Privia Health (PRVA) 4 May 232023 Q1 Earnings call transcript

Company Profile

Participants

Robert Borchert	executive
Matthew Morris	executive
Parth Mehrotra	executive
David Mountcastle	executive
Lisa Gill	analyst
Albert Rice	analyst
Andrew Mok	analyst
Gary Taylor	analyst
Benjamin Mayo	analyst
Jessica Tassan	analyst
David Larsen	analyst
Richard Close	analyst
Jamie Perse	analyst
Joshua Raskin	analyst
Brian Tanquilut	analyst
Adam Ron	analyst
Jailendra Singh	analyst
Jeffrey Garro	analyst
Ryan Daniels	analyst

Call transcript

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Operator

Good day, and thank you for standing by. Welcome to the Privia Health Q1 2023 Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Robert Borchert. Robert, please go ahead.

Robert Borchert

good and Kyle, you, morning, everyone. Thank

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

in remarks, our for as queue to so Following not press return and Commission, question and open for questions. follow-up, the Please we get preliminary which the prepared XXXX will March only many XX-Q the Form Securities questions filed and limit final if our first to filed earlier are one are a can line quarter the ended Exchange was you is X, as have yourself possible. release reported to we results the financial and The until with today today.

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

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

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

to Shawn. Now I'll the call turn over

Matthew Morris

We Health one to you, XXXX the markets. largest we Good of build each Privia ambulatory towards care vision as to start results solid in Privia quarter into delivery of everyone. execute our focused our delivered long-term remain on to networks in Thank continue Health first driving Robert. morning, the nation.

partnership drive market our high-level few before then will confidence a financial model performance outlook and a market I'll Parth and discuss and Our update, will continue aligned highlights, review on multiple and fronts operational business our This offer David growth highly to and XXXX morning, XXXX questions. we in our outlook. our take your recent momentum support guidance

again XX% XX% and number up quarter, Privia was first the continued market Practice invest a execute partners with as This at markets. providers level X continue new performance During than our group in very our of Ohio. Connecticut, medical to as as provider continued year-over-year. few existing and In states already in growth recent driven our increase last EBITDA almost in signed Health Collections new increasing to months, new high was we've we Adjusted more the by in our North provider platforms have additions entries. Carolina new entered same-store and well

additional launched transaction This very Pamplona shares diluted Goldman ownership. Sachs markets states strong a continue sales development pipeline with next enter substantially total reduces morning a eliminates offering look we excited healthy and and the years. have see new our company's as business are over very a secondary across providers we maintaining are We to Separately, large potential and to outstanding. priced or and the few funnel of this Capital's

come. in looks Privia long-term Partners including our years purchased transaction. Capital on value shares very number of new Durable and also others executing continue investors, entire welcome to to team oriented Rubicon The our for in create who Founders among are strategy, forward We this excited a shareholders to to

Privia will me interest. at I Health. as plan I future Mehrotra over operating Board our of Officer personal success. that role, and Parth I we announced the the spend other have recently on end worked Parth succeed Directors closely it step of to was remain and focused and named June an time that forward last opportune news, Privia's decided to to my In retire from Chief very now time of my more to away Privia the X on together continuing track look years. Board, to I to I Executive

As directing establishing our taking XXXX many in Privia's part been of of in growth. an new presence you know, integral and public states, Parth has company Privia's many

exciting our of very been Privia's you and It's We leadership and drive dedicated interact expect with XXX to privilege more than to watch a many of health. and growth. team improving Privians be it transition, smooth next a will phase Parth to

and ask Parth I Now operational to market provide update. a

Parth Mehrotra

Thank It you succeed you with an to and our pleasure absolute been as privilege has you, Shawn. to CEO. work

We our which caring continue medical over XXX includes providers footprint, than X,XXX our national expand and We believe scale Privia's in for now more patients implemented million to largest locations. multi-specialty X.X diverse in medical groups, networks improve delivery and true costs. that ambulatory one and build offer provider we payer and the partnerships groups the differentiator a can patient of outcomes care reduce as in country

more across and driven in ago, contracts ACOs cover commercial Group Beebe in our lives by our in at-risk implemented broadest, balanced North Total and our Carolina diversified Ohio in before in and programs. be each Medical Connecticut and in partnerships new a industry. expect the Delaware. end providers attributed care increased platform than in continues the most government ahead to markets X than one year. payer of year XXXX, of including XX% than to new more this value-based We Connecticut, growth Community plan million and our attributed with are Privia's of We of the calendar from add XXX more Healthcare lives new

