BHG - Earnings call transcript Q2 2021

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Operator

Good morning, and welcome to the Bright Health Group Second Quarter 2021 Earnings Conference Call and Webcast. [Operator instructions] As a reminder, this call is being recorded. Leading the call today is Bright Health Group President and CEO Mike Mikan, and Chief Financial and Administrative Officer Cathy Smith.

Before we begin, we want to remind you that this call may contain forward-looking statements under U.S. federal securities laws. to differ uncertainties or materially subject actual could present are to results from statements risks that and cause expectations. These historical experience can our reports of found Commission, the including description some factors the periodic Exchange and A included filings. risk in of Securities and in and we that uncertainties the the filed current with risks be and This call will also measures. reference non-GAAP amounts company's non-GAAP A measures the press GAAP the on to second reconciliation release. of available are quarter release call XXXX, Information page morning contained accessed is issued presented earnings X-K X, this company's in the August from this which Form our website. on on the Relations and in be the dated Investor can turn Bright Executive the now to over Officer will Health the Mikan. of Mike Chief I Group, conference

Mike Mikan

inaugural detailed share cover it couldn't more pass the After we will our Bright I I our take mission Good morning. And a outlook by on on and thank details your continued well at wanted remarks, you year-to-date year our more to our vision. Group's call. excited for before growth be earnings touching for performance, questions. to Health. business, who will performance, as few start Health joining our our momentum as to a and and review Cathy, I of Bright

States. Group in is forecasting change billion. a demonstrating Health the of significant We at better our day. than the with we to the of each integrated of Making cost are are And care mission that XXXX diversification. at core. we can Health and healthcare needed local care, delivery NeueHealth a $X United level, that, connecting at healthcare is we deliver for resources by and the Bright national Health Group healthcare well its And on way best healthcare revenue all on company Both Care building greater because is lower built what Bright growth of belief Bright at consumers. financing system and a to the outcomes our in together do central Bright Health are aligning to right,

the consumers HealthCare growth As Advantage of second Commercial total a and with XXX,XXX across enter we business. of seen XXXX, Medicare diverse our has customer currently nearly lines and tremendous half base serves Bright

business based Our and total and arrangements growth NeueHealth with under seen clinics served also affiliated value own owned our has XXX,XXX remarkable XXX through care patients nearly primary clinics.

keep XXXX served, discuss XX,XXX in we to demonstrated state of business, approximately you members As members. mind. we our unmatched current with commercial five XXX,XXX I'd XXX,XXX members themes ended HealthCare the Bright like One, Advantage have and key all growth. Medicare

of been XX% to our half XXX,XXX cost second to XXX%. explosive have to of ability we consistent performance. capabilities utilization As price ratio XXXX, an is are HealthCare through systems Two, the our our is Critical of care. our market. model with within adjusted XXXX. structure enterprise in demonstrate of of an cost ability end served Critical this Bright Three, able model's in-network to differentiation the first across we measure we nearly each driving in drive growth, have consumers, of our to our integrated the NeueHealth. delivered quarter during medical to and below Even increase underlying our

business NeueHealth been have Health. We Bright our beginning building since the of

for represents care NeueHealth our manages NeueHealth is the branded DocSquad, to for consumer technology, and patients we platform. are the owned platform our local connects to Four, of building of and data we directly one our aligned tools XX,XXX XXX% financially we model purpose-built clinics. model and see from care serving market. This XX builds systems and managed as Core life. provider operates clinically, teams. Focused it platform, of patients come which all our stakeholders that However, consumers now integrated technology leverages over XXX,XXX single care starting XXXX. are to value care the based end populations, facing Today, approximately local, personalized on in through and to patients at align This all primary growth QX care. a technology a their with

I'll Bright near Bright open enrollment new in delivery teams Health Group during are care care four model our everyone these long-term And connect as all, a will expand and growth. Texas, single significant the Carolina, not growth and moving has and finally, differentiated aligning business operating is us delivery continued Group neither Healthcare the to five, business We continue around of businesses, Bright offer to brief we is a plan financing centered North way delivery and enable period The states of also integrated one with and is financing system turn footprint update the fits size to approach care NeueHealth we it. outcomes. care. demonstrating and Health operations. spans day-to-day on our that prospects how HealthCare that, in to guide care XXXX beyond. future With to which to products performance our the

company to been or consumer to real-time we and support across delivering is all Across Bright connect our and DocSquad and while meet healthcare local financing market. drives payors, clinical distribution, growth the all. that empowers Our BiOS, is both consumers, business better HealthCare personalized proprietary focused facing optimize working leveraging Health NeueHealth needs we of experience Intelligent and outcomes. market-facing is measures. provider tools focused tandem, able demonstrate on businesses. What insights Group, and providers, That on to care Health why purpose for two technology have interdependent and each the the Bright System financial built have its and Bright delivery in to Operating created

continued drivers. the four HealthCare Our was value-based driving result growth our growth served add seen of while Bright patients growth, membership business XXX% under contracts. over has This its the to XXX% capabilities, in year-over-year number NeueHealth to primarily tremendous of business

