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Cano Health (CANO)

Participants
Dr. Marlow Hernandez Co-Founder, Chairman and Chief Executive Officer
Brian Koppy Chief Financial Officer
Jailendra Singh Credit Suisse
Ralph Giacobbe Citi
Josh Raskin Nephron Research
Brian Tanquilut Jefferies
Matthew Shea Piper Sandler
Justin Lake Wolfe Research
Call transcript
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Operator

Good morning, and welcome to Cano Health Third Quarter 2021 Earnings Call. Currently, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Please be advice that today's conference is being recorded. Hosting today's call are Dr. and Officer; Chairman Chief Brian Co-Founder, Officer. Financial Hernandez, Chief and Executive Koppy, Marlow press link of release, materials Health Cano The webcast on Investor website. are and the Relations Health's section Cano available related other statements views at various management's risks, made and subject assumptions. and and expectations of X, this November These XXXX, are reflect uncertainties are time, to as

years. best are forward for today on As future Act no or events the We Act. otherwise. forward-looking Securities financial of the performance, and you statements a future Exchange obligation not the We and currently covered Safe regarding or information, XXXX events caution by materially. reminder, these revise the contained XXE this of forward that result of Harbor and statements call as our results Section factors based We XXXX be judgment actual to that forward provisions Securities undertake new fiscal to events our XXA to reflect statements a known Section of looking looking us statements differ contains future guidance intend rather in as forward-looking any the and including could of update statements for looking

GAAP Relations website. Health. section provided Cano Chairman in we also non-GAAP prepared call, historical discuss today reconciliation results non-GAAP in A that, our ahead. CEO Co-Founder, Investor Dr. turn release go of over The and the press Please to the Hernandez, Marlow today's on and financial are I'll is accordance measures. With and financial the call During of will the of not measures discuss non-revenue we will with GAAP.

Dr. Marlow Hernandez

which earnings quarter to appreciate everyone We to joining Health and stronger welcome and results in delivered discuss you expansion. call. operational our you third us our quarter third Cano Thank

momentum, again continued and XXXX XXXX. once guidance a we're our raising for of result As

wellness our primary that model removing century is day, more to through Cano I for foremost, reality patients. team their vision ensuring And optimal care the X,XXX about dedicated the costs. is and for thank entire the more Once to who go it want in new leading the our professionals are XXst we're members solutions with provide than basis at quarter. with and again, health Health's they commitment, This quarter, outcomes care closer is I patients unsustainable through and Today, outcomes Before Thanks and continued provider. Health that century quo access, and memberships to provide transforming Every got across to privilege we past dignity. Cano America's patient to patients into model. country, hope ever, drove a have industry to have produce importantly, team. strong and increased This communities become better perhaps to passion of medical serving we're barriers and status healthcare presently optimization. from growth detail we inequitable by for and revenue more the becoming earnings bringing the and because lower first and quality we patients care, patients XXst all vision this to

of this clinical and optimizing disease high Heart while to core cost calls. is backbone improve medical I've incidence our provides by launching of that financial strong health profitable that our delivery centers, CanoPanorama. density growth. that out performance and based control care the our healthcare which built hospital. We're patients, continuing CanoPanorama enhancing drive strategies to management and is the tackle discussed an to cardiovascular programs Juan care the clinicians in previous in professionals Our the key value tech-enabled by by members solution model costs, turn while population in of America. of for the keeping and community. and individual helps Rivera, quarter, an end-to-end unique platform feel our health is in this healthy At such health patient model Healthy a entire also markets, as high scale The is of novel Dr. of

navigate and difficult sources pandemic, times, has hospital these by data actionable room real emergency diagnostic, to admissions, During CanoPanorama consults. primary laboratory coalesce helped us from the care us COVID-XX time multiple allowing including visits, visits specialist

are allowing to integrated other guide assess together, population. care data Taken by patient and while to clinicians customized the our treatment entire well optimize risk being Cano primary this and providers Health used of plans

