When Dan Greenleaf took the helm of Modivcare Inc. (Nasdaq: MODV) in 2019, he saw the opportunity to transform the organization into an all-around social determinants of health company. Modivcare has been working toward this goal ever since.
“That really was the catalyst for a lot of the decisions we made going forward,” Greenleaf, president and CEO of Modivcare, said Tuesday during a presentation at the 40th annual J.P. Morgan Healthcare Conference.
Based in Denver, Modivcare offers technology-enabled health care services and provides non-emergency medical transportation (NEMT), personal care and nutritional meal delivery services.
The results of Modivcare’s efforts to revamp can be seen in the company’s latest financial figures, according to Greenleaf.
The company reported $493 million in net revenue during the third quarter of 2021, a nearly 54% increase compared to the $320.6 million it brought in over the same period the prior year.
Additionally, Modivcare has seen the success of its various service offerings while rolling out new service lines.
“Our personal care business is now No. 2 in the country, and our remote monitoring is No. 2,” Greenleaf said. “We have also launched a nutritional meal delivery offering. We’ve partnered with a national organization on that front. There’s a significant unmet need in that area and a highly fragmented market.”
The company’s personal care business operates in seven states, serving roughly 20,000 members and providing 30 million hours of care annually.
Coming to the conclusion that a sole focus on clinical interventions was not enough is one of the reasons Modivcare has really leaned into becoming a one-stop-shop for social determinants of health.
“Our members, our states, our payers and our case managers want a one-stop-shop,” Greenleaf said. “We are truly the first company to do this. We are in an extremely unique position, in part, because about 85% of our transportation business has a capitated component. We’ve been in a risk relationship for a long time and are very well positioned to rapidly move towards a value-based care offering.”
Greenleaf also believes that Modivcare’s strong investment into technology will be a key component in accelerating the company’s growth moving forward.
“When I got here, I felt like the real Achilles’ heel of this entity was its technology,” he said. “The company hadn’t modernized or automated. We spent the better part of two years solving for that.”
Modivcare also recently announced that it would be reorganized to align its home-based care services under a new business division, “Modivcare Home.” The new division places the company’s personal care, remote patient monitoring and nutritional meal delivery service offerings under one umbrella.
“We have always felt like this was the direction we were going to go — aligning Modivcare Home with our personal care business,” Greenleaf said. “[This is a] massive market – $55 billion growing into $100 billion. The remote monitoring business is a roughly $9 billion market growing at 10%, but it’s about 13% penetrated.”
Modivcare’s realignment was, in part, a response to the company’s case managers and members.
“We needed to start providing a one-stop solution for our case managers, and we’ve done that now through Modivcare Home,” Greenleaf said. “I also go back to our members. They want to deal with one company. Our case managers want to deal with one company and, fortunately, we are extremely well-positioned.”
With the reorganization, executive Jason Anderson has been promoted to lead Modivcare Home. Anderson joined Modivcare in September 2021 through its $315 million acquisition of VRI.
Greenleaf also has his eye on the Medicare Advantage (MA) opportunity, calling it a “natural segue” for the business.
Overall, Greenleaf estimates that Modivcare can drive about $100 million in savings for partners.
“At the end of the day, there is a lot of waste in this business – and we’re addressing it,” he said. “We feel very strongly about the opportunity and what we’ve been able to do.”
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