North with and Carolina, membership our Florida in organic growth especially growth. of XX% performance, organic AEP/OEP strong contributing First, year-over-year

in a rate growth included Additionally, our organic that business. Advantage Medicare organic growth XX%

acquisition provided capabilities, strategic depth, activity Second, and additional geographies.

enrollment new Xst. all consumers and net our which plans, in investment in important, growth acquisitions Equally to did March capabilities with strategic And this business, structure cost performance. our systems manage but in organic Health key is XX,XXX Critical price the special Third, growth four, one inorganic Bright and underlying both since of in of markets. NeueHealth we at each our period IFP and state expense market including the integrated the care. model come not membership within ability to to in offer

that cost effectively by manage effective Our partner capturing through risk. in-network membership driving and of utilization us medical our consistent with gained and networks care integrated systems allow pricing improved to that costs performance built starts unit our care on advantage both is accurately our

consistent data recent with our target expectations. most growth, population our our with even Our is and pricing indicates that

revenue and our metal I'd silver plans across nearly markets. business, consistent line our gender are age consistent mature We like contributor discussing our rate with with Medicare demographics across XXX,XXX our in trends between mix consumers at Commercial seeing IFP non-COVID our built book favors year-to-date are our XXXX which pricing over capabilities we significant a new mix markets, minute both and into membership today. membership $X.X billion And a run strategy. expectations or tracking Advantage. spend underlying in Advantage and with utilization business to Medicare with of Also, and broader our and below

developed growth months, key acquire Medicare accelerators. XX we've Over capabilities to internally the investments through infrastructure strategic develop the for Advantage future and past

Our key is factors. three foundation upon built

markets. brand opportunity. multi-year relationships we've capitalize built and the there currently we In developed a from valuable First, markets new growth the partner in existing We've operate, relationships expansion model. members, proven states XX care us million Advantage local add allow which are our awareness nearly on in to IFP Medicare to XX market products providing we that

XX% membership and is opportunity. a of ages our key of over age-in IFP Additionally, the between representing growth XX, XX

Central us at Second, treatment New assets. C-SNP for the largest the populations. in We've third, partner in since us Plan culturally care accelerate of April in we XXXX. tailored ethnic acquired acquired Similarly, driven better with with needs in of growing of BND's organic and increases a managed XX% provider And helped growth. model life membership country, relevant seniors growth we market chronic plans drive differentiated with expectancy plans provided leverage options to the conditions. third of NeueHealth become Brand to it specific to Health we capabilities by a Day

a This of the in plan these tailored care and model XXXX go of own comprehensive we offerings through currently plan opportunity, specific We age-in on and beyond. senior set special integrated through HealthCare of Our needs which our the to for care strategy value-based deep us differentiated non- XX,XXX our related, IFP Medicare include capitalize up platform, Bright foundation has clinics, our systems serve patients arrangements. populations. growth our

New Colorado, to a care MA the delivery of we specific built we that serve. principles. three to the increasing of states, by integrated in core believe a York. why systems And approach that to model vehicles market market. We our we of every set different performance. offering market be Florida, a different driver are leverages deploying match in HealthCare and key capabilities continue the California, is common will system We this market local with and of need depth our every approaches of on NeueHealth Bright operates market care of five with Arizona, know have population is That core business a

with align partners to markets, all healthcare we in high-performing First, improve delivery. and care assemble

and enabled value-based powered under succeed as capabilities. And by clinics built NeueHealth our local national principles, focused In of population. value-based leader and all market of care Florida, arrangements. been in are date, set centers. South from clinical built multi-specialty dental offering with common these services, has to delivering care XXX,XXX IFP they ways, different [ph] care. leverages and urgent To centralized and integrated upon be integrated data tools care alignment, lab, most patients alignment under to integrated alignment delivering centers of value-based Each and but our well a our serving approximately delivery model technology alignment, pharmacy, care, value-based This has financial care larger approach DocSquad the as providers third, hub-and-spoke enable we in medical Central us delivery we in owned Second, wellness aligned Florida, and a footprint contracts. to systems our the comes and capabilities

with these primary which surrounded in the convenient services. enable hubs have to clinics access core We care community, smaller

core with medical non-emergent clinical around developed also and offerings. capabilities infrastructure our bilingual have service transportation, centers, call other We ancillary an

