BrightSpring Health Services Bernstein Insights: Healthcare Leaders and Disruptors – 3rd Annual Healthcare Forum

Great. Thanks for having us. My name is Jen Phipps. I am the CFO at BrightSpring. Very happy to be here today. It is our first time participating in this conference, and we are excited to be here today.

I am David Deuchler, head of investor relations at BrightSpring.

Yeah. BrightSpring is a leading home and community provider, providing services to specialty and senior populations in high ROI and patient-preferred settings. As we think about that, we operate several different business lines. We segment into pharmacy and provider services. What's unique about the patients that we're serving is that pretty much everyone needs multiple services. All of the patients we serve have a polypharmacy need typically, and many of those also have a multi-service need. Whether that is primary care, home health, hospice, rehab services. We're able to provide more of the services that are necessary for the patients that we're serving. We think ultimately that provides better outcomes from a disease state. But we're very focused as an organization in a few different areas.

As you'll hear Jon or I or David Deuchler talk about it, each of our business lines focus from a core growth perspective and our ability to grow each of those business lines with market-leading teams, operational initiatives, lean efficiency programs, working to grow volumes underpinned by our high-quality services above market rates. From a strategic growth perspective, how do we unlock more of those operational synergies, have the best top side support, whether that's HR, IT, finance leadership, in each of our different business lines done better as an organization. How do we better unlock procurement synergies and ultimately be able to have more integrated care of multiple patients? There's a few different other areas that are interesting. How do we get leading technologies and differentiated payment models because of the support and outcomes that we're able to provide to our patients?

We think about that in terms of the strategic growth areas, and then highly accretive M&A, which we've done about 80 deals over the last 10 years. Almost 100% of those deals have improved their results from the time that we acquired them. Almost a 100% hit rate there. We just feel like those things have been part of our strategy to be able to grow really outsized to the markets that we're in, even though we're in very highly attractive markets that continue to grow.

Yeah. As we think about our organization, again, we're serving similar patients in similar settings, and we really see just more opportunity to continue to grow. We serve over 450,000 patients every single day, and how can we serve more of their needs across our organization? Not just continuing to grow, again, from a core standpoint in each different business line, whether that's specialty pharmacy, infusion pharmacy, home and community pharmacy, or home health hospice, primary care, rehab. How do we continue to do that? I would say our benefits of scale have provided a lot of different things. Complementary diversification has been very helpful. We've gotten real benefits of scale in terms of our ability to negotiate better on the payer side, our ability to negotiate much better on the procurement side, and how do we leverage our purchasing synergies across the entire organization.

As we think about our ability to then drive best practices throughout our organization. How can we be better as a home infusion company? We should be better. We expect to be better as a home infusion company that has, for example, home health capabilities and skill sets and the ability to recruit nurses. How do we bring that over to our infusion business? We're focused. That's just one example. We're focused across all of that. How do we, again, develop and deploy best practices across our organization? We're able to look across our organization and see 2, 3, 4, 5 years out. How do we want to deploy capital? How do we want to think about investments? You'll hear us talk a lot about investments that we've continued to make to drive growth.

Our specialty pharmacy has been able to capitalize on a lot of growth drivers we were able to see 3, 4, 5 years ago. Our specialty pharmacy business was able to take advantage of those things because of investments that we made in that business 5 years ago, as an example. How can we look out across opportunities we might see in infusion or home health or other specialty pharmacy areas to drive growth into the future? Then again, our ability to use our balance sheet is in a really strong position and how can we use that balance sheet to look across all of our different target areas to get the most attractive opportunities as we're consolidating in a number of different areas.