Transcript
Melissa Holeczy (00:00) hi, Peter. How are you? Hi, Brandon.
Peter Bosworth (00:03) Hi, Melissa. How are you doing? Good. Hello, hi… Brandon. How are you doing?
Brandon Gross (00:11) Well, thanks. Nice to meet you.
Peter Bosworth (00:14) Nice to meet you as well. Where are you calling in from?
Brandon Gross (00:16) San Diego?
Peter Bosworth (00:19) Sunny, San Diego. What about you? Melissa?
Melissa Holeczy (00:22) I am in Pittsburgh Pennsylvania. Not so sunny… raining right now, nice.
Peter Bosworth (00:29) Yeah, I have cousins in Pittsburgh. Yeah.
Genevieve Seney (00:33) A lot.
Peter Bosworth (00:34) Of bridges.
Melissa Holeczy (00:35) Yes, lots of bridges and rivers. Well.
Peter Bosworth (00:41) Nice to be connected. And thanks for jumping on this Friday. I don’t know if we’ve met. I’ve met with dr Desai before speak of the devil. There he is… there’s. Dr Desai.
Peter Bosworth (01:03) Hi, dr. Desai. How are you?
Melissa Holeczy (01:06) Good. How are you? Am I the only one there? Oh?
Peter Bosworth (01:12) No. Your team is here. Yeah. So we were just getting started. I thought we would do some quick introductions at the jump. So I’m Peter bosworth, I’m an account manager here at medallion. And, yeah, I take care of some of the commercial components of the partnerships here, but I’ll have Jen from our side introduce herself as well.
Genevieve Seney (01:32) Hey, guys. Happy Friday. My name is Jen. Sini, I’m a manager on the account management team. Yeah. Also just joining Peter to sort of talk through easy health where you guys are today and plan for path forward, good to meet everyone.
Peter Bosworth (01:49) And if you don’t mind doing some quick intros on the easy health side, that’d be great.
Melissa Holeczy (01:53) Sure. My name is Melissa hollisey. I’m the VP of clinical services. So credentialing team is underneath my umbrella. Nice to meet you.
Brandon Gross (02:03) And I’m Brandon gross. I’m the director of finance at easy health. So just here to talk contract details.
Peter Bosworth (02:12) Excellent.
Peter Bosworth (02:18) Okay. So, for a quick agenda for the call plan is to review some of the kind of historical trends of consumption in your contract, discuss the overconsumption and then hopefully pivot to how you anticipate growth looking between now and the end of July when the contract ends. And then based on all of that conversation, establish some next steps. Anything else you’d like me to cover on today’s? Call?
Melissa Holeczy (02:53) No, I think as we get into that, we might have some other questions, Peter, so that’s probably a good place to start.
Peter Bosworth (03:00) Okay, great. So easy health is in a one year contract. It goes from July to July. In your contract, you purchased 220 core seats which are the provider seats themselves. These are priced per provider per year. The ncqa… compliant monitoring kind of works in tandem with that. It’s our ongoing monitoring of sanctions and it’s… going to happen continuously in the platform also priced per provider per year. But the bulk of the cost in the contract is going to be the credentialing files themselves. So these are kind of priced per unit… you request them. They become consumed and they kind of count towards your consumption. This is where we’re seeing kind of the bulk of the overconsumption. So so far to date, you’ve purchased 43,360 dollars worth of medallion services and you’ve consumed 48,323. So we’re kind of over by 4,963. So we are about 68 percent of the way through the contract and you’ve consumed 111 percent of the total contract value. And so when a, when that happens when you’ve kind of eclipsed the total contract value that’s when, you know that’s kind of why we’re having the call today is that we need to reconcile that difference and have a, an agreement in place to kind of bridge to cover the overconsumption and then bridge the gap between now and July twelfth of this year. So it becomes, you know, the ask, is hopefully to maybe we can better understand like what’s in the pipeline for you all in terms of credentialing providers over these next few months between now and July, but I’ll pause there and see if you have any questions on what I just spoke about. Yeah.
Melissa Holeczy (05:17) Peter, just to clarify, thank you for this information. So, your medallion core, that is our platform, right? The use of the platform that’s our cost and such there, is that correct?
