CLOV - Earnings call transcript Q1 2022 | Clover Health Investments, Corp.

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Operator

Ladies and gentlemen, good day and welcome to the Clover Health First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the prepared remarks. [Operator Instructions] As a reminder today's call is being recorded. I would now like to turn the call over to Derrick Nueman, Head or Investor Relations and Corporate Strategy for Clover Health. ahead. go Please

Derrick Nueman

everyone. Good afternoon,

on Garipalli; the CFO, our me today Herbers. call President, Andrew Vivek our interim CEO, Toy; Joining is and Mark our

We your and being quarter will call recorded. This is answer discuss first questions. results

are may and we to today's also you from our to SEC remind filings. about you our like subject about the materially of are can to our Factors first like measures other non-GAAP website detailed in call Information our section we including found that available including measures materials, referenced on caution GAAP results financial get those on SEC also that uncertainties, XX-K our started, filings, make earnings our of earnings most differ be Report at and Before a during including in would performance. release, future in expectations to the that website. may forward-looking I available to statements quarter's Annual actual reconciliation cloverhealth.com. cause Risk risks that I'd expectations our periodic including recent measures are Form materials on Factors

want to Medicare and Insurance updated been segments, change role current the and Contracting our There not the know names to business. Advantage that our respectively. impacted to of results has these of were and changes. no reflect segments our to We by previously segments composition segments, each we Direct Non-Insurance the believe I better Lastly, reported this financial and existing contribution

to that, over into will will Reach our segment. Direct let starting With Vivek. be call Contracting next fall ACO turn as now the me and Finally, Non-Insurance known year,

Vivek Garipalli

joining everyone us thanks for and Derrick, Thanks, today.

well and we're free Clover generate industry flow. and excited above significant ultimately start for growth positive averages, believe we to about XXXX really can improving are and deliver the deliver groundwork margins, XXXX beyond. We cash laying We

depth to significantly Both growth this more differential Andrew for to Let million and improved before the expense our MCR respectively. QX MCR revenue over X,XXX the grew fourth to Clover showing Insurance of basis it significantly from handing Insurance to in MCR XX.X%, for and those slowed. XX.X% members discussion. be me now our Leading versus Clover cover a $XXX quarter over And operating a Non-Insurance some off, whose while an PCPs who points Assistant the versus returning differentiator, Assistant don't. use continues quarter highlights

to with So over Andrew. me the that, let turn call

Andrew Toy

year result I'm COVID-XX. early Thanks we surrounding optimistic Vivek. is I'm our ourselves, also don't and points growth XXXX. want we particularly to ahead around more get It need our any of with change in as pleased expectations. and the cautiously in maintaining are unknown QX. some data our conservatism rest the we of before very the we rapid given Therefore, of

are right believe rounding Our We top in key investing to to continuing model, and on our growth with sustainable care build deliver areas focus the level Assistant efforts driven of value-based an efficient data contribution team from these rates. improvements positive talent. intelligent, now Non-Insurance leadership short, out and pull more while we benefit to In operating will efficient our industry are can structure. levers margin average there MCR, maintaining improvements believe across and further by above business, driving multiple Insurance growth drive Clover XXXX a we

by top planning strong inclusive networks. strategy earlier, our to first PPO why driven revenue delivered and line powered we mentioned As growth approach, technology begin XXXX

choice. PPO Our pairing affordability the year-over-year our market insurance created moat growth have the with in demonstrates by products

also balancing on In a execute members serving we last quality to high of while drive and our growth of counties XXX% challenging network growth demonstrates continuing by adjustments are as and design refer region. our business, into Southern our such better quarter dynamics Clover across that to differing to provided our beneficiary intelligent our markets than Maturing nearer differentiated more to focused the care since Georgia as to that doctors ours ability Non-Insurance such we Jersey care. more by region. Assistant with bring is Our to markets value-based term Insurance as benefits wide such network New significantly item markets region highlighting New we our counties newer Jersey MCRs have worth as One efficiencies. refer our northern as mission

plan to MCR. will to Non-Insurance around the the drive working our several achieve is across specifics dynamic are margin. that of similar MA currently on we in and segments, stepwise improvement we are growth solid believe another there on a and gross actions In XXXX next measures earnings share We margins calls all more we balancing taking business,

data program learnings our analyzing we of the We and target. the go-to-market and first the around efforts year strengthen to from providers regions are

