CorVel Corporation Q3 FY2023 earnings call

• Revenue for the December quarter was $179 million, up 9% from the December 2021 quarter. Earnings per share were $0.96, a 25% increase from the prior year. - CERiS, serving the commercial health market, had strong results despite temporary volume reduction from key partners early in the quarter, with deferred work expected in coming quarters. - Enterprise Comp claims management solution had record new sales and revenues in 2022, and was recognized with awards. - Managed care carrier business investments are yielding returns with new carriers onboarded. - M&A consolidation in payment integrity market provides CorVel with stability due to its strong financials. - CERiS is expanding AI-powered services, including specialty care reviews. - Symbeo offers AI-driven revenue cycle management solutions. - CorVel's care advocates work on mental health in workers' compensation, with 4 states enacting legislation in 2022 and others considering. - Digital transformation includes a new document storage and processing solution using cloud-based AI to enhance data extraction.

For the December quarter, CorVel's Patient Management segment (including third-party administration, TPA services, and traditional case management) generated $119 million in revenue, representing a 10% annual increase. The Network Solutions segment (wholesale market) had revenue of $60 million, a 6% increase from the same quarter in the prior year. Revenue contribution: Patient Management accounted for approximately 66.5% of the total $179 million revenue, while Network Solutions made up about 33.5%.

• M&A consolidation in the payment integrity market leads to limited options. - M&A throughout industry supply chains exacerbates complexities in managing order fulfillment and cash flow.