Privia Health (PRVA) 11 Aug 222022 Q2 Earnings call transcript

Company Profile

Participants

Robert Borchert	Senior Vice President, Investor and Corporate Communications
Shawn Morris	Chief Executive Officer
David Mountcastle	Executive Vice President and Chief Financial Officer
Parth Mehrotra	President and Chief Operating Officer
Joshua Raskin	Nephron Research LLC
Albert Rice	Credit Suisse AG
Lisa Gill	JPMorgan Chase & Co.
Adam Ron	Bank of America Merrill Lynch
Richard Close	Canaccord Genuity Group Inc.
Whit Mayo	SVB Securities
Gary Taylor	Cowen and Company, LLC
David Larsen	BTIG LLC
Taji Phillips	Jefferies
Sandy Draper	Guggenheim Securities, LLC
Jessica Tassan	Piper Sandler & Co.

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to the Privia Health Q2 2022 Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded. to Borchert, conference Corporate SVP like speaker to Communications. now Robert today, of would hand over the your I Investor and Please go ahead.

Robert Borchert

and Kyle, morning, you, Thank good everyone.

Mehrotra, the our today Mountcastle, David can Financial is Executive Shawn be me call Chief Chief Morris, This webcast Joining Officer; Officer; slide from Investor are our are and operating Parth being President Officer. financial release highlighting the our remarks priviahealth.com. of Investor and Relations pages accessed formal and Relations section presentation and Operating Chief the of posted our priviahealth.com. on Today's and press accompanying performance

today is Exchange Following the financial you comments, will please full XX-Q our until timely and queue for we the and line not that press to our and yourself so ended prepared with Form question XXXX, in and filed one a The the preliminary open results Commission. And June the in limit one release ask through are are we fashion. XX, get final we quarter follow-up, for questions. the reported Securities can

materially. make those the future and of are that of and plans of operating to and XX, cause as subject and our risks will statements, our on today expectations uncertainties our may we statements based business forward-looking in results view Such XXXX. future business August related our current differ to Some including nature and performance to financial objectives, are actual

should be most described press Company's these in in As today's factors release cautionary SEC statements a risk in filings. recent with the result, considered conjunction the and statements our

measures in accompanying our presentation press call, measures on included release and and certain on to refer to non-GAAP our we Finally, measures financial posted are the reconciliations GAAP these comparable website. the slide of may

Now Shawn. the over to call I'll turn

Shawn Morris

Privia from year-ago. growth partnership by another aligned implemented everyone. providers gain delivered Thank quarter continues and growth highly a model of morning, highlighted our Health strong XX.X% provider our of and to good you, Robert, momentum,

to lives while expect capital-efficient partners, markets continue increased attributed expansion coming We of driving structure. operating quarters by our number also margin new provider enter the and profit expanding our over leveraging

Privia in I'll our present momentum overview up take highly We the of and collections multiple physicians and showing across continued for our to country. we for our for topline markets, visibility XXXX. continue then financial reflected to are morning, executing EBITDA, we reach, at scale in than we more a when momentum and forward very business continuing growth. performance metrics adjusted will outlook With positively in reaching of to Practice as drive while is in growth the $XXX high existing care XXXX questions. $XX.X growth million. business last updated invest before updated across impact market our key accelerated into growth delivery. we remain quarter opportunities financial the to high of million future highlights, networks support is to beyond confident our This and model, continue second this the execute in We to quarter second outlook our guidance generated scaled operating organize our on enterprise discuss increased quarter, XXXX This Health our David recent and record a level. XX% compared year, over XX% and your off an extend

in in existing with and continued in our strength markets Our all utilization growth provider another sustained retention. high additions of solid is across We practice locations. being same-store level driven combination quarter new growth ambulatory balanced a by of existing generated provider

years in next new July, few we in their XXX,XXX vocal serves for patients. most growth an over a support, Physician structure Savings CMS XXXX now particular, Medicare recently of having as to the a the of both their Privia, has look believe the million we CMMI providers. In programs. MSSP Overall, markets Medicare significant Savings rule. CMS and of the endorsement Schedule five a in many addition, transformation. the impact chassis Fee CMS to proposal business Privia positively proposed XX early released said, Program Shared XX of industry program to remains and some the use over Providers patients wants last positive has made successful Shared in across Medicare for changes it pipeline the as development The On our and evolved the net Program Launched years. one ago, CMS seven robust been into enter care note, are years

prove success thereby and CMS the Privia by for to generating for as shared continue and our our lowering outcomes, savings as partners. well provider cost program in We improving

