agilon health (AGL) 27 Feb 242023 Q4 Earnings call transcript

Good afternoon. I would like to welcome you all to Agilon Health Fourth Quarter 2023 Earnings Conference Call. My name is Brika, and I will be your moderator for today. [Operator Instructions]

I would now like to pass the conference over to your host, Matt Gillmor, Vice President of Investor Relations, to begin.

ahead. go please Matt, So

conduct Thank you, With our to call. we and Tim Good is our afternoon, will remarks, me prepared and following welcome Q&A CEO, session. Bensley, the our operator. a Steve CFO, Sell

to begin, These statements. to our forward-looking remarks you we and implied due assume business. may results with and statements. differ forward-looking to Before uncertainties filings. SEC no that any those remind may by stated statements obligation responses or questions that are uncertainties discussed risks associated like update to I'd our risks include Actual and materially note from our forward-looking in Please we

measures complete is consistent the with in SEC. financial these Additionally, the call results. believe remarks. Please non-GAAP the posted prepared financial is are will to helps certain understanding Steve results of release a and views measures note with Relations non-GAAP earnings management these A We investors be financial GAAP and better that most of reconciliation measures financial gain will our Investor slide more during and website discuss financial available our this Form measures. filed our providing to deck a we press their Tim in and X-K referencing measure our comparable that

that, with let And me turn Steve. things to over

the elements. us. call, I today's following for would On Good walk Matt. joining thank to you and Thanks, through you afternoon, like

our a for our performance update XXXX, class XXXX QX growth and on for results guidance finally, economics, XXXX. XXXX, the plan; update final updated progress and outlook action of member Our for an market unit our on our

provide in Advantage targeted we are the as impact into a focusing the early transition business, navigating industry the Agilon on on and of our steps get and our context. we as including the mitigate some actions Before period. environment reserves help evolving this outlined quarter, strengthening well significant through complex let taking to are me January. I Medicare

stronger continue While our are deliver partners. we and value as significant financial affecting demand PCP never negatively dynamics payers near-term our results, to our for patients, the been platform has to

business The reflected member quality performance to and NPS we remain model scores, are of over underlying economics, fundamentals positioned well long and member physician and the accelerate our in outcomes term. medium growth, intact,

Let's now the to turn quarter.

to medical margins Our the fourth and guidance of results XXXX the by provided million below costs guidance in from our to in midpoint of higher development previous revenue and $XX in for early our the million range we the fourth from was final January, This $XX periods. X were attributable quarter quarter January. by attributable the 'XX $XX factors. costs Relative to driven were driven million,

financial process payers from claims as than for such well additional estimate in XXXX. were largest First, members costs information in relatively Completed analysis our we as closing our our received February, of our including and data our complete this indicated medical higher data, that for seasonality as mid-February, previous which factors updated completed data. we data as census

have we this of and as information light the environment, our utilization close strengthened XXXX. in Second, new reserves dynamic we

given this scenarios, our in a the the carry assumptions factor lower completion compared to XXXX completion expect believe close at this the significantly of range and a to and estimates. is from reserve prudent The end environment forward. Our factors team developed high of used We XXXX. we are our reserved actual approach

'XX guide. the to Turning

adjusted lowered our guidance have the 'XX midpoint XXXX We EBITDA margin million negative also million $XX medical our $XXX million $XXX to midpoint. by guidance at and to the $XX lowered at million by

on action X.X% a the cost This prior the less of observed in is XXX the expectation. should and X.X% medical above XXXX. trend quarter not of approximately be that XXXX. And assumes medical we net revised our million our of $XX updated impact basis will 'XX items 'XX points cost shortfall and Our XXXX. strategic is our top trend in It X% a noted cost trend persist guidance to margin fourth seasonal guidance of assumes attributed the into gross

to Despite EBITDA. our higher our margin gains grow meaningful and in utilization XXXX medical XX% in assumption, we expect drive adjusted by

bids, As be I than XXXX. the period by and noted before, are post-COVID rising driven faster population and costs pent-up the XXXX Medicare challenging contemplated among industry CMS Advantage a benchmarks during senior and care are Agilon transition which planned may navigating demand. in Health

it's recognize few a think to do important We things.

adjust changes Medicare program is Advantage to short utilization. the First, has a repricing cycle, in designed and relatively to

to the adjust reflect health our will bids benchmarks the recapture to expect repricing XX XX next expect financial cycle benefits we benefit CMS rise future and in many utilization plan partners we and to months, will Over our margins. in will this periods. reset performance of

resources XXXX significant with performance we Second, and in outlook, moderation and performance. our $XXX XXXX with sheet short-term support we have have Even to approximately million balance a further the strong to growth ongoing cash actions investments. our drive in and

Now to presentation in unit of on a slide as our outlined business our the refreshed view Investor economics the on Relations website.

be I'll Slides the X referencing XX through of deck. commentary, this For

cohorts. have shared, member ongoing member maturation consistently driven model of we and and our As by business growth is the market

macro are economics from clearly the there very unit in data. environment takeaways some the XXXX, impacted has While important overall our

despite XX, that at $XXX performance environment, roughly First, members per Page attractive levels XXXX the our on month. medical on XXXX we came show the utilization margin per member our XXXX, of to you platform sustained negative as from

approximately our In off XXXX utilization $XX and month. our per member member higher starts the cohort, shows of margin are of showing impact XXXX at progression. our per comparison, cohorts and membership By representing member positive XXXX X/X

member Page what about PCP repeatedly on XX, we have talked margin as Second, and you and show impact our growth its we on progression.

teens take of XX% X the have to to risk month data not the out is per same-store is separating with shows medical mid- mature due upper seen classes they platform of time annual growth to reduction between and new margin cost rates new to our $XX adjustment of markets growth medical What earliest improve. the $X.XX This are We dilution. on cohorts. market from XX% that member on levers performance to impact as per our compounded also have dissimilar management the impact that the our market a as in member

same-store strong created growth plan our it our earliest markets. fully data with opportunity control. drive and differently, an performance well their to is 'XX performance patients aligns embedded on Said action doctors as our within has focus This new in to of those our senior markets

its intact, results. performance Pivoting January. growing Finally, and you a early that in action focus environment we on to more our of with discussed narrowed measured the macro impact markets, plan our growing our growth and algorithm remains margins and growing albeit medical members, with given

our to us generation. We continue against to our cash plan, flow path which will and profitability to make progress position accelerate

leveraging As in a join two, includes mature doctors, efficiency. markets; four, care relationships; our the our following strong plan and three, reminder, X our boosting one, the platform gaps data addressing primary payer for elements: support our operating expanding visibility,

to Today, brief a progress. you provide update our on I wanted

PCP education. Let's with start onboarding and

training As have a but care reminder, we primary veteran process practices. we new the provide provided implementation joining structured training historically with new physicians to same our doctors not to groups, during

strong created partnerships. the in platform earliest outlined cohort understanding in As in data, has doctors and these released our variation newly our growth physicians joining same-store markets, in our with new the performance

the doctors our in deploy half track on targeted training to during of the XX% to of are first markets this mature We XXXX.

these year, will back program expect performance beyond. We the in BOI efforts improve the clinical enrollment our financial half and performance our in of and supporting XXXX

Next, payer strategy.

our engagement the been and encouraged with with of We dialogue payer level weeks. have in recent partners

represent cost typically network of large offer source benefits We capacity As on our now Agilon standpoint, From and groups many benefit a better comprehensive to was the visibility within track and this costs supplemental know, of of primary we XXXX. partners to forecast will understand community. of and national payers. partner you that enable regional for volatility of data in consistent we from independent believe these detailed leading local performance. and our to and Payers XX% rely which most a with receiving XX% each a record quality physician care our are

This Additionally, long and our we term. to the effectively changes with of partner able in been to rates have our that want key targeted over groups Agilon reflects in percentage markets. negotiate premium payers

make our to 'XX payers and for with progress expect XXXX. during engagement We continued deepening

this visibility, we and began pipeline, we onboarding begin several data data months. will our financial new data our data other month, For into large from from largest the ingesting next payer over payers

membership membership during We expect with operations. to more the data analyze internal quarter. process our to quarter detail, This will XX% enable will the onboard and XX% improve for our our first of much second and faster which data of over and pipeline teams payer data forecasting our and during

support is to efficiency. are acquired of impact care. the ADT We and transitions HIE leverage expanding clinical will enrollment, to we operating XXXX use better we Minerva and area Final in program platform of focus data of the also

We have geographic support taken guidance reduced in we reflect to a reduce XXXX, entry have $XX to our costs updated approach our additionally, measured to our X% by our of targeted XXXX revenue actions platform million to growth. in

growth to class the of turn with let's Now XXXX.

our range for lower million. million prior on to bringing quality to potential current with or XX,XXX at least growth. in the pleased of X groups taking with new we members. will additional platform want are mentioned, approximately doctors. Given that than still to share come in we this will on include measured a which estimate have important we expand XX care class I range the note are 'XX. In MA XXXX the and associated as incremental environment, closing, contemplates to It's patients have reflected implementation from to And and network groups our to costs I able cycle takeaways. include $XX our physician of in we X,XXX been onboarding down the is geographic the years. platform costs $XX of the $XX This class I'm achieve longer new the of of of that 'XX entry the recent groups This partners to 'XX X more for million, the important senior lowered to offer primary our class a to is approach

XXXX partners, environment, to First, the margin normalized and Advantage Agilon navigating trajectory our return industry, outpacing a including Medicare time. and plan supporting industry. is Agilon CMS during new temporarily are to and ability through benchmarks over this period more XXXX. to health a and the company adjust revenue will our our costs for Medical transition

for are on execution best-in-class action factors From an we have improve assumes recent From significant reset strengthening a is forecasting this Second, environment. our we our this exiting performance are significant that our and XX we can executing focus the guidance remains we perspective, perspective, against plan reserves control. reflected on a the outlined in against operating XXXX, dynamic taking utilization actions to elevated. with of directly

into finally, a updated and business This and drive been is value Third Demand as stronger, the payers consistent is environment. in reflected to remain significant the and our long-term the has opportunity which our translating and for never and Agilon. our difficult care member working. we is improvement platform in even in network. across our reinvestment patients, PCP delivering model primary PCP ability are our significant physician confident our have for economics network We we partners shared, into to information platform strength measures cohort in partners our well to of local quality as

let his me Tim for over to that, the With call turn comments.

afternoon. Steve, X cover into good items Q&A. before Thanks, we go and I'll

slides I'll XXXX reference second, and First, expectations. my flow on comments. during details our additional the balance guidance; several of sheet cash

Starting guidance with details.

our of margins, XXXX the of We drivers which million medical medical now $XXX XXXX, million. to midpoint can lower first, of $XXX The Slide includes: expect updated point which to presentation. for in of our margins Steve the the primary compares XXXX X the our in see on medical starting addressed. range million prior to in change $XXX guidance be margin You projections

XXXX. Second, that including carry XXXX higher forward costs into our for will a the from class reduced outlook XXXX, assumption of

Third, a close of higher XXXX. offset we performance documentation partial from illness burden efforts stronger as in our revenue with associated

I over of clinical our which assuming We points all-in X.X% the now XXX assumption. programs. XXXX, a from are wanted trends cost these previous net to for is note that trend impact are X.X% after basis our

XXXX. to compared Our and gross the assumption fourth quarter these XXXX, of it's trend for X.X% and in we in line the programs previously, excluding trend is observed X.X% with now

Slide to On that adjusted XXXX call some and XXXX. the dynamics EBITDA I work our those results impacted out of how wanted dynamics X, in

lowered modest negative relatively development growth medical the our margins the leverage created which in of This margin. medical was During recorded our XXXX, we million to adjusted consolidated we due XXXX, generated EBITDA. prior $X in to year

an in higher of we markets relative a had of operating loss from handful had Because growth margin expense we Additionally, class growth. markets EBITDA the position, of to medical including this, several XXXX.

will reverse expect XXXX, through we adjusted medical flow to more this margin growth For dynamic with EBITDA. driving

that the sheet profitable One investments we and debt. $XXX perspective, don't we key perspective, a balance of cash class expect is minimal expect approximately we development market a million year dynamic prior of as From and have be XXXX EBITDA mentioned, Steve will to and from recur.

investments and of balance on updated off-balance sheet to of use on include and million million is to reach XXXX. $XX our ACO $XXX consolidated our cash during available Based Our associated million million $XXX $XXX sheet expect our another cash with entities. guidance, we that cash

guidance Based of with offset with by result months flow use from EBITDA an about cash of of flow realization of this, would XXXX $XX positive timing XX our our and cash payers. XXXX expectation the settlements about our medical cash performance reference, XXXX is because For adjusted our and on in in margin of million beyond.

we operator, ready to questions. take that, are With

have [Operator question from on first the phone Instructions] We line Lisa of Morgan. the JP Gill

What are -- utilization of to in is about this feel you that this plans of think health it when and adjust views is when will bid. some this CMS comments demand we maybe your think new normal? overall seems the pent-up trends, your you new we about normal ultimately, or that think And on some the that

do question. to there's new be you how want think looking would understand Or some pent-up I is at to that think you So my level just the current first environment normal? this demand. of the as whether you're

of stepping tries QX by Lisa, the trend a I'd dynamic start demonstrate very respect the for think seen it guess to in to in what thanks a and that environment I I we've communicated we're QX saying, question. -- trend an X.X%. We acceleration operating for obviously utilization in today level environment. have up so

Our continues is that 'XX assumption utilization into that level. at

about, at And that's within and been we that seasonality a our so we within see set talked Tim the see this that it for data of persist concluded but in looking tremendous persisting, guidance reflected didn't that within our XXXX. will

that's like in this. as will up encouraged notice we've with We we catch talked and benchmarks that said, we looks when the see in as to for bidding specifically plans they of of our some us. planned XXXX have final later focused obviously get expect, as what and partners will material their it through We'll terms do their be been about for QX, we that on with bids flows margin, that and

at that through is be ongoing going elevated is belief least our it So and it's at to XXXX. level, this

the just And rule. comments the the I around 'XX elements of of want then just VXX, supplemental the benefits. if better in guidance, I understand you the think of X-midnight then that impact to made And some

that is managed benefits you So care. comment supplemental supplemental with of the benefits around have risk around less on some negotiations the based

help understand that just can great. X, you If me would those be

Sure.

that. on we as can't or payers, are change nearly 'XX see supplemental the through that whether things rough in across from corridor 'XX, includes by into as whether actions great those carve-out, for and that 'XX and we guidance an The which factored the focused the Tim in conversations I over has now we our for through right X% a other trend our at our of saw a revenue. to to talked and about, the offset mix year as that's elements in supplemental X laid impact revenue impact our that's payer the of do in escalation then Our mitigate XXXX. and that our of you not like is benefits, control look relative inpatient as And rule we 'XX benefits 'XX ability capping midnight out 'XX assumption part we've

it's things, combination So anything that? those a of Tim, add to Lisa. you'd

yes, right I think are on. the By that's ahead. we way, so go

No, actually no, that's I you know ahead. go great. that

slight with in Just tag big headwind on in a had we that's quantity that off like a very to XXXX. we XXXX points to supplemental coming just headwind the do to or so, is basis be benefit XX but expect

So.

question the of We Lake have Research. now Justin Wolfe from next

through kind the that laid bridge first go this medical to on of us January you versus out wanted cost for specifically the side. today I

headwind cost have million of So $XXX medical kind you before. MPM million versus here of $XXX

So you quarter. looking the delta? costs to new incremental you did had the it? just annualize in I'm that multiply think at drive fourth for. million X it way here what by of $XX to kind of And another Is Is about that that quarters to

I revenue. incremental And a change the $XX little had medical of of bit great million that's we question. Yes, is think a total margin,

I think full the change.

the we that for about year. essentially $XX it reserved just of fourth making in we number realized. through and way million at quarter, is that the of and going get things into membership medical process all So expense went actually Steve we're our final our the have $XX guiding look Of we million essentially million, We $XX to to to adequately January. refining went feel at be early we that we incremental we how a what to sure we the looking is were it versus the that end that some close of actually for added been

actual of you So point, to the to about were I pretty get our to $XX think close to we've number. added your cost reserves million

numbers. of accelerating $XX of expense In that previous medical -- that is million leaves million some the the And the talked quarter, the Steve quarter. the quarter that the quarters. other $XX into base with fourth million fourth we going million incremental on these us incremental $XX a million fourth about in that added total $XX $XX about in with trend with

X% year. expense medical taken XXXX to full that quarter than for trends, year, medical full accelerated fourth X.X% benefits without for for the based X.X% assume so now for higher and of We've essentially based the the year that slightly full our XXXX. about that year full Our supplemental without

quarter and guide. through essentially, into XXXX step So yes, that flow fourth taken we've that up

could And that's then you're out X midnight there you assuming a can the trend. what before you specifically, tell the companies here pickup talking just assuming versus the that? one that What One, to in seeing, put asked much if X stays you the answer and how does total the for short specifically. the total I Maybe Okay. that couple us rule. there? some gave us you Like on Lisa things pickup even an breakdown about is in some short you're of stays know of additions? that midnight emissions? pressure of rule don't What question on impact on inpatient seeing tell of are that

some talked then been lastly, ACO fourth to of plans there's that and Can And you that. reach higher CMS give ACO they've on trends is about in kind seeing the discussion fourth numbers reach, quarter, year-to-date quarter in some trend in program maybe the us what terms kind reporting of that pickup measure they've versus there in is of the much MA? versus how CMS fee-for-service seen to the

Sure.

I'll is It are full what what so definitely terms first laid in the for take out considered of -- still in the to So trend, and we line medical. terms the year. in take line And we Justin, QX in we've one with inpatient some step-up seeing is that, you of the rule but that and contributing overall trend. within within with X-day it's

inpatient also up seeing some surgeries lot talked the in outpatient before, the of A that which side, are about is surgery. in but we've stepping categories other that is principally The that ones was we seeing QX. the

but sort by drug. some have in specialty around induced B utilization just also cost that, Part been exhausting of and driven amount maximum may pocket of Some

what our quarter. we side. in expense on REACH numbers the to ACO side, the MA ACO seeing Just claims acceleration on we're also and Similar the seeing REACH in fourth in are

numbers. one a that's it's thing part through different ACO of I little So our certainly bit question think than coming The your that -- is REACH.

go As adjustment. calculation those for will the into retro claims actually final that increase, trend the

final going line had us, going allowed And revenue the pretty with will that's we guided. to our are Medicare our up, where close our and costs are pretty So much as as booked REACH perspective, adjust we overall ACO up, up from hold in claims much fee-for-service well.

year our at X.X% The at full came X.X%. is REACH, national in ACO Justin, and performance

So by points. basis we beat that XXX national benchmark

to is trend full That what I the X.X% on side, seeing on similar is pretty was for year MA to. we're what the referring so national the

pickup number you come a to there and revising was quarter in that say, CMS And there fourth we're the up? to

data and to Medicare give on the that just basis. monthly come us doesn't fee-for-service the CMS us you claims they population us say give and -- a reference

We Ryan question now from have Daniels William with Blair. a

on me the start managed relationship your with just payers. big with one, Let your care picture

moved should partial the the you're if capitation. seeing, headwinds strategy full maybe of curious some the risk given say, here and one to with it I today about the feeds going talked that's debated risk in Given do from adjustment term business contracts, cohorts? consider of and know away or through better of trends if peers you've actually risk just if your you'd the internally some scale, getting move a you're you've Or the and storm restructuring the to data I stick down you I'm see pursuing? of some longer kind

the in Yes, are listen, really a I obviously we as Ryan. about. question, talked we've environment No, volatile and appreciate

and future risk value-based care. value-based I think is the we care full believe

that backdrop it MA your period specifically and planned and outperform the But investments model in against make I or think a reality. our locally funding shared this of environment. fee-for-service transition we're that platform that differentiated I a building I just and we've got think think and lots one at the points ACO it like to doing can of elevated a And with significant I we're REACH made we data payers utilization of market we the on question, an environment. in to bids, terms

got we're premium going. success and is doing been we've that to increased we're that payer more got, We've X sharing of we've some in -- that and tuning our of our so we're conversations have actually economics terms One around what ways. that. doing actively percentage And able capitated risk for is an business

are is for second that our of our reducing really out exposure control. elements the And

from the ones we Star of utilization laid So bids higher actuarial supplemental out scores aggressive that benefits, around far that. or just an to were perspective. than that control lead outside assumptions

so And looking we're tuning, a think ways. of Ryan the reflected at I it. way that that's variety gets in But

an looking I and for us to our sort do think balances a We're that economic of for the arrangement payers risk-sharing more. are looking just environment.

yes, big for makes can't think be negotiation? things helpful that that you your How appreciate And that receptive of and especially and M&A sense based It your and looking other outside that, that super of control, to how Do penalized book is color. for curious, a I commentary, reducing of you about they exposure negotiate that through willing things to business on gone has noteworthy. piece control, this? of then your to which are I'm add shouldn't of are level the payers for we're these of value you they're so kind

So that. to early date, we're in relatively

with evident of payers. to most going some a say couple We their payers, across communities. Ryan. very key some have got groups across this they largest and we prestigious the would payers and care environment. a and right our We've very supply that it is had to primary markets have many represent want sort particularly I value of strong provide success utilization now, in these within groups the chain,

very it's so important. And

pretty optimistic. we'll And discussion. our into but in of think factored is we're on that progressing, an update you terms how the call next I give that's So

Singh Securities. Shailendra Truist of have now SPEAKERXX We

it on medical that margin class XXXX cautious January Shailendra. versus medical the of you rest seeing, class the the like declined just This only expectations. more your on to I XXXX book? of on bridge, the Eduardo there which have the total makes, looks more relative for the guess, margin I of you're anything Is is than

assumption 'XX of talked about we step-up class reflects the full the the that entire trend book. utilization the So in across

I change. from that math $XX PMPM $XX to think PMPM the is it drops on

So the see driving -- that you change there. is the that what's

can programs a the I And math X.X%. this impact medical cost being in the 'XX. to see I points guess, having right? programs on then the benefit? your net versus guess, year rough just you largest X lives to does that discuss, contributors And sort roughly of the X.X% do first, guess, I $XX gross clinical million sound That which on trend being impact plus you the, being trend

should bit Yes. think us those value of a the is on. points that clinical well. XXXX. as basis math But programs in We be little supplemental numbers about XXX of those headwind The there's right in benefit overall for

Eduardo, clinical what I sort programs, a I nationally. medical expanding accurate programs which visits. We of X%, is focused is and assessment. say of inpatient really management And inpatient enrolling better and success renal, on unnecessary our those high ER 'XX all with than risk would palliative, good reducing with in are what far X patients seeing in down we're more we're those And think on those markets more more had based

out. us the numbers the laid you So those are confidence are the just giving around that things

Partners. Mayo Whit of Leerink have now We

how a trend fourth this year? hear the full the full I What in for to trend does cost the XXXX? Just one X.X% gross and was of year the quarter close to the numbers. lot compare X% for it But clarification, actual for year.

For XXXX, Whit?

Yes, yes,.

absolutely. Yes,

without claims all benefits the base booked we for supplemental our incremental the reserves will be year, full X%. with we're now so is this -- trend, in that So

and our So full X% the year to X.X%. XXXX trend was then fourth and accelerated quarter

And supplemental XXXX. goes for X.X that talked include to the that with X.X% nonmedical, up if the about benefit Tim effect, you

Okay. claims remind percent settled you've at me, 'XX. that completely the and just this for point of your

Yes.

and apples-to-apples X of rate through full full all right group we now to So when to the we cost XXXX, year we what December in And reserve rate 'XX. Last it point, incurred a our same full right it's of X process basis know costs year on completion markets, the is now in what have were, final that went rate what in because at we did completion compared those went about of have a sure year, XX.X%. it our been year an assumption for question been make back would our have markets, a rate assuming things great at this for knowing full completion right final we're for plus but been is real for completion would XX%. should what so what with paid and the the of about adequate now, year the now

well. So conservative. we're and points meantime, now the But see we page January would in actually assumed XXX our closing, to basis now about that have then we've as been between able more

So over and January, I'll more when data, up early data of hold we're XX% another we X had guided month which is just actually months we complete. than of in

Okay. And one last...

Sorry, go ahead.

go No, Steve. ahead,

in more receiving assessment give factors was largest were census that everyone. But national of our in Tim data from about. the doing complete than in we that the and the just players because seasonality February, is also the going moving for to that analysis composite world of talked talked updated are context the I some about

so we was we all on landed that conservative the scenario. about ultimately incorporated And that talked that scenarios into most and where

And one quick sorry, last one.

Just future this largely changed in physician rate geographical thought really the ahead a year. costs of compensation there? change I the entry for What the that fleet. was set

Yes.

the We of a had that year all as to get, visits incentives been year at particularly and better complete X the the in of wellness our revenue much one drove us on getting of clinical parts positive large us rate obviously, projecting, year's talking a it for to have we up. the rate these costs better than of that largest programs geographic members couple that because we is to a stronger pay enrolled entry a job we're number do allows and really it's completion So are their of in our XXXX our finished higher actually next we well as annual the markets, in impact about. physicians

XXXX, in the XXXX. of course, lower that size of the to XXXX will Of because class of compared number be

from Evercore question comes Our next Elizabeth of Anderson ISI.

I in of where the what seeing you'll color XXXX. of update us for of of know were in all your for for XQ, I remember say, talking are probably you can don't that? the in visibility, appreciate data of terms end Or visibility. the percent additional sort give terms since it's on XQ sort sort you're couple be, weeks ago, the expectations a the whether you changed completion at about where of, some an of beginning of data of XQ, I on your of January

talking pipeline. financial the is about data She

that are our claims I we payer XX% of talked this largest the So about have already of more our we're and data up pipeline, remarks, about we'll north in from my Elizabeth, will talked many year, standing receiving financial be largest that QX, ability that in largest have our our to of be covered based gives our have consistent us those does X/X really that. for across members will by we'll us QX, XX% a on payers. set members. What And X within that of data the very is it national of payers

kind cost It historically care to to you're because to it allows with different level category us able than more and be the be sets. detailed of of very have at wrestling far faster we been data

And more so it's just that data set as that to it have much becomes we effectively updated, with rapidly. as our ability that soon move it

on talking track in future at we're and calls referencing start what by that's to you're where encouraged come and a the as that. so And we will is and we're assessments you on on that think making. we're that component be back And progression, I

Sean have now RBC Capital Markets. We Dodge of

Yes.

being with -- class? we Or margins? For medical this launches strong Should a given again, these 'XX can also if year of being the bank, that at to group like compare help think of X will relatively look contrast composition we more us Class and the that 'XX you should the we of kind think about XXXX, composition, the the a it class? about

we Sean, thanks, for the So -- question.

We right now. Very strong them class have to 'XX. be implementing of excited really a

least one state us. I least patients, at it new said, at X and for senior be it's will and XX,XXX groups As

about the and think 'XX of of class you in sort it comparison to 'XX. If

see to We think new You're concentration going states greater groups that's and a prudent. really of these markets seen. we've than what existing in

You're able programs, clinical around existing leverage infrastructure contracts, to that.

It Class lot. also a less helps that it's is 'XX, contrast in and like So 'XX diverse.

types cycles for some costs costs that. different the more I multi-specialty just primary for and as class many geo 'XX And those. really You've longer got of groups about and then that talked implementation so of more in class potential early that membership than within for onboarding or XX,XXX 'XX, for the of the talked in sort kind groups care of account the about not entry as we of

these So group. each of in of here groups of the that that's coming in details sort on be the sharing complexion one And period. the we'll

including Okay. And more that to pause kind lot to maybe than could or selective grow? the or who of what of you're you being kind be like? 'XX looking Class last we do just Should point. the here this think a just about quickly on prudent think up 'XX ends of continue Is backdrop it given

and Well, X that right? I think groups is least, we to at XX,XXX. said 'XX So

to terms our so is is today, leverage footprint. existing in in do the for think that to in prudent So of lot able grow, very sit footprint there a the payer this we're contracts, I class we you're now in potential that of, particular,

on at So but at right a of sort is of But least least there's the probably part as dynamic we're big these of not at XX,XXX. a sort much on of groups, that's that. pull-through groups, now, this where X

Wells We Fargo. now of have Stephen Baxter

this look point, levers at I anything that structurally back ability cohorts, cohort changes been thinking one we've just been there view especially at thing to as ask, with these the the older over have that get company's they the of has the wanted plan about you this. of economics to on sort progression, that your really side, mean is I X health to deal time? back to

also a seemingly kind corporate of cutting of they're then but overhead. have repricing, they the First, lot

to would So be not had they have necessarily medical getting back that even on they pre-COVID the a same might basis. margins

a and, environment some thoughts be like the those if economics So around as provide you guess, it, looks achievability think potential what it it could just different of we forward. pretty going will of I wondering about sort

it you've cohorts I a appreciate investor impacted Yes, on deck I think utilization. are and website. Stephen. the I cohorts mean environment, that elevated is data. that's elevated got about member the the clearly dynamic the and definitely cohort the the market in costs mean, I asking you're

member performing that 'XX, you they're came how the encouraged look at in thing. when across same on think we're kind 'XX I time cohort members data, which of is basically

If that $XXX of $XXX the look And that to PMPM. are where and on million talked 'XX, at above sort some side, near are million for. 'XX 'XX, low got they we've is the obviously, that. or we're we've about $XXX you of sustaining shooting That's classes north progressing but

class data, growth market you of is from impact we've same-store year the dilution within year what The shown in, for the time first out. mid-teens that

able so are added year plans drive those we've very since XXX,XXX markets. across in what on providers our XXX you're members initial And Those those focused and action markets. terms MA of are And X. it's impactful to the dragging

of are $XX 'XX, page. the you PMPM class in impact on So in and you PMPM class PMPM $XX a see impact market a those those that an class of market numbers see impact $XX in 'XX the 'XX, the of dragging next the

care action them new really How And that on addressing more our I team available in variability. focus to opportunity PC do the what's of sort is educated do on talked to value-based improvement. How we the we get the patients? around understanding and how so within we doctors, focus those that of new plan and drive elements model care do them about those

opportunity those major a to us as that for up. drive see We

get and and and level accelerate able cohort those the think for PCPs I we that with 'XX, drive And on newer same and markets, at believe got level. be 'XX, you maturation newer can based so to to to that members 'XX we've members

how how our their can talked we're lever thinking benefits. you've of filed about control, So that's like and a about their of bids plans levers control, we it. kind That's outside

this within the can see and are as payer with think but on about. cycle discussion to will sharing opportunity perspective X-year we're flow accelerated we encouraged this a they're risk that from there's 'XX much and 'XX what we and us. then how improve That's dollar about newer of of on part we we're happen should those that. that we variability and hearing captured elements for what based 'XX, benchmark will what And members focused with think for how great thinking We that obviously us. talked doctors 'XX, in utilization be a But obviously through newer we're dollar control, would around and spread economics that this really I

We now of have George Hill Deutsche Bank.

like and things want big health a upon can the what question this X, margin rate around final picture Steve, partners there's for to for they right, kind the talked and the like levels how is close do, that. benchmark which you bid will what some impact they based to of the And about you, bidding TBC, rebate but guardrails plan of kind your of for

increase And think So as margin that sit, as to guys potential of some that kind proxy kind I'm low XXXX? double-digit per you wondering about I'm from partners of can like like dollars where needing what XXXX. kind your talked plan expansion do look health for about like month in use the what to you of because you out of member to like you look margin going the per

hear to the moving maybe think big you picture how interested level. be to those about I'd Just

in -- what of think digits, could element talk to I And George. that's you think MA, million, terms do ability an $XX annual that one gives X.X I that math the if it's double about that of in dimension if sort So $XX of you look adjustment right? a a seniors is like. low PMPM of the you this, million number bid across

than are And I more so conversations we've thinking think with that. had people people, some

are our what come I business, from on implementation. can people, think, mature as around see you that's that material comes members the this Some and of terms think as today. if spread of to variability evolution it to I there's We very longer just But I should trying can great talking think new step-up But is the see across medical 'XX the difficult the well. that that in And figure and think But in about in control you're seeing of 'XX a be one big piece experience, to I maturation margin projecting still in thing to patients. was is this this natural from that should I in 'XX out. time, where year, from we it. of think back sits Stephen new right, very this . docs just the XX% that then that perspective. class part correct can improvement really in cohorts, natural a us the will you about we a

of Ron America now We Adam Bank have of

I'm ask question. what's a going different very something similar but the angle. already, to to asked maybe for from Thanks been

comes that end Just into like XXXX talking flow payers also ] payers saying margin the capitated cutting understand rebates percentage not and are capacity XXX little and benchmark? And and so about talking something how separately, of you're number carving like they've to actual to [ basis benefits given from up of a of is your into if do Humana visibility in like that XXX, on them a cut that improvements, it margin. supplemental terms points most of So MAX basis, of the P&L? at you cut carve would somehow and just the if a not percentage the higher And basis out. Agilon? be it at doesn't the some you of in cut of it's to getting benefits you looking like that bit how benefits $XX out at it. higher looking for form if that because come risk does about margin, are a they're talking it and rebates, much about because And trying have XXX they ways a points of On Is just there somehow it's something things have about way that? of talking impacting you much flow

are premium, So larger payer I We and mean, for what I'll trying patients. quality just of and in sharing is delivering the of with back to is I dialogue are up, up arrangements a our performance managing Utilization tune them, consistency from probably a we that to their the have of we them receiving percentage perspective be and part this we should environment. given which for that that's that. we're Adam really risk said, economic

big sort of Do of things the look carve gets how future Do kind and I flows what on delivering mean corridor idea for it perfect and is a about around works crystal how a through. are this we that. cap a part us control, that I have valuable that's getting for look at think are changed at ball I to that? outside service scenarios that, it, of we So an incredibly we we and it? into don't we do our that sustainable but for we them, them trying model I do it,

think So that's they 'XX partnerships but question, them within of as bids as our a your they how that. their to answer fit general and a I with about about -- lot sort markets dialogue of think 'XX

then And X just appreciate follow-ups. I that. Yes. really quick

EBITDA and basis So as losses G&A, X% like of a was I should cash since of guidance dollar think, like well we mid-teens. 'XX current in Is around of on negative million. lag. year's about last a Is how like for talking as platform 'XX think $XX costs? are adjusted just flow growing platform revenue support the costs finally, about that 'XX way that on performance, the based well X-year support to I operating the think think I reasonable in And think we're a then they're

Yes.

going us definitely what of be growth out -- little to obviously platform our drive but think to the we're to for -- I revenue our our growth what below growth well or and forecast costs leverage revenue be continue a on first to to for we platform that guiding expect would get one, XXXX, costs continue cost support platforms support early will is.

sure. say, little to a early specifically, for but So yes, leverage get we'll to continue

use million. that expectation million what and hit cash cash beyond. put XXXX positive XXXX. that If on have generating our trajectory $XX can the margin impact to is down course, on that from go be of our If and performance XXXX and is XXXX. delayed talked kind out use $XXX which, big deliver cash our to the guided somewhere a there, then a for our we we would cash or impact XXXX flow we to of of our numbers, a in EBITDA cash about $XX that has XXXX in about good will guidance, us XXXX will XXXX On expect that flow And XXXX works we of million impact is for put a guidance the there's of would flow we're our XXXX between million flow, burn we big on $XXX medical cash in way

what in doing side chart the efficiency standardization within seeing say leverage we're got just reviews markets. activities we're making centralization, from Adam, I that done of investments the would in local is And the technology we're on tremendous like that previously

a we've around also in for just tremendous perspective there's things opportunity, got, but further to that. just think with efficiency And an payers, the us drive so like I not discussions scale from that

from So grow, going be perspective. we as greater that I to to far there's think leverage continue

because against costs those we we very leverage I existing part our leverage operating our get of our that our bigger get markets. markets. really in bigger just out is mean, the of adding base most a as incremental we're to platform year-over-year cost good And becomes our overall membership, forecast market existing costs good add and we markets. of in

of in benefit growing your another footprint. It's existing

you. Thank

We the line. have on current no questions

it management would Agilon for I final to So team like remarks. any hand to the back

Obviously, thank we're environment. in Well, you. living very a dynamic

is we're sort is the think and opportunity I data, our providing what 'XX feel the of targeted And shows and is our I but in working. value and plan a think to you difficult when at look are by shared the cohort action even business. we it physicians business environment, you guide those like model within long-term results impacted our 'XX our with on clearly track we've

for joining talking So us. all with we look soon. forward you to Thanks

for Health the Earnings you Thank Call. joining Agilon Fourth Conference Quarter all XXXX

and disconnect of lines, the now may your You please day. rest enjoy your