DocGo Secures Two-Year Transportation Contract Renewal with Major Tennessee Healthcare System

Rhea-AI Summary

DocGo (Nasdaq: DCGO) announced that its Ambulnz subsidiary has renewed a two-year transportation contract with a major Tennessee healthcare system, extending their six-year partnership. The agreement covers hospital discharge transportation and interfacility transfers, currently handling approximately 17,000 trips annually with plans to exceed 20,000 trips per year. The company reported a 25% increase in trips over the past year, demonstrating growing demand. Through this partnership, DocGo aims to improve healthcare coordination, reduce inefficiencies, and enhance patient outcomes by ensuring seamless patient transport.

Positive

• Secured two-year contract renewal with major healthcare system
• 25% year-over-year increase in trip volume
• Expected growth from 17,000 to 20,000+ annual trips
• Six-year track record of successful partnership

Negative

• None.

Insights

Financial Analyst

The renewal of this transportation contract with a major Tennessee healthcare system represents meaningful recurring revenue for DocGo. The 25% year-over-year growth in trip volume, from 17,000 to a projected 20,000+ annual trips, indicates strong organic growth within existing partnerships. While specific contract values weren't disclosed, medical transportation services typically generate $50-150 per trip, suggesting this contract could represent $1-3 million in annual revenue.

This renewal demonstrates DocGo's ability to retain and expand key customer relationships, which is important for maintaining predictable revenue streams. The six-year history with this healthcare system and expanding service volume suggests strong operational execution and customer satisfaction. For a company with a market cap around $417M, securing stable, growing contracts helps reduce revenue uncertainty and supports steady business expansion.

Healthcare Operations Analyst

The contract renewal highlights DocGo's strong positioning in the medical transportation sector, particularly in managing high-volume patient logistics for large healthcare systems. The projected increase to 20,000+ annual trips demonstrates the growing reliance on efficient patient transport services to optimize hospital operations and reduce bottlenecks in patient flow. This type of service is becoming increasingly critical as healthcare systems focus on maximizing bed utilization and reducing length of stay.

The six-year partnership history and volume growth suggest successful integration of DocGo's technology platform with the healthcare system's operations. This established relationship and proven track record should help DocGo secure similar contracts with other healthcare systems, particularly as hospitals increasingly outsource non-core services to specialized providers.

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 signed a two-year renewal of its contract with a major Tennessee healthcare system. This renewal, building on a six-year partnership, highlights the Company’s reliability in delivering efficient and high-quality medical transportation services.

Under the renewed agreement, Ambulnz by DocGo will continue providing critical services such as hospital discharge transportation and interfacility transfers. The partnership currently supports approximately 17,000 trips annually, with plans to exceed 20,000 trips per year during this renewal period. In the past year alone, the number of trips increased by over 25%, reflecting a growing demand for these services.

“Our continued collaboration with this health system demonstrates the value we bring in supporting patient flow and enhancing healthcare accessibility,” said Lee Bienstock, CEO of DocGo. “This contract renewal not only reinforces our commitment to delivering high-quality and reliable transportation services, but also positions us for further growth in Tennessee, where we are dedicated to meeting the evolving needs of healthcare systems and patients alike.”

By helping to ensure seamless patient transport, the Company enables healthcare systems to improve coordination, reduce inefficiencies, and enhance patient outcomes. This continued partnership exemplifies DocGo’s mission to provide proactive healthcare solutions, leveraging innovative technology and dedicated field staff to help its partners 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/20241210850221/en/

Media:

Tommy Meara

Moxie Strategies

718-309-3506

tommy@moxiestrategies.com



Investors:

Mike Cole

DocGo

949-444-1341

mike.cole@docgo.com

ir@docgo.com

Source: DocGo Inc.

FAQ

What is the duration of DocGo's (DCGO) renewed contract with the Tennessee healthcare system?

DocGo's renewed contract with the Tennessee healthcare system is for two years.

How many annual trips does DocGo (DCGO) currently handle for the Tennessee healthcare system?

DocGo currently handles approximately 17,000 trips annually and plans to exceed 20,000 trips per year during the renewal period.

What was the percentage increase in DocGo's (DCGO) trip volume over the past year?

DocGo's trip volume increased by over 25% in the past year.

What services will DocGo (DCGO) provide under the renewed contract?

Under the renewed contract, DocGo will provide hospital discharge transportation and interfacility transfer services.