NeueHealth(NEUE)

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NeueHealth(NEUE) - 2023 Q4 - Earnings Call Transcript
2024-03-06 16:41
NeueHealth, Inc. Q4 2023 Earnings Conference Call March 6, 2024 12:00 AM ET Company Participants Emily Lombardi - Investor Relations Mike Mikan - President and CEO Jay Matushak - CFO Tomas Orozco - Executive Vice President Conference Call Participants Joshua Raskin - Nephron Research Operator Good morning. My name is Drew, and I'll be your conference operator today. At this time, I would like to welcome everyone to the NeueHealth Q4 2023 Earnings Conference Call. All lines have been placed on mute to preven ...
NeueHealth(NEUE) - 2023 Q4 - Annual Results
2024-03-06 11:47
Exhibit 99.1 For full year 2024, NeueHealth is providing the following guidance and commentary: NEUEHEALTH REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS DORAL, Fla. (March 6, 2024) (BUSINESSWIRE) – NeueHealth, Inc. ("NeueHealth" or the "Company") (NYSE: NEUE), the value-driven healthcare company, today reported financial results for its fourth quarter and full year ended December 31, 2023. "We achieved significant milestones as a company this past year, completing the sale of our California Medicare Adv ...
NeueHealth(NEUE) - 2023 Q3 - Quarterly Report
2023-11-09 21:41
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR Commission File Number: 001-40537 BRIGHT HEALTH GROUP, INC. (Exact Name of Registrant as Specified in its Charter) | Delaware | 47-4991 ...
NeueHealth(NEUE) - 2023 Q2 - Quarterly Report
2023-08-09 20:43
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40537 BRIGHT HEALTH GROUP, INC. (Exact Name of Registrant as Specified in its Charter) | Delaware | 47-4991296 | ...
NeueHealth(NEUE) - 2023 Q1 - Earnings Call Transcript
2023-05-14 15:23
Bright Health Group, Inc. (BHG) Q1 2023 Earnings Conference Call May 9, 2023 8:00 AM ET Company Participants Stephen Hagan - Investor Relations Director Mike Mikan - President and CEO Cathy Smith - Chief Administrative Officer and CFO Conference Call Participants Operator Ladies and gentlemen, welcome to the Bright Health Group First Quarter 2023 Earnings Call. My name is Kelly, and I will be coordinating your call today. I will now hand you over to Stephen Hagan, Investor Relations Director to begin. Steph ...
NeueHealth(NEUE) - 2023 Q1 - Earnings Call Presentation
2023-05-14 15:19
| --- | --- | |-------------------------------------------------------------------|-------| | | | | | | | | | | Bright Health Group First Quarter 2023 – Earnings Presentation | | | May 9, 2023 | | Disclaimer 2 Statements made in this release 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 operation ...
NeueHealth(NEUE) - 2023 Q1 - Quarterly Report
2023-05-10 20:14
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 BRIGHT HEALTH GROUP, INC. (Exact Name of Registrant as Specified in its Charter) | Delaware | 47-4991296 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 8000 Norman Center Drive, Suite ...