As business potential momentum to our I extremely and geographies. has across continued noted, existing encouraging be new both

states than includes caring patients implemented locations eight Our X.X more X,XXX providers in and of national District XXX the footprint now Columbia. across for more than over million

density medical defined is their and specialties. breadth geographic Our of also scale by

delivery to us payer outcomes and spectrum. across consumers, network internal As cost the of last XX I care that practice, over broad as quarter, types. our This specialty and are care care approximately a OB-GYNs. XX% enables as ambulatory focused, offer noted primary partner family pediatrics XX% practice our with medicine, primary including partners and reduce to improve partners while our providers well value-based care We patient actually

Our XXX,XXX from in visibility giving well now approximately lot and have of at-risk than Medicaid a commercial, contracts in across cover More operating strategy momentum of value-based model has remainder XXXX. up XX.X% year-ago, platforms the Medicare and industry. is broadest, us lives care attributed one programs. a led care of diversified most balanced XX the and and balanced to the Privia This

downside execute programs. nearly to our As the come. goals risk on you our Medicare to for risk we as upside continues and opportunities to MSSP provide in contracts, across earn take savings and to of attributed our shared we thoughtful know, covering and EBITDA our in of years growth move Advantage many This topline Medicare significant lives payer two-thirds greater

Now, I'll financial David review our to recent updated XXXX results outlook. and ask

David Mountcastle

Thank you, Shawn.

continued scale Our our operations delivered of outstanding second and again quarter both model highlighting of in business our the operating momentum. the performance XXXX,

providers XX.X% in over led of care XX.X% above increased Our all lives and year. $XX.X was last collections financial $XXX.X increased EBITDA with combined million, up trends XX.X% same margin coming attributed expectations. solid our XX.X% Practice million, to increase QX in XX.X% year-ago, to period growth value-based ambulatory results adjusted a the record in utilization and a up from implemented

At EBITDA than topline leverage quarter, accelerating in this to our As operating grew same time, the and expected, enterprise business slightly arrangements investment is our our growth. is new our support apparent translating model as expansion. and margin across capitated again due nicely EBITDA as growth the as to well this clearly into care faster margin topline the topline growth

Our a XX.X%. as reach EBITDA to care adjusted of margin percentage increased margin year-ago a basis XXX from points

first $X.X of collections the to million XX.X% almost XX.X% practice the year. EBITDA to care adjusted reach and the of XXXX, was first $XX.X increased margin For billion, up half for half grew XX.X%

with Our hand. all our outstanding strong XXXX, cash of given to be on very capital repaid of resources continue debt its the business. company June, flow cash the In dynamics

as loan of Our million and XXXX. balance facility undrawn of equivalents $XX million available June sheet cash and $XXX.X cash remains XX, revolving included in place and our

a a business guidance. practice revenue our of margin We updated we our the at guidance half high guidance guidance raised GAAP to and million, ranges. through confidence our at level raised to first million contribution and collections, financial $XX of our EBITDA also the range midpoint. performance, We and rest platform the million adjusted now of expect increase visibility be high our to million, $XX Given range X.X% momentum $XXX a in to to have end an care of $XXX of XXXX,

mid-to-high of for now our attributed at provider range. in be our is range. the the implemented midpoint expected end lives guidance And Our to year-end of now guidance is our

platform entries, and outlook $X our includes initiatives. plus in cash Our growing on opening expect With convert continue operator, This a first practices, markets flow includes on We for business and adding increasing existing to our we expenditures attribution multiple over new EBITDA identifying we than time. capital the XX% continuing growing our risk-based in new adjusted of XXXX. that only expand remain question. and of execute expanding ready less our are announced free contracts, million to to focused previously providers, to growth opportunities and to with new growth market

Operator

comes question first Your Joshua Raskin Research. the Instructions] line Nephron from from [Operator of

line Your is now open.

Joshua Raskin

well. the cap the around where wanted of Medicare you the Hi. about follow-up Thanks. Good some on program. changes? then guys actually the think proposed Schedule MSSP My are benchmark And And short-term curious and you to to the the question, from there's helps? I'm think score morning. do that I'm risk Do you you made in impacts a I changes Physician as position if changes benefit you comments Fee curious, the

Shawn Morris

Hey, Good Josh. your to hear Shawn. This is voice.

