CLOV - Earnings call transcript Q1 2021 | Clover Health Investments, Corp.

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

Operator

Good day and thank you for standing by. Welcome to the Clover Health's First Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' prepared remarks, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now for hand of today, and Strategy. would to conference Investor I Corporate speaker your Derrick Instructions] like the to over Relations [Operator Nueman, Head Please ahead. go

Derrick Nueman

Vivek. may release. caution can materially filed our Factors SEC about site. be GAAP that of including to those in any risks X-K measures I will I the on Toy; way, and today that, subject today, a will well of you With the the Head CFO, better. for measures the you to I Vivek Investor call call out that to the this earnings earnings make SEC actual healthcare quarter everyone. answer With Wagner, containing Good non-GAAP to like And to forward-looking cause our we call thank today's where myself at this Corporate am Note, measures detailed Garipalli; is joining as Form that including over statements Information in referenced, our opportunity results of Joe to questions. first to express materials the I discuss earnings are as expectations call are filings first our and reconciliation being Web about and wanted CEO, Relations your as found to also available may also results morning, Clover's our uncertainties. call financial recorded. President, opportunity during is want and Andrew our I'd Strategy the our as filings Clover. make and our turn that here, from differ introduce now excited how

Vivek Garipalli

to passes is care of founded with improving From joining more insurance double to under you We us technology on execute. building health Clover than Derrick, outcomes. XXXX aboard, partnering goal. entered the number like Today, positions brings January every for is Clover that patient one outside, inside, strong welcome day today. We From company. continue momentum X. Thank a is thank everyone closer health step That that with every life, and to Clover the to you, for look had nearly and us refocus we to on lives employing and insurance we XXX,XXX the individuals. management and typical

quality Quality Our unconventional particular, change we people systemic first. incentives developed puts recently technology broad that Clover Office disruptive and CMS' by aligns let's approach affected preliminary system of us disproportionately the HESS the interviewed scale. of bring care Medicare on are at grant for measurement contacted of because social showing plans members, quality newly tool Minority equitable equitable care. performance us Advantage to well identifying our factors. a delivery Summary Health that Equity evidence do strategies or drive were nationwide National a Assistant, of interests risk a their including We and the plan's the That's a Score, by diverse groups healthcare why the Health prototype developed This designed with strong Committee on They is care providing to In conducting of for to a Clover community. to behalf so short. is high equitable drive study who on for Assurance, on a which

have prioritizes believe and new changed. a risk of CMS Advantage social serving percentage meaningfully stopped of on rightfully minority challenges of members HESS collating but the that then unique ethnicity, end believe those overall. is we substantially the this at minority reminder, race score our to and we in data showed on being in as which identify reason CMS higher no acknowledges figures individuals the who descent, XXXX, XX% at a As has data collecting Medicare themselves identify members that of Thankfully, approximately health have of higher equity.

social account to consistently better it so We punish, Star and plans intractable seriously reform Rating system into risk populations. healthcare and and than the Rating that incorporate akin that advocated like nation recognize to in care are Star to to the reward, its Doing Clover soon. CMS have are rather factors, scores take something committed will high-quality hopeful HESS would for providing our or disparities of that problem underserved CMS

important hold to HESS model. core plans do their score that ensure accountable this would if this Importantly, they problem not solving is

performance is validation so. to care and also of with to approach high doing life, to soon we intend health equity. to strategies efforts that In release both every a in an core on effort summarizing white equitable health shared Our NCQA, around significant score our improve highlight paper this our our we equity mission drive

be launched revenue, we are conversation. April We hopeful We XX,XXX industry. the Health [technical and states want, across DCE, through to decisions or UIs lives the entire over time. And deliver Medicare direct equitable a quarter, to topic it believe through intend more physicians eight XX,XXX the members. patients X, money Partners, entity record Advantage we care management voluntary there the and On us better $XXX the during delivering end, process will are make enables claims alignment and had you we our stop for our every approximately in alignment we with care, added year. what Clover a we alone. they adding best on contracting And this not approach read generated more named throughout as across to million becomes Clover. do what focused document the quality discussion with of the join quarter that information less significant urge And to difficulty] to need At choice. want, for We over

original Clover, a but beyond Moving into Assistant. Medicare the the segment Clover for is only scalability of demonstrates Medicare, Advantage largest strategic milestone also the Medicare, of not

lives to may DCE through asset-heavy virtuous as then deploy of feeds quickly Clover reduce as by us will growing us get will positions will our it new that constrained to we enables While Medicare cost improve, scale under care. believe software believe more be Assistant cost-effectively the cycle, companies just management geographies and limitations strategy our technologies, or to antiquated which we use other because geographic nationwide. Strategically, approaches, physicians And the Advantage. importantly, perhaps, the allows in to smarter more outcomes software effectively and tech-centric

geographies we already into MA have As plans, actively installed physicians follow of platform. we'll DCE CA with engaging the base with an

important costs direct will and Additionally, program is the a Clover of the contracting we entity believe to pioneer outcomes few positioned a all Clover material improving patients DCE from be for for impact our lowering ecosystem. across have perfectly reasons. a