Our goal contribution. margin for a for provide our course Non-Insurance business to positive a is

working our also as reducing are on percentage We operating of expenses a revenues.

growth operating year-over-year are expect throughout to the expense remainder And is the of You we growth some the slowing. as seeing initial year. rates of decelerate efforts results

a our we differentiator, untapped the this capabilities I are potential, is of augment On strong to and differential Health clinical what we've between platform. front, roadmap most with Because MCR it and designed new done its in whose we Clover which increased that accomplished members growth already use under we've be excited have software early key potential And providers total a Assistant's in believe is something network, about system cycle. plans continue features Clover Assistant not. innings further a to Management, its That build can't lives wide do club invest this realized. heavily particularly the to those in the who still the of believe we on use, technology value. is rapid Clover incredible across do. momentum, clinician in To the said, iteration and we

into increase value-based both of clinicians the see Advantage side. more Medicare CA also the ways way Clover to of to we number Assistant. see reach on Medicare We bring a the and fee-for-service a as Ultimately,

clinicians the ACO for and reach ways on that. panels more above Contracting of working XXXX, do to for transition program noted Medicare CA with launch we their program continually to in which will the significantly helped the Direct of are We

Our continue with care. goal total coverage any to is have those in including to value-based we that product And standpoint CA engineer the participated given PCP, in allow for from with Medicare a never mind. panel business this

we Value-Based team Head We Chief this a significantly General Counsel, our Care. Finally, strengthened management onboard, and past brought Technology quarter. of Officer,

potential. We financial to update. are thrilled now executives and us for will of pivotal believe talent have our long-term by it that, able I achieve the to we've caliber been will significant be Mark attract goals With to and these helping the

Mark Herbers

revenue delivered in quarter. $XXX We in the million first Andrew. Thanks

both Advantage year-over-year Clover the growth and Assistant strong driven Medicare. due differentiated to in Original Medicare Our to increase was large by lives capability Management participate in under our

to medical expenses. Moving

net for Our incurred were claims quarter $XXX the million. medical

saw Our impact GAAP our Insurance was for We guidance and range. MCR was quarter. quarter within XX.X% of to fourth basis the COVID-XX in points down of there January, the compared the but costs remainder increased XXX an less much

non-insurance was margin XX.X%. Our

First revenues. adjusted expenses operating $XX.X were representing quarter, total non-GAAP million XX% of

This and will quarters to occur of moderately. quarter expected not XX is payments year, headcount that to specific AEP broker grow also only this in other million included approximately

of million. benefit in We gain premium the net quarter, a deficiency the reserve also $XX.X equating non-cash to recognize

loss $XX.X the quarter net Our GAAP was million. for

reflective results. PDR that Our adjusted our adjusted operating benefit $XX.X million the is quarter of not this EBITDA loss for million excluded as of EBITDA first $XX.X Now the was

Our as cash, XX, investments March cash of XXXX. totaled and equivalents $XXX million

effective, not Additionally, filed housekeeping. yet we in universal The in registration no have plans SX is corporate shelf earnings, on good conjunction SX order SX. have to current with and the maintain a Form statement utilize to we