And all we – a of thing But details As lot talked MSSP of you these just CMS are invest for wants I kind huge we think it, proposed, is the all a it's it's lot the getting it's kind a about in to in changes. into of the – beneficial ones some proposed as mentioned We biggest as past, remarks. talked a of endorsement going within there's we're and this. positive through we've way the the think things probably [indiscernible] of Privia. without the

our the largest, experience ACOs and in the most that last is, we've been seven direction. country know, of As headed it's over and you very the and had years successful it's continuous positive one

you us. to it. evolve they'll So continue The for positive are mentioned changes

David Mountcastle

where And and a about, risk Josh, differentiates around harder one performance factor, it's just not program so it's average adjustment a add, us, to to execute. is what that's risk relative or scores it's big there

pretty we we're here. happy perform with So how

Joshua Raskin

just then I implemented have you time could it's That's if lead a but I Okay. know providers. pretty And guys good I follow-up on early, helpful. know

into of big this thinking, XXXX, end new thinking year. sort if year I I'm are about expecting? of should guidance curious how of guys know based sort the how going end of steady be the XXXX, your So market thoughts I'm that any at entries had specifically, don't bump seems curious that. last And just upward. just march on you we continued on But like just there's a

David Mountcastle

Thanks. Yes.

this at So of year as we pretty obviously everybody say expected implemented is What we're to be already not giving XXXX the sold. today. this I guidance sit time would that's year much is,

good the a in that's lot we us reflected of gives that guidance visibility provided. So and

continue see ahead Our sales a this momentum. pipeline and our of expectations been lot has year execution of and we to

providers we similar So markets. new out And as and being the metric robust, gives the visibility then momentum pretty that good expect existing guidance to give see that – we not reflect close markets them those our and XXXX The very but added going us obviously when uncertain, execute and with and business as enter all we does we'll is development to is last as this could new into update that year. of we across we year continue impact announce enter. the that to states, Again, any that'll in that eight the we'll guidance XXXX. may pipeline on appropriately, arrangements timing

Joshua Raskin

Got it.

there out the timing. are pipeline Sounds heard similar the the like – big sort ones tough talk in that you what we've a figure past, of but couple to in to

Shawn Morris

Thanks, Josh.

please. question, Next

Operator

Your next from line question Rice the from of Suisse. Credit comes A.J.

line Your open. now is

Albert Rice

factors in some Thanks. what – and where looking might Josh's up puts one. swing as When mentioned what from big Hi, takes you but the questions, are some out Maybe and some you mentioned think to the the outlook, last the on at when just to the your – to of I'll you biggest distance? that this we follow-up of you about end XXXX everybody. in are XXXX, that think response mind

Parth Mehrotra

drivers markets, lot it's again, the question. speaking, left. the the our Yes. TAM in it's past, Appreciate a broad It’s in of footprint, we've Look existing are, pretty Parth. stated generically as growth a

factors new markets further lot of obviously them add the well. lives growth really and providers A both providers, continue spectrum in moving book, fee-for-service on the same-store existing of to in We then existing already so risk. the implemented that are down attributed that adding

execute similar And you business. then markets California, to multi-pronged new on it's as Montana accelerates existing that when we and announced what we further. last on pretty obviously, year the of business So saw growth development base even

year, where here first growing as guidance and close year, to much in we've this of next on what We're XXXX well year. continue depends well just than on this practice really faster last year growth, pretty our the a and one and And the year. what us drivers are just brings. lot this we've generic obviously that strongly, you pretty out strong. see really few then The comment given XX% of year with it focused end long-term we execute XX% executing happy as we obviously to half this EBITDA done can So positions months we collections growth in see hit those

where we what variability can. So obviously year-over-year, as as there'll we faster, at be soon XX-plus as the focused some on accelerating some we that much we're see as us. years slower, we But that's over growth but grow of least you'll long-term, have ahead can, years,

As eight in we so XX come. you states, we're have go, more to to know, lots

Albert Rice

or call Is surprise space Okay. Maybe a fee-for-service both you just risk across that utilization across people trends, quarter utilization on areas just mixed in of to any and this seeing. your to follow-up I around a and out wondered of something highlight? anything you're your there lot question, messages could providers, underlying trends if broadly business, comment your

Parth Mehrotra

Sure.

out fee-for-service expectations. utilization, utilization quarters running ahead primary our on book ambulatory seeing with been been comments the break community. similar OB-GYN expectation. patients in good So think that provider, That's few very running of our pediatrician, to of in the ahead last their our has it is to We care

normalizes. that assumes guidance Our

our but reflect be in been predict of you're COVID we're that a impacts inpatient not There's just and again on to also today, And it's others the predict everybody, predict, tough has we as been the and comments there's So we guidance with lot value-based – in it's trying very prudent what upside be if book. side, to case a the been prudent to The see inpatient from obviously, to Again, has the seeing industry. that. and more in to and you're assumptions. out prefer our try and the variability tough we downside. accruals difficult utilization utilization, obviously that environment and again, wrong, in with the

So we'll out. see how it plays

Albert Rice

lot. a Thanks Okay.

