Claritev Corporation (CTEV) Earnings Call Transcript & Summary

Okay. Good morning. I'm Luke Montgomery, I'm Senior Vice President of Finance and Investor Relations here at MultiPlan. Can you guys hear me now? Great. All right. Okay. So first off, I want to thank you all for coming to the first ever MultiPlan Analyst and Investor Day. This day has been a long time coming. And this is the exact right moment for us to be speaking to all of you because so much has changed for the company in just the last couple of months. So we just have a ton to talk to you about today and we couldn't be more excited to share we have planned for you this morning. So my lawyers tell us that I have to read this slide to you, but if I did that, we'd be here all morning. So I'm going to give you the cliff note version. Before we get started, just a quick reminder that during the presentations today, we will make forward-looking statements as outlined on screen, and actual results may differ from those stated or implied by forward-looking statements due to a number of risks associated with our business. These factors are included in our annual report on Form 10-K and other filings with the SEC. Any such forward-looking statements are based on information available as of today, and as such, there can be no assurance that future developments affecting our business will be those that we have anticipated. While we may elect to update such forward-looking statements at some point in the future, we have no obligation to do so. I'd also like to remind you that a copy of today's presentation can be found on the Investor Relations portion of our website. Okay. So before I hand it off to our presenters, I want to take you through a quick tour of our agenda. Our CEO, Dale White, is going to set the stage with an overview of where we've been, where we are today and why we're so excited about where we're headed. Next, our CFO, Jim Head, is going to review our core business with you. It's going to be a bit of MultiPlan 101. And discuss the levers we're pulling to enhance that business. After that, we have Michael Kim, our Chief Information Officer; and Sean Crandell, who heads up our health care economics team. They're going to talk to you about the immense power and the untapped potential of our platform. After Sean, we're going to pivot to our growth strategy. Dale is going to give you an overview of the strategy and the key initiatives we're working on there. Andrea Rowe, who heads up our product development effort, will pick up where Dale left off and provide some details about the new products that underpin our growth plan. We're going to then take a short Q&A session followed by a quick break. When we come back from the break, we're going to pick up where we left off with the growth plan. We're very pleased that Stephen Sofoul, who was the CEO of BST will be the first to talk to you about our exciting new data and decision science service line and why our firms decided to combine. Then we'll conduct our voice of the customer panel featuring the most -- the senior most members of our sales team. And Jim is going to finish off with a discussion of our financials and our 5-year plan for unlocking the franchise value of this company. At the end, we'll also leave some time for another Q&A session with our speakers. So without further delay, I'd like to invite our CEO, Dale White, to kick things off.

Good morning, everyone. Thanks again for joining us this morning. And as Luke mentioned, I'm Dale White. And I've been with the company for nearly 20 years and serving mostly as the company's Chief Revenue Officer and then becoming the President and COO, and I took over as CEO just over a year ago in early 2022. I'll join Luke in expressing how very excited we are to speak with you this morning. Really, it's a timely moment as Luke said, to be connecting with all of you. There have been some fantastic developments just in the last couple of months. And this is the first opportunity that we've had to discuss some of them with you. More than that, and this is important, more than that, we are pivoting and pivoting quickly. We worked hard in the second half of last year to reexamine and reformulate our strategy, and now we're hard at work at executing on it. So we are thrilled to have the opportunity to speak with all of you about that and to lay out our vision on where MultiPlan is headed in the next few years. So before we get started, let me give you a bit of background to set the stage. As I mentioned, I've been with the company for 20 years. And I've seen pretty much everything in that time. The last few years have been really action-packed to say the least. We went public after nearly 4 decades as a private company. We endured the pandemic. We implemented NSA that No Surprises Act, the most -- likely the most sweeping health care legislation in some time. And we experienced a tumultuous 2022 characterized by heightened volatility in health care utilization -- but that's all behind us now and we're here today to talk about the future of the company. We're here today to talk about the future of MultiPlan. So what do we hope to accomplish here today? First, we want to give you a deeper insight into our business and the power of our platform. Second, we are also going to map out our growth plan for you. And as part of that, we want to talk to you about our pipeline of exciting new products. You'll have a chance to hear for the first time, as Luke said, about our acquisition of Benefit Science Technologies, which we believe is an absolute game changer for this company. It's a game changer. We are going to give you a sense of how we expect MultiPlan to look in a few years. And most importantly, we want to convey our confidence that we are on a transformative path. Before we dive into the body of the presentation, I would like to highlight 3 overarching themes for today. First, our platform provides enormous value to the marketplace. And because of that, we have an enduring opportunity to grow our business, which, as you know, delivers significant medical cost savings to payers and plan sponsors. We are an independent, trusted and deeply embedded in the health care ecosystem. We have invested heavily in our platform. It is highly differentiated, and it gives us sustainable competitive advantage and are right to win with our customers. We are on a path of transformation. You have watched us pivot since late 2022 to develop a plan to transform and grow our business. We are stabilizing our core. We're investing in the business to capture those tangible opportunities. Our plan already has real momentum, and we are confident that we can execute quite frankly, because we've been at this for a very long time. We know we have to prove it. We know we have to deliver the results, and we're on track to do just that. Just watch us. We have a plan to unlock the value of our franchise, and we expect to look like a very different company within 5 years. We have a massive opportunity to unleash the value of our platform through a host of new products and our data. We are broadening our market reach, and as a result, expect our revenue to look more diversified by product, by channel and by customer all ultimately accelerating our growth. We will be smart with our capital and deleveraging. And if we execute on all this, I am confident we should be able to provide meaningful upside to our shareholders. Look, you know I've been here, as I've said a few times for 20 years. We've really built something very, very, very special. Since our founding, we have focused on affordability, efficiency and fairness in the U.S. health care system. Our scale is vast. We are the major player, the major player in our space. And here are some figures to support that. We have 700 payer relationships. Most of them are very long, very trusted. In some cases, 25 year -- more than 25 years, particularly with the larger customer and it's all built on performance and results. Our end users span well over 100,000 plan sponsors, representing 60 million consumers. We have the leading independent provider network with 1.3 million providers and a footprint in all 50 states. And we process huge volumes of claims and data. We processed 546 million claims. We see 546 million claims every year. We see $555 billion in charges. Enormous volumes and data, and we generate $22 billion in identified potential savings for our customers. Our platform sits between 4 important constituencies: payers, providers, employers and their plan sponsors and plan members. We're uniquely positioned as an independent player within this ecosystem. We provide an invaluable service with reimbursement solutions that are systemic, fair and efficient to all parties involved in that process. Our scale and our straight-through processing capabilities are unmatched, meaning we process claims the right way, the right way the first time, the right way the first time with less rework and less churn and our $22 billion of identified potential savings is industry-leading. We have widely accepted solutions in the marketplace. We are the gold standard in the market for a variety of reasons. Our proprietary network, which, by definition, is different from our customers' networks. Our financial negotiation platform includes over 350 professionals who help adjudicate a fair reimbursement. Our NSA compliance services are truly best-in-class. Our Data iSight pricing solution is industry-leading. And we have the ability to bundle and customize solutions and use all of our tools. Let me just pause there for a second because this is a very important point. How do we bundle and customize? You've heard me say several times that we have 3 service lines. Inside those 3 core service lines, we have 23 different products. And with our growth plan that I'll describe later, we'll add a fourth service line data and decision sciences and 13 more products. I can't overstate the ability that this gives us to bundle products and create customized solutions for our clients. To summarize, the breadth and depth of what we do goes well beyond what our competitors do and is critical to providing the flexibility that our customers desire which each pursue uniquely -- each pursue unique approaches to cost management and payment accuracy. Our position as an industry leader is no accident. It's been part of our deliberate strategy since our founding in 1980. We started out as a hospital PPO in New York City and we did 4 things really well along the way. We rolled up a series of PPOs to create the leading independent provider network. We invested over $500 million to create a prepayment position in the IT environment of our customers. That is an incredibly important real estate to us, an incredibly important real estate to the payer. And you'll hear about that later when Michael Kim, our CIO, will discuss this, this morning. Over time, we snap products and services onto our chassis to enhance our market position. And until recently, we managed our business primarily for high margin and current cash flow. Stating the obvious, it worked. We had 4 separate private equity transactions, all of which created a lot of value for our investors. We grew from just under $200 million at the time of the first transaction in 2006 to $1.1 billion in 2022. But what -- what got us here is not the strategy that's going to take us to the next level. As I mentioned, we are pivoting, so let's talk about what that means. When I took over as CEO in early 2022, we were at a crossroads. In the aftermath of COVID, we were dealing with several big issues. NSA, which was causing upheaval in the industry, prospective renewal of our larger customer contracts, unusual volatility in health care utilization and a successful but overly narrow product suite, which among other issues, has led to concentration in our business and a flattening growth. We needed to develop a game plan to -- for the next chapter of the company. And as I mentioned, we conducted a strategic review at the end of 2022 and formulated a growth plan. We are now in execution mode. Our checklist of actions this year speaks for themselves. We feel like the ingredients are in place for success, and now we have to execute. Let me tell you why I'm confident we're going to do exactly that. First, we are facing high demand for cost management services from our customers. Demand hasn't -- isn't the problem. Demand has -- and it's never been the problem. Demand is always there. Health care remains complex, fragmented, opaque and very expensive. And our customers need to continuously evolve to meet the challenges posed by those dynamics, and they need our help to do it. Additionally, we know our customers want those services from us. We have a right to win because we are already embedded in our customers' environments, and we have earned their trust. You'll hear more about how that looks throughout the day. And we are the independent player with the greatest scale amongst our competitors. We have acquired a massive data asset that can be harnessed and flexible, collaborative solutions that support our customers' strategies. So the opportunity is there. All we need to do is execute and deliver. Our growth plan is our roadmap for how we're going to do exactly that as you are going to hear again throughout the presentations today. Let me tell you a little bit about where we are headed. As I mentioned, we are on a transformative path. And what you see here are the pillars of our transformation strategy. First, as you would expect, we are going to play to our strengths, our unrivaled position with the customers and our unique platform. Those are the factors of our historical success, but we are here to tell you that there is an immense amount of untapped opportunity in both of those assets. So much of what we are focused on right now is the unleashing of that enormous potential of what is already within our walls. Second, we are investing in new products and product extensions that are going to enhance our core business. Third, we are going to leverage our new data and decision science service line as well as our new B2B payment service through our partnership with ECHO Health across all of our solutions and markets. Additionally, our new data and decision science service line is going to expand our TAM and accelerate our penetration of larger, faster-growing markets like Medicare Advantage in-network and managed Medicaid. And finally, as you heard Jim and me say several times, we are going to use our capital wisely and prioritize debt paydown over the next few years. So what's on the horizon for MultiPlan? We believe that within 5 years' time, we will be a vastly different company in terms of complexion, growth and capital structure. We expect to have a broader set of solutions that will expand our reach across the health care ecosystem. We will be less reliant on out of network and have a revenue profile that is more diversified by product, by customer and by channel. We will be on an accelerated, sustainable growth trajectory. We will have lower risk and enhanced earnings predictability. And we will have a balance sheet that is better capitalized. All of this, we believe, will generate strong returns for you, our investors, which ultimately is what this day is all about. So before I pass it off, I just wanted to give you a preview of who is with us today. These are the folks, and I couldn't be prouder of this group. They have built the business alongside with me. And I know they are very excited to tell you what they're up to, why they are here and how enthusiastic they are about the course we have set. So with that, I'm going to pass it off to Jim our CFO, who is going to set the stage for the remainder of the day with an overview of our core business. Jim, I'll hand it off to you.