we terminated a technology year. challenges, operating attributed given to decided with impact plan's result, pause for both includes plan Our capitated plan pause risk relationship health quarter health The the year earlier its to partner with joint arrangement. And arrangement provider as health a end decision lives the of services the one this XXXX. the MA near-term a performance capitated

focus year XXXX. patients a outcomes reducing with MA risk patient we'll cost and serve performance for jointly to downside on before the care, as total of reevaluate arrangement continue and improving will We these

very book well value-based first to into the in XXXX. a our And years. over MA performed of there of and in capitated thoughtfully remains us arrangements for quarter move few next Overall, opportunity the lives significant embedded XXXX business

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

David Mountcastle

you, delivered performance X solid first another XXXX. Privia Thank Parth. Health the quarter in months of of

XX.X% implemented count of was X,XXX Our up year-over-year. provider

led trends, reach utilization to $XXX.X additional providers attributed from ambulatory collections ago Solid a practice to implemented year lives QX XX.X% increasing new and million.

of at-risk in of the care over EBITDA a thoughtful continue ago, year to XXXX We XX.X% leverage first GAAP XX.X% up QX in time. million. which comprised to year total compared over generate revenue quarter move XX.X% to contracts adjusted $XX.X with last our Total to operating QX highlights value-based

arrangements. and our aggregate momentum, model is capitated our guidance. value-based strength and our full performance resiliency of we this reiterating The highlighted XXXX continued solid and by strong diversified business in of are QX operating performance, business With book year our

new support plan invest collections XX.X% EBITDA increase billion across X XXXX, With than our enterprise midpoint We and to our and XX.X%, guidance. to new $X.X expect practice both more to adjusted to X continue states in grow to to the expansion. we ACOs of significant business at our

strong cash to be Our more continue million very no debt. $XXX than capital of and position balance with sheet and

investments. million entry Our and $XX million absorbs in new to $X market XXXX adjusted expansion EBITDA guidance approximately

coming as attributed our grow base provider in We lives to new significantly new expect states. in markets years we our the scale these and

free business convert capital expenditures our to XX% we to years efficient adjusted model to remain capital on to $X our to as this of than many partnership national annual for we EBITDA Given our with come focused growing We cash investing support expanding million, our less and of expect and build growth footprint. XX% flow.

to your questions. now take are We ready

Operator

comes Your JPMorgan. from question first from Lisa line [Operator of the Instructions] Gill

Lisa Gill

Great.

the congrats First, And Board, Parth. continue physician you. a bit you, timing think to know has to really better implementation. is a working this be Shawn great it want but transition. been of just I I you'll the little to I great understand with on

your want at kind to things. timing move it year look guidance, the be understand you the to of conservative appears and I to throughout just us As as fairly of

talk then we've you really can would can new into I I if had interesting, And health questions quick Parth, follow-up, of measured of very talk plan you And against heard markets year? a number around compensation package. group metrics give about maybe is. you just color And that a over was next be some new the to who peer pause, be your as that the incremental it but the helpful. going just you're thought any about the

Parth Mehrotra

Thank appreciate really you, it. Lisa, I

order. So just take in them

of end as in year. implement stated, plan states, So ahead we Ohio, those implemented and Connecticut, on North and to Carolina our in new providers of some providers before we states are the expect #X, the we the

sales As And have it's that's visibility you pipeline that gives still but perspective, again, confidence. us guidance X- a process, the know, the we from QX. X-month to a through

pretty guidance. have also visibility, We include guidance this the as we'll as new any states, of update through And we've as pursuing we have the done to the -- we course we'll past does good I'd we and update the like And obviously updates, year rest we the not year. years. when are business and the throughout go obviously mention, development of in if and have

to for grant being perspective our on a value be that the vests years. shareholder our in aligned shareholders comp prior -- that suggests return a to questions, get relative focus will with the it Services your again, my X metric, details was initial SEC company then And tie will the which follow-up Index. been filed request committee were public and be total to cliff Health basis Care a which with the to #X, has on And fully entire the to happened it it on creation from the

So that running the that's business we just in the creating and value aligns for long-term true mindset have perspective, shareholders. from and a

Matthew Morris

excited noted as remarks, [indiscernible]. here Obviously, you Board and being have this enjoyed and the I've over to confidence in Parth prepared grow thank of in the the and a phase. And see just and for the on Lisa, next years of team lot I the hit X Directors. stay for company

Operator

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

Albert Rice

are notice final to push risk and to How of saying, we to how take want kind discussions need you what side? physician's do making pause here. having? Obviously, think comment book? your think people MA discussions? about the it to on Best year to we tends June. the it in your jour, But rate wishes, and more changing be because the get has Parth submitted du specific next just model the Shawn for in there. different know notice rate on the taking congratulations out very I Maybe MA bids risk you in the topic it's your been on to Is in Can accelerate Is hey, path the final just the they that's Medicare relationships. on well. risk

Parth Mehrotra

Yes. seen risk jumping question Thanks, We've your payer with Parth. And of have model It's moving appreciate to comments. into validates our then model any And XXX%. thoughtfully so our that not I this the really well risk full A.J. groups. your kind up it directly, provider in both spectrum. change as as our discussion are partners we than more

As really and the and you where so plan I make this in go process. look do when burned that think are decision geography, partner in environment thoughtfully by the providers it kind health is ready, neither and panels, the at the look payers at geography ready, have the density, the to entity are look that of at an

thoughtful as more more folks with I those our are medical this. groups. to So seeing momentum obviously, are then how as lot being across they of validating that's so a payers much think both discussions, we and construct strategy But our

Matthew Morris

A.J. Thanks

Operator

comes from the of Mok Andrew question line next from Your UBS.

Andrew Mok

thinking you thought it the health your alignment Novant, be equity deal And we in template restructuring this process rationale forward can with partners? a comes for agreement to providers the going system alongside deal and the at when of implementing should way? as Looking this strategy large explain

Parth Mehrotra

Look, that Yes. when commitment appreciate Thanks, size, question. it's systems, to of comes significant think a their I very health part. it the especially Andrew. I on large big

the of and talking those of providers, never significantly of can those dynamic imagine, also made We that decisions term long and depth are nature. and very are you changes the the relationship are partnership, lightly. as And in about thousands the

you if overnight, them reverse cannot will. You

is will if arrangement that system it So and that get depends the depth be equity of very in reason that they strategy the I business. that particular we if of kind a kind incentive are certain decision the can just nature on the of make relationship, of for sometime health book structure a strategic It of that we And objectives again, that includes our commitment. and particular and health by an our aligns future, having is geography. comfortable in in system. think system of amount partnership But the that that health of the that

Operator

from of Markets. the next comes Dodge Sean Your line question Capital from RBC

Unknown Analyst

This Sean. to congratulations and is Philip Keller the for also transition. Shawn And Parth on on

I So before of terms you of tied states? first to I Partner's in and there I'm guess check you share partnership. on that how of in more an give anything looking mean, can kind status the the need that update year, metrics partnership? to expand to potentially that can you're I performance success to implementation, more wanted understand to see you the specifically, the even what Surgery relationship comfortable measuring maybe And back in Montana? us on other

Parth Mehrotra

Yes. Thank you.

both months, live relationship states and going genesis then has of Group many So partnership. the the that the obviously going was are other and now time, is for that's relationship Montana some And The for companies well. evaluating in well. really been

in other have certain states that implemented. We other groups some are

So are going be again, out proven that we've to implemented. --

So there's we've strategic what a proven they more broader oriented that then, just than on value out do. one their in alignment obviously, state. in And

some partnered also of including announcements, in with Ohio. health with a seen You've we where system, recent their

as So offering grow we partners of can in and in a facility you strategies. together we construct value total try as we're to and a cost medical unique I from to meaningful these group a you a payer know, relationships, with to -- outpatient to going very our think develop work networks it. forward look those way and care both perspective bring those how reduce pretty with And an you and attached can multi-specialty

to discussion This them. continue with a we'll to strategy and multiyear work. So is going be

look executing to on we So it. forward

Operator

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

Gary Taylor

just the are obviously disclosure development, of if year, $X.X the prior-year ask pretty on I One, new, new forward curious contracts was it's given of negative I and all? what wanted that's your table. about But this influenced to at roll things. was that driving a couple on million think those how reserving

you. pride And then little see beyond That also, a add stock of than not of EBITDA back. typically stuff back. comp adding there from add-backs And we larger were about lot the $X.X I amounts you million on to a just know

$X.X to So there see just wanted detail that if million? was more any on

Parth Mehrotra

Gary. Thanks,

on the large was that the the related capitated So in book. to that plan, pausing around first this we health one, that challenges they in on went book it's they one the prepared change. again, remarks highlighted the capitated the A the faced particular, of part due as operating to through given of arrangement with

that from so QX, any of in downside further we is don't recognized that. All see

the expect of continue that don't I should think course to the this of So you rest through year.

that onetime months. related. we've on last [indiscernible] EBITDA very And activity the was then that deal add it busy So few Obviously, much pretty had from business was perspective. development back, it legal-related, the some a over adjusted costs,

some nature addition And certain in to of so onetime in that severance costs. is purely

Gary Taylor

there the participation offering sector in any priced? that it. management got Appreciate Is

Parth Mehrotra

it was Goldman pre-IPO management largely Sachs secondary Pamplona. There no participation. totally investors, was No, and by

Operator

from the And Whit your of line from next SVB. question comes Mayo

Benjamin Mayo

maybe Just some looking of comment versus broadly up in influencing capitated I that of days lot, maybe quarter, maybe you at some AR if recognize performance maybe, understand a stuff. MSSP a expectations us in they number, Parth, But lot those could And the were that MSSP, the help influences just there's quarter? factors that. the on and

Parth Mehrotra

Whit. Thanks, Yes.

XX as over to So X the months mainly XX,XXX-plus gone to we've lives. or related the grown as the AR book that's so capitated is last from

stabilized. fairly as as book really normal paid QX, our in data overall get to related in that all the results our remarks, with normalize see. know. overall, MSSP. they'll from obviously, pleased sometime little been we becomes performed very year-over-year prepared It's And book, we That's not value-based We're well. So we you the a once as has said

quarter. are Our updated this accruals

the obviously, guidance the for those with. pleased we've update so results today. where the But are seen, we far, move we forward. as we're and So very quarter we'll reflects And everything

Operator

Tassan line Piper the Jessica it For Sandler. from question, from the next of comes

Jessica Tassan

that Shawn. then you was as with on guess is capitated and Parth clarify to kind was XQ? Congratulations I headwind to just the down the revenue guys contract reiterated guidance And should related working X/X/XXX? sequential and of just a the terminated? that the step just XX,XXX what expect capitated the is of what capitated in when great to absorbing contract? in pause you Can And is impact you. getting of And know capitated It the lives we

Parth Mehrotra

you, Thank Jess.

order, those take a few points. I'll in So just

many partner matter. it another the a going the share So health are written risk and -- we're in an And consistency. risk was was But for be partner disclosure our in not of first their you so in are -- you as year. as to number concerned one, this for arrangements involved as again, we respectful that on situation and out far overall, as starting to have these of arrangements, company, of validates with we example our looking we're of public the especially plan such lot control the our a decision this

it and the of strength book, rest the we in value-based the there period our morning and for fully So QX us for that rest results, XXXX, of demonstrates reason confidence impact pause. and and and will to this the be further prior was diversification results our downside reflected the all QX to book impact year. how of our given the in is well no And our again, performed for

further see book. this impact So we don't from downside any

lives, these there then future as decision the be importantly, more will in And we upside. in years, reevaluate

look and downside now we lives under bubble you'll the last are XX%, the notice MA, down. that's chart quarter risk one at reported, the change you when from if So the

have about XX,XXX So and little that -- report. XX currently prior in are capitated from down arrangements, we the over lives that's a

Operator

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

David Larsen

Can actually a what Parth, EBITDA new you term. time also, It's about be much margin between MSSP Any we of that then risk around for good how responsibly. And And talk can and also long take higher deals deals the your in of understanding and my you quarter. enter into? on would you deals? over see kind market color expected margin be risk, capitated Congrats great. that should -- the increase difference obviously, like I bear leaner that period capitated

Parth Mehrotra

David. Yes. Thanks,

Privia's So shared the shared business. on We books effectively how savings the broadly the rate is take our on XX-XX plan split X speaking, defers. doctors, we same of the with health with pie at

a geography, So it's for plan. arrangement, by by track, split can MSSP in with the vary in then CMS. a differently And capitated XX-XX enhanced that health

that's But overall first same. difference. take is So our the rate the

time the ACO a not then recognition in the in like higher a perspective basis, with And that's is capitated the more you're a much because CMS kind lives versus saving GAAP percentage of on we of should theoretically, in over deal. than risk. from margin mid-Atlantic, think number MA our more access comparison, savings fully you just you're the given open you MA managing pretty is shared as XX% closely, see product MA, percentage we top to way significant to book a a business percentage that But or with taking at you MSSP in are margin line go and about to expect start close top to line, theoretically revenue an from given savings really apples-to-apples recognize largest

like the that's opportunity perspective, and difference. characterize that bigger, we from how So to is the hopefully,

Operator

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

Richard Close

and markets terms terms on Parth on to Ohio, of what in tell you respect can out, you tell just North new you expectations, ahead of previously us Can running XXXX? there. and contribution With Carolina Connecticut. were the you Shawn called in they're that -- Congratulations, but changes the of us expecting

Parth Mehrotra

Yes.

be thought implementing providers sometime next Richard. year. Overall, So thanks, would we we

when contribution accelerated from and providers the and muted that year, line platform them. get little later be EBITDA in-year the given top and time perspective a will this still a it contribution bit. year think implemented I this From perspective, line fairly

think those to in footing. over significant each target. starting But into I states this a of pretty to have providers. get And runway these us it always are strong very I All planning or XXX journey states gives try and in period TAM. our mean, good again, XXX XXXX X-, X-year a that's we

in many we a -- large have pretty us the of model providers. each states and partnership those for opportunity with Our X partner to

So these to confidence period us groups that of size medical the over time. to that that gives build

not So be linear. it will

And good so we're and execute. a think start, off we'll I how see we but -- to

Operator

for next of line And Sachs. question, the from Goldman from it Perse comes the Jamie

Jamie Perse

think us back XXX,XXX. this year of seeing to of this you a costs I far how the have, and you contribution accruing sense on I capitated book just over was go year relative arrangements so wanted to last that you're far to what give you're just collections year? Can so business

Parth Mehrotra

Yes. Thanks, Jamie.

go outlined. we're one by that's remaining remaining contract, better we last not expect. it's as we to year, speaking, book, arrangement generally obviously, but on the contract obviously would book, on we So But going than how the paused

So that pretty disaggregated prior well. we at that period look is But margin, for revenue our are medical obviously, XXXX, all the on you you'll see performing and flushed can the both if is out. disclosure stuff the

you the book. on relative costs health to the capitated in-year If $XX.X compare revenue care incurred million of that number

see, you'll clip on we the obviously, in-year are accruing a much performance better for at So deals. those

Operator

Raskin it from And from Joshua the for Research. Nephron comes question, your line of next

Joshua Raskin

I'll both add as well. and Parth my congrats to Shawn

Just sequentially. focus that lives on the VBC change

a partner that right all It very nothing? it it to must side. on the technology in performance had plan even of health you seeing or in impacted hindsight, total changed the like sounds because some the getting that assume negative. Is health in at sounds couple this there the wanted that pause, right, modestly contract positive results like it bucks MA that million savings performance, was sounds that just understand, guys the negative a I And plan to like that to is So or there. then you better think contract? And were just back Is was it? MSSP development, have maybe growth maybe been about way accruing now to fair year, last or

Parth Mehrotra

Yes. Thanks, order. in those Josh. I'll take

attribution. you change the will, the or on employers the So their plan at #X, of the It beginning in there's sometimes as happens year always commercial their TPA if movement partners. most, overall health

So obviously, you lives to that see and get then reattributed us. the

some progresses, see in and normalizes. in you'll year So movement commercial QX the as that

could go There be MSSP some beneficiaries of MA. to the into if well used in some as

And So we do see QX obviously most cases. some normalizes in of that movement, MA but again, QX, we that QX, capture their because book QX, in PCP -- But that changing hopefully, back in they're the sorry, attribution and not by gives were a disruption what for overall aware this that that's plan last face. guidance plan it was we side, then pretty range health on confidence metric. year. significant our us of again, and can that a health the Obviously, on

and a how forth. data, get expect data lot We of the claims we so consistency in

of kind have substantial like disruption in this, getting data. can be you delays when there the some And

the we it, results. what see each quarter what's we in and reflected the end and Our accrue of reflect accruals what close at that's we when

a of more jointly. contract, And decision and particular period there in some disruption some decided you're obviously so a obviously, prior in like risk the this arrangement was the shared of so to much validates our risk, was this strategy thoughtful happens, pause And that skin some have some making the that the the jointly kind of have health we to part reason with the of They plan. some them downside noise why that. with when that game

hopefully, think we'll it I for XXXX. So reevaluate

Operator

from your next comes Thank the it question, you. line And Sandy for Guggenheim. from Draper of

Unknown Analyst

And asked on of is actually, Sandy. have answered. been and questions our This all for Mitch

share to my congrats and Shawn So just both Sandy's wanted Parth. to I and

Parth Mehrotra

you. Thank

Matthew Morris

Thank you...