XXXX our maintaining are guidance. we Finally,

let me call Now, to over the comments. Vivek for some turn closing

Vivek Garipalli

three, Thank What To that massive you, we I XX is years almost uncertainty look in believe I key some by companies following; look is up, of a will decisions. creation inspiring today. that in Mark. one, has terms those can close entrepreneurial they best having problems. mixed. There have mission a following. accomplished company every market company been healthcare real will believe willingness two, value matter that make significant The make the be team; a Two the and technology impact a of number One, wanted through has special ingredients general various moat. as I companies a ambitious massively of reports We and not earnings back did hard demonstrated positive described wrap whether for consistent; with the to company at solving market in thoughts. recent if be when an or to an

not expanding our the about just technology that growing is Here about medium near-term term. while but aspects today, of some me moat. make are Clover excited, Clover to

generally insights. chain. agnostic prices, Our and business cash the inflation, clinical growing a cycles, Margins macro economic flow is our Profitability around materially way. are supply impact generation of and free a the basis, uncertainty are along And on is engine commodity to improving.

continue progresses. possible questions. we things believe profitable efforts expenses basis, you even our number more a that, take the fall may Thank place, non-GAAP non-cash that forward is expenses. on With you on be and to and excluding next a We if non-recurring look we to year updating of it into let's as year

Operator

[Operator Genuity. from question Instructions] We Canaccord will take Richard first Close, our

Richard Close

how little like XX% talk to understandable being guys on which you the you But March is But it could from you MCR to perspectives the XX%. quarter are can results, about curious, some guidance, was little guys bit. progressed there? guess give I like just bit seems you're a talk us first if the reiterating a based conservative, I January to there.

Andrew Toy

Sure.

that obviously, XXXX. very February. which which within in quarter we year you last were to first improved, has alluding see think as the we you in did talked have and and about say, January more about to COVID hope So effects, pleased that MCR, I We we're which

with that effects what the take that overall decided really none going country. to within more a into is the all COVID And obviously at We we've hope look baked going you know we've that we going fluid to what's however some to as with that forward. this treat health an seen, that there now of learned us asking future MCR and are variants approach inside manage where do we're to we to of getting society, of those as happens economic, rewards how how happen care

believe the and are we reiterating therefore the condition stabilizing, MCR. to pandemic around our manage do -- our comfortable is guidance our we So, that ability manage

of possibility generally QX And around did a variance there COVID future things We and think like it. sort see do we is that. in things events So, have like of do improving.

Richard Close

information move a could you New the think? the that? And talk expect needle was Just quickly then How with XXX, like How that I guess respect XXXX, that something can that. helpful? you for address any Southern you do regional would be you to details that, guys little about And bit provided to on do you Jersey? there

Andrew Toy

absolutely. Sure,

MCR, lower our a So we that not as have of Jersey, and you're our pointing markets our just opportunities more mature ones lot newer look for overtime. like Georgia a do but out, also markets, mature New think do there's to South

of to do share that. think our New we to we business. do that's a have MCR natural will improvement more progression the Jersey be efforts In itself, So, more in aggressive plan on Southern

So things like program our Assistant we around of levers in at disposal physician our around Jersey, region. with partners our income have deployments, care our that a deploying Southern in New within working Clover lot around

once differences do there we can and plan as regional MCR that differences our We we deploy over regionally we we well of did as as do emphasize those do much one well. levers are us do all you manage time. So, number, there. but that think see we we as can And -- better

Operator

of Our from Please go Citi. Jason Cassorla next ahead. question comes

Jason Cassorla

are quick I the that virtually all sure set. lives to XXX,XXX a That's just want XXX,XXX in under of Management, lives Assistant included the your DCE make of Just start, clarification correct? Clover

Andrew Toy

is That correct.

