Performant Healthcare Announces Confirmation of RAC Opportunity With New York State
Performant Healthcare (NASDAQ: PHLT) has secured the New York State Medicaid Recovery Audit Contract (RAC) following official approval from the State Comptroller. The multi-year contract, set to begin in Q2 2025, represents the largest Medicaid RAC opportunity nationwide.
As a provider of technology-enabled payment integrity services, Performant will collaborate with the NY State Office of Medicaid Inspector General to identify and recover improper Medicaid payments. The company expects to generate double-digit millions in revenue from this contract at steady-state, supporting their target of $150-160 million in annual revenue and pursuit of a 20% adjusted EBITDA margin.
This contract is part of Performant's strategy to capture share in the state Medicaid payment integrity industry, estimated at $300-500 million in annual revenue opportunity for cost-containment services.
Performant Healthcare (NASDAQ: PHLT) ha ottenuto il contratto di audit per il recupero della Medicaid dello Stato di New York (RAC) dopo l'approvazione ufficiale del Comptroller dello Stato. Il contratto pluriennale, che inizierà nel secondo trimestre del 2025, rappresenta la più grande opportunità di RAC Medicaid a livello nazionale.
Come fornitore di servizi di integrità dei pagamenti abilitati dalla tecnologia, Performant collaborerà con l'Ufficio del Generale dell'Inspectore della Medicaid dello Stato di New York per identificare e recuperare i pagamenti Medicaid impropri. L'azienda prevede di generare decine di milioni in entrate da questo contratto a regime costante, supportando il loro obiettivo di 150-160 milioni di dollari di entrate annuali e la ricerca di un margine EBITDA rettificato del 20%.
Questo contratto fa parte della strategia di Performant per acquisire quote nel settore dell'integrità dei pagamenti Medicaid statale, stimato in 300-500 milioni di dollari di opportunità di entrate annuali per servizi di contenimento dei costi.
Performant Healthcare (NASDAQ: PHLT) ha conseguido el contrato de auditoría de recuperación de Medicaid del Estado de Nueva York (RAC) tras la aprobación oficial del Contralor del Estado. El contrato a varios años, que comenzará en el segundo trimestre de 2025, representa la mayor oportunidad de RAC de Medicaid a nivel nacional.
Como proveedor de servicios de integridad de pagos habilitados por tecnología, Performant colaborará con la Oficina del Inspector General de Medicaid del Estado de Nueva York para identificar y recuperar pagos indebidos de Medicaid. La empresa espera generar decenas de millones en ingresos de este contrato en estado estable, apoyando su objetivo de 150-160 millones de dólares en ingresos anuales y la búsqueda de un margen EBITDA ajustado del 20%.
Este contrato es parte de la estrategia de Performant para capturar cuota en la industria de integridad de pagos de Medicaid estatal, estimada en 300-500 millones de dólares en oportunidades de ingresos anuales para servicios de contención de costos.
Performant Healthcare (NASDAQ: PHLT)는 주 정부 감사관의 공식 승인을 받은 후 뉴욕주 Medicaid 회수 감사 계약(RAC)을 확보했습니다. 2025년 2분기에 시작될 이 다년 계약은 전국에서 가장 큰 Medicaid RAC 기회를 나타냅니다.
기술 기반 결제 무결성 서비스 제공업체로서 Performant는 뉴욕주 Medicaid 감사관 사무소와 협력하여 부적절한 Medicaid 지불을 식별하고 회수할 것입니다. 이 회사는 이 계약을 통해 안정적인 상태에서 수천만 달러의 수익을 창출할 것으로 예상하며, 연간 1억 5천만에서 1억 6천만 달러의 수익 목표와 20% 조정 EBITDA 마진 추구를 지원합니다.
이 계약은 Performant의 주 Medicaid 결제 무결성 산업 점유율 확보 전략의 일환으로, 비용 절감 서비스에 대한 연간 수익 기회가 3억에서 5억 달러로 추정됩니다.
Performant Healthcare (NASDAQ: PHLT) a obtenu le contrat d'audit de récupération de Medicaid de l'État de New York (RAC) suite à l'approbation officielle du contrôleur de l'État. Ce contrat pluriannuel, qui commencera au deuxième trimestre 2025, représente la plus grande opportunité de RAC Medicaid à l'échelle nationale.
En tant que fournisseur de services d'intégrité des paiements habilités par la technologie, Performant collaborera avec le Bureau du Général de l'Inspecteur de Medicaid de l'État de New York pour identifier et récupérer les paiements Medicaid inappropriés. L'entreprise s'attend à générer des dizaines de millions de dollars de revenus grâce à ce contrat à l'état stable, soutenant son objectif de 150-160 millions de dollars de revenus annuels et la recherche d'une marge EBITDA ajustée de 20%.