Operator

for Brian the Jefferies. from And comes the line of question, next it Tanquilut from

Brian Tanquilut

between of about guys I you conversions again what think I'll question both those in around see Privia during the organic to of Parth, organic from breakdown seeing any of you Shawn, [indiscernible]. just guess give color Congrats the both XXX-plus and hopefully, Care for maybe added here terms in and that growth? the pipeline as quarter, one you and Partners the stocks recruitment for terms of can buckets you we're of I

Parth Mehrotra

Yes. for that a Thanks, big that's And Largely organic and will Brian. strategy, be were in care longer-term some quarter, again, chunks. this partners. there

of All Connecticut care we're as provider, clinically starting you that X,XXX with partners effectively, largest integrated with could argue market network.

big those same-store But of of as again us. becoming a be as was year. also So were that's good expected, which meaningful strategy. and will very largely last most for part There the converting organic care partners, was is these this growth, many -- sold of some

and a We very XXX organic large with that's sites us. very are physical in a installed base, good for growth

So we're happen really that excited too. to see

Operator

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

Adam Ron

think patients across in patient value-based But panels it's did and around XXX by number large the down that embedded the up year-over-year the opportunity actually XXXX. you patient the lives I So within divide points you is versus to penetration with the $X.X of come allude Privia's the attributed panels. if you report, and the rate, you percentage it's like million that quarter basis of number

Or new And expansion you expect that you penetration kind from before growth what of new some the penetration increasing rate move doctors? and steady that risk? lines in looking is value-based value-based so, around and if care for are relatively care should you the timing have penetration? patients there to more specifically the is expectation come this is into be of or all what And So that?

Parth Mehrotra

move then we a -- book business where uniqueness and do in you the well-understood sometimes lives the in in existing Great there's the specific lives books, The all question. commercial, is, in value-based and lives have especially of participate where Medicaid. also Adam. of Yes. our Thanks, or in MSSP, book, obviously can a lot Medicaid Medicare And pathway Advantage. MA The commercial have lot a opportunity, a have particular could payer that value-based with much more in geographies. MA into we MSSP arrangements of

will not and opportunity them those million And of think chunks. in happen business. a there's a try some of It overnight. the increase of a is of therefore, that across tandem spread our and patients for to you'll us is second and of and strategy in our our big then -- I of all to that lot these in we the It's form hopefully, And X.X see XX%. partners, plan move arrangements. then, So performance goes ability level the then performance, books move health obviously for massive take us, to our level increased level for of rate with part increase generate for shared risk savings the and doctors value-based

and then and even the quarters that geographies substantial. in existing see that's in a We leverage And network. like operating providers have with expanding we then did to on that, new Connecticut, with new the obviously, on just have seeing you X XXX,XXX as geography, amount new opportunity new existing lives of into book we doctors. geographies So integrated can deals not also new can that. you're clinically top pretty And layer is the top X,XXX on of ago, of with doctors close

come business providers same-store, think it's both book same So and new then with them. new that and of I lives

Operator

Singh next of line And from for question, our the Jailendra it Truist. comes from

Jailendra Singh

both to Shawn and best you. Parth, wishes and of congrats

you are terms assuming some and joined your captured call about a late, for you what has in these providers. And rest I that's meaningfully some by then back Just this, question kind seen wondering talk anything little clarification, guidance and I utilization utilizing apologies main could assuming lives was utilization XX,XXX of question, out about to impact it already you how of And what highlighted that mean, revenue going the I covered my class? business if a incremental so in was for I'm quick full-risk trends if decline? 'XX? headwind. just Jeff's the line, in were guys to terms of you of between different of payer the across trends now strong

Parth Mehrotra

Yes. Thank you, Jailendra.

