Premier, Inc. (NASDAQ:PINC) Q4 2023 Earnings Call Transcript

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Craig McKasson: Yes. Thanks, Jessica. This is Craig, I’ll start, and then Mike can add color. So the decisions to continue to invest in the adjacent markets and the growth opportunities in Performance Services, I would not say is tied to our strategic alternatives. It is an ongoing diversification strategy that we’ve had for that business to actually look for opportunities and find sweet spots where there are other profit pools or markets with life sciences, employers, payers and suppliers in the case of Remitra, where we can actually extend things that we’re doing for the benefit of providers, but also provide benefit for those other stakeholders and there are growth opportunities there to actually scale those businesses to deliver greater revenue in the future.

As we’ve indicated, the 20-plus percent revenue growth in the adjacent markets that we’re experiencing versus the more low to mid-single-digit growth in the provider landscape. And so that’s the reason that we’re making those investments. And then in terms of the areas, the focus continues to be the applied sciences arena. And as Mike described, the things that we’re doing from a real-world evidence standpoint and the ability to help change the way that portions of the clinical trials are delivered in the marketplace, clinical decision support as we continue to look for opportunities to automate prior authorization and actually create efficiency in the system for both providers and payers through eliminating a lot of the manual effort and the clinical resource needs that actually take a lot of time and effort in that particular space.

And then in Contigo Health, as we continue to look to do the build-out of the national network for payviders. Those are the real three primary areas. Remitra, as we talked about last two quarters ago, we sort of have reset and will continue to be balanced in the way we think about making incremental investments in that business as it scales.

Mike Alkire: Yes, Jessica, the only other build I’ll add is that we sit in a very unique space in health care in that we’ve got these very, very strong health care system partners, and we love to innovate right alongside of them. We have committee structures that allow for us to understand what their business issues are and then for us to build on capabilities and technologies and services to support them, be it to be a labor extender or to help them as they think about ways to reduce costs and standardize the way they provide services. In that same spirit because oftentimes, as we work with many suppliers from a GPO standpoint, both medical devices and pharmaceuticals. As we’re in those business line discussions, we’re understanding what the issues are that those organizations are dealing with as well and are able to work with them to think through are there additional capabilities that we should be building out that could potentially be an exciting profit pool for us to invest in?

So I want to continue to drive that level of innovation just, because we sit — where we sit in health care, and I do think it’s very, very unique to Premier. But we appreciate the questions and thank you.

Operator: This concludes our question-and-answer session and Premier’s Fiscal 2023 fourth quarter and full-year earnings conference call. Thank you for attending today’s presentation, you may now disconnect.

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