Financial Performance - Total revenues decreased by $55.5 million, or 18.5%, for the three months ended March 31, 2024, primarily due to a decrease of approximately 23,000 beneficiaries aligned to REACH ACOs [251]. - Net income from continuing operations for the first quarter of 2024 was $5.7 million, a significant improvement from a loss of $53.9 million in the same period of 2023 [245]. - Adjusted EBITDA for the first quarter of 2024 was $2.5 million, compared to a loss of $5.7 million in the same period in 2023 [248]. - Operating loss improved to $(23.1) million for the three months ended March 31, 2024, compared to $(44.9) million in the same period in 2023 [281]. - The company experienced a net loss of $4.2 million for the quarter ended March 31, 2024, and a net loss of $1.3 billion for the year ended December 31, 2023 [41]. - The net loss attributable to common shareholders for the three months ended March 31, 2024, was $28.5 million, compared to a net loss of $186.9 million for the same period in 2023 [109]. - The basic and diluted loss per share attributable to common shareholders for continuing operations was $(2.31) for the three months ended March 31, 2024, compared to $(9.04) for the same period in 2023 [109]. Revenue and Costs - Total revenue decreased by $55.5 million, or 18.5%, to $245.1 million for the three months ended March 31, 2024, compared to $300.6 million in the same period in 2023 [281]. - Capitated revenue increased by $11.9 million, or 24.1%, to $61.5 million for the three months ended March 31, 2024, compared to the same period in 2023 [287]. - Medical costs decreased by $63.2 million, or 24.3%, to $196.9 million for the three months ended March 31, 2024, compared to the same period in 2023 [313]. - Medical costs payable as of March 31, 2024, were $157.6 million, slightly down from $157.9 million as of December 31, 2023 [53]. - The company incurred $196.9 million in total medical costs during the three months ended March 31, 2024, compared to $257.6 million in the same period of 2023, reflecting a decrease of approximately 23% [53]. Operational Changes - Operating costs decreased by $12.7 million, or 16.0%, for the three months ended March 31, 2024, primarily due to a reduction in share-based compensation [252]. - Total operating costs for the three months ended March 31, 2024, were $66.8 million, a decrease of 16% from $79.5 million in the same period of 2023 [45]. - Operating cost ratio increased to 27.3% for the three months ended March 31, 2024, up 800 basis points from 19.3% in the same period in 2023 [283]. - The company recorded employee termination benefits of $58,000 for the three months ended March 31, 2024, down from $766,000 in the same period of 2023 [49]. Consumer Metrics - Value-Based Consumers served decreased to 360,000 as of March 31, 2024, down from 373,000 in the same period of 2023 [244]. - Enablement Services Lives increased significantly to 109,000 as of March 31, 2024, compared to 27,000 in the same period of 2023 [244]. - The company continues to advance its provider enablement business, serving approximately 109,000 consumers in the first quarter of 2024 [271]. Debt and Liabilities - The risk adjustment payable liability was $279.9 million as of March 31, 2024, down from $291.1 million as of December 31, 2023 [260]. - The remaining risk adjustment liability as of March 31, 2024, was $279.9 million after paying down $11.2 million of principal in the first quarter [41]. - As of March 31, 2024, the company had $66.4 million of long-term borrowings under the 2023 Credit Agreement [298]. - The company entered into a $350.0 million revolving credit agreement in March 2021, with no outstanding borrowings as of January 2, 2024 [325]. - As of March 31, 2024, the Company had $66.4 million borrowed under the 2023 Credit Agreement at a weighted-average effective interest rate of 15.00% [114]. Strategic Initiatives - The company expanded operations in Central Florida to serve additional ACA Marketplace consumers, demonstrating a capital-efficient growth strategy [270]. - The company is focused on long-term, sustainable growth of its value-driven, consumer-centric care model, which is seen as a strong alternative to traditional healthcare approaches [238]. - The company completed the sale of its California Medicare Advantage business for an aggregate purchase price of $500.0 million, effective January 1, 2024 [36]. Shareholder Information - The company declared $13.2 million in dividends from regulated insurance entities to the parent company during the three months ended March 31, 2024, compared to no dividends in the same period of 2023 [324]. - As of March 31, 2024, there were 2.1 million shares of common stock authorized for issuance under the 2021 Incentive Plan, with 1.0 million shares available for future issuance [90]. - The company issued 750,000 shares of Series A Preferred Stock for an aggregate purchase price of $750.0 million on January 3, 2022 [101]. - The