PRVA - Earnings call 3 2023 | Privia Health Group, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Privia Health Third Quarter 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, SVP, Investor and Corporate Communications. Please go ahead.

Robert Borchert

good and Gigi, you, morning, everyone. Thank

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

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

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

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

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

Parth. Now I'll to call turn the over

Parth Mehrotra

questions. performance overview outlook your an provide we before execute performance I'll and quarter financial continue take another recent Privia as David Health our Robert, drive highlights, to market morning, then key of our you, This growth. morning, XXXX to and fronts the third Thank multiple our and solid and will extend in reach we delivered discuss business MSSP good on future everyone. guidance

positively we same-store we record provider experienced added density delivery, gain As Privia the implemented provider operating providers ambulatory first providers and in We center and Health solid impact care implemented XXX the We the nation existing as with quarter to care new in of states. one the and providers. provider continues build largest the market share network in increased our XXX XXXX, highlights of X our momentum. additions a through which model months

South than gross XX% the collections year-to-date versus In our provider ago practice our states, remains These of in company's year while growth addition, of operating continue in state a number our new of XXXX states. XX%. entry our and lowest announced into existing more history. to in drive the EBITDA quarter model in providers scale the Adjusted was near investing we factors helped same up our QX increasing we Today, attrition as Carolina. in

with We South anchor partnering Associates Greenville launching ENT Carolina. as are and Medical Group, partner our Privia in Allergy

expect the first with of XXXX. to platform Previa the group approximately providers Specialty in XX the on be We half practice implemented

we've significant state XX we about the expanding excited new are progress entered months, the South our Carolina presence. over national sixth is our past in and

and In our original we new of while end addition, flow performance, all market can mid-to-high financial free see the entry year-over-year absorbing our at as are delivering you costs growth EBITDA guidance. from cash

in over which for groups footprint, includes now our implemented caring X.X than to continue We expand providers million patients. medical more X,XXX Priviaâ€™s national

programs. across scale partnerships country. remain approximately Privia more District of and largest X,XXX diverse Our XX building in million attributed serves differentiators. care And lives and Total broadest, multi-specialty government value-based than focused from the are network commercial model. XXX balanced as Columbia. care delivery provider platforms most at-risk of year groups is increased and the care one business more This on states and attributed payer We more of across book payer medical business our operating the of span of than our one to than strength a X.X core and locations in the our the positions XX% center our the true lives The of and ambulatory diversity value-based diversified ago. in contracts industry.

broad addition commercial as reimbursement. Across contracts, fee-for-service value-based a management costs. a value Medicare and well to year outcomes to savings lives attributed and $XXX,XXX. care as Our lower and proposition providers, Privia We better to payers differentiated commercial, increased incremental patient to payers benefits XX% fees generates own for drive Medicaid highly offer ago from we our population. shared This Advantage across in a financial

free to As increased risk arrangements upside cash last while us we noted for moving over into downside Advantage the a few remain Medicare thoughtfully years. move opportunity significant lives remains EBITDA growth. focused to We to for and embedded and next significant risk flow our on opportunities quarter, provide arrangements there continuing

without Privia not and well accomplished X,XXX-plus strength performance the dedication overall employees. as hard all strong be physician of the our partners and Our could work provider as of

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

David Mountcastle

Parth. you, Thank

is than ACOs XX,XXX care further risk into all publicly our across our performance across from positioned We in was operate book, almost better in about compared lives XX% arrangements delivered We success released savings succeed spectrum. of second year cost including the MSSP with across shared Mid-Atlantic of Medicare. to for We fee-for-service the of the total solid which the below the up largest we This of XX%, of in see savings in with ACOs. region, in to the value-based row a million, savings highest in shared in show track. rate XXXX a for year. and country's X patients late greater With one well continue program performance lives. even our ACOs, peer and that earlier. care ACOs year that The attributed enhanced the carrying Health Medicare August to performance our total significantly the downside MSSP utilization when generated savings XX% XXXX, XX,XXX We of Privia risk and expand value-based in $XXX results lowered

have XX For performance in ACOs track. XXXX enhanced year, the with MSSP the X in we

year the over Privia in performance Health's MSSP, $X.X During billion ACOs spend. medical XXXX for managed

only collections and success which continued deliver profitability. to transitioning recognized and increased the risk and GAAP quarter of our we operational time downside financial in million. results XXXX. strong savings Health's over However, third in our shared approximately practice execution performance to revenue, gross demonstrates share we $XX was as Privia the generate This clearly value-based contracts of

