ModivCare Inc. (Nasdaq: MODV) believes it can leverage its footprint in the home and transportation services to become a major value-based care player in the U.S.
Modivcare’s Non-Emergency Medical Transportation (NEMT) services give patients access to reliable rides to health services. The company is the largest broker of NEMT in the country and works with local, community-based transportation providers, managing more than 75 million trips per year.
It is in the early stages of bringing on “preferred partners” for its NEMT programs to provide more consistent services across the board to its members.
ModivCare Home President Jason Anderson detailed the recent success of its NEMT service segment during Thursday’s first quarter earnings call.
“From a utilization standpoint, our trip volume continues to increase marginally on a consistent basis,” Anderson said. “In certain states, it’s approaching or even exceeding what it was pre-pandemic.”
ModivCare reported revenue of $574.5 million, a 26.6% increase compared to $453.6 million in the first quarter of 2021.
Based in Denver, ModivCare offers technology-enabled health care services and provides NEMT, personal care and nutritional meal delivery services.
In September, the company completed acquisitions of CareFinders Total Care and VRI, a personal care provider in the Northeastern U.S. and a remote patient monitoring group, respectively.
Those acquisitions increased revenue by $58.3 million. NEMT revenue also increased year over year due to higher trip volume, which drove higher revenue per member in Q1 2022.
Favorable rate outlooks for home-based care services also helped ModivCare’s standing early this year.
“We’re seeing strong support for in-home care from our states, as demonstrated by the fact that we received reimbursement rate increases in each of our major personal care states for 2022,” ModivCare CEO Dan Greenleaf said during the call. “To this point, we are in the final stages of a value-based care pilot agreement with a national payer. We intend to demonstrate our ability to seamlessly deliver care across all our solutions, while enhancing the member experience, reducing costs and improving outcomes.”
Looking ahead, Greenleaf said he expects the company’s growth opportunities will come from care moving into the home, while its NEMT services generate even more revenue.
“Our home business is growing organically through accelerated caregiver recruiting initiatives in existing markets,” Greenleaf said.
Anderson also said ModivCare is altering its caregiver recruiting initiatives, one of its 2022 priorities. The company will also be looking to grow both organically and inorganically as it evaluates M&A opportunities in new and existing markets.
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