Shawn Morris

A.J. Thanks,

Operator

comes Gill from line JPMorgan. of the next Our Lisa question from

Your line now is open.

Lisa Gill

can Hi. quarter. areas as the What are improvement maybe wondering around a be I'm the seeing Thanks more the then you if very give XX%, that adjusted much. first And on we detail EBITDA, in growth. lives care Good morning. think little Congratulations about the you just secondly, the value-based would growth question? XX% Are that the of what that as the in you are is see of some the there? out being Or that the in of that back the call out something we called key starting half there improving think would to model? business drivers else you about improvement the items year? leverage biggest for you line

David Mountcastle

question, the Thanks for Lisa.

you first on as year-over-year, the question, or can that's quarter-over-quarter we a peers. So And broad the from focused. we of differentiate compare lot is are where think growth based I

as focused and We attribution MSSP as are commercial, MA well on Medicaid.

us. So all to four important are buckets

It's in think the them some little especially add those. impacted providers And markets We four hopefully all to in as attribution could levels of is also and we mix, adding we I really and mix is a diversifies and trying variability But of buckets to are focus differentiation. is the then across perspective a an which are book focused moving again, new we bit risk market that which up. particular of can which of key four, what all in lives from growing our be geography. on quarter-over-quarter those our quarter-over-quarter, but it ramp the add they ultimately, increased those source influence in on that patient are and panel, full by

question. that's So your first

are a scale, operates the look, eight are at just in proud On pretty business good again, one, while that the really second we states. we already

million, number and of X,XXX close our of in at a XXX, at to XXX,XXX look patients of attributed grow. to our scale providers, business our metrics, of to at lives close at room book If of is number locations you of X any lot there's

nice So see point where expectation. of if topline, acceleration is we are at pretty ahead that today is we our where in

we which like You the into is can P&L, what pretty translating see good operating down leverage to see. that

obviously trying states to us. capitalize I the and opportunity growth on that's just we of go. the more in mentioned, Now, business are to ahead XX invest Like

we'll But increase update see level as investment topline see P&L operating good momentum, that across and quarters be And so prudently on the will open forth where and the all we so of it's new if we there and so markets leverage. guidance. up where we the

Lisa Gill

Thanks the comments. Great. for

Shawn Morris

Lisa. Thanks,

Operator

next comes question, For from of from it your the Adam line Ron America. Bank of

Your line now open. is

Adam Ron

Thanks for Hey. question. the

half looks kind XX% guidance, Going looks last XXXX. in touched the half, back but collections to and and it like the the and XX% revenue, based fee-for-service in year there's the quarter, conservative outperformance it you of second like the the in in guess of versus on your on I practice revenue XX% back

just the you're think in trending in about countered would like to being wondering utilization kind QX, very people quarters, of – slowdown anything So terms generally is expecting? you how that utilization deductibles highest there seems out I the of their hit would else call

Shawn Morris

high-end how nothing that year. Like No, three doesn't these midpoint year we we And look, everything our different in last here, last the the see saw I prudent from what any we'll see point material range. update is of in again, we continue, are to and this said, Again, guidance at towards guided the if operated difference again, particular. nothing than being of we that year. we've but months the trends we're

Adam Ron

you but that on the saying and share you're it's So just is utilization basis? actual above that like gaining elevated [indiscernible] what utilization physician that not your same-store makes that's the specifically think expectations, itself you're

Shawn Morris

Yes. That's a good point.

our Obviously, – increased have are absorb combination able we I if there's of they some all and capacity demand, spare it. a locations think it's to both. are

the given COVID. our level, business center they've strength come care the at share market and how gained of of practices have we and out think our I

each increased panels provider we've at overall. aggregate think patient level I in

to these at of playing of if some again, it's strength increase overall that number basis, provider level, And the hard on patient of all a per trends same-store top. they're then see growing patients out. in predict on utilization we So the of level and growth

to those, also how those in telehealth, in three is It's the see Again, I board continue update and stable. book. well all ambulatory guidance about are we will months. continue, of up mix. of the pretty We which we set pretty for It's XX% fee-for-service think again

Adam Ron

All right. Great.

