Premier, Inc.

Good morning and welcome to Premier's fiscal 2023 second quarter earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Angie McCabe, Vice President, Investor Relations. Please go ahead.

Thank you. Welcome to Premier's fiscal 2023 second quarter conference call. Our speakers this morning are Mike Alkire, Premier's President and CEO, and Craig McCaffin, our Chief Administrative and Financial Officer. Before we get started, I want to remind everyone that our earnings release and the supplemental slides accompanying this conference call are available in the Investors section of our website at investors.premierinc.com. Management's remarks today contain certain forward-looking statements, and actual results could differ materially from those discussed today. These forward-looking statements speak as of today, and we undertake no obligation to update them. Factors that might affect future results are discussed in our filings with the SEC, including our most recent Form 10-K and our Form 10-Q for the quarter, which we expect to file soon. We encourage you to review these detailed safe harbor and risk factor disclosures. Also, where appropriate, we will refer to adjusted or other non-GAAP financial measures, such as free cash flow, to evaluate our business. Reconciliations of non-GAAP financial measures to GAAP financial measures are included in our earnings release, in the appendix of the supplemental slides accompanying this presentation, and in our earnings Form 8-K, which we expect to furnish to the SEC soon. I will now turn the call over to Mike Alkire. Mike?

Thanks, Angie. Good morning, everyone, and thank you for joining us. A short time ago, we reported our second quarter results, which I am pleased to share were largely in line with our expectations. We also announced that we are implementing a targeted cost savings plan and revising our fiscal 2023 segment revenue and adjusted earnings per share guidance. First, I'm incredibly proud of our team for continuing to execute the four pillars of our growth strategy. Strong revenue growth in our performance services segment was driven by the execution of enterprise license agreements this quarter, and growth in our consulting services and certain of our adjacent markets of businesses. Importantly, we believe growth in enterprise license agreements demonstrates our strong partnerships with our members. These multi-year agreements expand the use of our technology and consulting services platform to help members deliver higher quality, more cost-effective care to their patients. Even in challenging times for health systems, Our members and other customers continue to see our offerings as long-term solutions for their needs. We're also making progress in strengthening our existing capabilities and expanding into adjacent markets. In the second quarter, we acquired TRPN assets for Contigo Health, our direct-to-employer business. These new assets, which we have rebranded as ConfigureNet, include our new out-of-network RAP that currently offers access to more than 900,000 providers across 4.1 million U.S. locations. We believe this offering will positively impact employer and provider-sponsored health plans' bottom lines, as well as health plan members' out-of-pocket costs when they access out-of-network health care services. Performance in our supply chain services segment reflect quarter-over-quarter growth in net administrative fee revenue, primarily due to growth in the non-acute, or as we call it, the continuum of care, group purchasing business. Also, as we anticipated, direct sourcing products revenue grew sequentially from the first quarter of fiscal 2023, primarily driven by expansion of our product portfolios. in a more normalized demand and pricing environment. While our second quarter performance generally reflects continued execution of our multi-year growth strategy, we, as well as our members and other customers, are operating in a challenging and uncertain macro environment. Inflation, rising interest rates, labor challenges, and ongoing supply chain constraints continue to affect our members and other customers. For example, within our performance services segment, Remitra, our e-invoicing and payables platform is experiencing the same market dynamics impacting other financial technology companies. While these headwinds are driving slower than expected adoption of Remitra, we believe this environment further magnifies the need for invoice and payment automation and dependable supply chain financing for healthcare providers and suppliers in the long term. We are in the process of realigning our Remitra business and cost structure for operational efficiencies in the near term to include hosting accelerated solution design sessions with suppliers and providers to further strengthen our go-forward strategy. We remain confident regarding Remitra's potential as an important growth engine for Premier. As we announced this morning, we proactively implemented targeted but meaningful cost savings measures. This includes the reduction of non-labor expense as well as elimination of certain open staffing positions and a modest reduction in our workforce. Let me be very clear. We are deeply committed to our mission to improve the health of communities. We do not take decisions that affect our employees lightly. These were difficult decisions to make, but they were also necessary to align our cost structure with the current environment. while providing flexibility to support our members and other customers in improving the delivery and cost of care. Looking ahead, we remain focused on executing our multi-level growth strategy and reinforcing our competitive position. We will continue to appropriately and proactively invest in opportunities that optimize our business for sustainable long-term growth while maintaining financial discipline and flexibility. Importantly, We believe we are well-positioned for longer-term success through the combination of our deep member relationships and our comprehensive and scalable technology and services platform powered by comprehensive healthcare data to deliver meaningful solutions to our members and the market. I will now turn the call over to Craig McKesson for a more detailed discussion of our second quarter operational and financial performance, our cost savings plan, and revised fiscal 2023 financial guidance. Craig?