TruBridge (TBRG) Stifel 2024 Cross Sector Insight Conference summary

Rebranding and strategic focus

• Rebranded to TruBridge for simplicity and unified market presence, focusing on rural and community healthcare markets.

• Shifted from organic-only growth to acquisitions since 2016, consolidating under a single brand.

• Now offers two main solutions: EHR and RCM, aiming for best-in-class products and services.

RCM business growth and market trends

• RCM now represents 65% of revenue, up from 50% a few years ago.

• Anticipates a market shift from 80% in-house billing to 80% outsourced over the next decade.

• Labor shortages and increasing billing complexity, especially with Medicare Advantage, drive outsourcing.

Margin trends and cost optimization

• Recent EBITDA margin declines attributed to business mix and investments in technology and cloud.

• Margin improvement expected in the second half of the year due to offshoring and cost actions.

• Voluntary retirement and vendor savings also contribute to margin recovery.