Operator

next comes Canaccord. line from For Close the question, from your of it Richard

open. Your Please now is your line question. ask

Richard Close

us BASS. provide new selling, providers. could period year, Thanks Texas wondering the in where a questions. update there's know I was you and if of for the time new West I entered Congratulations. on just you last an potential investing markets you're

Just curious that how call plus two quarters that sales going we're, now process is into it, it?

Parth Mehrotra

Thanks, Yes. Appreciate, running; California, Richard. and Montana. up three All are West your despite conference. Texas and you joining markets

As those and you each with joining Great Abilene know, we in partner of group Partners then Montana. a anchor West in in entered Medical an California, BASS and Texas Falls Group with Surgery us, Clinic

have of we our in of all sales the effort started are and markets. those So live all

way. ramp we're Texas the on but they're We these provider the West grow excited the just medical have smaller population, about and we to And we ground, Montana effort up as are in in markets going really that obviously, and takes state, that first we meaningfully TAMs, can are pretty California, groups time come. sold our really but expected. big years and Obviously to group big on think our

So excited about it. really

Richard Close

bit changes maybe with bullish, it was comments pipeline call months seems bullish although maybe market ago? in that the Any you And little the respect just big to Shawn, new a it from more quarter. the as potential, follow-up, on three out can first a your

Shawn Morris

Pipeline physician about about in use bullish, Richard, guess, model system excited We're we talked lot robust. of very mean, core remain still words. groups. a I to Yes. the the is health approach. your We've I kind

a It's two but overly what's to about dispersed. the our section. across about. It's pipeline, specific not get talk I in So geographically good cross it's

history, not So these widget. our in if and you come different times, not a look – we're at things it's selling

we're but selling at out excited take and were we the solution about same So very time, there they the itself. time, pipeline a

Richard Close

Congratulations. Great.

Shawn Morris

busy know Thank you're And we you. Thanks for joining. today.

Richard Close

you. Thank

Operator

Your Securities. next Whit Mayo line from of question from the comes SVB

questions. open. Your ask now line Please your is

Whit Mayo

bearing did that up sort those like? MLR did just don't learnings look just six track on have two versus Maybe observations now months yet, thanks. your What maybe or into risk first you're full full a of standing the but expectations? entity? new contracts. risk Hey, Q any How I early

Shawn Morris

we're approach we're Yes. for Thanks really Again, how still a I early those a, we're conservative would taking recording question. the Yes. and say in into things. contracts

XXX% we've to in in we've recorded. of least at date, expense able see our this to again. So And we've revenue that be you'll again, recorded the Q taken

business recognizing out of of data So care have far. only XX. months we the four are with Really from zero so about some margin tail

business. And looking where think more it pretty programs, so again, But we just this as point. think we sort those I them good about of the again, to at get off. taking I feel see take again, data conservative And from we're

Whit Mayo

contract. today Yes. of new you sorry. these additional to one risk penetration like perhaps curious, follow-up, any follow. arrangements? explore I'm to And XXXX Maybe of Are we think from have about the existing interest just how XXXX, finding full of other groups I sort affiliated kind just and

Parth Mehrotra

Yes. Parth. it's Hey Whit,

look, well every level we enhancing being risk evaluating, could goes we Enhanced by our in partners. I part good do just market each at looking a of the group. capitation, geography mean, And as in So pools. I payer risk without move think by into take with continuously payer medical that both book of are medical just our be could of group And payer, that We're the providers we capitated. for geography our we as we discussion level what and it? that's point have density by

been earnings we've clear at it from that discussion worse is of ideally ensure off, we're to and standpoint, And doing more minimum, for right and the are going risk we'll take and XXXX. we enhance always thing not very I to a we're obviously, economically The on EBITDA EBITDA that an shared and level our update. criteria now say So one would is, to through as savings.

do We'll it a just or not the topline as it's when when to sense makes we going collections Privia. think to it for practice well it So good that's do decision criteria. physicians revenue. and and our financial a fundamental as We're recognize payers

Whit Mayo

That makes sense.

kind grew revenue. sure. of by there? AR Just that out going what's presume Can capitated contracts, kind of Xx of I not these faster you of but maybe days flush influenced than on I'm some some

Shawn Morris

of you a contracts. again, our would to we're about because And capitated I say to QX, accruals. we XXXX, it's months if shared additional accruals in want those. work, And the we've of Yes. look combination looking at keep think at whatever how accruals at at related XXXX, XX savings then as we put

we for so QX, expecting, point got see high we kind get, which much accrued bunch in of shared related the come you'll of maybe of MSSP, that hopefully when just So get that end down, of QX. as especially QX, because example, on to but savings in a early to we're number we've receivables a receivable

Whit Mayo

Okay.

that's So not then. really number a bad

All Okay. right. Thanks guys.

Parth Mehrotra

Whit. Thanks,

Operator

your Gary Cowen. from it question, of comes from For Taylor line the next

open. now question. your Please is line ask Your

Gary Taylor

good Hey, morning.

X,XXX a big question a lives. one. patient think model. ask small ACO attributed back question We the were just, my picture to a I hadn't about wanted down The picture Just picture decline then seen about in sequential sequentially. Small there lives is

think XX%, picture up practice algorithm. at long-term that's growth I and small XX% providers So this just look I the is one collections don't – up what was. think of north And change we sort when year-over-year attributed gross the like lives up just wondering that of providers XX%. bigger quarter,

think on now. trying and of, So practice XX% collections, to as and modeling I growth see XXXX tying imagine and to hit closer we we're together than XXXX wanted collection providers about would I long-term are practice right lies seeing just guidance all kind a little that

make I'm to understanding So just wanted that. sure

Parth Mehrotra

Parth. Thanks It's Yes. Gary.

some first the on So the be MSSP on quarter-over-quarter variability book. always there'll look, question,

period. you kind the then can PPO in patients these in be And from CMS as move. count half There's for count from third first book you factor the the that just of as coming lives. patients the could MA happens, are them can't the and non-assignable, those As if some MSSP you haven't some them classifies But from know, PCP movement simply when them coming also – again. two visit,

nothing tight. the us. our pretty movement that pretty Again, again, So range worries is was small, guidance

think the near-term had. I of so that's And that question – kind short you the

On in then we the the markets existing add the new is in model then obviously follows. providers attribution question, longer-term and and

group lot a about California big example. medical a a is with of So at doesn't great even we today, value-based XXX attributed it's not lives, partnered that have providers. That book though the BASS

So California, the but care mix know. providers that's the attribution providers good growth. really provider matters, do primary attributed of we over lives, and we more value-based matters, to the follows market And of the more provider add as market lot as a a as care, existing time, add patients in the

then and we the The shared the third will savings be level profile of aspect of contracts get into.

of in our years, perfect a is three, program. example with expect MSSP So book even two, increase to the four, And Mid-Atlantic. course the you level savings same can attributed shared a of the lives over in five same

savings you actual and attribution you history see the data can with benchmark. CMS, available and at look the over seven under of of savings percentage publicly the level both shared If the years, grown we've

life pronounced MA this the year XX,XXX time. XX,XXX, see that's book, with So over the as a you life you lives contracts. value there's entered obviously in increases we per revenue capitation what or you then per move and about those the saw yield into can recognition much And more when

years. to that multi-pronged but the multiple that's the over again, And attribution, answer essentially. topline practice and out it's So collections plays algorithm provider a to bridging

entered particular though market of helps. we pinpoint in it's in the last So California in A one happens subsequent the year. what years, lot to growth tough even year. would Hopefully that the likely come

Gary Taylor

you. Thank does. It

Operator

comes it Larsen question, For next your David from line BTIG. from the of

Please Your your question. ask line open. is now

David Larsen

groups? Congratulations switch Hi. largest another a little maybe there up? levels? What you about And some helpful. of mean, now the to we of of off whatever that of are or Just in implementing would color due XXXX, activity very any around of satisfaction are either reason When that talk some percentage largest implementing good that think large be do about may bit else? I very make your or are revenue can you. anything any those is of M&A on your process platform like how some quarter. groups risk groups your for Thank

Parth Mehrotra

Yes. Parth. It's Thanks, David.

high. So satisfaction are X, levels Slide as in showed we pretty our

One of graders, the provider tough high, you Patient beginning. use. but XX, we've is what NPS pretty since highest benchmark are XX is matter NPS They the XX. no is seen

at for that low is give disclose internally. close or to And markets externally. attrition track it We record us just to our record across Our take. a again, – great or metric a low, in don't it’s

patient So all is pretty and providers panels. to them really of at adding practice The value very making of lot and things the practice, robust forth. of overall those and our value-based care of the Ultimately, their functioning to the pay efficiency, the the so and more into satisfaction. productivity, end a day, moving value good point home We're so having are take on ROI-driven. proposition

we've We So not M&A activity don't worried have big buying about and our out very folks groups. concentration.

and joining chase to us our are with very way to big us. very come practices disclosed. had group also think partners it. XXXX in they'll the said, going and progressive the a pay wants that manner. that again, And we we're was not in that our a independent, have somebody had But system check, left us one us vehemently They partnerships self-selected public going that are to prior we've in We about we in if health again, are

we that really book. as any we And practice that that So have very there's perspective. single concentration no grow, a diversified from no risk us really – gives

