Cano Health (CANOQ) 13 Aug 212021 Q2 Earnings call transcript

Good morning, and welcome to Cano Health Second Quarter 2021 Earnings Call. Currently, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Today's call will be approximately 60 minutes only. Please be advised that today's conference is being recorded. Dr. are call today's Hosting Marlow Hernandez, Koppy, Officer; Brian Chief Chairman Financial Officer. and Chief Executive and Co-Founder, The press section are available website. Cano related on other Health the release, webcast Investor Relations of Health's and Cano link materials statements management's expectations to reflect various The XXXX, uncertainties and are time, views made August at as XXth, are assumptions. and and risks, this subject of

today these for forward As forward XXA of Harbor are currently on years. known financial performance, and Exchange. forward Securities that differ regarding factors to future a events fiscal the the be to not the reminder, this statements contained provisions future actual us XXXX could Act of Securities looking results our looking call statements Section the XXE best guidance events based of covered caution contains We Safe and materially. forward our or intend looking looking statements you Section the that in XXXX We including by reflect and statements for and as judgment

release our turn Marlow press the today's please section ahead. and the measures. and Health, that, we The discuss are A non-revenue non-GAAP go results with over Hernandez, reconciliation the GAAP CEO to on Chairman provided call, of non-GAAP in Relations Co-Founder, website. Investor call financial and of not I'll GAAP. is With measures discuss today Dr. the will also of financial we During in prepared accordance will Cano

very about well and very quarter taken and fellas, again, you've I'm our EBITDA welcome for our and I quarter as we a Health, operational hear of exciting proud time revenue progress you, had to report continued as plans that Thank Cano growth. is and expansion. growth to to adjusted growth the once call. strong for second a earnings our everyone time This appreciate

as building social and its started continue for through that financial company patients primary transformational care care company, centers. and to United both platform, largest in population stakeholders. buying has a with through health will in physical made countries and core, unique with a the XXXX, its results out has delivered which Cano our its managed States. single one markets. managing attractive growth of sophisticated differentiated the some has in market consistently technological of Health We're Center, make Our assets we're Medical largest since medical model and today operators grow and founding and At a impacts most we leadership the We

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timely New we're in with pandemic. this service that, which several worked Jersey New August, to and approximately in result in-house a COVID transaction, four have have I'm and XXXX, particularly XX to specialty deployed during we cash now and Florida, York, to as providers states, also acquire behavioral managing million healthcare affiliates our in to $XXX proud to provide We infrastructure, $XX of New medical report of directly practices these years equity and million the the Mexico. patients, is excited for

to $XX $X Medicare adjusted in $XX,XXX recognize the million revenue medical and XXXX service adjusted we For $XXX for XXXX, Cano capitated of capitated and recognize expect affiliates. affiliates these medical fee million expect increase and practices expect and other these members. to XXXX, affiliates million practices In of of practices from we and EBITDA success and members, served million EBITDA in revenue these patients approximately and in approximately of $XX into The by revenue to is due converting in Health value-based projected medical EBITDA.

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result press release XXXX. this above, we increasing the XXXX of guidance outlined positive also morning's are for a As events that our announced we and

and Brian listening want reasons, Koppy, built since begins, just regularly themselves the profitable an accelerating I employees our of introduce Officer, markets, will invaluable with did Cano considerable all growth, the hard all achieve professionals, thank work employees he I'm the provide manage strategy country. strong to this to our by couple Health have public and of us years company of himself before It's Brian Chief have that, happy But We who impossible. and made who many With density for an proven quarter. home Health our there Cano joined and extraordinary skilled, before been in scale family. across the the integral delivering shortly. details Brian builds for Financial who member our our committed fueling

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our that healthy numbers but to and growth We also high demonstrated our growth membership to our management. second the our In only our adjusted not line business now Turning continues quarter, expectations. this the we've top meet results. produced cost operational strategy, core core and strength quarter, of showcasing and EBITDA business

