Skylight Health (SLHPF) 17 May 222022 Q1 Earnings call transcript

Thank you, everyone, for standing by. This is the conference operator. We would like to welcome you to the Skylight Health’s First Quarter 2022 Financial Results Conference Call. The results are for the period ending March 31, 2022.

As a reminder, all participants are in listen-only mode. the will of period. move conclude time call, speakers they permit, to today’s presentation the portion should After a question-and-answer Instructions] concern today’s would listeners I contain forward-looking to As remind certain may objectives. [Operator that statements including you which any like questions are earnings and call to that, statements, the long-term responses cautioned always, and release the in the contained should These and the cautionary in Company’s be considered in statement other Company’s MD&A Health’s conjunction earnings filings. with Skylight

the to subject performance call XX and reliance on Mr. conference and AM Health’s unless be dollars are will Forward-looking This May Tuesday, any Pradyum being uncertainties after meeting Executive actual required. like today, go except should does and stated. placed over hours Sekar. otherwise at forward-looking Skylight statements the I assumptions; website accordingly, Health as is XX, Health’s the call update be All risks Officer, ahead. could in to and be X XXXX undertake Skylight of differ undue Chief to turn to currencies posted Canadian such statements call. Skylight this within not discussed materially would statements. the to Please now not will recorded on conclusion

allied changing range care organization laboratory primary how diagnostic a focused network morning primary through U.S. to Ariel, period to walk the multi health ending joining morning you, subspecialty have of our to Thank a moment hop state here testing. and you Elinesky, health conference a With primary of Skylight healthcare committed practices on comprised Andrew who We call financial Health the for performance. will March this everyone, for from care first me thank and I the good a is you our us operate care services a XXXX. is quarter works today care providing CFO for in that XX,

practices are major improved qualified fragmented two we highly first, focused supportive these knight and practices within Through business and small a on white to market, and revenues Our issues to buyers. solving where looking solution providing national care providers bring healthcare a in is model to a looking primary and consolidate efficiency platform, U.S. independent practices. forward aim scale, easily to to and

Second, and to more we or practices value outcome commonly based care, aim reimbursement care known as realign the models these contracting. based to

XX Our enables patient. shift model, I visits model months. I’m to past $XXX focus $XXX patient the general, for between based accordingly. to over based per not of sorry, year, on a total risk, on care specific generate the to patient can a putting to year service healthcare and first them a of can the care payers with by the care designed This the traditional per patient full cost full am are that’s practice while of improving such where these $XX,XXX a cost contracts manage allocating care to as Where population the fee dollar, is expenses Medicare Value to of generate proud growing models patient health in from receive they some outcomes. reflect the paid contract. value and

now communicated achieved through acquisition and As we we objectives our have disciplined strategy. have goals a transformative growth

of one We insurers top with a the country. partnership have secured health in the

teams position in execute risk required all place, we’ve a the resources tools established with our the XXXX. to full now Advantage. are entered with now Medicare and pieces to organically have We grow. and have into in We And

first was the The busy a period quarter very company. us to for

and the required and we to that too some our and systems have to in platform, to revenue similar operate. and that implications of are implementation to focus tools cost of in systems number manage often the was cases seen integration failure proper and network. acquisition one integration Our operate the lead successfully continued the Far lack

a practices as EMR and the health month. medical with recently that changes that to human to decisions on overall indicators. tools and all business end process the improvement regards growth health first across now efficiencies and in platform accounting as we robust in objective financial happy and information to does systems more as this over announce a to record savings I’m workflow to patient the as in and of both decisions. quarter, that of tools XX electronic Neighbor us implementation the expenses place, on engagement system, rapid our and now our experienced single forma Health, implement, the managers accounting have and these tools quickly Our we’ve have a led drives various the need of to MD manage including well platform us practice as flexible back record our pro well now tools cost at through Further, past markets months With allow as Athena launch system synergies as like we the or just visibility the at workflows. provides onetime joined support It with network make reporting today, is and of been that improved be has many electronic with to resource a acquisitions move to the and and we basis. that will XX% volume completed certain launch in in cost end within begin our overall last implemented who or these

we QX in see we an While future to call, last continue as we’ll improving year, the margin. EBITDA costs higher quarters; expect were communicated earnings this on

out three that reflective of will announcements initiatives carry over still some expect saving these the We items made transition more some cost reporting cost exciting As we few as QX our of we from be to a past of standpoint. expense will weeks.

