After struggling some losses just lately, Modivcare Inc. (Nasdaq: MODV) is now beginning to submit some income.

The corporate achieved $33 million in annual contract worth within the second quarter and secured a serious state contract in early June, which has already begun to point out robust efficiency and outcomes, in response to CEO Heath Sampson.

Denver-based Modivcare supplies technology-enabled healthcare providers and provides non-emergency medical transportation (NEMT). The corporate’s Modivcare House division consists of private care, distant affected person monitoring (RPM) and dietary meal supply providers.

In different contract wins, Modivcare obtained extensions on the overwhelming majority of its state Medicaid contracts that had been up for renewal this yr, together with a verbal dedication to the corporate’s largest state contract in New Jersey. The extension runs by means of July 2025.

“We stay assured that we are able to prolong the rest of our state contracts and win extra contracts within the second half of the yr,” Sampson mentioned Thursday throughout Modivcare’s Q2 earnings name.

The corporate additionally obtained a major fee improve from New Jersey, which took impact on July 1, and continued to learn from fee will increase in New York, which took impact on March 1.

“July rate of interest hike in [New Jersey] for [personal care services] “This could lead to margins normalizing to the ~10% vary in 2H24, with RPM returning to progress ranges and margins within the mid-30s after revisions,” Stephens analyst Scott Fidel wrote in a notice.

The Medicaid overhaul is one other factor Modivcare might add to its checklist of medical insurance wins.

“We efficiently navigated the Medicaid overhaul and the ensuing will increase in healthcare spending and utilization, whereas fastidiously managing the related influence on our working capital,” Sampson mentioned.

In the course of the name, Modivcare additionally expressed confidence within the firm's capability to thrive following adjustments to the Client Directed Private Help Program (CDPAP) in New York.

“Whereas there’s ongoing data popping out of New York relating to the Client Directed Private Help Program, or CDPAP,” Sampson mentioned. “We’re nicely positioned with a diversified and wholesome e book of businesses and high-acuity waiver companies. Solely $3 to $5 million of PCS adjusted EBITDA comes from CDPAP. As well as, we’re positioned to learn from adjustments as a result of now we have the experience and scale to handle consumer-directed packages.”

In whole, Modivcare’s service income was $698.3 million for Q2 2024, down 0.1% from $699.1 million in the identical interval final yr. The corporate’s web loss in Q2 was $129 million.

This was primarily pushed by decrease revenues on the NEMT aspect of the enterprise, which was resulting from decrease common month-to-month members related to members misplaced to Medicaid reassessment and historic contract lapses.

For Q2, service income for the private care providers section was $186.6 million, up 3.5% year-over-year in comparison with $180.3 million in Q2 2023.

These enhancements had been pushed by natural hours progress and better compensation in key markets.