Okay. Good mic's working. Okay. Thanks, Dale. Good morning, everyone. It's great to see some familiar faces here this morning. My name is Jim Head. I'm the CFO of the organization. I joined about 18 months ago after a long career in investment banking. So I'll -- call me a reformed banker, now an operator. But I've known MultiPlan since 2005. They were actually a client of mine in the first transaction with Carlyle back in 2005. So I've known this company for a long time. I've admired it from the outside in, and I liked it so much, I joined the company. I'm here today this morning to talk about our core business. And I recognize that this is pretty hard to understand from the outside in. It's complex, and there's not a lot of businesses like us. But I'll give a bit of a primer and hopefully, you're going to have a deeper understanding of how we do it and why we're so valuable to the system. But before I jump in, I wanted to say a few key things that I want you to take away. First of all, we are very deeply embedded in the commercial health ecosystem. We have a unique position that's been built over 40 years. It's really hard to replicate and we put an enormous amount of capital to develop this position. Dale talked about that real estate, enormous amount of capital we put against it. We serve a vast group of self-insured plan sponsors over 100,000, and that makes us very sticky in the marketplace as they are the ultimate decision maker in the market for benefit services. Second, we have one of the broadest suites of products available, and that flexibly serves employers and payers of all types. There is no one size fits all. I'll say that a couple of times. There's no one size fits all in this market. We need to have a broad offering that can be flexible and provide choice to the entire market. And we do that with the independent gold standard of provider acceptance. We do it with scale, and we deal with high levels of operational excellence. And third and most importantly, we do think there's growth in our core business. We do think there's growth. We're going to support this growth by continuing to invest. We're going to support this growth by evolving our business and being nimble. And one of our goals today is to prove to you that if we execute, we've got the opportunity to continue growing this business and build upon it. Okay. Let's talk about our industry. As Dale mentioned, we exist because health care is complex and expensive, and we're an important part of the solution. The United States spends $3.8 trillion on health care. That's going to go to about $7.2 according CMS -- $7.2 billion by 2031, according to CMS. And there's a ton of in efficiency. So there's $1.2 billion of administrative costs and waste and abuse. That's our sweet spot. We're here to help solve that problem. It's a very complex industry and the trends are not going in the right direction. Medical inflation, increasing complexity in provider billing, lack of pricing transparency and all across the system, misaligned incentives. So against that backdrop, we help pay our customers, manage the cost of care and improve their competitiveness. Just to baseline in the markets we serve, we focus on both commercial and government health markets. Historically, we've been focused on the commercial health plan market. It's approximately 180 million covered lives over half the U.S. population. It's served by national ASO players, national carriers, regional payers, TPAs and more recently, alternative pricing companies. Historically, our business has been focused on the out-of-network space, that's about 85% of our revenues. But we've been steadily expanding our footprint into the government space. Medicare Advantage and Medicaid, as you know, are quite sizable and actually growing faster. We have more than a leg up in Medicare Advantage given our product portfolio, so that's beginning to emerge as an important category for us. And Medicaid is more of a targeted area, which we think we can reach with some of our new products. Throughout today's presentations, we're going to reinforce this theme of expanding in the government markets from our position as a leading partner to the commercial health industry. We're simply evolving our business model to follow our clients into the areas where they're growing fastest. Let's talk about our TAM, our total addressable market. To give you a sense of the opportunity in front of us, we estimate our core business is currently serving a roughly $13 billion to $14 billion of total addressable market and that's growing at roughly mid-single digits. About $6 billion, so that's the 2 provider networks out of network cost management, $6 billion is in our out-of-network space, and we have a high market share. The remainder of the TAM is in Payment Integrity, where we have a low share given our relatively small business. So we've got some opportunity there. But there's clearly more addressable market for us and available to us. We just needed more products to expand our opportunity. So with BST and with our B2B Echo Health partnership, we're going to be well-positioned to address markets with an additional TAM of $18 billion. And these markets include payer risk analytics through our BST capabilities, network transparency and analytics, which with BST, we've created the plan optics platform and health care payments through our new Echo Health partnership. In summary, our solutions lead us to a much larger market opportunity. Our competitive advantages, Dale spoke to this earlier, they're vast. We're really a unique company that has distinctive advantages in the market. And it's one of the reasons why I joined the organization. I felt there was an opportunity for this leadership team that you're all going to meet today to unlock the value given our competitive advantages. So we're excited about that. What you see listed on this slide is the range of the assets and capabilities we've accumulated that we believe are difficult, if not impossible, to replicate. And that's a function of our evolutionary path, the intellectual capital that we've amassed over the years, the scale we've achieved, the vast amount of data that we've accumulated and our maniacal focus on customer service and operational excellence. Add to that an entrepreneurial management team and culture, our ability to dynamically pivot reconfigure resources and deliver new value to our market. That's our real strength of the organization, and you've seen that over the last couple of quarters. With our growth plan, which Dale is going to review in a bit, I'm confident we can use the advantages to grow the business. And these advantages translate into our strategy. The heart of our strategy is taking our unique platform and data assets and making investments to unlock that value. Historically, we are focused on consolidating our position in the out-of-network space and expanding our margins. That's historically. We also excelled at increasing the savings performance of our solutions, constantly optimizing with our customers to drive more value, create more savings. But what you've heard from us over the last year is we need to make investments to expand and enhance our core offerings and create new growth opportunities. In a moment, you're going to hear from Michael Kim, our Chief Information Officer, Sean Crandell, our Head of Health care economics, who are going to talk about the power of our platform and the opportunity we have to leverage the assets. Okay. Let's talk about our service lines. Today, we report revenue in 3 service lines, our network business, our analytics business and payment and revenue integrity. Network-based services is about 23% of our revenue, and this includes a range of network solutions and it's the heritage of our business. For instance, in 2010, the network asset was about 80% of our revenues. We serve the national payers with our complementary network. We serve TPAs and regional carriers with our primary network called PHCS. We serve the property, casualty and workers' comp market. And we also play in the government space, where we build Medicare and Medicaid networks for clients. Next is our Analytics-Based Services. That's the largest service line with 66% of our revenues. That segment houses a broad range of analytics solutions, including reference-based pricing services like Data iSight, our NSA services, negotiation services, we call that financial negotiation and value-driven health plans, which is our HST platform. Last, our Payment & Revenue Integrity Services is the smallest component at 11% of our '22 revenues, and that includes our clinical audit service and Discovery Health portfolio of coordination of benefits, subrogation premium restoration services. All 3 of these service lines have unique competitors, okay? We list that in our 10-K. We highlight the competitors in our 10-K. But it's important to note that there's no independent provider that plays in all 3 of these segments, none. Also, we took a -- we'll talk later about how we differentiate from our competitors and the customer section or the customer discussion after the break. Important to note, when not included in these figures because this is '22, is our BST acquisition, which is our new data and decision science service line or B2b -- the impact of B2B payments. So from a financial reporting perspective, we're going to fold those 2 components into our analytics services for the time being. Over time, we'll assess as they scale up whether we expand our financial reporting at a fourth segment. Internally, and you'll hear this from Andrea, so you don't get confused, financial reporting 3 segments. But internally, we're going to operate BST as an independent segment. We think that's the best way to unleash the value and keep the entrepreneurial spirit that they have in the organization and serve all of our customers but also the other segments of the business. Okay. Let's break down our revenues a little bit further. So this is a little bit of new data and in an effort to provide transparency, the top charts show you how our revenue breaks down within each of our service lines. And at the bottom of the page, how our consolidated revenues break down by the characteristics of our business. So it's not digitally precise and it represents '22, not '23, but it helps frame the magnitude of our offerings with each -- in each segment. So let's talk about network. You'll see that over half of the segment is complementary network offering, which is a distinctive benefit for our payer clients as it provides that extra layer of network breadth and member trace beyond their own contracted network, okay? That is a unique differentiator for us. Also, our primary network, which is a sizable portion of the segment in which regional health plans and TPAs use that to build out their value proposition. And rounding out the segment is our P&C and Medicare, Medicaid network offerings. In our Analytics segment, the biggest piece is our reference-based pricing tool, which includes, but is not limited to our data eyesight solution. Data iSight, as you know, is our industry-leading independent out-of-network claims pricing engine. Also in Analytics is our financial negotiation services, which utilizes a 350 strong team of negotiators. So these are knowledge workers who manage high-cost complex claims and the scale of this business is a real differentiator for us. It's hard to replicate. Our NSA services are also in this category and represent about 20% to 25% of our analytics revenue. And finally, HST is in this category. It's small, but it's growing fast. In Payment and Revenue Integrity, our historic prepay in the dark green, clinical audit businesses, the majority of revenue includes clinical negotiation and advanced code editing. The remainder of the segment is the Postpaid Discovery Health products. Looking at the bottom, as you know, our consolidated revenue is heavily weighted by revenue model, savings characteristic and claim type. 92% of our revenues are a percentage of savings related or [ p-save ] as we call it, 92% of our revenues also are related to the commercial health plans. We've begun to break out our volumes and our revenues and our performance between commercial health plans and payment integrity or that's in our quarterly reporting. Hopefully, that's going to give you a little bit more sense of the pulse of our business. And then last but not least, 85% of our business is out of network, okay? So as Dale said, we were over-indexed historically to this, and it's because it's -- we were doing so well and created such a strong position. Okay. The next few slides are a bit of MultiPlan 101. All these products, all these markets, how does it all fit together. So we have 4 service lines addressing 4 major market segments, and it's not clear to the outside world how each of these services address the market. So let's connect some dots here. First, our network business sells to commercial, government and the property casualty market. Next, analytics. Focuses on commercial health business, the out-of-network business and P&C. Our payment and revenue integrity service lines sell to commercial, government and P&C markets. And lastly, we can serve all markets with benefit science technology. Today, BST has a strong footprint in the payer market, the employer market, supplemental health, so the commercial health market. But as we -- if you've heard, we think we can take BST and their analytics solutions across a variety of markets. It's a gateway for us because of that leading-edge analytic capability that they provide. Okay. Let's take another lens on our core services. In this case, we're looking at the continuum of care through the lens of our core services and how they are applied at which point. It starts with care being sought. At this point, the patient is looking for a quality provider. Next, they see the doctor, care is delivered and a claim is generated. At this point, the payer is looking to see if a claim was correctly billed, whether the claims can be priced under a network contract. And if not, how best to price an out-of-network claim. Then the claim gets priced and paid. And after payment, there may be stacks to correct any overpayments. Okay. Here's where our services are applied in this continuum. Our network services are used before care and during pricing. Our value-driven health plans are also used before care because they incorporate a member shopping experience but are also used after pricing through our network or through our RBP pricing engine. Our analytics services are used for out-of-network reimbursement. And we have prepayment and post-payment payment integrity services along the way. We also have revenue integrity services specific to Medicare Advantage is called premium restoration. Lastly, all throughout this process, we have data and decision sciences, which can be used to suggest a better way to perform all of these steps and that is where our new service line is focused. As Dale talked about a little bit earlier, if there's one key measure to our historical success, it's the breadth and length of our relationship with our payer customers. It's also one of the keys to our go-forward strategy, our distribution channel. Most of you have seen this before. We do business with 700 payers, 25 years in length for the larger payers on average. We're deeply intertwined in their claims environment and we've earned their trust by reliably providing service excellence and aligning our revenue model with savings. These relationships are our biggest strengths. They give us a real advantage to upsell and scale new products. As Dale mentioned, the demand for our -- from our customers for more product is high. Let's talk a little bit about the commercial health market with more specificity. It is vast and diverse. And one thing is for certain. There is no one size fits all in this market. There is none. The market is segmented by a variety of factors, including size of employer, how benefits fit into their talent strategy, cost performance. Of the 180 million covered lives, about 70 million, so about 40% of the total are covered by an insurance product distributed through a carrier. So they're buying insurance for their employees. The remaining 110 million lives are about 60% of the total are self-insured. We're the plan sponsor, the employer is funding the medical risk and they make the call as to what the benefits design and decisions are going to be. So just to kind of step back for a moment, MultiPlan is an employer. The minute we self-ensure, we could become a planned sponsor. So you can kind of say MultiPlan is the planned sponsor, is the employer, it's intertwined. But in the self-funded market, the planned sponsor is ultimately the plan that makes the decision about benefits. Now the vast majority of the self-insured lives is 110 million are with large employers that have over 1,000 employees, okay? And very many in the over 10,000 category. The trend towards employers moving to self-insure is strong as costs continue to race ahead. So this segment is expected to grow at a rate faster than overall employment. The employees of self-insure can vary widely in terms of what they need. Today, it's cost, breadth of benefits, service levels, member choice, member cost or a version of member abrasion. But that may change over time, those priorities, those objectives. And so tomorrow, they may shift. So our payer customers, when they go to market, they need a broad range of solutions to address the diverse and changing needs of their clients. More specifically, when there's an RFP from a MultiPlan where there's a change in the benefits of the design, the payers need to customize the solution for the plan sponsors distinct needs. So you can't go in with a cookie cutter approach. You have to go in with a very tailored design. It's a very competitive market. And that leads to why we think we have a real advantage here. We've got one of the broadest set of solutions in the marketplace. It's a competitive advantage to have a broad toolkit of products for the market. Through our payer customers, we offer solutions that can meet the smallest customers under 1,000 employees who are even self-insuring sometimes at that point, all the way to large jumbo accounts, those national multisite employers offerings span the full range of out-of-network benefits from comprehensive to minimal based on the employers need. For instance, a 50,000-employee tech company is going to have a very different set of needs than perhaps a 1,000-employee manufacturing firm. We can offer point solutions or full configuration and to support a wide variety of benefits packages. And this is a huge differentiator for us. Later on, we'll talk about how that flexibility allows us to optimize and capture the most value in the marketplace. Our routes to market. Likewise, we sell through all channels to serve over 100,000 plan sponsors, and that's before BST. BST is adding a bunch of employers as well. We wholesale our products through ASOs, regional payers, commercial and Medicare payers, TPAs and brokers. And we also go direct to employers through our HST platform. Importantly, and we've said this before, while our concentration in the distribution channel through the payer customers looks high in our 10-K. That's roughly 60% is the top 3, a little over 60%. We serve a very wide base of plan sponsors, those employers. At the plan sponsor revenue -- excuse me, at the planned sponsor level, our revenue concentration is quite low. MultiPlan's top 20 plan sponsors represent less than 15% of our overall revenues. So the concentration is significantly lower when you look at the end customer level, which is why we are so sticky. Let's talk about savings. The key performance metric of our business. In the end, we're here to deliver savings to our customers in an independent fair and efficient manner. And last year, as Dale said, we delivered over $22 billion of savings to our customers. I'm going to pause for a moment and just reflect upon that. That's an enormous amount of value, $22 billion. And let me tell you something, it isn't easy to accomplish. Not easy. It's hard to replicate because we're the leading independent platform, our proprietary network assets that we just talked about, straight through processing at scale and the gold standard of provider acceptance. As the main driver of our revenues, these savings are vital. And we've managed to grow our savings over time. In fact, we've grown our savings 36% over the last 4 years. And you'll see inside that it wasn't growth in build charge. It wasn't just the volume of the market. What we've done is continue to enhance our savings performance. And so the solutions performance enhancements was the vast majority of the growth which was about 8% compounded. Okay. Let's round out our primary with a few key highlights from the rest of our portfolio. And obviously, NSA has been a big topic for folks. We launched this comprehensive solution in 2021. We now have 100 customers using our solutions today. As I mentioned, NSA is about 20% to 25% of our revenues in the Analytics segment. So roughly mid-teens percentage of our total revenues. Now that it's ramped up, it is a steady business. We call it the steady Eddie. And the reason is, is because it deals with emergent care, which is predictably kind of a straight line. It doesn't -- it will grow over time, but it's very different than the vicissitudes of the discretionary care market where people make choices, maybe delay, et cetera. So emergent care is pretty straightforward. There are multiple steps in our end to end NSA service offering. We've talked about those before. And that's all the way from identifying the surprise built to negotiating through the -- ultimately, the IDR process if it gets that far. A very complex overall process. We keep you up-to-date quarterly on the volumes and performance in our quarterly calls. So we won't go into the details here, but we left some takeaways. The main takeaway for you is that we have scale. We've processed over 2.5 million claims since inception. And let's step back for a moment. This is a really complex process, very difficult to execute at scale. The capability is core to our business. We are the leader and the position is a testament to the value we provide our customers. And we're executing and delivering. And there's further opportunity, and we'll talk about this later, to enhance and improve our services and help our clients. When the news of the regulation first came out, people thought it would be the death mail of MultiPlan. And in a way, the No Surprises Act indirectly created the biggest RFP in our company's history. We had an entire book of business that was up for grabs. But in hindsight, as we march through '22, I think we can say that we pass the flying colors. We secured our customers and delivered from day 1 and has become a proof point of our agility and ability to pivot. Let's talk about DHP. This has been a bright spot in our portfolio. We bought the business in 2021, and it's turned out to be a successful transaction for us. It was a textbook example of how to enter -- excuse me, a textbook example of how to snap products onto our chassis. We brought several new elements to our portfolio, including it rounded out our Payment Integrity suite. It provided an entree into the Medicare and Medicaid market, adding 60 customers. The product suite was really well-positioned in the regional payer space because of its independence. And you'll see later in our platform section, it brought a mountain of data, brought a mountain of data to our platform that we can mine for additional value. So DHP was a little slow out of the gate relative to our expectations but still grew nicely in '22, over 20%. And as we mentioned in our Q1 earnings call, we've seen strong performance so far this year. Let's talk about HST. It's been a great addition to our portfolio. We acquired the business in 2020 -- late 2020 and this business gives us a really unique reference-based pricing platform, one that we think is best in the market in the industry, given its unique capabilities. It's our version of Medicare style reference-based pricing, but it's more than that. It exclusively incorporates our PHCS Network for physician services. So we have a network attached to it -- it exclude -- it's wrapped around in our engagement tools for members, providers and plans, which makes the claims process efficient and acceptable for all parties. We add to that patient advocacy support tools for members. It's a very differentiated offering, and it's been very well received in the market. In fact, we now have over 1.1 million members on the platform that we're accessing through 12 -- over 1,200 employee groups. It also diversifies our route to market with an important solution that we can sell through TPAs, brokers, consultants and directly through employers. Revenue has been growing rapidly, and we expect this to be one of the drivers that will help us accelerate our consolidated revenue growth over the next few years as we add services to this platform, and we grow the members. And as Andrew is going to discuss with you later this morning, we're enhancing this in meaningful ways this year with the introduction of our balanced bill product -- balance bill protection product. Okay. So I hope you found this [ primary ] helpful. Before I pass it off to Michael Kim, I just wanted to make 3 points. We are -- and I said it upfront, we are deeply embedded in the commercial health ecosystem. We have one of the broadest product suites that flexibly serves all types of employers and plan sponsors, make it super sticky. And we firmly believe there's growth in our core services if we invest and if we adapt to the market. Okay. I'll turn it over to Michael. Thanks.

Thank you, Jim. Good morning, everyone. For the past 9.5 years, I've been fortunate enough to lead the information technology and information security departments at MultiPlan. Prior to joining MultiPlan, I spent 12 years as a consultant and 3 years at an early stage software company and 6 years at a large legacy insurer. And those experiences really highlighted for me, one of the things that I love, one of the many things I love about being at MultiPlan and that's -- that we have the resources of a large company, but like a small company, we're nimble enough to drive change very rapidly and today is about change, and that is one of our core competencies at our company. But before we get into change in transformation, my job is to give you a little bit of a current baseline of where we are today. And that current baseline is we have a great set of assets and that's our platform and our data. I get the privilege of talking to you about our platform and my colleague, Sean will be talking about our data. So when we've taken the liberty of broadening the definition of platform to not just be about the technology, but the middle column here is about our data, and Sean is going to talk about our data. And it's also the people that we have because they are an outstanding group of technology professionals that are maintaining and care, the care and feeding of our platform on that. Dale and Jim talked about the $500 million that we've invested in our technology. Not surprisingly, it has 10 petabytes of data that we could store in our technology. That's equivalent to 5 libraries of Congress. 5,000 servers, 330 applications and 400,000 custom business rules. The last 2 points I'm going to talk about in a couple of the following slides. Sean is going to talk mostly about the data, which includes on an annual basis, 546 million claims that flow through our platform. I'm going to talk a little bit about the 1.1 million files that data comes in from -- most of that data comes in from because that is a source of competitive advantage for us. And then today, we have about 900 technology professionals supporting that, and I'll talk a little bit about that as I wrap up on that. And it's a very stable workforce that we have with low attrition. And recently, we've been able to augment staff and recruit to deliver on a lot of the growth initiatives that Andrea Rowe is going to talk about today. So our platform, the 1.1 million files that I referred to in the prior slide. That's the top line on this, the EDI files on that. Basically, it means that we are deeply embedded into our client -- our customers' claims adjudication systems on that. We've built these data integration pipelines painstakingly over the past 40 years on that. There are 1.1 million files that we get, 700 payers. It represents about 3,000 data integration points that we have. To give you a point of reference, we have about 100 people within the technology organization that's implementing projects that's enhancing or building new data pipes and they could do about 200 a year. So to have close to 3,000 of these integration points, the ability to replicate that would be extraordinarily difficult and extraordinarily expensive. But the other thing I would say about our deep relationship with our customers is that we do business with them in whatever way, shape or form that they want. We could do it as a batch EDI file connecting their system to our system. We could do a direct real-time web service, which is what the bottom line here represents API-based or if they're not, if they don't have the resources to be able to implement this direct connection -- they could just manually log on to our web portals and input that claim. We want to be in a situation where we can ingest whatever data in whatever way, shape or form that they want. All of that comes into our intake process and comes into this hub, our claims engine workflow orchestration on that. And that hub is a -- it connects to all of our products and solutions. And our overall architecture is that we want to connect all of our different products to this hub on here. We started as a network-based services company. We added analytic-based services. Then we added the prepayment integrity. And then in 2020, with our HST acquisition, which we've integrated, we've added in value-driven health plans. Post-payment integrity, and Revenue Integrity Services, our DHP acquisition. There are so many product lines that we're still in the midst of connecting all the dots on that one. And then most recently with our BST acquisition was the Data and Decision Sciences. So what I would say about this platform is 2 things. One is given the architecture, we can achieve horizontal growth very easily. The hub-and-spoke architecture, we could snap on another product line to this chassis. The other thing that I would say about this chassis we're talking about is it has an ability to support vertical growth without a substantial investment in infrastructure or people, we could process a lot more volume with the same set of products that we have, right? Whether it's 1.1 million files or 1.2 million files has no impact on the overall cost structure for us. It is a massive infrastructure that we have to support this with 5,000 servers and 10 petabytes and 900 technology professionals on that. So the architecture seems pretty simple. But the reality is with 330 applications and 400,000 custom business rules, this is what the real world looks like. This is an actual dashboard that our network operation center staff are looking at. I said 330 applications. These circles here represent applications or notes. This is 26 out of the 330. All these lines represent claims flowing through our system. This is the real dashboard on that. But what I would say is this is a very complex environment because of those 400,000 custom business roles. When a customer engages with us, they'll send us a claim, but they'll say, "Oh, use these products, but not for this employer group. And by the way, this provider, I want you to exclude out of your network and then apply this minimum pricing if you can't achieve anything below that, I don't want to accept that." Those are all kinds of business rules that are embedded into the system. And what I would say is that complexity is our friend. It's what our clients value, our customers value. It's -- we embrace it. It causes a much stickier relationship, and we offer more value for them but it is difficult to manage, and you need to have the size, scale and complexity to manage an environment and a platform with 400,000 business rules and thousands of new business rules being added every day on that. And I would say that it would be nearly impossible without massive disruption to replicate this. The other thing I would say is from a switching perspective or trying to manage this environment, you need to have the size, scale and complexity to be able to monitor this environment, right? This looks at -- by the way, this is the real dashboard. When a system starts degrading in performance, it turns yellow and an alert is fired, then you need to know who to send the alert to and you need to know what the definition of when the system is degrading, is it 1 second? Is it 5 seconds? And have all of that defined and all the rules defined and be able to monitor that and have the support staff to be able to follow up on that, right? The other thing is this is just one set of dashboards about the technology. But the data that's flowing through also has to be [ monitored ]. So there's another whole set of technologies looking at, hey, we just got 1.5 million claims today. One claim might be missing provider name. It gets stuck in this process. As a result, it's missing a provider name. You need to have the -- all the rules defined for having the support structure to identify. And by the way, on an average day, 10,000 to 15,000 claims get stuck in this. And so you need to have people who are making sure that the claims are flowing through that. And that's a massive investment that needs to be made. And part of the reason we spent $500 million building out this complex environment. But as I said, we welcome it. We embrace it. I mean it's a source of competitive advantage. It's the reason that our relationships with our customers are so sticky. Not only did we invest $500 million. But today, in 2023, we'll spend $170 million on technology and the investments in technology. And we want to make sure that, that spend is done in a very well-thought-out manner and has the results that we desire. And the results are, we want to make sure that our platform from a technology perspective stays flexible and continues to be scalable. When I say flexible, I mean fast, nimble, adaptive. When I say scalable, I mean that it's resilient means it does go down, that it's secure, doesn't get hacked. It's reliable that the speed of the platform is fast and it's efficient. It doesn't cost too much, right? And those are kind of the objectives that we have as we build new technology or enhance the technology that we have. And the 4 critical guiding principles that we have underneath that or one is we've pivoted as an organization to be product-centric, that we develop our code in an agile methodology because we think that has the best outcomes rather than the traditional waterfall methodology. So that's the first point. The second guiding principle is what we call MultiPlan i/o, which is the reference architecture. Everything we do, we want to do with modern technology and modern tools, that's instead of big monolithic applications, we want to have micro services that talk to each other via APIs, that sit in containers that have autonomy and so we have a reference architecture that we are slowly and everything that we build, we comply with that new reference architecture. The third, we call DevSecOps is automate, automate, automate. We want to automate as much as possible. Anything related to testing, anything related to releasing code into production so that it's efficient and effective. And so we're applying all of the modern technology and tools around DevSecOps automation. And the fourth, is take advantage of the cloud. We are today mostly an on-prem company, but our last 3 acquisitions are in the cloud. So we're a hybrid model right now, HST and DHP, they were in Azure, BSTs and AWS. And we were MultiPlan -- the legacy MultiPlan [indiscernible]. We were on-prem. So we have a hybrid multi-cloud environment. But we are moving more workloads into the cloud for all the benefits of the processing power it has and the cost advantages that it presents on that. So those are the 4 guiding principles on that. I talked to you about being nimble and having the resources of a large company. 5 years ago, machine learning AI wasn't even a twinkle in Dale's eye, right? Today, we have a data science department in a mature set of capabilities where we have 25 data scientists, 16 of them have graduate degrees, 9 of them have PhDs. With the acquisition of BST, we now have an MIT professor, and Stephen is going to talk about him, who literally wrote the book on a data science technique called robust optimization, linear optimization on that and a pipeline of talent into MIT on that. So fast forward over the last 3 years, our data science applications have won multiple awards starting in 2020, 2022, 2023, the med tech award this past year. And I have no doubt that we'll continue to -- our data science algorithms and models will continue to be award-winning in the health care sector on that because we have a tremendous amount of headroom here. If you look at the complexity, the chart that I have and the 330 applications and the product suites that we have, both at the process level and the product level, we see a ton of applications where data science can make us more efficient and more effective and result in incremental revenues on that. The other thing I would say is the cost of doing business is higher today as it relates to information security. It is a barrier to entry on that. I've seen over the past 10 years that our customers' requirements around information security has gotten a lot higher. It is very rigorous, the requirements that we have. And at our company, we really focus on information security from the individual contributor all the way up to Dale and the Board on that. In fact, we have a board member. His name is Dick Clarke, who is one of the preeminent cyber experts out there, and he's been shaping our information security program over the past 8 years. Not surprisingly, we spend 7% to 8% of the technology spend on information security. That's double a lot of the industry averages that we've seen for companies of our size and scale and the industry that we're in, we've seen 2% to 4% was the ranges typically. That's resulted in what you see on the bottom left on this slide, which are security ratings by independent agencies, security scorecard, we got an A rating. BitSight rating is 800. That's kind of like a credit score. Anything above 740 is considered outstanding. 800 is best-in-class. We look at BitSight ratings of all by our largest clients, our vendors, our competitors, and we have the highest bit site rating, and we have consistently had the highest BitSight rating. Infosec controls, the middle part of this, all of the compliance requirements, all of the certifications that we have. In addition to that, we got -- last year, we had 170 client audits on information security on that, that we've successfully navigated on that. So that is a big barrier to entry and we feel very comfortable with our capabilities in and around that. And finally, talk a little bit about our people, right? We have 900 technology professionals and how -- what are they working on from a platform perspective? As you can see on this pie chart, 48% of the staff is on running the business, keep the lights on types of activities. 52% is on growing the business and profits. Industry benchmarks the last time we looked at it, anything below 60% on running the business was considered world-class, we're substantially lower than 68%. And that's a reflection of the DNA of the company, which is operational excellence. We just want to do everything more efficiently and more effectively every day, pounding away at that. So that left us room for growing the business, 20% of the staff is supporting all of the day-to-day enhancements on our products to make sure that they're better. 20% is on implementing the growth initiatives that we have discussed and Andrea Rowe is going to go into more details about. And by the way, we didn't have all the people for that. So over the past 6 months, we've successfully onboarded almost 100 people. So it was 800 people about a year ago, right? We're now 900. And by the end of the year, given the BST acquisition, will be likely closer to 950 on that. And then 12% or about 100 people, they're focused on implementing all of the EDI client implementation projects on that. And that has a direct impact on revenues. So as you can see, our whole organization from a people perspective and technology is aligned with growing the business and growing the profits of the company on that. So in summary, when I talk about the platform, it is a really solid massive foundation that's really set up to grow both from a technology and people perspective. With that said, I'll turn it over to Sean.

