Senior Research Analyst at Freedom Capital Markets
Gene Mannheimer is a Senior Research Analyst at Freedom Capital Markets specializing in Healthcare Services, Healthcare Technology, Digital Health, and MedTech. He covers companies such as TruBridge and Nutex Health, and is recognized for his stock selection abilities with accolades like Top Stock Picker in Software by the Wall Street Journal and 'Home-Run Hitter' by Institutional Investor, reflecting a strong track record for high-performing calls. Mannheimer began his financial career following a decade in healthcare IT sales and marketing, subsequently spending 18 years as a sell-side analyst at Colliers Securities, Topeka Capital Markets, B. Riley, ThinkEquity, and Roth, and also served as Managing Director at ICR Westwicke before joining Freedom Capital Markets in 2024. He holds senior analyst credentials and is noted for his expertise in advising on M&A, partnerships, and strategic alternatives, though specific securities licenses or FINRA registrations were not publicly listed.
Gene Mannheimer inquired about AccessOne's historical growth rate and whether Phreesia expects to accelerate it post-acquisition.
CFO Balaji Gandhi stated that Phreesia acquired AccessOne with the intent to grow and invest in it, but could not provide historical growth numbers for the company.
Gene Mannheimer asked about the expected cash conversion rate going forward and the anticipated cadence of payment processing revenue for the remainder of the fiscal year.
CFO Balaji Gandhi advised that the conversion rate of operating cash flow to free cash flow for the rest of fiscal 2026 should be similar to what was seen in Q1. For payment processing, he confirmed the historical seasonal pattern is expected to continue, with a bump early in the calendar year that then flattens out.
Gene Mannheimer asked for clarification on the factors contributing to the Q2 2025 EBITDA margin compression and sought to confirm the organic revenue per visit growth rate when excluding the impact of IDR revenue.
CFO John Bates attributed the lower EBITDA margin to pre-opening costs for new hospitals and higher arbitration-related expenses. He confirmed that organic revenue per visit, excluding IDR, saw low single-digit growth and noted that the overall revenue per visit has stabilized around $4,200 over the last year.
Gene Mannheimer of Freedom Capital inquired about the components of arbitration payments, specifically regarding penalties, and the potential impact on future year-over-year comparisons. He also asked about the drivers of mature hospital volume growth, questioning the role of seasonality, and requested the opening timeline for the three new hospitals.
CFO Jon Bates clarified that current arbitration awards do not include penalties for payers, though proposed legislation could change this. CEO Dr. Tom Vo and COO Josh DeTillio attributed strong volume growth less to seasonality and more to sustained business development efforts and growing community reputation. Dr. Vo specified the three new hospitals in Texas (Houston, San Antonio, Sherman) are planned for Q3 and Q4 2025.
Gene Mannheimer sought confirmation that the dispute resolution process should be viewed as an ongoing part of business rather than a one-time event. He asked if the Q3/Q4 revenue figures from IDR could serve as a reliable forward-looking ballpark, how far back the retroactive claims went, and whether the disputed claims were concentrated with specific payers.
Chairman and CEO Dr. Tom Vo affirmed that the IDR process is an ongoing tool to collect fair payment that should have been received initially. CFO Jon Bates advised that while a trend is emerging, it is too early to commit to a specific run-rate number. He clarified that most retroactive revenue was from Q2 and Q3 2024, and that the underpayment issue is pervasive across the board, not limited to specific payers.
Gene Mannheimer of Freedom Capital Markets asked for the name of the third-party consultant TruBridge is working with and inquired about the destination of clients who have attrited, specifically whether they are moving to competitors or insourcing.
President and CEO Chris Fowler declined to name the consultant but CFO Vinay Bassi characterized the firm as 'top notch' and 'best of the best'. Regarding client attrition, Mr. Fowler stated that while it's a 'mixed bag,' the 'vast majority are going back in house.' He suggested this is sometimes due to new leadership at the facility or hesitation with the offshore model, which he views as an opportunity to win those clients back in the future.
Gene Mannheimer from Freedom Capital Markets asked for the name of the third-party consultant and inquired where attriting clients are going.
President and CEO Chris Fowler stated that they would not disclose the name of the consultant. Regarding client attrition, he explained that the vast majority of departing CBO clients are bringing their operations back in-house, which he views as a future opportunity to win them back. CFO Vinay Bassi added that the consultant is a top-tier firm with relevant expertise.
Gene Mannheimer of Freedom Capital Markets asked for the identity of the third-party consultant mentioned and inquired about where attriting clients are going, specifically whether they are choosing alternative vendors or insourcing.
President and CEO Chris Fowler stated that the company would not disclose the name of the consultant, though CFO Vinay Bassi added it is a 'top notch' firm. Regarding client attrition, Fowler explained that while it's a mixed bag, the vast majority of departing clients are choosing to bring their RCM capabilities back in-house. He views this as an opportunity, believing the door remains open to win those customers back in the future.
Gene Mannheimer of Freedom Capital Markets asked for the name of the third-party consultant TruBridge is working with and inquired about where clients who attrit are going, whether to competitors or insourcing.
President and CEO Chris Fowler declined to name the third-party consultant but stated that on the attrition front, the vast majority of departing CBO clients are bringing their revenue cycle management back in-house. Fowler views this as an opportunity to win those clients back in the future. CFO Vinay Bassi added that the consultant is a 'top notch' firm with relevant expertise.
Gene Mannheimer from Freedom Capital Markets inquired about the customer adoption and rollout of the Omnisphere platform and its expected impact on recurring revenue. He also asked if new innovations like MedTrak and MedVision are unique or responses to competitors.
Randall Lipps, CEO, described Omnisphere as a key, hardened enterprise platform that the entire customer base will migrate to over several years, driving recurring revenue. He explained that new products like MedTrak and MedVision are generally unique solutions designed to solve specific customer problems and are, most importantly, fully integrated into the Omnisphere platform, a key customer demand.
Gene Mannheimer asked for an update on the company's plan to hire approximately 40 new employees in sales and related functions this year. He also questioned if the Q1 SoHo ARPA of $14.83 should be considered the low point for the year.
CEO Scott Turicchi confirmed that hiring is proceeding as planned, primarily in go-to-market areas, but will be managed cautiously based on economic conditions. CRO Johnny Hecker added that hiring is focused on upmarket sales, implementation, and customer success to drive future growth. Regarding SoHo ARPA, Turicchi explained that while the base is fundamentally around $15, the metric is influenced by various promotions and brand mix, so it could fluctuate within a narrow band and potentially tick lower in subsequent quarters.