to standards managing In centers medical within operations by months, CanoPanorama the clinical a our building centers. high achieve just addition, and the our platform Health and through quality few performance rapid drive for scalability empowering of buying Cano growth medical supports financial

infrastructure states In announce that growth fact, being to because avenues our XXXX of I'm technical Puerto in eight plus our it's have already we goal that accomplished and operational pleased Rico. stated of

density in with model. of key those of and noble as I've that our opening achieve Advantage we medical build which the important to growth through the As growth is discussed And high the flexible component in markets, and a corporate past, An density underserved scale populations. define centers. is we strategy Medicare that model

density As always de market novo I isolation. a before a de share scale with where outperform we you already and in have will built novo a

We're in due markets existing entries is markets market believe into We we this markets. which substantial, why recent our increase far in think presence especially in have about they and entered rival will our we our new these several Angeles and is density excited the Los foreign time in year Chicago. our opportunity Florida. in markets So largest

XXXX Nevada, our to thus Texas novo far de de Southeastern excited very and in including are or in pace XX we the of and presence novo medical on opened Florida by centers and we this have have Mexico New year. expanded XX addition, In end

also standards, are acquisitions when areas key Doctor's through wanted to. for powered various membership can rigorous both the as selected Moreover, Turning date, Health patient year, major always potential and improve well and they DMC of and The integration. measurably performance their Health, our speak as healthcare programs. unique Cano happy participate equity themselves. or enhanced newly performance synergies At these Health quality, care and to care an place great for with have apply growth them. evaluate that clinical management objectively record onboarded ownership Cano the leverage ownership very our other We can makes Medical in clinicians in they and compliance in have CanoPanorama with results University stake The professionals we and fulfillment acquisitions, Care way to work. combination of a professional CanoPanorama we to we validated our of this to and Center which track

University a of clinician have For we DMC retention within example, and rate voluntary nearly XXX%.

model, Dr. he refining U.S. and now new Correspondent Juan highly an new became primary That healthier thought designed dramatic patients this early his a the designed national particularly prevent network. Rivera healthy Hispanic Let Heart about the individualized stroke. be completing live you respected through clinical health talk important choices. built factors, by Johns program thriving and such centers. in The to our to probability TV is leader have cardiovascular is predict care. risk care to And Univision lifestyle the we through believe treatment care Medical cardiovascular at a private for health care. Juan are to program our objectives why practice, exciting Healthy we medical based He's or is delivery Dr. will industry trusted heart cardiovascular attack a a financial them within community, our as when that endeavor. working do Hopkins, setting Heart disease of reduce because and and honored me serves figure, is all are of fellowship lives, The positive and leader standards. significantly better a in Chief patient We're After a on and medical education value and suffering our about detection, Healthy aligned. constantly impact program within we with

financial hospital update Speaking website since COVID-XX healthy, admissions of been showing May supplement you patients give monthly seven patients patients total the average an average how has will our case me day our COVID-XX our our August. this It COVID-XX illustrates In instance posted daily X,XXX that per deck call about last and and our quarterly impacting keeping since on in on our admissions. you morning, find XXXX. and slides for also let

incidents you the case illustration, over As fallen two months, and our have Cano's hospitalizations last see already were pandemic peaks. below can the dramatically in which

protocols As address to admissions other our clinical has anti-retrovirals delta therapies, the our and to we adopt variants continue cases through we're new to manage like data. stand experienced evolving members, ready and strong and successfully which by

population that rate patients least of virus before, to that we've safest of repeating, in of one achieved XX% Center protecting than We Cano pandemic at I've of the lower statistically, time senior as the for proud a be are this this very with one said success at is members. mortality during but our patients Florida. is from Health a or Medical our bears it places the any

proposition. to value Lastly, I Health on the Cano want touch

recurring the our to a illustrate revenue a by We We a supported government. today website provided perform growing and this additional model under slides our have posted supplements financial topic. population necessary on to service

