R1 RCM Inc (RCM) 2024 Q2 法說會逐字稿

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the second-quarter 2024 R1 RCM, Inc., earnings conference call. (Operator Instructions).

感謝您的支持。我叫 Eric，今天我將擔任您的會議主持人。現在，我歡迎大家參加 2024 年第二季 R1 RCM, Inc. 收益電話會議。（操作員指令）。

I would now like to turn the call over to Evan Smith. Please go ahead.

現在我想把電話轉給埃文史密斯。請繼續。

Thank you, operator. Certain statements made during this call may be considered forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, any statements about our future growth plans and performance, statements about the impacts of recent cyberattacks including the Change Healthcare and Ascension cyberattacks on our business and financial results, our strategic and cost-saving initiatives, our liquidity position, our integration, our growth opportunities, our future financial performance are forward-looking statements. These statements are often identified by the use of words such as anticipate, believe, estimate, intend, design, may, plan, project, would and similar expressions or variations. Investors are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements made on today's call involve risks and uncertainties. While we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law.

謝謝您，接線生。根據 1995 年私人證券訴訟改革法案的安全港條款，本次電話會議中所做的某些聲明可能被視為前瞻性聲明。特別是，任何有關我們未來成長計畫和績效的陳述，有關最近的網路攻擊（包括 Change Healthcare 和 Ascension 網路攻擊）對我們的業務和財務結果、我們的策略和成本節約舉措、我們的流動性狀況、我們的整合、我們的成長機會、我們未來財務業績的影響的陳述都是前瞻性陳述。這些陳述通常透過使用諸如預期、相信、估計、打算、設計、可能、計劃、預計、將會等詞語以及類似的表達或變體來識別。提醒投資者不要過度依賴此類前瞻性陳述。今天電話會議上所做的所有前瞻性陳述都涉及風險和不確定性。雖然我們可能選擇在未來某個時間點更新這些前瞻性陳述，但目前我們無意這樣做，除非適用法律要求。

Our actual results and outcomes may differ materially from those included in these forward-looking statements as a result of various factors including but not limited to, the completion of the take-private transaction announced on August 1, 2024 on anticipated terms and timing or at all; breaches or failures of our vendors' information security measures or unauthorized access to a customer's data; disruptions in or damages to our global business service centers, third-party operated data centers or other services provided by other third parties, economic downturns and market conditions beyond our control including high inflation; the quality of global financial markets; our ability to timely and successfully achieve the anticipated benefits and potential synergies of the acquisitions of Cloudmed and Acclara; our ability to retain existing customers or acquire new customers; the development of markets for our revenue cycle management offering; variability in the lead time of prospective customers; delayed or unsuccessful implementation of our technologies, including AI; competition with the market; and the factors discussed under the heading Risk Factors in our most recent annual report on Form 10-K.

由於各種因素，我們的實際結果和成果可能與這些前瞻性陳述中的結果和成果有重大差異，包括但不限於 2024 年 8 月 1 日宣布的私有化交易是否按預期條款和時間完成或完全完成；我們的供應商的信息違反或失敗或未經授權訪問客戶的數據；我們的全球業務服務中心、其他通貨膨脹的數據中心實現收購 Cloudmed 和 Acclara 的預期收益和潛在協同效應的能力；我們留住現有客戶或獲取新客戶的能力；為我們的收入周期管理產品開發市場；潛在客戶交貨時間的變化；我們的技術（包括人工智能）實施延遲或失敗；與市場的競爭；以及我們最新的 10-K 表格年度報告中“風險因素”標題下討論的風險因素。

Certain results will be referenced on this call may be rounded to the nearest whole number. We will also be referencing non-GAAP metrics on this call. For reconciliation of non-GAAP metrics to the most closely comparable GAAP metrics, please refer to our press release.

本次通話中引用的某些結果可能會四捨五入為最接近的整數。我們也會在本次電話會議上參考非 GAAP 指標。有關非 GAAP 指標與最接近的 GAAP 指標的對照表，請參閱我們的新聞稿。

As a reminder, last week, we announced the execution of the definitive agreement with TowerBrook and CD&R, where the two firms will acquire all the outstanding common stock of the company that TowerBrook does not currently own. In light of the pending transaction, we are not providing guidance for 2024 or taking questions following our prepared remarks.

