Performant Healthcare Announces Confirmation of RAC Opportunity With New York State

PLANTATION, Fla.--(BUSINESS WIRE)--Performant Healthcare, Inc. (Nasdaq: PHLT) (the “Company”, “Performant” or “Performant Healthcare”) today announced that the State Comptroller of the State of New York has officially approved and executed the previously tentative award to Performant of the New York State Medicaid Recovery Audit Contract (“RAC”). The multi-year relationship is expected to commence in Q2 2025.

“This marks a significant milestone for Performant,” said Simeon Kohl, Chief Executive Officer. “New York represents the largest Medicaid RAC opportunity in the nation, and our selection as their trusted partner underscores our ability to successfully engage with the most complex and sophisticated state programs. The state market is an emerging opportunity for Performant, and this contract is a significant step in our efforts to capture a share of the state Medicaid payment integrity industry, which we estimate to be a $300 - $500 million industry-wide annual revenue opportunity for cost-containment services.”

Performant, a leading provider of technology-enabled payment integrity, eligibility, and related analytics services will work with the New York State Office of the Medicaid Inspector General (OMIG) to identify and recover improper Medicaid payments. Through its advanced technology and client-centric approach, the Company aims to deliver measurable cost savings and greater overall efficiency.

“The New York State RAC contract aligns perfectly with our broader growth and profitability objectives,” said Rohit Ramchandani, Chief Financial Officer. “At steady-state, we anticipate generating double digit millions in revenue from this contract. This will greatly support our growth target of achieving $150 to $160 million in annual revenue, a key milestone and, alongside other efficiency initiatives, help us toward our goal of pursuing a 20% adjusted EBITDA margin.”

“This achievement has been years in the making,” said Mr. Kohl. “We look forward to proving our capabilities in one of the most demanding Medicaid recovery states, further reinforcing our leadership in this emerging market.”

ABOUT PERFORMANT

Performant supports healthcare payers in identifying, preventing, and recovering waste and improper payments by leveraging advanced technology, analytics and proprietary data assets. Performant works with leading national and regional healthcare payers to provide eligibility-based, also known as coordination-of-benefits (COB) services, as well as claims-based services, which includes the audit and identification of improperly paid claims. Performant is a leading provider of these services in both government and commercial healthcare markets. Performant also provides advanced reporting capabilities, support services, customer care, and stakeholder training programs designed to mitigate future instances of improper payments.

To learn more about Performant, please visit https://www.performantcorp.com