These In clinics clinics served for partner creating offerings. the in model community our integrated to North an on into Bright Carolina we contracts. De markets established model we care we our the supported tailored on Medicare have a our Additionally, over assets IFP not our with country, our an risk which care In This this serve XX the population high Florida, senior a comprehensive replicable, South providers only clinic are Medicaid with US multiple differentiated taking across we providers HealthCare growth states. are consumers population. affiliated partner both patients performing scale, under XXXX, Florida, and to allows are retirement deploying care for way their entire model, leverage new own the largest planned value-based all the single with also one they as to to are of in are year. as life Novo and opportunity at serve. plan our the model us owned during expand managing designed journey Central clinics by the populations, effective Florida, a while delivery and Through in just Medicare In in Advantage launches delivery care, we network. in Texas

performance offering Bright is addition, excited administrative the capability Core evaluate us our in enhance technology and our well allow level to as entries, platform model to and enhancing alignment the serve single of platform, going. our will set. populations, to performance. Expanding we inorganic we as delivery provider-facing key In have on to market both strides model capital deploy focused market DocSquad. its infrastructure, and payors. consumer Purpose-built are continue where patient platform while BiOS, HealthCare for other our creating driving outcomes, a our organic our system opportunities local enables is differentiated operating care and care additional integrated to improving the areas, of we two development all strategic made our are external intelligent for aligned that for of and care, developing

rolled out the are with XXX of consumer integrated teams. around built a [ph] payor to degree developing consumer. administrative single the We our We have differentiated, clinical platform panorama workflow, view operate and a a provider

markets existing our health and launching We on acquired also offerings, assets desired are in with with new markets common XXXX our migrating XXXX. to plan transitioning including solution end-state and a platform XXXX

clinics. team out underway to platform. a their have provider-facing care across We that with active are this quarter our individuals visits we and connects NeueHealth personalized DocSquad, owned virtual million also rolling an consumer through over rollout solution delivered Year-to-date,

Health partners. As proposition to we driving with look that positioned to both with the measured resonates Group and future, care growth Bright a continue is consumers value

in across diversification plans employer existing XXXX IFP, states Our for Medicare offerings. and product Advantage, called robust

largest state We and after entering county in the new will of second California, million market in the IFP an IFP with be country our Florida, years. to carrier IFP first X addressable the in and are lives, enter the first market approximately X.X state-wide

capabilities to Just capabilities to are experience grow bringing we as Medicare other also the our California, IFP are in states. leveraging and business our Advantage we from California

well with special both as as opportunities are depth Medicare We products our expanding in states five existing plans. Advantage across needs traditional market in

states entering Florida, XXXX. terms similar and provider Of also in of opportunity core the Texas membership. priority. in new our largest a states, dynamics is are new With a market We state is currently

hand are come to North Carolina. our future delivery create delivery into expect consumer De workers to And both finally, like to enter proposition. a numbers. Officer expect it take investments as integrated continued upon We strategic the to from to new unique care and Smith, we have NeueHealth we us And country. markets. now expanding value Florida, together CFO, builds, growth mentioned successful approach, care Building and manage our the put well all over our thank integrated team, frontline partners, I'll Administrative our to in we as the previously Texas NeueHealth opportunities our the Chief through and Cathy effectively model in platform use we care across and as Novo I'd I which

Cathy Smith

And full our year-to-date everyone. Thank QX XXXX begin year Mike. provide I'll and outlook. guidance walking our morning, you and by then we'll you, good for results through

in robust the primarily from declined enrollment unplanned non-GAAP are expenses the pleased billion costs and with We in in million gross $X.X across intercompany critical. Group XXX% seeing expenses. results growth positively XXX%, our We Managing resulting million, business. medical for our a adjusting was after On and gross and new quarter adjusted in the market are year-over-year second costs special members our as performance basis, At momentum look we to and our $XX.X like gain investment. our as efficiently by margin Health for the Of increased we year-over-year operational on of $XXX a with the as business. note, adjustments serve of $XX.X revenue EBITDA prior items selling marketing period entry margin level well passive total to we related due is increases QX. the commercial eliminations, unusual to Internally, and of Bright impact million. saw operating COVID-related without effectively at gross possible to period margin year-over-year market-to-market our growth in impacted underlying a

In book-of-business would variability share business useful our view it of Over with growth business, will bridge well by be performance, of scale COVID our Bright ratio primarily while both noting special provide XX.X%, and as a level between MCR unusual in with additional our driven the QX our the business, enrollment QX, medical The prior Advantage XX%, in period MCR at adjusted items. the in basis, color my was our to strive as in in of moment. and time, by to newness we operational membership reported to In markets, our on enterprise adjusted we growth driven development. the reported year. inorganic business. organic a increase. performance impact line Medicare year-to-date our across thought matures, including the IFP second in prior comments our performance. was Given reported On our stick adjustments 'XX as and quarter I HealthCare a was increase XXX,XXX, at period, came and organic the XXX% primarily year-over-year on cost

continues Our business also growth. significant to NeueHealth experience

Centrum now serve clinics. Xst, XXX,XXX closed XX With arrangements Holdings, of our patients owned Medical across on which July under the we NeueHealth acquisition value-based approximately

with comprehensive strategy by of to NeueHealth patients XXX,XXX continues vertical like are that the and financing the care served affiliate HealthCare. our One gain highlight, key to I'd supporting demonstrates XXX,XXX addition, is total of integration which delivery Bright additional XX In to progress metric traction integrated most NeueHealth clinics. through an of with value-based the relationship