Peter Bosworth (05:30) Yep. Exactly. That’s like the software fee to host the provider on the platform?
Melissa Holeczy (05:37) Okay. And then the credentialing, the ncqa, the purchase of 100 that is the initial credentialing and fees associated?
Peter Bosworth (05:50) Is that correct initial or recredentialing? Or?
Melissa Holeczy (05:54) Recredentialing? Okay?
Melissa Holeczy (05:59) And are we… with this and what you’re sharing? I know that we don’t have a specified rep with the contract that we’re in what is the thresholds for that?
Peter Bosworth (06:18) Are you saying like a engagement… manager? Yes?
Melissa Holeczy (06:23) Yes.
Peter Bosworth (06:25) Yeah, Jen, do you want to speak to that part of it? Yeah.
Genevieve Seney (06:29) Yeah. I can speak to that. So based on your services, essentially, what we could do today, right? Depending on what additional needs you might have for your credentialing, it really just varies on volumes, right? So, how much dedication does one need for an account and how complex the account is? So kind of a few different things. But based on today’s, discussion, if this team does need or foresees additional sort of credentialing volumes throughout the remainder of your contract, that would certainly be an addition would be the engagement manager.
Melissa Holeczy (07:04) Okay. So Jen, are there certain thresholds of providers like what we’ve purchased, the 100, is it 200? Is there a certain threshold?
Genevieve Seney (07:16) No, there’s not necessarily like a threshold. Again, it’s just kind of more depending on the complexity of the contract. And I.
Brandon Gross (07:23) would.
Genevieve Seney (07:25) say like the threshold being over… a certain contract amount is when the engagement manager would step in because of how much volume you’re looking at. And so I would say like again, based on discussions today, we would likely add an engagement manager to your guys account because of how you’re trending for your volume.
Melissa Holeczy (07:53) And I don’t know if anyone else has any other questions because I was just going to ask is what from the standpoint of you said July twelfth, right? Peter, is that’s when our contract goes through was July twelfth, 20 25 to July 26, correct? Do you?
Genevieve Seney (08:11) Guys, I guess have an idea of what your credentialing volumes might be from now until then?
Melissa Holeczy (08:17) I think, I believe they’re going to continue to go up just from, based off of nurse practitioners and from different service lines and such. So those numbers will continue to go up. I don’t have one off the top of my head today, Jen, but of what that would be?
Genevieve Seney (08:40) No, absolutely. I mean, and that’s obviously exciting to hear. It sounds like you guys might be hiring and growing. And so, yeah, sorry, Peter, I’ll let you jump back in, but I guess maybe after today’s, discussion, would it be possible to sort of take a look at what those volumes look like and get those back to us. Sure.
Brandon Gross (09:00) And I had one question. Do, we started medallion, right? For the first year in July of 25? Was that the, when we first onboarded?
Peter Bosworth (09:12) I can answer?
Brandon Gross (09:12) That one, do we have a prior product as well? The?
Peter Bosworth (09:16) Conch. So you began with medallion back in 20 20… two.
Brandon Gross (09:24) Okay. So we’ve been a while, so, I guess one, one question I have on, the credentialing component we purchased 100. I would be under the impression that would, in a given year that would only encompass one new people that we’re adding onto the platform. And then anybody who is subject to recredentialing, which is as I understand it, is that an annual thing Melissa? Or is that a, the 36 months that you mentioned six months? Okay. Yeah. So that, I mean, in that regard, the credentialing component, it’s not going to move in line with, you know, like we’re not going to have another 200 NPS that need to be credentialed in the next contract year. There, there’s going to be some new hires and then a bunch I’d imagine don’t need additional credentialing each year, right? So.
Tk Desai (10:19) So, Brandon, the reason we numbers jumped up since we are there since 20 22, a lot of folks from 22 got are getting re credentialed now. I’m pretty much re, credentialing a whole bunch of people almost every other week, you know? So that’s probably is accounting for that higher number. The best way to figure this out. We had to see how many people we hired in 23 and 24 are still with us because they’ll be coming up for re, credentialing this year and next year, so, that plus additional new hires. So if so, the, so, who’s going to use up over 100 slots. So, if you have 100 people getting re cred, then obviously, there’s no space left for the new initial verification that we do, right? So, do you, do we have in your database guys, you know, Peter ability to tell me who’s been there since coming up for re, credentialing this year and next year? How many people? Yeah. So.