Assistant, providers to lower to align specifically the while of i.e., expected medical enhancing our expenses XXX% technology quality priorities, market-leading platform, And is DCE our Clover to care are care. designed primary of overall First, the are Assistant, rapidly to other our the who We than having others believe scale that software, asset-heavy on Clover which brick-and-mortar use allow flywheel. us centered or more our approaches. value perpetuates proposition, will dependent around

beneficiaries XX,XXX have through access focused our states, claims year. we beneficiary aligned Medicare up believe is we care through We X,XXX XXX,XXX on are and to to Medicare. alignment the approximately to and population we network, on when specialize had and participating which beneficiaries. eight wide throughout individual a expertise base critical already growing providers voluntary manage our seeking over contracted At Second, contracts managing with across original open the launch, with providers in large within had

operation. including our lot contracting is this our alignment of already most program, online But innovative the home-based paper-based opportunities Clover both Our also date There operation. members scaling and a is vast Assistant grow direct we care benefits here, clinical through is receive are our majority entity. also the two begun The Assistant of through direct physicians provider enrollment voluntary powers care realize enrollment models. to and to partners Clover contracting. ability we available unknowns lives as forms vital we'll have Today, activities, this home-based attributed through care to see making And kits. Clover conviction as care brand digital have do, in still seen get to of The us primary grow Assistant substantial but be traction our that what channel. Clover's we underpinning new gives don't a

care management, provider believe ecosystem receive can with majority software, the this we we our clinical lives in deployment In The first visits sense, who their the influence model through like PCP. our scale under of PCP of covers truly the regular via any in those the Assistant. to scale Clover

advanced to our members The caters second approach model medically often our It complex comorbidities. Homecare. home-based clinical care is with sickest called Clover most to

better significant progressive are control to in providers healthier deliver care model their to home-based consider this or what place for raise enabling We and cost standard portion Clover and members be Assistant, that help are program PCP, innovative Powered and Clover outcomes. the for primary of there to opportunity of We believe our to can the the more we model account homebound Assistant is disproportionate Homecare note best as home to an is members, the care care. small that's whether a for helps MedEx. is sickest opportunity overall attend members minority our efficient Homecare to who by of a Clover and that a patients Our Clover and care reduce the they MedEx visit exactly visits, the unlike able further does. which

that skilled ability room to on had has encouraged and patient's stays, of are emergency impact Clover We showing nursing life. Homecare's by data the facility reduce and hospitalizations, quality visits,

we to our Finally, strengthen public as continue company. a to support our growth organization

at members. served announced Principal Healthcare's Human the who lot Administrator the two HR We Retirement Executive Division Capital of as Bill value. and Demetrios Robinson & of Director General CMS. and for General both Counsel add This and of believe President of a the Medicare Center board Electric; and of an quarter, United Broadgate will Kouzoukas Deputy new Medicare as we formerly

Derrick proud pandemic's opportunities what We Strategies. are earlier, Investor met and Corporate whom energized the I and by will of our us near-term am the accomplished Nueman uncertainties. despite also we've Relations ahead hired run who we of

Our believe lower rapidly for software-based this way foreshadows costs, enabling our a lives infrastructure hundreds scalable of enabled standup care markets improve increase choice, quickly and to of us We our direct management. as Health entity and people. adjacent highly in contracting under enter to Clover ability double thousands to

tech And and work doing it. talk the about can members With a work hard our Andrew? where hard expand work get will do. at places the are who our Andrew, care. I'll to that, number have to over to call of We we of turn lot

Andrew Toy

Thanks, Vivek.

we with specific differentiates technology to we of of our launched these Clover health in from life else members. Clover pleased what with ensuring is recent the As positive Assistant recommendations to In are critical Assistant data additional efforts. to partners. managed This also on is rich specifically also first this now care to Assistant. believe we users enrollment for to now. iteration Clover us the historic the back further our only like Assistant have the our data that every financials direct An out as home-based of enables aspect and our the mission gaps, example real-time functionality Continuous supporting companies. getting our include the Clover and would for to specialist anyone Assistant clinical making to improve that focused use is the market. everyone believe business other directly ties of calculating but everything not file alignment to Clover contracting from EHR These say is our am knows, that this personalize between power the from been months, to I support to extracts the Clover built referrals the contracting direct have of program. integration the care differentiates this data personalized into its I real-time sources care to emphasize our our powering recommendations the claim system data features from

and For and network ingest Clover for discharge able events less in are data a wide example, hospitals now actionable surface numerous a to second. Assistant in we event admission of than

another Assistant actionable also step of it towards As by moving a the physician. that. size is reminder, but processing in making of power towards a real-time Clover dataset only not total lies just And the the in the

technology barriers features is these the relationship in is Advantage we between is that has impact Medicare For I access we identified expect contracting significant to want in and expect also program potential business see impact opportunities care efforts synergistic well. that Advantage impact to that for we on our see to contracting what touch have in direct the the cost also believe we to our environment. first of positively Clover drives members believe that management ensuring that our improved as our all and the reduce to interesting targeting direct enrollment to face Medicare the their is in Clover. Homecare. combined for Assistant think approach healthcare approach managing what sophisticated industry of of software example, In program have our by care We based enrollment to the makes Clover all we and in care member the is outside formal I This algorithm a home aspects leading with PCP-led combines using risk Clover, differentiating. identification