提醒一下，上週，我們宣布與 TowerBrook 和 CD&R 達成最終協議，兩家公司將收購 TowerBrook 目前未擁有的該公司所有流通普通股。鑑於尚未完成的交易，我們不會提供 2024 年的指導，也不會在準備好的發言後回答問題。

Now let me turn the call over to Lee. Lee, go ahead.

現在讓我把電話轉給李。李，繼續。

Thank you, Evan, and good morning, everyone. As indicated in our press release, we delivered strong operational results and continue to advance our technology transformation, while addressing the impacts resulting from the cyberattack on one of our largest customers as well as the Change Healthcare outage.

謝謝你，埃文，大家早安。正如我們的新聞稿中所指出的，我們取得了強勁的營運業績，並繼續推進我們的技術轉型，同時解決了針對我們最大的客戶之一的網路攻擊以及 Change Healthcare 中斷所造成的影響。

Underlying business trends are positive, resulting in approximately $628 million in revenue and $156 million in adjusted EBITDA for the second quarter. Before I provide more detail on our progress in the quarter, I want to reinforce our commitment and belief in our position in a growing industry and our strategy to be the platform of choice for providers.

基本業務趨勢良好，第二季營收約 6.28 億美元，調整後 EBITDA 為 1.56 億美元。在我提供有關本季度進展的更多細節之前，我想強調我們對自己在成長型行業中的地位以及成為供應商首選平台的策略的承諾和信念。

We operate with the most scale of any technology and service provider in our space. We currently serve over 90 of the top 100 health systems and over 500 customers. The breadth of data we access, the power of our technology platform and our unmatched global scale enables our teams to deliver best-in-class unit economics, increased revenue yields, and improved patient satisfaction, which are the main value drivers for our customers.

我們的營運規模在我們的領域內是所有技術和服務提供者中最大的。我們目前為全球 100 家頂級醫療系統中的 90 多家以及 500 多家客戶提供服務。我們所訪問的數據的廣度、我們技術平台的強大功能以及我們無與倫比的全球規模使我們的團隊能夠提供一流的單位經濟效益、更高的收入收益和更高的患者滿意度，這些都是我們客戶的主要價值驅動力。

As evidenced by response to recent events, the company demonstrated its significant operational agility and scale, the ability to drive rapid deployment of high-impact technologies, and our close collaborative relationships with our customer organizations. We believe our customer-centric approach and continued innovation around Gen AI will keep R1 at the forefront of the industry and support our continued growth.

從對最近事件的回應可以看出，該公司展示了其顯著的營運靈活性和規模、推動高影響力技術快速部署的能力以及與客戶組織的密切合作關係。我們相信，以客戶為中心的方法和圍繞 Gen AI 的持續創新將使 R1 保持行業領先地位並支持我們的持續成長。

Now let me shift to execution on our priorities during the first half of the year. First, operational execution. First, let me cover the onboarding of our largest new end-to-end customer. The customer's leadership team has been very supportive to execute a seamless transition to R1. I am pleased to report that we successfully completed the onboarding of over 1,900 associates over the last several weeks and are on track to begin ramping revenue in the second half of the year.

現在，讓我談談上半年重點工作的執行情況。一是行動執行。首先，讓我介紹一下我們最大的新端到端客戶的入職情況。客戶的領導團隊非常支持實現向 R1 的無縫過渡。我很高興地報告，我們在過去幾週內成功完成了 1,900 多名員工的入職培訓，並預計在今年下半年開始增加收入。

These team members are continuing to perform outstanding work implementing our technology. We are using an onboarding playbook that has been successful with our other large acute customers, which gives us confidence in our ability to achieve the operational and financial objectives we stated for this contract.

這些團隊成員正在繼續出色地實施我們的技術。我們正在使用已在其他大型急性客戶中成功實施的入職手冊，這使我們對實現本合約中規定的營運和財務目標的能力充滿信心。

The integration of Acclara continues to progress. We are impressed with the team as we continue to advance opportunities to integrate the business into our existing offerings. We believe we are at or ahead of our integration timeline, and we remain confident in our ability to achieve our stated synergy objectives.

