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H.S. junior Avg
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New words:
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Removed:
acceptable, accessing, accountable, achieve, achieved, achieving, acquirer, adequate, adequately, advance, adversely, Aid, Alliance, allocation, analogy, applying, arrangement, array, assessment, assist, assistance, assume, assumption, attract, began, brand, bring, broaden, burden, capitalization, capitalize, caption, CEO, CFO, combination, compete, competition, competitive, complementary, component, comprehensive, compromise, concentration, confidentiality, consisted, continuity, contracting, core, culture, deemed, dependence, desired, develop, developed, disaster, disease, downturn, easily, empower, enable, endeavor, enforce, enhance, enroll, environment, epidemic, establish, event, execute, expanding, expansion, expertise, extend, failure, FFS, foreseeable, fraction, gain, governance, governing, governmental, high, history, hopeful, implement, inability, inaccurate, infringing, integrate, integrity, intellectual, internally, interpretation, invalid, leadership, leading, leasehold, leasing, legislation, maintenance, matter, Michigan, nationally, objective, obtain, occurring, Ohio, online, operation, originated, outbreak, partially, participating, permitted, personnel, positive, President, preventing, promote, proper, properly, prospectively, protect, prove, publicity, receivable, referral, refund, renegotiation, renew, rent, rental, repair, represent, representative, reputation, requisite, resolution, retrospectively, RMD, RubiconMD, scale, selectively, sensitive, shift, short, small, software, sooner, specialist, specialty, spending, split, stated, strategically, streamline, successor, sufficient, test, timely, today, top, trade, traditional, transform, twelve, ultimate, underserved, unearned, uninterrupted, unsupportable, usage, vetting, viability, violating, virtual, wide, working, worldwide, wrong
Financial report summary
?Risks
- We have a history of net losses, we anticipate increasing expenses in the future, and we may not be able to achieve or maintain profitability.
- Our financial condition and results of operations have been and, we expect, will continue to be impacted by ongoing macroeconomic challenges, including labor shortages, supply chain disruptions and inflationary pressures, and an economic downturn or recession, could further adversely impact our business.
- COVID-19, or any other pandemic, epidemic or outbreak of an infectious disease in the United States or worldwide, could adversely affect our business.
- Our relatively limited operating history makes it difficult to evaluate our current business and future prospects.
- Our growth strategy may not prove viable, and we may not realize expected results.
- If we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service and patient satisfaction or adequately address competitive challenges.
- If we are unable to attract new patients, our revenue growth will be adversely affected.
- Our revenues and operations are dependent upon a limited number of key payors.
- We may be subject to legal proceedings and litigation, including intellectual property and privacy disputes, which are costly to defend and could materially harm our business and results of operations.
- The termination or non-renewal of the Medicare Advantage contracts held by the health plans with which we contract, or the termination or non-renewal of our contracts with those plans, could have a material adverse effect on our revenues and our operations.
- Changes in the payor mix of patients and potential decreases in our reimbursement rates as a result of consolidation among plans could adversely affect our revenues and results of operations.
- New physicians and other providers must be properly enrolled in governmental healthcare programs before we can receive reimbursement for their services, and there may be delays in the enrollment process.
- Reductions in Medicare reimbursement rates or changes in the rules governing the Medicare program could have a material adverse effect on our financial condition and results of operations.
- We primarily depend on reimbursements by third-party payors, as well as payments by individuals, which could lead to delays and uncertainties in the reimbursement process.
- Under most of our agreements with health plans, we assume some or all of the risk that the cost of providing services will exceed our compensation.
- Renegotiation, non-renewal or termination of capitation agreements with health plans could have a material adverse effect on our business, results of operations, financial condition and cash flows.
- Medicare’s risk adjustment payment system makes our revenues and profitability difficult to predict and could result in material adverse impacts to our adjustments to our results of operations.
- Our records and submissions to health plans and government payers may contain inaccurate or unsupportable information regarding risk adjustment scores of participants, which could cause us to overstate or understate our revenue and subject us to repayment obligations or penalties.
- Security breaches, loss of data and other disruptions could compromise sensitive information related to our business or our patients, or prevent us from accessing critical information and expose us to liability, which could adversely affect our business and our reputation.
