Edward Kressler's questions to Concentra Group Holdings Parent Inc (CON) leadership • Q1 2025
Question
Edward Kressler asked for more color on the variability of the cost structure, particularly labor, and questioned how the onsite clinic business has historically performed during macroeconomic downturns.
Answer
Executive Matthew DiCanio explained that the cost structure is highly variable as it is mostly labor, which can be scaled up or down effectively using large PRN (as-needed) staff pools to match volume fluctuations. Executive William Newton stated that the onsite business has proven resilient in past downturns because employers view it as a valuable investment with a clear ROI. Even with workforce reductions, the employer sites are typically large enough to sustain the clinic. DiCanio added that the onsite model is cost-plus, not volume-dependent, and that long-term trends like the reshoring of U.S. jobs provide a tailwind for this segment.