growth As to we XXXX, of is at look our step truly half and first remarkable. back and compared year-to-date XXXX the performance

has rate more below is focuses in-network quadrupled systems at Year-to-date integrated aligned our we able since our in-network the in ability last which as keepage our In we an to of of on medical point our have improvement accelerate through market care. year, to a XXXX, of currently keepage percentage large year-over-year. revenue increase able demonstrate all example, North first adjusted to Our ratio model. model, to were in This in-network this half been drive And keepage XX% an while part metric than across maintaining XX%. cost an for Carolina, driving due business. XX.X our refine we consistent are entry

As and you the I'll adjusted between reported promised, now our walk bridge through MCR.

time is and an a appendix of impact for earnings For gross acquisition. presentation by non-COVID the margin to non-COVID net million. impact With representing total reported and portion all our between comprised items prior in prior-period MCR are MCR prior-period unfavorable $XX.X MCR Day significant Advantage periods unfavorable of half our period our prior which from of Medicare impact non-COVID concludes largely our detailed XXX Brand points. first bridge. impacted one-time development, and points business, respect MA X.X the and The by to of percentage a the release COVID basis adjusted New related reference, cost difference point was our The of to to of basis to investor to XX direct XXXX development, was this

was was expectations and impact offsetting in period period prior was total performance gross developments. of margin line as $X.X The items. by with with impact unfavorable was IFP comprised and million Our IFP unfavorable to net two non-COVID broadly minimal, favorable prior primarily

non-COVID First, this resulted by our $XX.X of And risk prior offsetting unfavorable we to population was experienced driven an $XX.X healthier a million. slightly of development that medical IFP expectations. in second, cost healthier-than-expected population revenue than million, period impact adjustment favorable

MCR of The percentage future increases impact results We to final existing expect on book-of-business. our overall of as year-to-date in from the relates I'd to decline our membership to the point adjustments contribution costs. a as our like operating make

vendor we a The we While to have to with a our result year-over-year have cost to the operating way across go the demonstrate cost XXX improvement combined we in improved leverage enterprise. contracting. been our is from a recognize structure, basis scale critical point long operating additional of in-sourcing from ratio operating and achieve improvement our efficiencies business target able of

new coming As first highlight of Bright Florida, our on XXXX operate rate. Three, of growth, the five, of have year, in expectations. is first to and by of North expansion activity, XX% acquisitions. business. new the XXXX I book-of-business states, Florida. and grew from is currently markets seeing driven is to we mentioned California, look across Central both Within want and to half composition earlier, run expansion growth of integrated remainder And overall, overall both Advantage this in based delivery and South in inorganic and of of revenues our our the our with existing line saw past compared XXXX by and growth pricing Medicare markets themes. consistent explosive total five over as with revenue NeueHealth broader premium we rapid XX% growth half business Medicare driven I our our XX% business, four at business came coming Two, our XXXX, while commercial care Florida seen Mike consistent our total Four, our offering QX Carolina, with Colorado. our from billion an One, organic in our a 'XX membership growth approximately the the we key Advantage membership $X.X the and the from growth, to HealthCare diversified continue with growth

in passive than During from we a XXXX, I the investment year-over-year NeueHealth first growth of $XX the previously. includes of mark-to-market gain revenue, approximately a half generated on million referred million approximately prior of investment income This rate to period. XXX% because more the $XXX

mark-to-market have gain, growth would XXX%. Excluding year-over-year been that our

approximately revenue Medical With XXXX the full growth, of along XX that $XXX continued expecting the with and segment. Centrum Holdings, of closing their organic clinics, we from million are year

our by to the cash after We million had offering XXXX, on figure resulted acquisition completion of levels minimum Now regulatory insurance for This cash additional to July $XXX sufficiently include for sheet sheet cash operating in successful proceeds of equivalents $XXX I'd about we of The subsidiaries, adjusting of on allow Centrum, like our regulated $XXX June and capitalized non-regulated million does our not which and and moment speak at balance completed flow. X. our initial above approximately in cash million. for XX, a we growth. public net balance continued as held of which equivalence

the our we of cash the nearly addition, generated balance which In first million in during half $XXX strengthened operating sheet. flow, year,

we and comments full to wrap meet undrawn of sheet, by confident the Given liquidity needs million ability outlook and year. business. discussing for operating term in my are flow, the our our support strong near cash our balance up continued growth credit robust $XXX facility, I'll the

factors, revenue minus an expect adjustment plus of medical depending and We billion, ratio or the XXX to points. to anticipate enterprise on be cost risk $X billion enterprise $X.X XX%, basis

be of million. at forecasting we NeueHealth revenue, $XXX of bridge million. enterprise end our business are membership year and to a revenue membership continued expect $XXX Within we an of are our revenue segment, and the have Bright XXXX HealthCare of can expectation drive of outcomes, variety items intercompany providing that to manage are we can both approximately and our of negatively, we To demonstrated reasonable expect maturity we approximately approximately population. within XXX,XXX a which our considering growth impact range there of MCR of While also positively

