MultiPlan Corporation (NYSE:MPLN) Q1 2024 Earnings Call Transcript

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That’s how I look at it. So, the core of the business is healthy. We have good products and services that we offer. And we’ll look at new market segments, which I’ve talked about in the past. And then ultimately, I think we have data assets that we can utilize both internally to build better stuff with data science, but also potentially externally. And so that’s how I view the business as kind of that inside-out view as we go forward. But we’re fully committed to the work that we’ve done and we’ll build and grow from that because it’s really a healthy sustainable way to grow and build the business over time. And so that’s a focal point for us for sure. And what was the second half of the question I probably I missed it.

Jim Head: Just the new — [indiscernible]

Travis Dalton: We basically identified kind of five pillars that we think we need to execute on to run a great public company, serving our clients being, attacking and fit for new growth, so new products and new ideas in development. Operational excellence through the use of our tools like Salesforce and ERP, which we’re implementing. So we can get better insights into the business and predictive models around our revenue growth and otherwise, talent and people and then innovation. And we sat down as a group, when we did a bottoms-up and a top-down and we identified metrics and performance indicators, I’m happy to share those. They won’t be a secret. And we’re going to track benchmarks and performance against that. And I think by looking at those 5 vectors altogether, that will gain momentum and understanding as a company, and we’ll be able to predict the business.

We’ll also be able to accelerate growth. And so that’s kind of the operating model that we’re seeking to drive through.

Jim Head: I would not call this a revolution. It’s more of an evolution. And I think what we’re finding is the demand side is strong. We’ve got a lot of opportunities. And what we’re trying to do is sharpen our focus on our operating model so we can stay really aligned on what’s going to be the best and highest use of our energy.

Travis Dalton: Yeah. And I said to the team, and we’ll — as we — there’s no shiny lower here, right? That’s not what we’re doing. We’ve got a good business. It’s fundamental. We’re going to build great stuff for our core clients. We’re going to continue to enhance our products. We’ve got 20 product enhancements in the pipeline as part of our process. And then we’re going to look for new market insights and opportunities in other segments and across the continuum of health care. I think we have some assets to build on. And we’ll see. But that’s what I believe, and I think the market will bear that out.

Unidentified Analyst: If I could just squeeze in two more questions. One, can you just give us an idea you talked about facilities, but how behavioral health and recovery volumes have been trending over the course of the last few quarters. And then second, there’s been a lot of negative headlines over the last several weeks. And I get that you guys are just going to continue focusing on what you need to do. Most of the headlines and Altos that we saw arguably nothing new for those who have covered this credit for a long time. But there’s a domino effect. And you have the Clover letter now to the FDA and love to just get your thoughts as to how you guys are viewing this, how deep this does go? And how are you managing this process? Thank you.

Jim Head: Yeah. Rishi, I’ll take the behavioral help. I mean, I think the trend — I think you rightly noticed that the trends are growing in behavioral. And there — it’s interesting. There’s a lot of out-of-network activity around that because it just because these companies are sprouting up and rapidly growing there is not a deep level of in-network activity. So we’re seeing some trends up there. But it’s still not a giant piece of our business, Rishi, but it’s clearly an area of growth. So more to come on that, but I think it’s — the payers are very focused on this as well and making sure that we’re staying on top of this arena. And I think the trends will be pretty strong going forward.

Travis Dalton: And on the second part of the question, yeah, I think we spent good part of our call today kind of answering what we believe is the value proposition of the company with facts and information, I think we’re going to continue to do that. In my view, I kind of look at this as it just — to me, it really illustrates that we need to explain what we do. So I think we have an opportunity actually to talk about the value we bring our brand. I view it as us having a bigger voice than we probably had. We’re known now. We’re out there. So that’s not a bad thing. We’ll go out and educate. I expect for us to go talk to stakeholders, policymakers, those in the industry and really have an open, honest dialogue. And as I said earlier, I truly believe this.

I spent 20 years in the provider side that there’s a mutual interest in health care, I just truly believe that and I don’t impute motive I believe that everyone wants us to work well, and we play an important role in rationalizing that market. And I think that’s an important thing to do. Is it well understood? Not really, but the opaqueness of health care is a problem across lots of different vectors, not just in this space. But we’re going to continue to do that. We’ll manage through it. We’ll engage proactively and we’ll continue to express the virtues of our brand as we see it. And that’s what — that’s — but most importantly, we’re staying focused, as you noted, and not getting distracted. We have a lot of work to do.

Unidentified Analyst: Thank you.

Operator: Thank you. [Operator Instructions] We currently have no further questions. That will be concluding today’s call. Thank you, everyone, for joining. You may now disconnect your lines.

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