Oak Street Health, Inc.

Good morning. My name is Mary, and I will be your conference operator today. At this time, I would like to welcome everyone to the Oak Street Health First Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw a question, press the pound key. We ask that you limit yourself to one question and one follow-up. Thank you. I would now like to hand the call over to Sarah Cook, Head of Investor Relations. Please go ahead.

Good morning, and thank you for joining us. With me today are Mike Typos, Chief Executive Officer, and Tim Cook, Chief Financial Officer. Please be advised that today's conference call is being recorded And at the Oak Street Health press release, webcast link, and the other related materials are available on the investor relations section of Oak Street Health's website. Today's statements are made as of May 4th, reflect management's view and expectation at this time, and are subject to various risks, uncertainties, and assumptions. In addition to historical information, certain statements made during today's call are forward-looking statements. please refer to our 2021 annual report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission, where you will see a discussion of certain risks, uncertainties, and other important factors that could cause the company's actual results to differ materially from these statements. Certain statements made during this call include non-GAAP financial measures. These non-GAAP financial measures are in addition to and not as a substitute or superior to measures of financial performance prepared in accordance with GAAP. Please refer to the appendix of our earnings release for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures. With that, I'll turn the call over to our CEO, Mike Pecos. Mike?

Thank you, Sarah. And thank you to everyone for joining us this morning. Joining me on today's call, in addition to Sarah, is Tim Cook, our Chief Financial Officer. I want to first thank our team for the continued dedication and focus on our patients, our communities, and our mission. I feel privileged to work with such a dedicated group of individuals and I'm impressed with the stories I hear every day of Oak Street team members going above and beyond for our patients. We are pleased with the start of the year and both the positive momentum we feel across our organizational objectives and the operational results from the quarter itself. with performance above the top end of our guidance range for revenue, at-risk patients, and adjusted EBITDA. It remains a difficult operating environment in healthcare more broadly and is a testament to our team that we are able to continue to drive strong results. At Oak Street, it is an exciting time across the organization. We are focused on the programs and services that our patients need to stay healthy and out of the hospital, and that will transform the way care is delivered for older adults over the next decade and beyond. This is a welcome change from the past two years, when we often need to react to in-the-moment COVID-driven needs of our patients and communities. For example, today we're investing in Canopy, a proprietary technology platform, using our deep set of patient data to provide actionable decision support to our care teams through applications that are both easy to use and improve workflow adherence. A specific example is our technology integration work with RubiconMD. After completing the first phase of the integration of RubiconMD into our referrals module, we have seen an increase in e-consult volume over 200% over the last several weeks. As we complete phase two and phase three of the integration, we expect to see an even larger jump in volume. I'm confident that the investments we are making today will drive higher quality care and lower costs for the long term. We continue to focus on our team, our culture, and our mission to rebuild healthcare as it should be. We believe our deliberate approach to building and reinforcing our culture, combined with our team's focus on our mission, is a key driver of Oath Street's success and will continue to be a differentiator. Today's operating environment is not without its challenges. We are watching the current COVID wave closely, making sure our patients are protected by vaccines and receive therapeutics if they do contract COVID. It remains a difficult labor market. We continue to navigate this environment without seeing a negative impact on our financial or operational results. We have not and do not expect to experience delays in opening centers due to labor shortages. Today, we have not experienced higher labor costs than forecasted coming into the year.