Acclara 的整合工作正在持續進行中。我們對該團隊印象深刻，因為我們將繼續推進將業務整合到現有產品中的機會。我們相信，我們已達到或提前完成了整合時間表，並且我們仍然對實現既定協同目標的能力充滿信心。

While focused on the integration, we also have a disciplined approach to our commercial strategy and are actively meeting with the Acclara customer base, which we believe will provide additional cross-selling opportunities to support our growth going forward.

在專注於整合的同時，我們也對商業策略採取了嚴謹的態度，並積極與 Acclara 客戶群會面，我們相信這將提供額外的交叉銷售機會，以支持我們未來的成長。

Last, I want to provide some color surrounding R1's operations related to the Ascension cyberattack announced in early May. Given we are deeply embedded across Ascension's revenue cycle operations, our operating and technology teams mobilized quickly. Our priority from the outset has been patient safety and care continuity combined with the security of R1 systems.

最後，我想提供一些與 5 月初宣布的 Ascension 網路攻擊有關的 R1 行動的詳細資訊。鑑於我們深深融入 Ascension 的收入周期運營，我們的營運和技術團隊迅速動員起來。從一開始，我們的首要任務就是將病人的安全和照護的連續性與 R1 系統的安全性結合。

After disconnecting from the systems, we implemented downtime procedures across all functions during the outage. These manual processes have resulted in hundreds of thousands of paper registrations and corresponding clinical records, which need to be loaded into the electronic systems. We are happy to report that we have reconnected past systems, and we expect to gradually resume normal operations over the coming weeks.

斷開系統連接後，我們在停機期間對所有功能實施了停機程序。這些手動流程產生了數十萬份紙本登記和相應的臨床記錄，需要將其加載到電子系統中。我們很高興地報告，我們已經重新連接了過去的系統，並預計在未來幾週內逐步恢復正常運作。

We have brought in additional resources to assist in backlog resolution, including scanning paper documentation, coding outstanding claims, and cash posting. These additional costs began in the second quarter and are expected to continue throughout the remainder of the year. We believe our dedicated approach to operational continuity and recover in support of our customers bolsters our position as the leading revenue cycle partner in the industry.

我們引入了額外的資源來協助解決積壓問題，包括掃描紙本文件、編碼未決索賠和現金過帳。這些額外成本從第二季開始出現，預計將持續到今年剩餘時間。我們相信，我們致力於為客戶提供營運連續性和恢復支持，鞏固了我們作為行業領先收入周期合作夥伴的地位。

Now let me move to our second priority, growth. We continue to execute on our growth plan, including new modular bookings and expanding new opportunities in our end-to-end pipeline. The end-to-end pipeline consists of a diverse selection of mid- to large-sized health systems who have engaged deeply with our commercial teams to explore partnership opportunities.

現在讓我談談我們的第二個優先事項：成長。我們將繼續執行我們的成長計劃，包括新的模組化預訂和擴大端到端通路的新機會。端到端通路由多種選擇的中型到大型醫療系統組成，這些系統與我們的商業團隊深入合作，探索合作機會。

In addition to adding to our 500-plus customer base, we continue to have success cross-selling within our core customer base. A notable example this quarter included an expansion with a long-standing transfer DRG validation customer.

除了擴大我們超過 500 個的客戶群之外，我們還繼續在核心客戶群中成功進行交叉銷售。本季度的一個顯著例子包括與長期轉移 DRG 驗證客戶的擴展。

During the quarter, we added charge capture and underpayment solutions, which are anticipated to add several million dollars in additional annual revenue. We are also gaining traction with our functional model through successful onboardings, new bookings and continued interest in this solution.

在本季度，我們增加了費用捕獲和欠款解決方案，預計將增加數百萬美元的年收入。我們還透過成功的入職培訓、新的預訂以及對該解決方案的持續興趣，使我們的功能模型獲得了關注。

Last quarter, we mentioned an expansion with a $400 million NPR regional hospital for inpatient clinical denials, and that we were in discussions for additional opportunities, including a managed service or functional partnership deal for our CDI Total Performance solution offering. During the quarter, we expanded this relationship by signing the CDI functional partnership and adding coding and denials management -- modular solutions.

