P3 Health Partners Announces Fourth Quarter and Full Year 2023 Results
- None.
- None.
Insights
The reported 21% year-over-year revenue growth and the affirmation of the 2024 guidance by P3 Health Partners Inc. signal a robust financial performance that is likely to influence investor sentiment. The company's ability to exceed its revenue guidance suggests operational efficiency and market demand for its services. The growth in capitated revenue, which refers to the fixed amount per member per month paid to a physician or group of physicians by a managed care organization, is particularly noteworthy as it indicates a sustainable revenue stream. This growth, coupled with a significant reduction in net loss from the previous year, may be seen as a positive indicator of the company's turnaround efforts.
However, the report also indicates a negative gross profit and an increase in the adjusted EBITDA loss on a PMPM basis, which raises concerns about the company's cost management strategies. While the medical margin has improved, the negative gross profit suggests that the company's direct costs still exceed its revenue, which could be a red flag for investors concerned with profitability. The anticipated achievement of Adjusted EBITDA positivity in 2024 will be a critical milestone for the company's long-term financial health.
The healthcare sector, especially value-based care models like those employed by P3, is increasingly competitive and subject to regulatory changes. P3's model, which emphasizes physician-led population health management, is aligned with industry trends towards value-based care, which focuses on patient outcomes rather than volume of services. This approach is gaining traction as it has the potential to reduce healthcare costs while improving quality of care.
The company's increase in at-risk membership, which indicates the number of individuals for whom the company assumes financial risk in terms of healthcare costs, is a sign of growing market penetration and trust in P3's healthcare model. However, the reported higher medical expenses due to increased hospital admissions highlight the inherent risks of the capitation model, where unexpected spikes in healthcare utilization can impact profitability.
Investors should be aware that P3's performance is likely to be influenced by factors such as policy changes in healthcare reimbursement, the competitive landscape and the company's ability to manage medical costs effectively. The company's guidance for 2024, including the expected increase in medical margin PMPM, suggests confidence in its ability to manage these factors, but the lack of forward-looking guidance for net income due to uncertainties underscores the volatile nature of the healthcare industry.
Understanding the broader market implications of P3 Health Partners Inc.'s financial results requires analyzing the company's performance within the context of the population health management market. The company's growth in membership and revenue indicates a favorable response to its services, which can be attributed to the increasing demand for cost-effective healthcare solutions. The market for such services is expanding, with an emphasis on preventative care and chronic disease management, which are key components of population health management.
However, the company's negative gross profit and adjusted EBITDA loss indicate that despite revenue growth, profitability remains a challenge. This suggests that while the market opportunity is significant, P3 must continue to optimize its operational efficiency and cost management to capitalize on this potential. The company's anticipation of reaching Adjusted EBITDA positivity in 2024 is an optimistic projection that will require close monitoring by investors, as it will be a important indicator of the company's ability to leverage market growth into sustainable profitability.
Total revenue growth of
Affirming 2024 guidance
Anticipates reaching Adjusted EBITDA positive in 2024
Management to Host Conference Call and Webcast March 28, 2024 at 4:30 PM ET
“Top line results for 2023 were strong as the team executed and delivered with revenue of approximately
Fourth Quarter 2023 Financial Results
-
Total revenue was
, an increase of$346.9 million 34% compared to in the fourth quarter of the prior year$258.2 million -
Capitated revenue was
, an increase of$342.8 million 35% compared to in the fourth quarter of the prior year$254.0 million -
Gross profit was negative
, as compared to negative$20.8 million in the prior year. Gross profit PMPM was a loss of$11.0 million , compared to a loss of$65 PMPM in the prior year$36 -
Medical margin(1) was
, an increase of$9.1 million 38% compared to in the prior year. Medical margin PMPM(1) was$6.6 million , an increase of$28 27% compared to a medical margin PMPM of in the prior year$22 -
Net loss was