and real Clover example continuum broadly with earlier, PCPs in partnership to a Assistant the inpatient soon care specifically the And use driving one beta touch by services our enable technology the health to critical third health in get in Assistant to we to with feature most identify usage that we need, pilot want is this Powered most using the across believe members of partner In we our starting data intend will member First, second screens the basic care broadening Walgreens communities of hospitals care the access discharge journey. spoke to the designed Assistant, admit of of continue that second launch into operating In Clover locations aimed the Assistant, Assistant. services. those we with Jersey. in an I a increasing of in the to view network Clover about supportive example a support existing for third, our at time us the wide a reach of more members New Clover on I setting. in we enroll to

into data review, in Walgreens members have Clover blood testing, Corners BMI with visiting select which Corners have from Assistant Clover Walgreens stores. We flu Health to medication custom for destinations integrate within Health Walgreens live closed. are been care the gaps health built over shots, are Walgreens working of Corners been measurements, a Currently, pressure XX% opened comprehensive now our Corner. members, mile of XX Clover within X,XXX Jersey more. and Since membership have New or one and been the we Health powered to Clover program, almost XX,XXX Health began approximately Walgreens over

As care you and Medicare into and We're new Advantage direct as and to data sites our scale like practices iteration, focused on into can business constant continues and core integrating see, well the new of system Clover of within grow new lines sources. contracting. deployments business as

human at and I it long-term from we my everyone to engineers to of partners, is to U.S. success, all all that and growth our I'm Before what to skepticism post Clover the our on out clear note, team. employees, I of outside a us to engineers of quality beings. I are up and based personal regulators our from member want Joe, everyone, fight of physician Clover's crucial Clover on how all want hand reporter of on to every for recently strong it off To I our our investors, dismissive saw on I calling a a express regarding or put as his a the as Clover our our members, potential. and to make the proud talent will commitment our Bloomberg, LinkedIn comment quality of solely

mission is mean life we it. improve you. to and Our Thank every

Now, to Joe. over

Joe Wagner

in more $XXX Thanks, a have Andrew. to We're first thrilled of revenue. delivered than quarter million

total the increase Our increased XX% quarter, to revenue year-ago due membership. in compared primarily an to

quarter As we're represents over of increase Advantage members, first serving quarter-end, XX,XXX now approximately XX% an XXXX. of Medicare approximately of the which

well as contracting, key as of we a proliferation expand continue growth Jersey market driving We Assistant. as expansion as view the through expect inside New outside Clover to both and and to direct to

driver GAAP resulting significant we MCR, XXX.X%. Similar the $XXX.X estimated last for to the data times for which inherently members of costs million, XX% have medical disruption been and short-term of quarter Medicare, members. quarter of to significant MCR. Moving costs in resided New the a caring incurred disproportionately total in year, MCR minorities Medicare fourth older minority our by in percentage are were on average MCR. factors shows combination the elevated solely some our Jersey, CMS primary put diagnosed that our X.X national in of that our of that these the on and New the COVID-XX with around specificity To we population, rate beneficiaries resulted is having to these an focus is that of we and means pandemic remember that hospitalization pandemic. impact the the roughly our costs, costs were a have COVID has members Jersey The affected medical

Fortunately, we're month costs far to XXXX seeing lower COVID thus as members more from more month and in our vaccinated. becoming of

and is an the which XX.X% of normalized any few we pandemic to that Our was the normalized excludes for This to is MCR performance XX.X%. estimate full-year quarter, changes believe our our relative We COVID the related MCR medical increase reported revenue impact a factors. the for of non-GAAP and compared here prior-period XXXX. costs net to

are certain of First, patterns. seeing care utilization non-COVID in deferred we some return previously

continued have limited we as December, or headwinds the was of late schedule for to increase service. implemented of some fee Second, XXXX risk that the impacts physician relating COVID days in capture lower as related well

our several enhancements be help points vaccination would get our And rates, promote effort efficiency. while are needed. reduction our internal increase they an the pandemic, Third, areas we cost to substantive making that to to just a we to our believe and ongoing progress cost investors. care like processes relevant made address the identified we COVID-XX We processes we to from highlight starting to reprioritize are to our where are few the longer key realized. members MCR's In now rapid to changes and taking initiatives, in

Clover this And the who care quarter that be the see those improved normalized as differential to point that We for primary normalized Assistant an than the over power lower continues for uses MCR differential XXX Assistant to financial outcomes. MCR who this believe XXXX First, our full-year normalized X,XXX physician continues first COVID. basis was to members basis approximate for don't. illustrates a compared points for Clover returning

our point lower MCR our quarter supports diversification. our New second our The remained that MCR in New of than is thesis outside markets geographic strategy Jersey for market, which and first for Jersey

today obvious of our X designs Lastly, our plan higher when and that remember, of rating. industry current rates, Clover than costs the plans plan competitors and many richer has MCR's, out average growth than pocket considering Star have benefits lower

as we our now, lined differences when as to our that basis these For MCR's to of much points add up next estimate those X,XXX competitors.