Jason Cassorla

Okay.

from your it your So to the within just total only members XQ looks represented half XX,XXX about XQ, last my lives quarter. on book Management in XX,XXX I specifically, based it but guess like increased MA of verses it MA Clover in on XQ XX% Assistant math, in looks like about

you penetration book the anything would start expect the course helpful? call 'XX? maybe there out over Assistant higher and Or greater up that to besides Clover year? membership there penetration to within on growth And Management just of the So anything there would simply else call deceleration to is be

Andrew Toy

question. Yes, great

it, regions claims PCPs physician which to framed we have is in strong know those into us And see, by going. what lets will you actually being seen growth. our actually as that definitely, numbers various So quite members the data, are wait we data, happen we're

expand what geographically well us while means we that as to up user base in it is that that As a as for markets. build takes CA grow, those little

targeting. is there in in be we which bit PCPs as a of that now, we right those actively markets to all are should doing our We of but markets a grow see lag

percentage, So, keep visits number rapidly move might bit The the upwards a is we as stabilize moving the believe you and CA have flattening, little see that growing are we new we total of will that members year-over-year, see but our that into doctor about do feel continue up because of ability improve then a but to in as a regions. who to we CA right. and good I number that increasing

Jason Cassorla

bids the kind marks? were in the for ’XX? kind in really your getting coding to That's just Clover guess helpful profit to blocks be any on I for model that for be I helpful? theoretical as of and of And break tune you growth how just in here, your building color understand it'd around given risk of my versus just comments last of of helpful. what the XXX side without how And any then you're MA would MA the color. even the And just offerings context you you're year and to guess in finalized Thank context EBITDA preparing your on call considerations. approaching next balancing discussing follow-up closer

Andrew Toy

absolutely. Yes,

all, So, first June. said as of filed we June -- in are well, are bids being and

up are at have plans. certainly alongside the to growing the our to product did general soon, are the wide right? continue those industry our believe exactly MCR, market, eligibles We to balance now but and to operating we costs, not want coming we costs balance to to that costs, ability ability network report we do to want looking defining What we'll beating balance our is access looking all at within the we So our manage which that able for, more is be Medicare we'll industry talk growth, theme. what generate on about on and

which balancing tool one enter. to we those look So, to markets look as are things certainly at two bid the at we

helps tremendous a as DCE on have well both as amount do the that. us of that reach M&A data We side ACO within

the you'll So, within to strongly, also focus to you driven of nuanced see areas on but improve us MCR. these each choice see will having data continue grow choices us

Operator

SVB Our Securities. next ahead. comes question from of Whit Please go Mayo

Whit Mayo

I that the the breakout what Is in wanted back majority I to to growth came just in X,XXX the from M&A DCE. users? I the users on guess any Clover was organic the there Assistant go really, of Clover quarter. to maybe way Assistant growth presume the

Andrew Toy

of goal the Yes, as it sometimes reason my much as be going be just there is don't so, forward. as with those could we out the the there's break actually panel, -- that physician's is it could MA, break both could possible within But fee-for-service. fee-for-service just, there it Clover panel, that just we doctors because discuss prepared don't out be we remarks, overlap, particular Medicare to our cover right? the goal is between Sometimes we're for is numbers, MA them Assistant population, and the overlap up and signing

who be really way is number shared. like, and that's Assisted KPI of this we're this are between tracking on to PCPs between generally of share that And have the are able that's some tracking. double many we're we we but how M&A number fee-for-service, the and Clover a that breakout might So,

Whit Mayo

Southern that, capability Care, potential business? you trend can if elaborate your that get you a really New a you full other to for for that service. of we that? appreciation market. you fully what two, just a just do I have with I'm because trying in were Jersey mean, accomplish break between see number is I DCE, the kind bender to more the you of reference guess. discuss And that comments to what appreciate just out not as bit for just little question, Home maybe Can on think one. Number in referenced, sense it can the to I think Clover sort we Andrew, I a for take A&P My trying desire offline, normalize so number you

Andrew Toy

absolutely. Yes,

what in their we where we care be And Home And I've them more primary home. has, say after in within think regular coordinating we key longitudinal them, a coordinating to unfortunately platform at work is comorbid, conjunction managed comfort with wrapped, Assistant, this. actually original looked provide By a them transfer with own PCP, just visits existing with with their how at their throughout holistically home of Care for on physician, more add we having you to looked our multi for home. the make basically more with had that sense them commentary and manage them point care, multiple the it own is, after we're can who we Clover in gone saying after are all added Clover for both doing like care, who Assistant anchor does data to accurate this, So just of the continue they've the and hospital, sharing Clover their looking the as able and strategy. some We've that's them we and program, post-discharge to chronic here is our Vivek absolutely care all some some PPP. care. render at do

Vivek Garipalli

And question. Thanks great Andrew.

its referring unique think home I really is in we've there. in seen of home-based What Primary there's Program, care physicians. when are coordination Care physicians Program based primary to a in of the primary care the one home-based So, collaboration more and the network direct Clover in aspects marketplace is, terms our of Primary lot the a employees Care of

up of eligibles end centers up, these rarely goes some popping take rate So, if very care enrollment XX%. you clinical typical where markets above of complex the

clinically that eligible, And not those We MedEx wanting popping decisions. When the plus, a that it's resistance The of don't but with to are have up. have actually a is there's in in home to care an actually current care, much those programs. local their there's rate centers" not new are patient technology based. market has And actually conflicting that's of and existing "shiny impact, enroll higher. model on won't patient you reasons influence ceiling. why enrollment while synergistic lots the that from primary XX% So population lose

most primary of checked, home we're last think of enrolled little we're bit while obviously, rapid pretty a north well. care, XX% the at eligibles as So, clip are based of in portion clinical I population actually growing a Clover eligibles, acute

Importantly late to be in since and able the were we unfortunately, March XXXX, not physically home.

And Program, so, when our February home go the virtual, to and much doubt still much, was to program, impact been clinical of maintain has lower, in it Primary only Care no in able We physically this based into not year. the the there's and grew is back we're the home. wholly be but home, able

to going So, that do in we're more hopefully prior we see way it than comeback effective impact scale think a did and COVID. lot to

one think program our way palliative the initial small just effects other we a start in years wholly-owned own, markets, And care kind important is we'll of as I next in positive over of clinical well. well. as launched that thing add, of see to couple some the to

Operator

Bank comes question of ahead. Kevin next go Fischbeck from Our Please of America.

Kevin Fischbeck

view viewed data. harder you perspective the COVID to the up maybe from follow got natural cost hit guys to there serial look some like through is during but improvement the in engagement spikes. guess. year, now needs that that regional guess, wanted have during talked really signal I coming be Jersey? down? to a unusual kind elevated any Is XXX a to hospitalization kind the become we at and Or lot a didn't New of disruptive costs, for It think you I of Jersey you sounded of how re-pricing and South I the tailwind it you it about brought on is COVID, number, it MLR out that area

Andrew Toy

Yes, absolutely.

why out getting that, is place year particular said, it multiplier this effects working, now as of more, markets way you full effects, the that and at we difficult a we a these as it's set that part where work results. bit after a this We do share the data, can that's regions is to like, definitely, So COVID wanted think of within the way have with effect. a we look is healthcare of break COVID it like certain as that the of well data,

always in the that delivered harder got be makes population we way is it we South mix, said, a little effect there, but But are can as particularly over on we the the COVID the which things was So more is these in hit from health et well, we admissions, fine. And COVID. care that front, given Jersey that all like mix a absolutely serve magnifying it that from a manage. underserved market cetera

world, a and too different little makes data see of revert given and given growing, how the like we're MedEx whereby to I by want did fast effect we different or expanding, to well. geography our this that at it a market were from basis. South hopefully cohort So look waiting bit in will it's show for we're things the early Jersey, fast point, us and And more as we're back is way this to sense data little in something but to as what regional for how side really a that a signals your to post-COVID normal be

Kevin Fischbeck

that that increasing, going are back it a Is And early answers, of engaged people markets, bringing it's big from actually that more to markets it's the made sounds I lower penetration new to of markets. cost more more way really In new rates the that coming it's such to show that I are getting to in to down. which where of just think surprising lot MA a percentage one see it then, average? be a you'd new the of with any to sound little go Contracting stats see go the established accelerate that you but higher part guess, but the engaging was of because And kind down the the impression in help lives I is come penetration lot of was doctors forward. though the would Clover of captured means markets kind you've a so of the bit even of like your more to in patients, sort coming down Want up Direct ways, growing and guess about story see under a surprising going control lives. kind it Assistant -- expect like I you doing the

that? maybe color So any on

Andrew Toy

Yes, a big there. so definitely test the way you framed it

program. work we're so in we to better for about because we're doctors quick however, and good is season. the getting fee-for-service is we stay there like population very way the one say are about think in saying market Part a in that. So, like and between some is we is, work you meaningful between you're with look pull need are to that and on doctors at that growing because the the Assistant, we panel. which effects better between that of where within doctor's and have when in that Clover that MA approach identify given synergies and with, us When the to CA, lives we a all say, have and numbers have we covered is what of do that don't Georgia There Georgia grew go data to like sort of we just Georgia, uptake who lot lag a

will material fee-for-service talked who we'll sign motion doing who them alive, to UCA. a to where a on So is have see have what that sales start talk we'll doctors Assistant Clover then at go our motion we and the go, look potential and team up like size, it's doctor about we've BXB you'll opportunity

resonates the a all little us management. they'll have in identify longer for them sort So, signed move It's growth. where and takes live, we significant those then get year-over-year get under just markets. stocks, well a we that them where to up, good feel natural effect that it go story percentage of There's

there. be like feel we'll okay we So,

Kevin Fischbeck

markets? your in the But did core penetration increase

Andrew Toy

moving we're Correct, always right. to the up

Operator

next of Yong Our go Suisse. question from Jonathan ahead. Credit Please comes

Unidentified Analyst

trends of Thanks question. you of Hi kind Would the of mind utilization color everyone. non-COVID year? the how and for for today. It's, on some for Nick us the Jonathan giving you the quarter progressing around rest sort those see taking exiting

Andrew Toy

Non-COVID utilization trends?

Unidentified Analyst

Yes, correct.

Andrew Toy

setting, -- difficult as there's a play, added, non-COVID thing, right not seeing a like for utilization yes, COVID seeing now of the it's your we're whether deferred versus bit that's of to severe is it's and we're now think inpatient with in or whether really have But they we COVID COVID are. a what question the how diagnosis, whether reverse in disconsolate any much what we'll complexity it's treated, diagnosis many question COVID total is kind Basically, so COVID well. trend what the thing, play, example, because little see non form at is which or I us really conditions being in trend, the with less is variance procedures for a how the is of COVID the in a like part unclear of it's what COVID done index, being

given any if as you the mind all By COVID flowing said, given way, don't typing you don't makes COVID started month of that we to is sense. if diagnosis data in is what think really still that don't if rate We say our the, single appropriately any you there's right. the that what looked. is That COVID the can So in we care, we see is within we effect overall, high meeting. there, population that for care digit an mind, hear we've that think though, through

think -- think into et we and that about and care, we surcharges, some COVID I it's that going believe is whether overall our of what the way a way procedure basically, government normalizing of care the being care we necessarily would don't is which it, diagnosis, stabilize We where think classify as a the that So that towards just will we the don't are between. related all us. for all Because point. COVID this it believe COVID COVID do COVID is, things -- cetera, we extra be remove XX% answer the at at somewhere Generally, point anymore in for will paid MCR. we would tailwind about

Unidentified Analyst

the follow-up which lower the us looked And expect the of to over Thanks. you a guided it end I to trend lower towards the to and we how just guess then it what trended year? some like drove as towards to XX%. give insight should as moving throughout OpEx, Can of it range XX% rest

Andrew Toy

as for loaded where commissions we that loaded our mentioned also this have absolutely, of lot mark and front Yes, in year. are like a

that well. So, OpEx we you're see as those there studying built into number our QX

want to call Just that out.