All right. All right. Thank you, Michael. Good morning, everybody. My name is Sean Crandell, and I'm the Senior Vice President of Healthcare Economics here at MultiPlan. I have been with MultiPlan and its family of companies 20 years this October. In my tenure, I've had the privilege of being part of the team that has enabled MultiPlan to become the clear market leader in delivering affordability, efficiency and fairness into the U.S. health care system. Previous to that, I spent time in the employee benefits consulting area, in the underwriting and reinsurance area, and I had humble beginnings auditing, health and welfare statements at the age of 17. So what is healthcare economics? Healthcare economics is seen as a strategic advisory partner, not only to the MultiPlan team but to our clients' affordability and healthcare economics units as well. Our team sits at the table hand-in-hand with our sales team and their customers walking through their analytics and market dynamics. With humble beginnings as part of the network development team, the healthcare economics has expanded advisory services to the entire organization as MultiPlan products portfolio grow. Today, the team is comprised of 70 analysts, developers data solution engineers and client analysts that actively use our vast data sources to deliver value. As a collective team, we complete 28,000 requests annually and provide self-service solutions that our MultiPlan employees use over 300,000 times a year to support our core business. In order to execute on our advisory, we rely on Michael's team heavily to provide a curated data ecosystem where we have built over 100 modules and house billions of historical claims records to help service those requests. Now I'll kind of touch on the 4 key areas that we service, sales and marketing and our client services, operations and our service areas, product and service line strategy and our corporate and reporting strategy across the organization. Now let's take a look at some additional detail within each one of those lines. Okay. All right. So within our sales and marketing vertical, the healthcare economic team sits as a strategic advisory partner, not just a vendor to large national payers, local regional TPAs and regional health plans. We leverage our data platform and advisory. Thus, we need to have a comprehensive understanding of customer performance and it's vital for us to find improvement areas for our clients. Navigation through data is key. As Michael stated before, we have to account for 400,000 different business rules within our day-to-day operations. In addition to helping service our existing client base, we serve as the analytics lead on new business development in which we processed $16.3 billion in claim charges from external data files in the last 12 months. In our MultiPlan operations and service areas, granular level performance analytics about how we are operating and servicing our business is needed to meet our client needs. Health care economics aligns our data and our subject matter experts in a way to drive value all across the organization. For example, we send 62 million insights and recommendations via our analytic engines to various operational areas across the organization. Within our product and service line strategy, we leverage our data ecosystem and play a vital role in new products and initiatives to help create that strategy for those service line leaders. A few notable contributions over the last 24 months include. You heard Jim earlier say we created $161 million QPA values to support the NSA process. We've analyzed 19 trillion transactions for our network development team that not only services our primary network product as well as the expansion of our Medicare Advantage network. Within the corporate and reporting -- corporate reporting and strategy, we are responsible for all your, what I'll call, your business intelligence and corporate reporting needs but we also provide market insights on healthcare affordability and delivery that help inform future product direction and strategy. Now let's get to the exciting part, the power of our -- the data on our platform. Today, I want to run through just the basic current scale of our platform as well as to kind of outline the runway that we have in front of us. To recap, we've received -- you heard earlier, we've received 215 million claims totaling $155 billion in charges in '22, where we've identified savings on -- to the tune of $22 billion. So as a part of the continued review of our business and our data flows, the team has discovered use cases that we could capitalize on another $400 billion on our platform that we could tap into to realize additional potential. Thus, we're looking at about 3x -- 3.5x opportunity with additional system volumes that we can apply new products through, okay? Again, this is all done to address the needs of our clients. So having the data is one thing, but you need to be able to execute on it. With our additional potential defined, how do we realize that? There are 2 key components that you need. The first is the MultiPlan data platform that contains both provider and claims data. We have 1.3 million providers and over 100,000 facilities that we have value-added data components like hospital affiliations, provider groupings in key specialty categories. That, in conjunction with our MultiPlan claims data, okay, that contains Med Advantage in-network fully insured, in network ASO as well as a whole host of other platforms. We -- those are -- that is a key component to help harness that. The second component, which is the most important part of delivering value was the acquisition of BST. We needed a vehicle in order to do that. MultiPlan has historically looked at things from a very descriptive standpoint, okay? In order to expedite this, BST will allow us to predict and recommend strategic actions to recognize values within these claims flows. You'll hear from Stephen later this morning that outlines the potential that we have in areas of risk and harnessing the power of payer transparency files and the platform that comes along with it, which has been insights to directly deliver that value to our client base. Now to kind of help preview Stephen's presentation, I want to go through 2 things on how this data on the provider side and the partnership with BST will provide value. First, price transparency applications. BST has curated 400 billion records. And when you combine that with our provider data and the financial engine that I've talked about before, it will enable us to work with their payers and clients directly to realize areas of improvement and optimization for their network configuration. Second, we'll be able to directly impact risk identification and affordability of our clients. Using the MultiPlan data runway that includes both Med Advantage, In-network claims in fully insured and ASO volumes is part of the delivery value that we seek. Now the part I'm really excited about on this is the not only ability to use these existing data flows, but from the risk standpoint identifying members that are low-cost claimants in one period, that are high -- that could be a high-cost claimant in the future period with little or no efforts on our clients' end, okay? We have the data. We've harnessed the power, that is exciting to me, okay? With that said, I'd like to thank you for taking time to go through how we derive data for our clients. Again, there's a significant runway in front of us and the healthcare economics team will continue to dedicate our resources to meet the demands of the client and market needs. Up next is Dale to talk about our growth plan. Dale, I'll hand it over to you.

Okay. You've just heard from Michael and Sean about the platform -- our platform and our tremendous data assets. And as I mentioned earlier, much of what we are focused on with our growth plan is about unleashing the power of our platform and data to capture additional opportunities that are right under our notes. So what we'd like to do now is to pivot to a discussion of our growth plan. Along the way, we are going to tell you why we arrived on this particular plan, explain why we are confident that we can execute on it and detail the product initiatives that underpin it. So let's start with some context. When Jim and I took on our current roles, we went -- we were thrown straight into the proverbial frying pan because, as I mentioned, 2022 was a tumultuous year. During that first year, the No Surprises Act went live, and it was a company-wide effort consuming much of our resources to implement our solutions on behalf of our customers. Also at the end of Q2, we renewed the first of our 3 multiyear contracts with larger customers, which increased our visibility for the next few years but also had the financial impact that implied our 2023 revenues were going to look flat, all else equal. Then in Q3, third quarter, we experienced volatility and softness in health care utilization, which caused our revenues to rebase lower. Against all that, in fact, independent of all that, we recognized that we needed to revitalize our strategy to accelerate our growth and take the company to the next level. So in the second half of 2022, we assembled the leaders of the company to conduct a comprehensive strategic review. Through that review, we identified and prioritized our most attractive opportunities, and we established a renewed set of strategic goals. These goals include significantly accelerating our growth trajectory, reducing our revenue concentration by product as well as by customer and by channel, broadening our footprint of services pointed at the in-network claims, which outnumber out-of-network claims by a factor of 10:1 and following through on our aspirations to further penetrate the fast-growing government business, starting with Medicare Advantage. Guiding the execution of our strategy is a set of principles that characterizes how we should invest in our business to optimize our success. First, we want to capitalize on our strengths, and I'll say more about that in a minute. Second, I mentioned earlier that the demand from our customers for new services is strong. Our strategy is driven largely by our intimate knowledge of the challenge our customers are trying to solve. Third, our strategy is aimed at supporting our customers in the markets they are focused on, growing specifically, specifically the government markets of Medicare Advantage and ultimately managed Medicaid. And lastly, we are resolved to invest in opportunities with high incremental returns that have manageable sizes and risks and in other words, that we are confident we can execute on given our capabilities, our resources and our capital. Just a moment ago, I mentioned that one of the guiding principles of our plan is to capitalize on the underexploited strengths of the company strengths of the company. This is a theme you've heard several times today, but it's worth repeating. These are the advantages that have made us successful in the past and that are the foundation to our future success because they continue to present a ton of latent untapped opportunity. Jim talked to you about the strength of our customer relationships. Sean spoke to you about the enormous opportunity to monetize more of the claims already on our platform. That means doing more with $155 billion of charge volume, we already point our services against. And as Sean mentioned, there's another $400 billion of annual charge volume that already exist on our platform that we can do much more with. Again, it's all here. It's all right here inside our walls. And all we have to do is unlock the opportunity. So this is our growth plan. This is our growth plan in a nutshell. First, we are reinvesting in our core out-of-network solutions to continue to improve our competitive position and expand the value we create for our customers. Second, we are expanding our service lines from 3 to 4 with our new data and decision science service line you see here. And third, we are introducing our new B2B payment services to add value across all 4 service lines. What you see on this slide is the pipeline of products we plan to launch across our different service lines in 2023 and in 2024. In a moment, our Senior VP of Product, Andrea Rowe, is going to discuss all of this with you in much more detail. The revenue of these products, the revenue expectations of these products are high but we believe they're very realistic expectations. Over the next several years, we expect to generate incremental annual revenues of $200 million to $275 million. As we mentioned in Q1, we expect $50 million to $100 million to come from our core service line enhancements. As we mentioned when we acquired BST, at least $100 million will come from our new data and decision science service line. And with the announcement of our B2B payments partnership last week with ECHO Health, we expect between $50 million and $75 million from this new solution over the next several years. Again, in total, we expect these initiatives to increase annual revenues of $200 million to $275 million over time, significantly increasing our revenue growth trajectory and our base of revenues. It should be obvious from the previous slide that I'm very excited about the combination of MultiPlan and BST. As we noted when we announced the deal, the transaction brought together complementary capabilities. In short, we believe BST's industry-leading data and decision science capabilities is the key to unlocking more of the value on our -- from our platform and our customer relationships. In fact, BST adds 13 more products to our product line. This is the first time we've had an opportunity to speak with you about why we did this transaction and what the combination really means for MultiPlan going forward. I'm delighted that you're going to hear more about that from the former CEO of BST and now Head of our Data and Decision Sciences service line, Stephen Sofoul in a few minutes. This is also the first time that we've had a chance to speak with you about our exciting new partnership with ECHO Health. ECHO is going to help us deliver B2B payments that will streamline provider reimbursements and drive further efficiencies in the end-to-end claims adjudication process. We believe this offering will enhance the value we provide across our entire solution set and enhance our competitive position in the key channels we are focused on, including the third-party administrator and regional health plan channels. I'm delighted to take a moment to introduce Bill Davis, CEO and Founder of ECHO, Tom Dean, President of ECHO Health, who are with us today. Thank you for both for coming. As a side note, Bill and I have known each other for a very long time. And we're both -- I would say this would be an understatement. We are both super excited about the partnership that we've established and the possibilities that are in front of us, and we look forward to moving forward. So as you can see, right, as you can see, we are pivoting quickly with our strategy. We believe we have the right strategy and an outstanding pipeline of product initiatives to grow our top line meaningfully over the next several years and along the way to transform MultiPlan into a better and stronger company. And as you've heard me say many times, now our focus is on execution, execution, and execution. A strategy isn't worth much if you don't execute against the plan. We expect our investors will monitor our progress and hold us accountable to meeting our milestones. This is something we can control, and we are excited about the journey. Before I hand it over to Andrea Rowe, our Senior VP of Product, I wanted to acknowledge and thank John Prince, our newest Board member. John comes to MultiPlan with 25 years of executive leadership and most -- a lot of that with Optum, where he was President and COO of Optum and prior to that, held multiple executive roles at Optum, including the President and CEO of OptumRx. He brings enormous executive leadership to the Board. He brings enormous talent and experience in operating businesses. He brings enormous experience in the pharmacy. And as you'll hear in a few minutes how we want to look at that space as an opportunity. So more to come, but I wanted to thank and acknowledge John for joining the Board. With that, I'm going to hand it over to Andrea Rowe, who's going to talk about our new product initiatives and bring some of what we're doing to life and help you appreciate the opportunity that we see in front of us. Andrea?

