Privia Health (PRVA) 8 Aug 242024 Q2 Earnings call transcript

Company Profile

Participants

Robert Borchert	executive
Parth Mehrotra	executive
David Mountcastle	executive
Joshua Raskin	analyst
Andrew Mok	analyst
Eduardo Ron	analyst
Elizabeth Anderson	analyst
Albert Rice	analyst
Jeffrey Garro	analyst
Jack Slevin	analyst
David Larsen	analyst
Richard Close	analyst
Jessica Tassan	analyst
Ryan Daniels	analyst
Michael Hall	analyst
Ryan Langston	analyst
Daniel Grosslight	analyst
Adam Ron	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Privia Health Second Quarter 2024 Conference Call. [Operator Instructions]. I would now like to turn the conference over to Robert Borchert, SVP, Investor and Corporate Communications. ahead. go Please

Robert Borchert

and Regina, everyone. Thank good you, morning,

Investor me David Mountcastle, Parth being and in our priviahealth.com. This Mehrotra, and Officer; webcast the accessed be Executive Chief can section our is of Joining call are Relations Chief Officer. Financial

slide release following Investor questions. And are posted prepared line for comments, we Today's Relations and in of section financial presentation press the priviahealth.com. our the will open

can return a limit please yourself we to So follow-up, the have if you question questions and to many queue to only so as get as X possible.

our and Commission. The Exchange XX-Q financial are ended filed today second results is June and Securities the reported are with preliminary not XX, the XXXX, final until for quarter Form

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

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

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

turn to like the call Mehrotra. over I'd CEO, Now our to Parth

Parth Mehrotra

we This and our recent Health to outlook morning, your markets. Then and good key Privia questions. David provide we of to morning, an results half year the posted and performance . and financial first all given executing performance Thank in everyone. our before across the some cover of drive are continue provide XXXX of strong business will discuss Robert, take operationally update update. highlights our another guidance as strong you, a I'll financial growth well our quarter

business. momentum continued of across quarter, all our aspects second the Privia's During

X% exclude great impact the Implemented making strength towards than delivery increased in additions collections of operating to line capitation more we the one vision MA a of year-over-year the the EBITDA the are XX% nation. and absorbing and same-store increased the contracts market in We provider year This providers beginning new build from when care continue performance. top investments. ambulatory you was drive grew as restructured in our XX% new incremental progress is practice to reflected largest QX XX.X% year. long-term Adjusted leverage while up of growth at our networks ago.

business growth Our for both development existing pipeline new and market market remains robust.

million a We flow, growth. have of conversion no well cash which and in us free annual for $XXX durable positions cash, EBITDA to long-term debt strong

solid rest diversified physician environment. differentiator our platform today's of the model Privia fee-for-service attracting to strong and in are underlying the serving The first our mid- to half we visibility high the to and our guidance performance community year, all Given to value-based in a of into key the practice metrics for the across combination providers continues high end increasing all metrics. be business, entire

implemented Privia's of District At and for footprint had we expand. than national Columbia. more end to million states the across X,XXX providers continues QX, XX of patients the X caring

our working new provider expand are and state in. into states, we We to increase across diligently operate density every

of one ecosystem. community-based health in large-scale, high-quality to aim is medical the the that assets most build care important groups Our will become

satisfaction high the Score as patient have Net XX. We very Promoter in of reflected

a geographies. X Our our our years. retention XX% over is same-store retention XXX%, net On the existing growth has past more gross over averaged given than and basis, provider provider -- in

ago, than now platform the care government value-based more Privia balanced XXX-plus a XX.X% million programs. Total lives as expand in most commercial across to broadest of and serves year value-based reimbursement industry. X.X Privia attributed the continue and across increased one places models. over attributed players which from We diversified QX our lives

last increased year XXX,XXX. lives XX.X% attributed commercial to Our reach from

own management proposition management our arrangements our is earnings We and This care incremental highly strategy in are fee-for-service drive fees. our to various long-term predictable fees and value to opportunistically differentiated a medical offers groups generate that time core attribution increase to growth. our shared to over to risk savings future

of challenging Medicare We shared well continue MA navigate discussed steps the environment perform and quarter. have to as in business to our savings proactive taken we book last

to year-to-date our David financial ask and and I'll guidance results review Now QX outlook. updated XXXX our

David Mountcastle

Thank Parth. you,

We operating an grew at and increase strong implemented QX count XX.X% -- from continued to sequentially Our performance provider financial reach year-over-year. second of XXXX. XXX our of X,XXX XX, quarter the through June

