Evolent Health, Inc. (NYSE:EVH) Q3 2023 Earnings Call Transcript

John Johnson: It does not, Sean.

Sean Dodge: Okay. All right. That’s clear. And then I guess apologies if I missed it, but on the performance suite expansion with Florida Blue, are there any details that you can share in terms of number of lives involved and maybe expected revenue from that when it’s fully ramped?

John Johnson: Yes. On the revenue side, we’re expecting north of $75 million on an annual basis going live probably in Q1 of next year, and that represents a little north of 150,000 MA lives.

Operator: The next question comes from Jessica Tassan of Piper Sandler. Please go ahead.

Jessica Tassan: Hi. Thanks for taking my questions. I wanted to start with just on the $25 million of prior-year claims development year to date that you mentioned. Is that related to MSSP or NCH, or is it kind of diversified across the businesses?

John Johnson: Yes, it’s a good question. That is all the specialty performance suite. So, that does not include anything with MSSP.

Jessica Tassan: Okay, awesome. And so, is that against all of the risk contracts in the specialty business launched in 2022, or is it some subset?

John Johnson: That’s the majority of it, that’s right, that launches from 2022.

Jessica Tassan: Okay, got it. And then just one quick one and then one sort of philosophical one. Should we think about the cardiology NCH tech and services contract with Centene as similarly sized versus the $5 million to $10 million run rate you gave us for the oncology launch?

John Johnson: Generally speaking, cardiology is a bit cheaper than oncology in MA, and so it would be a little lower but same general ballpark.

Jessica Tassan: Got it. And then finally, hoping you guys can just describe the seasonality of the performance suite sales and kind of launches around the Medicaid procurement cycles. Can NCH contracts be launched at any time during a Medicaid contract? And just what would you or the management team’s philosophy be around announcing those types of new partnerships in terms of timing? Thank you.

Seth Blackley: Yes. Just on the last question, there’s not really seasonality, I wouldn’t say. I think it really depends upon where the plan is in their own cycle of managing the cost structure of the plan clinically. sometimes, they may be interested in doing it, early in a new state launch, which we’ve had a couple of those, right, over time. And sometimes, it might just be with a plan that’s already up and running in a year or two into the contract. So, I don’t think there’s much of a cycle or philosophy got announced, and it’s generally going to be, the quarter after we sign it, we generally let everybody know.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Seth Blackley for any closing remarks.

Seth Blackley: Thanks for everybody’s time. We look forward to connecting soon. Have a good night.