上個季度，我們提到與一家價值 4 億美元的 NPR 地區醫院進行擴建，以治療住院臨床拒絕患者，並且我們正在討論更多機會，包括為我們的 CDI 全面性能解決方案提供託管服務或功能合作協議。在本季度，我們透過簽署 CDI 功能合作夥伴關係並添加編碼和拒絕管理（模組化解決方案）來擴展這種關係。

We believe this example demonstrates the long runway for growth within our core base, and we are in discussions to further expand this relationship to include three additional modular solutions.

我們相信這個例子證明了我們的核心基礎具有長期的成長空間，我們正在討論進一步擴大這種關係以包括另外三個模組化解決方案。

Finally, we are executing on our technology road map. In June, Steve Albert and Brian Gambs, our Chief Product and Chief Technology Officers shared top priorities with investors, which includes further development of our platform, AI and automation as well as new solution innovation. With access to a large-scale data ecosystem, technology remains a cornerstone of our strategy, which we believe will enable R1 to drive down costs, improve revenue yield and enable patient satisfaction.

最後，我們正在執行我們的技術路線圖。6 月，我們的首席產品長 Steve Albert 和技術長 Brian Gambs 與投資者分享了首要任務，包括進一步開發我們的平台、人工智慧和自動化以及新的解決方案創新。透過連結大規模資料生態系統，科技仍然是我們策略的基石，我們相信這將使 R1 能夠降低成本、提高收入效益並提高病患滿意度。

First, our platform is the foundation for how we are able to drive operational efficiencies and increase user satisfaction for our employee base while also improving customer results. You heard the team discuss our modernization efforts, which started with our cloud migration. We believe these infrastructure improvements allow us to scale with a high degree of reliability, which is increasingly important given our data ecosystem.

首先，我們的平台是我們提高營運效率、增加員工用戶滿意度以及改善客戶結果的基礎。您聽到團隊討論了我們的現代化努力，這項工作從雲端遷移開始。我們相信，這些基礎設施的改進使我們能夠以高度的可靠性進行擴展，這對於我們的資料生態系統來說變得越來越重要。

Second, our use of advanced technologies, including Generative AI and Intelligent Automation continues to transform many aspects of work performed by our associates. We are focused on AI assistance, AI-infused task automation and enhanced self-service. Last quarter, you heard us discuss our automated clinical appeals application, which assists our clinical experts by reading medical records for clinically denied claims and then drafting an appeal.

其次，我們對生成式人工智慧和智慧自動化等先進技術的使用不斷改變著員工所從事工作的許多方面。我們專注於人工智慧輔助、人工智慧任務自動化和增強自助服務。上個季度，您聽到我們討論了我們的自動臨床申訴應用程序，該應用程式透過閱讀臨床拒絕索賠的醫療記錄然後起草申訴來協助我們的臨床專家。

This reduced this time spent by our team members by 75% from one hour down to 15 minutes. In addition, we continually add task automation to some of the most complex problems in revenue cycles, such as prior auth. We believe this multistep process has the potential to save providers up to $20 billion annually in the long term by preventing care delays and reducing the time spent for requests.

這使得我們團隊成員所花費的時間減少了 75%，從 1 小時減少到 15 分鐘。此外，我們不斷為收入週期中一些最複雜的問題添加任務自動化，例如事先授權。我們相信，從長遠來看，這個多步驟流程可以避免護理延誤並減少請求所花費的時間，從而每年為醫療服務提供者節省高達 200 億美元的開支。

Lastly, we continue to leverage our data, scale and expertise to develop new products and ways to serve our customers. Recent examples include insurance discovery, modular coding and patient receivable solutions, each of which enables lower cost and expands revenue for our providers. Our commercial team has started discussing these solutions with providers, and we anticipate our results to further assist in future bookings and revenue growth for R1.

最後，我們將繼續利用我們的數據、規模和專業知識來開發新產品和新方式來服務我們的客戶。最近的例子包括保險發現、模組化編碼和患者應收款解決方案，每個解決方案都能降低成本並擴大我們的供應商的收入。我們的商業團隊已經開始與供應商討論這些解決方案，我們預計我們的結果將進一步幫助 R1 未來的預訂和收入成長。

In summary, we believe our vision to be the automation platform of choice for the provider industry is clear and achievable. Our strategy to meet providers where they are in their needs today matches a large and growing market, and we expect will help us continue to grow and further diversify our business. Lastly, our value proposition to the provider industry is strong, combining technology, global scale and the best people in the industry.