times Cano prevention care, Our focus more in services about receives By earlier, spends Health outsized better who or lower average efficiently. chronic from our actively XX substantially same benefits XX% and members the of identify than services, cost. and roughly provide average. downstream different our to models, new primary two are because centers We primary more our That's from offering times payers costs. conditions can investing and significantly the thereby coordinate come we more other revenue care lower we for of on investments where to more more national on can patients on year, per care. manage conditions

members Our trusted needs, out rooms. emergency source members, care our keeping health a of and healthier for providers serve the as

and families for passions. care reduces other investment they and in waste primary improving while medical economic cost patients and medical their Our the to pursue focus that physical there turn, so that and And in can their lowers their expenditures. be health third-party

benefits our driving down care overall quality have Our medical the operating models improving demonstrated in primary of investment while costs. by

here's medical for of revenue to member we that for removing X% quality cohort Advantage access find by illustrates our not we patients Cano behaviors outside identified. line that to lower contrast, CAGR is ratio our The increases. Advantage the platform produce have stakeholders. a primarily is cohort with wellness, an Medicare X% by decline medical this, increases not outcomes quarter through our of important summary, combined members' X% conditions, They're vision due our America's expect change because improvements would primary But repeating analysis the increase as our that a CAGR a capitated more this In the in and creates for bottom continued reductions, to our because conditions cost better premium revenues costs value of members X% and out and aging Our CAGR. those of but conditions model. to managing care to barriers of achievements chronic the claims Medicare similar this the for costs CanoPanorama, only become a Health all in age are is to by driven ability have chronic medical advance we dramatic providers this increase significant is chronic because revenue or

who turn details will call outlook. our will on Chief our Koppy, and Financial Brian I the additional performance walk through over you financial Officer, Now, to

Brian Koppy

our which posted are for quarter, primary mission to and provide day Marlow in services to patient service work you driven a you, employees and We results centered, us joining care medical focused today. Thank excellent thank to the members. everyone testament financial our every

long-term profitable and deliver execute to to strategy on our continue growth. sustainable, We build manage

in operating as goal results growth in key Our rapidly markets. grow achieve is we to consistent

while and that. controlled This spending healthy We to into corporate direct new in markets. for do revenue, quarter third-party growth. expanding our and demonstrates care future ability patient expenses, growth our adjusted anticipation membership EBITDA just our We produce

of We also and continue affiliates. effective acquired centers the newly our integration medical

roughly is member increased This XXX,XXX quarter members the our guidance Xnd X,XXX XX% of our Medicare, of ACA Doctor's Medicaid increase an XXXX ago. to Memberships This approximate track DMC. Note third Medicaid year or Advantage members of Medical quarter's a for our to that and XX% approximately the our solid members, XX,XXX result ACA. from puts were XX,XXX In XXX% Center on quarter beat in acquisition XXX,XXX and membership prior includes July were year-over-year Medicare members and XXXX. members our XX% us end from quarter.

revenue this in about PMPM our membership operational which of morning operations, mix is our was of Total on and Medicare year-over-year. increase and expansion. per improvements up revenue reflects detail million. Medicaid for $XXX of capitated XXX driven posted membership revenue Medicare available was Rico our acquisitions, million, $XXX. Total growth other was and updated strong XX revenue financial was capitated the website. $XXX $X,XXX quarter million month member press the an per Additional by and This business slides XXX% by PMPM in million. increased was revenue release our recent third supplement line quarter It revenue approximately in engagement. Puerto member approximately third primarily PMPM in and our revenue included

mentioned at As reduced acquisition quarter. the second the quarter our of high in its enrollment with Medicaid call, our PMPM DMC pediatric

primarily our by expect of powered driven XXXX the XX.X% continue medical The in driven prediction, quarter and to XXXX. this PMPM for CanoPanorama on was continued to third utilization lower and in second prevention claims quarter based sequential XX% programs of periods. care effectiveness We the the management ratio intervention. future of decline expense The was compared data