company issued 175,000 shares of Series B Preferred Stock for an aggregate purchase price of $175.0 million on October 17, 2022 [105]. Warrant and Compensation - The company recognized warrant expense of $2.1 million for the three months ended March 31, 2024, compared to none in the same period in 2023 [284]. - The company recognized share-based compensation expense related to stock options of $6.8 million, with $20.4 million of unrecognized compensation expense expected to be recognized over 0.9 years [93]. - The company recognized share-based compensation expense related to Performance-based Restricted Stock Units (PSUs) of $6.3 million for the three months ended March 31, 2024, with $5.4 million of unrecognized compensation expense expected to be recognized over 0.2 years [99]. - The company reported a warrant liability of $11.9 million as of March 31, 2024, down from $13.9 million at the beginning of the year [61]. - For the three months ended March 31, 2024, warrant income was $2.1 million, with no equivalent liability or activity for the same period in 2023 [117].

Financial Performance - NeueHealth reported Q1 2024 revenue of $245.1 million, with a net income from continuing operations of $5.7 million and adjusted EBITDA of $2.5 million, indicating a solid foundation for profitable growth [2]. - For the full year 2024, NeueHealth expects total revenue to be approximately $1 billion, with NeueCare revenue projected between $310 million and $320 million, and NeueSolutions revenue expected between $690 million and $700 million [4]. - The company maintains an expectation for adjusted EBITDA in 2024 to be between $15 million and $25 million [4]. - Total revenue decreased to $245,095,000 for the three months ended March 31, 2024, down from $300,550,000 in the prior year, reflecting a decline of 18.4% [23]. - Operating loss improved to $(23,102,000) for the three months ended March 31, 2024, compared to $(44,872,000) in the same period of 2023, showing a decrease in losses of 48.6% [23]. - Net loss attributable to common shareholders was $(28,518,000) for the three months ended March 31, 2024, compared to $(186,905,000) in the same period of 2023, a significant improvement of 84.7% [23]. - Cash and cash equivalents at the end of the period were $249,430,000, down from $2,002,250,000 at the end of the previous year, a decrease of 87.6% [24]. - The company reported a net cash used in operating activities of $(48,717,000) for the three months ended March 31, 2024, compared to $(615,024,000) in the same period of 2023, indicating a significant improvement in cash flow management [24]. Cost Management - The adjusted operating cost ratio is anticipated to be between 15% and 16% (excluding corporate costs), and between 19% and 20% (including corporate costs) for 2024 [4]. - The operating cost ratio for Q1 2024 was reported at 27.3%, compared to 26.5% in Q1 2023 [14]. - Total operating expenses were $176,828,000 for the three months ended March 31, 2024, down from $241,567,000 in the same period of 2023, a reduction of 26.9% [25]. - Total operating expenses rose to $63,811,000 in Q1 2024, up from $56,043,000 in Q1 2023, primarily due to increased medical costs which reached $27,436,000, up from $23,722,000 [39]. Consumer Engagement and Services - NeueHealth serves over 460,000 health consumers through owned clinics and partnerships with over 3,000 affiliated providers, emphasizing its commitment to high-quality, coordinated care [20]. - The company expanded operations in Central Florida, focusing on proactive consumer engagement to enhance care delivery [18]. - As of March 31, 2024, NeueHealth served 360,000 value-based consumers, a decrease from 373,000 in the previous year, while enablement services lives increased significantly to 109,000 from 27,000 [30]. Revenue Streams - Capitated revenue for the three months ended March 31, 2024, was $61,466,000, an increase from $49,548,000 in the same period of 2023, representing a growth of 23.5% [23]. - ACO REACH revenue decreased to $171,811,000 for the three months ended March 31, 2024, from $239,807,000 in the same period of 2023, a decline of 28.4% [25]. - Total segment revenue for the first quarter of 2024 was $73,623,000, up 17.5% from $62,679,000 in the same period of 2023, driven by a 24% increase in capitated revenue [39]. Future Outlook - The company anticipates continued exclusion of certain non-GAAP adjustments in future disclosures, which may include share-based compensation and restructuring costs [33]. - Future financial outlook remains uncertain due to potential non-GAAP adjustments that could materially impact results [33]. - The company is committed to enhancing its market position through strategic initiatives, including potential expansions and new product developments [35]. - The company is focusing on restructuring efforts, which have led to a 4.3% increase in operating costs despite a decline in revenue due to fewer ACO REACH aligned beneficiaries [43].