Shawn Morris

Hey, David. Shawn. color. is I’ll add This little

a and part other you when are through that addition And care we referring business, to in same-store markets. went growth – talked new and you customers and are markets, doctors we've your centers. existing care – Privia be strive lot when potential physicians centers even customers years, the of how addition providers growing any of and that of that, we grow – in existing and the customers Over their about

You know, you're onto something special.

we guess, as I people perspective? its – saw believe looking a question economy referring for I in inflation kind we about the but solutions partners to there's, our And of business direction. somebody last driving do the play and we through you're back will over going that's on years You that, can if and feet. next think how economy, few out the the you tough improve, think always to And I believe doctors gets come different, it of going COVID additions from the And on help. to about in asked mean, the things you half quarter factors from to a in it are it, what anytime right headed mean, kind that, colleagues With and Privia. continue

David Larsen

Great. Thanks one quick And much. more very follow-up. then

Thanks. loss like you What's a How months For revenue, within over is how of have? or of four not data is it budget have I with the do you? you cap any enough the conservative know risk sounds sort being assuming though? margin months that four that there. it of that Is telling data. like you're budget? you're you that of What

Parth Mehrotra

speaking, again, any is in the very on forth. potential it's you're not Parth. for months a so Look, called so There into to mean, go There's and I loss. what a always clearly, savings. we're saying data a shared when for Generically risk good the we've Yes. going business, is It’s potential particular and contracts risk reason. four for have to or said

with on that take you when than been you Our into you better downside upside hook. hope the are an enter on would – and any view the has risk would do you only these just arrangements not

not there moving are properly can underwrite contracts that in from And can perspective, again is good book just also for our them. again, I we and long-term into across Medicaid, we year-over-year, the as these these pretty P&L business. can can that our capitation downside, taking the diversity any the So book but of given respect part And contract way. potential think, impact care hope perform that events from MA prevents we of that feel a in big – happen, that commercial the anomalies we're a we is much happen but doing are differentiated we one particular in we're impacting and really MA value-based MSSP, is

David Larsen

on Congrats quarter. Okay. good a you. Thank

Shawn Morris

you. Thank

Operator

your Jefferies. from Taji next from comes question, line For Phillips of the it

Please Your your is question. line open. ask now

Taji Phillips

thanks Taji today. morning. my on This and for question Brian, for Hi, taking is good

drove expectations? factors your to So first in clarify, that on original you specifically can color just start, some and that higher the the than came give metrics curious, beat operational

Parth Mehrotra

it The which our The performed see. like Yes. expectation. of Sure. Parth. what It's ahead Look, to pretty broad-based, book our were stated. just ahead is was of we fee-for-service utilization trends as expectations we

and are expectations. of been value-based ahead all reflect our we that's accruals our side, the the On we – have again, information

then performance And that's given inherent business of our leverage. the that operating and reflecting the reflected the down is the there. So scalability P&L

cash been into and happens, outperformance, base know, it as line managing if So positive metrics. you and investing we prudently, need we're profitable free the of to nicely and bottom translates expense meaningfully this some where pretty we have flow

was feel across the from We it here. based fairly pretty and all all confident it paid in that and our future shows our we So confidence. debt broad –

Taji Phillips

And healthcare patient just provide driving your inclusion on you patient how question. additional your or detail more for demand you about specialty some in When specialties and thinking Parth. that then network? Great. – target utilization Thanks, offering, highest or are informing providers how one can that's demand

Parth Mehrotra

Sure.

our So do look, that broad-based are fairly chronically some. platform with the We one obviously, for prepared we odd The typically today. have in ill, Shawn our his differentiation specialties the remarks, specialists, we're going on specifically. surgical of take XX folks is as not care stated specialties

of reflection is that so And good medical groups. the a

primary hope And that's then with that Florida But be medical In speed normalizes it's anchored time, and so focused, over see grow, the California. those very specialists. can care markets, with to the and create all one. OB trying are as care case in different groups good some concentration very point surround around. the We them the right is that and focused our as we BASS again, utilization is with primary in makes partner

pretty think us across can that with pretty benefits quality referrals value-based at cost arrangements. create high group perform lower And in specialists a holistic book. our and medical both and our network that fee-for-service level differentiates We to that I good value-based have a pretty high

Taji Phillips

you. Thank

Operator

Guggenheim from question Draper Please the line Our your now open. next Sandy, of your is Sandy ask from Partners. question. line comes

Sandy Draper

have questions answered. Thanks my Actually, been very and asked all much.

back pass So the I'll to operator. it

Shawn Morris

Thank it. Appreciate you, Sandy.