Ce contrat fait partie de la stratégie de Performant pour capturer des parts dans l'industrie de l'intégrité des paiements Medicaid de l'État, estimée à 300-500 millions de dollars d'opportunités de revenus annuels pour des services de maîtrise des coûts.
Performant Healthcare (NASDAQ: PHLT) hat den Medicaid Recovery Audit Contract (RAC) des Bundesstaates New York nach offizieller Genehmigung durch den Staatscontroller gesichert. Der mehrjährige Vertrag, der im zweiten Quartal 2025 beginnen soll, stellt die größte Medicaid RAC-Möglichkeit im ganzen Land dar.
Als Anbieter von technologiegestützten Zahlungsintegritätsdiensten wird Performant mit dem Büro des Medicaid-Inspektors des Bundesstaates New York zusammenarbeiten, um unrechtmäßige Medicaid-Zahlungen zu identifizieren und zurückzufordern. Das Unternehmen erwartet, in einem stabilen Zustand zweistellige Millionenbeträge an Einnahmen aus diesem Vertrag zu generieren, was ihr Ziel von 150-160 Millionen Dollar Jahresumsatz und die Verfolgung einer 20% bereinigten EBITDA-Marge unterstützt.
Dieser Vertrag ist Teil der Strategie von Performant, Anteile im Bereich der Zahlungsintegrität von Medicaid im Bundesstaat zu gewinnen, der auf 300-500 Millionen Dollar an jährlichen Einnahmemöglichkeiten für Kostensenkungsdienste geschätzt wird.
- Secured largest Medicaid RAC contract in the US (New York State)
- Expected double-digit millions in revenue from NY contract
- Contract supports path to $150-160M annual revenue target
- Pursuing 20% adjusted EBITDA margin goal
- Enters $300-500M state Medicaid payment integrity market
- Contract implementation delayed until Q2 2025
Insights
Performant Healthcare's newly confirmed contract with New York State represents a material growth catalyst for this $205M market cap company. The multi-year Medicaid Recovery Audit Contract (RAC) - where Performant will identify and recover improper Medicaid payments - addresses the largest state Medicaid RAC opportunity in the country.
The financial significance is substantial. Management projects "double digit millions" in steady-state revenue from this single contract, which would represent a meaningful percentage of the company's overall $150-160M revenue target. For context, this contract alone could potentially represent 5-10% of their target revenue base when fully operational.
Two key strategic implications stand out. First, this positions Performant as a credible player in the state Medicaid payment integrity market, which management estimates as a $300-500M annual revenue opportunity industry-wide. Second, success with New York's sophisticated program could create a reference case for capturing additional state contracts.
The Q2 2025 implementation timeline means revenue impact won't be immediate, and RAC contracts typically have ramp-up periods before reaching full revenue potential. However, this contract represents a significant step toward management's stated 20% adjusted EBITDA margin goal through both revenue growth and operating leverage.
The confirmation removes uncertainty around the previously tentative award, providing increased visibility into Performant's growth trajectory in the healthcare payment integrity market, where the company leverages its technology and analytics capabilities to identify wasteful or improper payments for healthcare payers.
“This marks a significant milestone for Performant,” said Simeon Kohl, Chief Executive Officer. “New York represents the largest Medicaid RAC opportunity in the nation, and our selection as their trusted partner underscores our ability to successfully engage with the most complex and sophisticated state programs. The state market is an emerging opportunity for Performant, and this contract is a significant step in our efforts to capture a share of the state Medicaid payment integrity industry, which we estimate to be a
Performant, a leading provider of technology-enabled payment integrity, eligibility, and related analytics services will work with the
“The New York State RAC contract aligns perfectly with our broader growth and profitability objectives,” said Rohit Ramchandani, Chief Financial Officer. “At steady-state, we anticipate generating double digit millions in revenue from this contract. This will greatly support our growth target of achieving
“This achievement has been years in the making,” said Mr. Kohl. “We look forward to proving our capabilities in one of the most demanding Medicaid recovery states, further reinforcing our leadership in this emerging market.”
ABOUT PERFORMANT
Performant supports healthcare payers in identifying, preventing, and recovering waste and improper payments by leveraging advanced technology, analytics and proprietary data assets. Performant works with leading national and regional healthcare payers to provide eligibility-based, also known as coordination-of-benefits (COB) services, as well as claims-based services, which includes the audit and identification of improperly paid claims. Performant is a leading provider of these services in both government and commercial healthcare markets. Performant also provides advanced reporting capabilities, support services, customer care, and stakeholder training programs designed to mitigate future instances of improper payments.
To learn more about Performant, please visit https://www.performantcorp.com
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MEDIA CONTACT
Jon Bozzuto, Investor Relations
Performant Healthcare, Inc.
(925) 960-4988
investors@performantcorp.com
Source: Performant Healthcare, Inc.
FAQ
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