Okay. Good morning. So my name is Andrea Rowe. I've been with MultiPlan a long time back to 1998. As such, I've had a front row seat to MultiPlan's evolution. In fact, I've participated in our evolution, in varied leadership roles, in operations and in IT. So earlier this year, I was honored and thrilled to be asked to bring that deep experience to my current role leading product. So today, I'm going to talk to you about MultiPlan's investment in product as well as where our products have been and as Dale just mentioned about the growth plan where the [indiscernible] will be. Two years ago, MultiPlan started this journey to transform into a product-centric organization. This is a significant investment, including my role building and leading product, building a product team and building the relationships and ways of working throughout the company. Our job is to try to help drive MultiPlan's growth by translating customer needs and market trends into effective roadmaps for our products. Our sales and account teams have deep relationships with our customers, and we rely on them to communicate the voice of the customer. We also often talk directly to the customer, especially when concepting new products. For example, our customers played a heavy role in developing the NSA compliance services that we launched last year. The product organization is responsible for translating those customer and market needs to help focus our IT, our operations and reporting teams on successfully innovating to bring products and product enhancements to the market. Now you just saw this slide as Dale walked you through the growth plan. Today, I'm going to go deeper into the investments in our existing service lines describing the products we're creating for the first 3 rows here. Expanding on HST platform, our core service enhancements as well as solidifying our position as a leader in NSA. Okay. Before getting into those products, let me demonstrate the growth plans impact on our MultiPlan products through the lens of the product life cycle. So this is a typical product life cycle and a good organization would have products in various stages of this life cycle. Today, most of our product lines are in a steady state of growth whereas with our network-based services being the most mature. Under our analytics-based services, we also have a high-growth service value-driven health plans that is hosted on the HST platform. As the name implies, our growth plan is designed to spur growth. And so let me illustrate the end result with these new products. We are significantly expanding our HST platform this year and next, which will drive new growth for these already high growth services. Within our core services, we're introducing additional new products that I'll be describing shortly. New products like Pro Pricer within our analytics-based services and like IVR within our Payment and Revenue Integrity services. Our network-based services, which are MultiPlan's longest-standing and most mature are going through an exercise this year to determine their next generation. The product team is collaborating with network development, operations and sales and our newly acquired BST. We are close to presenting the business case for a new concept for this network for our network-based services that involves highly curated networks for specific populations. Product is also hard at work developing -- aiding the development of our new data and decision service line, and we are about to begin a similar exercise to implement the partnership with ECHO that was just announced. As we build out the ECHO strategy, we will determine how we bundle payments with our other offerings to meet our customers' needs. Okay. So let's go a little deeper. The first of our key initiatives in the growth plan is expansion of the HST platform. So the market landscape is changing as more employer groups are self-insuring. In fact, market trends are that the self-insured employer enrollments will continue to accelerate for 5 more years. Voice of the customer tells us that these employer groups need ease of access to get to all the tools that are necessary to self-insure which brings us to our vision for the HST platform becoming the healthcare -- Employer Healthcare Solution in a Box. Now HST already has a very rich offering across member plan and provider engagement tools in blue here are tools that we already offer. In gray are the tools that we are adding with our growth plan. And as always, right, good organizations evaluate the how, considering whether to build, buy or partner. And we're leveraging all of those and building out these concepts of Healthcare Solution in a Box. So first, we decided to build our balance bill protection. So listening to the needs of the customer, we know that a portion of the reference-based pricing market wants full provider acceptance. Balanced bill protection delivers this by managing provider balance billing from start to finish, alleviating abrasion for members, employers and providers. I'll even mention here our new product organization, as I mentioned, how they'll help focus the whole company to bring a product to market. This is one that has been very interesting internally to watch the teams really build that new muscle way of working across IT, ops, finance and legal to make sure what does this product actually look like and does it meet the needs of the customers. Next, for the tools we've decided or better solution via a best-in-class partner versus building from scratch. We'll have -- we have 3 of these here. In 2024, we'll partner to add capabilities in pharmacy, care navigation and our payments via ECHO. For the buy approach, we're going to leverage our newly acquired capabilities from BST. First, to enhance the existing analytics and reporting, also to incorporate benefit plan design into the tools in this health care -- employer health care solution in a Box. And finally, we would use BST's prescriptive analytics to create those curated networks that I had just mentioned. We think this -- we think these highly curated networks will fit beautifully into the employer health care solution in a box. Okay. Let me introduce to you our Pro Pricer service. Multiplan has the industry's broadest range of out-of-network pricing options. With Pro Pricer, the customer can set their unique preferences as it relates to balancing savings on the one hand with their tolerance for abrasion on the other. And then our AI-enabled pricing technology, combined with 40 years of claim data and pricing experience, wires together the out-of-network pricing options the customer has elected to use to deliver the best price on each claim under those stated preferences. This is another of those examples where the product organization did market -- looked at the market landscape as well to say, how do we take our assets and modify to meet the needs of where everything is going. Pro Pricer takes many complex options and simplifies the solution for the customer, removing the guest work from payer and to network cost management programs. Okay. So next, we'll focus for a moment on our prepayment integrity services. In 2023, we're enhancing our itemized bill review. This is a product offering that MultiPlan added with the acquisition in 2021 of Discovery Healthcare Partners. It addresses the payment integrity on high dollar services. Our customers who have implemented IBR have had very strong results. This year, we're investing in 2 innovations to enhance results even more. We're connecting our extensive prepayment integrity analytics process to incorporate the data mining for the best cases to pursue. We're also building functionality to simplify the client interaction with us in submitting cases, providing documentation and tracking progress. Again, this is -- I wanted to touch on an example where our product organization has been talking with via our sales organization, what are the customer wants and desires. And really that ease of simplification of interaction with us was the feedback that we received. As we go into 2024, we'll be expanding on our advanced code editing capabilities. This service has been deployed by customers to complement the primary editing, but it's also a powerful editor in its own right. In fact, a number of our customers have told us they would benefit by its use as their first past editor. Therefore, our growth plan calls for optimizing the program for use as a first pass editor, adding increased ability to customize when used as a subsequent pass editor and adding visibility into claims throughout the process. NSA. The last growth plan initiative that I'm going to cover today is initiative to solidify our leadership position we have in helping timers comply with the No Surprises Act. Our NSA compliance services are a great example of MultiPlan innovating our existing offerings to create a new product to meet customers' needs. Jim showed you earlier the significant volume we have driven through these new services in the first 17 months. In 2023, we're continuing our investments in NSA services in a number of ways, most notably adding sophistication and enabling insights. So first, the sophistication. Due to the nature of NSA's regulation, NSA claims have 4 touch points that impact price. That price is either the QPA a little early. That [indiscernible] price is either the QPA or the QPA-express as a factor of the QPA. Remembering that QPA is the median contracted rate benchmark. Okay. So what we are doing is we are enhancing our NSA services by building a rules-based program that allows customers to vary the pricing at any of these 4 touch points. Customers will be able to create many rules to vary the price based on any number of claims scenarios. Let's take an example. [ ER upleveling ] is a common industry -- common problem in the industry. We have a proprietary severity score that we have created with our data science and health care economics teams, leveraging both actuarial and clinical data and [indiscernible] experience. This rule shown here says if an emergency claim is coded at the highest severity, but the data suggests that patients need wasn't severe, then the customer may prefer to hold reimbursement closely to the QPA maybe even below it since the claim was coded for a higher reimbursement than was warranted. In essence, we're enabling our customers to apply game theory to most effectively price a surprise bill in order to minimize the added medical and administrative costs of the post-payment process. Now for enabling insights. The other investment in NSA this year is enabling insights, which we are delivering through a newly created data and analytics platform developed with the help of our data science team. With this platform, not only will customers be able to see the results of the pricing at every stage of the process, but we'll be providing the insights that will guide them in determining what rules to apply using the new rules engine capability. We are working even today very, very closely with our customers like directly connected through our sales account management team to subject matter experts at our customers to make sure that this product meets their needs. These insights will help them set what rules they want at what levels that I just mentioned, the rules-based pricing engine. So in review, we are committed to the continuous evolution of our products across this life cycle. This slide illustrates where we're headed with our 2023, '24 growth plan. Sorry. Excuse me. This slide illustrates where we're headed in our 2023, '24 growth plan initiatives, shifting our product lines even further into high-growth mode. In closing, I'd like to highlight 3. In 2024, we'll launch our next-generation network strategy, likely highly curated networks. Second, we've just announced our partnership with ECHO, who are very excited to strategize with. And finally, our data and decision science service line will move further up the rapid growth curve. You're going to learn more about this exciting new service line from our next speaker, Stephen Sofoul. So clearly, the product organization is off to a great start with a tremendous pace of innovation by way of our growth plan. I want to thank you for your time focusing a little deeper on this, and we are going to now go into a Q&A session. So I'd like to invite our speakers from this morning up to the...

I think just a couple of things. I think most of you can hear me, but we'll do a short Q&A session. And [indiscernible] for 15 minutes, and there are 2 folks in the room that have microphones that can help. And then right after that, depending on how much time we'll take a short break.

Steven Valiquette from Barclays. Great set of presentations so far, great info. Thanks for setting everything up and going through all this. One question around the $100 million of revenue growth coming from the data and decision science services. I think that was on Slide 57 as far as all those growth trajectories. Just curious, a little more color on the trajectory of that revenue growth as far as will the growth being lumpy with larger new contracts being added, what -- maybe just a sense for the average size of the contract? Or will it be more of a linear progression as you kind of visualize the $100 million of revenue ramping up from that opportunity?

Yes. So thanks, Steve. I'll take that question. I think in a nutshell, I think it's going to be relatively linear. As Dale mentioned earlier, it's a handful of products. There's some that are in market today, like the Ben Insights platform. There's others that we're releasing plan optics, et cetera, which Steve will talk about. But these are not giant contracts, but these are our Software-as-a-Service solutions. And so it's going to be smaller installations, but distributed to a very broad base of customers. So for instance, in [ plan OpEx ], you could argue that payers would want it, ultimately, down the road, you could see the provider universe wanting to have those same tools to understand price transparency. And so I think it's a deeper well and -- but smaller software installations.

I think, [ Mark ], just to add one comment. I think the pricing model for many of BST services and you heard Jim as a percentage of savings, 85% of our revenue as a percentage of savings. The BST products it will be different, right? It's not a percentage of savings that will be a software license fee. It will be a PEPM much -- and so we'll be changing the models as we move forward.

Daniel Grosslight with Citi. Thanks for all the detail here. Jim, I want to go back to a point that you made that I think is oftentimes lost on customer concentration. Even though if you look at the 10-K, it's very concentrated, but ultimately, the plan sponsors are much more diverse. But I'm wondering how much do plan sponsors rely on the plan to drive their decision on out-of-network products. For instance, one of your large customers develop their own product and they're pushing that as their lead out-of-network product, how much influence does that have on the ultimate plan sponsor.

Well, let's put ourselves in an employer shoes. I'll go back to that tech company. The 50,000-person tech company or the 1,000-person manufacturer. And they're going to look at a variety of different options in terms of what they want to accomplish with their benefits, choice, number of abrasion things like that. So again, we made that point one size does not fit all in the marketplace, and it's very segmented. So there's going to be spots where reference-based pricing is going to be more acceptable, cost conscious, et cetera, but there's going to be plenty of spots where a broader suite of solutions. I look at my [indiscernible] Morgan Stanley or something like that or a big tech company where they want a very broad choice of solutions. So at the higher end of the market, I think choice matters more. And so you have to have multiple ways to win. And by the way, our payer customers think that way, we think that way. They understand that they have to have multiple tools in their toolkit.

Got it. And maybe just one more on that. You mentioned that you're seeing some take rate compression in some of your large contract renewals. I'm curious how much of that margin, the plans are keeping for themselves or passing on to plan sponsors?

Well, we'll talk about that in the financial section. But in a lot of ways, our distributors with their contracts are kind of setting price on our services. And then, obviously, some of that, I presume, would get passed along to the end plan sponsor.

Josh Raskin with Nephron. I've got 2 questions. I guess the first is, you guys a giant base of customers 700-plus plan. How do you prioritize cross-sell, you're introducing a ton of new products? How do you sort of triage what's most important for MultiPlan is it sort of customer choice? And then the second question is just around the NSA product. And I'm curious on the sales process, how is that impacting network services? Do your customers think of that as separate? Or do they think of that as sort of combined and they're buying both together? And is there some sort of differential in how you deliver that together?

Sure. The -- in answer to your first question, Josh, in many ways, the list of products that we have that we are developing through our growth plan and the additional products that BST brings are the wish list of our customers. right? So this isn't -- we haven't deviated 5 deviation points away from what we do or what our customer wants. These are our customers' pain points. And everything organically, everything we're doing through our growth plan is aimed at enhancing our core business. And so it's the NSA, it's the balance bill protection initiative that we're stepping on the HST's platform. It's the Pro Pricer. And these are pain points that our customers have expressed to us, and it's their wish list. So we're in sync -- we're in alignment with what our customers want, and we're building and adding through BST to resolve additional pain points. And so we're in a complete alignment. In terms of your second question around the NSA Act and No Surprises, obviously, on out-of-network, all of our solutions are available to a payer, and many of the payers use all of our solutions to manage No Surprises Act claims. Many of them have developed and you know they developed their -- what they call QPA or their median contract rates and have asked us then to manage that on their behalf. And so from a network perspective, our network can be utilized and is, in some cases, to -- for a surprise bill, our negotiation services can be used on a surprise bill, but also a payer can say, I have my own QPA. I'd like my QPAs to be applied to that claim [ MultiPlan ], flag the surprise bill, manage the process, if the provider pushes back on the back end after their initial payment, you manage the postpay process and then ultimately IDR. So it all comes together. We're very flexible and we can tailor that solution to the needs and wants of the payer.

And Josh, I'd just also say we're bringing a lot of products to market. And is there a -- are you going to crowd out an individual customer's ability to buy. I think you should note that we're targeting different segments with these products. So it's not like we're showing up at the one client saying, here's a whole new list of things. For instance, the balance bill protection product is going through our HST program that's almost just an upsell on top of the normal customer -- do you want to join the HST platform or, hey, you're a member or you're on our platform, would you like this additional service. So whereas the NSA services that you're going specifically and enhancing the process. So the good news is, it's not -- they're not mutually exclusive. But on the other hand, we've got to do good marketing behind it. We've got to have the products ready. And so what we're really -- what you're seeing from us, what Andrea just said is we're building a pipeline, so we have more things to go to our clients and help their pain points.

[indiscernible] Oaktree Capital. Just kind of a follow-up to these marketing questions. You've outlined a number of new products and sort of new markets and adjacencies that you're interested in entering. When you're marketing -- when your salesperson is calling on the client, in order to sell these new products, are they calling on the same people? Or is -- is there a new introduction that has to be made? I mean, who's sitting in the room when MultiPlan comes to call? I can't -- it's hard for me to imagine like is everyone there who needs to be there to be able to sell your new products as well?

I think it's a great question. You're asking who's the internal buyer of the products and services that we have. And in large part depends on the size and scale of the customer. I mean, in many of the cases, the larger customers have teams of people that are dedicated solely to manage out-of-network costs. And on a regular basis, our team is connected to that team. And then behind that goes behind that to the network development team to the claims operations to the health care analytics team. Sean works exclusively with the larger customers in their health care analytics. So each of those can be buyers of our products and services, and we're connected. We have gateways into the company, but we also have relationships with the internal buyers behind that gateway into our larger customers. So who are the internal buyers that typically we work with, it will be network development. It will be claims, claims operations. It will be health care analytics. And those tend to be the internal buyers. Now having said that, with the addition of BST, right? We think, and you'll hear later from Steve about our planned optics price transparency product. We think we know inside larger payers, there's competitive intel teams that always look at where the payer is positioned against their competition. There's going to be the health care analytics team who is managing the risks and the competitive nature of their program. The network development team is going to want to have access to that data and that product to better negotiate with providers going forward because of the data and the power of the system that we're bringing. So we're -- and again, as you go down in size and market, the resources become more limited and more centralized. But look, we've been at this a long time. And we know particularly larger payers, 25 years, relationships. We have relationships that cross over, not only into the commercial health space but we have contacts inside their Medicare Advantage product team or inside their managed Medicaid team, depending on the products we had and are talking to them about.

We learned a lot about the new products. And I was wondering besides the product innovation, where are you in your discussions with the customers? Have you contracted for these new products already and started the IT implementation to the basic that customers start to roll claims on these actually sort of so to have more clear line of sight on that.

Yes. And maybe we can talk about -- depending on the product, some of which have not been released yet. So -- and but some of which are already kind of -- we're already in the environment. So I think it's relatively smooth. I think when you talk about balanced bill, we're on the cusp of putting that out into the market. And so that is just a snap on to our existing HST platform. So it's not an integration lift per se. So that's -- I think there's a sales cycle to it. So we're starting to generate that. On NSA, it's really kind of a cross-sell back to our existing clients. That's going to be just kind of would you like the service to turn on? Yes. Do we want to customize it? Yes. And so there'll be some back and forth. But these are all relatively easy. Now I think we'll talk with Steve Sofoul when he comes on, when it pertains to some of our newer products, those are going to be coming into production. There will be a sales cycle, but there's a pretty receptive audience here because a lot of this stuff is services they can't get today. Dale, you might want to...

Yes. I think it's -- look, the organic initiatives that Andrea outlined and as Jim just talked about, are easy ones to Snap on. We're talking to the same people. It's enhancing our core. So Pro Pricer is an adjustment to our existing process. The balance bill protection on HST is snapping on to our existing HST platform. So the NSA is enhancing the work we do for the customers who purchase NSA services from us. So those are -- we know we have line of sight. We've been engaged with the customers about that. Again, this is no surprise. We were in front of our customers, as you know, on a regular basis. We're listening to what their pain points are. We're listening and understanding what their needs are and then building product to address that. So none of this will surprise our customers, right? And then the addition of BST and the 13 products that they bring, we're excited about, right? We've owned BST for 1.5 months, and now we've collaborated with them on the development and formation of the option the planned optics, which is the price transparency product, which Steve will talk about. But all the additional products in terms of risk scoring and Ben insights, our teams are super excited about to be bringing into the market to the customers.

But Dale, we were -- the strategy that we had that ultimately led to the acquisition of BSD, we were talking to our clients about this last year. And seeding these ideas about risk and transparency, et cetera. So this is not a hey, we just bought a company. This is a brand-new discussion. We had been basically getting in front of our clients and creating this roadmap and then BST crystallized it for us. So when we announced the transaction, our customers are like, wow, this is exactly what you've been telling us all along. And so we've got a very good start in terms of the sales cycle with these products.

Rishi Parikh, JPMorgan. Sorry, 3 questions. One, can you walk us through the margin profile and the revenue initiatives that you outlined and how we should actually think about it over the next couple of years? Two, and I may be jumping ahead a bit. But on ECHO, can you walk us through what you're doing today, the processing fees that you're probably incurring today? And is that all going to disappear with the ECHO relationship?

I'll talk to the ECHO.

And I'll ask my third question [indiscernible].

Okay. So I'll speak to margins. The margin -- and we'll talk about this in the financial section at the end. But the margin profile of all these products is ultimately going to be quite strong. We're not getting into a new kind of people-based set of businesses. These are snapping onto our platform, and so they're going to all be very high margins. I think we'll talk a little bit about BST, which as we scale it, the margins are going to improve. So that's not a product that's a company that we've acquired. But generally speaking, all of these when we reach run rate are going to be at corporate level margins, in our opinion.

I'll talk to the ECHO. Today, we basically don't do payments, right? So this is added services that we're going to partner with ECHO to bring to the table. So we will figure out how do we take -- how do we enhance -- how do we bundle that with our existing offerings to add more value to our clients. But that was -- remember that [ build buy ] partner. This is a -- let's find someone best-in-class because we don't do that today and partner to say, how do we bring that bundle that with our existing offerings to the market. Do you want to add something?

Look, for us, right, as Andrea pointed out, it's buy build or partner. And in this case, we're partnering with one of the best payments company in the U.S. And for us, it was all about speed and speed to market. And so the partnership is not -- again, we've known each other. The companies know each other the founders and CEO have known each other a long time. So we're super excited about that. I can tell you, and you'll hear from the say best voices about the enthusiasm for these products, the BST and payments, what you'll hear from the sales team because they're facing the customers day in and day out, large and small, TPAs, regional health plans, the larger carriers, [indiscernible] they're the best voices for you to hear the enthusiasm about it. And so we're really excited about the opportunity that payments brings to this company and looking forward to the possibilities going forward.

And then just a last question on the MA front, we've been hearing from providers that the post [indiscernible] adjustments, the yields are less than Medicare. Can you just walk us through how your revenue recognition works on the MA business?

Well, there's -- let me speak to it currently, I guess, Rishi. I mean 2 -- we do 2 things. As Jim mentioned in his presentation, we build Medicare Advantage networks for customers who need resources and help in expanding their footprint, right? So we have worked with a number of plans that want -- that are under very tight timelines to develop their network so it gets certified by Medicare. And they turn to us and help us -- we leverage our 1.3 million providers that we have under commercial and in some cases, government-related contracts and help them build a network -- that and so that they can then file it with Medicare and be in the Medicare Advantage business in that county or that state. So that's one way, right? That's one way we get revenue. The second, largely today, right, is through payment integrity. So today, we do work through our payment integrity and our revenue integrity program, both programs, which can be tailored to meet the Medicare Advantage programs and their pain points. So we've tailored our payment integrity program to meet the needs of the seniors and the senior utilization, the revenue integrity program, which we've talked about is how we can help health plans identify instances where CMS has underpaid them for a member and get it corrected and bring that revenue back to the health plan -- and in both cases, most of that is based on a percentage of savings.

