agilon health (AGL) 7 May 242024 Q1 Earnings call transcript

Hello, everyone, and welcome to the Agilon Health First Quarter 2024 Earnings Conference. My name is Seth, and I'll be the operator for your call today. [Operator Instructions]

I will now hand the floor over to Matthew Gilmor to begin the call. Please go ahead.

operator. you, Thank welcome and call. Good to afternoon, the me Tim Bensley. our Steve CEO, CFO, our and Sell; With is

Following remarks, our session. Q&A prepared we will a conduct

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

results. financial in a and financial these non-GAAP we of and certain Additionally, that helps is measures measures understanding will results better this call providing financial believe We discuss more are gain investors complete measures. X-K our views reconciliation the SEC. measures with financial measure with financial non-GAAP comparable Form management in is the available these and filed consistent to release how of most earnings the press GAAP A our

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

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

Our making QX update action and our search. and 'XX in tangible relationships, plan, against payer with including And a payers, perspective particular, company strengthened performance and our on progress offers we our our proposition guidance. Medicare that accelerated demand program and physician the an and backdrop groups The the rapid value constrained and results CFO finally, are for has CMO against plans of funding value CMS. environment. The among MA further forward

our while differences new to primarily plan ranges. billion. partners refine of revenue terms. MA due the our was with performance. membership guidance health to XX% we payer Both quarterly to low XX% $X.XXX towards grew XXX,XXX our timing work as signing with members, end to key contracts in Starting metrics This were grew

of Medical reflects will and margin observed guidance in a updated our membership which moments. I the exit few an for XXXX. above to trends and in-quarter which $XXX discuss of payer million unprofitable to cost contracts, is our reflects we revenue X.X%, grew trend QX decision X% Additionally, certain in medical

environment, believe utilization approach. elevated continued prudent Given the assumption we is the current of a

prior to also quarter Consistent of development. cost stance net trend $X.X first million our have taken cautious approach claims recognition, with year uncertain in the XXXX, out We environment. we recognized a given closing

XX% medical would high the been our was Absent the end timing margin million, above which of flow-through performance for development, entry margin better This outlook profit prior guidance. grew to towards geographic and gross of reflects to year have quarter. medical Adjusted favorable our $XX EBITDA stronger costs. of

continues the quarter, groups During care the that with XX ramping Class Despite began growth, class MA strong. the of the challenging measured and towards work for physician platform among new high-quality for our physician value our demand new the system of X XXXX implementation health new partners. dynamics remain and our approach comprise we to our accelerate to groups macro like partners also

Turning guidance. to our

booked outlook, updates. margin payer in year being We the are favorable and year first maintaining we development quarter adjusted contract the full prior EBITDA medical by offset our with

Our QX that at and medical full year elevated levels. cost trends guidance remain assumes

the is cost began moderating payers, of data and complete February. January also our are January largest some with in Our trends elevated which February and paid consistent were for claims for relatively members flat indicates indicates use during our This for and moderated including year versus data, and of inpatient declined payer month in which that relatively the throughout during indicators, the real-time was April. March of expanded our census our prior utilization quarter

QX to and we assumptions. data as booked points are where relative these early, indicators these While guidance we our view encouraging

Turning plan. our to performance action

executing tangible making performance profitability. to us and which positions progress accelerate plan, our are We

expanding relationships, following the includes strong accelerating variability, payer primary care efficiency. for improving operating support data plan our reminder, and and to a our visibility elements: our analytics, our As narrow doctors X refining

payer few Starting provide a updates. me with relationships. Let

call, As driving changes their the discussed payers care and physician are and reinforce last productive payers strategies. as on key network are a in several our successes partnerships value-based discussions environment key this to point. our Ongoing critically with recent around part terms of important

payer our First, supplemental we captured associated to have initial guidance. filings. higher premium benefit in were XXXX of reflect negotiated rate increases costs in off-cycle improvements percentage multiple markets with including These bids,

