DocGo Secures $4 Million Contract Extension to Continue Vital 911 Basic Life Support Services for Atlantic City, New Jersey

Rhea-AI Summary

DocGo's subsidiary, Exceptional Medical Transportation, has secured a $4 million contract extension to provide 911 basic life support services in Atlantic City, New Jersey. The one-year contract, starting August 1, 2024, includes two additional one-year renewal options, potentially extending the partnership through 2027. Exceptional Medical Transportation manages approximately 22,000 calls annually and transports around 14,000 patients each year, utilizing three ambulances 24/7 and an additional fourth during the summer rush.

Atlantic City, with 39,000 residents and 27 million annual visitors, relies heavily on this emergency service. The contract renewal reflects the city's trust in DocGo's services and commitment to providing high-quality care for the community.

Positive

• Secured $4 million contract extension for 911 basic life support services in Atlantic City
• Potential for contract extension through 2027 with additional renewal options
• Manages approximately 22,000 calls and transports 14,000 patients annually
• Demonstrates long-standing partnership and trust with Atlantic City

Negative

• None.

Insights

Financial Analyst

The $4 million contract extension for DocGo's subsidiary, Exceptional Medical Transportation, to provide 911 basic life support services in Atlantic City is a positive development for the company. Here's why:

• The contract's one-year duration with two additional one-year renewal options provides DocGo with a stable revenue stream and the potential for up to three years of guaranteed income.
• Managing approximately 22,000 calls and transporting around 14,000 patients annually demonstrates the significant scale of operations under this contract, which could contribute substantially to DocGo's overall revenue.
• The contract's extension indicates customer satisfaction and trust in DocGo's services, which could lead to positive word-of-mouth and potential new contracts in other cities.
• The additional fourth ambulance during the summer months shows DocGo's ability to scale operations to meet demand, potentially leading to increased revenue during peak tourist seasons.

However, investors should note that while this contract extension is positive, it represents a relatively small portion of DocGo's overall business. The company's $440.5 million revenue in 2022 means this $4 million contract accounts for less than 1% of annual revenue. Additionally, the contract's renewal options are not guaranteed and future extensions will likely depend on performance and budget considerations.

In conclusion, while this contract extension is a positive sign for DocGo's business stability and customer satisfaction, investors should consider it in the context of the company's overall financial performance and growth strategy.

Healthcare Services Analyst

DocGo's contract extension in Atlantic City highlights several key aspects of the company's position in the emergency medical services (EMS) sector:

• Market penetration: Securing the longest-running emergency services contract in Atlantic City's history demonstrates DocGo's ability to establish and maintain long-term partnerships in competitive markets.
• Operational efficiency: Managing 22,000 calls and 14,000 patient transports annually with just 3-4 ambulances suggests highly efficient operations, which could translate to better profit margins.
• Adaptability: The seasonal adjustment of adding a fourth ambulance during summer months shows DocGo's flexibility in meeting varying demand, a important factor in the dynamic healthcare services industry.
• Technology integration: As a "technology-enabled mobile health services" provider, DocGo likely leverages advanced systems for dispatch and patient care, potentially giving it a competitive edge in service quality and cost-effectiveness.

However, the EMS industry faces challenges, including:

• Staffing shortages: The nationwide EMT and paramedic shortage could impact DocGo's ability to expand or maintain service levels.
• Reimbursement pressures: Changes in healthcare policies or insurance reimbursement rates could affect the profitability of EMS contracts.
• Competitive landscape: The EMS sector is highly competitive, with both local and national players vying for contracts.

Investors should monitor DocGo's ability to replicate this success in other markets and its strategies for addressing industry-wide challenges to assess its long-term growth potential in the EMS sector.

Longest-Running Emergency Services Contract in Atlantic City History Renewed

NEW YORK--(BUSINESS WIRE)-- DocGo Inc. (Nasdaq: DCGO) (“DocGo” or the “Company”), a leading provider of technology-enabled mobile health services, today announced that Exceptional Medical Transportation, a DocGo subsidiary with a specialty in Critical Care Transportation, has been awarded a one-year, $4 million contract extension to provide 911 basic life support services to the City of Atlantic City. The contract, which started on August 1, 2024, includes two additional one-year renewal options, potentially extending the partnership through 2027.

"We are honored to extend our long-standing partnership with the city of Atlantic City and continue providing life-saving basic life support services to residents and visitors alike,” said John Wolfram, Operations Manager at Exceptional Medical Transportation by DocGo. “Our team’s dedication to saving lives through prompt and professional emergency response is at the heart of what we do. This contract renewal reflects the trust and confidence the city has in our services, and we remain committed to providing the highest standard of care for the community."

Exceptional Medical Transportation by DocGo manages approximately 22,000 calls annually and transports around 14,000 patients each year under this contract, for which the company assigns three ambulances on duty 24/7 throughout the year, with an additional fourth ambulance during the summer rush from May to September to accommodate the influx of tourists. Atlantic City, home to 39,000 residents, renowned casinos, and a destination for 27 million visitors annually, relies heavily on this emergency 911 service.

“The City of Atlantic City thrives on partnerships, and we look forward to continuing ours with Exceptional Medical Transportation, a working relationship which has been going strong for the last decade,” said City of Atlantic City Mayor Marty Small, Sr. “Exceptional is invaluable in safeguarding the health and safety of our residents and visitors, and has proven to be a great resource for Atlantic City and our First Responders.”

"At DocGo, our mission is to deliver compassionate, high-quality medical care and emergency services. We applaud Exceptional Medical Transportation and its dedicated staff who carry out this mission, securing another year of vital work with Atlantic City,” said Lee Bienstock, CEO of DocGo. “This contract renewal is a testament to the top-tier emergency services that Exceptional has provided the City of Atlantic City. We remain committed to advancing our services and ensuring the highest standard of care for the Atlantic City community and nationwide.”

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 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 plans, strategies, outcomes, and prospects, both business and financial, of the Company, including its contract to provide 911 services for Atlantic City and the expected benefits of such contract. 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 ability of the Company to realize the benefits of its contract to provide 911 services for Atlantic City; the Company’s ability to successfully implement its business strategy; 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; 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/20240802664025/en/

Media:

Josh Rosenfeld

Avoq

908-770-7204

Jrosenfeld@teamavoq.com



Investors:

Mike Cole

DocGo

949-444-1341

mike.cole@docgo.com

ir@docgo.com

Source: DocGo Inc.

FAQ

What is the value of DocGo's (DCGO) contract extension for Atlantic City?

DocGo (DCGO) secured a $4 million contract extension to provide 911 basic life support services in Atlantic City, New Jersey.

How long is the contract extension for DocGo (DCGO) in Atlantic City?

The contract extension for DocGo (DCGO) in Atlantic City is for one year, starting August 1, 2024, with two additional one-year renewal options potentially extending the partnership through 2027.

How many emergency calls does DocGo (DCGO) handle annually in Atlantic City?

DocGo's (DCGO) subsidiary, Exceptional Medical Transportation, manages approximately 22,000 calls annually in Atlantic City.

How many ambulances does DocGo (DCGO) operate in Atlantic City?

DocGo (DCGO) operates three ambulances 24/7 throughout the year in Atlantic City, with an additional fourth ambulance during the summer rush from May to September.