Mike, I to the to are I across we turn call team the Before our together, amazing Bright Health Working healthcare. want appreciate country. back changing

for Additionally, support making of our I right as system HealthCare for care. of sharing continued Thank thank mission integrated shareholders to a build together. we you our our national want

Mike remarks. here's some Now for closing

Mike Mikan

strategic quarter make we is strong right priorities all In our and this start plus to a our journey updated thank summary, think second through and like are who our to to as executing HealthCare. together. public I we results very are progress as X,XXX in believe pleased well-positioned company. choice the a Health I'd on capitalize HealthCare you the are Bright employees And on with working to this era keeping consumer of forward year. we look to

I limit open caller. and question-and-answer one business. the we please up CEO to for colleagues to Srivastava, our join that Simeon Schindelman, CEO Bright Operator, additional session. two to per And it Cathy of our of open to Sam questions, and Before it let's will questions. up business; wanted NeueHealth introduce me healthcare

Operator

comes very from Mike. from is question Operator Please ahead. Thank Flynn open. go Terence you Goldman much, line Our instructions] [Operator first your Terence, Sachs.

Terence Flynn

Mike, Great. Maybe for two the Thanks the much for all plans. on question. part for geographic color so a me. expansion taking the thanks

for And any we on progress growth the Cathy next then on context if and year far you we've any share for current for more Just to states? about seen selected provide can how you're Should more there? XXXX you how new EBITDA? four what expecting in just those so Thank you. some of guidance, can you insights states wondering your think and

Mike Mikan

is We've the the to provide way With This Yeah. to dense highly We're times, Thanks, consistent counties we've very services America. expansion, we over comprehensive seeking geographic Mike. stated many broad, seek questions. Terence. biggest populations. respect in market the approached in with the Appreciate the years. it's

seen core. is you've us as we've for late entering important grown in Obviously, of and where So Florida. a Texas in California

years. So on Georgia fostered we we that a and well over got there. relationships see working with Virginia lot great partner been being for and the two of big four Texas now a states years. We've expansion those, the Texas of care We've opportunity for component

to strong that markets those markets. continue we that So will we share. expect a from be Terence, there'll believe contribution also But our market existing growth grow

as state well opportunities. add significant to see the between like you would our new expansion, Simeon, as So states, anything? existing we

Simeon Schindelman

powerful customer are might relationships the a North of Florida the of for is, couple and already I on IFP. roughly the Texas, the us we to successful in and relationships, for add provider reputation very performed very over that's One we a been a strong to that what broker us just happen in also that the entry Mid-Atlantic well help in existing themselves extraordinarily that's Mike, successful in the to also there. going California, term. in strong comments operating to of general long be very and And company state Texas, we're a that believe business. said. have distribution is very there of in to Carolina relationships, we're market be building you going in have presence adjacent our supportive In Virginia, base have And regional that we'll

own. while that on represent already - So been have, states have building business also elevated opportunities on our they also each terrific of of these we the

Mike Mikan

And Cathy?

Cathy Smith

Yeah.

margin we So what now, are line, you. for the right gave guidance, morning, thank gross good guidance important think and which we're the and to are all With drivers giving business there top MCR. of regards we most for you

As to operating expenses leverage. you our know, will continue

of vendor multi-year solutions as moving are solution at We all the height about now right of that on to our inefficiency as we've Mike kind think there journey talked we of proprietary a described a a about. We previously.

leverage to So But we'll around improve that the will operating take us expenses. couple of continue years. a

those Terence. - the of So caller from range a it question? can think the EBITDA Operator, next we next that have or can get reasonably to we guidance, from

Operator

course. Of

go Kevin from Our open. America. of line Please Kevin, ahead. comes Fischbeck next question your Bank from is

Kevin Fischbeck

guess and on maybe your Thanks. exchange year. think something I seeing, moving want impact not And cut correctly your peers is your sense into ability to the that guess the might to you're given It like parts development into your this is kind that trend get to right, want the for you sounds quite again, your next your view of for then cost about this dig M&A your visibility year? seeing MLR that All you're to next year? side, visibility great. just ability I M&A price same price I issues might have. the of negative cost here and your

Mike Mikan

Kevin. Thanks,

So market as population with and start structure market. We our cost a specific population the respect cost in we and to to underlying we let's serve. target our structure capabilities and enter capabilities, with obviously we that underlying a that price

we anticipated so out it's playing our period, maybe from that's you take trends, healthier across COVID slightly We're the seeing if call it's what normal going utilization. look baseline and year, And we non-COVID IFP the expected, the, trends. it, within that book-of-business utilization to-date, when into overall we down than out that slightly about