Peter Bosworth (11:32) And, in the platform, when you’re in credentialing there’s a tab called scheduled, re creds. And so between now and the end of the contract, there’s about eight files that are eight providers that are scheduled to be re credentialed?
Tk Desai (11:50) And how about after that, and?
Peter Bosworth (11:53) Then after that, you know, there’s a there’s probably I’m just kind of on the fly here, maybe like 10 more in 20 26. And then there’s a bunch in 20 27, 20 28.
Tk Desai (12:07) So, what does that mean? If you look at the next year, July to June for next renewal? Do we have a like a ballpark figure was going to come up for recred in the next cycle that’ll help Brandon understand and even Melissa understand how much room we have for new hires, right? Because we had to, we are, as we grow in different states, we will keep on recruiting more and more people. And if let’s say, if the count from July to June next cycle is 30, then we only can get 70 more before we go over this, right? I.
Brandon Gross (12:48) Just did, some quick math… based on our current headcount of NPS we’re going to have in the next contract year, we’ll have about 40 35 to 40 that are, will need recredentialing. So then we’ve got just effectively 60 60 net new hires in the next contract term that we can absorb. And.
Tk Desai (13:13) If I can, if I may ask another question, how many new hires did we do in, this cycle last July to this June? What is our total primary initial verification that we did this year? Because that’ll obviously to… get to two or nine, we did something here. I don’t know how many were recred, how many initial, I don’t know, but that’d be worthwhile to understand because we can, I, it’s only the March and we already shot up to two or nine. So something isn’t jiving here. Yeah.
Brandon Gross (13:53) It would be good to get the, whatever level of reporting you guys can share that’ll help us kind of reconcile and then plan for the next contract year where we need to be. Yeah, the one?
Tk Desai (14:03) Thought, is that because when we merged, when we got a whole bunch of mergers, well, no, they were already on, we moved mergers almost two years ago, right? Peter… was it 100 160 or some odd number of people? We moved them in 20 24. I would say… yeah.
Peter Bosworth (14:29) So we have all of the reporting that we have is also available to you and, we can pull it for you as well. But if you’re interested, if you go to account and then usage… there will be a tab called consumption details. And so that would show all of the files that were included in this contract year, that count towards consumption. And also just the scheduled recreds tab is helpful for planning what’s going to count in the future?
Tk Desai (15:04) Yeah. And.
Melissa Holeczy (15:05) I just looked at the future. I was just doing some really rough counting through that recred. So if we look at then the next, so this goes to July 20 26 and starting August 20 26 and then forward, it looks like there’s about 67 on there for that next time past.
Peter Bosworth (15:25) This contract?
Melissa Holeczy (15:27) And.
Peter Bosworth (15:27) typically.
Tk Desai (15:28) Melissa, sorry, one question, Melissa for last July to this March, how many new people did we did initial verification?
Melissa Holeczy (15:40) Yeah, I’m looking at that now.
Peter Bosworth (15:50) And so typically, also we do, you know, multi year agreements that’s pretty standard across all medallion contracts. And the benefit there being that, you know, if it’s a two year agreement, a three year agreement, whatever you, if you under consume in year one, it pushes over to year two. If you slightly over consume in year one, you can pull from year two. The point being that we’re trying to avoid, you know, tying you up in contracting conversations and just giving you some legal room on either side. How?
Brandon Gross (16:26) Does the pricing change like unit pricing change, doing multi year contracts at current volume? And then also at an additional volume tier, what do those price breaks look like on single year contracts and multi year contracts? Do you have like something you could share?
Peter Bosworth (16:43) Yeah, it’s definitely like dependent on the volumes. So we would have to kind of go through that conversation. I don’t have like a quick answer number to give you right now. Okay?
Brandon Gross (16:57) Maybe that could be a takeaway. I would say like I’d want to know what pricing would be like on a two and three year contract at current volume that we have. And then also same.