compared to a net loss of$69.1 million in the fourth quarter of the prior year$532.3 million -
Adjusted EBITDA loss(1) was
compared to an Adjusted EBITDA loss of$44.3 million in the fourth quarter of the prior year. Adjusted EBITDA PMPM(1) loss was$40.0 million , compared to a loss of$138 in the prior year$133
Full-Year 2023 Financial Results
-
At-risk membership of 108,900, an increase of approximately
8% compared to 100,400 in the prior year(2) -
Total revenue was
, an increase of$1.27 billion 21% compared to in the prior year$1.05 billion -
Capitated revenue was
, an increase of$1.25 billion 21% compared to in the prior year$1.03 billion -
Gross profit was
, as compared to negative$31.6 million in the prior year. Gross profit PMPM was$7.8 million , compared to a loss of$25 PMPM in the prior year$6 -
Medical margin(1) was
, an increase of$135.1 million 118% compared to in the prior year. Medical margin PMPM(1) was$62.1 million , an increase of$108 108% compared to a medical margin PMPM of in the prior year$52 -
Net loss was
compared to a net loss of$186.4 million in the prior year$1.56 billion -
Adjusted EBITDA loss(1) was
compared to an Adjusted EBITDA loss(1) of$85.5 million in the prior year. Adjusted EBITDA loss PMPM(1) was$127.9 million compared to$68 PMPM(1) in the prior year$107
“P3, like many of our peers in the value-based care space, experienced higher medical expenses in December due primarily to increased hospital admissions with the combination of COVID-19 and flu exacerbations,” said Dr. Amir Bacchus, P3’s Chief Medical Officer. “Beginning in January 2024, we have seen a return to a more normalized seasonally adjusted utilization.”
Fiscal 2024 Guidance
|
|
Year Ended December 31, 2024 |
||
|
|
Low |
|
High |
At-Risk Members |
|
125,000 |
|
135,000 |
Total Revenues (in millions) |
|
|
|
|
Medical Margin(1)(3) (in millions) |
|
|
|
|
Medical Margin(3) PMPM |
|
|
|
|
Adjusted EBITDA(3) (in millions) |
|
|
|
|
(1) Adjusted EBITDA, Adjusted EBITDA per member, per month (“PMPM”), medical margin, and medical margin PMPM are non-GAAP financial measures. For reconciliations of these measures to the most directly comparable GAAP measures, if applicable, and more information regarding the Company’s use of non-GAAP financial measures, please see the section titled “Non-GAAP Financial Measures.” |
||||
(2) See “Key Performance Metrics” for additional information on how the Company defines “at-risk members.” |
||||
(3) The Company is not able to provide a quantitative reconciliation of guidance for Adjusted EBITDA, medical margin and medical margin PMPM to net income (loss), gross profit and gross profit PMPM, the most directly comparable GAAP measures, respectively, and has not provided forward-looking guidance for net income (loss), because of the uncertainty around certain items that may impact net income (loss), gross profit (loss) or gross profit (loss) PMPM that are not within our control or cannot be reasonably predicted without unreasonable effort. For more information regarding the non-GAAP financial measures discussed in this press release, please see “Non-GAAP Financial Measures” below. |
The foregoing 2024 outlook statement represents management's current estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the “Cautionary Note Regarding Forward-Looking Statements” included in this release. Management does not assume any obligation to update these estimates.
Management to Host Conference Call and Webcast March 28, 2024 at 4:30 PM ET
Title & Webcast |
P3 Health Fourth Quarter and Full Year 2023 Earnings Conference Call |
Date & Time |
March 28, 2024, 4:30pm Eastern Time |
Conference Call Details |
Toll-Free 1-833-316-0546 (US) International 1-412-317-0692 Ask to be joined into the P3 Health Partners call |
The conference call will also be webcast live in the “Events & Presentations” section of the Investor page of the P3 website (ir.p3hp.org). The Company’s press release will be available at ir.p3hp.org in advance of the conference call. An archived recording of the webcast will be available at ir.p3hp.org for a period of 90 days following the conference call. |
About P3 Health Partners (NASDAQ: PIII):
P3 Health Partners Inc. is a leading population health management company committed to transforming healthcare by improving the lives of both patients and providers. Founded and led by physicians, P3 has an expansive network of more than 2,800 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 23 counties across five states. P3 supports primary care providers with value-based care coordination and administrative services that improve patient outcomes and lower costs. Through partnerships with these local providers, the P3 care team creates an enhanced patient experience by navigating, coordinating, and integrating the patient’s care within the healthcare system. For more information, visit www.p3hp.org and follow us on @p3healthpartners and Facebook.com/p3healthpartners.