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

QX ago to and EBITDA leverage ambulatory year and up reach we to providers million, year led implemented XX.X% and million. XX% to ability Adjusted practice markets. operating as $XX.X $XXX.X in trends grow strong our utilization New to from new generate QX was continue highlighting expand existing last collections over increasing a to

from to For adjusted the XX.X% almost margin Care $X.X year $XX grew XX.X% first EBITDA and ago X increased billion. was XX% of collections a XXXX, million. practice months up reach to

continues to generation, profile of debt strong cash no business with very forma balance and cash coupled approximately pro show Our million. $XXX

in MSSP. the in as in received on October noted CMS the of Privia million savings cash portion for in year XXXX from generated $XX.X As we of payment performance slide, shared Health's table this

and We last you year approximately well. cash recall, quarter success CMS MSSP, As $XX.X with may million XX% in received of we net our share in fourth approximately then Privia. their to as the providers leaving payment participation for

flow million, the cash forma received year-to-date for Our $XX.X CMS. from free was cash pro net

Our guidance updated business. model operating the strength resiliency of and XXXX diversified our highlights book of and

as our contribution of above ranges initial We are our and the in communicated maintaining report. high providers end guidance other platform QX raising metrics our to implemented previous our updated guidance the for and for

very strong. Our year-to-date gives and confidence level performance our high guidance to us of updated the close a year achieve

operating enabling us EBITDA approximately expansion XXXX. to flow Our robust million growth in and free absorbing new $XX deliver cash market financial costs entry while is and in and model

in significantly We more base our markets states expect we in while our attributed unit years to proven as grow new markets. economics and provider our similar new mature the coming to these lives delivering scale

nation, efficient care convert our capital providers we partners are XX% forward physicians, look of partnership now the Operator, than Health of Privia patients. into EBITDA your XX% this We We ready continue to our we year, expect capital their annual and one of in networks model free system and $X cash adjusted building expenditures on focused to the given flow to continuing to serve remain our million. delivery to largest to health questions. and to ambulatory and take less

Operator

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

Joshua Raskin

competition providers markets the that curious implemented I more sort I older just you've health of and you question for these spoke some what I'm networks just more in or specifically to. in new been if upside Parth thinking is would be, I'm guess coming opportunities. And density, conversely, of the the building the starting other are seeing out think from? of I guess then providers? big some system of the with for that's that

Parth Mehrotra

it's as So good noted we've and sales, seeing new in states. the we happens we've our And a in had as months, record X-month providers lag. a and very the a obviously added implemented strong X remarks, reflective combination, increase We're existing noted. X then that first prepared in of that's had we with in very states density

which broad-based, really see. very good really it's is So to

understands are with a we our model model partnering proven they I everybody with Privia and gaining It's unit traction. of lot very think proven, a to for. is economics speak what

seen we've decrease an around last in we participants year of year been while. competition have think increase did the before. I or So or a lot A don't that the for

a from speaks our a the strength and to I from what think coming gaining So new of of we're and model, which momentum lot are existing sales you'd see. like traction referrals to just the physicians, of that's lot just

Operator

ISI. of comes from Elizabeth the Anderson, next from Our Evercore question line

Elizabeth Anderson

you I expectations. little some missed think the of MSSP there's the Can perhaps accrual? out more a market bit in there talk detail continued that about sort on

How to I on helpful. be you the So just think of you math, which that there versus provided would us And say else helpful. explain of accruals How that? know about you was kind performance? could kind about the you anything think like

David Mountcastle

quarters Our a earnings noted basis. quarterly CMS call. methodology is from on get in We fairly we've consistent prior the as data on

are as the updating current year the We well that accruals both as year on prior data. based

our So data payment â€˜XX at is reflected. accruals And obviously received trued the far. with XXXX not up of that's so then this perspective, all in nothing finally from we 'XX accruals a and the year, received reflect point results the the

that we every quarter. So update

Our estimates. guidance updated reflects those

fairly to a our market I'm are been sure reflected methodology has but expectations in not we perspective, So from what consistent, guidance. and that's referring our

Albert Rice

guidance, I you have you're we but things generally, or obviously, Any should it's to specific together think early, the pull we thoughts year if even early know think about and in this look we keep XX because these takes ready ahead. and as about out date. at thoughts but puts Maybe when to on not give mind,

Parth Mehrotra

it's pretty and XX We'll similar results early consistent The next from expect. what takes QX you'd years. issue much fairly to are what Look, past guide when puts we year.