fourth a expect of medical ratio approximately quarter XX%. expense We claims

cost As expense to to holidays of stop-loss elective second year covered as typically medical our in discussed the compared and expense members lowest quarter more last half due are defer claims have realize fourth insurance. a by of specialists medical because quarter, half. ratio lower The tends higher procedures we and the claims ratio first the to members

claims of year in expense continue project medical full of the XX%. XXXX, approximately For to we ratio

direct expense. to on Moving patient

growth. professional was driven $XX ratio patient quarter $XX Selling, increase the quarter ratio points for Overall, our general, compensation our XXXX, expense XXXX. of The For the our and were $XX related sequentially quarter. to the XXX primary for of drivers XX compensation stock third million The XX%. increase generally direct The and an was points million, direct quarter third was volume to versus improved basis $X Overall, increase patient approximately basis increase to the expense expense third second administrative SG&A higher XXXX. primarily quarter, approximately an expenses sequential second million the due Company of from to expense fees the higher of of of XX.X%. $XX of stock-based million transactions. sequentially recorded increased million

currently of than year the was awarded Stock stock on expense of rate we the value rollout further the estimate. $XX plan the $XX the quarter. million Plan we be Company's for during third based XXXX, expect for granted encouraged compensation of approximately $XX Adjusted from as was increase. our well quarter very The well implementation higher prior which was previous XXXX our and million estimate XX% long primarily shareholders. compared creating received to For for The Employee with XXXX million by ESP or our which employees, Purchase full the awards, grants are by and the the by of participation stock-based quarter to our employee increase is driven ESPP as term employees third the EBITDA aligns

quarter. third million million related for versus which Interest recent XXXX, activities. quarter for XXXX quarter last X.X% the of result, a quarter margin was $X.X our adjusted includes of X.X% expenses the expense for As in third one-time the our EBITDA financing to was $XX

approximately that expect full are outstanding acquisition to the the And expense today. This currently certain there to are of and as the XXXX XXXX. XXX for Class a Class regarding will includes upon in escrow be which and year million released approximately million. interest For performance consideration shares quarter in shares issued of metrics shares and $XX an of third satisfaction shares of we B reminder, million X.X A held seller XXXX, combined about as as be outstanding

leases $XX with third ended million turn Total due revolving credit. the was quarter million cash of liquidity. $XXX million under term cash me the payments available the line third let includes of our in capital We sellers. and debt to to about end and our flow at and Now, $XXX quarter and debt

million net cash. total total $XXX is Our less as debt defined debt

X.X is for Our ratio adjusted pro of to complete forma EBITDA, total net debt acquisitions million.

the an $XX from deployed was for $XX XXth, and million, billion and For cash ending increase September million of the months year, $X.X acquisitions. approximately activities prior used operating nine we

cash XXXX, slightly cash operating for approximately are CapEx to and be year expect used expected used XXXX. full that we the $XX quarter previous in will activities positive. novo $XX De confirming be the in approximately be estimate expenditures maintenance and our operations million, fourth to million For

time. of expect and year over operations to delver full we allow support XXXX, that to operating the For continue cash our strength the to acquisitions existing of the growth recent us generate and positive flows will

turning guidance, increase Now prior X.X is now projected XXXX X.X prior billion. of membership versus be approximately EBITDA approximately million. guidance to our XXX,XXX, million of guidance range approximately XXX,XXX. to approximately projected we from $XXX updated billion Adjusted $XXX approximately to is expect prior to Revenue to compared our the be of be an

XX medical XXX expect open and operate de centers novo We medical owned approximately centers to year-end. by

we are also For XXXX, improving our outlook.

