Bright Health Group Reports Third Quarter 2022 Results

• Revenue of $1.6 billion, up 51.3% from Q3'21, GAAP Net Loss of $259.4 million, Adjusted EBITDA Loss of $82.9 million

• Q2’22 Enterprise Medical Cost Ratio of 90.6%, a strong improvement from the prior year

• Lowering Full Year 2022 Enterprise Medical Cost Ratio guidance range to 90% to 92%

• Positively revising Full Year 2022 Adjusted EBITDA loss guidance range to $550 to $700 million

MINNEAPOLIS--(BUSINESS WIRE)-- Bright Health Group, Inc. (“Bright Health Group” or the “Company”) (NYSE: BHG), the technology enabled, value-driven healthcare company serving aging and underserved consumers with unmet clinical needs, today reported financial results for its third quarter ended September 30, 2022.

“Bright Health Group continued to deliver against our financial targets in the Third Quarter and we have confidence in our improved guidance for the year,” said Mike Mikan, President and CEO of Bright Health Group. “Our Medicare Advantage and NeueHealth businesses continued to outperform our expectations in the quarter. With our strengthened capital position and transition to a more focused business model, we expect to reach Adjusted EBITDA profitability in 2023 and continue to drive our differentiated Fully Aligned Care Model.”

Key Metrics

	As of September 30,
	2022		2021
Consumer and Patient Metrics
Bright HealthCare Commercial Consumers	1,025,000		600,000
Medicare Advantage Consumers	125,000		110,000
NeueHealth Value-Based Patients	520,000		170,000

	Three Months Ended								Nine Months Ended
($ in thousands)	September 30,								September 30,
	2022				2021				2022				2021
Financial Metrics
Revenue	$	1,632,292			$	1,078,657			$	5,044,495			$	3,067,055
Medical Cost Ratio (1)		90.6	%			103.0	%			87.9	%			90.3	%
Operating Cost Ratio		18.2	%			28.7	%			22.3	%			25.4	%
GAAP Net Loss (2)	$	(259,361	)		$	(296,722	)		$	(691,320	)		$	(364,990	)
Adjusted EBITDA (non-GAAP)	$	(82,929	)		$	(292,176	)		$	(352,620	)		$	(399,769	)

(1)		Medical Cost Ratio for the three months ended September 30, 2022 and 2021, include a 140 basis point and 540 basis point, respectively, unfavorable impact from COVID-19 related costs. Medical Cost Ratio for the six months ended September 30, 2022 and 2021, include a 200 basis point and 420 basis point, respectively, unfavorable impact from COVID-19 related costs.
(2)		GAAP Net Loss for the three months ended September 30, 2022 includes Goodwill impairment of $74.2 million and Intangibles Assets impairment of $42.6 million. GAAP Net Loss for the nine months ended September 30, 2022 includes Goodwill impairment of $74.2 million and Intangibles Assets impairment of $49.3 million. The Goodwill and Intangible Assets impairments are primarily due to macro and strategic factors.
See the table at the end of this release for additional information and a reconciliation of the non-GAAP measure used in the table above.

Financial Outlook

For full year 2022, Bright Health Group is providing the following guidance and commentary:

• Bright Health Group’s total Revenue is expected to be $6.8 billion with an expected enterprise Medical Cost Ratio between 90% and 92%.
• On a segment basis, Bright HealthCare combined Commercial and Medicare Advantage end-of-year membership is expected to be over 1,000,000, while NeueHealth Revenue is expected to be approximately $2.2 billion.
• Intercompany Revenue elimination, comprised of payments from Bright HealthCare to NeueHealth for managing patient care and for network services, is expected to be approximately $1.2 billion.
• Adjusted EBITDA for 2022 is expected to be a loss of between $500.0 million and $700.0 million^†.

Earnings Conference Call

As previously announced, Bright Health Group will discuss the Company’s results, strategy, and outlook on a conference call with investors at 8:00 a.m. Eastern Time today. Bright Health Group will host a live webcast of this conference call which can be accessed from the Investor Relations page of the company’s website (investors.brighthealthgroup.com). Following the call, a webcast replay will be available on the same site. This earnings release and the Form 8-K filed November 9, 2022, can be accessed on the Investor Relations page of the Company’s website. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website. Accordingly, investors should monitor this portion of our website, in addition to following our press releases, U.S. Securities and Exchange Commission (“SEC”) filings and public conference calls and webcasts.

About Bright Health Group

Bright Health Group is a technology enabled, value-driven healthcare company that organizes and operates networks of affiliate care providers to be successful at managing population risk. We focus on serving aging and underserved consumers that have unmet clinical needs through our Fully Aligned Care Model in Florida, Texas and California, some of the largest markets in healthcare where 26% of the U.S. aging population call home. We believe everyone should have access to personal, affordable, and high-quality healthcare. Our mission is to Make healthcare right. Together. For more information, visit www.brighthealthgroup.com.