- Disruptions in our disaster recovery systems or management continuity planning could limit our ability to operate our business effectively.
- Reductions in the quality ratings of the health plans we serve could have a material adverse effect on our business, results of operations, financial condition and cash flows.
- If our agreements or arrangements with certain of our licensed physicians who hold shares in our physician entities are deemed invalid under state law, including laws against the corporate practice of medicine, or federal law, or are terminated as a result of changes in state law, or if there is a change in accounting standards by the Financial Accounting Standards Board (“FASB”) or the interpretation thereof affecting consolidation of entities, it could have a material adverse effect on our consolidation of total revenues derived from such practices.
- If we are not able to maintain and enhance our reputation and brand recognition, including through the maintenance and protection of trademarks, our business and results of operations will be harmed.
- Our business depends on our ability to effectively invest in, implement improvements to and properly maintain the uninterrupted operation and data integrity of our information technology and other business systems.
- If we are unable to obtain, maintain and enforce intellectual property protection for our technology or if the scope of our intellectual property protection is not sufficiently broad, others may be able to develop and commercialize technology substantially similar to ours, and our ability to successfully commercialize our technology may be adversely affected.
- We are subject to litigation. If an unfavorable ruling were to occur, it could have a material adverse impact on us.
- If we are unable to protect the confidentiality of our trade secrets, know-how and other proprietary and internally developed information, the value of our technology could be adversely affected.
- Any restrictions on our use of, or ability to license, data, or our failure to license data and integrate third-party technologies, could have a material adverse effect on our business, financial condition and results of operations.
- Our use of “open source” software could adversely affect our ability to offer our services and subject us to possible litigation.
- We depend on our senior management team and other key employees, and the loss of one or more of these employees or an inability to attract and retain other highly skilled employees could harm our business.
- Our primary care centers are concentrated in Illinois, Michigan, Pennsylvania, Ohio and Texas, and we may not be able to successfully establish a presence in new geographic markets.
- Our management team has limited experience managing a public company.
- We lease all of our facilities and may experience risks relating to lease termination, lease expense escalators, lease extensions and special charges.
- If certain of our suppliers do not meet our needs, if there are material price increases on supplies, if we are not reimbursed or adequately reimbursed for drugs we purchase or if we are unable to effectively access new technology or superior products, it could negatively impact our ability to effectively provide the services we offer and could have a material adverse effect on our business, results of operations, financial condition and cash flows.
- Our corporate culture has contributed to our success, and if we cannot maintain this culture as we grow, we could lose the innovation, creativity and teamwork fostered by our culture and our business may be harmed.
- A failure to accurately estimate incurred but not reported medical expense could adversely affect our results of operations.
- Negative publicity regarding the managed healthcare industry generally could adversely affect our results of operations or business.
- State and federal efforts to reduce Medicaid spending could adversely affect our financial condition and results of operations.
- Our primary care centers may be negatively impacted by weather and other factors beyond our control.
- As a result of being a public company, we are obligated to develop and maintain proper and effective internal control over financial reporting in order to comply with Section 404 of the Sarbanes- Oxley Act. These internal
- controls may not be determined to be effective or our independent registered public accountants may issue an adverse opinion on these controls now that we are no longer an emerging growth company, all of which may adversely affect investor confidence in us and, as a result, the value of our common stock.
- The requirements of being a public company, particularly now that we are no longer an “emerging growth company,” may strain our resources and distract our management, which could make it difficult to manage our business.
- Our indebtedness and liabilities could limit the cash flow available for operations, or expose us to risks that could adversely affect our business, financial condition and results of operations.
- The conditional conversion feature of the Convertible Senior Notes, if triggered, may adversely affect our financial condition and operating results.
- Conversion of the Convertible Senior Notes may dilute the ownership interest of our stockholders or may otherwise depress the price of our common stock.
- The capped call transactions may affect the value of the Convertible Senior Notes and our common stock.
- We are subject to counterparty risk with respect to the capped call transactions.
- Certain provisions in the agreements governing our indebtedness may delay or prevent an otherwise beneficial takeover attempt of us.