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

As capitated mentioned, of out for our the flexibility of we to and shift agreements model enabled contribution previously us balance attributed lives margin. operating improved

collections practice year-over-year Excluding than of second revenue XX% our quarter quarter Medicare second the increased Advantage renegotiated XXXX in capitation XXXX. more agreements, from

shared Quarter-to-quarter -- in accrual due value-based The true-ups savings was as contracts. revenue XXX-plus expected over to variability

helpful annual out it the variances. quarterly to savings to our revenue basis mentioned shared look trend smooth is most at we As previously, on an

despite was EBITDA up new markets. continue investing in generate we to Adjusted reach to over million operating XX% $XX year existing last QX as leverage and

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

strong practice our $XXX now XXXX, guidance initial given our range the of With and to half lower reduction from of XXXX, the agreements. first at end all ranges. our approximately in lives that full we end MA risk a high capitation exposure and from of be million be are expect mid- XXXX to to other attributed initial high We assumed our performance year guidance. through collections guidance metrics high raising visibility Recall

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

flow. significant of free with shared years, operating the XX% second savings to a in to our Given half of of payments we capital-light expect past to cash cash our Consistent we EBITDA our adjusted the year. portion expect year convert model, approximately full receive

for momentum for and as growth increased We footprint. business national us build and operating to of organic continued dedication EBITDA we business our to growth us their drive these would physician provider help has our free and partners achieve to hard thank leverage long-term employees flow Privia's results. and like diversified adjusted cash book all positioned well and work

We your are ready take to now questions.

Operator

with Josh [Operator line question Instructions] We'll Raskin the our Research. from take first of Nephron

Joshua Raskin

First sneak into. question, maybe I'll

I know debt. gotten with by The million before, but no safely you'll the over first cash this is, year question end of in $XXX have you've the

about priorities? are how capital you updated So thinking

give utilization the on quarter. were even there And any and to trends then, first update the just as us secondly, differences maybe if if progressed could or quarter an compared you maybe

Parth Mehrotra

Yes. Thanks Josh. for Appreciate it. the question,

of lot our Just top mind of for shareholders. a

cash, look, broadly, the on then a I big comments few and picture the framework. So think .

organic fully think I on the is our recognize expensed what's of P&L. important lot growth is a to

looking fully you're providers as expensed previously, to P&L. if in XXX the So add, XXX implemented that growth to said we've is each year,

are So XX-plus few years. cash converting to despite we percent free EBITDA of over now that, the past

Xx it next I comp relatively, think if industry. look best the you in that the conversion rate at is

which between double same $XXX to by is free out, we of million don't the So or otherwise, the spend EBITDA business, to flow get cash still our if the pointed year. as cash business you lend rightly as probably somewhere and million development any we close you in pretty $XXX could incredible. end And activity almost this

And we at as looking so is framework think the I that follows. are

impact if something financing we've book, to as make have happens. our to you that bucket we external like risk like hurricanes, your sleep when in first have money, events support sure The which rely always we It's said grow very to at et pandemics, sufficient medical our that groups. well results, night can dilutive is is cetera, just on liquidity one-off

And balance plus undrawn, so revolver, cash about kind in $XXX that approximately keep XX% we which of our bucket. is of it million, the

for priority transaction. big will business development the to utilize our two, be cash Number bigger

So that new market will entries, just XX we're in either states. be

aspirations many company. in national Our become to ought a more states be

done groups, should or years, IDs like ACO which doing the good And in in keep done the California examples entities past, entities or us likes of you either past have MSO transactions, to or so of the tax Connecticut expect medical or Washington that. you acquire we've we've in few

the I cash in predominant doing states more use build our to density. will be of transactions as current think well as existing that So

management And then finally, have a of the high the team pretty I ownership. think and Board a lot

So, we we the we're from at if can intrinsic return obviously -- looking look opportunities capital, deviates at stock think value. is materially to what price

this we that manner, So to using, I in do a manner the are and patient framework a pretty we'll shareholders. thoughtful accretive which judicious in is that's but think

then, or before, let's utilization, second think I downstream as And utilization. your ambulatory then on between on inpatient say, and we've bifurcated it question

our It to visit patients utilization continues ambulatory is from can utilization high. business. engagement. fee-for-service our think for we Its good utilization. really come primary be You the and benefits that members our good We results, doctors, think see that's to care really really their and

on So that benefits well value-based as as fee-for-service the both book. us

on hedged to we is really Despite I that, of book utilization inpatient elevated downstream our have. then the we And really think programs think value-based and continue side. I nature the see in balanced the

accruals but our reflects guidance we trends. updated our in that, and to good that utilization seeing you're continue So see