continued star maintain time, conviction We technology. scale future expansion, out higher these and tailwind of early in play coverage just items for our of factors iteration full margin Clover these over and and Assistant provide our diversification, geographic continued are the As in since ratings, we story. a innings

First in adjusted operating $XX.X our which line first and was non-GAAP of were $XX.X expectations million first by as stock-based million million consulting status compensation XXXX. a expenses, $XX exclude increased as to primarily This in our compared from of in to the quarter non-cash direct Quarter professional, due quarter to to well contracting legal higher company. Clover initiative, public the support XXXX, made investments as support infrastructure and with expenses

outstanding $XX.X we of results for by gain accounting Placement Accounting and treatment, of loss period SEC des-pec million for for of million. updated for current impacted our guidance normalized to compared warrant million And loss million quarter was XXXX. loss of adjusted many $XX.X loss the non-GAAP of the of first quarter. the $XXX.X investments of had year's Applying our impact Private of shares the EBITDA the change quarter million $XX.X compared the EBITDA quarter to related COVID, for Clover adjusted million the the of investments. the were equivalents EBITDA value for the XXXX. XXX.X Our a net this GAAP in first non-GAAP quarter After We first first the companies, the in $XX.X quarter was at Warrants. recognize for adjusted normalizing Like year, end of last million, Our XX approximately liability. and the higher as $XX.X first net loss Public MCR to cash our cash, March and fair reported quarter driven by operational MCR million totaled $XX.X

year, to capital. begin social Despite Our approximately we continue support merger revenue COVID, opportunity. new the growth in $XXX growth million volatility, of of working to due expenses delivered with to our especially contracting first and net this delivering deal-related and near-term share and direct continue market solid the expenses to closed we as expand quarter around capital, which expect impacts,

membership on direct are to by all fewer to fellow expected beneficiaries, XX,XXX is driven We range noted, claims that than X the contracting, with started few year of of XXXX. aligned more claimed began a April to the reaffirming with guidance in we participants, was On our be initially December our DCE the Medicare Similar XX,XXX XX program alike. expected. XX,XXX we as Advantage Vivek beneficiaries factors. DCE than which many were of aligned virtually This by program

did participating successfully select beneficiaries exit shared some First, Medicare relationships. providers their program savings belonging to not preexisting

Second, have participating some in away to our through up advantage. beneficiaries believe We Medicare eligibility, or to contracts providers. access enrolled still passed DCE that lost beneficiaries Medicare we Medicare with XXX,XXX

But in continues difficult see predict. beneficiaries We the the is voluntary for specific throughout the expect number our as year. to increases to increases such of aligned timing alignment

$XX lives, a We million these million majority of us year, expect expected lives calendar Contracting. up Direct we become Voluntary for of forecast million alignment $XXX for combined voluntary quarter, look total the we guidance are to with generated alignment be claims submission Based in total approach will to the of range the which new end now occur from approximately $XXX are updating in conservative given XXXX. taking inclusive the $XX million a Contracting to to XX,XXX to fourth and on many on revenue alignment preliminary updates process the and We XXXX of of estimate to to Direct we ramp our will for revenue quarterly, is forward programmatic time. beneficiaries. incremental bringing the is between effective on and aligned CMS that XXX,XXX leading

expect gap months in second a line our quarter of reiterating revenue Contracting for estimates which are accounting with revenue we We are our with the of first of our ago, finalization Consistent for Medicare was quarter. complete dependent couple guidance Direct the on discussion the end by the will treatment, advantage be expectations. since

member Direct initial Medicare million $XXX is Our originally $XXX than to reflecting predicted in expected now are the to Contracting contracting the The level of benchmark represents per Direct XXXX population entity. estimated expenditures per for lives management the benchmark revised higher million under be Medicare forecast benchmark the higher of expenses being benchmark. on range aligned direct the medical and member Contracting by this for beneficiary managed

of is merger doubled nuances We of that full-year support plus remain more and make advantage non-GAAP to will million a growth. XXXX. network than program, estimated the be contracting of that to XXXX's results Medicare advantage this benchmark the the core in company's captures $XXX billion, stock-based adjusted factors somewhat we and the compensation to in continue for throughout in $X.X operating continue to the allows the range XX% therefore within range believe to direct seasonality, billion for future million level. technology use as future Medicare opportunity measure program, under XX% well, is but certain this appropriate processes of will reflecting to the CMS Medicare marketing, proceeds revenue more estimated spend be the that anticipate non-GAAP expected and its Given investments Total now of which the recognition expected also the estimate $XXX excludes for range the Normalized January revenue which to of $X.X quarter portion MCR of impact range expansion, CMS of management, financial for benchmark improvement occur from our are to first We the we under impact believe the will expenditures into year. the quarters size the expenses, of from full-year are includes driving outcomes. on in

growth components remain of discussed in As for adjusted appropriate guidance expected million is of value growth. not continue earlier. to that always, be to potential that future $XXX several accounting the variability of that make warrant focused we including Note the loss net are of due fuel range $XXX Normalized we million. of investments providing loss to liability to income net EBITDA to we the the significant and mark-to-market on fair

the are by to traction in the would only could innings. increase we reminder, reduced a We due in our the stock liability quarters appreciation, As quarter, which future business, net encouraging first early income. million negatively materially impact in was $XX.X were across but in turn but seeing

to drive have levers growth build initiatives the underway to for continue Clover cost profile. to long-term We and several and our improve