today which a over or market $XX is Health a America’s one wholly first subsidiary venture Systems, largest our at CHS, with billion joint owned Centene, cap. of The was trading pairs, Collaborative of

As to no efforts for we’ve get months over with team last a feat, ours to we’re and into enter the payer a theirs. communicated or neither nor large here our more, plans JV six for U.S. small

And the so the the on key everyone done, to I and to as of this the on patience JV more shareholder commitment effort call. we later time, on both getting the sides share from this for JV thank base this worked this like would towards our their milestone. I’ll and patients

Advantage acquisition for a MD, the was trailing announcement XX practices. U.S. at full group Florida big care more Medicare XX second with million And Neighbor a primary XXXX in of importantly, lives risk, approximately revenue approximately month nine The

to move the the is in from lives the the full service in five begin practices look lives, that accelerates the transitioning over into it and Medicare $XX,XXX X,XXX we for our market leverage Today per today’s between X,XXX one roughly member And plan from medium further largest ability originally covers ‘XX. that risk can goal established the lives will can year, have that it long Colorado note service contracts acquisition with practices. from ‘XX, well. Under per realize important after the along we where old this to I’ll time, term affiliates XXXX out. payers in leverage over for benefit three U.S. to Andrew we Now but also affiliate as Medicare come as to Medicare with model into Advantage Humana of and X,XXX alone. overview. on acquisition the is full to growth a to to XXXX model JV to more from an and This where The Medicare into model revenue Advantage to can our as alone a to and on risk explain year, in well. financial we from both CHS Neighbor our and But with an and Medicare estimates contract contracts the economics continue over These this we goes at substantial to shareholders a the be the fee are how Skylight The these of to and how will these Neighbor. in on own fee bolster and risk Pennsylvania both of year. to model. full and can program. benefit goal from agreements, density affiliate a means the course we to grow impact for EBITDA learn can we allows This increase neighbor Jacksonville as XXX years look is our and model today XXX capitated today CarePlus a to markets get might $XX,XXX a were we planning

So with it you. to hand Andrew, over that,

again And Thanks, Prad. joining everybody once for us you today. thank

spoken achievements and very far. with months As so Prad company’s we’re the pleased mentioned, last year XX the

revenues the first comparable the and first quarter I making to the at the via $X.X in secondly, quarter last in investments plan the the electronic reflected acquisitions, mostly year financials can here, made care primary million, system which timing COVID-XX business. business continue results development our of X.X for with reduced QX, partial in the quarter Jumping record are million cases QX within to last of QX just revenue over to impact the of ‘XX to and and line care for the growth with this business our of when occurring million of be medical in in a more QX and our and go new the financial mainly optimization and respectively in, the markets. the just book of systems comparisons first came acquisitions note, XXXX came be to the year attributed The prior that our profit with been nine we’ve we’ve year. for reasons the reduction a gross primary Please two post the This $X.X million our a reduction compares we of quarter my expansion only the will over due in quarter. of urgent X.X in considering operations quarter. our makes as half, and through The acquisitions as implementation in visits of that prior revenue

sales reduced Our in were when not prior cost offset to the difference But compared the quarter. of revenues.