X.X to be is estimate $XXX adjusted for to $XXX EBITDA billion previous membership million increase approximately compared million, the an of $XXX X.X expected expect million. X.X XXX,XXX Revenue million. be to XXXX expected XXX,XXX. be of the million estimate We $XXX X.X to range to of to XXX,XXX to the previous And of from to in to the billion to estimate from XXX,XXX previous billion

to ongoing the to projections are Health be of is generating remains de buying for demonstrate opportunities success build the by consistent, that, continues strategy. and built scale The open sustainable amount and density year. density our through the individually your practices. manage expected will allows medical Using XXXX. in open medical time the approximately de of medical expected greatest novo enrollment second strategy and in to open momentum of least capital de our profitable and in million. we to questions. outside and centers XXXX our at capital. us with centers shortest growth each expect or most these growth build to the In In to updated ask use call XX This to most the to and completed the efficient depending Cano operator be expenditures Florida provide period market and of of results the conclusion, of $X.X ensuring available these number to half underway, majority market will support the amount novos in I'll we early as Importantly, combination, on the effectiveness managing XX of A to next building, novo avenues continue risk, With growth patients of leadership. XXXX, of

Operator

Thank you.

We will Your now Suisse. question the from line begin from Singh the [Operator first Instructions] question-and-answer session. Credit of is Jailendra

line now open. Your is

Jailendra Singh

compared can. talked A just couple MLR XQ et about are there have out But higher what already I your else talked around on the Brian, you you MLR, remind one what call I percentage XQ members guys the anything seasonally that with And about threshold hit of the other have? XX%, data implied us understand any outlook some your your of of have than of peers would have threshold? persons, about? follow-up for stop-loss companies variances if some protection MLR cetera. production And around XQ stop-loss

Brian Koppy

Sure.

We hospital approximately fourth And care is terms ratio half. about of about, claims expense This lower talked expense half health has we zero in we programs really year powered talking drive during you ratio. talked further, second stable proprietary to second think health the medical most due then the you MCR comprehensive seasonality them all our treatment as or co-pays it projecting pandemic, the a quarter. our year-to-date, our protocols, the a first been business when a Medicare implies utilization, have we result which in really year, is XX% expense population Advantage we've by last of then, favorable the certainly the holidays, care And have driven lower in and which ratio. our truly fourth about. by And which ratio which management, than management full of approximately half that analytics, what the medical a of benefit do deductibles. -- about within In COVID XX%, expect down pattern time which given example. CanoPanorama, about is throughout admission, is demonstrated will generally be lower quarter in cost days, we're lot medical XX.X% As claims our for to have the plans,

on it's seasonality. also into from we stable seasonality So, MCR that year the the as have incurred $XXX,XXX it for move by attachment throughout the the you with in that's first mentioned, have that of costs give various the a members. But the take, attachment stop-loss will a exception the kick for a in the most generally you as there's that a where relatively quarters half But point about claimants protection And or no or high some those year. have overall perspective, generally do point roughly will pairs. year, back be those three the you speaking, half that's of does

throughout from So about be ratio to the medical done what we've of feel managing good and this feel our we year year about claims and perspective, pandemic able and full projection XX%. approximately good that accomplish our really

Jailendra Singh

you maintaining de would quick then Maybe some those helpful. area half like outlook This you has those can this many And on year, follow-up, confusion. are Thank related year color next target. be have on there are for another for de provide that. to on Any spend been XXXX well you. is novo's you some hitting cadence? it visibility time guys and you expectations on track Any for partnership? How where are my seems novo half, details on of Humana second the seems first

Dr. Marlow Hernandez

Jailendra. me on that COVID-related take for questions next were year, delay, year track the bottom this Despite that's let and and really Yes, line.

enrollment. initial half XX. have and high but we we're for burn would indexes, reason that And year, February, open is, use get more in the those having in we that of QX, very not open we're centers of and doing to enrollments our cash generally reiterating until centers QX, Generally, are well. the we you we thus what this in QX out to XX overall, XX have our to forecasts than for the at enrollment, obviously to longer bit with second liked of periods, a The capitals. the year. example. course, taken material have that of best sensors open a number QX, Some for the end confident And open, of range before is And the of January, XX

and primarily the So expected stagger tend flowing year, the But we of them of the that are because is partner model of of for as next, XXX of next guidance growth record we the we're -- of increasing a that and geographies year Humana Humana ours. this really in million mentioned, a on of great that, our and second and membership we're this bringing in why as ensuring in we've that's outcomes new centers. to lot half us fact, and to relates I track patients got proven year. well in revenue multiple by track which driving than also demand seeing it is terms of affiliated your patient our is through a improving strength the profitable better

of terms digit, centers. low in exclusive expect single We the digits of number Humana

majority the be me will centers. the markets that Texas, to Illinois. and buy manage payer like build will will let majority as strategy, in We them our of overwhelming Florida The be payer. outside will be say of part continue open majority but agnostic Also, California

Operator

from Ralph of Giacobbe You're from the is Citi. line next questions

is now line open. Your

Ralph Giacobbe

bit. recent little that Medicare and a was around bit higher trends has bounced a X,XXX PMPM The little than

expect how that of wondering, related as to deal DCE? largely within that or is sort you see the do volatility base And a sustainable maybe Just that?

Dr. Marlow Hernandez

on coming thank. also similar be we've -- continued ratable or that Yes, coming we still we acquisitions, as our we Medicaid around the so would as for Medicare again, what in, will a the the our that about of population PMPM the XXX. certainly once that that the we X,XXX and them talked projection board. the the business of the for the as forward. Yes, run for acquisitions improvement change on going that rate is is lot And that mix those is with a of Medicaid, bring overall And with view believe PMPM projections run mix

Ralph Giacobbe

to related that. just then And

CAGR slide the X% on showed premium of example. illustrative You that and sort

past, As you of rate the which we adjustment piece, XXXX year. be smaller should we it's a the about sort for outlook positive better next imagine and sort to still How the but for overall think increase of about nonetheless, I think risk suggested I want XXXX? PMPM is tailwind, and think going didn't in rate

Dr. Marlow Hernandez

very with come two, premiums this Therefore, margins. contribution another or what Panorama, generally the months also and year. I would the to for the that will excited expense expect medical to to lower six we of with which members in significantly in seen seen continue you're new the have lower value clearly number a need the period. member year, tenure year which investment a new There but a of will would over you be into high say XXXX, all materials of those our those not lowering de next in believe, consistency with particularly occurs and an certainly trend, about be, I which populations historical within full seeing novos integrate at but three

our line growth continue lot those right We top a into being not but bottom to the And able tune. line of significantly centers, fine our only and are as membership, more we're business, opening profits, growing we're growing back well. investing to

health process. differentiated de the novos and the in our population growth and tuck-in of already Our affiliates, organic pace highly accelerating platform,

and to is an and country do we markets and out well the those market build We've have the country's platform, to in our to result So, not density Advantage. scale Medicare opportunity that only the enviable as invest our as but in continue growth top highly for of some already profitably in differentiated. leadership already of in care, a across got value the markets, continuing based so which

Operator

the is Josh line of Research. from Your Raskin next from Nephron question

now line open. Your is

Josh Raskin

question My I questions. guess two

The now one as I first XX he Puerto is just states markets. defined Rico, in specific think eight that

how juggle cost XX separate of then medical able of a enough think do step sort that CanoPanorama perspective? you working et when of And the management a now, all the confidence you're you cetera? sense is have markets that with a get including the management, on? to going data taking even from So they to back operating to gives come all maybe you as implementation of be trends What markets

Dr. Marlow Hernandez

Thanks Yes. question, the for Josh.