We are for over now shareholder long-term. to over committed delivering I'll the value remarks. to hand closing Vivek it

Vivek Garipalli

you, Clover we're Joe of the life, Health face improve in and every the Thank against built We environment Joe. to outline, challenging mission executing that every day.

our us care key to we of costs, scalability based of two reach. the as our improve entity tens have choice home will clinical increased so and and continue the Direct future and breadth potential for of differentiators, the care Clover our Clover Contracting of us help and Assistant expansion. Our our software already helped launch lower thousands illustrates people. And of believe for model it do we more The foreshadows many depth

with take Before want questions, things. you to I leave we three

Direct and very Contracting the about on of launch ahead. opportunity excited extremely we're the bullish Firstly,

years Secondly, creating differentiator on a a progress Clover we society, technology healthier market-leading delivering to and Clover. in for Assistant our to is are quarters forward demonstrating care And high focused which We finally, the to come. look quality everyone. means our equitable

on first of we today, from are Clover, the including on also for Reddit. we strong community Clover questions, investors Before start in some questions a

important on that going investor made a orientation me retail is today, frequently. in role detail. questions. an a I investor of But after investor a our trading that, then a experience money On vital play great aside, retail With personal with to first at take answering and wanted a we basis, the become technology investor, probably in mission, community. to the please off ago, industries we in experience. In much important and as money, long-term core. quick want believe big As believer a a Operator, let's lost focused I'm I question. understand retail importantly, engaging base that business spirit investor it to more companies buy-and-hold we a entire started are too that, very over in with really much years made the the XX

Operator

Thank you. [Operator Instructions] Bank Our Fischbeck from first America. question comes with of Kevin

open. is line Your

Kevin Fischbeck

Hi, questions a few great, thanks. I here. guess

members you guys half-a-million had brand, that for guys of think would there a a should members about aggressive members goal? So, or direct about that be direct that did do to the we couple or be pretty contracting? still that first reason getting as you in necessarily some thinking transaction number that How you to, about members when differently would think of there contracting signed outlook is years. is a access that today right Is up you the have

Vivek Garipalli

Kevin, the Joe, in? could to that, take I you thanks want jump do question. for

Joe Wagner

Kevin, things and this but Yes, good guidance point, think morning I Kevin, at think say I think, couple the for to we're I Hey, not the going can question. thanks give for Sure. you opportunity. of years a that future about if

along. this what that that's access kind [of First, [Ph] have we're kind so of members of said we've and XXX,XXX signed that has all lives] we not been to year, with -- XXX,XXX excited still changed, consistent

alignment those we'll claims of numbers some we future as for years. more think and know and more certainly voluntary I alignment refine about

guess and a about we're tailwinds we excited as which relative now, are one ahead, year so others partners to certainly we've the looking that other us do encouraging program that. revisiting looking we've looking program ACO that There mean the is partner had we're to were with I point, and start about aren't things, a to great. thing got obviously I at with conversations in lot in of And encouraging we're things one; super think of great I to think so earlier now potentially -- the others again. originally program, secondly, in a are is that couple some this

So, we're really I think where about we excited are.

voluntary too to traction to this I about great exactly I we years future it's of and early excited where we're year. think but just the say end up, think in rest of so going we're have alignment, for kind far

Kevin Fischbeck

Are for number we still last kind was this to [Technical last to true to I versus of should think impacted last think from is then within XXX two year XXX to going I MLR XXX these this versus difficulty] just we improvement years this Bridge, not mean, where to how which the by a closer guess year you XXX about that point mentioned saving bridging adjustments XXXX, difficulty] guidance? about maybe quarter or over last a basis the it Okay. I year mean points? I And -- points. maybe the progress normalized of core the MLR guess quarter when basis COVID. points down you [technical that understand basis trying

Joe Wagner

Yes, a great Kevin, that's question.

cetera. a from benefits, et to I think mix, when business obviously normalized perspective, certainly very different membership was we different different, back XXXX, go our

pretty hit And back we obviously headwinds that. question this I deferred think return at of the We've so about seen as of lot -- got first progress, kind of some a kind in lot so care. And seeing tailwinds XX-XX ran for and happened with no us quarter, we and there's then, hard mix certainly COVID. look a of we

some risk We again as other for and not some score also fee schedule headwinds, coding, issue plan of have submission us, in although much of depressed MA increase. does, terms the every an as

that terms kind absolutely as normalized are true, your and of think look statement I over seeing is longer we term So, absolutely of momentum we in MCR.

giving Fee right? of Schedule, kind I and not the throughout I certainly think, look the conservative, say continue low going about the appropriately is we is, for headwinds see it think relates we're of Physician the think of two from And the what we then as it, cetera. of this term, Obviously, given years, that our et as it is kind the this to we're XXs guidance year at at COVID, high progress to it view just first relates certainly mid-XXs. quarter. way I for If only into I'd the course I we'll kind of as year. the longer progress in over But power but you remainder seeing And think some to seeing we're earnings that's think what look forward? year, our rescoring as also

and when metric. focus we line metric think well. compared very to important the do rates, as of about about MCR we'll that growth that earnings we mentioned how little two kind the to continue a really power for the think Assistant? as bit is, I we others, we points differential scores, secondly, As just us, of business, really one about and MCR versus for ago, non-Clover the And we That's most on Assistant then think up importantly, of you as long-term think Star the think more about Clover

with we're the we're So, progress that I long-term as look certainly for we business. think making happy the

