Anthony Capone: Yes. That’s exactly right. So the contracts are written in such a way that majority of these individuals not only do they have or let me take a step back. The reason why they’re being assigned to us, DocGo specific niche is for individuals that have care gaps because they haven’t seen their primary care provider in over a year. And so that means they’re in need of care. And so when we go into the home, we provide that care, whether it’s a diabetic retinal exam or diabetic foot exam or the annual A1C. We also then say, well, you’re usually polychronic and then we will offer if they’re the medical necessity to have them monitored, RPM and then manage through CCM as well as potentially become their attributed PCP.
And one should become their attributed to PCP, there is the possibility of potentially taking on increasing opportunities with that payer, as you normally would as a PCP. That’s obviously something that we’ll evaluate in the future. It’s not something that we’re doing right now. Our goal right now is to just simply close as many gaps as possible. And then to enlist patients that will have the greatest need into our monitoring and management services.
Operator: The next question we have comes from Ryan MacDonald from Needham & Co. Please go ahead.
Matt Shea: This is Matt Shea on for Ryan. Thanks for taking the question and congrats on a nice quarter here. Wanted to follow up on some of the commentary throughout the call, Anthony. It almost sounds like with some of these newer deals, they’re different than deals of the past where you might start smaller and scale over time in a more regimented way with these dates that you would scale up. And curious if that’s a conscious decision that you guys have been making in your new contracts, meaning that you don’t have to have such high upfront starting costs in the event that it is. How is that changing some of your expectations on what kind of hits to the margin line, these new and larger deals could have? Could we see in the future where some of these deals are more gross margin neutral to start rather than negative from day one?
Anthony Capone: I don’t think the actual contracts and their ramp schedule have changed substantially from the past to now. I think what has changed is we’re seeing the benefits of our rapid normalization initiative, which we put into place in Q1 and kind of worked out through Q2 and now we’re really getting to the end of Phase 1 of our rapid normalization initiative. We’re really seeing the benefits of those because those are long-standing contractual changes in the way that we work with subcontractors as well as things with our fleet, and I’ve iterated through all of those points before. But when we look at some of the new projects that we launched in Q2, they already started to reap the benefits of that rapid normalization project because those improvements, they span the entirety of the company.
They weren’t just onetime fixes. We didn’t put some Band-Aids on some marginal issues. We fundamentally changed the way that we operate. So now we can launch at the same speed but without the same margin pressures. That doesn’t mean there’s no start-up cost. We still have a Phase 2 of the rapid normalization initiative, which will begin on probably in later Q3 but we’ve mitigated them fairly significantly. When you look at the marginal improvement from Q1 to Q2, almost 500 basis points, the majority of that is attributed to the success of the rapid normalization project.
Matt Shea: Got it. Makes sense. Just wanted to check on that. And then touching on another win that maybe didn’t get covered as much, the Dara transport network. I would love to hear a little bit more about that, what it would take for you guys to kind of see the supply and demand sides of that network. And then as it grows, what kind of either revenue or margin expectations you might have for that?