Financial Performance - The company reported a net loss of $1.3 billion for the year ended December 31, 2023[870]. - The company recorded a net loss attributable to common shareholders of $1.2 billion for 2023, compared to a loss of $1.5 billion in 2022, with a basic and diluted loss per share of $150.94[903]. - Total operating costs decreased from $354.4 million in 2022 to $287.1 million in 2023, a reduction of approximately 19%[834]. - Bad debt expense for the year ended December 31, 2023, was $27.4 million, primarily due to a care partner filing for bankruptcy[859]. - The company incurred medical costs payable of $2.4 million and $11.2 million under contracts as of December 31, 2023, and 2022, respectively[823]. Regulatory and Compliance Risks - The company is exposed to risks related to compliance with federal and state healthcare laws, which could result in significant penalties and reputational harm[426]. - The company may face challenges in complying with evolving privacy and cybersecurity regulations, which could impact its operations and revenue[431]. - The company is subject to increased scrutiny from the U.S. Department of Justice and the OIG regarding healthcare fraud, waste, and abuse, leading to potential investigations and penalties[442]. - The company may be subject to penalties for non-compliance with healthcare laws, which could adversely affect its business and financial condition[456]. - The company faces challenges in complying with evolving regulatory and legislative environments, which could adversely affect its operations and results[454]. Internal Controls and Financial Reporting - The company has identified material weaknesses in its internal controls over financial reporting, which may result in material misstatements of its consolidated financial statements[445]. - The company announced a material weakness related to its internal controls, which it has been actively remediating since Q4 2022[478]. Debt and Financing - The company is subject to significant restrictions on future financing arrangements, which may limit its ability to raise additional debt or equity financing[421]. - The company may encounter difficulties in generating sufficient cash flows to meet its debt obligations, impacting its future working capital and financing options[450]. - The company entered into a new credit agreement in 2023, borrowing a total of $66.4 million as of December 31, 2023[838]. - The company has $303.9 million borrowed under a revolving credit agreement with a weighted-average effective annual interest rate of 10.06% as of December 31, 2023[878]. - The company has $66.4 million borrowed under the New Credit Agreement at a weighted-average effective interest rate of 15.00% as of December 31, 2023[881]. Assets and Liabilities - As of December 31, 2023, the company had outstanding net operating losses ("NOLs") of approximately $2.5 billion, which are available to reduce future taxable income[483]. - Intangible assets accounted for approximately 23.1% of total assets of the company's continuing operations on the consolidated balance sheet as of December 31, 2023[484]. - Medical costs payable increased from $116.0 million at the beginning of 2023 to $157.9 million by December 31, 2023[846]. - The company recorded an impairment loss on long-lived assets of $1.2 million during the year ended December 31, 2023[863]. - The company fully impaired the goodwill assigned to its NeueCare reporting unit due to a decline in stock price and market capitalization[886]. Corporate Governance and Structure - The company’s amended and restated certificate of incorporation includes provisions that may delay or prevent mergers or acquisitions that stockholders might consider beneficial[493]. - The company has broad discretion in the application of net proceeds from capital raised, which may not necessarily enhance profitability or shareholder value[492]. - The company is actively evaluating additional financing options with the Board of Directors and outside advisors[871]. Operational Challenges - The company is subject to ongoing litigation and regulatory investigations, which could strain resources and negatively affect its business[437]. - The company has exited the health insurance market but will continue to account for health plan activities until the run-out of all legacy insurance plans is complete[480]. - The Company’s restructuring has resulted in the loss of institutional knowledge, which could adversely affect operations and future growth[814]. - The company has implemented a restructuring plan to reduce capital needs and operating expenses to drive positive operating cash flow and increase liquidity[874]. Stock and Market Performance - The trading price of the company's common stock has been volatile, and future fluctuations may not correlate with its operating performance[487]. - The Company’s common stock is traded on the NYSE under the symbol "NEUE"[817]. Revenue Recognition - The Company recognizes revenue from provider enablement services on a per member per month basis, with revenue recognized as the service period is completed[822]. - The Company’s enablement services are designed to empower providers in value-based care arrangements, enhancing their success[806].