as this reduced previous first expects an see line to improve Our XX% company number was versus the outlier. for for quarter quarter. this quarters service coming the gross margin In at The the in was business came in XX% fee and

part Our of just under loss this QX. in in and came relatively X.X in the EBITDA as million Adjusted reduction about realized for for that reduction margin, a in recorded in came will at costs similar an company EBITDA half the allow wages a million million further X.X already operations of us expects primarily efficiencies and year, offset at QX., gross said, was addition, as integration X.X platform at the on and QX from development that unified office revenue from million QX. in which in compared versus robust this of X.X versus going impairments platform $X.X savings lack remained of of at costs The as well a Normalizing levels we million. in as were more just acid admin to of million a yearend large Prad remained X.X and expected to impairment forward, and quarter. million synergies by in for savings. in Despite improve this flat, salaries

strong revenue division. generate our improvements to continue also research from We

and in the FY related model performance EBITDA. to primary were the public listings today, expenses versus market Based been negative and have contributors practices year to financial the remain on pace integrations the ‘XX. a outperform to ‘XX admin incorporated profitable an on from We’re operating in

has be with mentioned, past As all are the already over this months reduction company efforts, to quarter. major vastly a seen few integration and improved the to compared which projected Prad cost

Moving on balance spent over X.X From closed to a investments. operations were the over balance with the $X QX main quarter the and sheet, just of changes we million. cash million

Neighbor to Just But Subsequent outflows FLC with partners, for principal slightly net million was facility we spent end, were received on million MD. lease a lender million on million and dividends sale. These concurrently X.X as under spent debt closed preferred Prad deal the interest a of mentioned, XXX,XXX by U.S. and completed $XX as offset X quarter New York spent part shares. business insurance a on acquire liabilities. legacy on quarter and to on our based a another credit

acquisitions. debt pay U.S. mentioned of by company total from was company million acquisition future down $X fund the and this transactions. million As to consideration XX drew XX available And still facility the The million. to Prad the has cost of draw from us cash facility a the to with further down the for the

for mentioned increasing the outlook of internal We a starting operating we’re our operating the corporate growth back a full to this until efforts, the and XXXX be there it And of per we With Prad. way to addition of to company through anticipate Neighbor do for longer when and as boost that in service continues track the pipeline new of rates, offices. align completed, these for MD as a our to guidance the the Prad off infrastructure QX in revenue as Moving to by payments. that fee and we expected value contracting year. recently, in end quality record earlier, get mentioned, will XXXX the out material with completion holding know of profitability of increase revenues all just is based to synergies by across expected our with shift improvements patient XXXX of you year annual of towards revenue well outcome I’ll costs as further increased that, and and the working clinics turn And build organically in other decrease M&A the our considering business.

Andrew. Thanks,

the going forward of areas. So be Skylight. really key our within existing and One, operational is practices. Two, efficiencies on management to integration into continued our focus the going MD Neighbor four

these can starting want of Neighbor acquisition successful with fairly most efforts, value going Advantage the The to JV we’re what from and benefit and Florida a can going get shareholders with expand you Medicare large next from Medicare care our and JV is it As two questions means forward. acquisition model focus to began with see a Humana we in based to steps MA is as integration. on both expansion both I imagine contracting programs with the CarePlus. the on how MD CHS, Three, our four, and all frequent the

at down years, under here the management coming to this minutes operations turning the can call to So how before CHS quarters I’ll few recipe groups XX programs, patients payers. payers. is health improved providers that benefits for cost an to growth take risk take with that of of over on CHS means What a we shared is and savings on patients, been and and quality helps look improvement and healthcare of this primary care their a savings end these, via help break organization both provides understand ownership that has then the drive with the Q&A. their services perfecting XX realize our in or with

before. also look programs discussed improved that CHS, from these will of benefit two Some capitated payments accomplish JV we’ve goals. to the With fundamental

value care first The is contracting. based

experience means chance to with these CHS, of getting across also full otherwise enter contracts to contracts better a size stronger a rates better if as but better platform Skylight conversations these This and payers will risk the With and of contracts were alone. negotiate getting Skylight multiple markets. have

revenue means I medical both will but we the not and will This significantly that need resources in and that to to patient and be talk for would bottom how expenses also in we’ll knowledge minute. win shortly. a will these against our the at Since line JV. and translating and means while has more the improved currently, begin contracts the look recipe Performing to only contracts performance focusing on contribution the that is benefiting under success from to to here about quality through and contribution, past, access that Skylight this have infrastructure able the to to them we risk contracts, the protection, improve explain EBITDA able Secondly, downside get risk to CHS, that JV down knows care. an full keep as

also from continue better overall improved While services, care our from now they to benefit the patients health can provider. receive their care

and that look future these and opportunities Advantage updates the the contracts As objectives goals ‘XX. expect and the already have the the space teams both form forward towards Medicare shareholders and will term in of Medicare from to begun we for JV, working in new near be they in

risk the means on goal I’d for service Neighbor Medicare fee for that and touch as practices this the Next, we’ve like opportunities communicated for Advantage, based for revenues, Taking but line also growing materially full to means on shifting contributions value what care and top Skylight. improved our for acquisition MD into something EBITDA.

few a a to program take how high provide me minutes Medicare level Let with Advantage the works.

means payers costs, every on clinical specialist risk costs, put panel. cost based refer that of healthier, Let’s Humana expenses the of Advantage a on a or expected risk manage all care, Medicare The based on the the risk hospital care. the or risk look a keep total for of opportunity for will or patients, to based score of a health an What costs, upside cost states, receive at go total I’m patient score an for our is coding costs. includes is our a risk and full level complex this patient opportunity patient annual fee, ability payer cost I to pharmaceutical also like group, score. higher care, the based complexity Centene. means or different providers to score in capitated a care. have year. benchmark an to patients our patient need we the higher assign drug on a In provider they higher offer risk risk rate, as our on lies. or the The the This When The referring to plus care on benchmark or that higher determined an

here use let’s to describe some numbers this. So

the per benchmark a what From rate all that receive year. risk let’s panel patients done $XX,XXX per per calculates of that with our average associated the $X,XXX on our As annually. at means That an that of Skylight patient. example, case, in member per the medical sets from quarterly month. be this is will costs member can score This assume we payer. a have payer or monthly, This

the a see $XXX monthly per year. per capitated assume would a member This Let’s XX%. to medical $XXX is rate Skylight addition is X% year. the to member per effectively costs or per based which usually gross $XXX margin are of on payer an

The model realize full is standpoint your for model if for fee to typical a minus a member So of a margins profit of see you are gross differs $X,XXX you’ll This roughly which XX% this typically and we contribution where providers the year. per your type profit gross accounting fee for approximately a Skylight fee service service gross a a greatly from $XXX in for per follows would a service. revenue, margin, report gross is practice how effect, principal year as from risk XXX sales, models related the which costs. your cost On XXX medical your of margin. other gross recognize

percentage is more. contribution So significantly less yes, in model, full a the while the contribution is dollar risk

a about a You’re XXX talking XXXX versus year year.

this while continue On to continue dollar as the believe EBITDA significantly we the line. organization other hand, will where to bottom is drive more to larger, these an amounts be

This certainly by a in a improvement that continue can good. gross to a to reduce from profit Skylight the perform medical JV improvement to these we see well to like against say direct to improvement. less CHS means model or year, being; where an or continue to to medical contracts, to thereby XX% costs also margin direct we well results to all say looking and As patient’s surplus than we from contribution of costs and XX%. And per doing do expect can we XX% leveraging our health with contribution things the

over both relationship we currently fee growth our future we ‘XX, plans income within in practices lives look to to at our rest have As our can with but existing plans CHS market. Jacksonville, Further traditional organic look increasing for Medicare Medicare patient at Advantage CarePlus Humana service. panels from the also the other ‘XX, XXXX and we and expand looked in where and of

our growth forward We initiatives. to support and look to also ability grow these

and price current the we the of the highly that a XX in. market we last alone cognizant value that that is months. that and are bearish recognize reflect growth in ourselves the market does having we’re have share this not to not a We brought find business We in

business pathway our translate we costs focused the as while all to operate turn cash bear highest quality and will build benefit not does unfortunately practices shareholder on and opportunities to value recognize immediately we We responsible It company continue is we’ve our a to and to can news to fiscally patience. elbow while grease, committed of we’re remaining provide as our will operate continue take that it and transformative something on a are we a It profitability. not our continue into allow on environment. past patients. growing shareholders. improved committed executives Most ensuring a While will easy And access such, to. care be will remain growth. as to believe capital in working and line, focused also to commitment, for that focusing that to today’s on seen patients market as take are the We as to management, that us explore and take that and company top

options debt growth JV based of facility remaining partner, with commitment committed and value all continue reliable we large moving and initiatives, care. towards a to a U.S. a support a While leverage still strong strategic the pipeline new continue to XX deal company we flow; to for will million explore

ready are and We XXXX forward to and beyond. drive this company in

back any it for with you to turn that, Ariel, So I’ll questions.

you. Thank

now Byrnes comes answer Instructions] ahead. will Our Capital of question the session. We Northland Carl Please question Markets. and first begin [Operator from go

and the progress. on congratulations for your question Thanks

that you mentioned with quarter savings. first mentioned be pro achieved? fully be to what you Principally Thanks. that reflective third more expenses cost saw savings over that lower in frame expect are be quarter do what would to you You to expected the mentioned to those achieved and Andrew time Understanding respect expect be or them to these than do XX% where ‘XX. we XX% the forma

that. for thanks Carl, Hey,

coming of savings to a opportunities the cost side see some reduction in staffing. the of practice both you’re right look terms to that to level So as going

some corporate investments as we’ve well. of some the of those systems You’re that savings going an those we see in to the reflecting the cost costs systems that organization of of implementation see from But put to you’ll of changes come some support as the place. of the implementation also made

look opportunity how looking well, offers on It’s at one membership where the factors multiple happen be are and also that we continue where forward. is at investment generating well, of can as done to at the a sort to as of changes ability we so of through newest within chat significant growth also as this will ability also implementation report sort corporate organic another those evolved But growth forward still in we our we we entity to where we another and margin. continue continue level, changes opportunities start thing going opportunity look partnership to some invest believe neighbor, to continue of We’re roll that growth And and a and will be evaluated capital And that specifically, look continue now to as these a our an MA to operational that positive growth can welcome these come alternative overall. where as saying JV of there’s at cost at will changes. certainly sort year. to clinics with I’ll be from the offers both most and the membership MA teams

a over be eligibles eligibles, you really the very MA Medicare might And convert full question. to helpful. XXXX there’s up or to able How risk? follow eligibles one rather, And in well the mentioned quickly think I in Thanks. Thanks. market. quick Jacksonville, That’s you to

course. of Thanks. Yes,

the that I from health so suppose. comes plans, answer And

the mentioned, I as along based on some team have ability enrollment. leading efforts of we things part to level of one so mention from annual people Skylight move for policy national of each of So, with has a again, plan value neighbors their care transition is should sort this greatly have risk didn’t the now to and very also smart full joining course, health own into that our are I benefited having

open can As be during a I which CarePlus enrollment an understand currently of it course has the enrolled calendar year. period

QX can the annual during around plans year. enroll an only health of which happens Some period enrollment

plan everything onto days so So process our Jacksonville practices we because as for ‘XX be how our right there. hold contracts that XX same to whether will get enrolling typically see or happening course, patients think We to that the ‘XX. do around able enrollment, is, like typically most now like in can takes to it. to to off some annual existing in say start we enrollment of I that’s but should XX payers we But in

congratulations And Great, thanks. again.

Thanks, Carl.

question of Please comes Our next from Sarugaser Rahul Raymond James. go ahead.

Morning Andrew. our Thanks for so much questions. as taking always Prad,

line, a what COVID that implementation little just EMR top were So bit of in this affected the identified revenue quarter. you

also into to just knock for X? that should you on using that the deal MD Neighbor should how And recognizing be question Is as So QX the extend the revenue close on we into that to wood we continues the that remain consolidation on through see that quarter? decline? playing COVID May QX that particularly revenue, date given for

Rahul. Thanks

I’ll it comments turn over the on for me half and that part. let the second to there Andrew me first of Let answer

first here to Rahul, note apologize. sorry, going with I’m So the regards on Yes, to. the I’m I COVID. EMR I’m made part guy sorry, to in, okay, you that be I asks

So let’s about separately. two talk the

onetime volume. of I EMR, a that inpatient consider more in as reduction So

providers are to scheduled computer being you’re you probably charting our on, on As and so and forth. documenting can patients terms in new are we system going registering with imagine, take and will but volume, a patient a little of patients also, longer a and because little charting upfront and take new in a all reduce shifting daily documenting that are system providers the time when

we of going back as And manage So their and to system from flow. patient comfortability seen more that a that’s the be in take and out forward, manage bit which on small of March have that come that ability practices into means bit volumes Colorado. saw But in terms a there’s of to what little reduction started the patient and we’ve we rolled start and through February sort point Florida ability with to finish, a of that. new providers to to the day,

that So think I beyond. continues QX don’t and on impact in

of that’s terms something the just that we’re visits, COVID-XX In mindful.

away something lower Of primary visits see reflects past care our exposure. health that volume come positioned model probably course, February, starting the October, now care when But believe to you that heightened so not to again as have in would urgent sector back piece so look six urgent it’s primary they’re where care of variance. non-pandemic care now why look you’re into we a the from that visits our adjust at care of seeing overall starting seeing not we we’re September, at we’re patients what ability with shifted the November, important and numbers Omicron months, come be fearful you’re to today in and it’s see January,

I it So the Andrew to that’s for you hand will other that. back piece. comments on

question the And Neighbors, Thanks. date well second. Monday so regards for your the on transaction as on closed of sixth, with the we but effective the was

benefit of of getting month the entire May. So we’re effectively, the

two for And QX the to thirds of quarter can us. so basically you the results count in on show up

Thanks clarity. thing. the Sure for

like. where essentially good deal, question thanks, us second harking a am you is, towards the for the Prad conversion patients that that acquisition, guys care. my color the sure back ACO of of execution for you building looks outlined for And what Centene I So to are course, now with infrastructure of managed

bit so this of All through time all take said, your going flow to I assume this it’s of on for would of contracts little a to forth. and so executing that

as converted material an of do a revenue a internal estimate you when result you inflection these So have of expect patients? on

components like all that. we’re two to said there’s I to Yes,

side, some we course might depending patterns. happening enroll the Advantage these year, on to the the be during ability some Medicare follow tend they Medicare, year Medicare plans of the and health Medicare On in a typically, ‘XX. of most the to But to calendar or it see things Advantage, enrollment ACO traditional with

in put this into efforts place sort ‘XX. of we So whatever gets QX, reflected year

when probably we’re acquisitions believe our risk well to you’re contribution is January that reach relates making, will will So QX, for off I say specifically the inflection from those have into moving current lives of but as coming to conservative kick if safe see and to XX. we the ACO capitated revenue enrollment looking be more a when as outside you’ll were a models, in that’s ‘XX more patients, to I the of greater the organic refer

Great, thanks that’s questions. today. our quarter. with for next of best And all taking luck me again the for And

Rahul. Thanks

comes Our Yue Ma ahead. Research question go Please from Capital Corporation. of Mackie next

Prad morning couple have Andrew. of and questions. a Good I

should third expect it forward the type gross if in Firstly, terms the pipeline, helpful company’s financial because etc and you can kind the reasons highlights, under value secondary transactions in could you you what noticed was be I talk based of release of the program terms the strategic going we acquisition I for and company’s size, of about of wondering clarify higher on margin states margin. models the the BBC care gross please in press the would

than lower will risk models the under FFS margin it gross outlook, be in However, much full model. discuss

That’s Just clarify you. all for me. that. wondering Thank if you can

start your maybe second me then your back I’ll question let first flip first, to question. and So with

margins certainly, a higher. are in Gross margins model to you be the gross with will right. fee for So regards service

let’s value gross second So look of is two is one One percentage margin, gross margin. of at variables.