Operator

Mok question the Andrew will from come next Barclays. of Our line with

Andrew Mok

comment and evolution of your you just sales pipeline the on Hoping the development process. can

to changed well pretty last a over to has years adding X respect be doing value-based care. but seem You providers, implemented with the lot

So, years versus, comment sales X differs process on maybe say, today duration just how terms ago? process pitch in the and of

Parth Mehrotra

for question, the Yes. Thanks Andrew.

which the I a I sales had engine, in growth organic think states. it's largely existing very our mean, we've same. consistent is

business every across door which every any single every business are single practice, single model, entire for pitching lines walking is differentiated the for in payer We physician of the specialty. patient, very all

truly has that think I us. So differentiated

remarks, are solution the at holistic in think, environment couple in contract. noted solution the just one-off than a for much practices rather more think Advantage, risk-based us the for all Medicare last I our a years changes physician and risk as prepared a I with particular we of looking

think Privia. I truly that differentiates

are then perspective. top technology teams of and practice on from management I the our revenue and cycle and think we operations in deeply the care embedded workflows workflow that, value-based of stack

think I you practice Privia that really a value joining proposition that and all understanding So see our in is results. can

is to then new running. and in focus many to XXX geographies, strong XXX continue and our existing on implemented providers engine entering We adding it's but the pretty more

Andrew Mok

up full up now the what's follow just further And could significant year on What drives It's supposed got from million I increase? to -- what's line if expectation up as that ticked XX% stock-based It year-to-date. $X.X comp. driving we another IPO. thought moderate the And the Great. there? was I sequentially. the

David Mountcastle

Yes.

each of effectively issued part is year. equity we when the So, the change

annual middle issued them we issued year, QX. last our the in So we grants in This QX. middle of year, the of

comp go-forward perspective, the stock stock bit just we're still to the basis, getting expense. little at, X% there. an And looking $XX of million say, sort difference would we're of then impact basis, in from on on sort million a a of a still to range. I So targeting And we're total $XX X.X% again, residual from annual comp probably timing

Andrew Mok

what's guess like saying is increase else? all I confused still I'm something driving little But that it it. significant Or Got a timing? you're it's

David Mountcastle

It's just -- all it's timing.

So it's grants. we period both the issued that in win

to So back remember the -- difference the same if you explanation, QX.

we we it's again, This issued did in when year, [ year, ran example, stock -- so last So annual our QX. like, ] we for comp issued in just QX.

expense. a in larger comp a This QX. where QX the a there years composition larger QX quarter it's was half quarter didn't than just both have in -- a period because big year, there we full versus a of was So of variance

Operator

next from with Singh Jailendra come Truist Our of will line the question Securities.

Eduardo Ron

is for Ron Jailendra. This on Eduardo

the if and around color margin can some margin curious you growth EBITDA and Just long-term progression your targets. provide

the in on just Or skew Andrew's it pipeline, more piggybacking about your markets? building current to it more question. towards in out we the is new existing maybe And tend development expanding If think does states? breadth

Parth Mehrotra

Thanks Eduardo. question, for the

on So X margin. long-term to our progression, are we EBITDA public EBITDA to years margin XX% That's since the care ago. went look, been XX% targets consistent very

half first about are can XX%. you the results, see from As we

are And X/X there. so the way we of

and markets well new sales million $XX last million. as that of line the are and number million $XX that to entered investments, still sales close few not new markets, in which organic fully the breakeven investments in about team, $XX growth is about the for expenses those we've all the all as However, expense growth marketing to of years EBITDA

the most think I for already company of at that, the And forma you we're you So see is very that. the in markets can proud target profile. if operating pro mature long-term

flywheel it's are You a model. can very see unit business proven The proven. economics is proven. The

consistently achieving progressing our those geographies all ourselves we long-term that see and profile. towards targets think of I So in target

then of think combination on I your question, both. to And going a second it's be

drives in flywheel. our building all progression. assets We That's important focused the makes That's That's the groups what our drives for margin on acutely what very what existing states. medical are density payers. EBITDA

will you geographies. transactions new to meaningfully in and add And states. see that obviously, into we so increase And then can density get do the us many as looking are current

So you'll of both. see combination a

Operator

question next the from come with Elizabeth Our will Evercore of ISI. line Anderson

Elizabeth Anderson

guidance sort how give Can XQ about is XQ it the on year? qualitatively annual out even appreciated talk an -- the obviously can I you you anything this versus of you call on cadence for basis.

