Modivcare Inc. (Nasdaq: MODV) believes it’s in a rare position to capitalize on growth opportunities moving forward.
There are many reasons why its president and CEO, L. Heath Sampson, believes that. One of those reasons is the social determinants of health work that the company is doing.
“We have 36 million members across the nation that are either in Medicaid or Medicare Advantage,” Sampson said during a presentation at the J.P. Morgan Healthcare Conference Wednesday. “Those 36 million are hard to get to and high-need, and really need our supportive care services. These supportive care services address the social determinants of health directly.”
The Denver-based Modivcare offers technology-enabled health care services and provides non-emergency medical transportation (NEMT). The company also has its Modivcare Home division, which includes personal care, remote patient monitoring and nutritional meal delivery services.
Sampson was named CEO of Modivcare in late 2022 after the company moved on from former CEO Dan Greenleaf in August.
Even though nearly 90% of health care occurs outside of the clinical space, 60% of health care spend is focused on medical care, according to Sampson.
“There’s that misbalance, and everyone knows,” he said. “How do we fix that imbalance [is the question] — which is why there’s a move of health care into the home.”
Through Modivcare’s vitals monitoring program, the company has been able to achieve a 58% reduction in admissions.
On the personal care side, the company’s fall prevention program has led to a 67% reduction in admissions, which, in turn, lowered emergency room visits and hospitalizations.
At Modivcare, transportation is a vital component of the company’s overall strategy.
“People need transportation to ensure they’re healthy, whether that’s for dialysis or mental health,” Sampson said. “The industry, as a whole, for dialysis, needs to get better at connecting those dots, and that’s a big part of our strategy. We can do that because we’re the largest by far.”
Modivcare’s personal care segment, in particular, has really accelerated over the past five years.
“We know that having somebody in the home to take care of everyday living is beneficial,” Sampson said. “We’re the largest in the Northeast. Density matters, concentration matters to ensure that you deliver. Right now, we’re in seven states. Our strategy is to have a national platform, we want a national platform across all our services.”
Ultimately, Modivcare’s strategy means viewing all of its segments as a unified care delivery model.
“If you think about all our services, they could be very different,” Sampson said. “They are really one Modivcare. It’s the same client, it’s the same member. [We’re] bringing these solutions together, fulfilling that mission of taking care of people and lowering the cost of health care.”
Looking ahead, Sampson believes that companies that are able to leverage size and a community-based approach will succeed.
“Companies now that have the scale and size to get the necessary synergies, but still have that community-based approach, are the ones that are winning,” he said. “There’s a few companies out there that are really changing this industry, and it’s good for this industry because we know the growth opportunity.”
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