Tk Desai (17:10) Thing.
Brandon Gross (17:12) But assuming that our volumes went up 50 on each contract on each level, like 50 and 100. So instead of 220 and 100 if it was like 270 and 150, and then maybe 320 and 200 kind of thing just so we can see how that scales. Yeah, yeah, I think that the short answer is that we will have to do an analysis either way of what we’re projecting. But I like the idea of a multi year in that, you know, we’re always going to err on the side of shooting under because if we go over, we’re just paying the delta and maybe we’re paying a higher per unit price, but it gives us more flexibility versus if we overshoot in a year, you know, if we assumed it was going to be 200 credentialing and we only used 150, then we just paid for 50 that we lose out on, right? So… that’s kind of where my head is at in terms of how to structure like the next contract. And then I’m even thinking about if we were to just renew a contract in let’s say April just start it early and go two years kind of thing instead of and then just like incorporate our overages and all of that.
Genevieve Seney (18:24) Yeah. I guess maybe like we can have a bit of that discussion. Sounds like we’re kind of going down that path right now for this team, I guess like, what thinking from now, obviously, your contract ends July twelfth. Like… would the preference be to sort of give us volumes from that you anticipate now through July? Are you thinking at this stage of an early renewal?
Brandon Gross (18:51) I was kind of thinking more of what like early renewal. And in those projection of volumes, I would guess between now and July, we might have, I mean, what, I don’t… know what we’re expecting to be recredentialed, maybe roughly 10, 10 additional plus, you know, five to 10 new hires. So maybe like another 20 is my a very rough guess, but Melissa could probably refine that estimate a little better.
Melissa Holeczy (19:21) Yeah, it’s I’d say the recred is about what we were saying around the 10. I’m just actually pulling the ones from this past time. Dr Desai was asking.
Melissa Holeczy (19:30) Wow… looks… like from credentialing because they would be listed on that, Peter, they’d be listed as credentialing and cqa, right? Yes.
Peter Bosworth (19:43) Yep.
Melissa Holeczy (19:46) Dr Desai. I think in that time frame and if we’re looking from last July forward like 202 110.
Tk Desai (19:59) How many? I kind of missed that one? I.
Melissa Holeczy (20:03) have 210 and I’ve got these other different statuses in here, but this is just pulling from last July twelfth. And after, excuse me, until currently that we credentialed.
Melissa Holeczy (20:22) I have to fine tooth comb this a little bit just to see if this sounds right. But this is just what I quickly pulled from there from the consumption details and.
Peter Bosworth (20:31) you.
Melissa Holeczy (20:33) had on here, Peter, 209 we consumed.
Peter Bosworth (20:37) Correct.
Melissa Holeczy (20:38) Yeah, that, I guess that’s it. Yeah, because I, it was my title thing, but yeah, 209.
Tk Desai (20:47) Okay. So one, one, one quick question before you go to the next topic for expedited credentialing, what’s the fastest you can do something? Just, it’s a question, curiosity question we have because what’s happening is in, we are entering Georgia and Georgia is demanding a four to one ratio for collaboration.
Tk Desai (21:23) Agreement for NP to one. So we had to get more physicians there. And I just wonder how long it takes if it’s a clean application, how fast can you guys put them through?
Peter Bosworth (21:40) Yeah, if it’s a clean application… three business days.
Tk Desai (21:46) Okay. Thank you. That’s all I want to keep on going. So, I think Julie should be clean, Melissa, we should put her through as fast as possible because we are about to go live in Georgia. Yeah. So, yeah.
Melissa Holeczy (22:01) Perfect. Thank you, doctor.
Peter Bosworth (22:07) Okay. So in terms of orienting us now, so I think if you would be, you know, I think what makes sense probably is to do a growth agreement to bridge the gap between now and the end of July. And it sounds like 20 is a good figure to put in that. And so, what would happen basically is that I would put that into a proposal and send it over to you to take a look at and review. And then we could, if there are any questions, we’re happy to jump on another call and discuss that.
Brandon Gross (22:48) But.