Parth Mehrotra

for Thanks the question, Yes. Elizabeth.

years. seasonality a you -- think as I from perspective, materially same line should should differ. should So trend the past you see It not

or in a stronger the is than We bit little QX The results get half. first second do MSSP our QX. half

that and savings pattern perspective on book, then I fee-for-service think utilization perspective follow. would so shared the from same And a

-- At will the this implemented every impact that this in sold point year's year, provider we've results. and half

the accruals MSSP we'll get then a very our got then in our QX, book. in good there's So value-based that's reflected results again, visibility on reflected the are our updated fee-for-service data QX. across But based guidance. all on book, And our we've

but So hopeful expected. that they'll that as be we're plays we'll see out, how

reflected guidance. that's So in our

Operator

comes question UBS. from Rice of Our next the A.J. line with

Albert Rice

specific you lives, And showed year-to-year. commercial on you're nicely the Just a up good sequentially, there. growth question. Obviously,

Or Is growth was they is thoughts variance new similarly in commercial government think the there? the but I something more up sequentially towards on that sequentially, about adding year-to-year, more it lives? flat. skewed markets that any

disruption lot I think just might A some there's piggyback disruption companies. among the lot you deal done are other then to think bigger peer that make of you presenting that any other group. opportunity than strategy an do physician-oriented little maybe that given is people of questions, yours, obviously that make the than off themselves differently? there's in the any a about broad And MA of opportunities pursuing historically? there a Does you've different Is

Parth Mehrotra

Thanks the A.J. question, for

the on lives follow the So implemented first piece, generally commercial provider growth.

markets we arrangements in we all as get add they that's day across our the on included and value-based lives providers, we So X, have. get commercial

government the of timing data attribution. think some it's on the get -- I it's just lagged based we lives, the On on

So it we reflected feel between I think or But that's in some and true of any the kind of then and if downs, true-ups MSSP up good. there's picks MA. overall, I guess, pretty

original at overall see guidance. high can is You the of our attribution already end

So I we've added expected think we to. what

bleed You our perspective can of of attribution some see next we're in, the ahead an more additions overall couple but well over from that quarters. There's plan from some lives perspective. already

then Josh the on a in on I think cash. strong second question, very we're asked your And question position. look,

sheet. very a balance We have pristine

We have debt capacity.

cash We have free a flow EBITDA solid profile. pretty

So you at can all us assets. expect kinds to of look

disciplined. and be and very from are key we're would really going the EBITDA thoughtful to I think deals that be to to think I shareholders flow accretive is be accretive long-term free do perspective that cash a

think X entire our X, being the years, very from S-X past model, nature and business years. consistent I our our of X public see practice. can the serving you the for data But of needs performance the the over

I think that's truly differentiated.

any think practices, durable we'll physician view or this other think evolves, strong hope at a sheet, at industry to I entities our us or of and to performance I balance transact looking dislocations. So advantage looking partner very they opportunistic looking and our is take our as as sell be

Operator

Our next Jeff of question will with come from line Garro the Stephens.

Jeffrey Garro

upside environment know into it's appetite next for could the but growing I we hoping and exposure fall, year. previous little discuss risk I contracts here, a So as to downside was early you current head

are the for value-based discussed wins environment payers all contracts for care that a better of stakeholders. have Some largest

that's the So the on whether to same views your how thing seeing XX months. you're wanted check I shaping XX and over next to

Parth Mehrotra

Thanks question, Jeff. the Yes. for

already it's I So of today take do fair think important bit risk. we downside to and upside a downside recognize,

very that the track. CMS If it's in lives manner, you percent of MSSP our downside maximum proposition very are one in risk payers. the that commercial sophisticated of XX-plus look a our the different that few in risk upside, a And at track companies commercial are manner with enhanced in XX% I we're book, to allows of very think do us. lives the value

is the question downside do risk guardrails environment. in take and your MA. putting MA. mainly towards if We current We're just So geared MA capitated given

just think going to I we're be continue to thoughtful.

go think I trends. payers seeing it, into has utilization Every I'm commented the you're adjust going obviously, to, to single VXX not payer on so details.