- Our growth strategy is partially dependent upon our ability to identify and successfully complete acquisitions, joint ventures and other strategic partnerships and alliances.
- We may be unable to identify, purchase or integrate desirable acquisition targets, future acquisitions may be unsuccessful, and we may not realize the anticipated cost savings, revenue enhancements or other synergies from such acquisitions.
- We have a substantial amount of goodwill which could, in the future, become impaired and result in material non-cash charges to our results of operations.
- If we fail to adhere to all of the complex government laws and regulations that apply to our business, we could suffer severe consequences that could have a material adverse effect on our business, results of operations, financial condition, cash flows, reputation and stock price.
- If we are unable to effectively adapt to changes in the healthcare industry, including changes to laws and regulations regarding or affecting the U.S. healthcare reform, our business may be harmed.
- Our use, disclosure, and other processing of personally identifiable information, including health information, is subject to HIPAA and other federal and state privacy and security regulations, and our failure to comply with those regulations or to adequately secure the information we hold could result in significant liability or reputational harm and, in turn, a material adverse effect on our patient base and revenue.
- Laws regulating the corporate practice of medicine could restrict the manner in which we are permitted to conduct our business, and the failure to comply with such laws could subject us to penalties or require a restructuring of our business.
- If our agreements or arrangements with certain of our licensed physicians who hold shares in our physician groups or our affiliated physician groups are deemed invalid under state corporate practice of medicine and similar laws or federal law, or are terminated as a result of changes in state law, it could have a material impact on our results of operations and financial condition.
- If we lost the services of certain of our licensed physicians who hold shares in our physician groups for any reason, the contractual arrangements with our VIEs could be in jeopardy.
- The contractual arrangements we have with our VIEs is not as secure as direct ownership of such entities.
- We face inspections, reviews, audits and investigations under federal and state government programs and contracts. These audits could have adverse findings that may negatively affect our business, including our results of operations, liquidity, financial condition and reputation.
- Our income tax treatment has changed as a result of the restructuring transactions undertaken immediately prior to our IPO and our future effective income tax rates could be subject to volatility.
- We may incur certain tax liabilities attributable to our pre-IPO investors as a result of the restructuring transactions undertaken immediately prior to our IPO.
- We may incur certain tax liabilities attributable to the pre-IPO taxable income or taxable loss of Oak Street Health, LLC.
- We will not have control of any IRS audit or related proceeding pursuant to the Partnership Tax Audit Rules.
- The Lead Sponsors own a large portion of our common stock, and their interests may conflict with ours or yours in the future.
- The requirements of being a public company may strain our resources and distract our management, which could make it difficult to manage our business, particularly now that we are no longer an “emerging growth company.”
- Provisions of our corporate governance documents could make an acquisition of us more difficult and may prevent attempts by our shareholders to replace or remove our current management, even if beneficial to our shareholders.
- Our certificate of incorporation designates the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation that may be initiated by our shareholders, which could limit our shareholders’ ability to obtain a favorable judicial forum for disputes with us.
- An active, liquid trading market for our common stock may not be sustained.
- Our operating results and stock price may be volatile.
- Because we have no current plans to pay regular cash dividends on our common stock for the foreseeable future, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it.
- If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our shares or if our results of operations do not meet their expectations, our stock price and trading volume could decline.
- We may issue shares of preferred stock in the future, which could make it difficult for another company to acquire us or could otherwise adversely affect holders of our common stock, which could depress the price of our common stock.
Management Discussion
- Capitated revenue was $743.2 million for the three-months ended March 31, 2023, an increase of $237.1 million, or 47%, compared to $506.1 million for the three-months ended March 31, 2022. This increase was driven primarily by a 43% increase in total patients under capitated arrangements and an increase in capitated revenue rates of 3%. We recorded a reduction in capitated revenue of $2.7 million related to prior periods for the three-months ended March 31, 2023 compared to a $3.4 million of incremental capitated revenue as of the three-months ended March 31, 2022, as a result of patient retroactivity and changes in acuity adjustments in both periods. When excluding the prior period revenue for the three-months ended March 31, 2023 and 2022, the year over year capitated revenue rate per patient increased by approximately 4%.