Kevin Fischbeck

guys coding [Indiscernible] the there this what maybe a MLR? points think you way question, basis year is was size in headwinds to

Joe Wagner

XXX it's for basis I had around bit think us, probably we anticipated. higher to for XXX than us points, I little Yes, a think originally it's Kevin, probably a range

I at to where we roughly XXX It's than kind -- I'd that. the that probably think say we're XXX just out bit to I came quarter, when said where is a of XXX. we last higher impact. XXX looked little Again, coding

Kevin Fischbeck

Thanks. great. Okay,

Andrew Toy

great. Andrew. is Okay, This

our So, now. first we'll Reddit from take question

is question, to but offer in first using Assistant Clover other the data working make being is -- any and leading us out insurance few the datasets? license on question different do Clover we're the Assistant a for Health and compound Will really is one, network it a a I'll companies on what so a doing few to data there help you around any that you Assistant Are Number piece, sure agency? care, Assistant unique The does out couple what providing actionability technology came while take healthcare? a data or analytic wide are that, insurance we question, Clover lets one focused Clover model. technology-powered clinical focus because see physicians right, for remains AI there's care? Clover expand to to first physicians as How individualized thanks this So, companies scientists on us there, answers. with

AI is we where data then models about physicians, out into loop our further, closed So, on the components That them we we those clinical insurance be by in further, companies or how take and actioned question to big healthcare, train tech and leading to that else, clinical for and or iterate we And do we we whether lets remain stay on what other conversation the feel figure being actions happened. advance companies can sort real we reacted than Clover faster. feel how iterate that's it'd faster companies, anybody us those have all Assistant, models ahead. of

really On one. licensing that's a out, the point about interesting

to improve is life. mission every Our

I in our work consider that where is few find here It's and even we the might future. engine and ML platform and we international that training verified data the years with ago, we interesting Clover actually does in data datasets. So, very something Engine some non-U.S. a non-English something well do it's did testing Assistant markets, in

we're that works. pleased well by how So,

think us the I to future, for good if ever we expand. set pretty advancement that in up want technically some

On PCP the Assistant Clover question another care to in the in time individualization back the and every terms want of comes visit. sessions a so single individual of that's personalized senior are have care, counter, and we

suggestions And in that the deeply we we very and content of already data a product. through part Clover personalized Assistant. we're powerful that overall So, the that's think show

from new to those drive just diagnosis is range We'll those platform, all those in about of actions. like Clover we're Clover clinical closure, into that these reconfirmation simple that based things so always can out. a program personalized to developing that Homecare as looking the things counter care enrollment Assistant So roll upon to any rules, we gap a are new care models, absolutely suggesting talk

as I clinicians. we're clinical business, payer, R&D As to that the focused Medicare of future, is technology is into we're Clover Assistant about way our where a Clover, as our uniquely number focused. That that's on focused this, the helping think the overall think going is is one side the on

seniors. data that but have an model to of systemic prediction, is add outcomes All not build we think about core always and advantage the improving them, benefits action, in actions and we just improving speeding our of our it's we're the component and into our those then product actionability technical a prediction, overall so training, models back for which terms

Operator, question. that go So for thank whoever asked we question, next analyst And ahead you and the take it. can

Operator

you. Thank

from Suisse. comes question Credit with Singh Our next Jailendra

line Your is open.

Jailendra Singh

thanks was some a thanks. I visibility these on have bit in beneficiaries? the little your Thanks could be for taking updated more thought This revenue there. data wondering seen coming confidence points color out expectations contracting. that there, Yes, how I flush you voluntary your is outlook from XQ, all the you almost on questions. your in could cut. on any and if mostly in didn't make But that voluntary you alignments, direct much I indicators, assumed gives

Vivek Garipalli

I'll Joe. that to Jailendra. pass Thanks,

Joe Wagner

Appreciate Sure. Thanks, in Jailendra, again, on so it. calling in thanks for for morning. the this voluntary I Thanks early alignment, it's the question. mean process. Yes,

to positive, order voluntary month. documentation so for to I conservative good of for good from there, on. for we're keep to year we from bit kind we're think outreach one been to things came this be we I of timing seeing for of that out and using, is you wanted that some a going by effective in with learn aligned voluntary a the has results alignment more kind we more similarly, fourth upon the really just and then alignment why we've they the voluntary of a get for in voluntary methods sure this the the things few we've our about as given to this early And say But end July some of, traction quarter, I alignment XX, we a we did us, need got and traction initial unknown, little range, member aligned again, seeing timing to the think mind one can have be based program. been different reset make need X, expectations then just of perspective kind CMS for August time by just so that's voluntary of the there, is just

benchmark, just full-year, started. of that which on now and the XX,XXX based XX, we're in of roughly that's to XXX,XXX there so XX, And revenue is range obviously, a giving where right we terms base the

we technical recorded. voluntary are ton for of standpoint, recognition a small revenue guidance us benchmark piece for there's And mind revenue both that alignment, or we have I'd revenue relatively a alignment, roughly say in we keep only not XX% And so for voluntary assumed just in our and to I assuming as the benchmark revenue with benchmark. from have again, a now, right think,

come a comparison that accounting us kind we're comparing standpoint. probably that $XXX that of you're the from treatment, to if So giving with is range have more million that out benchmark to appropriate $XXX others different million