Peter Bosworth (22:48) because we are over the total contract value, we do need to have the delta, like reconciled between now and the end of the quarter, which is three 31. So we can turn around an addendum including the number of files that you’ll need between now and the end of July ASAP, probably by today. And then perhaps we could reconnect sometime next week if you have any questions.
Melissa Holeczy (23:16) Yeah, Peter, I was just going to say Brandon, you should probably check with and just seeing our because I know I’ve been doing a lot of interviewing and with hiring and such. So it’s probably might be upwards of that. So we should probably connect before we finalize that amount.
Brandon Gross (23:32) Melissa, do you think we could get some like a better estimate like end of day today or something early next week, yeah?
Melissa Holeczy (23:41) I may reach out to Dorothy and Maggie now. Okay?
Brandon Gross (23:44) Let’s just assume if you guys hold for now and we’ll confirm the number either later today or Monday, if we don’t hear anything.
Peter Bosworth (23:52) Okay.
Brandon Gross (23:53) Yeah. I understood that we need to get the contract re upped or modified by end of the quarter. And can you remind me how payment… works right now? Are we paying? It looks like we’re paying it like on a monthly basis? Is that accurate? So.
Peter Bosworth (24:13) The payment terms are actually annual for the medallion contract, but then there are going to be sometimes pass through fees which are what you might be seeing. And those are when we have to verify board certifications and are charged. And we swipe a credit card and pass the fee on to our customers at no charge. Those are net 10 by the way.
Brandon Gross (24:31) Gotcha. Okay. Yeah, that makes sense. Okay. Are there other payment terms just in general, like for the contracts besides, because you’re saying it’s annual upfront that we’re paying for this service?
Peter Bosworth (24:47) That’s correct? Okay?
Brandon Gross (24:49) Are there like quarterly or monthly terms that we can do?
Peter Bosworth (24:53) The other terms are kind of contingent upon like longer commitments in terms of like multi year agreements, but certainly something that we can revisit when we start discussing the July renewal. Okay?
Brandon Gross (25:08) All right. For sure. Yeah, that sounds good. I don’t want to necessarily change anything, but it’s I mean, I would say 95 to 95 to 99 percent of all of our contracts are monthly or quarterly. It’s very rare that we approve an annual payment. So just, I think that we’re probably going to go in that direction for whatever contract we do next, just… as more of an fyi than anything else?
Peter Bosworth (25:36) Yeah, that’s helpful. And I think, it also probably makes sense to look at like a multi year agreement with the way the scheduled re, creds are coming in, but, yeah.
Brandon Gross (25:49) Yeah, I tend to agree with that. Especially. I mean, we’ve been with you guys since 20 22. I, you know, we’ve probably just been on annual contracts the whole time, but obviously we’ve got to establish relationships. So it probably makes sense to do some kind of a multi year agreement. Yeah.
Genevieve Seney (26:07) I was going to say also like transparently we were, we’ve also moved away from one year agreements just because of how peer enrollment and credentialing typically does work with timelines. So that also would be preferable to us as well.
Brandon Gross (26:21) Yeah, makes sense.
Peter Bosworth (26:24) Okay. So it sounds like we are aligned on like Melissa and team going back, finding some time to forecast volumes based on new hires.
Peter Bosworth (26:36) I can send over a summary of our conversation today and then the slide deck that we’re looking at. And… then would it make sense to, and you send me back those volumes? I’ll build a proposal and then would it make sense to schedule time for maybe Wednesday of next week as a placeholder to review that proposal together?
Brandon Gross (27:00) Yeah. Sounds good to me. Sounds good.
Peter Bosworth (27:03) How about?
Peter Bosworth (27:09) Noon pacific on Wednesday, the 20 fifth?
Brandon Gross (27:16) That works for me.
Peter Bosworth (27:17) Yeah, that’s fine. Great. Perfect. Well then I will send out a calendar invite for that time. And then I’ll also follow up with an email summary of our conversation in the slides… and then feel free to just reply with those volumes whenever you can. Melissa. Okay, perfect. Thank you so much. Thanks all. It was great meeting you. Take care. Have a.
Genevieve Seney (27:45) Good weekend. Bye.
Peter Bosworth (27:45) Take care. Bye.