Non-GAAP Financial Measures
In addition to the financial results prepared in accordance with
Key Performance Metrics
In addition to our GAAP and non-GAAP financial information, the Company also monitors “at-risk members” to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. At-risk membership represents the approximate number of Medicare members for whom we receive a fixed percentage of premium under capitation arrangements as of the end of a particular period.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the
Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, our ability to continue as a going concern; our potential need to raise additional capital to fund our existing operations or develop and commercialize new services or expand our operations; our ability to achieve or maintain profitability; our ability to maintain compliance with our debt covenants in the future, or obtain required waivers from our lenders if future operating performance were to fall below current projections, and if there are material changes to management’s assumptions, we could be required to recognize non-cash charges to operating earnings for goodwill and/or other intangible asset impairment; our ability to identify and develop successful new geographies, physician partners, payors and patients; changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity to our services; our ability to fund our growth and expand our operations; changes in laws and regulations applicable to our business; our ability to maintain our relationships with health plans and other key payers; the impact of COVID-19, including the impact of new variants of the virus, or another pandemic, epidemic or outbreak of infectious disease on our business and results of operation; increased labor costs; our ability to recruit and retain qualified team members and independent physicians; and other factors discussed in Part I, Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 31, 2023, as updated by Part II, Item 1A. “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2023, and in the Company’s other filings with the SEC. All information in this press release is as of the date hereof, and we undertake no duty to update or revise this information unless required by law. You are cautioned not to place undue reliance on any forward-looking statements contained in this press release.
P3 HEALTH PARTNERS INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) |
|||||||
|
December 31, |
||||||
|
2023 |
|
2022 |
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash |
$ |
36,320 |
|
|
$ |
17,537 |
|
Restricted cash |
|
4,614 |
|
|
|
920 |
|
Health plan receivable, net of allowance for credit losses of |
|
118,497 |
|
|
|
72,092 |
|
Clinic fees, insurance and other receivable |
|
2,973 |
|
|
|
7,500 |
|
Prepaid expenses and other current assets |
|
3,613 |
|
|
|
2,643 |
|
TOTAL CURRENT ASSETS |
|
166,017 |
|
|
|
100,692 |
|
Property and equipment, net |
|
8,686 |
|
|
|
8,839 |
|
Intangible assets, net |
|
666,733 |
|
|
|
751,050 |
|
Other long-term assets |
|
19,531 |
|
|
|
15,990 |
|
TOTAL ASSETS (1) |
$ |
860,967 |
|
|
$ |
876,571 |
|
LIABILITIES, MEZZANINE EQUITY, and STOCKHOLDERS’ EQUITY |
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable |
$ |
8,663 |
|
|
$ |
11,542 |
|
Accrued expenses and other current liabilities |
|
36,884 |
|
|
|
16,647 |
|
Accrued payroll |
|
3,506 |
|
|
|
8,224 |
|
Health plan settlements payable |
