competitive position and market tailwinds.
“Our diversified business currently generates durable results,” he said. “Now, it’s all about execution in order to build on this foundation for near-term performance that drives long-term shareholder value.”
Modivcare’s excitement is backed up by the home division’s strong performance.
The company’s revenue for Q3 was $648 million, a 31% increase compared to $493.1 million during the same period last year.
This was partly driven by the 43% growth Modivcare’s personal care business saw.
“The macro environment remains capricious, primarily due to inflation and the labor market,” Sampson said. “That said, we have received favorable reimbursement rates for our personal care business, which has helped with caregiver recruitment and retention.”
Breaking down Modivcare’s home division, the personal care segment raked in $169.2 million in revenue for Q3, a 42.8% increase compared to $118.5 million during the same period last year.
The company’s RPM segment brought in $18.8 million in revenue for the third quarter, compared to $1.6 million during the same period last year.
Sampson noted that during Q3, Modicare received Medicaid credentialing in a couple of new states, including Nebraska and Missouri. The company has plans to enter several more states by the end of the year.
“Our forward-looking priorities and monitoring will focus on innovating across all value streams, as there are near-term opportunities to provide new solutions to our customers quickly,” Sampson said. “And the competencies within this business will be the tip of the spear to value-based care.”
When its comes the company’s personal care segment, Modivcare will makes moves in order to improve its operational results and reduce costs over time
“We are centralizing non-caregiver centric functions and certain operational processes, which will free up our community-based personnel to focus on care delivery, and caregiver recruitment and retention,” Sampson said.
Staying on the topic of its personal care segment, Modivcare touted its caregiver retention rate for being almost twice the industry average. The company sees this as something that will continually improve.
Ultimately, Sampson believes there are a lot of factors that point to continued success for the company’s personal care segment.
“We see a lot of tailwind for personal care due to continued strong demand and support for rate increases, which enabled us to increase wages, as well as shift by payers to more value-based care arrangements, which we are participating in today, and we’ll be doing more so in the future,” he said.
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