Operator

from question, Tassan Jessica of line PSC. from the next comes it your For

ask Your line Please is question. your now open.

Jessica Tassan

so much Thanks Hi. taking for question. the

first guys you're my make they just [Technical you So you were if I wouldn't percent well risk one also enter over what said you booking to timeframe contracts, Difficulty]. at guess be, the I care zero would full off, lives just less these that going know so margin, then but

Shawn Morris

we Look, and we feel the book for we'll comfortable at and it accrue data see for as the Jess. Thanks we'll Yes. appropriately. question, look when trends, right we that it,

as for positive, our could called and they they come these risk. as into so hope in payers quarters. in when next we You into year our as over prior should data expect business flow we've do this almost lag The manage that's have to do entered it's why see certain well does And and be and you well this with be immediate, it's why negative and can that's And not few next that period pretty cases, a book again, both taking happen well. But the previous. could we the well. risk physicians you're two, adjustments could

you'll time So trend. that hopefully over see

Jessica Tassan

it. Got

prove us in on on that's does you just XXXX kind it And possible to just was you'd that could the – what margin, performance one if then the care quarter? then better Thanks. of expect X% So And what reconcile that me. is the XXXX, upside date for to and the if cap be the remind full latest than capitated more P&L. revenue see

Shawn Morris

Yes.

update today. guidance So that book on we – If question that so half, guidance any is next QX or year, this happen revenue. of the accrual expense quarters report what's adjustments. so our that it if first subsequent it in equals QX would existing the again capitated afterwards And the we’ll year, that's in or worse, reflected there's we part guidance the in medical or we or appropriately. could early assumes happen could when And are QX, giving better property

expect you'll the close to can go as into again, the see So next next. out year we And take year. and that David

David Mountcastle

quarter it for you'll later as see million the for in And our six first gets $XX.X when million today, Yes. $XXX.X XX-Q, was revenue and capitated the published months.

of total in our revenue Now GAAP care Q well. year, equals XX.X% last you'll value-based which from as the see about that XX.X% up

Jessica Tassan

due lives the full or And sorry, it. to caps? then just just increasing it's under Got of sequential to increase an quickly, capitated due rates is population

David Mountcastle

from what our Yes. in those. It's year. of the announced combination release one entered earlier we a of all press We contract capitated additional in

also in nature savings of on in book arrangements capitated the And lives. reflected recognize it's the increased rest commercial basis. we It's of it's MSSP. and across shared PMPM and topline that So the then can a of the the

Jessica Tassan

Thanks it. so congrats the on and Got quarter… much,

Shawn Morris

Thank you.

Operator

comes your Your from Please now William of open. is the last Ryan, question Ryan question. line Daniels from ask line Blair. your

Unidentified Analyst

This guys. morning, Good Congrats thanks here. Ryan for last and question for my on the Daniels. [indiscernible] Hey. is on solid taking quarter

phone my cut out. So

passed XXXX. But guidance your of you we're it's practice just collections for, at the looking the it your end range the total the if first looks I like half this apologies address high already So think for year, of halfway already. point for

kind would great. as year. about relates the you should fourth back if half if any the of downs provide step we should and we anticipate just curious how it So quarter, be can on think in any update cadence to third of the color Thanks. sequential quarterly just any there And

Shawn Morris

Jack. Sure, Yes.

think off. line that cut I but did we worries one, your if address no got

the any again, stated. being look deviations So to year. don't predict stuff last expect as the we proven saw we've we from ambulatory trend We're utilization

here. If guidance three trend continues, trend. from previously. assumes don't expectations. And the our our running then But again, there's ahead of normalization in experienced of that been what the see that we obviously anomalies months It's we'll so guidance any some we've update

Unidentified Analyst

it. guys. Got Thanks,

Shawn Morris

Thanks.

Operator

Officer conference There turn to Mr. would are no closing like Executive now this for back to the remarks. further at time. questions Morris, Chief Shawn I

Shawn Morris

always, thank capital to all through all proven delivery As patients already integrated our you supports scale. running at providers, always, reimbursement models, all listening model efficient is for our and care Health as Privia call.

We high significant execute beyond. a the we physician market, and forward at continue momentum look labor and level to XXXX through have in to

of we and forward our you the speaking of you your interest wish week. the appreciate enjoy again we the and company the and to look day and to Thanks. and best support rest continued So

Operator

Thank This and for call. conference now you may concludes participating disconnect. today's you

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