You're seeing provider very That's this strong number X factor. additions the year.

grow. You're lives seeing attributed

So business that shared book get value-based impacts value-based diversified very our our data. as and estimates our commercial update new MSSP savings we Obviously, on we'll book. across of across

will new that X. And So obviously, we entered states, then X we've be as number mentioned.

those states, So in momentum investments those in states.

as we'll think X number absorbed year, that we have we've I of million communicated about this cost. $XX be

to that And are we model. scaling operating expect continue. then our You'll obviously,

flow. outperformance proven that most cash We're are on economics really down markets. the The platform the see, can deliver into you mature unit contribution. P&L to the free and able in As

continue So I you'll next year. think that see to hope into

So puts next close and think, the and up, key it year the issue to those, then all try I strong early tally year. and guidance takes, we'll are

Operator

Jailendra question of Our line next from the Singh, Securities. from Truist comes

Jailendra Singh

that Elizabeth's ask I differently. me actually question wanted and up on to question follow let slightly

And results. sequentially. true-up have So a it any how businesses? trends figure item non well? And there's program MSSP like lot savings focus what there? $XX includes key down to those have Maybe business more shared that was the on out savings in quarter? as that some your related Did of in MSSP spend in you been million important, I understand time

David Mountcastle

of in prior the lot any year. QX Yes, year we from I'll and definitely year, a QX every in true-ups, our of say, have typical

quarter-over-quarter And at to you're last so a there of year. And you is on really a rolling XX-month what an We we're I look that take pretty you'll to on basis. I and basis. see really say, basis, really a see would what XX-month normal on rolling of a up we're look a annual just from again, think probably seeing view using variability sort at say basis, that's on some, that it. would want we XX-month significantly this. And go-forward from

any. expecting not we're So

Operator

line the from comes of question Richard next Close, Our Genuity. from Canaccord

Richard Close

Congratulations.

XX.X%, Just in the quarter, ratcheted to it second think here if not the looking care XQ. of I at down in mistaken XX.X% margin, I'm was collections

would call out Just anything be to on helpful. that

Parth Mehrotra

I shared It's movement. think the new fee, in and that's on value-based quarter-over-quarter some states. management just savings pretty fee-for-service by impacted minor existing trends a book,

nothing again, expectations. significant So our variability from

we've You year. can with guidance, pretty what our the outlined from the see at in line beginning it's of much

I that's variance. So quarter-over-quarter just would say that,

Operator

Our next comes from Tanquilut, the Brian question from of Jefferies. line

Brian Tanquilut

just Taji couple then looked care the out? forward? really to think would the be you I care management in of that confirm not on to the Phillips, the that lot commercial of about to we Nice where a just there two, risk for that's One, sure any are progression fees savings, getting been we've I ask It's shared part fee one-timers on quarter. wanted of would line a work all. strength. you but want thinking for strong on should contribution And I call Can commercial management contracts in make questions it's quarter. any land? Or of how Brian. risk going

David Mountcastle

So we is this business. one of parts of most our underappreciated the think

It's value base one As our platforms we lives we this highlighted, level of commercial XXX,XXX. that about commercial does only at the actually of We're very value-based significantly. grew scale.

a number partnering are with different We states. our payers of across

see shared and management savings that. fees So you reflect both care

our XX% And demonstrate can a population. reimbursement as It's these pretty the typically, on you or noted we the where going a which prepared payers, in payers, on step-up or significant lives, is in you the a contract It's we're getting both a are significant $X $X platform not take of We depending self-insured impact fee-for-service full PMPM over savings is great remarks, MA. risk, then $X the where make on ability for employers, our for And us it's population cost the the it's metrics. that significant of pretty to not proposition. can obviously, shared getting care. the commercial think not to a all U.S. but anywhere we're trends soon. curve think work. on and very health a away And value cost top based population to we're quality certain We I on do It's bend that.

commercial So the book, you're a reflected seeing some the of is stable the it's strength in and as stream results. in income very

book. of the we variability out the So balances really like on how that some MA

Operator

of Ron, comes question America. line next of the Our from Adam from Bank

Adam Ron

new question. When mentioned was lot entries from of running and out you to wanted and really starting last the a tough not are quickly for It exit really I the XXXX, follow only up with puts really you rate on at the a growing from entry whereas that high geographic mentioned. A.J.'s costs you providers. markets X-state tailwinds, given of you mentioned a takes year, kind there like emphasized comp that seems

are headwinds or EBITDA And be here? about? run still growth there think we rate long-term the so we we actual should that about as from thinking be Or core about should conflicted XX% growth should like how guidance

David Mountcastle

the market X year continue next costs tailwinds entry these by new as demonstrated headwinds. into highlighted mean markets. will both We I new and

been that over shared savings fairly book. Obviously, we've where is just one all the look few last think the puts takes at consistent other I and the with on the MA we'll quarters.