Jailendra Singh

next year, if there makes just then, expectations just lives the isn't on Kevin's you're coming some CMMIs to wondering that But close for know earlier that I about for for question you following program guidance new direct And contracting around for contracting thoughts give Okay, sense. from can share to XXXX. up willing any not program applicants.

as wondering guys that the Just you how you program. have approved mean, affects opportunity I the been already for guys, for

Andrew Toy

Yes, that, Jailendra. I'll take

the day, the that based the reviewing really or to of exactly is are of on of aware program, hard provider-centric. actually of I direct amount contracting enabled Irrespective XXXs, CMMI now it's appropriately are succeed same program on have out least it's decision don't make but is current whereas any direct whether driven our only can applicants it. actually applicants but opening end time, view, in they're make XX to our regulations think At going up set practices significant whether view to, contracting it software to enables rules Clover really tell a applicants excess likely that's in the think manage. not that's of the affecting make going I an the participant and program don't and we the too to land and kind in in we're sure up to to that value joining much the be So thinking. it's practice At difficult will number more the most program we where of think come applicants at

Jailendra Singh

Okay.

partnership who trying that channels to getting resistant global who us leads what is was remind there? that's platform, how thing you using much better by platform like can evolving, better one of your and to has seen one platform? Just versus on PCP outcomes I'm like a off between resistant you trying as your them economics other PCP going get using improvement, your to work essentially are like And members one understand how understand last global some through to how

Andrew Toy

Yes, absolutely.

to the can not actual on or more deal the part any question, details journey here. partnership of we're on the I care the elaborate of the that but So sharing

Health are of So the model becoming PCP, idea alternative with where support the supplemental providing services PCP. is sort they a to Walgreens that this to corners an are the they as so is the

are So, the Corner the you are store that that that and for to et things the the the The it PCP for seniors models that PCP, our but to Health fit the PCP in safe get is the the the see supplemental is PCP fulfilled patient that put of Health care. in example, gaps the there, be they Corner easier Corner. the actually at looking actually other for with to Health not of for not instead make out replacing kits what's cetera happening care or order patient might

like data sort could fit like the So, that additional shots, like our there. of flu said, readings kits I be deployed BMI

this access is one care easier of by sharing part data, all journey PCP coordination it's Clover position with for and the quarterback them the backing up Corner and in as Health supplementing to it that it care. of Assistant think the the So still then is making extra

Jailendra Singh

you. Thank Okay.

Andrew Toy

for right. Thank All that. you

So, appreciate back questions, to it. those I

I you from SEC? also ahead take with want comes question For one? to and would this our to strategy your the is Vivek, the like particularly Reddit; go stock next around do latest price. know what the that

Vivek Garipalli

government generally to of opportunity required disruptive but pending your disclosures Andrew. law. It comment to I always increase, make model the our note will and by company course Thanks, introduce regulators. any agencies that welcome policy on Yes. to it's not always and we

long-term as around Just price. stock in about stock think orientation we very price we a terms take

about for personal organization, being incumbent approach our orientation think long-term different on the a heavily the Andrew Clover than myself one we mission of other but we obviously versus definitely think and insurers it's we basis, have in from So, a even know, invested you advantages a a clinical competition.

meaningfully And couple system value designs become the will more of in to the software the wide understood that physicians is become more of long our and our enabling think we the competition. to the how overtime a happen years driving network to we're over enabling it itself is more so, well-understood as versus next If consumers be model think with has traditional narrow at attractive of well. way value price and more execute our as understood are scale And over taking going over goals. really network what versus become And we'll Clover we more kind of think able more also to as successful about a that. long-term stock really long-term care will towards well plan we that's

Andrew Toy

All can we question. next right. take Operator, the analyst

Operator

Gill comes Our JPMorgan. next from with question Lisa

Your line is open.

Lisa Gill

any gap that then that to that Walgreens Clover that just you you're Two, that's understand back but to just a encourage potentially? doing the couple morning three, kind services. the actually anything have I access impact, to Good you information in their to close not have want around you can care of Assist and back the it at economic providing into I thank are member PCP. things. for pharmacist want to the the of to prescription talking feed my they so way, And they taking I and go And do so question. your One, about comments really understand Walgreens. is filled

Andrew Toy

question. Speakers] [Multiple Great -- Yes.

So, you couple a had there.

see first a as built Walgreens dedicated Health on and of the are Walgreens Walgreens, you all Web separate a site actually in out So this of part the Corners it's can well.

the they're their your pharmacist. a it's your a get staff able question like act go that's it's so store. to be to as part you pills, the And But where sometimes If with actual different staff, the certainly pharmacy counter. not to capability of

Clover is they with questions. has a yes. if something obviously, pharmacy but So The can is on help Assistant, member that next thing

So a data. part of that of this Clover is have the we view is all Assistant certain

PCP have an same access other that platform the and conversation. PCP using of they're the they So, things but that to to state view the has are open view, the available as be the care The gaps to that PCP and not any need per filled.

