Progyny, Inc. (NASDAQ:PGNY) Q4 2022 Earnings Call Transcript

The discussion is more about member experience. It’s about creating favorable clinical outcomes. It’s about creating healthy pregnancies, getting members pregnant to a live birth faster, et cetera and avoiding all the other issues that happen when you don’t do that. And that’s a big part of the discussion with prospective clients, continues to be, right? Cost is always something that they ask about. Cost is always something that they want to understand. But the first and most important part of the discussion is that member experience driven by our offering. And I think that’s really important when you think about and ask about what people are talking about.

Jailendra Singh: That’s helpful. And then my quick follow-up around your provider partnerships. Maybe if you can spend some time around retention there and what you’re seeing from like just in general rates point of view, maybe spend some time, how do you ensure these provider retention and quality in general?

Peter Anevski: The provider retention, we’ve had 0 issue with those in our network. There isn’t anybody that we wanted in our network that’s not in our network. I’ll start with that. Nobody has left our network that is any challenge anywhere either geographically in the country or overall across the country. We have a really, really deep collaborative relationships with our providers. We’re all in it together effectively relative to the clinical outcomes that we’re achieving and helping to lift overall awareness and the overall boat of fertility services in the U.S. And so it’s a very important relationship that we make sure that we take care of equally along with our members and our clients relative to our overall offering and our approach that we do here at Progyny. What was the second part of the question? That was it? Was there another part? I’m sorry, was there another part to your question?

Jailendra Singh: I just wanted to understand on the reimbursement, if you’re seeing any changes?

Peter Anevski: Oh, yes.

Jailendra Singh: Rates negotiated, yes. Go ahead.

Peter Anevski: Yes. So no issues with reimbursement rates. In fact, unlike the rest of health care that’s talking about a 5% to 8% increase in cost in the upcoming year. We’re telling our clients that we’re generally going to be flat to slightly down and are able to do that through those relationships and through those partnerships, whereas we continue to grow the overall industry and grow the number of patients that they would otherwise probably never see with lack of coverage. That’s really important. And as a result, together, we’re able to achieve the success that we are and still able to maintain and keep costs in check which is as Michael mentioned before, we can talk about what clients are looking for, that’s a real differentiator for us, especially in this upcoming year as people are very sensitive to cost and cost increases.

Operator: The next question comes from Scott Schoenhaus with KeyBanc.

Scott Schoenhaus: Congrats on the nice momentum heading into the year. So my first question is actually on the pharmacy benefit side of the business. Baked into your first quarter and full year guidance, what kind of growth should we be expecting in this segment, given the timing of the large wins and your guidance of expected 90% penetration rate?

Peter Anevski: Well, we’re not — we don’t break out from a guidance perspective, medical and Rx. A big piece of that is because of timing and timing of when things come in within given quarters or years. But I would say that as we continue to — I think Mark’s comments, as the base of clients now continues to approach 100% of clients having pharmacy benefit, your growth rates are going to start to get closer to each other. Pharmacy will still be higher than medical this year but your growth — it won’t be as pronounced as it was in the past year. Your growth rates are going to definitely start to get tighter relative to pharmacy versus medical.