DocGo, the mobile health firm, recently unveiled new payer agreements and outlined its ambitious targets during its investor day. The company announced partnerships with EmblemHealth and Blue Cross Blue Shield of Tennessee, which added 6.7 million covered lives to its network.
Additionally, agreements with UnitedHealthcare, Aetna in New York and New Jersey, Elevance Health, Cigna, and L.A. Care extended coverage to nearly 20 million people. DocGo also highlighted 19 active sales pipeline transactions that could potentially provide medical services to 250,000 patients if closed.
CEO Anthony Capone emphasized the physical aspect of DocGo's operations, stating that the company has a significant physical presence. The investor day showcased DocGo's focus on its people, devices, and mobile healthcare units. Capone expressed his optimism about the company's growth, highlighting the substantial increase in revenue from $11 million in 2016 to $440 million in 2022. DocGo aims to reach $500 million in revenues this year and $1 billion by 2025.
Furthermore, the company's shift to remote patient monitoring (RPM) following the decline in COVID testing in late 2022 has been a significant factor in its growth strategy. DocGo anticipates that RPM revenue will account for 15% of its total revenue by 2025. Despite being a capital-intensive industry, DocGo's CFO, Norm Rosenberg, emphasized the importance of profitability and stated that the company aims to achieve significant growth while maintaining profitability. The mobile health business is expected to grow by 35% annually, while the transportation business will grow by 20%.
DocGo's revenue growth is being driven by its expanding focus on Request for Proposals (RFPs), which are structured evaluations used by buyers such as health systems and governments to assess vendors. The company's proposal contract value has increased by 18% each quarter from 2022 to 2023. President and Chief Operating Officer Lee Bienstock attributed this growth to the increased number and size of RFP submissions and highlighted DocGo's strong relationship with New York City's largest public health system as a key factor in winning RFPs.
During the investor day, NYC Mayor Eric Adams praised DocGo for its contribution in helping the city overcome the COVID-19 outbreak. He emphasized the importance of keeping people out of hospitals to make healthcare more cost-effective and accessible.
DocGo's strategy involves partnering with groups that can bring in patients rather than spending on customer acquisition. The company focuses on offering additional services, such as monitoring and management, through these partnerships. DocGo's CTO, Hawk Newton, highlighted the advantages of their modern AI-driven, cloud-based technology, which enables faster and more cost-effective scaling compared to traditional companies.
In response to an investor's question about potential challenges from the Centers for Medicare & Medicaid Services, CEO Anthony Capone emphasized the importance of focusing on impacting care and reducing costs to improve patient outcomes rather than just monitoring. This approach ensures that DocGo is well-positioned to tap into the predicted $17 billion total addressable market by 2030.
