Neuronetics, Inc. (NASDAQ:STIM) Q4 2022 Earnings Call Transcript

Daniel Stauder: Yes. Hi, thanks. Just touching back on the previous questions surrounding the coverage policy updates. You mentioned this creates a larger funnel of patients and runs the market, but do you feel that the coverage criteria has been a gating factor for adoption in the past?

Keith Sullivan: I think what slows down our implementation within a practice is getting physicians credential and onto the insurance programs, so that’s the number one factor. Number two is getting the reimbursement actually paid and the struggle that we have is that every single patient has to go through a prior authorization process with some of the payers it’s simple with other payers. They rejected out of hand and then you’ll have to do an appeal. Typically, they approve the appeal if the patient has met all the criteria. So yes, it is a gating factor here. But quite honestly, I think with the moves in Medicare and now United Health Care leading the way, I think we’re encouraged that they are finally recognizing that they need to make the access to care simpler.

Daniel Stauder: Great. And then just one follow-up for me. You’ve called out higher utilization in your per click segment as a driver of treatment session revenues for a few quarters here, I think double digit for the last two quarters. But you’ve highlighted some of your initiatives that are driving this. But if you could point to one or two aspects that’s really leaving the charge here, what would those be and then what could this look like in 2023? Thank you.

Keith Sullivan: So, I think the couple of points that help drive that utilization. Number one is our practice development managers. We have invested heavily into a team of people right now we have 47 of them that are each account is assigned to one of our practice development managers and each one of those managers is responsible to generate awareness, education and help capture those patients within the practice and educate their staff from the front desk to the treater on exactly how to do that education. So I think our practice development managers are the tip of the spear for us and they’re the ones that are deploying the PHQ-10s in the practice, who are doing the 5 Stars to Success, which is a pure education at various levels within the practice, including marketing. So, I think those are really our driving force. We rely heavily on our practice development managers and now NeuroStar University to help educate the accounts.

Daniel Stauder: Great. Thanks a lot.

Operator: Thank you. Our next question is a follow-up Bill Plovanic with Canaccord. Your line is open.

Bill Plovanic: Great, thanks. Just to ask the question again on the Greenbrook, I mean, as I reread the announcement, while they’re shutting down a lot of centers, they say that it’s only a little over 10% of the revenues. And if I do back the napkin math just based on some of the commentary, it sounds like at the low-end you’re looking for Greenbrook down closer to 25% to 30%, if you’re assuming at the midpoint the rest of your business is growing 20%. Is that the trends you’re seeing in the business today at Greenbrook? Or given the newness of the information, you’re kind of — the low-end of the guidance is almost assuming a worst case scenario just because you don’t have a lot of information upon which to make that decision today?