DocGo Signs Extension and Begins Planned Transition of Asylum Seeker Contract with New York City HPD

Rhea-AI Summary

DocGo Inc. (DCGO) extends migrant services contract with NYC Department of Housing Preservation and Development, showcasing continued partnership and commitment to quality services. The extension runs through 2024, allowing DocGo to focus on growth initiatives and partnerships.

Insights

Healthcare Industry Analyst

The extension of DocGo's contract with the New York City Department of Housing Preservation and Development signifies a stable revenue stream for the company through the end of 2024. This is particularly important as it provides business continuity in a sector that is often subject to the volatility of government contracts. The assurance of ongoing work with NYC also allows DocGo to strategically allocate resources and focus on other growth initiatives, such as expanding programs with insurance partners and hospital systems. The diversification of services and client base is a positive indicator of the company's resilience and adaptability in the dynamic healthcare market.

However, investors should be mindful of the potential risks associated with the transition to a new service provider. The process may involve unforeseen costs or disruptions that could affect the company's financial performance. Moreover, the statement that the program is expected to 'moderate over the course of 2024' suggests that there might be a decrease in revenue from this contract in the long term, which could impact future earnings. It is important for stakeholders to monitor how DocGo manages this transition and whether it can compensate for any potential downturn with its growth initiatives.

Financial Analyst

The announcement by DocGo reflects a proactive approach to contract management and a strategic focus on growth. From a financial perspective, the extension of the contract provides a clear short-term revenue projection, which can be favorable for the company's stock valuation. Investors often look for such predictability in cash flows, especially in industries like mobile health services where demand can fluctuate based on external factors such as policy changes and economic conditions.

Furthermore, the emphasis on pursuing growth opportunities across key customer segments indicates a forward-thinking management team. The ability to reallocate corporate resources towards these initiatives could lead to improved margins and profitability if executed effectively. However, the true impact on the stock will depend on the company's ability to deliver on these growth promises without compromising the quality of current services. Shareholders should watch for the company's performance metrics and updates on the success of new partnerships and expansions in the coming quarters.

NEW YORK--(BUSINESS WIRE)-- DocGo Inc. (Nasdaq: DCGO) (“DocGo” or the “Company”), a leading provider of technology-enabled mobile health services, announced today the extension of its current migrant services contract with the New York City Department of Housing Preservation and Development (HPD). This extension is part of a planned transition that DocGo worked on in collaboration with NYC, demonstrating a continued partnership to ensure consistent and quality services for those in need.

Under the extension, DocGo will continue to provide contracted services to assist with the ongoing asylum seeker crisis in upstate New York as needed through the end of 2024 and will provide accelerated transition assistance to a new provider of services for sites in New York City concurrent with the expiration of the original term of its HPD contract in May.

DocGo will continue to provide its services to NYC through the extended term while prioritizing other growth initiatives across the Company’s portfolio, including expansion of its programs with insurance partners, hospital systems, and population health programs.

“We were pleased to step up and help New York City in its hour of need when other providers lacked the scale, resources, or rapid deployment expertise, and are confident in the quality and value we have delivered for this program,” said Lee Bienstock, CEO of DocGo. “We are equally pleased to work with our partners at NYC to execute a coordinated transition over the rest of the year – it is part of our overall plan, and we shared our expectation that this program would moderate over the course of 2024 on our last earnings call. This transition will enable us to dedicate more of our corporate resources and energy towards pursuing growth opportunities across our key customer segments, and we are excited about the possibilities for expansion with our current customers and the new partnerships we are signing.

We believe DocGo has played a vital role in New York City's public health programs over the past three years, both in times of crisis and in the everyday lives of New Yorkers, demonstrating resilience and service delivery efficiency while successfully navigating complex healthcare challenges. We are grateful for the trust placed in us by New York City and remain dedicated to improving health outcomes and committed to bringing access to care to all those who need it.”

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.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), regarding, among other things, the plans, strategies, outcomes, and prospects, both business and financial, of the Company, including the provision of services under its contract with HPD and the expansion of the Company’s programs with insurance partners and hospital systems and population health programs. 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, including, but not limited, to statements regarding the Company’s future actions, business strategies or models, plans, goals, future events, future revenues, future margins, current and future revenue guidance, future growth or performance, financing needs, business trends, results of operations, objectives and intentions with respect to future operations, services and products, and new and existing contracts or partnerships. 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 provision of services under its contract with HPD and its ability to expand its programs with insurance partners and hospital systems and population health programs; the Company’s ability to successfully implement our business strategy, including delivering value to shareholders via buybacks; 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 ability to deliver on its margin normalization initiative; the Company’s ability to maintain and roll out its backlog; the Company’s M&A activity; the Company’s ability to retain its workforce and management personnel and successfully manage leadership transitions; the Company’s ability to collect on customer receivables; the Company’s ability to maintain its cash position; expected impacts of macroeconomic factors, including inflationary pressures, general economic slowdown or a recession, rising interest rates, foreign exchange rate volatility, changes in monetary pressure, financial institution instability or the prospect of a shutdown of the U.S. federal government; expected impacts of geopolitical instability; the Company’s competitive position and opportunities, including its ability to realize the benefits from its operating model; the Company’s ability to improve gross margins; the Company’s ability to implement cost-containment measures; legislative and regulatory actions; the impact of legal proceedings and compliance risk; volatility of the Company’s stock price; the impact on the Company’s business and reputation in the event of information technology system failures, network disruptions, cyber incidents or losses or unauthorized access to, or release of, confidential information; and the ability of the Company to comply with laws and regulations regarding data privacy and protection and other risk factors included in the Company’s filings with the Securities and Exchange Commission.

Moreover, the Company operates in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results or outcomes could differ materially from those described in the forward-looking statements.

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. The Company’s forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240410963125/en/

Media:

DocGo

Michael Padovano

5W Public Relations

Docgo@5wpr.com

Pr@docgo.com

DocGo Investors:

Mike Cole

DocGo

949-444-1341

Mike.cole@docgo.com

Ir@docgo.com

Steve Halper

LifeSci Advisors

646-876-6455

shalper@lifesciadvisors.com

Ir@docgo.com

Source: DocGo Inc.

FAQ

What is the ticker symbol for DocGo Inc.?

The ticker symbol for DocGo Inc. is DCGO.

Who is the CEO of DocGo Inc.?

The CEO of DocGo Inc. is Lee Bienstock.

What was announced in the press release regarding DocGo Inc.?

The press release announced the extension of DocGo Inc.'s migrant services contract with the NYC Department of Housing Preservation and Development through 2024.

What are some growth initiatives mentioned in the press release for DocGo Inc.?

The press release highlighted that DocGo Inc. will focus on expanding its programs with insurance partners, hospital systems, and population health programs.