network, of favorable relationships our with economic Second, and regional with provided focus series prior on payers margin relief of with including QX losses mature retroactive the exit year the sustaining a couple markets, Advantage of adjusted terms, care a Medicare group national of in on year an in contract medical and multiple contracts market. our payer market. long-term agilon the several And exit a value-based unprofitable partners have a June a XX X in

contract X agilon market, payer changes dynamics and this physician during partnership, in XXXX benefit these made our with exiting the the result will to were in year path of XXXX, payer including sustainable All collaboration for partners. market. The elongated our and in profitability changes close local

tight our physician wind not partners our agilon to the together, are flexibility alignment in in our winning the down partnerships we have mutually and Given where rare operations. the circumstance

with XXXX progress Overall, for we with contract XXXX are and pleased appropriate. additional and our we payers, enhancements execute as recent may

in our PCP The expanded support. on model for newest track. is to PCPs Turning the support

review sessions programs. these in to PCP's patient ensure reinforcing addition to with proactive patients our interventions, high-risk receiving quarterly are active training panel, learnings mature robust including enrollment markets, our appropriate local medical of are visits a and appropriate clinical an In directors into

seeing will efforts patient our our care and of across the Over already network, time, we consistency benefits performance narrow care delivery. and are partners these in variability physician improve and in believe

making and For data data rapid we progress data analytics, are up sources. our and visibility pipeline additional standing financial leveraging

our our data As analyze improve and we have and this internal teams operations. process enable to will faster discussed, forecasting and

And of data our are we track now have move greater XX% into from member data QX. to than greater on and through pipeline. We we onboarded plans as national member onboard large CMS of XX% our than

also have advances our of monitor HIE payer leveraging inpatient census expanded and use data made activity. feeds to our We

for data for about payer first that census our our I inpatient costs into accounts activity earlier, our medical moderated quarter indicates the of which real-time and As course XX% of April. members, the over mentioned

year, support share our accelerated just X% for for Earlier operating of the better in our centralization and and to XXXX. of during finally, revenue X.X% technology efficiency. revenues we quarter. of this our to of support ahead use And to are I'm reduce platform was pleased schedule that targets, we platform

starting made efficiency have significant we We are investments to our benefits the and platform in these recent investments. recognize years, in from

approach important disappointed maintain to to managing are and With believe for reflect delivers funding Despite quality. role continue to very internal like respect efficiency. experience, environment Medicare we the XXXX physicians. agilon's our notes the assessing opportunities value Payers costs for terms patient in final additional for others, controllable payers in of environment the costs the were been didn't disciplined the We observed demand industry. rising reinforcing across that is especially we value in Advantage, continues improve a have to agilon recognize this the unique and ways, because this, accurate accelerate among and documentation

care X+ quality ratings to services. star partnerships and primary achieve Our preventative access consistently expand

to in Our challenging for discussed value which even more proactively dynamic our environment. earlier. delivery payers We PCPs important I funding contracting, deep and refine a with is our is this believe payer connectivity ability supporting

need alternative the fee-for-service, to care platform robust value-based demands primary strength For demand our doctors, to drive an of care payer the continues for for a backdrop. and

physician part More long to class leading network movement with in be towards partners groups include XXXX a new the Our history their of of physician join to value-based X organizations platform communities. the care. agilon physician leading want and

with and we today, North Our new especially Carolina. these Kentucky, Minnesota demonstrate X our the network, power partnerships growing communities in like groups where operate of

address Lastly, the and let transition the CFO me search process. ongoing CMO and

their candidates run We by seen robust continue in appreciation the have of agilon. quality are and and to interest impressed we a and process

primary the organization. to candidates before on next right earnings more provide And a Our call. is our update identifying we or expect for definitive focus our

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

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

we guidance. the First, quarter; in additional booked year flow; our some the second, third, first balance additional on and details on and sheet updated details development cash prior

with year Starting prior the development.