Financial Performance - NeueHealth achieved $1.2 billion in revenue for 2023, representing a 55% year-over-year increase[1] - Net loss for the year ended December 31, 2023, was $1,265,808 thousand, an improvement from a net loss of $1,359,880 thousand in 2022[6] - Revenue for the fourth quarter of 2023 was $292,871 thousand, compared to $227,696 thousand in the same period of 2022[9] - Net loss from continuing operations for the fourth quarter was $62,827 thousand, an improvement from $84,671 thousand in the prior year[9] - NeueHealth reported a net loss of $460,572 thousand for the year ended December 31, 2023, compared to a net loss of $657,791 thousand for the previous year, representing a 30% improvement[32] - Net loss for the three months ended December 31, 2023, was $460,572, compared to a loss of $657,792 for the same period in 2022, representing a 30% improvement[42] - Total revenue for the fourth quarter of 2023 was $292,871 thousand, an increase of 28.6% from $227,696 thousand in the same quarter of 2022[32] Consumer and Service Growth - The company served 461,000 consumers, an increase of 294% from the prior year on a comparable basis[8] - Value-based consumers served increased to 355,000 as of December 2023, up from 117,000 in December 2022, marking a growth of approximately 203.4%[19] - ACO REACH revenue for the three months ended December 31, 2023, was $219,659 thousand, up from $188,652 thousand in the same period of 2022, representing an increase of about 16.5%[14] - Capitated revenue for the fourth quarter of 2023 was $60,091 thousand, up 78.7% from $33,609 thousand in the fourth quarter of 2022[33] - ACO REACH revenue increased to $219,659 thousand in Q4 2023, compared to $188,652 thousand in Q4 2022, reflecting a growth of 16.4%[32] Operational Metrics - Adjusted EBITDA for the year is projected to be between $15 million and $25 million for 2024[8] - NeueCare Adjusted EBITDA for the three months ended December 31, 2023, was $6,929 thousand, compared to a loss of $146,870 thousand in the same period of 2022[17] - The operating cost ratio improved to 22.3% for the three months ended December 31, 2023, down from 40.9% in the same period of 2022[16] - Total operating expenses for the year ended December 31, 2023, were $1,737,798 thousand, compared to $1,119,919 thousand in 2022, indicating a significant increase[32] - The company reported an operating loss of $45,935 thousand for Q4 2023, an improvement from an operating loss of $90,906 thousand in Q4 2022[32] Assets and Liabilities - Total current assets decreased to $1,088,927 thousand in December 2023 from $3,570,634 thousand in December 2022, a decline of approximately 69.5%[12] - Total liabilities decreased to $1,480,098 thousand in December 2023 from $3,725,367 thousand in December 2022, a reduction of approximately 60.3%[12] - The accumulated deficit increased to $(4,307,849) thousand in December 2023 from $(3,156,395) thousand in December 2022, reflecting a worsening of approximately 36.4%[12] Future Outlook - The company expects to continue focusing on its care delivery and provider enablement business following the sale of its California Medicare Advantage business[1] - NeueHealth plans to align the interests of providers, payors, and consumers to drive differentiated value in 2024[1] - The company provided guidance for full year 2024, indicating expectations for continued growth and operational improvements[20] - NeueHealth's Enterprise Revenue is projected to be approximately $1 billion for 2024, with NeueSolutions Revenue expected between $690 million and $700 million[30] - The Enterprise Adjusted Operating Cost Ratio is anticipated to be between 