總之，我們相信，成為供應商產業首選的自動化平台的願景是明確且可實現的。我們的策略是滿足供應商當前的需求，這與龐大且不斷增長的市場相匹配，我們期望這將幫助我們繼續發展並進一步實現業務多元化。最後，我們對供應商產業的價值主張是強大的，結合了技術、全球規模和產業中最優秀的人才。

Thank you. And with that, I'll turn the call over to Jennifer to discuss our quarterly financials.

謝謝。說完這些，我將把電話轉給詹妮弗，討論我們的季度財務狀況。

Thank you, Lee, and good morning, everyone. Our second quarter financial results continue to demonstrate the strength of our underlying business and the progress we are making against our financial objectives. Despite the impact of recent disruptions related to both Change Healthcare and Ascension outages, our underlying business continues to perform ahead of our expectations.

謝謝你，李，大家早安。我們第二季的財務表現繼續證明了我們基礎業務的實力以及我們在實現財務目標方面所取得的進展。儘管最近 Change Healthcare 和 Ascension 中斷造成了影響，但我們的基礎業務表現仍然超出我們的預期。

We delivered solid results in the second quarter with revenue of $627.9 million and adjusted EBITDA of $156.1 million, demonstrating our continued cost discipline as well as operational and technology-driven initiatives to further enhance our global capabilities and infrastructure.

我們在第二季度取得了穩健的業績，營收為 6.279 億美元，調整後 EBITDA 為 1.561 億美元，這表明我們持續嚴格控製成本，並採取營運和技術驅動舉措，進一步增強我們的全球能力和基礎設施。

Total revenue grew by 12% year-over-year, primarily driven by the contribution of Acclara and continued growth in our Modular business. This was partially offset by our previously disclosed customer attrition in our physician customer base and impact of facility divestitures. Net operating fees of $374.6 million grew approximately 5% or $16.8 million year-over-year. This was primarily driven by the contribution of Acclara as well as slightly better-than-expected volumes in our enterprise customer base. This was partially offset by the previously mentioned attrition and divestitures.

總營收年增 12%，主要得益於 Acclara 的貢獻以及模組化業務的持續成長。這部分被我們先前揭露的醫生客戶群中的客戶流失和設施剝離的影響所抵消。淨營業費用為 3.746 億美元，年增約 5% 或 1,680 萬美元。這主要是由於 Acclara 的貢獻以及我們企業客戶群的交易量略優於預期。這部分被前面提到的人員流失和資產剝離所抵銷。

Incentive fees were $21.7 million. This was slightly below our expectations, primarily due to a $4 million impact related to the outages. This incident negatively impacted balance sheet metrics related to cash and A/R measured at the end of the quarter.

獎勵費用為 2170 萬美元。這略低於我們的預期，主要是由於停電造成的 400 萬美元的影響。這一事件對季度末衡量的現金和應收帳款相關的資產負債表指標產生了負面影響。

Our Modular and Other revenue of $231.6 million grew by 35% or approximately $60 million year-over-year, primarily driven by the addition of Acclara revenues as well as continued growth in our Modular business from the expansion of services to existing customers and new customer contracts.

我們的模組化和其他收入為 2.316 億美元，比去年同期增長 35% 或約 6000 萬美元，這主要得益於 Acclara 收入的增加以及模組化業務通過向現有客戶提供服務和簽訂新客戶合約而持續增​​長。

Turning to expenses for the quarter. Non-GAAP cost of services in Q2 was approximately $421 million, up roughly $57 million year-over-year, primarily related to the inclusion of Acclara. Excluding the impact of Acclara, cost of services was flat as investments in technology were offset by reductions in operational costs in our Physician business to align to the lower revenue in that business.

談到本季的開支。第二季非公認會計準則服務成本約 4.21 億美元，較去年同期增加約 5,700 萬美元，主要與 Acclara 的納入有關。排除 Acclara 的影響，服務成本持平，因為技術投資被我們醫生業務的營運成本降低所抵消，以適應該業務的較低收入。

Non-GAAP cost of services also included approximately $4 million of incremental operational expenses incurred in the second quarter to assist with both Ascension and Change Healthcare cyberattacks. Non-GAAP SG&A expenses were $50.8 million, down approximately $3 million from the prior year.