our decision with on revenue As has impact million in development medical $X.X you adjusted million claims comes approach results claims or included EBITDA. million adopt from XXXX our to incurred booked very our total The includes will see retroactive unfavorable membership, margins we cautious Steve reflects prior to limited $XX.X offsetting XX-Q net our that In development. This in filing, development. claims $X.X the runout. noted, our quarter a which during

you higher in we additional we As call, claims XXXX have claims we IBNR the last in some our discussed triangles to several regions. incremental judgment paid with reserves. then, Since setting observed applied

of level with same and dates service. of quarter, During XXXX maintained the the we associated the judgment prior

as points geographies you is class a payers known of completion XXXX, these estimated actual for important the quarter. represented incremental point the the of recognized is the think data during payers expense XXXX approximately XXXX. older basis completion and positive adequacy and partners, partners believe data unfavorable last As about claims XXX point below reserves which and same is XX.X%. a geography as this for This same and in factor factor at year. We our result, development the our for XXXX for point our was -- One this

seasonality and sheet of cash and settlements majority $XX marketable million considering quarter cash our continue After use cash cash cash securities, and payers. balance of flow. of securities and was with million physician used million the first we which of with to We distributions with balance from sheet XXXX. quarter, million the another entities. consistent $XX the ACO $XXX REACH during million expectations to our to Turning ended $XXX to cash sheet to reflects of partners off-balance Agilon during marketable received associated $XXX of and our our expect the with

year. cash flow during discussed improved year operations our from performance back with for from As settle payers we the prior as have of previously, the we half the

with of would is XXXX with cash million you. Our we guidance and shared positive the expectation use an which in about XXXX in beyond, of of flow outlook previously with cash $XX a result consistent XXXX

Turning to our guidance.

be updated outlook to These membership our Steve exiting and XX. referenced. contracts June are will have exits reflect of contract revenue by completed the during and second We effective quarter the payer

negative $XX medical payer our prior negative guidance offset year to of $XX maintaining $XXX we being million. changes The guidance by million million in in negative $XXX to the are We the adjusted include booked and EBITDA contract updates. primary development guidance QX our of million margin

me let With for back some that, to the turn comments. Steve closing call brief

Thanks, Tim.

opening wanted points. X to key the lines emphasize Q&A, Before for I

a we trends. cost maintaining are and to and for medical EBITDA, take margin cautious to posture continue we First, medical respect guidance full adjusted our year with

tangible making payer our action executing our are relationships with performance we and notably Second, progress efficiency. operating most plan,

and we'll move forward. you XXXX during We expect progress update as to make additional we

Third, and plans is the payers, including CMS. demand among accelerating value MA and physician groups for

Our value serve even doctors future a our proposition environment is important foundation to to funding payers as the more will and accelerate primary care performance. constrained and in

With don't move that, why Q&A. we to

Ryan from Instructions] Daniels question Blair. Our [Operator first at comes William

more picture for Maybe pressures the commentary there one one value-based Interesting to the need care about market. given big the start. in cost

see perhaps providers, lower payments pipeline. savings there's on I the that their enthusiasm. shared So hand, if higher that But due to other the if wondering lower and can to I'm somewhat accelerating dilutes the utilization

So impact X? was over how market the or year how do about pipeline aspects X the think you divergent next could

the for question, Thanks Yes. Ryan.

our I physician value that current both provide is is environment only really accelerating the to payers think to we're we seeing partners. the and what

some in we I can value-based about the the have reflects they seeing into. really a think sustainable grow network what to payer add members that additional care you're of desire talked outcomes and

prop significant. our really you value them think of at XXXX, I our class is can to see you look when that

outstanding We're And in groups we and and infrastructure North states adding community these existing reputations. are that in and their are have like Carolina. Kentucky groups built where Minnesota leaders

real see opportunity that us. drive a through value fee-for-service sustainable. And so partnership to it tells value-based And just a is with I think not us additional they really

challenging. getting So the fee-for-service is more reality of

wanting are and drive and additional in is Our join greater navigate that us. environment ability much additional able physician be this to to groups value to

then double down some speak Is are click as you look you seeing then bit maybe to And along the Can a seen far some that of you color. little business next few as pressure? that likely how redefine a of curious your XXXX. setting to that quarters more perfect percentage you that 'XX? markets I'm a terms a are for or That's the as Okay. could progress of favorable book a of if follow-up, contract on there. And expect more renegotiations over be in in up