had don't this on the has environment X-, We that's X-year MA, contrarian. changes. which But We've process. been a overnight, just little I a think view bit think

We the continue And designs will see You're 'XX. we the XXXX. into from into VXX adjust going then going benefit to are payers. payers downstream impact 'XX think through the

So much as take we are happy risk. to

for that as we key last us, compensated The to to take is got be additional we've risk. said quarter,

that You The integrated, on arm vertically in have ours. not place delivery to takes they're care the recognize does entities like care. provide insurance payers, unless

So doctors assume care cohorts our all think on well have and to good of paid our perspective And that be groups, patients ensure have that compensated we for taking that getting the are across the risk. they from physicians age to medical entire of good doing behalf work. I to fiduciaries

reward payers have not just, dial doing. downside financial gone to from good into unnecessary just long do are as to and some anywhere. We're not to the up we're protect contracts risk well so. I The a the The positioned we'll a we're going normalization the then anywhere. think restructure as for So lives doctors and of perspective hopefully, work see we happy we some good get risk are as are

Operator

Our with from Jack of comes next question the Slevin Jefferies. line

Jack Slevin

you we're then thoughts your couple a cycle BD just for CMS announced to couple just year the XXXX, end of on shared see avenues thought MSSP. shaping up? to really get prepaid year of what how you coming you you on that regional out than as you savings anything ask and the if a some the that's the going to sort adjustment and changes for the the up And this last or opens to you note some has I of of wanted sort of one, forward, Maybe adjustments that previously of negative specifically BD announced? from that more on about what could benefits stuck of elimination else

Parth Mehrotra

Thanks Yes. the question, Jack. for

the of come add lives program day the So are than from we it's and years. a during primary a they look, we perspective, the in our BD provider or care into MSSP any adding platform, to get When the different no past year. X our course of physician attributed providers even a if

date, I X the it's from think less governed on perspective. resets program performance year Jan even So by though a

But we bump get numbers see up grow do in lives normalizes. they QX, quarter-over-quarter. We you can then in that continue and as add to a our reported but it

do groups think the back and kind So to a dislocations the I and sales we any this think quarters questions the perspective, the I of X some from pretty can get us a don't that Jan on different. we're is taking advantage strong in to of it's for speaking BD sales of discussions. as any many ahead of as to of cycle, industry -- those ahead

but years. no So different past -- that's than

I of the then think program. time progression CMS that of period MSSP participants then question, for MSSP And to second through We've look, ENHANCED That track. past to different seen is X natural the we've changes and years. in over many with X, the the been tracks

for such are whether it management it. whether full and to the of do care new some a it's is risk MSSP, ready dollars version prepaying we services, So of

patients. dollars that those think doctors care to flowing take community care are make to positive good They I sure primary changes. of all adequate are

or years did that that saw Plus X that X Care in version we program. Primary and the program, ago, was in really well where a implemented, We of Maryland

the we've in performed So years. such programs over

about the of given progresses our think here. But look most the I of I beneficial and largest and implemented. from how think to the changes, hopefully, some and with are We'll these excited we're So get overall, these once forward changes, of and if out obviously see record, one print to us. performance they program MSSP there books when track fine we

Operator

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

David Larsen

bit utilization, in Can of to bit to I states? health different health on of a a little obviously, you mean, a talk regular increasing looking be costs part any their color major outcomes more sort they that physician how be talk about your of seem the plans? how practice in plans? measure can basis and all you And VXX MLRs under helpful. you are they basis? a with would Are feeding at Just about then and pressure. that, like very there declines plans you're inpatient the you utilization introducing consistent to discussions on information partners with

Parth Mehrotra

question, Thanks for the David.

proven relationship X, national we model whether with do get on for look, the then We've understand MSSP very we can we payers. now them much the once payers, what we the ago. or blue years So and first across on achieve X half, They book better a our have across it's in commercial state across plans differentiated a commercial than our can the density. and Medicaid MA what

the think the nature much us. I conversation is for broader So of

to are contracts about commercial We speaking addition MA and Medicaid. in often value-based

in the I industry. to of broadens the conversation So that relative the other think some players

us to for good data the basis, work state, achieved new and teams today if we oftentimes, from have I that payer new is they're a our existing in changed fundamentally we might with states willing to what take what's we a enter can a us we studies And national in that of state we've think enter. case on

think the kudos health some to path getting into is our team, value-based to economics care hopefully. much shorter, of So the I contracts,

shorter is we more well Our obviously but time confident. get take ability as is to general, market that specific, as frame in risk

payer and their that us dollars us community and we with for as across viable members. keeps to of and the So -- good think board, happy community entity have an enable they're practices relationships a I save work low-cost lot

it's the care, we within consistent each program of types data. second think get board, I then data across across not our And and look, value-based question, your I different mean, on

MA So each level we do we versus very versus on big the That's different it's buckets. risk book, a Medicaid. these the reason take of of commercial why take in

you enter a establish practices, with state And new payers. get lack good full with you of enter risk start a initial in the cadence If it's working the the with the best data is because want unlikely mindset to a attribution establish physician and business. you risk practices,

if the we like a to risk you you're manage. So in are, business risk that's have

And so to trends full we why we thoughtfully. don't manage overall, very X. utilization in But it day with risk jump elevated. Again, continue I mean, see we being

payers the We the think benefit this. are that designs. adds previously question adjusting just answered I a to

evaluating think continue risk I next out the we So with it and plays over quarters keep how to see book. the work few and payers, we'll our

Operator

next will from Genuity. of with come Close question line the Richard Our Canaccord

Richard Close

X I and could Ohio now update almost years those I with was health on maybe and quarter system provide the wondering Carolina, if guess, into expectations North we're them. on Congratulations performing you are that in guidance. an relationships line

markets? are talk variances different you can then Or in And any across fairly similar? about they growth same-store the

Parth Mehrotra

Yes, I appreciate the question, Richard.

on both and it's first progressing we closely X partnership. Novant partners straight look, go a So never working we're They a line, very but with have in long-term and markets in are as really OhioHealth, one, strong planned. them, the

like markets large develop build X, over and the view elsewhere. XX groups Our medical is to those done very X, years we've next

we accelerate with of the can but and and going, some are So plan -- flywheel. how pretty much it's it's according hope we pleased pretty to

the that rates. lot snowball. business performing much top start because start that is knows that there's a of to well us. when And density as second very nobody question, getting and or better, we establish which and very we and our practices, we physicians then as a and we we into empirical going, referrals from an snowballs once leads flywheel funnel our And sales start state, are anchor high to get a evidence, and starts perform And we join your where as good pretty establish existing of practice coming to dovetails a start partnership conversion enter

the see typically an markets or you'll of some some sort follows. So that have sort S S inverted it curve of

Georgia, seeing You're dense to to that where physicians in targets, every Mid-Atlantic despite long-term continue pretty we our despite at pretty of add continue being profile -- set in being quarter. good add margin we

expect the our now to The medical payer we of but are happen groups manner. is are care Health markets ecosystems -- different. that across same all progress dynamics and of to different. in So the Composition different.

to So just have that these. of as in progress all factor we we

Operator

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

Jessica Tassan

So it MLR in last from like about capitated XX% XQ. looks XX% XXXX went in book to the quarter

So we be that book hopefully, in of in talk development the about on capitated and margin bit you can a about XXXX the little the positive the year how should just for thinking MLR the rest book?

address wondering if prior XQ. then year And just in claims the you can

Parth Mehrotra

question, the for Thanks Yes. Jess.

remain, obviously, hope continue protect that's And margin. the restructured that obviously, can. us. our positive good So our a was to as as for indication I MA contracts to ones well to mean we we some perform of EBITDA the

that the can So you see in results.

and, we look some any David But our period for if generate are therefore, we shared money the would will if year to the comment of medical group. impact prior savings at numbers. on you like on payer the capitation, doing save --

we'll and and EBITDA free risk hope flow our cash only that's said, if take So it's we've accretive. as

continues. So we'll see how the performance

You're despite how so utilization But but to seeing continue far, diligently plays perform we elevated see out. working it et to trends, pretty cetera, we're we'll that but pleased. are well, pretty

David Mountcastle

development, And lives just we on showing XXXX. the data prior additional attributed got for some Yes. payer updated period

revenue side an of was approximate there also the So cost although see can that, increase. you

of impact perspective, was prior overall sort year bottom de an from . from minimis So there the a development line. to the

Operator

Ryan with from line come the Blair. Our of Daniels William question next will

Ryan Daniels

offer hospital markets, if payer of of Lot to commercial employer partnership direct decades. given question I'm the you. for workforce, your them And Parth, on kind employers cost facing you've that gone risk in your some indicates contracts value-based mature curious in of a their maybe different platform? seen they've twist for any markets trends or the more macro the to data agnostic highest of patient and are

Parth Mehrotra

Ryan. appreciate I the Yes, question,

the we gone density. with a in book. think very commercial to where I employers it of where is, it's answer of directly, we do to done lot couple a have directly pilots can we've we have have underappreciated what we What markets

density So is an to build here employers. the directly self-insured and adequate to have we can key network then that offer

can you university states that have as self-insured towns, very you we And big about we to that, a think density. go can So we employers. about can establish think directly where

those we also plans narrow some work ASO We on book, but where But we partner the just got don't is come. the said of they've just before initial to have we've very it's commercial employers a network, started with it. of and book level in -- to payers. that product where persist, something can discussions a to of they're do about can tenable preferred then think network with I are think health the inflation I sort for this bring managing to some We

models the on attend. some as of seeing at where some employees have You're site up come way a presence on-site least to can

But, there are employers are multistate. that are that employees are virtual, there

commercial have ability to model can I for do the a self-insured employers. think offer risk unique pretty we which

So stay I think tuned.

really develop over pursue the well few positioned I and to think years. next this will we this. are

Operator

of line next Our from with Hall will the Baird. come Michael question

Michael Hall

X,XXX Is mainly came question. Understanding minimal sequentially? expected, clarification And live revenue Just but and cadence. then year-to-year increase dropping bit that savings. It exit? typical sequentially. looks a you're your expecting understand real like by Is a that Delaware driven can than in -- increase quick my like the MSSP shared I in lighter

that question one And just you few value-based then downside take is mentioned the on of yes, Parth, you're and main risk. upside commercial care providers my

better networks, you thought in question, great management really market unit I clinical manage approach think economics? sort managing might secret to but of anything lives my you have just order do differently lives there is density, the commercial having those Or the care, in So in driving care answered building is better? need that to

Parth Mehrotra

I Yes, the appreciate question.

So one. go I'll on the first David second the first and I'll one, let tackle

David Mountcastle

Yes.

one, normal expect just of over again, perspective, So quarter-to-quarter for variability timing from shared the all this contracts. a first our we of on based kind was that savings the

It's MSSP. contract not specifically, all of it's X So it's not them.

and value-based guidance you diversified can book. have see a we've Again, raised our care

And again, on annual future. remind the in we confidence our basis. people an shows always look that else anything to if at So this

an get annual to consistent. quarterly some going is very fluctuations. we're it basis, on But So

So..

Parth Mehrotra

Yes, the much guidance. to we performing and plan, are in according reflected pretty that's

this there's that's quarterly and overall, you think can don't really some really the a player of give not updated I we're because variance. have still feel quarterly we that guidance. guidance good we in and But big reason a reflected

to on with So have the model one, first. I you start the think look, second business

population, entire it's actually operate network think are we creating the payer very across which very we building are that in the underappreciated are groups, entire geographies the practice. I which specialty are in, for agnostic medical patient dense that we

embedded Optum Care of deeply the that think and scale are us a I at workflow. much it's basis. we that, multistate in On top pretty do that some on

X-, the which So are getting technology do to if basis, you take very in payers that. Otherwise, it's downstream stack if want not perspective. X-, is from to it's from lag the happens a hard you and do in what to some difficult on anything data if just with RCM workflows the you're X-month a commercial, commercial very in influencing risk of

to managing these we age density, patients important. and in allows with I some to I X.XX us across we've care that commercial management many much some think and cohorts, well. fees build handhold really population lives, dollars we the now demonstrated use across think million those start close better. payers can as that's geographies get to also it that many that of

cohorts, then XX-plus shared Advantage pediatric to can You very age those it call or -- commercial can Medicare into lives that's aging middle it, do do valuable Medicare and you the population, as value payers ages, savings. pre-Medicare the just within the and

profile us of noted, care they're and stability it And So pay our for the them fundamentally on the home allow savings our It's good and shared that. as doing getting true the work to management do EBITDA think fee really of And the model lives. in business results we've do and profitability differentiator. to structure I top take It you've our getting fee-for-service is business with us they increases fees for share these differentiates think and like diversifies providers. management seen. that a I book

metric, look up, down, challenging, issued utilization flow. environment progress post-COVID free we we empirical and COVID, growing cash business cycles you the and way had growing we down very at the pre-COVID, the if on the our from consistently single and all thoughtful utilization every MA basis X-year during very seen you've data time S-X, So a to

a So differentiates book and that us. truly plays I part think the in think big results across cycles. commercial of those the stability And that I

