MAXIMUS Inc. F3Q09 (Qtr End 06/30/09) Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 0

2009-08-06 11:25:41.0

Tags: RFP, Call Transcript, Independence, Health Care, Earnings, Maximus Inc., Healthcare Reform, Vertical Industries, Benefits, Healthcare, Human Resources, Seeking Alpha

Question-and-Answer Session

Operator

(Operator instructions) Our first question comes from Charles Strauzer – CJS Securities.

Charles Strauzer – CJS Securities

Rich, ink up on your slide about healthcare reform and also talking about kind of the independence that is critical to any kind of package that were to come out. There's been a lot of talk in the media recently about Affiliated Computer Services, your primary competitor in enrollment broker service, losing some contracts after the federal government has informed them that their commercial work violates federal law as a conflict of interest.

Can you talk a little bit more about that and the essential opportunities that may open up in terms of new rebids, new RFPs that are kind of coming down the pipeline? And when you look at your slide about the kind of proposals pending in RFPs tracking, are any of those potential RFPs in the RFP tracking line?

Rich Montoni

I'd be glad to talk about it, Charles. First off, from a high level perspective, we do believe and we've held this belief for quite some time, and we're pleased to see that in most of the discussions, if not all the discussions that we read about healthcare reform, independence is a cornerstone. And we think that's true, when you look at the various components of a healthcare system and then you focus on what MAXIMUS does, and we do several things where we think independence is very critical to the success of that system.

You can look at enrollment broker work, you can look at dispute resolution work, you can look at eligibility work and you go across the components of the supply chain, I think it's quite obvious that independence is very, very important. It's also very important when you study other industries, so I think there's an opportunity there for not only the leaders to make sure the independence remains at the forefront of any healthcare reform.

But there's an opportunity for MAXIMUS to maintain its independence and we've been working very hard, not just this month, but for several years to best position MAXIMUM from an independence perspective. So we're happy with the position. We're delighted that it plays well into this very significant dynamic in healthcare reform. And then I think you get down into specific situations, and we do in fact see it playing out to our advantage.

I believe that we were the beneficiary of one recent award because we were independent. We do have one other situation where I think we're advantaged, and perhaps one other competitor is precluded, or maybe precluded, because of the independence situation. But more importantly, I think it's not a specific opportunity but rather just a global trend that's going to increase the demand for those firms that are independent in nature.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement