The Young IPO That's Bridging In-Home Health Visits

One company has found enormous success in the healthcare industry by filling the gap between clinic visits and telehealth. In this video clip from "The Health & Fitness Show" on Motley Fool Live, recorded on March 18, Fool contributor Rachel Warren examines DocGo's (DCGO 0.57%) last-mile services that give patients, providers, and businesses more access to healthcare.

Rachel Warren: So, the company is called DocGo, formerly known as Ambulnz, that's spelled A-M-B-U-L-N-Z, a creative take on the spelling. Anyway, went public via SPAC in November, founded only in 2015. DocGo offers what they call "last-mile healthcare services" to patients either in their homes or even in their place of work. That can be anything from testing to blood work to IVs to vaccination.

Unlike Teladoc (TDOC -0.07%), which essentially you have that virtual consultation with your physician, what DocGo does is they connect providers and patients and then they have a network of frontline workers that they work with who then go to these clients' houses and whatever the issue is, to administer vaccination, or they need to be tested for something, they need something in-home. They're trying to bridge that gap.

The company described its business as "we connect the last mile of health by delivering trained professionals to administer vital care that would otherwise require a visit to a facility, all managed through a proprietary AI-driven system that revolutionizes the way providers, businesses, and governments access healthcare."

Let's say you have that telehealth consultation, but then you actually need specific care. Let's say you need to be tested for COVID, for example. This is something where a company like DocGo would come into play. They partner with government organizations. They can be onsite at events. They have a broad network of healthcare providers that they partner with. These include: Jefferson Health, GoodRx (GDRX -0.14%), HBO was another one that I saw.

The company's mission statement, I think really also actually describes what it does, "where telehealth providers stop, we go, where the homebound benefit from on-site treatment, we go, where long waits and busy emergency rooms do more harm than good, we go." Essentially, they're trying to really bridge that gap, further democratize healthcare. They have this massive network of trained EMTs, CMAs, paramedics.

So far they've had over 3 million patient encounters and counting. Their network consists of more than 3,500 trained frontline workers. DocGo's services are currently available across 28 U.S. states as well as in the United Kingdom, which is interesting, didn't know that. Like I said, they have a broad network of clients and providers they partner with; this also includes big ones like HCA Healthcare (HCA -0.13%), the New York State Department of Health, I saw the city of Philadelphia there as well.

So DocGo's platform, they have this patient CRM that integrates with its provider network, it provides electronic health records integration. They have said that "our platform manages over 20,000 successful transports and over 300,000 mobile health encounters per month." They have requester technology that does real in-time dispatches for care.

They actually also have a mobile urgent care side to their business. Let's say you're not a healthcare provider, let's say you're an individual and you need non-emergency medical care, there's actually a link as well as a number you can call to request an appointment, and then they will send a clinician to you, let's say you're having like cold and flu symptoms. That would be an example of a situation where you might contact DocGo and have someone come directly to you.

Really interesting company. One last note, they recently released their earnings for the fourth quarter and full-year 2021. It was a pretty robust year of growth for the company. In the full year, revenue grew 239% compared to 2020. Its mobile health revenue was $234.4 million. That was considerably higher than the $30.9 million reported in 2020. Medical transport revenue was up also double-digit percentage to be 33% year-over-year.

They actually generated about $110 million in COVID testing-related revenue and actually reported a positive bottom line, net income of $19.2 million versus a net loss the prior year. The business is growing really fast. It's actually profitable, which for as a new company as this is surprised me. I like what they're doing.