Nutex Health, Inc. (NASDAQ:NUTX) Q1 2024 Earnings Call Transcript

Tom Vo: Yes. No, no. Basically, the whole premise of the QPA is that they have to use the median in-network calculation, and in using the median in-network calculation, they have to exclude any hospitals or providers that do not provide a similar level of service. And so, for example, and let’s just say in a regional, if there are, say, 10 hospitals and only three hospital provides emergency services, which is similar to our model, then they could only use the median in-network rate of those three hospitals that provide emergency services. The other common hospitals may not provide emergency services, and so their payment may be a lot less. And so the court back in 2023 ruled that in calculation of the QPA or the media in-network, the insurers cannot use what they call the ghost [ph] rates, which are the inclusion of the rates for the seven hospitals that do not have emergency services.

They could only use the three hospitals that provide emergency services. And so that’s where I think there was a lack of clarity, and I think that’s where the insurance company used to sort of, like, cause that. The reduction in revenue. So I think that. I’m sorry. Go ahead.

Bill Sutherland: Yeah, so they’re now. So they’re now abiding by that. That structure you just talked about with, you like for like to create the medium.

Tom Vo: That’s right.

Bill Sutherland: Yes. Okay. That’s good.

Tom Vo: That’s a law. Whether or not the insurers follow that, hard to say.

Bill Sutherland: Okay. I think that’s all I’ve got. Appreciate all the color, guys. Take care. Yeah.

Tom Vo: Thank you, Bill, for the. Excellent question.

Jon Bates: Thanks, Bill.

Jennifer Rodriguez: Great. Are there any additional questions for the Nutex team? Okay. On behalf of the Nutex management team, we appreciate everyone for dialing in and listening to our first quarter earnings report. A recording of this call will be available on our website for a limited time. If there are any additional questions, please send an email to investors@nutexhealth.com, and we will do our best to answer in a timely manner. Thank you for joining, and take care.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.