And Rishi, the important to note here, these are the revenue models that are consistent with our core business percentage of savings or fee-based. We're not -- in the Medicare side, we're not in that risk business, if you will. We do think we can be very helpful to the entire ecosystem as the -- as risk shifts between providers and the governments and the payers the -- having those insights of having that data, but we'll approach it from a fee-based or kind of a SaaS type of model versus taking risk per se, on contracts.

Steven Valiquette from Barclays. So there's obviously been a lot of investor attention on artificial intelligence to say the least. You mentioned the AI-enabled pricing technology when discussing Pro Pricer. So I guess I'm curious if you could just describe the AI capability in greater detail. Is this something that you've purchased and/or license from a third party vendor as far as the AI technology? Or is this something that you developed internally? Just curious to your investors want to hear more about this as well.

Sure. The basis of that is what Sean talked about, which is we have an awful lot of data historically on performance, whether a provider appeals, abrasion, success across all from a very long period of time. And so what we've developed is AI models that predict the likelihood of a provider appealing the result of one of our things. And for those, we would route the claim differently or reprice. And so our AI is both impacting the offering of the price discount as well as the routing of the claim on that. So it's a set of rules that it's generating, that's routing the claims to what we think is the best area, best solution as well as predicting the likelihood that there might be some provider abrasion and doing things to make sure that there isn't based on whatever the client has configured as our sensitivity.

Is that our capability?

Yes. No, we've developed that all in-house, right, with our data scientists. And so that is intellectual capital that we have and our data.

Explaining 400,000 different rules to somebody outside, it would take a long time.

Sure. So why don't -- let's see. Where it is 10:35. Why don't we take -- Luke, do you want to go to the top of the hour or you just want 15 minutes?

Do we want to take 25 minute break or you want to...

What do you want? We can do 15-minute or we can come back at the top of the hour?

15?

15? Okay. 10 to 11. [Break]

Hi, everyone. We're ready to get started. I am Steven Sofoul. It's my privilege to introduce our new Data & Decision Science service line. As the President and CEO and Co-Founder of Benefits Science, it is -- it's my privilege to be able to share a little bit about our company, our founding and what we've grown into, and then to talk about -- the -- what we saw in the combination of these 2 businesses, really unlocking the value of the data science assets and product portfolio of Benefits Science combined with the existing integrations of hundreds of payers at MultiPlan to be able to provide advanced data analytics solutions to payers. So we're excited to introduce the business today. As the Co-Founder and CEO of Benefits Science, we're going to go through a journey today to talk about the impact of artificial intelligence and machine learning in this business, how we're deploying it into markets that we have been servicing now for over a decade, and we are -- we couldn't be more excited for the opportunity to combine together with this fantastic organization. So we've been hard at work for the past decade at developing data-driven solutions, some of which we're going to have a chance to talk about today as well as introduce a new solution called PlanOptix, which the industry is extremely excited about. And we actually began collaboration on this product solution with MultiPlan even prior to the combination of our 2 companies. Now this new service line for MultiPlan is all about data, and not just ingesting and processing data, but deriving insights from the data, turning those insights into prescriptive actions for our customers. As you can see the -- in our product wheel, the solutions that we offer at Benefits Science and now MultiPlan, leverage both in and out of network claims, [ Maiden Rx ] claims, to deliver descriptive, predictive and prescriptive analytics. Now you may think of MultiPlan as a company that historically has focused on the out-of-network portion of the payers' claims data. Well, through the -- over the past few years, through recent acquisitions, including Benefits Science acquisition, we are now able to provide services on the larger in-network percentage of the claims you've seen in some of the slides that untapped potential, which we'll talk about in a little bit more detail. So I'd like to share a little bit of the story of Benefits Science and then talk about why we're here, why we're together. So we were founded in 2012, myself, Dimitris Bertsimas, who'll speak about a little bit more in a moment, and Sid Mann, cofounded the company. We believed at that time that advanced data science methods were going to play an increasingly important role in the health care industry. Now back then, the words artificial intelligence, machine learning, most companies weren't very familiar. Very few were leveraging those technologies. In fact, the industry, even today, is largely utilizing actuarial science to predict risk. Fast forward now, 10 years later, and practically -- virtually every company in health care is trying to figure out how to leverage their data and to use these advanced technologies to derive insights and then take action on the data. Now I can assure you we are not a start-up. We are processing data on over 75,000 plan sponsors on a monthly basis. And those data flows are increasing rapidly. It is our belief and our clients really press us on this that it's not enough to just simply describe what has happened, descriptive analytics. They also expect us to predict what's likely to happen in the future. So we learned from the past with data to predict what's likely to happen. And then we go a step further with prescriptive analytics. And this is really what many would consider the Holy Grail in the analytics world, which is don't just tell me what's happened or what you expect to happen, but tell me what to do about it? How do I solve the problem of the risk that's presented. Now what makes us unique? I mentioned Dimitris Bertsimas a few moments ago. So Dimitris and I met when I was pursuing my MBA at MIT, and he had just recently exited a company called D2-Hawkeye. He was on the Board at D2-Hawkeye and an early contributor. In fact, one of the -- the only Board member who actually voted not to sell the business to Verisk because of the growth opportunity that he saw in that business. When he and I met, he was roughly a year after that exit. And our vision for bringing these technologies into this space just perfectly aligned. Dimitris is one of the world's leading experts in a field called operations research and particularly robust optimization and a professor at MIT for over 30 years and continues to guide our -- the direction of our data science team. Steve, you asked the question earlier about the AI capabilities. These are really coordinative to who we are as an organization. Omid Nohadani is our Vice President of Data Science and AI. Basically, our entire data science team has been trained by Dimitris in the operations research world, either through their PhD work, Masters of Business Analytics, or post-doc work at MIT. So I can say with confidence that the data science, the advanced data science methods, particularly machine learning and AI that are built into our solutions are world-class. We know that. And so those world-class capabilities will increasingly add on to the capabilities that MultiPlan already has in place. And when we talk about risk models in a few minutes and some of the predictive analytics that we have, you'll see we are not farming this stuff out. We are building this in-house, and these are built with the latest and most modern methods. We also -- I just have to say, Dimitris and I could not be more excited about the combination of our 2 companies. You remember Sean's slide earlier and then Dale had a slide as well that showed this $400 billion of untapped potential for those in-network claims that are really not addressed very much today with the current suite of products that we have. We are so excited. In fact, we had a lot of options in front of us. There were a lot of strategics that we're interested in these capabilities and deploying them into their environment. But for us, we could not find a greater opportunity than what MultiPlan afforded us for this massive sandbox of $400 billion of claims flow that we could deploy our technology into. We are -- the proof is we are here, right. Of all the opportunities that were in front of us, this is what made the most sense for us, and we could not be more excited for the future. Now I'd like to introduce some of the product solutions that are inside of our data and decision science service line. We'll start with a product that we actually began collaboration with MultiPlan prior to our combination. This started in Q4 of 2022. So to set the table for this initial solution we'll talk about, in 2022, July, CMS regulations required that health care payers disclose the rates that they have negotiated with providers. This is called the machine readable files, MRF data, or price transparency data. Really the first time in the last 50 years, employers, employees, service providers can gain access now to the highly protected rates that were negotiated between payers and providers. Now the data -- the file structure from CMS was mandated, but the data files are large, and they're messy, and they're extremely difficult to process, which, by the way, we love. We love that messiness, right? Because what it means is even though the data is publicly available, without the ability to analyze the data and enrich it, it's virtually unusable. I'd like to introduce PlanOptix by MultiPlan. So this is a software solution suite, which will address many of the issues that not only payers are facing today, understanding their position in the market, understanding how to prepare correctly for price negotiations. Every corner of the market, and Jim, you have mentioned it earlier, whether you're a point solution, whether you're a provider, whether you're a payer, whether you're a broker, you have a desire to access this information. And we believe that, as he showed earlier, this -- the TAM for this industry will quickly grow to over $1 billion a year. Now the PlanOptix software suite, we started with something called Search. Very quickly, our customers told us, we love having access to that data, but it's not enough. It's not enough to simply get to the data and information because the records are vast. We -- today, with our search solution, which is scheduled for release in the market in the next few weeks, we enable access to 400 billion records fully indexed under 1 second. If you want to search a CPT code and understand the price of that particular service or -- that particular service at a provider under a certain network, you can get to that information very, very quickly. But as I mentioned earlier, it wasn't enough. We had to go further than that. So introducing market intelligence, which is a second module of our suite which is scheduled for release later in 2023. Now this is extremely exciting. This is where -- and by the way, we have already been doing this work with a very large payer, 1 of the 10 largest in the country, where we have been helping them understand, prepare for price negotiations as they start to negotiate with providers before those meetings. Where do I sit versus my competitor? How do I make sure and not just at a global level, but even at a service level right, labs and X-rays versus inpatient, inpatient versus outpatient. How do I ensure that I'm negotiating correctly when I measure myself against my competitors. And intelligence will enable our clients to finance [indiscernible] those questions rapidly. Now the -- sorry, back up one more slide. The third module or the third module in the PlanOptix software suite is optimization, network optimization. I mentioned earlier, we have unique capabilities, Google Dimitris is his name. You'll see he's one of the world's leading experts in robust optimization. Network -- optimizing networks is, in my opinion, one of the most valuable services that we can provide to a payer. We'll talk about the -- what that means in just a few moments. So market intelligence. I mentioned this layer sits on top of search. And it is a critical layer for payers who want to negotiate with providers or just simply want to understand in what markets -- how they -- where they're -- how they compare against their competitors, right? You can go down to an MSA level of detail. And you can see based on the negotiated pricing that they have with providers, how they're positioned, where they're strong, where they're weak. So this is intelligent information that will help them position their business in the markets where they need to be stronger. This solution, as I said earlier, is scheduled for release in a few months. Next, optimization. So again, core and native to who we are as a data science team with expertise in robust optimization. This need for payers to better understand how to curate their networks using mathematics. This is not the typical way that networks have been constructed in the past, but this solution will enable a carrier or a payer to not only understand where they are positioned in the market, but also compare themselves or help them curate these networks that are very much tailored their customers' needs. So if a payer has a customer that says, I need to be more competitive in a particular market, they can do that with our software. They can actually help curate that market and help them see who's in, who's out, in order to meet the financial objectives. We're very excited about the opportunity that this provides our payer clients to, in seconds, do something that would have taken days, weeks or may never have been done prior to our software solution. Now where are we at so far with PlanOptix? We have ingested data on over 70 payers, and we can ingest data on a payer within a couple of days. We only stopped there just to focus on our -- the initial release, but we have included all of the national major carriers as well as many of the regional ones as well. We've also enriched the data in a way that only MultiPlan can. So as an example of that, MultiPlan has the largest independent network in the country of 1.3 million providers. Understanding as the MRF data comes in, in a very messy way with NPIs and how providers some files have NPIs, others have tax ID, how all that make -- how to make sense of all that and how to know which providers are linked to each other, are part of the same doctors group. It's a very, very difficult thing to do, but we can do that at MultiPlan because of our data assets, particularly around network. We've also enriched the data with other assets such as the Medicare rates, which, again, we have core competence in. So to be able to measure for our clients the rating and put it in context and help it make sense is very unique for us. We are extremely excited about the PlanOptix software suite. And as you've heard before, this is a core part of our growth strategy as we move forward. Now the second product in our Data & Decision Science solution suite that we'll talk about today is BenInsights. So BenInsights is a solution that has been in the market now for roughly 8 years is on Gen 6 of that software release. And BenInsights is essentially a data ingestion warehouse and business intelligence platform. We connect to 160 payers, receiving data feeds. We also collect Rx data and we can put that data in context for our customers. We deliver analytics in 3 ways -- descriptive analytics. So these are reports. We have over 200 standard reports that are delivered to our clients, customizable dashboards and an ad hoc report generator, which enables our customers to create their own content on the data. We also deliver predictive analytics with risk scores that again, all of the competitors in this space, this area here BenInsights are generally buying those risk scores from a third party. And we build our own. Those are, again, native capabilities that we have. So we have individual risk scores. We have group risk scores. We have a musculoskeletal risk score, which I'll talk about a little bit later, pregnancy risk score and more to come in that area. We also deliver prescriptive analytics. You'll hear about something called smart cards. I'll address that in a minute in more detail, but we can deliver with algorithms, we can identify where performance is not meeting expectations on a health plan and not only identify that underperformance, but we can actually recommend prescriptive actions to make changes. So BenInsights provides a holistic view of the planned performance, and it does so at the plan sponsor level. We can also aggregate several plan sponsors into a block of business for a broker or consultant. We can also roll an entire block of business together for a payer or a TPA, right, and help them understand how their entire block is performing. So BenInsights is a mature product that has been in the market. It's a market-leading solution in this space. So the third solution that we'll talk about today in our data and decision science service line is risk analytics and insights. We're really excited about the future of where this particular suite will go under the MultiPlan umbrella. You'll hear me talk about this in a few minutes. But Jim mentioned it earlier, right, payer customers have been asking for more intelligent solutions in this space for a long time. And again, the combination of our 2 companies will enable us to not only deliver to those customers who were asking for more solutions in this space, but also give us the opportunity to really do some innovative things around Medicare Advantage and other areas of risk predictive modeling. So a little more detail. Individual risk scores. We have an individual risk score that has been in the market now for just over 5 years. And my partner published a research paper on this topic, how do we use claims data to predict cost over the next 12 months. So we do that now on every single member that flows through our pipes. We make a prediction on how much they're likely to cost the health plan, and not only a prediction on cost, but also what is the dominant feature driving that cost right? So I can take claims of anybody in this room, if I have anywhere from a few months to a few years of claims, predict what you're likely to cost the health plan in the next 12 months and also indicate why that is. If I were to predict, you're going to be a large claimant, why is that? What's going on in those -- in your claims to help us understand what product or solution could offset that risk. So that's our individual risk scores. Our group risk scores allow us to -- regardless of individuals being right or wrong at a particular individual, what we want to get right is the cost of the group as a whole. This is really important when you're talking to plan sponsors or to brokers and consultants or third-party administrators that are guiding their self-insured clients into a rate structure, a premium structure, that -- because once they set those premiums for the year, they're set, right? You can't go back to employees and change the rates in the middle of the plan year. So getting that right at the group level is extremely important. So we have a risk model that will predict the cost of the population over the next 12 months. We then have a musculoskeletal risk model, which predicts who is likely to have a knee, hip, back or shoulder surgery in the next 12 months. Extremely valuable. Many of you have seen these MSK companies that are doing digital physical therapy now and the valuations of those companies have just been through the roof. Those companies will perform better if they knew who to target in the population. Our risk models can help identify who's likely to need that service, who is likely to have a surgery in the next 12 months. And then finally, our high-risk pregnancy model, which now, as early as the third month of pregnancy, can predict which pregnancy is likely to end as a high-risk pregnancy. And again, for the right solution to offset that risk, it's extremely important to get in front of that. And I'll circle back to a comment I made earlier, why does all this matter in the MultiPlan universe. Well, payers have been asking for these solutions. They're trying to get in front of the risk as early as possible, right? It's not enough to be made aware of the risk once it has become a high risk. What they're looking for is solutions that can help them see the risk long before it has progressed into an advanced stage. So deploying these risk models, along with others that are underway right now, Medicare Advantage risk models, other chronic condition risk models which we'll be talking about in future days, we're extremely excited about how our predictive analytics can help support the payer needs at MultiPlan. In this product line, we'll also have digital underwriting and a few other solutions, downmarket client analytics. Payer clients have told us, look, we do a great job servicing the top 10% of our largest customers, but it's difficult for us to provide that same level of servicing down below that. And so we are automating many of the analytics around what to go talk to those clients about, what products and solutions can help offset the risk and doing so in a highly algorithmic way. So the final product suite that we'll talk about today in our Data & Decision Science service line is our supplemental insurance suite of solutions. Now just in 3 years since we launched our services into the supplemental industry, we now are engaged with 6 of the top 10 supplemental carriers with -- when you measure by in-force premium. Now what are we doing for these companies? Well, the first thing we do is we help them pay more claims. For many of you, you're probably saying that doesn't sound right. right? Why would a carrier want to pay more claims? Well, the reality is in this particular section of the market, the supplemental industry, they have received an immense pressure to increase their loss ratios. In many cases, their loss rates are below state-mandated levels because people just forget they bought these policies. So they don't file claims. So what do we do? The carriers in this space have a very difficult time receiving claims data because oftentimes, they compete with their major medical carriers. And so they need somebody that's third party to receive the data, and that's what we do. We have also built algorithms that connect the claims data to the policies. So for instance, if a carrier -- a supplemental carrier is selling a hospital indemnity policy or a cancer policy or a critical illness policy, we have digitized connecting which claims would trigger a payout under these policies. And by the way, they're different for every carrier, right? They all have their own set of their own algorithm on what gets paid and what doesn't get paid. So by digitizing that process, when we get a claims file in, which we receive on a monthly basis, we can instantly identify who is eligible for reimbursement under that policy. So I had the privilege of receiving a phone call from one of our clients in this space. And he said, look, I can't send this to you, but I want you to listen to it. And so I listened to this call that he received. And it was a call from an individual who have recently lost his wife. And he was calling the customer service line of this supplemental carrier. And he was trying to understand why did I just see this deposit in my checking account from the supplemental carrier. So he called up the customer service agent and she, of course, said, I'm sorry for your loss. And he very calmly said, I've already been paid for the disability claim, but I've seen this large deposit, I just want to better understand if a mistake was made, and I was overpaid. So the customer service agent asked him to wait for just a moment. She goes into the system and comes back, letting him know, it's not a mistake. The service that we have -- that has been deployed on your -- for your employer, we're monitoring these claims data. You signed up for it. You probably have forgotten. It's okay. You signed up for this. We identified a claim against the critical illness policy, and we just paid it, right? It was a $35,000 payment that showed up without having to file a claim. And it was for 30 seconds, I just heard silence and then sniffling, right? This was at a terrible time in this person's life. And my friend who was saying, I need you to hear this call, he said, this was your technology that enabled us to do this. And it was just a really powerful moment. I encouraged him to tell a CEO to get $8.5 million and go buy a Super Bowl commercial because this is the one that needs to be out in the public eye. But -- so in addition to our ability to support claiming in the supplemental industry, we're also helping increase sales in that industry. So how do we do that? So let's say we receive a census file from a carrier on a new customer that they're trying to win. And all we get in a census file is generally the age, the gender and the ZIP code, and it might have 10,000 individuals on that census file. But with just those 3 data points, we can profile the risk of that population. We can estimate how many cancer cases are likely to occur. How many emergency room visits, how many critical illness cases are likely to occur. So now the carrier can say to the employer, we have customized the proposal that we believe fits the profile of your group best. So we're not selling products just to sell products. We're selling products that are highly curated to the risk profile of that population. So we have software now. You can just drop in a census file. Within 5 seconds, it profiles the risk, and then it matches it to the selection of policies that are offered. Those are our sales or upsell solutions in the supplemental -- in the supplemental space. So it's been my privilege to introduce you to Benefits Science. More importantly, our Data & Decision Science service line. We are excited. You'll hear -- you've heard a lot about this already. You'll hear more about it in the coming weeks and months. And we believe that MultiPlan's rich 40-year history of establishing customer relationships, its track record for having deep, deep connectivity into the payer solutions, combined with the data science assets and product portfolio that Benefits Science brings to the table, helps position this company in an incredible way, in a unique way as data science and AI really becomes a bigger and bigger part of the story as the health care industry shifts that direction. Thank you very much.