Ryan, that thanks follow-up. for

a build to we've and substantial I really worked think delivers network value. a hard platform that

network long-term the benefits to been focused add date The have date a partners on not largely that payers in focus relationship members the sustainable. I there, to has can into. from retroactive on really I been XXXX, a XXXX and mutually on conversations sustainable or think has relief losses it's with we've whether and our had margin to that medical been ability with contracts itemized they more the that were working have

All continue to basis. going that we're go-forward work to on of payers those involve with a

can are We on really are looking very as of in that are be we us give early that book benefits now very that. pivoting to and focus we in XXXX, broadly our around for but We're move terms to we X/X XXXX. terms renewing going over of process,

focus 'XX, we XXXX. further improvement for to So really would I moved opportunity there's on say within have an but

Wolfe next Our Justin Research. at is Lake question from

Dean on some specifically the range. is XXXX quarter's their margin cohorts, PMPM for Rosales progression to speed $XXX any well to Justin. you on $XXX classes as questions In relative and to expectations? progression last there? This Med older XXXX update Is their to answered As there call,

in very year. early So the Dean, it's

we continue driving medical work with and around our to partners I margin improvement. think variability reducing good see

So with on would call. on I say last track think we we we are what that communicated

quick Awesome. partners TBC how thinking guys you about with popular right changes? as this pending How a payer follow-up, now? are And topic really obviously speaking just guys you to are

to one about of our in they've XXXX. their constraints What of payers look that at We part are the we with TBC we're as got turn an dialogue that the lot we is are payer they to Obviously, more flow that to as early a limits talking going the their couple hearing filings. looking them, for stages is filings obviously, our months partners of down look it's would But extensive with benefits you adjust in are to that. through at But directly us. as XXXX. of know particularly next

Our comes next Truist. from Singh Jailendra from question

want these I How effective payers not and second decisions exit payers with opportunity unprofitable certain these future with impacting your are to that relationship agreement contract contracts back decisions? go sure your to given exit to you making are these quarter.

relationship of have Yes. Thanks, work that our done with payers. Jailendra. I an updated are I decisions all mean we the are that them. with in the Every -- and talked partners we these with with concert payer to single economic about, continuing

included It so higher really changes, was at this benefit was of looking it market elements those as And final at within mutually. utilization, X the arrived XXXX. notice year some an example, the for payer that

to with that with markets. other these exit decision we together also of out want so payer, And arrangement. to made But the our partner work in payers that us and

And so we active dialogue that. have around

you more then pockets little can bit And of or if follow-up, Okay. my utilization. provide spend maybe color a on

supplemental B the better, particular in When been quarter. improvement have last you trends. trends was the in are drug there say trends, board? spending seen of Part saw high costs, like we the we recent same that quarters You have Is seeing outpatient across benefit, Or buckets improving any buckets few in are terms the surgeries. it

continue in we a very utilization Jailendra, operate dynamic environment. So to

is February, complete similar trends data, from inpatient, obviously, March began claims coming specific points down into step see I look payers April. we taken into utilization data That's census we approach in the we over When across saw terms we trend our saw of at think at most a X.X%. QX our February, million. February. progression paid that you variety $X.X January, a at those at for for of can When QX we've looked to down our and They up to categories we've elevated. recorded sequentially cautious in a January which

think question come B and I trend that so Part in in is, data did down. perspective, inpatient elevated And are see We January from your an we seeing February. drugs and that outpatient claims

it's So really mix. a

question next is Bank at of Ron Our America. from Adam

is up lower had a varying they degrees their came your claims versus companies membership make larger how about out your of for on was initial of managed percentage some past a kind were your margin and expectations the the what large competitors, couple what they of of of and expectations. and in utilization talked visibility You've care than views 'XX which

And at their scenario having just revised had have they CBS so Like And looked why, looked of you example, they're your execution. and outlook And of if potentially they're downside when that your be run would you like now? commentary that right in of for how they're compression. data if own looked visibility comprise with down you that? be the business your XXXX theirs. whatever But the like how at you and given margin losing what about getting confident at on book kind and them look then do margin guidance margin on you kind can outs at they

for the question, Yes. No, thanks Adam.