And And outpatient or we're the in a an subside. going the for seeing had forward starting to in going population saw Cathy embedded for saw mentioned. as population quarter, the that's with We see utilization, we second going second we senior quarter, year saw so more to we're the quarter. remainder saw and by do the as period, first services. continue. different believe the the our COVID, as we over in we underlying think uptick IFP over that's that, of utilization that believe Interestingly, professional about to we in continued COVID, impacted albeit way, MLR, in We our forecast that's

going respect into normal, we're as slight underlying we're next assuming anticipating it, going generally our cost see So call to next to COVID, uptick - of utilization. that baseline back not a with into continue see year, might the year. to well but We really go structure, so we

So year-over-year generally just as we structure as visibility pricing our we new as and basis, to enter well we've got markets. marketplace way into the on think good a our priced the we cost

The true-ups So we to that. then unfavorable it's Brand items New with them, to And feel unusual our visibility development. to from and we've came either things that. one-time, prior of with development Advantage Medicare acquisition some Day got good related and unfavorable to respect to is related provider really really that the like respect

impact and on pricing not an next cost our has that think don't we will underlying impact So our year. for structure

question? Next

Kevin Fischbeck

Great.

Operator

comes Please Josh, question is Raskin Nephron Josh Research. from your line next ahead. open. go Our from

Josh Raskin

Good thanks. morning. Yeah,

example? you the finding just then HealthCare behind NeueHealth my partner that? maybe IPO share products kind North Or of total XQ? NeueHealth question expect developing expansions. be or it more likely with So market new adding what more on share to the a post insurance us and give if just market then the through think contracting do going real to first in underneath diluted question, through Carolina could Is is or just And count come M&A it's and Bright you the Texas a capturing then and to

Cathy Smith

I'll Josh, the and with So, start handle question asked you one. Mike bigger the will tactical

in sorry, I'm about you'll quarter. The you'll expanding see you about share then, next and because And common of asked, that that's XXX,XXX the that part diluted think how preferred had average be of common fully through be - the table But count, the balance a full week. see question shares the diluted quarter converting will Mike? question. will or So and of - second we the the million. file the we'll Josh Q XXX for of timing XXX the

Josh Raskin

providers products Yeah. egg membership NeueHealth structure? market be chicken - right? Bright partner just of Or it is and with capture top cetera? cost it preferential that the relevance through the develop was insurance see and opportunities expansion. question, underneath then Is HealthCare et on once then more the it it's to Is of the layer or It kind the NeueHealth going new

Mike Mikan

Yeah. Thanks, Josh.

model I'll is highly core have do in markets, integrated as leveraging opportunities concentrated, and think Novo new So Partners we where But afterwards. as medical markets network. groups in-network not of We steer as to like well to to to the part We Care got go Texas. also management market it great Simeon different. we've Care model, Sam care then market our our is as been large Health. care differentiation delivery We of we add ours. opportunity It's or with they can our only to strategy that's enter NeueHealth. De believe entering obviously the a there into call with Partner start, is inorganic think the we present keepage a in enter new deep I'll and model opportunities maybe let that doing Bright we're continue program and a beginning Systems, it, themselves Partners But of believe partner Care through from every

we've over volume. build partner that's we through as talked then NeueHealth thing based we really Bright different, is market about clinics you demand. to that there market our is Josh, on HealthCare advantage do One every with talked drive about, as So think expected time. But is us to we know, to and the opportunities can enter

capacity the get quick. we So relatively

a investing want do in market. So and for first? clinics the ROI operating to owning high there's add Simeon, anything you

Simeon Schindelman

important that's seen here. is simultaneously. can And not NeueHealth think happen Yeah. what very necessarily that we've necessarily not element Bright Well, a It's HealthCare first. it first. It's I

building capability in HealthCare us clinic quickly. benefit value establishing And the able fact, business and a those and the simultaneous Bright set this clinics and HealthCare. build very up, offerings, pairing Florida the overall In for to past moves relationships that the very of value clinical of relationships a year, into distribution strong deliver support Bright of also also built we're plan

we've is very powerful. what simultaneous demonstrated the also be can approach So

in that's reason Mike As Texas. mentioned, the

Sam Srivastava

level as entering HealthCare care high-performing about integrated Bright that value-based. enter performance, quality structure products, owning we that as access of the aligning we're cost well just arrangements we're simultaneously I'll building if more De always Novo And add are level alongside it systems what to where higher care, with a of practices, more a that building clinics there's at higher outcomes. affiliate opportunities on networks for looks the with in localized or certainty wrapped that, around partner within think are risk looking overall deeper we're as built, of And NeueHealth like, deeply a allows

And a us more it's on forward. also so for but to effectively not and HealthCare, all-payor kind the basis. penetrate moving that just perspective NeueHealth market allows from And Bright enter of

