LifeStance Health Group, Inc. (NASDAQ:LFST) Q2 2023 Earnings Call Transcript

Ken Burdick: Yes, that’s an ongoing discussion and ongoing initiative. As we said in our prepared remarks, increasing our level of engagement with payors is really important. Certainly, the rates are important. But it’s also the terms, and it’s the way in which we partner for mutual benefits. So, we want to be a good partner. We want to be able to minimize the stress and strain for our patients and their members as they access mental health treatment, which is a courageous decision in and itself. So removing barriers and everything from the credentialing process to the payment process, including reimbursement is just going to be an ongoing dialogue with our payor partners. The reduction in payor contracts was done for many reasons.

The first reason is because we were looking to simplify our administrative burden. And so this first tranche, as Danish said in his remarks, literally had de minimis impact on patient visits and revenue because these were contracts where we’re seeing very, very little visit activity. Now, as we go further, we’ll continue to review this and make sure that the payor relationships that we have going forward fit our sort of our best interests and the best interests of our patients. So, we’ll be looking at rates, we’ll be looking at volume, we’ll be looking at the terms of the relationship.

Brian Tanquilut: Maybe Dave, just one quick follow-up, you drew 25 of the credit facility. Is that just a timing thing? How should we be thinking about that?

Dave Bourdon: Yes, that was a timing thing, that was related to funding, our acquisitions that were early in the year. We accessed our DDTL, the delayed draw term loan facility. And that was again, just to maximize flexibility, so we put more cash on the balance sheet.

Operator: There are no further questions at this time. This concludes the question and answer session. Gentlemen, this concludes today’s conference call. You may now disconnect.