|
34,992 |
|
|
|
13,608 |
|
Claims payable |
|
178,009 |
|
|
|
151,207 |
|
Premium deficiency reserve |
|
13,670 |
|
|
|
26,375 |
|
Accrued interest |
|
23,648 |
|
|
|
14,061 |
|
TOTAL CURRENT LIABILITIES |
|
299,372 |
|
|
|
241,664 |
|
Operating lease liability |
|
13,622 |
|
|
|
11,516 |
|
Warrant liabilities |
|
1,085 |
|
|
|
1,517 |
|
Contingent consideration |
|
4,907 |
|
|
|
4,794 |
|
Long-term debt, net |
|
108,319 |
|
|
|
94,421 |
|
TOTAL LIABILITIES (1) |
|
427,305 |
|
|
|
353,912 |
|
COMMITMENTS AND CONTINGENCIES (Note 16 and Note 20) |
|
|
|
||||
MEZZANINE EQUITY: |
|
|
|
||||
Redeemable non-controlling interest |
|
291,532 |
|
|
|
516,805 |
|
STOCKHOLDERS’ EQUITY: |
|
|
|
||||
Class A common stock, |
|
12 |
|
|
|
4 |
|
Class V common stock, |
|
20 |
|
|
|
20 |
|
Additional paid in capital |
|
509,442 |
|
|
|
315,375 |
|
Accumulated deficit |
|
(367,344 |
) |
|
|
(309,545 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
142,130 |
|
|
|
5,854 |
|
TOTAL LIABILITIES, MEZZANINE EQUITY, and STOCKHOLDERS’ EQUITY |
$ |
860,967 |
|
|
$ |
876,571 |
|
____________________ |
||
(1) |
The Company’s consolidated balance sheets include the assets and liabilities of its consolidated variable interest entities (“VIEs”). As discussed in Note 22: Variable Interest Entities, P3 LLC is itself a VIE. P3 LLC represents substantially all the assets and liabilities of the Company. As a result, the language and numbers below refer only to VIEs held at the P3 LLC level. The consolidated balance sheets include total assets that can be used only to settle obligations of P3 LLC’s consolidated VIEs totaling |
P3 HEALTH PARTNERS INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
OPERATING REVENUE: |
|
|
|
|
|
|
|
||||||||
Capitated revenue |
$ |
342,836 |
|
|
$ |
254,025 |
|
|
$ |
1,252,309 |
|
|
$ |
1,034,800 |
|
Other patient service revenue |
|
4,025 |
|
|
|
4,188 |
|
|
|
14,066 |
|
|
|
14,671 |
|
TOTAL OPERATING REVENUE |
|
346,861 |
|
|
|
258,213 |
|
|
|
1,266,375 |
|
|
|
1,049,471 |
|
OPERATING EXPENSE: |
|
|
|
|
|
|
|
||||||||
Medical expense |
|
367,679 |
|
|
|
269,178 |
|
|
|
1,234,740 |
|
|
|
1,057,224 |
|
Premium deficiency reserve |
|
(3,344 |
) |
|
|
(1,345 |
) |
|
|
(12,705 |
) |
|
|
(11,461 |
) |
Corporate, general and administrative expense |
|
24,431 |
|
|
|
39,724 |
|
|
|
122,362 |
|
|
|
157,284 |
|
Sales and marketing expense |
|
721 |
|
|
|
1,705 |
|
|
|
3,233 |
|
|
|
5,096 |
|
Depreciation and amortization |
|
21,634 |
|
|
|
22,002 |
|
|
|
86,675 |
|
|
|
87,289 |
|
Goodwill impairment |
|
— |
|
|
|
463,496 |
|
|
|
— |
|
|
|
1,314,952 |
|
TOTAL OPERATING EXPENSE |
|
411,121 |
|
|
|
794,760 |
|
|
|
1,434,305 |
|
|
|
2,610,384 |
|
OPERATING LOSS |
|
(64,260 |
) |
|
|
(536,547 |
) |
|
|
(167,930 |
) |
|
|
(1,560,913 |
) |
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
(4,046 |
) |
|
|
(2,986 |
) |
|
|
(15,985 |
) |
|
|
(11,404 |
) |
Mark-to-market of stock warrants |
|
760 |
|
|
|
6,479 |
|
|
|
433 |
|
|
|
9,865 |
|
Other |
|
206 |
|
|
|
2,584 |
|
|
|
(249 |
) |
|
|
2,757 |
|
TOTAL OTHER (EXPENSE) INCOME |
|
(3,080 |
) |
|
|
6,077 |
|
|
|
(15,801 |
) |
|
|
1,218 |
|
LOSS BEFORE INCOME TAXES |
|
(67,340 |
) |
|
|
(530,470 |
) |
|
|
(183,731 |
) |
|
|
(1,559,695 |
) |
PROVISION FOR INCOME TAXES |
|
(1,767 |
) |
|
|
(1,862 |
) |
|
|
(2,695 |
) |
|
|
(1,862 |
) |
NET LOSS |
|
(69,107 |
) |
|
|
(532,332 |
) |
|
|
(186,426 |
) |
|
|
(1,561,557 |
) |