非公認會計準則服務成本還包括第二季為協助應對 Ascension 和 Change Healthcare 網路攻擊而產生的約 400 萬美元的增量營運費用。非公認會計準則銷售、一般及行政費用為 5,080 萬美元，較上年減少約 300 萬美元。

Expenses related to the Acclara acquisition were more than offset by lower allowances for credit losses. Other non-GAAP SG&A expenses remained essentially flat year-over-year and compared to the first quarter of the year.

與 Acclara 收購相關的費用被較低的信貸損失準備金所抵消。其他非公認會計準則銷售、一般及行政費用與去年同期及今年第一季相比基本持平。

Our adjusted EBITDA for the quarter was $156.1 million, which was slightly ahead of our internal expectations even after the impact from the incidents we mentioned for the quarter. Our continued focus on cost discipline and operational initiatives to enhance performance across the organization helped mitigate the revenue impact and additional costs related to both Change Healthcare and Ascension cyber events that the industry has experienced this year.

本季我們的調整後 EBITDA 為 1.561 億美元，即使受到我們在本季度提到的事件的影響，這一數字仍略高於我們的內部預期。我們持續專注於成本紀律和營運舉措，以提高整個組織的績效，有助於減輕今年行業經歷的 Change Healthcare 和 Ascension 網路事件對收入的影響和額外成本。

Lastly, we incurred $34.3 million in Other expenses. This included $14 million of integration-related costs, including severance related to actions announced with the Acclara integration. Other expenses included $6.3 million related to a one-time vendor termination fee now that our migration to cloud services is essentially complete. We also incurred approximately $8 million in advisory fees related to the special committee strategic review process we previously disclosed.

最後，我們發生了 3,430 萬美元的其他費用。其中包括 1,400 萬美元的整合相關成本，包括與 Acclara 整合宣布的行動相關的遣散費。由於我們向雲端服務的遷移已基本完成，其他費用包括 630 萬美元的一次性供應商終止費用。我們還產生了約 800 萬美元的與先前披露的特別委員會策略審查流程相關的諮詢費。

Now let me provide a couple of comments on cash flow and the balance sheet. Cash and cash equivalents at the end of June were $163 million compared to $173.6 million at the end of December. For the quarter, we generated $36.8 million in cash from operations. Net debt at the end of the quarter was $2.1 billion and includes a paydown of the $75 million in revolver that we borrowed in early April related to the Change Healthcare incident. Our liquidity continues to remain strong with approximately $682 million at the end of June, both from cash on our balance sheet and borrowing capacity on our revolver.

現在，讓我就現金流和資產負債表發表幾點評論。6 月底的現金和現金等價物為 1.63 億美元，而 12 月底為 1.736 億美元。本季度，我們的經營活動產生了 3,680 萬美元的現金。本季末的淨債務為 21 億美元，其中包括 4 月初因 Change Healthcare 事件而藉入的 7,500 萬美元循環信貸的償還。我們的流動性持續保持強勁，截至 6 月底約為 6.82 億美元，既來自資產負債表上的現金，也來自循環信貸的借貸能力。

In light of the transaction announced last week and as Evan also mentioned earlier, we will not be providing guidance for 2024. However, I do want to provide some color on our expectations for the second half of the year related to the impact of the Ascension cybersecurity incident. We expect the full-year revenue impact of the Ascension outage to be between $75 million to $95 million. Most of this impact is expected to be a delay in timing of revenue from the second half of 2024 into the first half of 2025. The majority of the impact will be seen in our net operating fees or base fees based on timing of cash collections.

鑑於上周宣布的交易，正如 Evan 之前提到的，我們將不會提供 2024 年的指導。不過，我確實想就 Ascension 網路安全事件的影響對下半年的預期提供一些資訊。我們預計 Ascension 停電對全年收入的影響將在 7,500 萬至 9,500 萬美元之間。預計最主要的影響是收入到帳時間從 2024 年下半年延後到 2025 年上半年。大部分影響將體現在我們的淨營運費用或基於現金收款時間的基本費用。

As a reminder, our base fees lag the timing of cash collections. So, any cash collected by Ascension after August will be recovered in our 2025 net operating fees. Although less material, we also expect some impact to our modular and other fee revenue as Ascension does contract for some of our modular solutions and was unable to transmit volumes to our platform during their outage.