So looking as receive on data a data relates us terms do give at census where of points. of we're X.X% comfort from landed Jailendra, it updated all that our for QX trend. to in I outlined sort we series at utilization indicators payers. as of a of real-time We

given with those and up booking we for And then January you that those have can We indicators. some us do so payers through points a claims the us our of And progress from we data dialogue. complete data and have sharing gives February gives April. January of ongoing X%, from we through see which that is like even across that's a trend all above around encouragement looked has most that. as What we're even what composite payers comfort

the like gave guidance. you gave X% those tracking I'm how 'XX numbers us some what the into how were initially But sorry, remind it? against is assumptions to you what can does guidance you the that number. put X.X% compare Like and that you when

guide our a trend. We was year the of upper that our range. QX in had we year, for terms in X.X% had the trend So full X%

That of reflected some that the improvements payer we've seen have to helped the is X.X% And results so that. on drive below is that. from

the across really we've seen that that's difference time. So that

a have as think, that now I before, do Steve, drive probably little And number. we data you said right better bit to

this as So your I question, Adam, Steve the said, obviously, And we're at, to books, think too. primary looking close we as gets

complete X.X for relatively largest X first data X for have our months the months payers. We to

Steve improved a So as payers good well that significantly data said, their of and as have as on data inpatient are really us understand around costs get helps the both we utilization that exactly third-party where sense from going we themselves. coverage

And the we've certainly standpoint, book we've across all payers much of where we've reported. essentially have I in from kind a last where large thing is, pretty I think think utilization it's what closed the line with QX that balanced heard QX

So right that we line. in feel like X.X%

comes at Sean Our from next RBC. question Dodge

your Steve, much and financial medical the for strategic work? those mechanically, for how at period? exits those mentioned exit -- you how can or how responsibility expected the margin in Does is QX? are EBITDA full you to there a longer year? those then QX, Or -- do unwind benefit quantify members And

for Thanks question. the Sean. sure, So

the that. payer So the both XX, of the and is for effective our X we responsibility be an end from QX year completed ends talked contract expense it's this the perspective time exits in that in June And market that then whether from are will by effective the MA contracts I quarter. and about, that group

the further and payers no there's our run is of to very make closely with care. from there physician those. sure worked out that partners with continuity So We've

north The $XX about of of payer that benefits the totality arrangements I of talked million. is the series across economic

So in talked the that negative than PYD more offsets we about it QX.

in the we're that normal after would we're Sean our add cetera, make course, dates, through responsible only we'll thing for have exit. those for visibility go claim Steve, performance those not data, our question. we of right? normal through date, is, up to et way The days, the through your any performance settlement sure period Yes, complete dates the of and the performance the and responsible understand but during runout there is ultimate So -- won't I just to

I Okay. contracts the of these included payer know you the Or in And said these originally That's included? Are guidance also renegotiations that. to I'm in were exits just make be contemplated the these incremental good. clear. to would or sure were guidance.

are markets the retroactive group market, So the that of on was call. a guidance the increase incremental. this relief and year percentage last then about The for piece, in talked we was the included X only MA as initial contract Sean, exits premium in those the contract

we And updated so have added the that for into guidance been the guide. those year, the provided

