The healthcare landscape is changing. Due to the pandemic, fewer people are comfortable going to the doctor’s office or hospital. Over time, we think more healthcare will be delivered outside of these settings. For example, CVS has walk-in minute clinics and recently acquired Oak Street Health (OSH) and Signify Health (SGFY) which perform clinical and in-home medical evaluations. Similarly, Amazon acquired One Medical (ONEM) which provides in-office and virtual health care visits.
We would like to highlight DocGo Inc. (DCGO). DocGo is a healthcare services company with two primary offerings, medical transportation, and mobile healthcare. DocGo provides healthcare at home, at work or anywhere it’s needed. Mobile healthcare (~75% of DocGo’s revenue) can reduce patient costs by keeping patients out of the hospital and reduce hospital re-admission rates. DocGo typically sends a nurse to a patient’s home instead of a patient going to the hospital or doctors’ office resulting in quality care in a more comfortable setting. We think that having a nurse present creates a superior patient evaluation than telehealth visits such as Teladoc (TDOC).
The medical transportation segment (~25% of revenue) is an Uber-like non-emergency ambulance service that is integrated into health systems electronic medical records and enables on-demand patient transport solutions between clinics, hospitals, or the patients home. DocGo has direct relationships with large hospital networks and insurers who pay for the services DCGO provides. This transportation alleviates stress on patients, their families and health systems who view transport service as a cost center rather than an income generator.
DocGo is expected to generate approximately $505 million in revenues in 2023 with multiple opportunities for growth:
1. DocGo currently has a $1 billion and growing pipeline of contracts it is bidding on.
2. DocGo has a 3-store pilot to provide mobile clinics in Dollar General parking lots, to provide healthcare to patients in rural areas. Dollar General has 19,000 stores nationwide.
3. DocGo is working on remote patient monitoring/chronic care management where they can receive a per-patient-per-month fee on a recurring basis.
We believe DocGo will play an important role in the transformation of healthcare.
“Go Doc-Go!”
© 2022 by Grow Funds LLC. Registered Investment Advisor. GROW Funds LLC is a California registered investment advisory firm. Registration does not imply any level of skill or training. Neither the information within this article nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities. Investors should have long-term financial objectives. Past performance is no guarantee of future returns. GROW Funds LLC currently owns DCGO shares in its portfolios.