You're from hearing design utilization, by XXX changes increased coming. benefit impact commentary payers, about

both and just sides. we'll tally so will all there on be and puts that takes up And

our I So we'll our think issue that when reflect book. of guidance, in all we

will always it both So as be of it is. combination a

Operator

Our of next Senft, from from William comes line Blair. question Jack the

Jack Senft

or year, is I in something quick in you the your for Is past. of to? state yet, view over Or the just guided ACOs. geography too. function noted mainly is year? know And terms the which EBITDA know the the an follow-up, than a aren't geographies new new there you start-up topic past adjusted XXXX the next of a Do additional $XX of there? initially you earlier costs discussion guiding you in just for one then updated a it's for any but have faster fixed the know this I maybe target I costs dates that entering In million XXXX guidance, and

see expecting So just trying next to there year. for what you're

Parth Mehrotra

what it's very similar said So previously. to we've

It's of correlates to of join new The in the spending spend market, it's all and some size the in perspective. of and in sales before million of anywhere that this any to from comprised from We've $X a those consistent platform. sell to marketing, middle come mainly We are size costs, market. entered leadership, million $X single implementation the these new markets we the fairly year. of provider

that we've no of what the obviously, from cost seen rate And that's year. next previously. run you'll see different So full

part normal a business. it's doing think of I So the

what's exciting on into been we of entering leverage as an the I our think despite P&L, likely is on flowed well, performance have where can are the more had see the outperforming manner. platform on would you contribution. us some not geographies for newer EBITDA accelerated geographies, That new in it for

hope our add we P&L know. We don't as them these continue and costs. is to So back, the absorb scale can that you

margin think to with So the top are we we'll are scaling continue really I economics, of consistent very said, which markets that. mature exhibiting are unit that, And long-term markets do profile. like our in our existing on most

And all about all see new execution in states now them and the really get to And so that. we're curve. just these it's excited up

Operator

from comes the line from of question next Leerink Mayo, Partners. Our Whit

Benjamin Mayo

an physicians guys your track, in some guys XXXX, I you are my legacy for was had savings? beginning planning just XX%, then plans new your clarification, you of misheard XX% of advantage maybe wondering any into paying for move comments you ACOs ACOs? other take MSSP just are I any I the David. or are to what one you. had was enhanced changes? it And just plan notes, to the changes for any Did you but in the thought that that your providing of I with prepared And I of say

Parth Mehrotra

our So entire we're through going book.

year, saw we ACOs. As X new added you last

X existing those in ACO make just these markets, We determinations of out you an new given so of in the add some have may XX all we in the some Enhanced Track, of timing. lives

So year announce we we'll last frame. any like time ones in January-February did new

through think we do the it's year and states this makes consistent. new us. just and at look enter been But entire book for fairly go what I every as So that. we'll sense We

enhanced doesn't. the to Sometimes to it sometime it makes sense move track

evaluate. we'll think I again, So

ENHANCED I think to all the existing maintain an continue ENHANCED expect track. we'll should that tracks

think go and continue performance. hopefully good don't I we'll backwards we So our

David Mountcastle

And XX-XX. our value-based care book is still

So but any whatever, there I apologize if was or there mishearing still it's XX-XX.

Operator

Our next the comes Stephens, Jeff Inc. line of from from Garro, question

Jeffrey Garro

Congrats on together like the looks hoping was development small looks profitability couple for discuss I inflection favorable book. quarter-over-quarter. on quarter. from a period I that that could it And benefited the you like the book quarter. lump MA have year-to-date. you pretty a I'll It capitated in prior the that a

but reverse, we contracts that you year? in see portion should and would to of about the for love XXXX providers' performance next detail make get in think collectively about business to interest there? that growing good So And as decisions how year-to-date lastly, Privia more influencing

David Mountcastle

you correct. are So

premium that years data are seeing as is Primarily, the We some farther some costs. the estimating in that been favorable say, the this yields as business. from would It's lower our we for better it medical And cap receive in sort Again, that higher I is positive we amount year, past. of payers mix momentum The risk again, seeing we of year business. more process trends that in and get have. the full we're obviously, same. estimates into our a