So care, up, more of you're part when the a right. it's member that seamless shows

in So, size care. particular they that cetera help can I say, can yes, et of this, with you

not data from things is So is Obviously, not In the we are last right of part now. to the the be there's part a care at given out, whether in providing we that with future Health this of any in Health as in we but Corners. question, We individual platform Clover. used pharmacy. could look Clover that this there, unified -- at believe benefits, Walgreens, those their system pharmacy given these choice use that wants we separated being to Walgreens at from having Corner a or

into the whether pharmacy but additional can to members want choose -- a care as have they our go to whatever So, and get supplemental Health like, get at continue also the they they well. care to Corner, that ability

question. your helps that with So hopefully

Lisa Gill

to virtual understand I are home just want to Clover component secondly, actually a provider coming Is then And mean, that that? there in home? the helps. definitely care. basis? there that at about the into the care that Yes, How to just go-forward think I when broadly more about speaking, you're we home? going other think do add? services Are I Is on a

Vivek Garipalli

It's great question. Lisa. a Vivek. Thanks, That's

simplify So program to home four but via years about to in-house [indiscernible] the care in-house we think an ago, home-based a model. Clover way the built our is,

roll those existing at felt service reason primary we would to in end with marketplace, because the much we practices in lives, with individuals did as being that, helping the able a up end of most was collaborate we that eligible, their internally them one also the up So care engagement higher who well. wanted but also homebound risk terms could to are of own and rates we

own included physicians So, XX%, care it eligible virtual with year, home-based risk physically are based physically And the a part as about collaboration physicians, care conjunction an last that delivering model. that, primary care. internal get the year little the routinely in -- at say process. is they're will primary data that we And when example, to care but to provider existing physicians we actually employed And cares primary back that we sure bit over we included we physicians, in the generate. make Clover's primary pool savings in talked over it's dispute to home then there of share we obviously its because care in based cares over we to vendor home. primary in relationship it a not up enrolled pools. eligible We're we'll ported contracting. as Clover. have And sometimes with by can care primary who's most where of ended existing direct we last an And members arm's this employed length in model Obviously, to actual also with be kind

primary So direct we with bringing service we're contracting, to partners. think practice care actually our this

working models there lot is actually way, with What actually versus the we from much actually creates program. gets where these direct existing marketplace, are models home Clovers the of we're brick-and-mortar that a and of friction primary physicians from collaborative in sometimes we care primary these enrollment care that contracting, ends a up care So, lost benefiting lot are Clovers because care practices. think a savings home of patients program are practitioners about taking eligibles in with proliferated. That particularly rates is generate. popular, lower existing can are the

powered the Clover kind we of mentioned off creates in all the local marketplace, reaction the it's the in parts. early So and Assistant as of opposite

Lisa Gill

Okay, great. you. That's very helpful. Thank

Andrew Toy

Lisa. happens Clover on question up. Thank and Reddit more Assistant, We'll you much, which we'll do to be one wrap then very

basic of we the telemedicine. So, had asking on will questions ever replace combination elements. for vision also I've assistant position the about our a bought

at statement, looking something a themselves our am where about physician, like physician, Clover the with them the like here. we helping always personalized best is the the any something is meaning at So, physician fingertips, Assistance at personalized But making commitments Clover this go for could suggestions [where] can arming information, I information telemedicine, clinical future go which judgment. their not version [Ph] looking not be technology looking replacing with right? about Assistant of their using It's with

hat same with we of the me I be more to that ability to sort in with be able striking that, like futurist face-to-face telemedicine provide and think a with is do to but technology is physician might room, simply combine be VR than will I go putting more years over something collocated not physician part the or you Assistant it's As in visit where this to see call. on detailed provide to video next AR and in a few Clover virtual more have the distance the where do a say really just can we of able an we're that patient impactful the visits encounter. examination might

who a an safe From not perspective, pandemic, way seniors did have help very Now the will during this a technology something guidelines pandemics. in from did under equipment I we underserved capabilities. Video equipments Wheels perspective, us will called things for against think future CMS video move the existing help delivered -- already that into us guard while. rural that under to on where telemedicine sterilized we a be equipments healthcare, But regulation like

of they we possible So, way within an going lot it a sense have upon that up encounters. these do sort it's makes a safe kinds can that know in more will so environment to their build that step And of we home forward. much

that So, in And because over we I best doing once think distances. the not it's assistant technology of again, will the capability the more see and more but with there that the to version make themselves. assistant called replace remote to them physician,

questions questions Reddit the will the so to close now thanks you for for all up. off Vivek the Thank on hand I much So, to as well. from analysts.

Vivek Garipalli

time everyone today. I Andrew. Thanks, to for want just thank their

and future our incredibly excited We contracting. about of beginning are the direct

it. So, really appreciate

Operator

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

now may disconnect. You

Clover Health Investments (CLOV) 17 May 212021 Q1 Earnings call transcript