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XXX providers membership XXth, X,XXX Looking our medical forma XXX,XXX, ready the have and and over is June employed we pro membership now as post of serve DMC approximately our or at members. with acquisition affiliate centers to

million XXX% our year-over-year, $XX second Medicaid of by primarily and year-over-year strong morning press was membership included $XXX. second lower about month capitated revenue membership lower update and the $XXX revenue our enrollment to operations. Total revenue due investor revenue Projecting is acquired overall in was or by revenue PMPM the DCE $XXX $XXX is lesser second membership in slides DMC to cost member a and Medicaid runs of PMPM the and the COVID-XX. revenue quarter approximately at was million, quarter PMPM its expansion. was our revenue quarter than higher posted Rico million release the initially driven and an driven electric million inclusion who PMPM a revenue to compared is growth The includes related $XX approximately makes forward. in the was of and important higher for that quarter a book to details to in up XX% available medical the XXXX Medicaid procedure expect therefore XX.X%, current reflects of $X,XXX, of capitated note our medical increase going Medicare It in by website. million. PMPM other acquisition ratio in Medicaid which The costs PMPM Additional pediatric expense was DCE improvements up our extent per this outlook. operational on Medicare for approximately will claims line utilization XXXX. our we Puerto Total business of to our members, The per was by XX.X% primarily to higher have first

the half ratio was claims For XX.X%. XXXX, of first the expense medical

For the approximately projecting a ratio medical claims we of full expense year XXXX, XX%. are

member to of maintain missions We the stable stable the management, management current first We've a high leverages to XX% and vaccinesand second members, in normal medical as medical seasonality. second Comprehensive compared expect lower surge, protection also integrated the the claims programs, medical claims into which to protocols adding COVID-XX of as a population are level rates as of half. Cano is for expectations hospital members as care vaccination about of realized lower platform, health we which half primarily to which Medicare for half typically expense DCE these our which Health against vaccinated, surge expect they well ratio ongoing CanoPanorama. analytics treatment are costs due per the

expense. Moving on direct patient to

an our was XXX million, of the was ratio general to driven patient For improves to $XX the points $X.X administrative volume million versus which expense ratio $XX XX.X%. increase the quarter XXXX, were due prior and basis points $XX quarter stock-based quarter. $XX quarter. year continued business second second The of recorded compensation second The increase SG&A our Overall, to expenses direct encouraged million. support the the states. XXX improve Company to million increase for direct basis generally growth. Selling, XX.X%. of our of expense of for expansion increase was Overall other million an The growth our and expense

the a $XX million. Adjusted be stock-based quarter compensation our $XX we for second of of $XX EBITDA a adjusted full quarter. EBITDA Interest for compared the increase approximately million X.X%. was second million expect the compared XXXX XXXX, as expense quarter to XX% quarter as $XX $X second increase. expense second $XX represent to year prior And of for a of XXXX, was For million margin to million result, an the year million for the to XXXX quarter

For expect year to full XXXX, million. expense the approximately we interest be $XX

Class XXth. shares that registration also as result XXX to are would this shares outstanding for a S-X outstanding, authorize morning on shares note impact a I Regarding employees' filing. there filed as of shares Class million resale. of combined of we is required about B count June A this no and share There

due $XXX million and the our second million end of $XXX and includes with the line our and and Now, cash at the payments turn $XX second sellers. to term let cash liquidity. quarter We was revolving debt, about of capital me ended leases under to flow available million Debt credit. in quarter

July $XXX acquisitions. six of deployed our we Xnd, and DMC used an XXth, approximately was cash additional $XXX For increase million. $XX months of ending used an million, and subsequently and million we and operating on On the June $XX cash for closed acquisition million $XXX activities borrowed million,

model approximately and deployed the $XXX July transactions throughout million addition, August, we In discussed. on

EBITDA pro the of and our X.X. acquisitions our result the net to a forma after ratio forma As for is adjusted end net second debt quarter, is debt the total million $XXX pro

with for of $XX operating the used novo $XX range $XX be cash million expect full to in and the year We for million de XXXX in approximately maintenance expenditures million CapEx to activities XXXX.

overtime. And cash XXXX, flow for we positive profitable continues, that the existing of and the quarter to support we full generate continue expect our positive as allow of to fourth expect However, will strength cash to year operations us be flows the in of recent and deliver the growth growth our acquisitions XXXX.

Now guidance. our turning to updated

For of to XXXX, XXX,XXX, XXX,XXX the approximately XXX,XXX. to increase we range be expect an membership from prior

approximately approximately $X.X the increase approximately $XXX For of billion, the of an adjusted reflecting of million. billion. from prior Adjusted XXX guidance is EBITDA revenue to be $X.X prior EBITDA projected projected now revenue, is XXXX be an increase million, guidance to

Jersey, novo year-end, half on centers. the remain third have we By the Mexico, states announced quarter, to Nevada, operational we completed. plus pace open in include third XXXX, New end be states two the that the will than XX additional eight XX to The expect to medical York, Texas, end to by be de expect By of For Puerto more states of Rico. quarter. and we Florida, New New

to Turning guidance. XXXX

for $XXX reflecting of strategy. $X.X de de medical an each. XX to in open of approximately will in membership, mentioned, million of prior each expected be we projected to billion, of increase Revenue memberships. range guidance increase or prior membership is $X.X to an approximately to Adjusted novo to In states an guidance million, billion million the priority now guidance from to $X.X expected billion. the the our be in centers we the million $XXX $X.X be on increase The are XXX,XXX of $XXX we execute $X.X medical XXXX million. centers novo is capital as approximately EBITDA to to I from being between for to of expenditures market approximately $XXX,XXX, just For expect the XX XXXX density approximately expect XXX,XXX, XXX,XXX XXXX, our

strategy update July be adjusted two-thirds will additional revenue the effectiveness of centers outside to an expected In the be second Company manage on of the to XXXX. allows or demonstrate majority medical avenues accretive we conclusion, use half available the The most individually with efficient in which X, growth to in is number growth nova us the least Today's de Florida, operator time that, believe impact acquisitions, consistent and be greatest guidance disclosed risk, to of and growth of which these building, multiple Additionally, and Utilizing any the on whole completed be opportunities and leadership. EBITDA. expects ensures recent capital, XXXX, and to guidance of amount leverage I'll combination, expected the a events of in at results practices. with market ask approximately does the to shortest call of the the patients of which With through buying avenues, profitable to membership guidance open the the guidance. generate from with amount tax managing of to questions. not the would these your depending in include that previous

the comes Suisse. with [Operator line question Jailendra Your first Singh Instructions] Credit from

out expectations was congratulations you for public Thank half. be about seeing from you strength on colors around to trends maybe improve cost you expectations more second second peak not highlighting not why your of could likely comfort half some peers maybe are bit and see gives COVID bad being get are ex-DC. understand trenches but half confidence your better. if with as being are as I projections around little your before MLR your for What COVID, to half mean, second things or likely the half. lag you worse get we that and first highlight they are what like that so your actually give I everyone with to and morning a some about us for cost but second I'm that that then earning itself, and been on getting of all good squeeze flush have confidence some wondering the members all technology you're little I call unlikely that a bit, second given reporting? it a as blindsided? should a company. just completely If house and on comfort to that market peers how Thanks in the is itself, your think you

Yes.

in medical your we Marlow. We've which is COVID for But question. on in I care and difference terms half are our Florida rest Thanks to a hospitalizations, an certainly on cited website. Jailendra, seeing primary cases providers. in of So, of minority want certainly supplement significant for deck, statistics other And claims increase seen outcomes, those to and the to this many year. compared in does progression of the point first a expense, a that the increase of that account clinical hospitalizations, we the are everyone and

For example, served the X,XXX, to at of peak have a are levels. XX.X in average compared were even record we of And day it's cases year. XX, July X,XXX of we X.X X.X Florida, rather of at peak hospitalizations our seven per in though our than per last when

nearly So, the record is making Cano we're Florida peaks levels. significantly off from while daily

plans through risk intervene then care study. And and I American patient get data, this read diagnoses, the results in also doctor those lab point patient personalized see joins and lobby, care to those But are when remarks modify that from the time referrals, In health our and plus all CanoPanorama. us, stable a addition those to way, would in bridges that our a in predict different can you of hundreds working support tools our employ early you disease. my protocols using during systematic the and the total treatments, of and how going that, Journal modules, we have plan, have those Managed we to very prevent XX been. in a start sophisticated to is that it they population concert, algorithms, with the platform to that then to are published help emissions referenced stratification sees I And such Care

publish and year track results maintaining or managing as which show MLR. We in And part me are have broader medical have that our also not reductions of mortality during total while with full-year confident record had missions we expense other metrics. COVID MLR pull a for financial unprecedented say they see a levers we how supplement and great materials, year. we we is our we feel have we quality Therefore, X,XXX this there, can admission, been. COVID. in remarkably result, leading XX-months next and in four that they're the business. of those increasing during So, and graph you while we clinical have APCs, and have stable the times, they COVID ratio our highly the are multiple can And and years, per claims industry a correlated, while let And past admissions factor, outlook managing for living challenging, just and as is more for years,

our or and that also our we Let you outlook by strong 'XX There me as COVID outlook, wellness components multiple gives amount of able us an confident offer we highly of months, in. have down business, ability in other to like past and vaccinated DCE feel report, Brian we published and medical inconsistently. a public associates coming our including now rates, which and that fully quality a us gives programs our of in the the That integrated platform, are plugged well. patients seen our each levers counter point the confident of the of last member have which what outlook. as patients claims COVID vaccine the are our are feel members about their diversification, after their factors about 'XX XX% vaccination we in on vaccinated significantly is density, rapidly to XX% strength the of six our our And and to of you've why getting health care model. day access into our our And management the mentioned, our are our the or with SG&A every the alongside decreases considerably number

That's helpful, color. really

Just your off and data is about been try is real that your if to like show members? or one takes time and hospitalized. somebody something point quick how I've like you like how clarification, how you Do my members real information to blindsided mean, immediate about getting time understand your my part, up get alert that time

that and the our daily we're real I'm that a care comes a it asked August is It's as management the get It time. is Xth, Effectively data that that us you begin. questions, processes on we the the supplement glad Therefore, registered you hits immediate. so basis. patient data of to showing ER, minute Jailendra. on

variables In daily fact, through different on COVID XXX basis over for a we CanoPanorama. track alone

gives visibility and that a confidence. of great and CanoPanorama deal you're at seeing So, work us

as trends And color DCE on but let's maybe you up as XXXX about and assumptions then, can underlying cost guide XXXX testing understanding book? any your for MLR you book most make year cost on or around maybe detail, the well next I outlook versus about talked you might for MA as get both provide well,

thanks. Yes,

have As overall, the guidance, revenue increase you which EBITDA and both we in we our know, EBITDA we've adjusted for with outlook are embedded and XXXX today's an our provided business, margin adjusted confident in announcement.

more components As able share be I'll individual you. to to financial of we more details provide XXXX color back will to on develop, but the outlook, just that return

are XXXX, of than the seeing with the which our For includes projected in higher confident ratio XX.X% medical full And membership, which expense runs we Medicare the the MLR in a said year, we for line Advantage. half feel traditional of is XX% at in DCE as year. the we first approximately the

line bottom the we both that feel about we in as turn good real So, relative and MLR. of would which assume kind normalcy the some into line top projection, page XXXX,

acquired value lives these it's -- understand right, but there? and assuming comfort help your one convert higher you in on previously And year. service August, states lack I'm practices in and experience value there, four care. comfort Maybe to then us confidence which this, next of around the Clearly, medical next the members based plan MLR that through you had comfort these based transitioning I to unmanaged given the discuss uncertainty somewhat people

appreciate question. no, I the Yes,

global to confidence. on we DCE And us of And And then data or have and these Even the contracts not cap, we'd MA would members we those cap for to confidence. So have us medical while that for those of 'XX have at capitated business. data still give do be or comfort way addition both data are historical projecting and great fee the within one those the for can us 'XX margins affiliates. other, service in straight give practice us give contracts, numbers can even book our numbers.

we management for and just I providers mind. performance We with Brian. is great affiliates management businesses they're about buy These going to keep how real in we deliver teams. feel and this good teams, are superior Jailendra, Yes, would good with that acquiring come XXXX.

last big One here. question picture

the What which markets reopen entering. experiencing markets confidence handy you're are other level? basis? regular And you your of spend on has regular Florida to be of to ability led the other updates some replicate as your think type Maybe to top concerns, One time How markets company's shares, a is new plan around there. in just, and centers that as success Florida you on your you on do well? in provide

question. Yes, that take I'll

go we But of region. the other novo we and in great build buy our the example, we membership, because revenue expect. centers, strategy. do And First, replicating specifics, been hence, like typical not while our said, seen markets, single Florida to for we margins manage in have We announcing not Rico, Texas deploy as in have I use in as model we states. as when individual to will or very a economics a provide Puerto for We've manage of avenue and new that, very budgets. our build, isolation numbers successful outside we our do deal from and and a de do do starts various already growth you we're be Nevada successful and confidence

with key into we of in it we've always growth platform updates. in by of me dozens the amount most in that the costs our that proven increase costs. integrate historically And market do of provide care will follows. And markets, As acquired we assets, quality, and quality measurably those and members, we deal and joining point team have sustainable But let have one regions people long us also the for everywhere of access, only can you we least the continuing are that, Brian that of been everything of Panorama great the fully dense And is as and And so underserved, there to reducing some else count is our expand eligible, yes, the mentioned, few amount acquired to key. ability across on profits And we're that could to that buying chronically the companies have shortest pockets the of XX years in results Particularly we that building, growing and of capital be dual which do and of eligible And amount most is question risk? do avenue track managing. efficient the the Medicare just as great the wellness and to three geography country. taken in ensures out. time a lives as What use able record, is. while that we manage single that. multiyear, key multi ways ourselves ask leadership

of question line next Raskin the comes from with Research. Your Josh Nephron

to, quick the four I one booking expenses. question hospital from but Jailendra, three Just know follow-up whose or the of don't

how So I sense of that? but understand for you DRG when a avenue, across actual better that's color real time. on have do But get the you