the are So, feel OpEx which we also is that blunt and leg and about we to building superior then delivering, to wide good growth. network that that. MCRs, absolutely continue still us and, growth, And is to at focused our the path third of tool very critical by for industry we of Part on powered manage model is profitability. and

late is actual So, you year, OpEx that we We into to last our do slowing. is started growing to looking and see flow that started like rate at the that. now through And rate those slowing, effects our starting numbers. we've growth see

We differentiation we've growth deliver plenty we proving those so been that given of of we've in our on focused model. have think now. setting We achieved believe efficiencies can differentiated all this things that our that we area,

that a on talking focus and that profitability, future in the more us you'll is now now of earnings. and So path about see lot

Operator

open. Close line The question follow-up Richard Genuity. Canaccord of We have from a is

Richard Close

Clover adoption. Assistant bit a about more the Talk little

thoughts guys the out into How data? they? lower XXXX How patients by MCR physicians. Do I are cited XXXX and really to curious Assistant. you dig just Clover to that for in using managed physicians it around are the you using go XXXX, guess that? and when You talk they data MCR data, receptive and

Andrew Toy

Yes.

use definitely we it's more, and cohorts very we as program. improvement churn physicians it Assistant I using the data longer see, an before based more started we MCR So, question, the they've that as a when Clover And say, been the we Assistant, -- low per upon previous shared as improvements. physician Clover the better there the using joined. continue

value-based to by And they do not many value-based We're here sort which at tie that dipped really of to successful make and to but all. of physicians them we and the about now And in good have our these found Assistant, the that. care, the them them is high, people those toe making unappealing sure So sure sign with show our following it, to But medicine and feel decide to just can physician And where with their the here care. think make want all for of deliver partners don't them we like to with then everyone, capability. is, them reasons. arm numbers, once that we're how we're they care doctors to key fast data so not satisfaction different membership a them care. are them want we as how people they're that practice up Assistant, stay want we about to able Clover a docs personalized We feel number truly quite When to well. program. those good on growth to seeing here we're that the geographic about Clover we're on about that tell talking tell I we to to about better we're arm medicine, thing it's

basis feel And they customize can have we as feel not a them. The that clinical to available any their action, basis, then good. have them which the would we given that pull their the has we their picked in data own someone twisting lets arm whereas and really to more front given moving kinds medication as us things we're compelled these cost a that platform them miss of in showed All of clinical to EHR them can would data is pay and to plan. sort them make makes more sort flat protocols they're med in they the Then seen on on and that their like use like a sitting So, decisions, QX like like patient them make whether not fact or that of compliance, arm up better it. their where a of to things data. like documentation able Assistant tool EHR Clover comparisons is as them

where are, aligned highly we're physicians they sign to up growth probably fee-for-service well patients Reach the participate stay seeing market because MA ACO our and meet seeing that who is and So DCE our otherwise as physicians into us value-based chassis. more UCA. side, to together, let like on wouldn't on you're And these in able all of that bring they claims things quickly and care we're that

physicians and motions can as entire and entirety how us feel that's our adoptions, entirety year value-based with exceeding is the Medicare help you panel getting alluded of or be. two really panel. a of panel, we cover think, place goal We're now to our a the after program great because the the requests more, their is a more Medicare lot we're enable that'll these of for with synergize all. only be still see and to So, to and we're ACO DCE going to to care of like ultimate something Medicare I And

Richard Close

ACO of make you And transition, Any How Reach? thinking meet to milestones guys to transition? requirements a terms now ACO bit that? in you have talk little as that whatnot the achieve position can a the respect the have are altering follow-up about Reach how to you with for or business to you you're that

Andrew Toy

good Yes, question.