excited opportunities are our the and We new markets. about very

that me those in states. we're therefore, Let we and density, on scale key focused to stress markets also continue believe within

in has but Company I'll affiliates, medical We one, health greater for demand, to our NPS surprise for now been score, And within not other NPS that consistently is APCs in of scores and in the channel patient quality perform have also states but is operating in being quickly multiple markets, and to-date, of expected a highlight in scalability centers very pleasant experienced only you a score portability scores our out see quality example, great a service, low XXs. across how a metrics. markets, the NPS amount that those proved multiple standards. number

of quickly. basic of getting is necessary real that's our quality of demand And markets It's plus course, operating growing had is plans. of mentioned And it patient which in a a of combined for our deal scale within not world differentiated, for that, them that to to And it's scale XX scarce. with I gives that I just to So with and rather a only years the now with confidence and back revenues leads population business performance, the data outcomes. number and pieces recurring to service model, the differentiation, model. service, financial XX us highly it great goes in a incredibly combined

further, the we corporate forecasting are that, confident that bottom You in And And we've why confident building leadership, this everyday, top and line and is to inexperienced highly great our that highly can we're to in next. got leadership. a market team. add increases this year fact now our

Josh Raskin

And guidance. then that second it understand at maybe leverage, times and I Is in let's impediment, there's point. just M&A EBITDA no an call question on X.X this

M&A? fragmented Would in you equity think need scarce, status. to using don't you ways first. to this mount for consider ratio potential about are opportunities to leverage know I So incredibly going point, your relay impediment some as that industry Is transactions? your larger you But

Brian Koppy

what We close we positioned Yes, eye understanding growth our strategy. a believe our deliver out we But question. there. it's well a are on to pipeline, to continue to opportunities are great keep

our strength to keep look While growth like we all opportunities various businesses, and debt which continue front and to continue at range to levels that improve those options us. us which to recent growth where acquisitions the are generate leverage. help to as very earnings, in we current continue do we we'll deliver upper expect operations which is allow our to cash, reduce us table the what support our of have of which would at we the we us existing good of overall And grow, time. be, generates businesses, upon allows we find the and And on we and over improved to

continue we'll So, a is I example quarter, continued improvement. to great our of that. do think, financial And this

greater to will that As it we us opportunities. up this through open next quarters continuing go couple momentum

Operator

Shea Your next from the question of is Matthew from Piper Sandler. line

open. is line now Your

Matthew Shea

Wondered, acquisition Los if for and Was did looking there? was on Angeles expand with Just some missing you not there you an could something? color? Chicago be the de Or I novos? expansions,

Brian Koppy

in of all stand many at And is locally that, have buy and our said us avenue legs We've risk. amount conserve we on then a in strategy able would infrastructure we in And capitalize are been to time. accelerated least scale specific that and platform simply once both least Chicago. they clear, allows and the into markets the is Los our Therefore, de most plus, Brian the the in a will amount time not growth any scale. tuck-in patient right, more that very bring one, are looking of some I and communities limited based by like those acquisitions opportunity. these course be at and may achieving yes, report do select have value mentioned. at we're opened de of market as always up opened we we a synergies. and enviable that and the care, the years, with are but share would of value de repeatedly three build opportunity scale and of the other amount the do there Today, to and density. manage, short serving to them decision material we as stool not believe of that And plug are we And for membership and adjacent always practices is which those Angeles we hence, to the significantly if CanoPanorama, the of based acquisitions improve do to of we tools, just generally members. continue And larger novos. local we but manage answer Yes, many novos, have outcomes novos today, to market increase out to do patience no number make respected to of we type and Tuck-in is measurably

Dr. Marlow Hernandez

where do add lead we just question that. think I implying, always acquisition. I'll an your It's with one was

the that's Now, part nice model. about the

look in keep lead to multiple table optionality market every enter of time deployment option the the various avenues on capital. we and markets expansion that have we We at and we the the so

Matthew Shea

such And then raise XX And about maybe to-date, novo side, think to there in as for October, de opened then the QX in QX confidence into like just you many XXXX? in versus gave how centers way opened opened to numbers year drilling assuming full October? is the any were somewhere what the now

Dr. Marlow Hernandez

a don't opened we've well as longer little got visibility our visibility I there The to clear were open September bit and to the XX had membership. XX is XX some. them of centers a have us soft exact open. took COVID Well, that and to we we centers know XX and count as for service said, of opening forecasts several ahead that because quite number and got confidence into also stations the we've this on I

