After experiencing some contract loss blows in the recent past, Modivcare Inc. (Nasdaq: MODV) has begun to log some tallies in the win column.

The company gained $33 million of annual contract value during its second quarter, and onboarded a significant state contract in early June. This contract has already started demonstrating strong performance and results, according to CEO Heath Sampson.

Denver-based Modivcare offers technology-enabled health care services and provides non-emergency medical transportation (NEMT). The company’s Modivcare Home division includes its personal care, remote patient monitoring (RPM) and nutritional meal delivery service offerings.

In other contract gains, Modivcare received extensions on the vast majority of its state Medicaid contracts that were up for renewal this year, including a verbal commitment from the company’s largest state contract in New Jersey. The extension is through July of 2025.

“We remain highly confident in our ability to extend the remainder of our state contracts and win additional contracts in the second half of the year,” Sampson said on Thursday during Modivcare’s Q2 earnings call.

The company also landed a meaningful rate increase from New Jersey, effective July 1, and continued to benefit from rate increases in New York that became effective on March 1.

“July rate hike in [New Jersey] for [personal care services] should translate into 2H24 margins normalizing towards the ~10% range with RPM getting back to growth, and mid-30% margins post redeterminations,” Stephens Analyst Scott Fidel wrote in a note. 

Medicaid redetermination is something else that Modivcare was able to add to its wins column.

“We have successfully navigated Medicaid redetermination, and the resulting increase in health care and utilization, diligently managing the corresponding impact on our working capital,” Sampson said.

During the call, Modivcare also expressed its confidence in its ability to thrive after the changes to New York’s Consumer Directed Personal Assistance Program (CDPAP).

“While there is ongoing information from New York, regarding the Consumer Directed Personal Assistance Program, or CDPAP,” Sampson said. “We are well-positioned with a diversified and healthy book of agency and high-acuity waiver business. Only $3 to $5 million of PCS adjusted EBITDA is derived from CDPAP. Additionally, we may benefit from changes, as we have the expertise and scale to manage consumer directed programs.”

In total, Modivcare’s service revenue checked in at $698.3 for Q2 2024, a 0.1% decrease, compared to $699.1 million during the same period last year. The company’s Q2 net loss was $129 million.

This was mostly driven by lower revenue on the NEMT side of the business. That was due to lower average monthly members connected to members lost from Medicaid redetermination and historical contract attrition.

For Q2, service revenue for the personal care services segment was $186.6 million. This is a 3.5% year-over-year increase compared to $180.3 million in Q2 2023.

Organic hours growth and reimbursement increases in key markets drove those improvements.