Mike Mikan

is Josh, strategy And to this core Mike our doctor. add, then again, is just I would connecting patients with their

seek attribute members whether to population to of network. patients, doctor our a it's XXX% we so our And our within care served, a or

the We affiliated value-based medical operate we're that's and to that centers contracts, our we're ability a when core where and or strong do we own through model. have aligned to

So it's - differentiated. and think we

question? Next

Operator

comes question from next Our Lake Wolfe Justin Research. from

go ahead. Please open. is line your Justin,

Justin Lake

Thanks. and a bigger questions A Good then couple morning. of picture. numbers

share markets, the in either had Can new partnership Florida. markets own centers have you about? as the or local here. I in have like you rollout, us going First, a in Do the on can been terms those the gain quarter, jump you you that. affiliations could the to I Cathy, announce there of you could affiliations maybe with you to that are anything tell have as cash even cash model us details And at well market these South tell groups? specifically, where of terms numbers, have do growth with Thanks. unrealized help you health in wanted in your on Mike, had you any of find the start provider there's system bunch questions end at million? in or four $XX the unregulated you've that parent of that us success then, But huge XXXX mean, markets of the

Cathy Smith

start I'll the morning. with cash good question. Justin, So,

unregulated see little balance sheet, million. the over $XXX you On unrestricted at a would

then so obviously, that generation, liquidity. generated little You quarter. to great we whole see like And this you cash combine over And our last when access almost credit strong million at flow our $XXX million. of facility, restricted $XXX cash got a we've with then

Mike Mikan

to And the in market Justin, ours. as is then beyond. a when we've it's market that got we fall these about additional - talk mark-to-market partner and - get our a markets, today. a we're We'll to into conference relationships quarter. fair we at value the care fair each the get market going into gain - investment lay to of strategic obviously, not value And XXXX out respect With Investor Day with

So that. about go we to markets. into good these deeper But it's we'll say that them. really in We've fair feel selected

we talked got time, in aren't And the strong necessarily building But good care about potential - and we've in XXXX. about pipeline we've in these and strong partner that before, and markets a building. markets for some relationships that We're we've we've country we're expansion across really been in today got on new fostering the As beyond. feel building and markets, XXXX opportunities relationships. partner

question, Next please?

Operator

Jeff, next ahead. Jeff Piper open. is from from Our your line Garro Please question go is Sandler.

Jeff Garro

taking on the first Good for as thanks quarter the Yeah. Congrats questions. a morning. And public company.

makes win-win. So your a I relationships and picture dive one a care to bigger for partner me like what into deeper

describe you I risk be care the of remarks, the Bright it the think to in you deliver or metrics opportunity in it sharing them Health just make those to with I contract that market to partners in-network at think for to keepage more specific you favorable offer helpful that mentioned can level? addition attractive for level to prepared would share them can

Mike Mikan

Jeff. Thanks,

clinically, and model really we it built partner care integrated part a was and and Our if for our technology that we can better consumer. foundation. build the leverage idea align was And experience of financially data, collaborate the on

here, they've is know, World all consumer gotten more purchasing two the frankly, earlier. about consumer or War healthcare that their era we As really, healthcare, since making consumers are decisions

interest, or manage to the model essentially have designed they with developed, maybe just enable that we to partners our we can align so And that is embed in our align And better performance. care we them if our mind, care. that get interest, capabilities

care investment they So the our to consumers in-network relationship our is by keepage us and care them make with is an partners And attribution. - to through unit our connect in job aggregate partner economics. design and strong

a Their of are per up But increasing we get So by of keepage, that. which is ours, increase greater wallet. of share market share. services goes in-network they result as measure patient also core a

clinically, care an in It's the alignment value-based but the And truly financially about sense in So through and it's data it sense is of not talked value-based we capitation, care of technology. model. as and alignment.

proposition. win-win So is truly, a it

Jeff Garro

you. Great. Thank

Mike Mikan

question? Next

Operator

Gill next question Lisa go ahead. comes open. your from Lisa, Please from JPMorgan. Our is line

Lisa Gill

early think you about just consumer? about go center. think Mike, know the be should Good secondly, there? morning. you Health versus clinic Thanks that of a then can on, Bright it's see I just the versus NeueHealth to very I provider another providers, much. we when to consumer can curious, You [ph] And DocSquad, cost about other with but I'm about the trend pretty you you utilization you opportunity for know talk numbers and end agree front talk NeueHealth that the going

Just for because And to with cost you're that trends what patient? that curious utilization you're interaction right any the of able bend seeing now there?