Josh. question, great one Yes,

real type referrals, system, the provide CPT of real systems visits, an cost. doesn't time. We're estimate which time our that on have very permission historical accurately very based average change based of able of to is We And information all actually it in on much code, number yesterday admissions, on many basis. yes, admission to and our ICD per we're ER that getting in sophisticated on literally accruals,

new very like to then Of disease that we project. allows course, we algorithms new get COVID accurately and us states adjust such data from

to you Okay, or got get coming a on little quarters. that curious demand. It's a reopens. I'm be this I'll seems risk the And I a I though to your curious didn't hear think adjusters, there. view industry be then mentioned pent-up frame as system which more utilization sort anything view if about from you headwind back. a then, And of you. common non-COVID

Well, same the is answer to both actually the questions.

have fact as business with of actually majority shortest as that when acuity them, had our of in Florida. the that that as of the stay-at-home gives visits during know. know, parts and other revenues your saw have, our the you've as document the you number demand It country, influenced have Florida some increased which and the to to consistency. compared including well. We one and you are the or cover documentation during procedures, the to by half conditions of remarkable stay-at-home see got pent-up as data APCs, the able the quickly extent of orders accuracy confidence significant of you COVID, second relatively in costs, we patients combined the year. second orders, on in then up part our that can of the And you the you we we meet you're as to by raise elective ensures procedures see last us that necessary our and opened published to Florida that,

the of patients So, albeit Florida are early earlier rapidly in then given where we're saw that we expanding given our that and that's particularly patients outside. more stages majority and opened

But some forecast XXXX. those from Texas, as being material our a modest COVID see I and of that's also not have baked also full headwind. our procedures, did relatively and We early. into admissions but a elective challenging we impact expect which into do mentioned, We open year COVID and is

EBITDA, just the I quick then acquisitions. coming you've on know ask could the anticipated And is one acquisitions, guidance. you. How Got the EBITDA much and of guidance more from if one on I

So question the I you your that sort Did have guidance previously? bucket of was in the real coming are from or impact acquisitions the on filling guess just is. acquisitions any

Yes. No, questions. great

three plan. when of we put So public, projections, prepared year November the for to out that we laid year our year go last we as three pipe,

and our didn't beaten since included we three one our those because times guidance acquisitions that, year raises that have it guidance four removed outlook. and have XXXX, of at from in XXXX XXXX We in have we've raised time, projections, is

a during set out we those of have projections and single solid now our do But, require acquisitions in did year up only some 'XX. 'XX. and goals of material our But confident year acquisition. without we this we acquisitions you, for not in our a and exceeding XX are we rock does for as initial and of and achieved Mind not that our organic course, meeting 'XX November So, for growth acquisitions this year. exceeded result this last year,

be we do do directly accretive we if differentiator us. growth to that Now, we to will is a continue have major our avenues, will those acquisitions, multiple guidance. for acquisitions, But

acquire if we the us that those directly add we're revenue, So, and X will EBITDA, see outlook to amount of you providing.

comes question Wolfe next Your Justin with Research. Lake from

of here. questions morning. Couple Good

First, that they you're what on quarter, DCE, little back and booking premium. you're a that the you million higher in talk XX how a talked second idea half -- and already what cost about some side the year? thinking about for the you on of you cost about the numbers Can MLR booked bit us having give

are great inappropriate a I position. we very food weak a we've question. mean, and Yes, taking Yes,

As wrap coming far talked, over as into performance. our we we overall to DCE time, model, they're their us improve them unmanaged, expect expect members, as our operating and them, into we

we we improve improve XXXX. that'll to into As at improvement that we in that MLR, should business you we initially is But start the, the going months, as members. so And performance certainly for that as that or to carry as our then And see over membership, six time. look Marlow see be, to XX% start. three mentioned, of

to you And business you've that see some kind with margin being this within? had margin a now of where Let's say, out? kind norm of would time expect Where next that at do settle that year? you

we this we've on a And CMS do point, Marlow, we question. as our DCE mentioned, as got forecasting, program. Brian see new of this prudent of growth. data approach the months is I appreciate But source at big take Justin, three very to a a

us, baking TAM, any will them health get And be in. it take fully and get membership, integrate we those DCE predictability tell can favorable. time For us, numbers from will some specific you new into pop for not very data like we about platform. it's that today. large are plugged I our cannot give to because effectively us We it any And is additional that number and until believe more we fully But profitability. what EBITDA a