Thank you.

Okay. We are to that point in the agenda where we will -- we've invited the sales leadership of the company, the folks behind our customer and our client relationships to have a chance to share their perspectives with you. We'll have time at the end for a few Q&A questions before we move on to Jim's financial perspective. But before we get started, why don't -- I let the team introduce themselves to you. So Monica?

Sure. Good morning. I'm Monica Armstrong. I'm a Senior Vice President of our National Accounts and I'm a 20-year employee of MultiPlan.

Good morning. I'm Andrew Cone. I am Senior Vice President and Chief Revenue Officer. I've been with MultiPlan 2 years.

Good morning. My name is Jacqueline Kienzle, and I'm Senior Vice President of National Accounts, and I've been with MultiPlan for over 20 years.

Yes. Good morning, everyone. I'm Mel Madarang, Senior Vice President of National Accounts specific to our Blue market, and I have also been with the company for 20 years.

Michael Battistoni. I represent the TPA segment for sales and account management, and I've been here 10 months.

Okay. So we have all the market segments represented. And let's start -- let's start with a question. Why is -- Monica, you start? Why is MultiPlan a market leader? And what differentiates us in the market in the eyes of the customer?

As you've heard today, I think there's many ways that we're differentiated in the market. But if I had to choose, I would say it's our breadth of services and the footprint we have in the market today, which we began over 40 years ago. We work with over 700 players. We touch 0.5 billion claims annually and we span all market segments. But what I want to talk to you is really about the national customer perspective and tell you what's important to them. We are able to customize solutions at speed and scale for them, which sounds simple, but it's not an easy feat. As you have heard Michael Kim speak to you today, we are deeply embedded in their processing environments and in their claims platforms. And in the national carrier space, it's not just one claims platform, it's multiple claims platforms. And you probably heard Dale say, if you know a payer, you've seen 1 payer, you've seen 1 payer. I will take it a step further and say, if you see 1 claims platform, you have seen 1 claims platform. These are large and complex systems, and we have been working with them for a very long time. So our ability to handle that complexity and accommodate the customization is very difficult, but we've been doing it for a long time, and we think it's practically impossible to replicate. And that's honestly one of the reasons we're the market leader today.

So I think I'll add on a little bit what Monica said. What's -- what you hear from Monica is how foundational the components are in place for us to do what we do on a daily basis. But all markets are different, right? Nationals are different from the Blues. The Blues are different from the regions, regions are different from PPAs. Having that foundation in place, and as you watch Michael Kim, go through that, I don't think people fully appreciate that. And as we're starting to move into different things and different capabilities, what you see is there's a big, big deep breadth. That breadth, if you would, has allowed us to create very tight relationships inside of those markets. And those markets now look to us. They look to us in terms of, hey, can you help us do these different things because we can't or we don't have the expertise and so forth. So I think what it is, is flexibility. It really is that flexibility. And I think being able to scale is really fascinating. The BST situation, when we talk a little bit further about it, is a great example that being able to make data actionable analytical is going to be really very important to us.

Okay. Second question. For your market segment, right, for your market segment, where do you see the greatest opportunity? And where do you want to focus the most over the -- in the short run and over the next few years? What are your customers telling you? Mike, why don't you start?

Yes. In my segment, one of the biggest themes right now is using data and data science to improve health care outcomes. So the real challenge and the goal is to get it down to, as Stephen said, the individual plan member level. You can get -- the data has to be -- you have to aggregate medical, pharmacy, benefits data, but you also have to have it real time. That's always been the challenge, and getting it as quickly as possible to do something about it. Because you can aggregate it and you can make sense of it, but if you can't prescribe things to change outcomes, that's when you really start adding the value. And that's where BST really comes in to help us with a lot of our products. So what we're doing, and as Andrea said, the -- with HST's employer in the box concept, we can bring that together with a member engagement where we give them tools like the mobile app to help them navigate their health care, give them help when they specifically need it based on a condition or a set of situations. And then they can ultimately make the right decision for them for getting the right care and saving them money. And so we're actively now putting those 2 things together, and it's really resonating in the market.

I agree with Mike. The demand for member-centric care is being driven by the self-funded employer. And that segment of the market is the lion's share of a national carriers business. So they're looking for innovations from us to help them be more competitive. And at the end of the day, all of our channels are vying to meet the needs of the employer, and that employer comes in all sizes and has different needs and goals that change with the economy and the culture.

Yes, I agree. And I think probably -- and we hit on this a little bit earlier in Dale's presentation and Jim's but -- and this really isn't specific to my segment, it probably is something that my colleagues and I are all thinking about and we are excited about. But it's really the ability or the opportunity for our services in the Medicare Advantage space. So MultiPlan has a footprint in that space. We are looking to really expand that footprint. And Sean talked about it earlier. We have 500 million claims that we process annually. 134 million of those claims belong to the Medicare Advantage space. And that's through our core products, like payment integrity, revenue integrity through the acquisition of Discovery Health Partners. And so you add BST and their products and services to that and it allows us, from a segment and a sales perspective, to really go out and aggressively pursue clients and opportunities, and it will take us well along that path in terms of our goal to expand our footprint.

I think what's kind of intriguing is you listened to all the different opportunities that exist out in the marketplace today, what dominates just about every conversation that we have with the payer regardless of what type of a payer they are is cost pressures. The cost pressures are very notable, right? So as you think about that, now let's think about the services that MultiPlan has. The legacy services, which Dale referenced earlier today, 23 of those solutions very specific goal in the medical cost management side of it. Now with BST and also with our friends at ECHO, we're not going to have additional solutions, right? We're going to these 13 solutions. If you think about a health plan or a payer specifically, think about the inventory is kind of claims. Think about the intelligence is really the other side of it, right, if you would, that's that piece that allows them to bring it together. Having the ability to bring all those together allows us to go full scope with the client. So we're not just kind of [ tie it in ] there. So when we think about this, these opportunities now allow us to do bundling. And the bundling is really important. We already have the relationships. Those relationships are already deep within. But being inside of an organization, not only inside of, if you would, the inventory side of it -- but being in the business intelligence side of it, it now allows them to be actually [indiscernible]

It's a big exhale.

Someone's mic is on.

Well, it's -- normally, in fact, that's what it was working against me. I tend to [indiscernible] a little bit more, but in this environment, you want to just...

Okay. 700 payer relationships, long and trusted relationships that, in some cases, span decades. We often brag about the relationships that we have and our customers have strong and vibrant they are. Tell the audience about the nature of your -- the interaction with your customers and the cadence of how you are plugged into their activities.

Sure. I'll start with that one. Look, we've said this all day, we're truly embedded, especially with our large national customers. And earlier or 2 seconds ago, I just talked to you about claims platforms and processing environment. So clearly, in the IT segment, we are extremely engaged. But it goes past that. We are working with their customer service teams. We work with their network development teams. I think Sean mentioned earlier, we sit with their health economics team and we talk about trends and the analytics to understand what's going on in their world. So really, our cadence is multifaceted. We often talk to our customers on a daily basis. Those conversations are truly full spectrum. They're calling and asking about cost and billing trends, or it could be something around regulations, NSA is the one that comes to top of mind. Really, if something is going on in the health care industry, they're picking up the phone and calling us. I can't -- and I really want you guys to listen to this part. I can't emphasize it enough. It's truly a consultative relationship we have. We are seen as a partner, not a vendor. We actually think of ourselves as part of their organization. Their lens is our lens. And we determine our success by giving them value through their lens. That's how we've earned their trust for 40-plus years, and it's why they continue to come to us every day to help them solve problems.

And I've been in this business for over 20 years, and this is another example, by the way, of what differentiates us. No other -- as Monica alluded to, no other vendor can match the tenure of our experience with our customers, let alone the knowledge that we have gained of their organization over the years.

Yes, I agree. And I think Monica and Jacqueline touched on some important points and we're talking to our clients and the cadence and the delivery of our messages to our clients. And I think one thing that we always forget to emphasize what is important is that MultiPlan is an independent company, right? So MultiPlan is an independent company. You couple that with the breadth of the channels that we touch from employers to plan sponsors, national payers, regional payers, third-party administrators, and that really gives us a very unique vantage point with our clients. It brings a unique perspective. It brings additional insights that they look for. And so when we're out there or when I'm out there meeting with the client, it's not Mel saying, hey, client, this is how awesome we did for you last quarter. It's, let me listen to what your pain points are, let me listen to the complexities of your organization and let's solve a solution for it.

So I think when you just got them hearing, sometimes it's an overused term, but it's client intimacy, right? And this organization, having been from the outside looking in 2 years ago, it always struck me when I hear about MultiPlan and you hear about how long these relationships have been. When I got here, I was even more surprised not only are the relationships really deep, but they're incredibly well -- they're well done, right? We consistently perform for our clients. And I think that's really interesting. As you watch the thought leadership that has come out of here, the innovation now as you start to think about some of the things that you just heard today, this is really a very transformative period of time for this organization, being able to build, and I was reflecting on the comment that I heard earlier today, how are you guys going to get across into the different things. We have relationships that are so deep in that side of that organization from the high C suite all the way down into the functional areas. This allows us to do that. Those have those kind of things to extend, right? People are looking for more things from us as we start to go into the marketplace. So it's -- in my mind, it isn't that far of a carrier to do this. But I think what you're hearing is that what we've done historically allows us and enables us to have that right to go out and to do more things. So we're -- obviously, we're pretty excited about where we can go in the future.

One of the questions that Jim and I get asked a lot at conferences is, what does MultiPlan do that sophisticated health plans, the larger plans, in particular, can't do themselves. And look, they have sophisticated IT, they have sophisticated talent. They're smart companies. How do the customers think through the choice between tackling a new challenge themselves and seeking MultiPlan's help? And Mike, why don't you take this because for those of you in the audience, Mike comes from a payer with 20 years on the payer side. I think he'd be a great voice to hear.

Sure. Yes. So when you talk about -- and I've been working with these guys a long time and have made it really easy to come because I could see what they could do. So when a company has something that comes for, they have years of road maps, right, in IT and constraints and projects, that's a constant list of prioritization, right? And what we do and the medical cost issues that arise, by definition, are emerging, right, or regulations change. And so then the customer -- the company has to look at that and say, do I change my road map? These things are historically pretty hard to steer, or do we look to someone else? And like you said, these embedded relationships that we have usually take us down a path where by the time they're identifying the issue, we've identified the issue, right? And maybe we're already working on a solution. So with the trust and all the years of experience they have, they can now say, well, this is a build or buy decision, right? Do I want to take my own resources and build a solution, or do I want to look to MultiPlan to help solve that for me? When we look at it at a project, we look at it from a lens that a lot of these issues translate across a wide swath of customers. So we can say -- we can come in with a solution that can sometimes even be cheaper than they could do it, right? And speed to market, obviously, is key as well. So a good example of that, again, was the no surprises example. This transformed how a big chunk of customers' claims were paid, administered, dealing with the government, arbitrators, all that stuff, not just technology, right? So it's the technology, of course, but it's the people and the processes that we have to do and get it across the finish line for an effective date that was not negotiable. And these guys did it in a way that was class-leading and delivered it on time and made it so it could hook right into customers' existing feeds. Of course, companies do their own things. It's core competencies, right? And even in those situations, we tend to be able to find ways to add value to their core systems whether it be just amending their data or adding insights in certain other ways that we just keep that relationship getting deeper and deeper and that allows us to grow.

Okay. One final question. We've talked a lot today about our growth plan and how it creates several new opportunities to work with customers across a wide range of channels. What opportunities are you most excited about for your segment and your customers? And what is your expectation about how these products will be received by customers in the market?

Yes. I'll jump in on this one. Our customers are telling us that they want more from us. As Dale said, our challenge has never been about demand. It's about delivering and developing innovative products quickly to meet the needs of the payer. It's honestly hard for me to pick just one product that I would look at in our new solution set. But I'm thinking Data & Decision Science, our PlanOptix software suite, in particular, will help our customers turn a tedious market requirement into a strategic tool that they can use for their business. And I'm also excited about Pro Pricer because it leverages all of our tools in a streamlined and flexible way, and that's particularly important for our large customers that have a large and varied customer base.

For the TPAs, I would say, I would say the same thing with a twist, right? So for me, it's the BenInsights like I talked about before, and being able to marry that with the HST employer in a box solution, that's really hugely transformational for me. And then in terms of Pro Pricer, that gives my segment a really easy-to-explain, class-leading way to get to the best price on their out-of-network claims and not sacrifice customer service by doing it. So those are the 2 things. And then if I could have a third, it is ECHO, right? It is brand new, but in the TPA market space, there's a huge unmet need there and the phones are ringing.

I am going to go with risk analytics as a game changer. And it's funny, as I heard my colleagues present tonight -- today, I realized, and I forgot some of the story. We have been talking to them about this entire time. As we said, BST was not an accident. It was the perfect complement at the exact right time because our clients have already said to us, if you can get to it faster so we can intervene and help and create a positive outcome for our member, then we are coming to you to get this done. So the combination of the data we already have in-house, which Sean and Michael talked to, and our clients are already verbally asking us to connect the dots is what's getting me very excited, clearly.

Yes, I agree. I mean I'll say it BST. I think you guys kind of already guessed that by now. But look, the company is humming. We're excited. You hear it in enthusiasm from Dale and Jim. And as a sales leadership team, it goes downwards, right? We are all very excited. We're stoked about the opportunity to sell these services. And for starters, as Sean pointed out earlier, we have so much an enormous amount of untapped opportunity here in house. And so -- and I'll probably misquote him, but 3.5x the opportunity to tap into that, that's really exciting from an organizational perspective. And our clients are calling. They want the innovation. And don't forget all of the other services that MultiPlan has and we've built over the last 40 years, those are just going to get better. They're going to get better with the acquisition of BST. The clients are calling. We're challenged to go out and execute, and I think we're positioned very well to do that.

I think I'm going to start out with ECHO. ECHO, in our mind, is really exciting in terms of the TPA markets and the regionals for a variety of reasons. We've had a nice set of offerings down there before, but this actually rounds that offering out, makes it a lot more comprehensive. Again, the bundle piece is something that's incredibly important, being able to be across the whole backbone, if you would, of these organizations is incredibly important. And it's something that -- we take a look at the long tail in this market, there's a lot of opportunity out there, allows us to diversify. You heard Dale talk about today, not only diversifying our client base, right, but we're diversifying our product sets. So those things, in our minds, become incredibly important. But I think there's another theme here, but all the solutions are important to us. But what you're hearing is this is a product or a company which is very product-centric. That's not necessarily how people recognized us in the past. We're making investments. We're doing things that our clients are actually going, oh my gosh, this is different, right? This isn't what we thought MultiPlan to be. And I think that's really important. So when we look at the BST acquisition, so important. It's transformative to our business, but it's transformative in terms of how people perceive us in the marketplace. And when you look at that ability to go across the full scope of all of our different client segments and what they mean to us, that makes a difference. And we see it right now. Mike just referenced it. Since the ECHO announcement, it's been really interesting just to watch how things have changed in the TPA markets. In the regional markets, we're getting calls that we've just never had before. We have 115 business development professionals that are in the marketplace right now. So when Dale asked, are we excited? Excited isn't even the right word. We feel like we have a right to win. We feel that we've created that right to win over the years because of our performance level, our service levels and all those good things that go along with it. We've created reputational acknowledgment around, hey, these guys are thought leaders around things. The NSA is a great example of how that came to be. Arguably one of the most complex piece of legislation that's ever been issued, right? We took the time to develop the content to understand it, get down at the legislative level to really understand what it is, then go back and listen to our clients. And our clients are actually really smart, right, but they need some help. And so what was interesting, we had this conversation. This conversation allowed us to understand how to create something that we can deliver to them that was going to be meaningful, right? This is exactly what you see with all these different solutions. It's in our DNA. It's how we think about things. It's how we want to deliver, how we want to over-deliver for it. So when you ask me if we're excited, Dale, I think it would be an understatement. I think we're a little excited.

I think it's obvious, right? It's obvious from the presentations and our discussion that the company is beyond enthused about having BST as part of the MultiPlan family. ECHO and the partnership with ECHO is a week old. I'm not asking you to announce your first contract with -- for the ECHO partnership today. But I would be curious to see -- to hear what has the market reaction been to the ECHO announcement, particularly among the TPAs and the regional insurers.

I think Andrew said, it rounds out an offering. It's a product we haven't been able to offer in the marketplace. That's a needed product, right? In this segment, these types of solutions, right, being able to pay providers electronically most of the time is a huge efficiency for them. And the market is fragmented. And our ability to have these existing relationships, they're very interested, right? They want to know what we're doing. And the timing seems right, right? It's -- a lot of people are shopping for this stuff.

I'll add to that, Mike. I mean it's really clear there's some things from a competitive point of view. It puts us above par, right? We already have an excellent network. We have a lot of those things that we can go with, but payments is certainly going to be something, I think, is just going to be very transformative for us.

Okay. So let's -- I think we have a few minutes for Q&A. With the caveat, with the caveat, as you well know, we don't talk specifically about our customers. But I think we have a few minutes, if there's any questions in the audience before we turn to Jim for his financial presentation. Any questions for the panel?

Yes. Can you hear me?

Yes.

This is Francis from [ TKO Capital ]. This is very clear in terms of the comprehensive solutions, how there's a lot of new products coming that's requested by clients and how it's deeply embedded. We hear you. But can you just help me understand a little bit more, when I try to reconcile with the reduced rates from the contract renewals, when it's so crucial to large clients solutions on our platform, what are some of the factors and considerations that's not having the rates be higher, at least the same or higher, but it actually has been reduced. And what do you see upcoming in terms of contract negotiations in terms of rates going forward for either of your small or medium-sized customers?