Mike Mikan

alignment, With for we financial because respect incentives. Thanks where fully we deploy to medical the that's clinically, We've optimal all can mentioned, our operated got tools. performance question, full centers, Cathy Lisa. Great. our owned as get our and

So we're perform. both share and downside we in the opportunity, upside both as

And this incented our to that really We consumer on. improved early perform. before we program we a assessment. program. our those rolled with rewards trend of is And everyone XX% - we've took that we mentioned risk of those out of provider. health IFP in mentioned a that rewards selected the those is, Of them primary year, see who engaged really enrolled population, where on care So XX% cost XX%,

of four strategy aligned core core getting our we're to connected large is example, our model you groups. partnered of our those to so and which South is which we with as And to primary medical with. And care and an one of providers. of with them multiple Mind in two different own Florida, two we medical centers one

got first a provider, having primary benefits first, you've in referral now of or out-network. trust We access. So comfort opposed engaged level ER, in-network and to triage or the as form care by from a a with primary their we with - care care coming to primary to them because provider, an see a nurse whether from significant going the want as doctor to whether position their it's their that

And which very favorable. also we think do we model in significantly. so is we South Florida, our that And in mentioned

We transportation services. non-urgent also provide

medical to advantage. another or services as the of need that's and will medical infer patients So go need, we they

we having by DocSquad. is With with a within It we terms through respect connection So engagement. program, we have of starts patient to with that performance. personalized that's best would specialists country. rewards is them that out rolled patient primary every in included. consumer providing is which only them strategy access the engaged And relationship a across their not be our to direct It every of highly our get their doctor. core what their population, about believe DocSquad managed ours. care where to concentrated our care talk their getting should have But providers, care, really also doctor should high-quality it's believe We team. key

And through emphasize to whether a care so synchronous, or really want virtual the of through to team we access and personalized it's them, ease mechanism. technology, form of virtual some

again, that are Or XXX,XXX mentioned, appointment. system have done what understands provided. then there's the And date. their schedule on closed-loop that over primary will real-time that virtual we visits platform we of As we've we a connect physician the data their to to them to one providers, services we sure care make

So over we're really technology us. will the differentiation key it long a excited it about think run, for and the integrated out DocSquad be to continue roll of as we

Cathy Smith

the please? Let's to next go question,

Operator

from Morgan Ricky is Ricky, question Goldwasser Our from comes Please Stanley. your next ahead. go open. line

Craig Hettenbach

and is differences Yes. patterns versus and to talk how any of cohorts. the of - at older this seeing When Can you're that Hettenbach any you're trend in Ricky. level you you Craig going on-boarding you differences Thank notable some about This members member acuity expect year that new looking in just that utilization for you. forward?

Mike Mikan

Yes. the for Sure, Craig. Thanks question.

with and respect demographics come new mix, consistent I our As population lives to the will. sex you with our have this that mentioned, us our risk across age population, is if very overall year to

across to utilization book-of-business. slightly translated and And that the so across really favorable Non-COVID, categories. seeing We're underlying - all seen in utilization. we've that's

to will continue the one is in year. periods. out transpire future play And of we that will COVID The that unknown remainder the to notable so overall, how continue believe

markets how, just how Delta with As overall. can't mature more But that well our or higher of new across population is with IFP it senior else, the we've which utilization we the as have our we impact much to to to vaccinations business markets, exist. book from have non-COVID-related the believe much our who it's mentioned, will much continue is impact COVID on the as a an uptick. are seeing are We we as business. new will shift And seeing less population be consistent of predict population, of a whether penetration that variant it of vaccinations, our very broader

Cathy Smith

we can Operator, our question, please? have last

Operator

Of course.

Our go Please Steven, Steven line Barclays. from ahead. question comes from Valiquette last open. is your

Steven Valiquette

morning, question. Good Thanks for Thanks. taking everyone. my Great.

Just medical a ratio. the questions few additional loss on

First, touched confirm that to the more the half adjusted data MLR in half might but something calculating? the think in all are or reported then does to the the But between just that for just to be for the So you expecting see right in metric in year. be you around And just maybe full it what 'XX? you qualitatively you're MLR the little to versus the that XX% the color first on 'XX periods if MLR guidance you MLR relating this you wanted earlier that the back the adjusted I - the guidance less on call, points saw know XXX quantitatively now… year, than a quantitatively, for reported I is MLR basis what of could of provide based that the

Cathy Smith

of know points don't Yeah. impact COVID a Obviously, Steven. as said, some that year minus assumption bit. have XXX as a Good we saw course, or the we really of Mike - But we've just reported. crystal severe, XX% adjusted, for an the The got think to if morning, year, giving something happened little basis plus that. range that reported but I And the ball again, that rest the for about the half we of year. we've what's contemplated in contemplate question in our couldn't know. your full to of first and We we're guidance then don't

Mike Mikan

plan plan for adjustments exist. that, COVID don't differences. it any outside of don't we if Obviously, for we continues to and number. reported So be between adjusted noteworthy will But

Steven Valiquette

quick real on the… Just

Mike Mikan

that Go ahead, with sorry. Steven. - So

first will day. We earnings your their end that, thank great morning for a call call. our company. the and Have this with inaugural interest our in everyone So for that time

Cathy Smith

Good bye

Operator

today's and gentlemen, Ladies thank joining call. you for

your disconnect You may lines.

NeueHealth (NEUE) 7 Aug 212021 Q2 Earnings call transcript