PRSC
#Good morning.
Sure.
Just to remind everybody, our focus at LogistiCare is helping particularly frail populations, so aged, blind and disabled, those in poverty, and those going to dialysis or some sort of rehabilitation.
And the populations that we serve and where they're going, we think the service is largely preventative in nature and has pretty good preventative benefits.
So, we're focusing every resource right now, and a lot of it has to do with this member experience initiative, on being the most cost-effective service for them, which I think really resonates with the people that we've met with in Washington and at the Governor level.
So, along those lines, we're increasing our research and regulatory resources to prove out that preventative nature of the service.
On the replacement bill itself, obviously there are a lot of different iterations that have been discussed.
What is currently out there in the replacement bill, to a high level, there are no Medicaid benefit changes related to NET, which, again, this is largely a reconciliation process, so they can't make those changes at the moment.
It is possible they could come in future bills, but as of right now, there are no Medicaid benefit changes.
They are moving towards a federal contribution per category of member in Medicaid, adjusted for inflation in Medicaid.
So that actually goes through the end of 2019, and then in 2020 the member contribution is capped.
But again, there are no benefit changes on NET after 2020.
So, in general, we don't see too many things actually affecting us in the current legislation as it's drafted through 2020.
Sure.
So, we actually launched our pilots with Lyft in the second half of last year.
We're now active in 18 states, and it's growing quickly every week.
I would still say the overall volume is fairly minimal compared to our overall scale.
In terms of our Provado mobile health pilot, that is in two states.
And I think we're approaching the utilization of these services cautiously because we've received different viewpoints on the rollout of these services from both individuals and from our clients at the state and MCO level.
I'd say there's a lot of interest, but I think people are very cautious as well.
So, we're looking at ---+ we're actually undergoing a project right now, and have been for a little bit now, looking at each market and really looking at the population, how it breaks down, who the client is, what are the restrictions in the contract.
What are the costs of implementing the network.
What are the costs of recruiting drivers, really compiling a detailed business plan and model around that.
So, it takes some time because each market is different.
But I think over the next few months, we will have a greater view of the penetration.
In terms of specific experiences we've seen so far, we've seen some nice benefits on the service side and on the cost side from the ride sharing.
But again, this is in limited markets and limited usage, and so, we wouldn't want to make any ---+ set out any grand expectations on what this could be in a couple years.
But it would certainly be a key part of our transportation network strategy.
Yes.
That has not come up.
Actually, I'm sorry, we do have subcontracting in some of the areas that we do work in.
And actually, we have had some discussions about subcontracting in some other areas that we are not in.
But in terms of ---+ those discussions aren't formalized, so I wouldn't see it as a huge opportunity at the minute.
And plus with the ---+ there still are five participants in each, at each stage, so there's some opportunity but I don't think we can give too much clarity into that, the potential opportunity there.
I think we're still waiting to sort of get the framework and how that's going to be laid out, so we're barely into the process at this point.
Well, you may have noticed service expense as a percentage was a little bit lower.
<UNK>, anything else.
Yes.
There was a ---+ operationally, it was a good quarter, but again, it was definitely higher than we were expecting.
And one of the items impacting that was the accrual, or the reversal of accrual, for a long-term incentive plan that we have at the LogistiCare segment, which is based on multi-year performance.
So, a couple of things happened.
One, our former CEO did leave that segment, so some of his long-term awards were reversed.
And given our outlook for 2017, again, resulting from the loss of the New York City contract, our 2017 projections did come down in the valuation model for that long-term award.
So, on the whole, we ended up expensing about $4 million less in the quarter than we were expecting to when we last spoke.
Yes.
<UNK> actually did in his prepared comments.
It was a low- to mid-single digits.
Yes, we're still very diligent on corporate costs, and we're trying to take out another couple million dollars of cash costs in 2017.
So, Virginia is mid-year, Philly is new year, and sorry, what was the third one.
Georgia is in the fall.
So, aggregate across those three, it's approximately $150 million to $175 million in annual revenue.
We recently won some portions of Arkansas.
In terms of other new, there are a lot of smaller MCO contracts that we're bidding on.
Go ahead, <UNK>.
I would say, looking at both state contract opportunities and MCO contract opportunities that we're looking at and bidding on right now, it's approximately represents $75 million to $100 million in annual revenue.
I didn't have anything else to add, so thank you very much, everyone, for joining.
And, as usual, please feel free to reach out to us at any time with any questions or comments.
Thank you.
Bye.
