NEW YORK - DocGo Inc. (NASDAQ: DCGO), a prominent provider of mobile health services with a market capitalization of $433 million and impressive revenue growth of 30% over the last twelve months, has announced through its subsidiary Cardiac RMS, the signing of a contract with a major hospital system in Mississippi. According to InvestingPro data, the company maintains strong financial health with a "GREAT" overall rating. This deal, set to commence in early 2025, will introduce Cardiac RMS's remote monitoring services for nearly 3,000 patients with cardiac implantable electronic devices (CIEDs) in the state.
Cardiac RMS's move into Mississippi responds to the region's high cardiovascular disease rates, limited specialized care access, and pronounced healthcare provider shortages, especially in rural areas. The service aims to alleviate the need for frequent in-office visits, allowing for early interventions that could prevent serious health complications.
The remote monitoring technology will oversee patients with various CIEDs such as pacemakers and implantable defibrillators, which are crucial for regular monitoring to ensure proper functioning and to detect any issues promptly. This is expected to streamline operations for healthcare providers, reduce hospital readmissions, and ultimately improve patient outcomes. The company's solid financial position, with a healthy current ratio of 2.19 and moderate debt levels, supports its expansion initiatives.
Lee Bienstock, CEO of DocGo, emphasized the significance of this partnership, stating that it underscores the role of remote patient monitoring as a critical element in modern, value-based care strategies. The collaboration will enable continuous patient oversight, reduce hospitalizations, and increase operational efficiency.
Cardiac RMS by DocGo specializes in remote monitoring and virtual care management, supporting chronic condition treatments and enhancing the accessibility and efficiency of cardiac care. By leveraging advanced technology and adaptable services, the company supports healthcare providers in delivering proactive, patient-focused solutions.
The information for this article is based on a press release statement from DocGo Inc. InvestingPro analysis suggests the stock is currently undervalued, trading at a P/E ratio of 15x, with multiple positive indicators including expected net income growth. Discover more insights and 12 additional ProTips for DCGO in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
"In other recent news, DocGo reported a significant decline in their third-quarter revenue for 2024, falling 26% to $138.7 million, primarily due to the wind-down of migrant-related projects. Despite this, the company showed strong performance across customer verticals and a notable increase in care gap closure programs. The company's CEO, Lee Bienstock, revised the revenue guidance for 2024 to $620 million to $630 million, with an adjusted EBITDA of $70 million to $75 million. In addition, DocGo announced expansion plans in North Texas by securing a new contract to supply ambulance transport services to a major health and hospital system. This move is expected to enhance medical transportation availability in Fort Worth and support further growth in the Dallas area. With these recent developments, DocGo continues to focus on expanding healthcare services and technology offerings. The company anticipates cash flow from operations to be between $90 million to $100 million for the full year 2024. Furthermore, Dr. Stephen Klasko was welcomed as the new Chair of the Board, signaling a strategic shift in leadership."
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