well. So, ongoing will entities year, back to And to we Reach transition leading in ACOs pulled ACO is will the is one biggest one DCE, next about good still through as our which year. Contracting biggest of us Direct a feel that flow DCE, the participation of we're the as his which be

not to by be changes if think can we're data fantastic made We have And we almost use we all the physician for intelligently terms and by contributing of partners, being our in profitability. of which we CMS, decisions program to the will drive all our were that generally which large looked be of made a them. drive growth amount really it of as supportive to of them, to

So, there all physician are idea. think and things great about about board, greater that's a for example, on physician participation empowerment. We're the we

that think be the relatively quite so, in a our way, and straightforward make really things program of we can that we And all in most we're in relatively supportive changes the to program. are that successful we're going

Operator

like community the Nueman would call to return now to questions. for Derrick I

Derrick Nueman

you. thank Great,

Our if first so to there plans And states expand other question community 'XX, Are 'XX? which? is. in to

Vivek Garipalli

on one, jump Derrick. this I'll

I returning Assistant XXXX Clover while PCP versus a Clover much successful And next strategy usage. basis allows in it's on used it's in in the terms we a remember continued deeper who data, as year. is still where that. growing intelligence our of share continue So, It getting MCR decrease weighted MCR over little us what now And always impact got think go from don't. well. towards members can improvements lot a that about Assistant publicly the in going But work differential necessitates clinical even to longer works the markets. around and grown our we impact, last And that's say really continue into that to existing to that expansion year MCR. increase for today, growing, overall over and too significantly early thinking. there's just bit on more the And point markets learnings increase our best continue coming to important currently we strategy is the of positively in luxury markets. to drive a going churn whose our as We've And can we've we're focus to for those to us and that

Derrick Nueman

community Our anything new CFO? a about question, next

Vivek Garipalli

strengthening around Chief new in myself, I programs care truly We brought we this. quarter. Wai, and help General So who normally brought our just believe the new into onboard, fact just And that our the think physicians Assistant And on value-based we've bring our on Joe focused Clover who been Value-Based Technology then, today, team. for like Martin. Head emphasizing is Care, over we made Counsel, management that that focus new of Conrad program, significantly ACO the CTO we a Reach a Officer, us announced announcements few can again, role participate onboard don't

we So that all strengthening are and our about of that. of bench significant feel great

CFO is call. very do the directly have on here our there our strong front, the our getting making to CFO, at finance focus luxury team be selective right person. to And this and announce the the we're who's absolutely given we and time good Mark On interim progress. Nothing on

progress. talk good making to about a date. more have So, future we're at We'll

Operator

Our out And licensing demand when? Assistant, final do there Clover community for on it? you so, question, plan if is

Vivek Garipalli

-- great panel and driven to excellent so And data is previously to in I've call, PCPs care this at as we Medicare for who what getting of upon because care entirety the difference absolutely for announce folks Insurance time, M&A, them cover question. but a there's CA mentioned lot company Medicare. their are from easy make how inquiry actually really on it be deliver our the insurance value-based fee-for-service. based are which folks around and partners Medicare form they goal Yes, whether a M&A, Nothing on they of successful between to they're of clinically, no our or Clover is, that on

to they with And can those place so, want capabilities. together Clover central they of bring provide can And that we have manage that and all that Assistant.

advantage for that play out as built other that. panel now, that the physician's believe looking plan ways are to And role there's for Medicare huge opportunity at we at And CA physician Advantage really a There's are to scale Medicare definitely a we a having parts we here from of coming tool. significant us we looking well. can partners. So, a with our for

Vivek Garipalli

technology today, it's Thank joining System, Clover And for hard great today. us a and is making you in and positive just we everyone progress close, drive while this while and moat growing our really there's where very life. being impact improve us providing equity, we're to good year a to mission along meaningful health done every feel to about really work are we the this continued enabling

Operator

on first webcast. Health's This quarter call XXXX Clover concludes today's earnings

You your wonderful a Have may line disconnect day. this time. at

Clover Health Investments (CLOV) 10 May 222022 Q1 Earnings call transcript