As home-based care providers struggle to gather quality and reliable data across their platforms, Signify Health (NYSE: SGFY) feels like it is positioned to keep growing because of the data-driven insights it does have.
These data points should not only help Signify grow, but will improve outcomes for its patients, Steve Senneff, Signify’s president and CFO, said this week at the William Blair 42nd Annual Growth Stock Conference.
“At the core, we’re a data company,” Senneff said. “We take that data and drive insights and drive outcomes. The more that we do that, the stronger we can be and the more we can learn so we can put that information back into our algorithms to drive better outcomes.”
The Dallas-based Signify is a tech-enabled, value-based care platform that partners with both health plans and health systems to deliver a variety of care services to patients in their homes.
About 85% of Signify’s business comes from its home- and community-based services business, which is mostly done through Medicare Advantage (MA). And as the use of Medicare grows in the home health space, Senneff said he expects Signify’s investment in that payment model to increase.
“I think we all see the wave of growth in Medicare,” he said. “That’s something that we at Signify Health will participate in. As Medicare grows 8%, 9%, 10% a year, that’s just going to flow through our [profit and loss] P&L as well.”
Another advantage Signify has, Senneff said, is the average length of contract Signify has been able to capture.
“The other piece that I think is really unique are these long-term relationships we have with not just payers, but also providers,” Senneff said. “Our contracts are typically very long and have high satisfaction and we’re constantly being pushed to do more and more.”
Continuing the company’s value-based mission is a priority today and for the near future, Senneff said. He highlighted the company’s most recent acquisition of Caravan Health, an accountable care organization (ACO) manager, as a boon to its bottom line after posting six straight quarters over projected earnings since its IPO.
Moving forward, Signify is also ready to re-adjust to a world without an active pandemic. That transition includes moving away from a telehealth-heavy approach to home care.
“In the height of the pandemic, we were doing as much as almost 40% virtually,” Senneff said. “Now it’s back in the teens, and the reason is that health plans don’t want us to do it virtually because we’re going to capture probably 60% to 70% of what we would normally capture if we did it in the home. It’s nice to be able to offer that, but long term, it’s all about being in the home.”