Parth Mehrotra

more be question, assuming our consistent going of we half to And are the on the I second with risk. very in process think

do providers, payer each our We ideally thoughtful, into game previously, the risk in a just and methodology. backstopping together groups. to take now very risk. make with state, payers at pool more We're approach. with jumping That's preferred We XXX% it skin that partner. versus have have each like determination with We As our together risk. look some medical we've deliberate stated the our we much

don't approved, think where more utilization being equation number If risk you blindly commentary from some again, impacts of I drugs the of changes, environment. coming think broader prudent from managed of thoughtful just of so is our that care the pike, a perspective. a We the an kind the some in this take new that it's MA environment benefit you're seeing changes approach pretty Part companies, an D risk. B-XX broad you environment, down see with design

payers, we are our as previously, have earnings looking, for So to shared savings, maximize maximize for we the said us, for power providers.

all makes up just we'll so see dial risk. it tally up the if sense and And to that

have don't go going providers the not that recognize anywhere, our patients to anywhere. You they are see

up then sense it and a So it's if in a year. will. And And just won't. makes environment to financial dial it every if contract this we doesn't, determination risk, we

just continue think going to approach. we're thoughtful very I take So to a

Operator

the Our next Gary Cowen comes from of question Inc. from Taylor, line

Gary Taylor

I hoping go the to a for than just is that Sorry savings see. a was sequentially for shared down the far but more typical to back quarterly minute, we million $XX variability direct answer more

the have primary think 'XX performance that the the accrued mean year-to-date accruals your for you've is XX% going And So 'XX been line year, half want the just the in of forward, did to XX%. year? to we up up the you for ask rate Are had I lowering only run you reason first about what performance I year? lower now

here think is to back about to accrual it that the higher upon been the move year? modeling? and adjustment of the seeing half weighed Is an first we've in how So way go-forward what by the

Parth Mehrotra

Yes.

So XX-month would about mean, really this. view again, look again, earlier, a of talked as I I I at

years, final different the come we get look And sort years, the timing So not XXX-plus the times. at quarter payers. if and they of of and estimates. when some the the really in upon from certain this XXXX years It's the over a XXXX of you one final results XXXX. get depends in change we from out year We've information mix other. It's in or contracts there the our of when the got was

at and future perspective, looking I'd at basis. XX-month a on view modeling looking really it a not So stress quarter-by-quarter a from again,

David Mountcastle

I MSSP would is, other Gary, And color give this is spread across MA. the commercial

can the one-line adjusts that of focused the and unlike see lagged can we results in commercial you have the That's CMS data very point, how at how in they the give or is So time. in structured than variability some commercial be data. gets same typically a a more sometimes. consistent it MSSP It's business, not to is very Everybody it MA. program. in David's us

business variability some So again, can book as and that our of diversified, pretty of result. is a you see

So understand that's run kind rate go it the give about guidance, maintained annual like of some when jumps what this We But year. at. is our probably the we're best quarter-over-quarter did looking way And it. quarter. causes we of that to that, we've the view

Operator

Our the next Jamie from of question comes Goldman Sachs. Perse, from line

Jamie Perse

you X unit breakdown provider between implemented versus about by X, shift? give if how think an And how partners on there's mix growth or those is care your trending us just economics update between any how the categories. primary to kind specialty, Can of been

David Mountcastle

So consistent. mix X,XXX-plus the broad pretty remains on our providers

XX that so what We to care, medicine total that's family gatekeeper providers, medicine. have we and about XX primary call as

OB/GYNs include We pediatricians. also and

health forth the we good endocrinology, a system pulmonology of us. states specialties nonsurgical have where the is platform, partner in Florida the in on the whoever a and on be again, example then that's to with XX% help there, contact are point more the family. we of So remaining can the first specialists. And And states XX% given is the so some focused for

you states that as see side, add rest business more skew grow expect. You the and the providers, of we other across as But can mix normalizes. of independent stand-alone would that kind mix the specialty the

So mix. varies it by but bit overall the just little a that's state,

pretty this question, we've that And we care price both what book. the in on specialties. unit per provider specialty fee-for-service earn on mix. second more economics and the are specialists To implemented primary obviously, certain reflects the so year similar that,

consistent pricing economics. reflects And a the so very unit

value-based care is MSSP, we and book, the on take savings XX% the increased. primary of on has rate the management contracts, fee some into The economics the significantly unit fee-for-service. start MA shared the obviously, On the start versus get to risk those once --

over the to primary that's time So business. like the what and the unit in economics increases in really see we care,