track So in percentage standards look model that full earnings that will will those higher And and something will just most industry independently. is segment in typically be be also capitated of model. that fee for and to future service so you gross as likely a follow two margin on reported can risk

is percentage capitation. higher, XX% to risk just call here service, going I’m for round XX% for the while a use fee Now, it numbers

value. look dollar let’s at Now the

be, If annual revenue approximately odd XX% and dollars. value a XXX per would your year is XXX patient

fully look your capitated XX,XXX, a is value margin model at you gross at year $X,XXX. a If

that risk expense out. on lower, But is their medical cost the dollar keep course, risk we’ll ability lower those there’s we contract and and percentage earnings, ability segment with the improve from your look that as full greater, again, while expenses. your a to available capital healthier, patient life the same So your full the of run in on to more based value significantly to the to clarify contract. premium regards of future on to overall margin and have patients to from you you’ve is the got business, operate opportunities so to the And

the communicated terms to sometimes on can anything you pipeline on question larger don’t deals, think work of robust. acquisition We’ve second tell, acquisition for The continues our be always we us that pipeline, I changes in deals. materially as smaller sometimes on

are those more these of looking lines. and Medicare just any specific not much necessarily or We transactions. at But strategic how now and evaluate Advantage we we’re

practices patients able of care the have leverage eventually on now impact most the in Colorado keep health focus Florida by Pennsylvania state at and to and primary we well. we continue to of the acquisition can post to our states of as where the think the least in the We being then

arrangements patient’s through Our risk focus opposed or ability that just in so to MSO these the four we fee more health service arrangements capital traditional have a model. to to for better contracts on bring as

goal point our be bringing call to that successfully neighbors have. will we communicate to we’re also continue the forth. their culture to keep network while and we we’ll going time So And and number pipeline it the onto have so and same discipline the in I’ll teams we remain. and one acquisition at continue of integration this them that that deals in Skylight evaluating

questions. hopefully So answers that those

Yes. That’s That’s Thank very me. helpful. from you. all

Toby. Thanks,

next Partners. Wealth Our Rob Goff from comes Echelon go of Please ahead. question

you the Could any that you with and the And perhaps past? revenue you associated management for gross morning. economics those forth disciplines question. for to margins. member Good variability Also, risk the and been putting thank the taking seen talk margins has in thank per my

question, appreciate definitely that I Yes, Rob.

been contracts, board course, forecasting not or on years rates last successfully they especially mind, to a the but medical expected time also spread start course, you’re in you some that forecasted. size Skylight, these population their be accurately, when with under leverage density of becomes and over operating risk or expenses, to we savings This could experience with at had with. lot reduces There beat very at new that five most of cases, don’t at rates at the as bigger, the of more do only beat overall, glad risk, you’re expectation based patients. what having successfully Neighbor when But on I’m standpoint and keep and their out Neighbor out looking your able to of over original it you what coming for forecast. because patients that as team population their So variance, their looking they in of of effectively ability their patient the have populations with percentage savings has a call expected from

a out and on conditions patients their can we we’ve being benchmark And putting positive expected able I seen significantly say, far, then lives where a what us allows Neighbor an in I current secondly, their through and to we’ll should is impact it to down for matches coding robust be Florida, infrastructure practices. of and that our see so, like we in management that these for is patients by our of and the get where our be better here, impacting of expanding at in up margin, might the it’s what overall infrastructure treatments around their have as on they’re continue the that to keep care a care today to leverage robust both sort growth are, a the what to us that goal And and of so the receive to cost areas management have said, to accurately cost than lower conditions. to really of

you Thank perhaps stands, growth? you the and Neighbor terms as and it to within model of as in expand in do talk of that terms you affiliate of look could to also area an Okay.

Yes, course. of

mind, think always in just been an always model. clinic our I has Now model keeping own

acquisition, necessarily had something acquisition to the is of value our piece that acquire. we that’s for affiliate And so a that increase the us to piece came not along with

think great with So are, The party models affiliate a not third providers their that of own relationships do it’s in we I model. course practice.

surplus Medicare payments, case of of ones. And Advantage similar to the managing like that Agilon, in the risk. be manage while It’s options an do few our their stickies affiliate is has so Medicare that for model or a time. they well model providing and Advantage, we of would players in But participate over little we received that wouldn’t own model other a And that. contracts the model as saying basically other receive that and and affiliate a in cap we bit percentage mind, is healthcare benefit our a and and

their consider affiliates on promise, board, it look relationships. that grow of is these of integration the or going But to to us be as assessing sticky we show our there build And wouldn’t the so to why at performance affiliates looking long without to needs. looking who efforts that’s forwards the those again it’s a certainly managing look affiliates exit, program. an the team don’t to opportunity through effectively long approach at part I to to one we layer affiliate see anyone that’s If for term, of affiliates continues driving operational the also there’s might they opportunity But at we in a business coming be got Neighbor the MD that’s term. is those with the want looking a now team where of management reasons an could Certainly now partner could the into. team exit they’ve why

And see in look we to to able so in the the at least be program. what we’ll leverage near can our assessments to term

Very you good. Thank luck. and good

Thanks, Rob.

go Our Frank Capital Street next Please comes of from question Lake Takkinen Markets. ahead.

cash about for million Hey, as I integration. liquidity there? to adequate get to taking do guys, provides thanks the U.S. got sheet. on $X the you balance long wanted I guys I’ve sheet process the expect How start MD think question. take to you my integration with the at Neighbor balance

so was working we the debt for purposes million facility tranche that So you’ll receive the established. consider for $XX X first or capital from the million

have and you integration get long how there? So adequate liquidity the to

from fairly at system with members. their mark We’ve as to organizationally, prior day might like the I we XX days, own integration begun. team day integrated acquisition things of some plan looking game quickly as probably we that Athena’s implementation. stretch a is sometimes our things mean, implementation, we’re to and of But of be XX can company many their business good one. already Frank, just or work so Yes, the in just what maybe aspects operationally, And had some chance these have has But them. the already of timelines will the understand attached with

And hopefully to significant portion with the terms achieve did resources, closing a acquisition standpoint, decisions within management, move to neighbor teams possess and overall day now a looking we cycle didn’t address people place we’re Skylights day continue call to that to some attached look towards from and with I come to period. I members opportunities integrate Neighbor and a and this does I said, There let expense in in prior have of regional the operations, a both forward etc. regarding me team starting are XX sorry, human that off of infrastructure systems, period. to so leadership with balance see even sides it, just from like while areas integration to it plan cost revenue costs significant am infrastructure Yes, resources on those to what integration out strong we cost like have these we’ve to our are sheet. mean can savings XX and we need we

Andrew, for to that? I management you there. get So else working add like its know going any be don’t cash is everything more to and want to we’re the me to if to answer be hard able

made. cut I’d we inclusion We with receivables, to I This although about is some it really with a of the just done receivables working But capital. add working a and deal acquire think the capital was an with we’ve the on or working that, the cashless we example, came for us was Frank capital. give and not acquisitions handle working Neighbor do off which acquired only capital, There is thing receivables payables. did basis. that

we have So period. over we manage that the that capital do do to our integration alongside tend kind ability of own and to that working

progress. Okay. That’s there. I Congrats helpful. on will the stop Thanks.

answer remarks. today’s concludes over any would like session. closing and I conference back for Mr. turn Sekar the to question This to

everybody’s again, participating and today’s And really Ariel. time appreciate call. Thanks, I in

our going we convey the able about we’re hope of always, and have Skylight excitement forward. some to prospects As we

wish to out You information us. about look speaking of can and should to you always we contact company course learn our a more on you our forward wish again everybody to reach and to Thank you. day great more Skylighthealthgroup.com website, I soon. details

today’s conference call. This concludes

a lines. Thank have participating you day. disconnect You and for your pleasant may