Specialist
Former SVP at One Call Care Management Inc
Agenda
- One Call overview and broader workers’ comp market
- Segment analysis and outlook for IT system integration
- Impact of COVID-19 on competitive positioning and service lines
- Polaris update and growth potential post-COVID-19
- Outlook for 2020
Questions
1.
What are some of the key trends and themes you have been following more broadly within the workers’ compensation sector?
2.
How have you witnessed One Call’s story evolve over the last 1-2 years, and how does that juxtapose with some of the macro trends you have just outlined?
3.
What impact has the coronavirus pandemic had on the workers’ compensation sector? How do some of those issues impact One Call directly? I know we have highlighted the decline in claims volumes, but are there other factors that you would also note?
4.
Is One Call readily equipped to flex some of those variable cost savings to help conserve cash in the short term? You have highlighted some of the CAPEX issues that were troubling the company even before the pandemic, and furloughs were to be expected, but are there other nearer-term levers that you would highlight?
5.
How would you evaluate the effects of the pandemic across One Call’s various segments and service lines? I know we touched on PT [physical therapy] diagnostics, thinking about things such as DME [durable medical equipment], transportation and beyond.
6.
At what level were volumes trending across those service lines previously? I know you touched on where these levels might go through the pandemic, but could you set a bit more context here?
7.
How would you start to frame the financial impact there could be in 2020, for top and bottom lines?
8.
We have discussed the damage to the business from rising unemployment, and working from home, causing fewer injuries, and thus fewer claims. I know you mentioned a three- to six-month lag until we get back to semi-normal volumes, but how would you start to think about the new normal as we think about the end of the pandemic, whenever that may be?
9.
How are state budget pressures impacting workers’ compensation reimbursement? Can we extrapolate any lessons from 2008, or do you expect significant downward pressure on that front?
10.
How do you view the competitive landscape and One Call’s positioning? What are your thoughts on the sector’s major players’ ability to weather this storm?
11.
What are the differences between One Call and MedRisk, in your opinion, and what are some of the factors that have led MedRisk to perhaps not have some of the same issues that have troubled One Call recently?
12.
ATI has recently taken market share for PT. Can you shed any light from the past 6-12 months on this trend, and what’s your view on its positioning in the sector?
13.
Could you quantify the hit to workers’ compensation reimbursement during the recession? I know the environment is quite a bit different from 2008.
14.
Earlier you mentioned One Call’s very high rates of spend primarily towards Polaris. Would you anticipate that trend continuing, given the current environment? Could there be more tempered CAPEX? What’s your view on the rollout of Polaris?
15.
What is your opinion of One Call’s CEO [Thomas Warsop] and given some of the things that we have discussed today, his ability to implement a turnaround strategy?
16.
Aside from MedRisk, are there any other competitors that present a real challenge at a national level, in your opinion?
17.
What are your thoughts on potential M&A in this sector? Would you expect an acceleration in consolidation, given the environment with compressed valuations? How do you foresee the M&A dynamics playing out?
18.
Are there any business lines that you think One Call should exit? What is the appetite across some of those business lines?
19.
How do you think about revenue and contribution margins for Polaris and how those may compare for those who are converted vs those who have not? What could One Call be like once Polaris is fully rolled out, in your opinion?
20.
You mentioned that CAPEX will have to ultimately dry up, through this pandemic at least. Are there any verticals or products where you could envisage the company committing R&D or CAPEX efforts? Why or why not?
21.
What is your outlook on liquidity for One Call in 2020?
22.
When we think about the workers’ compensation market, is 2-3% annually a reasonable rate of contraction, in your opinion? Do you foresee that flattening at some point, or perhaps even inflecting towards growth? If so, what would drive that?
23.
Is there anything that we haven’t spoken about that you think might be important to highlight?
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