提醒一下，我們的基本費用是落後於現金收取的時間。因此，Ascension 8 月之後收取的任何現金都將在我們的 2025 年淨營運費用中收回。儘管影響不大，但我們預計模組化和其他費用收入也會受到一定影響，因為 Ascension 確實簽訂了我們的一些模組化解決方案合同，並且在其中斷期間無法將數據量傳輸到我們的平台。

We will also see an increase in expenses related to the Ascension outage. We expect to incur $10 million to $15 million in incremental cost in the second half of the year. We expect this will mostly be driven by overtime and incremental labor as we have added several hundred onshore contractors on-site across many facilities of Ascension to assist in the backlog of paperwork created from manual processing. This effort is critical to recover the backlog of claims accumulated during the outage.

我們還將看到與 Ascension 停電相關的費用增加。我們預計今年下半年將產生 1,000 萬至 1,500 萬美元的增量成本。我們預計這將主要由加班和增量勞動力推動，因為我們已在 Ascension 的許多設施現場增加了數百名岸上承包商，以協助處理因手動處理而產生的積壓文書工作。這項工作對於恢復停電期間累積的索賠至關重要。

Through our large network of third-party partners, we were able to assist in rapid deployment of talent to locations in need of help. This is a testament to our scale and ability to serve our customers. We also expect to incur some technology costs to ensure all systems are fully recovered, secure and operating effectively.

透過我們龐大的第三方合作夥伴網絡，我們能夠協助快速將人才部署到需要幫助的地方。這證明了我們的規模和服務客戶的能力。我們也預計會產生一些技術成本，以確保所有系統完全恢復、安全並有效運作。

While the impact of the Ascension outage will create a significant impact on our near-term financials in the second half of 2024, we do not expect that the outage will create a long-term impact to the core operations and results of our business. We believe that most of the recovery will occur in 2025 and that the business will return to normal cash collection cycles over the course of the 2025 calendar year.

雖然 Ascension 中斷的影響將對我們 2024 年下半年的近期財務狀況產生重大影響，但我們預計此次中斷不會對我們業務的核心營運和業績產生長期影響。我們相信，大部分復甦將發生在 2025 年，且業務將在 2025 日曆年內恢復正常的現金收款週期。

Ascension plays an important part of US healthcare and is R1's largest customer. We are committed to partnering with them through their recovery efforts to ensure they are able to continue to serve patients across all of their care settings. Our employees have worked tirelessly around the clock over the last few months to support Ascension through both the outage and the recovery process.

Ascension 在美國醫療保健中發揮著重要作用，也是 R1 最大的客戶。我們致力於在他們的康復過程中與他們合作，以確保他們能夠繼續為所有護理環境中的患者提供服務。在過去的幾個月裡，我們的員工日以繼夜地工作，為 Ascension 提供停機和恢復過程的支援。

I'm incredibly proud of the work we have done, and I want to personally thank our over 33,000 global employees for remaining focused on serving our customers. In closing, we had a good quarter, and we're very pleased with the work we are doing on behalf of our customers.

我對我們所做的工作感到無比自豪，並要親自感謝我們全球 33,000 多名員工始終專注於服務我們的客戶。最後，我們度過了一個良好的季度，我們對為客戶所做的工作感到非常滿意。

The customer and vendor cyber events this year have proven the value that we provide to the healthcare industry. Providers need our services, scale and technology more than ever, and we remain focused on the opportunities in front of us. We look forward to continuing to deliver excellent results to our customers throughout the remainder of the year.

今年的客戶和供應商網路事件證明了我們為醫療保健產業提供的價值。供應商比以往任何時候都更需要我們的服務、規模和技術，我們將繼續專注於眼前的機會。我們期待在今年剩餘時間繼續為客戶提供卓越的成果。

Thank you, everyone, for joining. Operator, I will now turn the call back over to you.

謝謝大家的參與。接線員，我現在將電話轉回給您。

Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入，現在可以斷開連線了。