LESS: NET LOSS ATTRIBUTABLE TO REDEEMABLE NON-CONTROLLING INTEREST |
|
(43,645 |
) |
|
|
(438,305 |
) |
|
|
(128,653 |
) |
|
|
(1,291,430 |
) |
NET LOSS ATTRIBUTABLE TO CONTROLLING INTEREST |
$ |
(25,462 |
) |
|
$ |
(94,027 |
) |
|
$ |
(57,773 |
) |
|
$ |
(270,127 |
) |
|
|
|
|
|
|
|
|
||||||||
NET LOSS PER SHARE (Note 15): |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.22 |
) |
|
$ |
(2.26 |
) |
|
$ |
(0.61 |
) |
|
$ |
(6.50 |
) |
Diluted |
$ |
(0.22 |
) |
|
$ |
(2.26 |
) |
|
$ |
(0.63 |
) |
|
$ |
(6.50 |
) |
|
|
|
|
|
|
|
|
||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (Note 15): |
|
|
|
|
|
|
|
||||||||
Basic |
|
115,303 |
|
|
|
41,579 |
|
|
|
94,889 |
|
|
|
41,579 |
|
Diluted |
|
115,303 |
|
|
|
41,579 |
|
|
|
294,590 |
|
|
|
41,579 |
|
P3 HEALTH PARTNERS INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
|||||||
|
Year Ended December 31, |
||||||
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
||||
Net loss |
$ |
(186,426 |
) |
|
$ |
(1,561,557 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization |
|
86,675 |
|
|
|
87,289 |
|
Equity-based compensation |
|
5,979 |
|
|
|
19,404 |
|
Goodwill impairment |
|
— |
|
|
|
1,314,952 |
|
Amortization of original issue discount and debt issuance costs |
|
472 |
|
|
|
— |
|
Accretion of contingent consideration |
|
113 |
|
|
|
400 |
|
Mark-to-market adjustment of stock warrants |
|
(433 |
) |
|
|
(9,865 |
) |
Premium deficiency reserve |
|
(12,705 |
) |
|
|
(11,461 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Health plan receivable |
|
(46,555 |
) |
|
|
(21,841 |
) |
Clinic fees, insurance, and other receivable |
|
4,560 |
|
|
|
(5,338 |
) |
Prepaid expenses and other current assets |
|
(1,243 |
) |
|
|
4,266 |
|
Other long-term assets |
|
(58 |
) |
|
|
100 |
|
Accounts payable, accrued expenses, and other current liabilities |
|
15,988 |
|
|
|
6,082 |
|
Accrued payroll |
|
282 |
|
|
|
1,920 |
|
Health plan settlements payable |
|
21,384 |
|
|
|
(8,941 |
) |
Claims payable |
|
26,802 |
|
|
|
49,249 |
|
Accrued interest |
|
9,587 |
|
|
|
5,290 |
|
Operating lease liability |
|
(450 |
) |
|
|
4,032 |
|
Net cash used in operating activities |
|
(76,028 |
) |
|
|
(126,019 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
||||
Purchases of property and equipment |
|
(1,827 |
) |
|
|
(2,233 |
) |
Acquisitions, net of cash acquired |
|
— |
|
|
|
(5,500 |
) |
Net cash used in investing activities |
|
(1,827 |
) |
|
|
(7,733 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
||||
Proceeds from long-term debt, net of original issue discount |
|
14,101 |
|
|
|
15,000 |
|
Payment of debt issuance costs |
|
(173 |
) |
|
|
— |
|
Proceeds from private placement offering, net of offering costs paid |
|
86,595 |
|
|
|
— |
|
Deferred offering costs paid |
|
(175 |
) |
|
|
— |
|
Payment of tax withholdings upon settlement of restricted stock unit awards |
|
(16 |
) |
|
|
— |
|
Repayment of short-term and long-term debt |
|
— |
|
|
|
(3,625 |
) |
Net cash provided by financing activities |
|
100,332 |
|
|
|
11,375 |
|
Net change in cash and restricted cash |
|
22,477 |
|
|
|
(122,377 |
) |
Cash and restricted cash at beginning of year |
|
18,457 |
|
|
|
140,834 |
|
Cash and restricted cash at end of year |
$ |
40,934 |
|
|
$ |
18,457 |
|
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA LOSS (in thousands, except PMPM) (unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net loss |
$ |
(69,107 |
) |
|
$ |
(532,332 |