Look, let me take that, right, because that's a question that we've been asked in terms of the contract renewals with our larger customers, all of which are multiyear. Look, we've been and we've said, it's a -- we're a big ticket item, right? We're a big ticket item for many of our larger carriers. We're a big line item on their expense budget. And our -- the relationships that we have with our larger carriers, they don't want all the benefit to [ inure ] to us in terms of trend, in terms of utilization. So those relationships get reset. There's no change in scope or service, right? It's the rate for the service. And as we do and as we've done, we look at that, and we make the best decision we can, And then we look for ways to mitigate that by providing new services, by looking at ways to deepen our savings, by looking at ways to monetize more claims and create more value for our customers. So those are the things that make the real difference. We had a very narrow set of products. We have more products. And as you heard today, right? We have more products, more services to be able to offer our customers. In terms of the tail, and the long tail of customers. So when you get -- we have an incredibly long tail. Most of those relationships, they're not multiyear, they're neither -- they renew once a year on an annual basis, evergreen contracts that continue. And we're not concerned about the renewal of those contracts, that's never been an issue or a concern or worry for us.

Daniel Grosslight with Citi. Thanks for your perspective. It's very helpful to have the boots on the ground. So I do find it very helpful. I have a similar related question. And it's really in terms of the model, the revenue model, PSAV versus PEPM. That seems like at least in the TPA business, it's mostly PEPM based. Some of these newer products will likely be more SaaS-based or PEPM based. But I'm curious if you're hearing from your clients that they want to move away from PSAV to PEPM at all. And I guess related to that, is some of this pricing compression that you're seeing just a natural outgrowth of being based on the claims dollar amount, meaning while inflation -- medical inflation is going to be 6%, 7%. So I'm a big payer, MultiPlan didn't really do much to deserve the pay raise for that. I'm going to take that back now. So 2-parter, any kind of change in the PEPM versus PSAV dynamic into -- is this rate compression just a function of being based on percent of savings?

Let me start with the PEPM and then you can -- all of you can add to it. You're right, in the PEPM model that we see is largely on 2 products. It's our primary PPO, which historically has always been a PEPM model, and it's on our HST product. So you saw that with -- in the reporting that we give on a quarterly basis. You saw the increase in the PEPM largely because of HST. And that is a PEPM model. We'll continue to -- as we add BST products and product capabilities to our suite of products, those 2 will be largely -- planned Optics will be a license fee, risk scoring, BenInsights or all services that are based on per member per month or per employee per month. So you'll see -- not a shift in the sense of what we do today in our core, we're not anticipating a shift. But we'll see a shift in terms of as we add products and service and capability through the BST acquisition largely. It's more PEPM. But I'll let them speak to the question of are they seeing a shift in terms of what clients are asking relative to percentage of savings or PEPM on our core.

I think it certainly follows by channels, right? And I think it certainly follows by the product mix. PSAV is still -- it's a large part of what goes on inside of our markets today. It hasn't really, I don't think, changed that tremendously that much. But I think as the product mix evolves a little bit, we're going to see things. And Dale alluded to, with DHP we've seen a lot of changes in terms of that. The nice part about those, obviously, is those prices tend to be pretty static over a period of time because the contracts tend to be a little bit longer. Obviously, when we move into some of the BST, you have both subscription pricing as well as you're going to have -- you could have the PEPM both sides. I think we're going to see that mix evolve a little bit as we get into the marketplace. But I think the compression that we saw probably 1.5 years ago has certainly stabilized a lot.

I would just add because I'm going to take exception to say, I don't have any conversations to my carrier where they think we're not doing enough for them. The product and the suites and solutions that we offer, that's not in question or even part of our discussions, like I think we said earlier, they just continue to ask us to do more. And what we've done well over the years is we always augment. We're always moving and changing to meet their needs. And so -- with that said, I think Andrew answered the PSAV question, but we're excited. We have these multiyear contracts in place, and we're just looking forward.

Jeanne Cruz from New York Life. I just had a question about the size of the sales force, if you put it in context for us, turnover and plans for hiring and kind of separately, BST, I think, is going to be a separate product line. Will that have a separate sales force? Will it be integrated? Just give us a little color about that.

Sure. It's a great question. I think Andrew gave a number of nearly 100 -- 115 total sales and account management teams, right? So they're the face to the customer. And we have -- when you think about the different market segments, so if you think about the larger carrier relationships and the Blues, our relationships are there are long and in place. And the leadership team and their account management team are the face of the company and looking for ways to up-sell the products and services. BST will be our -- they're the face to the customer. They're responsible for selling all products and services. And Steve and his team will be the subject matter experts supporting them because they have the relationship with the client and the internal buyers, right? In terms of -- and the same rings true as you go downstream in market, both Andrew's team and who focuses on regional health plans and Mike's team who focuses on TPAs have a combination of sales executives who are hunting for new opportunities and leads and account managers who are looking for upsells or client managers who are looking for upsells within existing customers. And it's the combination of those 2 teams that achieve the best possible sales outcome. We have a separate sales force for HST, in particular, because that's a channel that goes to the retail, right? So that's -- they're not working directly with payers. They're working with brokers and consultants, and it's through that retail channel, and it's a different -- it's different, right? So from that perspective, that team is separate and focuses exclusively on brokers, exclusively on the benefits consultants. Now -- and her team, as an example, is she has responsibility for the Blue segment. The Blue segment is different, right? They have different rules. They have to be guided by the association and the association policies. They have different terminology, different vernacular, different strategies. But that's what her team does. She zeros in on only that. I'm sorry, turnover isn't a concern. I mean it's not a concern across the company. We've got incredible retention. We have 2,500 employees, [Indiscernible] our average tenure now 9 years. So turnover is not -- hasn't been a significant or a material issue for us. You take it at the end, Jeff? Okay. Perfect. Let me -- I think it's Jim's back.

All right. Thanks, Dale. I'm excited to wrap up our agenda today with a discussion of the financial picture. And I think it's going to touch on some of the questions that were just raised. So hopefully, we can help you. We're going to talk about '23 performance. We're going to talk about our growth drivers and the algorithms, if you will, for growth in the future. We'll talk about some of our savings performance, volume and rate, as well as a cash flow balance sheet, capital structure and how we think the company is going to look in a few years. So ultimately, we're going to wrap this up with why we think it's a strong case for investment in MultiPlan today. Before I dive into the presentation, I just want to reinforce a bunch of things that we've talked about today. First of all, from a financial perspective, 2023 is a reset year, okay? We've rebased our revenues, and we feel confident in our ability to deliver on the expectations this year. Further, that provides a base for growth into 2024. Second, our out of network -- our core out-of-network business has runway for growth, okay? And we'll talk about the way we get there, the algorithms. Third, strong demand for our new services, which you've heard very consistently throughout today. And we think that we are building a product pipeline that's going to continue to contribute going forward. Fourth, we generate a lot of cash flow. We're going to use that cash flow to optimize our capital structure and put ourselves in a position to have a very efficient refinancing in the next few years as our capital stack matures. And finally, I just want to reinforce that we're on a transformative path. This is not your grandparent's MultiPlan. This is a real company that's got real opportunity. That's why I showed up here, I'm very excited about it. I think you heard how excited the team is, how jazzed we are about the prospects in front of us. But as Dale said, we got to execute. And I think 5 years from now, we're going to be in a different position. The enterprise risks that everyone has been focused on over the last couple of years are dissipating. And it didn't take us long to pivot the company over the last 3, 4 quarters and start demonstrating some of the things that are the positive changes in our business. We think there's runway for growth in '24 and beyond. And simply put, we think the market is just under appreciating our story. And I back up here, okay. So -- that's our -- okay. Next, our financial model. You all know our financial model is pretty terrific. We have recurring and persistent revenues and our platform, as Michael and Sean have demonstrated, is highly scalable. As incremental volumes improve, we have operating leverage. So think about that, the next dollar that we put through our platform drops down, okay? And that gives us a lot of runway for additional investments. So we've got this uplift of operating scale. And further, when we add new products to our platform, it oftentimes doesn't require any implementation with our customers. It's like, would you like the service? Yes, well, we just turned it on for you. So there's a lot of opportunities like that. So the operating margins have a bias upwards as volumes increase as we scale the business. However, we're going to keep our EBITDA margins relatively static. Some questions earlier today, where is the EBITDA margins. They're not going to race up to the roof again and go back to where they once were. On the other hand, they're not going to rapidly decline either in our minds. And one of the reasons why is there's that push and pull. The uplift of the operating scale, but we want to reinvest back in the business and drive more revenue growth. So for the near term, we're going to kind of make the case that margins will be stable. They might bounce around a little bit, but they're not going in a direction one way or the other. And those margins are kind of best-in-class. For a long time, we were -- I did a run when I first joined -- and it was when we had 75% margins. And I think -- and we had the Bloomberg consultant do it for usit because it was independent, so every company over $1 billion in the public markets. And how many have margins over 50%. How many have margins over 60%? How many have margins over 70%? All of a sudden, we just became one of one. Now that's not necessarily the way to run the business going forward. We've got too many opportunities in front of us. So from a margin perspective, my message to this audience is we're going to try and keep it in that band. And if we're investing in the business like we're going to invest in BST, you're going to be pretty happy with that. Finally, our cash flow gives us a lot of strategic flexibility, as you all know. Okay. Let's talk about resetting that foundation that I just mentioned. As this reset year is a result of customer renewals, okay? Those are 3 larger contracts that we've described. So the good news is that gives us a lot of visibility for the next few years. We're not focused on those customer contract discussions. We're focused on new products. We're focused on executing. And it gives us visibility. And furthermore, good news is it makes us quite sharp in the marketplace. Sharp meaning against competitors, against in-sourcing, the reality is, is we're just -- we're really putting ourselves in a stronger position ironically by getting -- taking our rates down a little bit. But starting from Q4 of '22 annualized, essentially, this year is a year in which we use some of the growth in our core business and some of the new products that we're introducing, that's offsetting essentially the contract renewal pressures, okay? So we run pretty darn hard to stand still, but that's the foundation for the future. I'll talk about volume in a moment, but we stated on our Q1 call that utilization and volumes are normalizing, and we think that provides additional visibility to our 2023 guidance. On our Q1 call, we also said we feel like the first half is shaping up according to expectations. Q2 might be a little bit softer than Q1. This is what we said on our Q1 call. I'll talk about Q2 in a moment. And in the second half, we expect modest incremental growth. That's going to deliver our guidance for the year. So all in all, we feel very comfortable with our expectations. Let's talk about volumes. What we're displaying here is what we've been reporting over the last few quarters in terms of our medical charges process at top of the funnel, the identified savings yield, that's not a rate. That's our batting average, if you will, for every dollar of claims that comes in, how much savings can we generate. And so what you'll see is our batting average is going up. And then last, but not least is the savings. So at the top of the funnel, you see that a little bit of how volumes have gone up in Q4 and '21 in the first quarter of '22. That was essentially the Omicron surge. We've got a lot of COVID claims in that, a lot of COVID charge volume in that realm. In 2022, it dipped. We talked about the utilization headwinds that happened. It was a strange time last year. You saw it throughout the ecosystem. You saw it in the hospitals. You saw it with us. Ironically, the MLRs of the big carriers were coming down. because of the -- a little bit of the capacity constraints, but also just deferral of care. But those medical charges processed are starting to inch up, and you're seeing that activity starting to pick up a little bit. So that savings yield, we've done a really good job of taking that up over time. What that is, is Sean Crandell and Michael Kim, grinding out incremental improvements with our clients every single day, okay? That's the benefit of our platform, finding new opportunities, consultative selling in. If you do this, we can generate more savings. If you add this program, we can generate more savings. And so we're really good at that. That's a hallmark of our success. The output of these 2 categories, you see how the total savings identified potential savings has increased. And it -- there was a nature in the second half of last year. We've talked about that on our Q3 or Q4 call. It's starting to build up. Longer term -- excuse me, I'll back up here. As we stated on the Q1 call, we have not baked in any material changes in the volume environment to get to our guidance for the year. We lagged the market by 6 to 8 weeks on average. So we have our own unique SKU, if you will, because we're out of network versus the broader market. But what we have seen in recent weeks, I know many of the research analysts have been reporting on what's going on with United and Humana, et cetera, is consistent with what we talked about on the Q1 call. We are seeing capacity coming back in the system. We're seeing some of the more discretionary categories like ASC starting to return. So that's not a surprise to us per se. We just lag a little bit and we've got our own SKU. Francis, you mentioned this earlier. So let's talk about our percentage of savings as a -- revenues as a percentage of identified savings. You could call that our revenue yield or our rate. A reminder that 90% of our business is under that percentage of savings model. So this is an important indicator of our pricing yield. The chart shows that in late 2021 and early '22, our yield peaked. And returned to the mid-5 levels in the second half of 2022. And that was mix effects as we talked about on our Q3 call and some contract rate adjustments. So we kind of ended the year in the mid-5s. Q1 '23 showed the impact of our contract renewals, not the entire impact, but a large portion of the impact. That took our take rate down about 34 basis points. You might see a little bit more in Q2, but after that, we've got the full effects of the contract renewals and our take rate. And I think the message that we'd like to impress upon you is -- we think this is going to normalize, and it's going to be driven much more by mix going forward than it is any shoe that's going to drop with respect to contract renewals, et cetera. We're sharper in the marketplace. We've got more products, we've got more solutions. So we think this is beginning to stabilize. That's good for our business. We are here today to reaffirm our core guidance for 2023. As a result in the confidence in the state of the union at this juncture, reaffirming guidance for Q2 and full year 2023. Just very specifically, I'll note that this does not include any impact of the BST acquisition. So we're going to kind of separate that right now. So we're reaffirming guidance. Q2. We are not completely done, but we're well along in the quarter. And based on what we know today, our revenues are likely to land at the top end of our guidance range. Now for our beloved research analysts in the room, this is not going to be a Q2 earnings call. So in the Q&A, I'm hoping you can just accept the fact that we're saying, hey, we're landing at the top end of our range on revenues, we still have to grind through our expenses, all that stuff, but fundamentally we feel very good about the quarter. As it pertains to the rest of the year, what we will do in August is update the annual guidance with the Q2 numbers. We'll provide more color on Q2 about the results and the environment, what we're seeing, what's doing well, what's not doing well, all that stuff. And then we'll provide an updated second half view. With that updated second half view, wherever we land, we'll probably present a much tighter range like we've done in the past and give you a much fuller picture. But we wanted to, at this stage, it felt a little silly not to be able to tell you where we were on Q2. Further, on our August earnings call, we'll break out BST. So we want you to be able to see what we promised at the beginning of the year, how that lands, what BST looks like, and you can develop your own conclusions of the whole. So that's 2023. Let's turn to the longer term. All right. We're going to break this into 2 things. The core out-of-network business, and then we're going to look at the kind of the growth algorithm of the whole. So we define our core out-of-network business as the network and analytics service line with one exception. We're just going to carve out HST, which has different growth dynamics, and it's a component of our overall growth. All in, that's about 85% of our overall revenue picture. It's important to note that there's multiple factors that contribute to our out-of-network point of view, some of which are market driven, some of which are specific to MultiPlan. So let's break down the components that are market driven. These factors net to a positive trend. So there's multiple factors, but they net to a positive trend. An overwhelming driver of market growth in our business is medical cost inflation. Long term, we're projecting 4% to 5% in this example, which is probably conservative given what we're seeing in the market today, and particularly going into 2024. Add to that 1% to 2% member growth which is driven by market share gains of our customer base. These are aggregators of lives. But also that trend that's been mentioned a few times today, ASO is growing on a relative basis, and we're very exposed to the ASO market. That's a good thing. Whether it's TPAs or the large platforms, we're very well positioned. These 2 components combined are more than enough to offset any headwinds from in-network shift of providers or member behavior towards in-network. Very common question, is everybody going in network? The answer is no. We haven't seen it. You've asked this every quarter that we'll answer it every quarter. We see shifts along the way. It is on the margins. It's on the margins. It is -- there is trends towards in-net that were on the margins. And behavior shifted a little bit more towards in-network late last year, but it's not an overwhelming wave over the top of the bow of our ship. And by the way, medical cost inflation, health plan growth more than offset that. So those are the market factors that are out there. They net to a positive. Let's throw it over the company specific factors. We have -- as I mentioned before, we have this track record of continuing to grind out more savings and productivity enhancement solution enhancements. In this example, we mapped out 3% to 4%. I just told you a minute ago, it was 8% compounded over the last few years. We're not signing up for that. We're going to -- we think 3% or 4% is very achievable. And we believe this is going to be more than enough to overcome any volume pricing headwinds from our larger customers. So think about what we just mentioned. Our larger customers don't let us get all that gravy that we see on the left side if our prices were static. They're not going to give us the full benefit of medical cost inflation and member growth, they're just not. So we give up a little bit. But in the end, it nets to a positive trend. And so we see this as a mid-single-digit growth, 4% to 5% growth rate in our core out-of-network services over time that will require continued investment, which you've seen from us today. And we have to enhance our services and we have to stay nimble and pivot our business, but we can safely feel good about delivering this over the long term. So let's tie this into the longer-term growth algorithm of the entire organization. Long term, we see 8% to 10% growth opportunity on a consolidated basis. This is both revenue and EBITDA. So I talked about the margins being relatively static. So that is what we're signing up for. And in the core, we've got 4% to 5% in our existing services. We've got another 50 to 75 basis points of our payment revenue integrity, i.e. the growth in that small segment is adding 50 to 75 basis points to our entire consolidated growth rate. HST is going to expect to do even better, 100 to 125 basis points as we bring out new products, grow the platform. So that's about 6% right there. But fueling further growth is our new services, which are pretty small right now. Our new data and decision service line, which is BST, is expected to add 200 to 250 basis points. That's really kind of tying together with what Dale had talked about, what we're expecting out of BST over time. And payments, which is 0 today. We think we can add 75 to 100 basis points to our overall growth rate. So what we're talking about is 8% to 10%, but we're not stopping there. Andrea and the team, Steve at BST, Sean Crandell, we're trying to pile more products beyond that and later take more growth on top of it. But we feel very comfortable describing our long-term growth algorithm in the following way. So what does that do to us? Our revenue mix was biased towards out-of-network cost management, approximately 85% of our revenues over time without any additional acquisitions. So we're not piling in new products inorganically. Over time, we think we can shift that to down to 70%. That is just the expected growth of the portfolio we have today. And our percentage of savings model, we're not seeing a shift away from it. But from a mix perspective, most of the stuff that we're adding on now is going to be either Software as a Service. It could be a kind of a per claim or a percentage of payment or it's PEPM. And so we think that, that can be 25% of our business over time versus 10% today. So we think that there's a mix shift going on here, which is quite attractive, but we're not disavowing any of the strength of our core model. It's just that we're getting bigger and diversifying. Let's talk about investments. Our growth initiatives require capital. And you saw that this year. We've stated that organically investing in the business is our highest priority use of capital. We view it as fundamental to supporting our growth and those initiatives are a major driver in the $20 million to $25 million of increase in capital expenditures in '23 that we've highlighted. So that's the green bar. In the future, we expect to maintain this high level of investment on a dollar basis. This year's growth investments that we complete will be refreshed and replaced with new growth investments. So that green bar is going to consistently kind of turn over, if you will, and we think that on a dollar basis, it may grow a little bit over time, but generally speaking, it's not going to all of a sudden go up to $200 million. We think we can comfortably support our business. There's a lot of high-return investment opportunities that we can -- these are in the $1 million, $5 million range, not in the $50 million, $100 million range. And as our revenues grow, the percentage of revenues that our capital expenditures represent is going to shrink a little bit over time. All right, cash generation, something we love. Our business model generates high levels of cash flow, as you all know. And when we talk about free cash flow, it is after interest expense, it's after taxes, it's after capital expenditures. It is bottom line net-net-net, free cash flow. And over the last couple of years, it was a really high percentage of our revenues, high 20s. As our revenues declined in 2023 and our interest in capital commitments grew a bit, our free cash flow conversion softened to 11% to 12% of revenues, which is still admirable, not what we once were. We think with the -- this is where scale comes in. As we start growing our revenues again, we pay down some debt. and reduce our interest burden, we think we're going to be able to bring our free cash flow generation as a percentage of revenues back up. So maybe not returning to the glory of 2021, which is like Olympic podium. But for sure, we're going to be best-in-class going forward. Capital allocation. We've maintained a very consistent set of priorities over time. Invest in the business, use M&A as a value-enhancing component of our strategy. We've done Snap-on deals. Our last 3 deals were all kind of $150 million-ish. That's a signal. Those work really well. And then next, debt pay down and share buyback. To date -- well, to date, in the last 3 quarters, if you will, we've deployed $350 million of capital actively. In Q4 of '22 and Q1, we used $200 million to pay down debt at a discount, that was $274 million of total debt repayment. In May, we used $140 million of cash on our balance sheet to finance the cash portion of the acquisition of BST. Now if you -- you know that BST folks took stock, they wanted direct or actively ask if they could take -- get all stock, now that the stock has moved up a little bit, we can't do that. I have to go to the board, Steve, sorry. But -- and anyway, it's worked out pretty well. So we used $140 million of cash. And we did a little bit of share repurchase, as you heard on our Q1 earnings call through May 4 or 5, we have used about $9 million of share repurchase. So going forward, how is this all going to work? A high priority will be to continue to invest in the business. You've heard that. But that's going to be a relatively small percentage of our cash flow. The main priority near term is debt retirement. And we've been clear to the agencies. We've been clear to all of you at conferences that, that retirement is pretty important. We'll continue to look at acquisitions, but there'll be a lower priority for the next year or so. One of the reasons why is not because there's not opportunities out there, we want to get the BST integration right. We want to focus on these new products. It's interesting. What keeps me up at night is not some of the things that you might think like customer renewals or leverage, it's actually executing against the plan. That's what keeps me up at night. But -- so we're going to focus on debt retirement in the near term. And share repurchase is on the table. We said we'd be opportunistic, but it's not a big piece of the overall puzzle. So hopefully, that's consistent with what you've heard over time, but we wanted to make sure it's clear, given the fact that we just put a lot of money to work over the last few quarters. Long-term capital structure. Today, our net debt stands at $4.6 billion. And we know this is a consistent focus for you. As investors, we know it's a consistent focus for the rating agencies, and we agree it's not where it needs to be as a public company. Our focus is on debt retirement, as I mentioned, in the near term, and it's our goal to essentially put ourselves in a really good position in a few years when we refinance our capital stack to do it in a really efficient way, okay? So that's a guiding principle for us in the near term. We're not going to waiver from that. If we allocate our capital that we generate towards debt retirement and some of it will be at a discount, as you can imagine, just given rates, the rate environment where debt trades, we think we can put ourselves in a position where we get the debt below $4 billion by 2027. That's the next 3, 4 years. And as we execute on our growth plan, we've got an opportunity to continue to grow our EBITDA, and that will bring our leverage ratios somewhere around 4x by '27, plus or minus. But we're not going to stop there because we're not done with the mission. It's just that we've got to be realistic about how much we can really accomplish in the near term. Long term, we want to be in the 3s as a public company. That's long term. That's where we should be. And that might bounce around a little bit. But if you said on my wish list, where would you like to be? That's the right number. Okay, BST acquisition. I get the sense that you understand our enthusiasm for the acquisition. We acquired the company on May 9 for $160 million, $141 million of cash, $19 million of stock. Steve wanted it to be more stock, but he wanted to be more stock on May 12. But in any event, we put a little stock in the deal because actually, the management team wanted to take some stock and we wanted to send a signal to the world that they believe in us, and they do. There were some tax benefits, about $11 million. So the net purchase price comes down a little bit closer to $149 million. Super high-quality model. SaaS model, PEPM subscription, gives us a real horizontal product engine and capabilities across our entire enterprise. You heard the sales folks talk about how this really kind of changes the game for them. And it stretches across a bunch of markets, the markets that we serve today, but also new markets, supplemental and others. And the financials are going to be reported as part of our analytics service line, as you know. Q2, we'll report a partial quarter, and then in Q3, you'll see the full impact. As the business scales over time, we'll assess whether it makes sense to break it out. And I think we all want this to be a scale where we can say we've got a SaaS business here that's really attractive and data analytics, et cetera. But it's not big enough at this juncture, and we're going to monitor it over time. Over time, we do think it's going to be a significant contributor to our revenues, okay? We signed up for $100 million plus of revenues for this business. We said over the next several years. The right way to think about this is, pick a year and plus or minus anywhere, that's the endpoint. The starting point is today, $60 million of revenues, and we think that it will grow over time, and we think we can keep going past that. But it's not going to happen overnight. We don't -- you don't just walk into your clients and then just drop a bunch of new products on them, and all of a sudden there. But we've got a very nice runway for this business going forward. And we expect you to monitor the progress of our acquisition as we go forward over time. We didn't -- we haven't really talked about this, but was notable in the transaction is we created some serious alignment. We've put together an incentive and retention program that's structured to ensure success. And we like this idea of alignment. We want to drive the revenues of the business. We want people focused on the right thing. And we put arrangement targets of $66 million of incentive payments over time. These are tax deductible, compensation, and we expect the NPV of these payments to be closer to $40 million if you think about the time sequence and the tax benefits, et cetera. We've set up ambitious annual targets that they have to meet in '24, '25, '26 and '28. So that's that scale that we're talking, so we can scale the business over time. And employees will need to be employed at the time of the incentive payments, so down the road to receive it. So as we get closer to the milestones, we'll keep you posted. On the financial expenses, so you'll understand them. But trust me, if we're meeting these goals, we're going to be pretty happy. We all are going to be happy, investors, the management team, et cetera, because we will have built a sizable Software-as-a-Service business inside our 4 walls. And that will be enormously valuable. In summary, I think I'll say a few more things about BST. We're very excited about the acquisition. We're pleased about the integration, which is really important. We worked 6 months to get the closing right. So day 1, we had a really strong message to the BST employees. We had an integration plan mapped out. We knew what we were going to do right away. It was not a shotgun marriage. This is something we've worked on for a long period of time from a product perspective, from a people's perspective, et cetera. So we're very excited about the teamwork we're seeing to date. We're excited to what our customers are saying about it. Again, the customers kind of saw this telegraphed over the last 6 months. This was not new news completely. It was new news that we have this capability in-house, all of a sudden. And we're just thrilled to have the team on board. So last, but not least, Dale started the day with where our transformation leads us. So you heard from the team that we're pretty excited about it. This is the destination, and it's kind of the output, right? The output is a broader suite, more diversification, faster growing. But you can't live on the outputs. You got to put the inputs in. So unfortunately, we're here today to be excited about what the future could be. But tomorrow morning, you know what happens, our fearless CEO says, execute, execute, execute. And we've told you we've signed up for that. You need to hold us accountable to this. This is not a bunch of PowerPoint slides. This is real people doing real stuff and grinding it out every single day. And our point to you, as Dale also says, is watch us. We expect you to watch us. We expect you to hold us accountable to this. And we think we're on the right track here, and we're focused on things that matter most to deliver. So with that, I think we're going to do some Q&A, Dale with Steve and you and I.