Operator

Our from with line Ryan Cowen. Langston next of the comes question TD

Ryan Langston

seeing and you the combine competitors you of dynamics, or are commentary of how affiliations benefit with aggressive just even your probably different the or they're some some you've and market the pursuing? even in providers, broad elevated from markets, be of Given, general the terms payers likelihood MA heard I trend with competing guess, I any the all capitated in going maybe that contracts reductions like may from of physician after aggressive not behavior guess,

Parth Mehrotra

There and there's to I'm read Look, facing raising risk lot of We the really all been forth. and capital managed and They're situations the so flow bankrupt, companies competitors, dilutive but you challenging situations cash into get specific are same book disruption. not on financing not generally, read. going news so well. free as a they've companies going

you've acutely I a to entities, been players what's sophisticated venture around some and think long years, do. practices think I XX, they see the of important new have capital they entities, doctors things backed recognize And time. much physician back around. differentiation XX private by than been street community the more for approached They've been last the this equity if for is

we I But the model I ultimately, a couple lot the think can and practices So up. of rationalization signing think past matters. throw performance business you the And acquiring years. over or are in money of doctors' them seeing

bigger or acquired I seem slowing entities think be of a to and now few them the shedding assets, they had down. them

on So I in continues earlier, we can. going and of of entering business of good in very continue think like as that's to take ours questions where benefits a of and disruption thoughtful just progress call conversations the existing to states, be reflective just any situation flywheel the our naturally we model some answered to advantage the this strong We're new states.

Operator

with question Citi. comes Grosslight of from line Our next Daniel the

Daniel Grosslight

anomalous. perhaps entrance that markets year last a existing to your about But but from into preference how or last markets? a if the market not new was curious I there's year, there's bit how new instruments, if you're about us thinking environment you're strong go your any versus here. the in to on wanted macro just been is this just perhaps over on but quarter anything thinking new slowed change different in Congrats [indiscernible] year next now back year,

Parth Mehrotra

Thanks for the Daniel. question,

a think got breaking You're we the up little of I bit most about questions.

aim obviously every IPO, So has the Since said target are year. new we've I don't our is X to states X changed. lumpy. think to anything fundamentally These

did added when markets. of to that saw X a X new we X was then You period where there and consistently quarters we

BD in I seems we think happen prepared pretty deals they remarks, as our when noted pipeline happen, robust. our

We're in XX states.

to ought a be aspirations national company. Our true

just -- enter slowly, you that's and markets us on add a little X expect nature the of X should X pretty new then basis. or or add we how where So you'll to we but adding and periods thoughtful keep have a we quickly, of the nature

and balance, think to the very groups. do and aggressively. But the as medical more cash earlier noted flow again, pursue we're BD have cash an of I be Given on we EBITDA makes free call, building where we -- some a thoughtful from it on capital opportunities going these large-scale perspective these to our sense

done think we've to I and past over few we're doing the years. keep keep going these what pursuing consistently So opportunities

Operator

will question of final line Ron from with come America. Adam the Bank Our of

Adam Ron

flat practice implemented wondering come like I divide with that collections like with has cost my X% trying And patients. like more billing help should up the number being over up to I provider you're that of seems as it own if for fee-for-service and would just quarters. think recruit the doctors by providers So the like X% a number, plus I'm somewhat been few past the trend about to

shift is how think over so revenue maybe physician about a And groups? like are recruiting dynamic? should number? lower mix we Like time, you . that that And like like

Parth Mehrotra

Adam. for Thanks question, the

mainly that noted, an not have I number yes, new it's that's markets full on metric, the think they but internally. come as interesting you a track So collections by big provider on midyear. because that don't driven driver for a we when if we year in come It's

mix And or secondly, then a physicians NPs. between APPs and it's

specialty lower and per collections versus So provider versus the have pediatrician, mix. there's also NPs OB/GYN primary physicians. obviously, APPs much care, And then

market once basis, trends. and over mature, consistent So pretty time. settled, the more we that varies is But a on consistent see

our annual commercial in have inflators We contracts.

pretty We a book. have diversified

see it. are the don't So overall, that perspective. we should stable. But that that any those fairly influence metric be from factors concern But

Operator

to And that the will closing any management turn conclude our will back question-and-answer call remarks. I session. for

Parth Mehrotra

appreciate the Thank today. results you for quarter. us joining discussing company our interest and to We in next look your forward

Operator

Ladies all will joining. that and gentlemen, you today's conclude Thank call. for

You may disconnect. now

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.