) |
|
$ |
(186,426 |
) |
|
$ |
(1,561,557 |
) |
Interest expense, net |
|
4,046 |
|
|
|
2,986 |
|
|
|
15,985 |
|
|
|
11,404 |
|
Depreciation and amortization |
|
21,634 |
|
|
|
22,002 |
|
|
|
86,675 |
|
|
|
87,289 |
|
Provision for income taxes |
|
1,767 |
|
|
|
1,862 |
|
|
|
2,695 |
|
|
|
1,862 |
|
Mark-to-market of stock warrants |
|
(760 |
) |
|
|
(6,479 |
) |
|
|
(433 |
) |
|
|
(9,865 |
) |
Premium deficiency reserve |
|
(3,344 |
) |
|
|
(1,345 |
) |
|
|
(12,705 |
) |
|
|
(11,461 |
) |
Equity-based compensation |
|
1,720 |
|
|
|
2,193 |
|
|
|
5,979 |
|
|
|
19,404 |
|
Transaction and other related costs(1) |
|
— |
|
|
|
3,094 |
|
|
|
70 |
|
|
|
14,050 |
|
Other(2) |
|
(212 |
) |
|
|
4,509 |
|
|
|
2,656 |
|
|
|
6,008 |
|
Goodwill impairment |
|
— |
|
|
|
463,496 |
|
|
|
— |
|
|
|
1,314,952 |
|
Adjusted EBITDA loss |
$ |
(44,256 |
) |
|
$ |
(40,014 |
) |
|
$ |
(85,504 |
) |
|
$ |
(127,914 |
) |
Adjusted EBITDA loss PMPM |
$ |
(138 |
) |
|
$ |
(133 |
) |
|
$ |
(68 |
) |
|
$ |
(107 |
) |
_____________________ |
||
(1) |
Transaction and other related costs during the year ended December 31, 2023 consisted of legal fees incurred related to acquisition-related litigation and during the year ended December 31, 2022 consisted of accounting, legal, and advisory fees related to transactions that were completed, pending, or abandoned. |
|
(2) |
Other during the year ended December 31, 2023 consisted of (i) interest income offset by (ii) cybersecurity incident loss, (iii) restructuring and other charges, including severance and benefits paid to employees pursuant to workforce reduction plans, (iv) the disposition of our |
MEDICAL MARGIN (in thousands, except PMPM) (unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Capitated revenue |
$ |
342,836 |
|
|
$ |
254,025 |
|
|
$ |
1,252,309 |
|
|
$ |
1,034,800 |
|
Less: medical claims expenses |
|
(333,761 |
) |
|
|
(247,458 |
) |
|
|
(1,117,258 |
) |
|
|
(972,725 |
) |
Medical margin |
$ |
9,075 |
|
|
$ |
6,567 |
|
|
$ |
135,051 |
|
|
$ |
62,075 |
|
Medical margin PMPM |
$ |
28 |
|
|
$ |
22 |
|
|
$ |
108 |
|
|
$ |
52 |
|
RECONCILIATION OF GROSS PROFIT TO MEDICAL MARGIN (in thousands) (unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Gross profit(1) |
$ |
(20,818 |
) |
|
$ |
(10,965 |
) |
|
$ |
31,635 |
|
|
$ |
(7,753 |
) |
Other patient service revenue |
|
(4,025 |
) |
|
|
(4,188 |
) |
|
|
(14,066 |
) |
|
|
(14,671 |
) |
Other medical expense |
|
33,918 |
|
|
|
21,720 |
|
|
|
117,482 |
|
|
|
84,499 |
|
Medical margin |
$ |
9,075 |
|
|
$ |
6,567 |
|
|
$ |
135,051 |
|
|
$ |
62,075 |
|
_____________________ |
||
(1) |
Effective for the quarter ended June 30, 2023, we modified the method by which we reconcile medical margin. Previously, we reconciled medical margin to operating loss as the most directly comparable measure calculated in accordance with GAAP. In the current period and on a go-forward basis we will reconcile to gross profit as we have determined that gross profit is the most directly comparable GAAP measure. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240328679531/en/
Ryan Halsted
Investor Relations
Gilmartin Group
ir@p3hp.org
Source: P3 Health Partners Inc.
FAQ
What was P3 Health Partners Inc.'s revenue growth in 2023?
What are the key financial results for P3 Health Partners Inc. in Q4 2023?
What is the company's outlook for 2024?
How did P3 Health Partners Inc.'s full-year 2023 results compare to the previous year?