So, stay tuned.

or in then that gave addition in additional to? talked of $XXX you in that about million early the guidance you July, and Was is acquisitions. prior Okay, that

we're we accretive thank our today. And question. through to from trying acquisitions great guidance a acquisitions understands time that's to acquisitions, as our The announced well. how and think that'll you, guidance, last fully everyone incremental we That's as forward be were excluded any upside make going sure

strong And opportunity. really new we those that's growth for so upside and mentioned, we XX,XXX it's as EBITDA convert onto as So, members or platform, XXXX, revenue all our

for us, 'XX you well there what could acquisition? give 'XX number, and 'XX but us on EBITDA as the Okay. tell contribution as you Is think this membership anything and revenue for 'XX incremental you from

for the both and its XXXX, release, XX Yes, then about it'll And revenue I'm convert we sure. sorry, $XXX XXXX. in XXXX the members, that's XX for today we And for million XXXX. our press built provided we that talked million of million as be In for updated into XXXX. guidance

you give as could well? EBITDA And there

this of of the XX year, balance Justin. we for million for million did, of expect and Yes, we that EBITDA XXXX. EBITDA It's adjusted X

you same think bit the costs. said just you around peers saw you seeing tell And elective any little if then Or specifically outpatient do timeframe, you a curious they in March market can I about talked are similar surgeries. What And I'm higher mentioned us specific about higher your something and there? anything talked April? cost lastly, clause? about

deck. supplemental most tell important have you It's I is you the a single when B variable, that of single that lump the part all specialists. there the together, well most you the B minority picture. What are cost hence the statistic, A them can of part medical And with is APT And as seen between important we're there's D, comfortable in but stability and claims versus procedure you pharmacy, expense just which get a is COVID it. we in outpatient while full nuancing claims medical variance the admissions. not have then and what it, we A, catch And up is probably

not exists, and feel answer material it as see comfortable for that it but booked have the headwind, this and we I numbers. our There confident short in the them do we're the We into about next numbers is mentioned. reasons for a year's

Your next question is a follow-up from Jailendra Singh with Credit Suisse.

spend Humana centers, you're next any centers How you on Humana if your from the own partnership. year this wondering some novo And at economics time traditional de your significantly many was focus? our different could year what Humana I of opening from centers?

Thank you, Jailendra.

So infrastructure. partner. a me let philosophy have say as Humana to leadership and value-based have share great we're very and our first proud They that

We Humana minority do It's have few program. or our this point, a this plan under of a on centers year. open lines relative we At half opening our seven, centers. more

supplementation XX do XX part of centers objectives density scale market our XX to our as consistent Medical opening growth year of entry we strategy. and year. we're know and And centers with this our we next it and speed, As see XX,

by centers we Humana I and as terms to other are I of and and non-Humana, exclusive centers, for take mean economics, that certainly the we business well, operated versus Humana payers Health Medicare see but are In Cano that owned centers those do economics Advantage, what other lines and Humana's similar the DCE mean, do of within centers.

in overwhelming those as beyond to as for benefit you slower members, managed that we from amounts must that the patients, is that you mentioned, United Cano so tell presents important rather continue want we will staggering in be growth, improving and one majority increasing they it The be health believe and Humana again, regardless our need growing see there have and in of optionality pairs, I do with partnership they the because we're fraud, them value abuse entire all whether that for performance, we all see embedded patient can to community. Aetna ask deserve. populations. pair it us a exceeding And payer all United, well patients we would all the care centers other is a promise than take of to something bit thus pair to particularly meaningfully But well partners. that our significantly Yet, serve and forth, to expectations, agnostic, challenge Centene as reach mortality, huge centers great through. have strong other so plan MA is that demand and who is to because and of in make that You as centers, go expectations. sure of that with Anthem opening And we and can payer and Anthem It's is all because if very we partners are we given statistics the that we our that a of minority give Humana and and you bit a have like waste them.

And there at further time, this questions. are no

you joining. All for right. Thank you. everybody Thank

Thank you.

does and conclude today's that conference. Ladies you for gentlemen, We thank participating.

You may now disconnect.