15% and 16% for 2024[30] - Enterprise Adjusted EBITDA is expected to range from $15 million to $25 million in 2024[30] Cost Management and Impairments - The company reported a significant impairment of goodwill amounting to $587,535 thousand for the year[6] - Cash used in operating activities for the year was $2,726,546 thousand, compared to cash provided of $234,466 thousand in 2022[6] - Total interest expense increased to $11,206 for the three months ended December 31, 2023, compared to $6,387 in the prior year, reflecting a 75% increase[42] - Share-based compensation expense decreased to $18,081 for the three months ended December 31, 2023, down from $32,450 in the same period of 2022, a reduction of 44%[42] - Depreciation and amortization expenses decreased to $4,024 for the three months ended December 31, 2023, from $5,426 in the same period of 2022, a decline of 26%[42] - Transaction costs for the year ended December 31, 2023, totaled $23,252, compared to $386 in the previous year, indicating a significant increase[42] - The company reported a loss from discontinued operations of $397,745 for the three months ended December 31, 2023, down from $573,120 in the same period of 2022, a decrease of 30%[42] - The company expects ongoing costs related to the bankruptcy of one of its ACO REACH care partners, which will impact future financial performance[45] - The company plans to continue focusing on restructuring efforts and managing costs associated with exiting the Commercial business segment[45]

MINNEAPOLIS--(BUSINESS WIRE)--Bright Health Group, Inc. (“Bright Health” or the “Company”) (NYSE: BHG) today announced that it has adopted NeueHealth as its corporate brand name. This reflects the Company’s ongoing focus on its NeueHealth business, which will continue driving long-term sustainable growth of its value-driven, consumer-centric care model, thereby increasing access to high-quality healthcare for all populations across the ACA Marketplace, Medicare, and Medicaid. The Company’s common stock will ...

Discontinued Operations - Total revenue from discontinued operations for the nine months ended September 30, 2023, was $1,384,116, with premium revenue of $1,319,292 [141]. - Operating loss from discontinued operations for the nine months ended September 30, 2023, was $(238,310) [141]. - Cash used in operating activities for discontinued operations was $(2,310,771) for the nine months ended September 30, 2023 [144]. - Total assets of discontinued operations as of September 30, 2023, amounted to $1,368,694 [144]. - Total liabilities of discontinued operations as of September 30, 2023, were $974,502 [144]. - The company reported a net loss from discontinued operations of $(240,321) for the nine months ended September 30, 2023 [141]. Company Strategy and Focus - The company has focused on its value-driven Consumer Care business, NeueHealth, to improve quality and cost of care [140]. - The company announced restructuring charges totaling $10,080 for the nine months ended September 30, 2023, as part of its strategic changes [150]. Financial Obligations - The company has entered into repayment agreements with CMS for an aggregate amount of $380 million, due in 18 months from September 15, 2023 [159]. Care Delivery Segment - As of September 30, 2023, the Care Delivery segment serves approximately 330,000 consumers through 72 owned primary care clinics [139].

| --- | --- | |-------------------------------------------------------------------|-------| | | | | | | | | | | Bright Health Group Third Quarter 2023 – Earnings Presentation | | | November 7, 2023 | | Disclaimer Statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of o ...