Jack from The next Jefferies. Slevin comes question from

to at the a step class take maybe back look a XXXX of and wanted that. some just take I on

it that, at contract sure the how pull markets, to in better So can on lives couple of overlap anything you disciplined things of for glean a you seems entering you geographies based overall terms I guess the that for Maybe of and should visibility to comes track sense number is out is that some performance the be with large give year. you're nicely nicely. Obviously, that number class. in come a memberships on can terms will trend cost payer of your XXXX there staying the the guiding payers there one, existing of make you're levers that on the of case and on looking

the Jack. question, Yes. Thanks for

payer very very existing groups. that bringing make groups These that of sure been contracts, are X that. have in we ones teams in strategy have we current conscious states, So to we infrastructure, we're leverage growth comprising are around can existing which our X where strong really

out. going Kentucky, able and we're start So help be groups these in which as to Minnesota should that, in leverage to North Carolina,

year markets given our we're line of I think where around which we've operating be X even going believe that. environment in kind we the performance their is to historically in with started

we'd Illinois, be contracts. new is And we one standing in infrastructure adding are and new up then state, new which which

solid give that to year performance. X states should us X from think So existing I the have recognition ability perspective, pattern and

follow-up. Got color. And it. then helpful one more That's

have and you versus AWV Can that of or how versus bifurcating tracking is prior some you years business numbers maybe give XXXX historical overall between Just completion year-to-date trends? the around class. book

talked So terms identify the our with perspective that help from us around assessment most patients. doing the our our performance complex that work -- work the enroll the are PCPs, in I AWV about really directors Those our them an medical and supporting fundamentals an perspective. has and of clinical elevated we're in our orientation that work, both programs.

We enrollment instance, nice to in palliative should which step-ups started as and have inpatient our seen in for we reducing expense ADK. end progress, up programs our ultimately

So seen as programs. an we've terms we've executed seen, in to improvement enrollment we've our example, in the markets XX% of in that, within XX% a which about palliative

We that have as been work. of complex result plans have care around XX,XXX developed patients this a

we're and a So we're seeing I nicely, think year-over-year. step-up progressing

Hill is question Bank. Our Deutsche next from George at

It's color impact final your more what ] Can of bit ways the on a And on provide notice versus are [ for George. you offset the the expectation? the Matt little written shortfall. to

as thanks -- for the So question. I

around disappointed my were final notice. obviously we As prepared in I remarks, the said

believe XXXX. 'XX. 'XX. to as in interest from reflected into improved it providing. though, of seeing is the will the has in class who economic sort value payer that some seen in terms carry I we're of drive in what of have wanting terms that join it it the think, We're agilon are the groups We that We've done performance of reinforced arrangements of

well. through think I what's really and drive help focusing is So fundamentals going be us to our to manage our on our able performance

will flows as with that working us obviously final because around like are partners to through look what payer also well. very their closely our We bids

Barclays. Our comes next Andrew question from at Mok

in is Other certain second key Andrew. changes? in on aren't is Thomas on the changes that quarter as this of it year product in contract evaluating structure? topic are This or for working? characteristics XXXX. exits Back any benefit or member as a types What Walsh the those of the additional well more you're market making contract Or

doing for together the I we and we're decisions concert first, doing it So of our these any I'll in partners. say, mean, with question. make, thanks

us challenging ultimately was saw payer changes, relative we there 'XX. the I notice The utilization, led place this progression TBC year that market, factors and As of X-plus that for 'XX a in market. on in that in a then decision and to basis both that laid was this for out benefit geography, to that, 'XX higher final go-forward looked that terms like design particularly the particular, and that in are multiyear what for in limits

working to payer those that partners with of any And led out make with down did other if in And laid of our we today. decision growing to markets us operations. of and us, I additional XX so the that not and seeing our anything, geographies, like within groups just Class of you're do all want winding situation Minnesota we're We that existing in Kentucky terms Carolina. in concert join North see the in and

follow-up. today quick a benefits? And percentage your helpful. That's of What Great. contracts carve supplemental out

is in capitate is the part like for laying terms multiple and sort markets that. So about players have these been of we our been for able been of multiple current total terms premiums, of contracts I That able in able we've XXXX. them negotiations today, in negotiate percentage of of to to we additional have exposure 'XX supplemental all we've do be benefit requirements partners. What where for with cases, could payer expense or our we're to In other out cap what those. of our associated what with talked

