Though Modivcare Inc. (Nasdaq: MODV) posted some wins final 12 months, the corporate remains to be attempting to take care of headwinds from contract losses.

“The foundation causes of those contract losses embrace a couple of MCO prospects not successful their state contracts, a state well being division's choice to maneuver to a full dealer mannequin – favoring a longtime competitor – and a buyer's choice to to diversify quantity away from us resulting from legacy points,” L. Heath Sampson, president and CEO of Modivcare, mentioned Friday in the course of the firm's fourth-quarter earnings name. “Nevertheless, it is very important word that these previous points have been addressed via our transformation, and I’m pleased with my staff for doing so.”

Denver-based Modivcare presents technology-based healthcare companies and non-emergency medical transportation (NEMT). The corporate's Modivcare Residence division consists of private care companies, distant affected person monitoring (RPM) and dietary meal supply.

Barbara Gutierrez, Modivcare's CFO, additionally addressed the influence that Medicaid rescheduling has had on the corporate.

“In the course of the fourth quarter, Medicaid reallocation lowered our Medicaid membership by roughly 450,000 members, bringing our Medicaid membership to 24.7 million members,” she mentioned on the decision. “Since realignment started final April, we now have seen an 8% discount in our Medicaid membership, which is in keeping with our unique purpose of 10% to fifteen%.”

Whereas coping with these headwinds, Modivcare has additionally made the house division considered one of its key strategic priorities. In private care, the corporate has set its sights on enhancing healthcare supplier efficiency via automation.

“Constructing on the centralization, standardization and know-how platforms in 2023, our ongoing transformation in private care is now centered on leveraging automation and digital instruments to enhance healthcare supplier effectivity and engagement,” mentioned Sampson. “The important thing right here is to free our frontline members. This can allow us to exceed the inherent development inside the market.”

Sampson famous that getting readability from the Facilities for Medicare & Medicaid Providers (CMS) on the 80/20 rule would additionally strengthen these tailwinds.

On the RPM aspect, Modivcare is concentrated on increasing its product capabilities.

“This consists of selling member engagement via our modern care heart and digital entrance door companies and units,” Sampson mentioned. “The mixing of RPM and NEMT companies has exceeded our expectations. We’ve addressed the gaps in care and lowered prices for our prospects, which units us aside available in the market.”

Modivcare expects private care and RPM gross sales development to be 8% to 10% and 10% to 12%, respectively.

“Our distinctive aggressive benefits, coupled with our place within the rising home-based healthcare market, set us aside,” mentioned Sampson.

Total, Modivcare generated companies income of $702.8 million for the fourth quarter, up 7.5% in comparison with $653.9 million in the identical interval in 2022.

The corporate's 2023 annual income was $2.75 billion, up 10% from $2.5 billion in 2022. This was pushed by 10% development in NEMT, 7% development in private care companies and a development of 14% within the RPM phase.