Operator

the Your of Jefferies. is next from Brian Tanquilut line question from

line is now open. Your

Brian Tanquilut

for guess I housekeeping a So question to me start. just

at the was is a right quarter looked members recognition And of about since number MA of that? As thinking probably number? ending in quarter your revenue about month, a terms member the commercial to recognition, implied and revenue I was membership about think should quarter on the anything XQ about that be month way end. there Is

Brian Koppy

thinking the pretty And about difficult ratably. when in then acquisitions. No, mean, member it's you're comes the with I that I in keep membership don't you, the mind months think, how

we what that'll some than to what will when into analysis, the other come of through the month So our it's all get roll materially change when acquisitions think, systems member pretty skew count the trying stable driving. you're each of that I to. that quarters, that's -- them you're in we go as But generally, if

Brian Tanquilut

And just then a follow-up.

that As your the anything terms us of direct I you there? with just contracting performance about think you're in numbers, seeing to-date can share

Brian Koppy

it's consistent what in second quarter. saw the very Yes, we with

them operations DCE the our and and We book it on CanoPanorama past We program. care improve overall And takeover as sustainable growth our in the that are Medicare to into still think continue and them system our the population. on into believe is, teams importantly, long-term opportunities. our, we about integrate really members, and bullish of we will very to manage clinical of the DCE we bring business the to as provides talked today

and where from moving move I'm DCE expect along XXXX happy that we So growth come how the we with program. as into very to with it's

Operator

question from Research. of the next Instructions] Wolfe is Your line Lake [Operator Justin from

now is line Your open.

Justin Lake

ask question. to wanted the I

patient a I that? your received your your sourcing third wanted or XXX% haven't just like One from employees? anything, relationships confirm but from you parties transportation or DOJ terms peers of you ask is direct with your your And around you, in brokers of patients and third-party any anything are request of believe coming you else also own third-party that efforts, your gotten growth agents, of marketing then So, relationship? to

Brian Koppy

to to third-party facilitate as Justin, it to essential we the have services, care not relates of received primary any marketers. such access use notice. We provide transportation

We and not And us proven. we is our it, bright of don't have demand generation do of We simply and compliance. for We is control will our competitive including want lines marketers. not are work strategy part to use third-party not. aspect believe that cross. every There

Dr. Marlow Hernandez

country. Prior reiterate company let in XX-year Since the record public, compliance here, listed compliance, as our we history public, services patients. growth, of centered all on over centered a going our culture care of And on fastest provision have that me we to within track is period. expectations the exceeded of going our primary a growing were

marketers. do use answer and short So we third-party use will not not marketers third-party is,

Justin Lake

my then is center around follow-up And here growth.

next for robust So very plan you've got year. a

that you XXs centers, Just number post Is target kind think of as about a forward think we of use new in future kind in there. we terms from growth about to should that high of a center in de it's of kind being terms where of in to focus terms would us growth in three the tough of XXXX, outlook of Or know of be specific? novos? I too without year terms to kind five

Brian Koppy

question. great Yes,

We back. buying managing. us take on building, and Just focus

go XX we centers So, we our projections for for would everyone's have I want over know de XXXX. to novo be But time looking change presented dependent are from XX to we novo to de that in as and growth, where there. flexible said, us. will opportunities on

I think and our markets, buy those given outlook, continue our manage we'll to scale longer continue start that's probably we that to to density But as various a good in statement benchmark our strategy. refine to the increase term reserve I'll use. build the

now. it that's of think think So, about as the I way to

Operator

There are no further continue. questions. Presenters please

Brian Koppy

joining Amy right. if thank you there's and please out for everyone Thank questions, Wilson. reach or you. to follow-up any All Well, myself

Dr. Marlow Hernandez

time. everyone. your Thanks Appreciate

Operator

And today's with call. that, this you conference attending. for concludes Thank

disconnect. now may You