element renewal talked I that about. strategy an it's So that of

ISI. next from Anderson Our Elizabeth Evercore from is question

call Patel Sameer around appetite let's sort there your cap different been carve-out, Could be it getting I from conversations whether know thing, a like Maybe you of Elizabeth from just it the talk it, payers supplementals, sort on with whether of for up corridor a This regarding exposure. arrangements is you're receptivity be that on has Anderson. of that's payers? but question. a XXXX on about sort following

receptivity. There been has

benefits. I think supplemental that incremental percentage to able premium thing. with we've not 'XX get just In 'XX, of those been it's associated a

started So of year this couple markets. it's already a in

you to look as it. around receptivity 'XX, think there I is

there's partnership. I value-based -- have how think discussion long-term our do with it's we a macro grow a you network them do into how sustainable and care on

Part them. impact XXXX. elements And so in is of you particularly the multiple the is of D of there's them, as IRA start one supplement another of with one benefits

their final bids into terms look the like of And as of making so what part it. that in factor they're back adjustments

I that again, we're expanding 'XX, that's grown. the in reflected our think see for 'XX. discussions the and only of has in for these can providing and value you the results So payers And interest in from terms

Got helpful. it. And then follow-up. one Super just

retroactive Or X like as of were any quarter? the sort are or through you flowed of was well, relief explain. what a benefit? or the there mentioning, is first benefit terms mechanics X X around In the the relief that Or if in of could you sort this

changes benefits to significant contracts that, payers to Yes. it versus that to payers back it go able we It and had established with year, the would have last was where bring were. with work what them their prior built require just did were our the we in we that and to retroactive that when in year through agreement to basically line that because able to expectations in quarter. approach relief were in talk basically back gave with about us flowed we relief of all No, were first where able originally we some there what we're some reach was

in different that we So QX. of situation yes, we payers that all had through had rolled of for that a couple

Our next Larsen question from David comes BTIG. from

in and seasonal utilization and talk previous for cardiology, would Can higher certain pockets Is of costs quarter. caught. there I about Shen from there you're factors This to a wanted Were a is flu more just oncology seeing? any more the cold on some color Congrats build on on you the intense it season, off helpful. be Just GLP-X? of Jenny it type question Dave Larsen.

for Thanks the Sure, question. Jenny.

sort of at referenced in levels the into April. stepping look that the to is we March January and I census pockets higher inpatient when data through reflecting spend, down related think and of I

So that's side. really the inpatient

I think we to an outpatient elevated levels perspective. continue see from

You're centers there. in seeing the terms surgery it utilization in of

drug, of is of terms spend. you oncology, seeing that part obviously, a big are In Part B

within which areas the those So in utilization first are we the quarter. are seeing elevated

about talk Can partnerships be helpful. that built have. Do the your with it. have in-house? data any any visibility would on with data lake? platform? do you helpful of Or get some there Is technology on AI just those color analytics color increased Are you some integrating And Got just behind in to it a updates you and technology technology? And the it way? your vendors? new was then platform that actual new of more Any third-party some have completely you you

It's hybrid a those really Yes. things. of all

learning format, We has us and have us. data lake does ways, the of been drive some point, operations your the AI market. in And way, the successful performance to that that management including for allow helps to and to data which by transitioned a our the machine us very innovative use data very

So that's great.

already and in party be pipeline, built a In internally. that data hybrid things terms would has software between using that a the and utilization our structure, new for data with and reporting of some financial environment of describe to some able use we'll overall financial visibility application we've drive combination to that that the third our of talked I we increased as around the about it sort data ingestion

So the that the from data our claims give improved improved data X for is to use and be to help using going those and structure also we'll a combination operations. financial us expense significantly significantly everything revenue, drive able to things estimating of to

utilization that as the suited of by doing pipeline our really a use between the well. we financials but way all is to also things give estimates relation sort utilize booking third-party internally influence well we're financial we've and that hybrid how us much the it's will data need. way, in now our to to application of been new a a with to our cleaner And that third-party think

We further call. the on have no questions

floor up. hand wrap Steve to will I to the back So

and of interest agilon, your continuing to in for Thanks, forward we look each with the dialogue you. you Thank everybody.

This today's call. conference very concludes much all Thank for you joining.