I'll in order. them So just take

all period So that book are in results the noted, And we we one, that, on really on first impact as our recognized QX. despite prior strong.

by more of good largely the than in that So was value-based the rest book. our offset performance

the side, top again, On fee-for-service is well. line value-based performing the book both very and

of lot a So there's offsetting.

the patients. the these you us. to doctors we capitated us guidance confidence any still will maintain net are fee-for-service don't seeing arrangement, as eliminate see our revenue have. are So with these back add gives which we we still lives Obviously, The impact, because if

And maintain us the for bodes so guidance. lower confidence impact is the that net the perspective, to again, much well having that from

stale see So of seeing that's line net gives a line both maintain if our hopefully, top COVID what to our not the and the has we've guide. this to is good utilization upside. are offsetting, last There's And with point surprise, plan is guidance. that for should a we some there's And of end be very through again, or year. then just we confidence period a gone trends. the That prudent strategy at and consistent the year And impact. perspective, we bottom utilization continued from some movement as to there's any and when pretty us further is

previously our about stable some seeing as we've you're across out continue which book. be that even talked seeing are strong our been pretty to or we So utilization, lumpy, in good specialty has play Ambulatory trends much can utilization strength but of versus surgery-oriented book more now.

Operator

question, comes And next Stephens. from it from the line for of your Garro Jeff

Jeffrey Garro

Shawn I'll echo to the congrats and Parth.

in a of the my think platform the and the the good I'm is, I spend question just And late, I cost think me. but showing of missed of are on number incremental the need gave how for then the curious larger you of if if of Just rest platform there? jumped there leverage care seeing to I any Maybe you you it, any want partners, year investments of timing providers the quarter, that from question end see to bookkeeping period? at

Parth Mehrotra

Yes. Thanks for question. the

in Just them order. take

all million-plus out are breaking in the attribution. they but partners care separately, included X live not we're So

said thereabouts we've quarter. the at Connecticut before, XXX,XXX lives, all all as partners the care Healthcare outlined last Beebe about Delaware are As care we partners, is in

and see you numbers the those we will do But chunks again, we in of So expected. better grow there. it's deals, as and than can over some -- what these

that. about excited pretty we're So

some are platform implementation from states with level pretty year. obviously, consistent the new in, start again, because that perspective, comes see spread top and setting contribution the to course leadership sales up the is operating these then during year of fairly the you as And a course spend teams line we of spend more and But the equally standard impact leverage. throughout of then is

all last results see year in So again, given to you similar happen from quarter-over-quarter, a trends MSSP modeling payments the perspective, QX. and should

pretty the So pretty consistent. is much, trends you'll same spend the see but

Jeffrey Garro

the that following And any give believe up implemented just providers then number I things. I in could Great. on partners on the included the of side of you count? care that's provider not see just wanted to detail knowing if

Parth Mehrotra

about Beebe not like out. -- -- Connecticut there some mean, are breaking it's We're that said, that XXX We've about the I that's providers, was X,XXX, disclosed Yes. Healthcare obviously, again, PCPs. I before.

similar to last it's said we So quarter. what

Matthew Morris

on Yes, partners we the annual expect number basis. to care an update

Operator

Daniels the line last it from the Blair. question, for William Ryan from of And comes

Ryan Daniels

my the and nephrology you I CKD, with question with congrats you're great hearing lot Specialty a like a both cetera. Parth things been add Care lot involved and but Shawn, business. about guys. revolves more know the in working to we're of it's buzz I'll oncology, do My et ASCs, in you pediatrics, industry of around

what curious I'm If out risk-based purview going some of participating and contracting? aggressively care organizations at groups you those more type or some of in with So specialty there? is your the accountable look

Parth Mehrotra

it. groups of XX% appreciate day are from Thanks, Yes. Really reason. multi-specialty Look, we X been this have is consciously cost for from the PCP. Ryan. downstream building the particular

as we of -- of a forward. very at big specific and strategy can specialty we look minor forward. have specialty should already geography as a specialties We lives, through a us great you going in platform. in But going organically part opportunity think way, And outlined, well and these both in I to or forth. be, as so it's partnerships, you I today strategies. It But We some I for have our think bundles us a will it's then specific forward, in XX expect density going as and impact. specific internally disease-specific pretty our programs some participate so we where big again, think make

David Mountcastle

have we if So to no statement. further quick closing Morris just questions, a Kyle, Shawn I'll make ask

Matthew Morris

you really continued for day. listening company. your today. you, I everybody, Thank the support more. call forward rest We you, and for enjoyed to Enjoy to appreciate our getting know and interest talking Sure. look of I have to the to our

Operator

for And participating. concludes Thank this you. conference Thank today's you call.

now may disconnect. You

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