Financial Data and Key Metrics Changes - Bright Health Group's enterprise earnings for Q3 2023 were $269 million, with strong performance in the care delivery segment offset by lower ACO Reach revenue due to expected revisions to benchmarks [3][19] - Enterprise adjusted EBITDA was $1.2 million in Q3 and $1.9 million year-to-date, with adjusted EBITDA before corporate expenses exceeding $12 million in Q3 [42][48] - The company expects 2023 enterprise revenue between $1.14 billion and $1.19 billion, with an unchanged adjusted operating cost ratio forecast of 17.5% to 18.5% [19][46] Business Line Data and Key Metrics Changes - Care solutions segment revenue in Q3 was $200.8 million, impacted by adjustments related to ACO Reach program benchmarks [14] - Care delivery segment revenue was $67.1 million in Q3, with strong performance in medical cost management contributing to gross profit [39][61] - The ACOs achieved a combined gross savings of $30.3 million, with a savings rate of 4.4% compared to benchmarks, exceeding the program average [8] Market Data and Key Metrics Changes - The Medicare Advantage business experienced a 17% growth in premium revenue compared to Q3 2022, with a year-to-date medical cost ratio of 89.9% [58] - The company serves over 290,000 consumers in its care delivery business, with expectations to transition contracts to total cost of care arrangements [20][47] - The company is focused on expanding its presence in Medicaid and engaging new provider groups to serve various payer categories [36][71] Company Strategy and Development Direction - The company is concentrating on a value-driven consumer care business model, aiming to improve quality and cost of care through integrated care solutions [6][50] - Bright Health is working on the wind-down of its ACA insurance business while positioning its consumer care business for long-term profitable growth [49][64] - The company plans to reduce corporate operating expenses in Q4 to support enterprise adjusted EBITDA in 2024 [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is pressure on top-line growth related to the ACO Reach business, overall margins are expected to improve [2] - The company is optimistic about the potential for further upside in care partner relationships and has taken a conservative amount of risk in contracts [34] - Management expressed confidence in achieving enterprise adjusted EBITDA profitability for the year, supported by strong year-to-date results [48] Other Important Information - The company has entered into repayment agreements for $380 million with CMS regarding unpaid risk adjustment obligations, due in 18 months with an interest rate of 11.5% [16] - The sale of the California Medicare Advantage business is expected to close by Q1 2024, pending regulatory approvals [9][18] - The company has made significant progress in the wind-down of its ACA insurance business, with claims inventory declining and visibility on remaining obligations [10][64] Q&A Session Summary - There was no Q&A session conducted during this call due to the pending regulatory approval for the sale of the California Medicare Advantage business [32][23]

| --- | --- | |-------------------------------------------------------------------|-------| | | | | | | | | | | Bright Health Group Second Quarter 2023 – Earnings Presentation | | | August 9, 2023 | | Disclaimer Statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of op ...

Financial Data and Key Metrics Changes - Bright Health Group reported Q2 revenue of $298 million, a 100% increase from $149.3 million in Q2 2022 [50] - Total company gross profit in Q2 was $52.8 million, up from $18.5 million in Q2 2022, with gross margin increasing to 17.7% from 12.4% [39] - Consolidated adjusted EBITDA for the quarter was positive $6.4 million, marking the first quarter of positive adjusted EBITDA [18] Business Line Data and Key Metrics Changes - The Consumer Care business generated positive operating income in both segments, with Care Delivery revenue at $66.1 million and operating income of $11 million, while Care Solutions revenue was $237.7 million with operating income of $40 million [51] - The Consumer Care business ended the quarter with 371,000 value-based consumers, including over 65,000 in REACH ACOs [17][30] Market Data and Key Metrics Changes - The medical cost ratio in Q2 was 90.2%, which was in line with expectations, and utilization remained stable [53] - The company expects to transition contracts to total cost of care arrangements, reflecting a significant long-term opportunity across multiple payer categories [42][44] Company Strategy and Development Direction - The company is focusing on value-driven care and has exited the ACA Insurance business, aiming to deepen relationships with external payer partners [29][8] - Bright Health is positioning itself as one of the largest providers of value-driven care in the country, balancing risk and growth [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's capital position following the announcement of a $60 million credit facility and a waiver of default on existing credit facilities [34][37] - The company remains focused on delivering adjusted EBITDA profitability for the full year and sees multiple opportunities for long-term growth [43] Other Important Information - The company has made substantial progress on the runout of its ACA Marketplace business, reaching approximately 95% claims completion as of June 30 [11] - The sale of the California Medicare Advantage business is expected to close by early 2024, pending regulatory approvals [53][4] Summary of Q&A Session Questions and Answers - There was no Q&A session conducted during this call due to the pending regulatory approval of the sale of the California Medicare Advantage business [45]