LifeStance Health Group, Inc. (NASDAQ:LFST) Q2 2023 Earnings Call Transcript

Dave Bourdon: Hi, Lisa, it’s Dave. I’ll take that one. So, there’s a — there was a few pieces there. So first of all, as far as negotiations that go with the payors, we are doing them — we are having regular interaction with our payors from an engagement perspective. Some of them are annual contracts. Some of them are an annual plus one from an escalator perspective. So, it depends on the situation, but more than anything else, we want to have frequent interactions with our payors and be engaging with them, as far as the value-based care we do have some value-based care arrangements already. I would point you to more of them being around access and quality rather than capitation or risk bearing, things like that. And I would also say, it’s early stages in mental health around value-based care that is not prevalent across our entire book.

Lisa Gill: Okay. Great. And then just a quick follow up on virtual versus in person. Can you maybe just give us what the percentage is this quarter and your expectation for the rest of the year?

Danish Qureshi: Sure. This is Danish. I can answer that. So from a virtual perspective, virtual visits represented about 73% of our total visits in Q2 as compared with75% in Q1. So, we continue to see increased trends in patient demand for in-person visits and a slow return to in that direction. That being said, because of our hybrid model in the way that we deliver care, we remain agnostic as to where it trends, how fast it trends, and ultimately where it sells out, which is a key differentiator for us, what it affects more than anything is how we continue to think about our optimization strategy around real estate and the footprint that we want to maintain.

Operator: Next question comes from Ryan Daniels with William Blair. Your line is open.

Jack Senft: Yes. Hey guys, this is Jack Senft for Ryan Daniels. Congrats on the quarter. Thanks for taking my question. So, I appreciate the comments on the launch of the new outcomes informed care program for clinicians. But can you dive just a little deeper into this program on the clinician front specifically, maybe like what measures are included or how it differs from the older process for clinicians. And then, is the second part with this too — is this rolled out nationwide already or is this only rolled out to a select group? Thanks.

Ken Burdick: Thanks for the question, Jack. Actually, it is rolled out nationwide and that’s the power of this program. It’s not as if we haven’t been doing assessments, but as we transition from lots of acquisitions doing things the way they had always done them to a single approach at LifeStance, that’s nationally consistent. It’s going to allow us to harness that data more effectively. And to-date, we have already done 180,000 of these patient assessments and we’re still in the very early stages, but it’s just a more structured discipline way of making sure that we are analyzing the clinical efficacy of the work and then helping to inform our clinicians and hopefully helping to inform the industry about best practices and protocols.

Jack Senft: Understood. Thanks. And as a quick follow-up too, on the center consolidation front, you noted the additional centers that are good consolidation candidates. I’m curious if those are within the same markets or are others that are –sorry, as others that are consolid — oh my god, sorry — curious if those are within the same markets as others that you are consolidating, or if those are new markets that you identified? Thanks.