Operator

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

Jessica Tassan

So in IPO, the I thinking At to the strength low a the I think PMPM. those of think has we're stood single-digit time really value-based us. about lives commercial as out care

that's really through And is there just these both? still if So robust interested those then to rates a to either an XXXX XXXX sustain or or growth growth assumption on lives kind reasonable opportunity in know of lives. pricing

David Mountcastle

We would agree.

think underappreciated part of a that's I business. very our

You business inherent the has side, fee-for-service almost think ERP-like very our inflators can model as pricing that a it's rates. model on with of the

increases. as the management also So panel poor in same-store with we growth have a at provider, are inflators increases, and looking contracts, we the fee patient provider generally on

Netflix like on $X, that's that very PMPMs, So analogy if good a same-store we a a $X, adds to very on margin stream say is -- helps $X PMPM of that get. That's business, fee-for-service from a an really that. the Then basis. perspective, and the on good you reimbursement add the top of that I very would top annuity

we We previously this the said broad like one of curve questions, And with the in doing good work very a for bends really payers. population. very are the

their can You bend MLR.

MLR self-insured bend for the employers. You can

of of We network large are some and our do very very and book, with payers geographies. having few density the in take our of the medical forward we advanced risk allows scale discussions commercial a the to on this us commercial at model the and take groups it some the platform do strength very on how

that a excited will of So lives, attributed be we're think a combination pretty growth next guide Again, we of this February, in contracts I but from book business. about it year in enter. commercial providers, perspective, we'll

value-based we is As with serve X/X you or X.X of about commercial just X/X that at can $XXX,XXX. less million than book and that of the see, patients,

is optimize get that think the and the you years strong pretty some fee-for-service on you but then of contracts, X all these power or value-based we lives, is new model get that X you providers, can our So machinery markets, the in operating when MASS in layer very stable works. we And their earnings and take commercial top.

of numbers play You're that in year. seeing out the this some

Operator

next the Larsen, of comes question David Our from line from BTIG.

David Larsen

the a volumes how bit your you relative or volumes Or diabetes, you all looks the in Can of positive sort expectations? be headwind because a your does was for fee-for-service your talk to can own a very to net it cash And good. growth more little GLP-Xs. neutral? like collections book quarter trended of about It on Are comment obesity, risk?

Parth Mehrotra

a way ambulatory predominant gatekeeper almost So you as previous inpatient doctorâ€™s we've calls, in have utilization. distinguish between to volumes, our surgical book have pretty and said we in versus on which

the been has strong. So former pretty running

see. it strong expect all the data fairly we be to from We

You see in minds And the individuals in the that's primary are as across cohorts. their seeing age our that good provider numbers. utilization

the directly some from has of seen trending but does That been commentary I think not companies. high, impact that care fee-for-service. on us the you've managed latter, the

On book the our or taking of commercial risk MSSP MA, inpatient we're fairly surgical risk. upside and not diversity in It's between hedged savings. book. some downside with value-based book, shared We're given PMPM-based commercial, The spikes in very the utilization. value

So a don't see program. benchmark relative too you is MSSP much impact.

that and are exposed but acute. So we're we again, that there much can. And not trying the then manage to as could as obviously is it's to we impact, MA book, be what some

are to news. know the a all an seeing from too we hot look, lines on early pretty all second think I topic overall And it's it's business. across GLP-Xs, media I So perspective, favorability given question, of the

data. still some to months we're XX, see XX about think empirical real I away

more patients a be. we that Our the up, whatever conversation drugs try impacting to is specialties, it drugs nonsurgical see impact should more how try condition these have utilization interaction takes have providers, and predominantly gatekeeper of chronic it's patient as existing these network see in as of to our those their or of that to as hope might

So more again, as go should are lower if the lower as volumes we a this utilization ambulatory that side. healthier, value-based book, leads surgical broadly is impact positively much if then think expected, the value-based should as the up to leads to result. on it people on And chronicity then

data out. I we overall, So how empirical should plays we'll the positive. But see be think

Operator

Parth Mr. conference like now Mehrotra, remarks. for the closing this back to to time, turn At would over I

Parth Mehrotra

listening of to again and your Thank forward with our and the Privia you continued call for interest support future. speaking in We to near look you today. appreciate

Operator

today's This concludes participating. Thank for you conference call.

may disconnect. You now

Privia Health (PRVA) 3 Nov 232023 Q3 Earnings call transcript