Notes

^† A reconciliation of the projected Adjusted EBITDA, which is a forward-looking non-GAAP financial measure, to the most directly comparable GAAP financial measures, is not provided because the Company is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. These GAAP measures may include the impact of such items as interest expense, income tax expense, depreciation and amortization, impairment of goodwill or intangible assets, share-based compensation expense, transaction costs, changes in the fair value of contingent consideration, changes in the fair value of equity securities, contract termination costs, restructuring costs; and the tax effect of all such items. Historically, the Company has excluded these items from non-GAAP financial measures. The Company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business, are inherently unpredictable as to if or when they may occur. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Forward-Looking Statements

Statements made in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “projections,” “outlook,” and other similar expressions. These forward-looking statements include any statements regarding our plans and expectations with respect to Bright Health Group, Inc. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Factors that might materially affect such forward-looking statements include: our ability to continue as a going concern; our ability to quickly and efficiently wind down our IFP businesses and MA businesses outside of California; our ability to accurately estimate and effectively manage the costs relating to changes in our businesses offerings and models; a delay or inability to withdraw regulated capital from our subsidiaries; a lack of acceptance or slow adoption of our business model; our ability to retain existing consumers and expand consumer enrollment; our ability to obtain and accurately assess, code, and report Individual and Family Plan and Medicare Advantage risk adjustment factor scores for consumers; our ability to contract with care providers and arrange for the provision of quality care; our ability to accurately estimate our medical expenses, effectively manage our costs and claims liabilities or appropriately price our products and charge premiums; our ability to obtain claims information timely and accurately; the impact of the ongoing COVID-19 pandemic on our business and results of operations; the risks associated with our reliance on third-party providers to operate our business; the impact of modifications or changes to the U.S. health insurance markets; our ability to manage the growth of our business; our ability to operate, update or implement our technology platform and other information technology systems; our ability to retain key executives; our ability to successfully pursue acquisitions and integrate acquired businesses; the occurrence of severe weather events, catastrophic health events, natural or man-made disasters, and social and political conditions or civil unrest; our ability to prevent and contain data security incidents and the impact of data security incidents on our members, patients, employees and financial results; our ability to comply with requirements to maintain effective internal controls; our ability to adapt to the new risks associated with our expansion into Direct Contracting; and the other factors set forth under the heading “Risk Factors” in the Company’s reports on Form 10-K, Form 10-Q, and Form 8-K (including all amendments to those reports) and our other filings with the SEC. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or changes in our expectations.

Bright Health Group, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (Unaudited)
	September 30, 2022				December 31, 2021
Assets	​			​	​
Current assets:	​			​	​
Cash and cash equivalents	$	1,605,525			$	1,061,179
Short-term investments		299,897				193,835
Accounts receivable, net of allowance of $7,129 and $4,074, respectively		120,489				113,474
Direct contracting performance year receivable		234,776				—
Prepaids and other current assets		377,214				291,712
Total current assets		2,637,901		​		1,660,200
Other assets:	​			​	​
Long-term investments		865,677				675,192
Property, equipment and capitalized software, net		47,938				38,344
Goodwill		761,285				835,140
Intangible assets, net		263,265				343,860
Other non-current assets		36,061				45,603
Total other assets		1,974,226		​		1,938,139
Total assets	$	4,612,127		​	$	3,598,339
Liabilities, Redeemable Noncontrolling Interest, Redeemable Preferred Stock and Shareholders’ Equity (Deficit)	​			​	​
Current liabilities:	​			​	​
Medical costs payable	$	975,126		​	$	817,975
Accounts payable		111,272		​		118,140
Unearned revenue		195,892		​		53,295
Risk adjustment payable		1,308,959		​		931,170
Direct contracting performance year obligation		155,145				—
Short-term borrowings		303,947				155,000
Other current liabilities		201,014		​		207,238
Total current liabilities		3,251,355		​		2,282,818
Other liabilities		33,121		​		41,994
Total liabilities		3,284,476		​		2,324,812
Commitments and contingencies (Note 11)	​			​	​
Redeemable noncontrolling interests		211,026		​		128,407
Series A redeemable preferred stock, $0.0001 par value; 100,000,000 shares authorized in 2022 and 2021; 750,000 and — shares issued and outstanding in 2022 and 2021, respectively		747,481		​		—
Shareholders’ equity (deficit):				​
Common stock, $0.0001 par value; 3,000,000,000 shares authorized in 2022 and 2021; 629,915,081 and 628,622,872 shares issued and outstanding in 2022 and 2021, respectively		63		​		63
Additional paid-in capital		2,939,820		​		2,861,243
Accumulated deficit		(2,476,822	)	​		(1,700,851	)
Accumulated other comprehensive loss		(81,917	)	​		(3,335	)
Treasury Stock		NeueHealth, Inc. NYSE:BHG BHG Rankings N/A Ranked by Market Cap N/A Ranked by Dividends BHG Latest News Jun 24, 2024 NeueHealth Secures up to $150 Million in New Term Loan Facility with Hercules Capital Jun 18, 2024 NeueHealth Receives NYSE Non-Compliance Letter Regarding Market Capitalization Requirements May 8, 2024 NeueHealth Reports First Quarter 2024 Results Apr 18, 2024 NeueHealth to Host First Quarter 2024 Earnings Conference Call on May 8, 2024 Apr 9, 2024 NeueHealth Enters into Amendment to its Credit Facility BHG Stock Data Market Cap 130.81M Float 3.36M Insiders Ownership 4.93% Institutions Ownership 65.03% Short Percent 1.31% Industry Direct Life Insurance Carriers Sector Finance and Insurance Website Link Country United States City Minneapolis Explore About Rhea-AI Sitemap Legal Terms of Use Cookie Notice Privacy Policy Links RSS feed Patreon Discord Server Facebook Reddit © 2020-2024 StockTitan.net