I guess what you laid out in the last presentation, I think on Slide 87 was very helpful showing the drivers of the core out-of-network business, and I think that explains a lot of it. So I guess the question for you is, I mean, you're sort of baking into that model where you have a bunch of benefit from trend and inflation and other stuff. There's kind of this give back to the customer that comes in the form of price. And you kind of laid that out. I think it was 1% to 2% or 2% to 3% per year. I guess this past year in '23, it was a little bit elevated at kind of at 8%. Is that kind of just sort of clustering of timing. Some of that was a little bit pulled forward? And how does that differ? Because that seems like that would be consistent with the kind of model you laid out. So I'm curious also how this all compares to historically, what you've seen. Because historically, you probably had a similar model or...

Let's try a slightly different take is, if we were sitting here in February of 2024. What does that bar look like? And you described it best. That's a cluster. We announced 3 contract renewals within 2 quarters. And in 2024, you're not going to see a bar like that. So if you're there for spread impact over a couple of years. And by the way, we don't think the impact is going to be quite as dramatic going forward, as we're sharper in the marketplace. But having said that, we just have to recognize that the most important thing that our bigger clients are looking at is, why should I give you all the benefit of medical inflation. And again, it's a guess, right? And you could -- what if medical inflation is really high. And so we're -- it's kind of a give and take. But the real point of what we just described is we're not spending any bandwidth or time worrying about that right now. We're just focused on the business.

Daniel Grosslight with Citi. I maybe just want to go back to your long-term targets. I know you're not providing 2024 guidance, but if you can provide 2024 guidance. If you could just give us some framework on how to think about getting from that core growth to that long-term growth, how long do you think it's going to take ultimately? Is it more linear? Is it going to go in kind of fits and starts? Just help us think through the time line to get to that longer-term target?

Yes. And I don't think we're going to -- we always put our guidance out in February. But I think, Daniel, it's important to understand the -- we said that we think '23 is going to be a base. And so we're hoping to kind of give you the bread crumbs to think about where we could be. And I don't think it's a J curve to get to the 8% to 10% growth. I think it's probably a little more smooth than you might imagine. So as it pertains to where we could get to next year, I think the algorithm is pretty reasonable across a variety of years.

I've got 2 questions. I guess the first is, maybe for Steve, on the risk models that you guys were talking about before. what makes your predictive modeling more effective, right? I think about UnitedHealthcare and some of these others that are spending $1.5 billion on CapEx every year, $5 billion on tech spend. Like they've got data. They've got predictive -- is it data scientists? Is that you've got data from other plans? I'm just curious like what exactly has created that edge on predictive modeling that they can't do. And I'm sorry, I think you mentioned they're kind of stuck in actuarial science. So maybe that's part of the answer. And then just the second one a little bit easier just on the plan optics, are providers buying that service in anticipation of their negotiation with the plans as well? Or is this really kind of one-sided where the plans are buying the service?

Josh, so the first question, and I hope I didn't insinuate that we're calling our models better than what that particular carrier has. I think what I said is, we will provide and deliver world-class modeling and capabilities. And to your point, not so much about different data than they would have access to. Others would have access to, but really about the quality of the data scientists that we have. As I mentioned, the [Indiscernible] world class data scientists, all of are recruiting at the benefit science side of the house has been done through the operations research center at MIT and other programs there. And so it's just -- there are, I would say, some of the methods that we use are cutting edge, are going to be best in class, and that will put us in that upper echelon of deliverables. Now with regards to plan optics, I certainly think that there is a market need in that space, but we're just not focused there today. Our focus is on our core customer base, which is payers and the other customers that we already have existing integrations and relationships with.

Yes, Josh, we are laser-focused on our payer relationships as it relates to planned optics, we think the runway is long, wide, and we want to run hard headed. And do we think there's an opportunity for a planned optics product for the provider community? Yes. And perhaps we'll be opportunistic. But in the near future, we are 150% focused on payers.

Steve Valiquette from Barclays again. For my question, are you guys able to flip back to one of the slides Slide 88 for a minute. Is it something the clicker there? It's not mandatory, but if you can, it will be a little bit easier. Yes. I guess similar to my question earlier on the data and decisions -- just curious on the payments revenue ramp, you show a 75 to 100 bps on this slide, I guess, it's $50 million to $75 million revenue ramp. The same thing there just in that trajectory, is that going to be more lumpy or linear just based on the contracts, et cetera? Just trying to get a sense for how that might ramp.

Yes. The ramp on both of them will be -- it's going to be a little bit slow this year and going into next year, and then it starts picking up because there's a sales cycle, right? There's an implementation cycle, et cetera. But I think it is fair to say that it's going to be relatively linear. It's not going to be, "Oh, my gosh, it's going to '25, it's going to start ramping. It's a slow build. I got a question earlier, it's like, how quickly you get to the $100 million? Could you get $50 million next year? We're not going to go from $16 million to $50 million. It's going to take time, but it's going to be very attractive growth. It's going to be additive to our overall business and it's something we feel comfortable signing up to.

On BST, I see the opportunities that you outlined with predictive analysis. One, can you just give us an idea as to what the market share is today? And then two, you talked a lot about configuring the options you have with your customers. And a lot of that configuration, and you're adding in AI as well. How do you maintain an edge over a commoditization due to AI. Like in that 200 to 250 basis points of growth, what type of volume do you need to see? And how should we think about that going forward to offset any of that commoditization. And I have a follow-up.

Okay. Yes. As far as market share goes, I mean, obviously, with the total number that we're at today, it's extremely small. You could assume that it barely registers today, which is one of the most attractive reasons why we're together, right? It's the vast distribution opportunity that we have here at MultiPlan to take world-class models and plug it in to these existing integrations is what gets us excited and why we're here. In terms of the focus and the differentiation on AI. I mean, look, it's there are many, many, many stories in the news where AI, the promise is working. There's just as many where it hasn't worked, right? And that's because the capabilities don't necessarily fulfill the promise that has been set up. And so we are confident in that area. As I mentioned earlier, we have the data science capabilities. We know what we're doing in this space. And our ability to stand out is not in question. I mean we have to prove that to you, obviously, but it's not in question to us. We understand and know where we are positioned and the strength of our capabilities. Now with the combination with MultiPlan, we'll be able to -- you'll see that for yourself in the coming quarters.

And then, Jim, on the 2027 target, and it implies about $1 billion of EBITDA. I know you're netting out cash, but roughly $1 billion of EBITDA. If I take the $275 million of new revenue opportunities, apply on margin, and then assume the other 4% to 5% CAGR over the next 3 years or so, I know I'm missing something, but can you help us bridge from that incremental opportunity with the acquisitions to that roughly $1 billion of EBITDA? Like what are we -- what should we expect in that?

Well, the numbers aren't perfectly set up. It's not 4 divided by 4. I think we're going to probably do better than sub-4 on the other side of it. So I don't think you need to get to $1 billion of EBITDA to get there. But if you map out our EBITDA going forward, we think we can put ourselves in a position where the ratios are around that 4x pretty quickly. So it's not heroic. Yes, that was [Indiscernible], I was talking about last year. Utilization.

Yes. But this year, it specifically [Indiscernible].

So yes, it's a good question, and I was expecting it actually from a research analysts, but -- the whole thing is, okay, everybody else is seeing the resumption of utilization in the system, whether it's the HCAs of the world, Steve, I think you did that expert call in the ASC space, et cetera. So there's -- we have seen no trends that suggest that utilization is going down. And then obviously, United and Humana kind of corroborated that. Albeit in the Medicare Advantage space. We do lag, and we do have that out-of-network SKUs. So you're right, [Indiscernible]. We're being a little bit conservative. Now having said that, we just told you, revenues are coming -- we expect the revenues to be at the top end of our guidance range for Q2. So we're seeing a little bit of improvement. But it's not leaps and bounds improvement, and we're just not ready to call a full turn, a snapback, if you will, given our idiosyncratic lagging perspective. Having said that, by August, we'll have a view on the rest of the year, and see that. We had figured that there was going to be a little bit of improvement. It feels like it's a little bit better than a little bit of improvement, but it's not like what we saw in 2021, where it roared back. But all things being equal, it's been -- we haven't seen it go backwards.

We said on our Q1 call that we started to see our mix change, right? That we were starting at the tail end of the quarter that we are starting to see our mix changing and we are seeing more ASC claims. We were seeing more surgical claims, and those are higher dollar claims, right? And so that started to happen towards the tail end of Q1. And then you can see, as Jim pointed out, Q2, we have -- obviously, there's a 6- to 8-week lag UnitedHealthcare and Humana came out and said, we're seeing higher utilization. Largely, they were pointing out their Medicare Advantage business, will that cross over into commercial and then we'll cross over into added network. Okay, so yes, we're being conservative. We'll be in a much better position at the end of Q2 and August to reflect back to see if we're seeing that taking into account the 6 to 8-week lag.

Andrew from Beach Point. Yesterday, you guys added an additional Board member, John. Curious on the logic, timing, just if you could provide a little color on the addition.

Well, I think -- we had a board vacancy and when Bill Veghte stepped down at the end of the year because of business constraints. And so we had a vacant seat to fill. John adds an incredible amount of leadership experience, right? He's been 25 years in the payer segment, 25 years in senior leadership positions. He brings an enormous amount of experience from Optum, having run businesses with inside of Optum, his most recent position being President and COO of Optum and Optum Services. And prior to that, President and CEO of OptumRx. And so there's a lot of subject matter expert and industry experience that we're delighted to have on the board. Couldn't be happier to have that on the board as we continue to pursue our growth plan and our growth initiatives and take advantage of the BST acquisition. Anything else? Well, look, I think -- well, first of all, right, closing remarks, quick. Because I know it's already almost 1:00, and everyone's hungry. But listen, thank you. Thank you for coming. Thank you for spending time with us this morning. I hope you have a much, much better sense of the business and that we clarified a lot of that for you, and the role that we play in the health care system. You can sense it, we're clearly, clearly excited about our future prospects. And as you can see through the work we've done, the growth plan, the growth initiatives, we've been working really hard. The leadership team has been working extremely hard on executing on the business and executing on our growth plan. Of course, as we have said, at the end of the day, it's all about delivering results. We get that. But I hope you have some sense of the enthusiasm we have about the future of this company. We're really excited, not just about BST that puts us off the charts. We're excited about the growth in our core, the organic growth initiatives, the addition of BST, the partnership with Echo Health, we're moving. We're pivoting and pivoting quickly. So I hope if anything, you walk away and understand that, we'll talk -- obviously, thank you again for coming, and we'll talk soon at our next earnings report. Thanks again. Thanks for your patience.