DocGo Expands into Chattanooga Region in Collaboration with Major Tennessee Healthcare System

Rhea-AI Summary

DocGo (Nasdaq: DCGO) announced its Ambulnz subsidiary has expanded its contract with a major Tennessee healthcare system to launch services in Chattanooga. The expansion focuses on providing advanced medical transportation services, including hospital discharges and transfers among skilled nursing, rehabilitation, and acute care facilities.

The Tennessee partnership currently supports approximately 17,000 annual trips, with projections to exceed 20,000 trips by 2025 and add 5,000 additional trips by 2026. The company has already demonstrated strong growth, increasing its Tennessee trip volume by over 25% in the past year. This expansion aims to improve healthcare coordination, reduce inefficiencies, enhance bed management, and optimize patient outcomes through seamless patient transport services.

Positive

• Secured contract expansion in Chattanooga market
• 25% increase in Tennessee trip volume over past year
• Projected growth from 17,000 to 20,000 annual trips by 2025
• Additional 5,000 trips expected by 2026

Negative

• None.

Insights

Healthcare Operations Analyst

The expansion into Chattanooga marks a significant operational milestone for DocGo, with several key revenue implications. The projected increase from 17,000 to 20,000 annual trips by 2025, plus 5,000 additional trips by 2026, represents a substantial revenue opportunity in the medical transportation sector.

The 25% year-over-year growth in Tennessee trips demonstrates strong market validation and suggests untapped demand in secondary markets. This expansion is particularly strategic as it leverages existing infrastructure and relationships, potentially leading to higher margins through operational economies of scale.

The partnership with a major Tennessee healthcare system carries significant implications beyond mere trip volumes. Such relationships typically involve long-term contracts with guaranteed minimum volumes, providing stable recurring revenue streams. The focus on high-acuity patient transport services generally commands premium pricing compared to standard medical transportation.

DocGo's proprietary technology platform plays a important role in this expansion, enabling efficient route optimization and resource allocation. This technological advantage could create barriers to entry for potential competitors while improving operational metrics such as vehicle utilization rates and response times.

The Chattanooga expansion represents a proven growth strategy: establishing a strong presence in one market (Nashville) before expanding to adjacent territories. This approach typically reduces market entry risks while leveraging existing relationships and operational knowledge. The focus on hospital discharges and inter-facility transfers addresses a critical need in healthcare systems' operational efficiency, potentially leading to additional contract opportunities within the region.

NEW YORK--(BUSINESS WIRE)-- DocGo Inc. (Nasdaq: DCGO) (“DocGo” or the “Company”), a leading provider of technology-enabled mobile health services, today announced that its Ambulnz subsidiary has extended its contract with a major Tennessee healthcare system to launch services in Chattanooga, TN. This expansion highlights the Company’s expertise in delivering reliable and efficient advanced medical transportation services for its partners.

Ambulnz by DocGo will provide vital services in the Chattanooga region, including transportation for hospital discharges and transfers among skilled nursing, rehabilitation and acute care facilities. The Tennessee partnership supports approximately 17,000 annual trips, with plans to exceed 20,000 trips per year in 2025. This expansion is projected to add 5,000 additional trips in the state by 2026. In the past year alone, the Company increased the number of trips in Tennessee over 25%, reflecting a growing demand for these services.

“Because of our collaboration in Nashville, we came to appreciate the need for advanced medical transportation for high-acuity patients in Chattanooga,” said Nina Mothershed, Associate Vice President of DocGo. “This launch is a testament to the efficiency our proprietary platform and quality of our dedicated clinical staff. In addition to reinforcing our commitment to deliver high-quality and reliable transportation services that meet the needs of our partners and their patients, it positions us for further growth in Tennessee.”

By helping to ensure seamless patient transport, the Company enables healthcare systems to improve coordination, reduce inefficiencies, improve bed management, and enhance patient outcomes. This expanded relationship exemplifies DocGo’s mission to provide proactive healthcare solutions, leveraging innovative technology and dedicated field staff to help optimize healthcare delivery.

About DocGo

DocGo is leading the proactive healthcare revolution with an innovative care delivery platform that includes mobile health services, remote patient monitoring and ambulance services. DocGo is helping to reshape the traditional four-wall healthcare system by providing high quality, highly accessible care to patients where and when they need it. DocGo’s proprietary technology and relationships with a dedicated field staff of certified health professionals elevate the quality of patient care and drive business efficiencies for facilities, hospital networks and health insurance providers. With Mobile Health, DocGo empowers the full promise and potential of telehealth by facilitating healthcare treatment, in tandem with a remote physician, in the comfort of a patient’s home or workplace. Together with DocGo’s integrated Ambulnz medical transport services, DocGo is bridging the gap between physical and virtual care. For more information, please visit www.docgo.com. To get an inside look on how the proactive healthcare revolution is helping transform healthcare by reducing costs, increasing efficiency and improving outcomes, visit www.proactivecarenow.com.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, the Company’s plans, strategies, outcomes, and prospects, both business and financial, including the Company’s provision of services and further growth in Tennessee. These statements are based on the beliefs and assumptions of the Company’s management. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, the Company cannot assure you that it will achieve or realize these plans, intentions, outcomes, results or expectations. Accordingly, you should not place undue reliance on such statements. All statements other than statements of historical fact are forward-looking. In some cases, these statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “might,” “will,” “should,” “could,” “can,” “would,” “design,” “potential,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or the negative of these terms or similar expressions. Forward-looking statements are inherently subject to substantial risks, uncertainties and assumptions, many of which are beyond the Company’s control, and which may cause the Company’s actual results or outcomes, or the timing of results or outcomes, to differ materially from those contained in the Company’s forward-looking statements, including, but not limited to the following: the Company’s ability to successfully implement its business strategy, including with respect to the provision of services in Tennessee; the Company’s reliance on and ability to maintain its contractual relationships with its healthcare provider partners and clients; the Company’s ability to compete effectively in a highly competitive industry; the Company’s ability to maintain existing contracts, including the contract to provide services in Tennessee; the Company’s reliance on government contracts; the Company’s ability to effectively manage its growth; the Company’s financial performance and future prospects; the Company’s ability to deliver on its business strategies or models, plans and goals; the Company’s ability to expand geographically; the Company’s competitive position and opportunities, including its ability to realize the benefits from its operating model; and other risk factors included in the Company’s filings with the Securities and Exchange Commission. The forward-looking statements made in this press release are based on events or circumstances as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as and to the extent required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250219799769/en/

Investors:

Mike Cole

DocGo

949-444-1341

mike.cole@docgo.com

ir@docgo.com

Source: DocGo Inc.

FAQ

What is DocGo's (DCGO) new expansion in Tennessee?

DocGo's Ambulnz subsidiary has expanded its contract with a major Tennessee healthcare system to launch medical transportation services in Chattanooga, TN.

How many annual trips does DCGO handle in Tennessee?

DocGo currently handles approximately 17,000 annual trips in Tennessee, with plans to exceed 20,000 trips by 2025 and add 5,000 additional trips by 2026.

What services will DCGO provide in Chattanooga?

DocGo will provide medical transportation services for hospital discharges and transfers among skilled nursing, rehabilitation, and acute care facilities.

What is the growth rate of DCGO's Tennessee operations?

DocGo increased its number of trips in Tennessee by over 25% in the past year.

How will the Chattanooga expansion benefit healthcare systems?

The expansion will help improve coordination, reduce inefficiencies, improve bed management, and enhance patient outcomes through seamless patient transport.