DocGo (NASDAQ:DCGO) outlined its planned acquisition of virtual acute-care provider Hicuity Health, describing the transaction as a step toward building a connected care platform spanning hospital-based services, medical transportation, in-home care and remote monitoring.
Chief Executive Officer Lee Bienstock said the combination is intended to help health systems manage increasing patient demand, clinician shortages and financial pressure. He cited the growth of the U.S. population age 65 and older, projected shortages of nurses and physicians, and increased use of telehealth among physicians as factors supporting demand for integrated care-delivery models.
Hicuity’s Business and Financial Profile
On a trailing 12-month basis, Hicuity generated about $65 million in revenue and $4.5 million in adjusted EBITDA, Clegg said. Its largest service lines include Tele-ICU, virtual nursing and remote telemetry monitoring.
During the question-and-answer session, Clegg said Hicuity’s revenue had been relatively flat year over year at roughly $65 million, as growth in newer service lines offset non-renewals in its ICU service line. Of that revenue, she said approximately $29 million came from ICU services, $20 million from Hospital at Home services, and $14 million from telemetry and vital-sign monitoring.
Hicuity’s Hospital at Home business has been growing, according to Clegg. She said one customer accounts for most of that revenue and expanded 20% year over year. Hicuity supports four regions of that customer’s Hospital at Home program by providing virtual nursing for acute patients.
The company’s proprietary Hicuity Health HUB integrates hospital electronic medical records, bedside devices, audio and video communications, clinical alerts and care-team workflows. Dr. John Kazianis, Hicuity’s vice president and senior medical director, said the platform is designed to provide clinicians visibility into patient needs, coordinate workflows and measure service performance and clinical outcomes.
Transaction Terms and Financing
Under the merger agreement, DocGo plans to acquire Hicuity primarily by assuming $52 million of Hicuity debt held by Perceptive Advisors. The debt matures in December 2029 and bears interest at the Secured Overnight Financing Rate, or SOFR, plus 7.5 percentage points.
DocGo also plans to issue 2% of its fully diluted common stock at closing to Hicuity preferred shareholder Concord Health Partners. Concord could receive an additional 3.5% of DocGo common stock if DocGo’s market capitalization reaches $250 million within three years after closing, subject to the agreement’s terms.
Perceptive has committed up to $50 million in additional debt financing on similar terms. Bienstock said the first $12.5 million tranche was expected to be funded in connection with the effectiveness of a master services agreement with Hicuity, while another $12.5 million would be available at closing. The remaining $25 million could be accessed through 2027 if DocGo maintains at least $130 million in trailing 12-month mobile health revenue.
The company was targeting a November closing, subject to completion of a state filing. Bienstock said DocGo’s first priority following closing would be continuity of service for customers, clinicians and patients.
Integration Plans and Expected Savings
DocGo identified approximately $4.3 million in annual cost savings opportunities, with additional potential savings still under review. The identified opportunities include:
- Approximately $2.3 million from clinical productivity and staffing optimization;
- About $1.5 million from clinical leadership and organizational changes; and
- Roughly $500,000 from optimizing operating facilities and footprint.
Bienstock said some savings could begin to accrue in the first quarter of 2027, while the full identified amount was expected to come into effect during the back half of the year. The company also plans to assess savings across procurement, vendors, insurance, technology and workflows.
DocGo expects to integrate back-office systems, including internal workflows, cloud hosting, IT support, licensing and human-resources infrastructure, more quickly. Customer-facing technology platforms, including Hicuity’s HUB and DocGo’s logistics platform, are expected to remain separate initially while the company develops a longer-term integration roadmap.
Hospital-to-Home Strategy
Bienstock said Hicuity’s virtual acute-care capabilities complement DocGo’s medical transportation, mobile health, remote monitoring and virtual-care offerings. The envisioned model would allow Hicuity clinicians to support patients while they are in the hospital, with DocGo coordinating transportation at discharge, conducting home visits and providing remote monitoring where appropriate.
The companies have already begun exploratory discussions with customers, according to Bienstock. He said DocGo has discussed bringing Hicuity’s Tele-ICU services to a long-term medical transportation customer with staffing challenges at rural locations. Separately, the company has discussed offering DocGo mobile-health services to a large Hicuity health-system customer.
Hicuity’s contracts generally have initial terms of two to three years, with some longer arrangements and automatic renewal provisions, Clegg said. Over a 10-year period, the company has maintained a renewal rate in the mid-80% range. Hicuity generally charges customers on a per-bed, per-patient or shift-rate basis and does not bear professional-fee reimbursement risk.
Bienstock pointed to DocGo’s October 2025 acquisition of SteadyMD as a model for the Hicuity integration. He said SteadyMD telehealth volume rose 60% from the fourth quarter of 2025 through the second quarter of 2026, while clinical headcount increased from 499 at year-end to 866 as of Sept. 14. DocGo expects SteadyMD revenue of approximately $36 million in 2026, compared with roughly $25 million of trailing-12-month revenue at acquisition.
About DocGo (NASDAQ:DCGO)
DocGo Inc (NASDAQ: DCGO) is a healthcare services and technology company that delivers medical care and transportation outside traditional clinical settings. Its platform combines mobile clinical services, technology-enabled care coordination and non-emergency medical transportation to help healthcare providers, government agencies, insurers and employers serve patients in their homes and communities.
The company’s services include ambulance and non-emergency medical transportation, mobile primary and urgent care, remote patient monitoring, diagnostic testing, vaccination programs and community-based healthcare.