NeueHealth(NEUE) - 2022 Q4 - Annual Report
2023-03-16 20:06
Financial Compliance and Liquidity - As of September 30, 2022, the company was not in compliance with the total debt to capitalization ratio covenant of its Credit Agreement[239]. - The company breached the minimum liquidity covenant in Q1 of fiscal year 2023, requiring a minimum liquidity of $75 million until March 3, 2023, and $85 million thereafter during the Waiver Period[240]. - The company executed an amendment to the Credit Agreement on November 8, 2022, allowing it not to test the debt to capitalization ratio covenant until September 30, 2023[239]. - The company faces substantial doubt about its ability to continue as a going concern due to projected cash flows and liquidity requirements[241]. Healthcare Regulations and Compliance - The company is subject to various federal and state healthcare laws, including the federal Anti-Kickback Statute and the Stark Law, which impose significant compliance requirements and potential penalties for violations[254][255][268]. - Non-compliance with healthcare regulations could result in civil, criminal, and administrative penalties, including exclusion from government programs like Medicare, which could adversely affect the company's operations and financial condition[256][270]. - The company must comply with HIPAA and CCPA regulations regarding the handling of Personally Identifiable Information (PII) and Protected Health Information (PHI), with penalties for non-compliance reaching up to $7,500 per intentional violation under CCPA[257][263]. - The company faces increased scrutiny and potential litigation related to its risk adjustment practices and relationships with providers, particularly under the federal False Claims Act (FCA)[254][270]. - The corporate practice of medicine laws in various states may restrict the company's business operations, potentially leading to civil and criminal penalties if violated[268][269]. - The company anticipates ongoing regulatory changes related to privacy and cybersecurity, which may require modifications to its products and features[263]. - Legal proceedings and investigations related to healthcare fraud and compliance could impose significant costs and strain corporate resources[270]. - The company must maintain accurate and comprehensive privacy policies to avoid claims of deceptive practices, which could lead to governmental investigations and significant liabilities[265]. - Compliance with new health information standards could significantly impact the company's operations and incur substantial costs[264]. Medicare and Financial Impact - The CARES Act and related legislation authorized over $186 billion in funding for healthcare providers to reimburse for lost revenues and healthcare-related expenses due to COVID-19[246]. - The Medicare sequestration payment adjustment, which reduces payments to Medicare providers by 2%, was phased back in on July 1, 2022, and will increase to 3% in the last six months of fiscal year 2030[247]. - The company services approximately 125,000 MA consumers, primarily in California, with reimbursement rates based on published Medicare rates[250]. - Changes to the Medicare program, including administrative or legislative changes to reimbursement policies, could significantly impact the company's profitability and consumer satisfaction[250]. - The final impact of Medicare Advantage rates can vary from estimates, potentially leading to material adverse effects on the company's financial condition and cash flows[253]. Financial Reporting and Internal Controls - A material weakness in internal controls over financial reporting was identified for the year ended December 31, 2021, related to claims processed inaccurately by a third-party service provider[280]. - The company announced a new material weakness in Q4 2022 related to its decision to exit the Individual and Family Plans (IFP) business, which may impact its financial reporting[283]. - The company is enhancing its claims quality assurance procedures and data mining capabilities to address overpayment issues and improve claims payment accuracy[281]. - The company is undertaking steps to remediate identified material weaknesses, but there is no assurance that these measures will be sufficient to prevent future weaknesses[284]. Legal and Market Risks - The company is facing a pending putative securities class action lawsuit alleging materially false and misleading statements regarding its business and operations, which could adversely affect its stock price[273]. - The U.S. Department of Justice and the Office of Inspector General have increased scrutiny of healthcare payors, which may lead to investigations and potential penalties for the company[275]. - The company may be required to refund amounts paid and/or pay fines due to inspections, reviews, audits, and investigations, which could materially affect its business[277]. - Risk adjustment programs impact the revenue recognized for enrolled membership, and inaccuracies in documenting health conditions could lead to financial penalties or underpayment[286]. - The company estimates incurred but not reported (IBNR) claims using actuarial methods, and inaccuracies in these estimates could negatively impact reported results[287]. - The final rule from CMS regarding RADV audits may have potential adverse effects on the company's operating results and financial condition if implemented[276]. Stock and Market Performance - As of December 31, 2022, the company had outstanding net operating losses (NOLs) of approximately $5.8 billion, which are available to reduce future taxable income[291]. - Goodwill and intangible assets accounted for approximately 21.6% of total assets on the consolidated balance sheet as of December 31, 2022[293]. - The company received notice from the NYSE regarding non-compliance with continued listing standards due to the average closing price of its common stock being less than $1.00 per share over a consecutive 30 trading-day period[294]. - The company has a six-month period to regain compliance with the minimum share price requirement, which may involve a reverse stock split subject to stockholder approval[295]. - If the NYSE permanently delists the company's shares, it could negatively impact liquidity, market price, and the ability to raise equity financing[296]. - The trading price of the company's common stock has experienced significant volatility, which may continue in the future[297]. - The company does not intend to declare dividends on its common stock in the foreseeable future, with returns depending solely on stock price appreciation[301]. - The company has broad discretion in the application of net proceeds from capital raises, which may not necessarily increase profitability[303]. - Any conversion of the Preferred Stock into common stock would dilute the ownership interest of existing common stockholders[312]. - The company is authorized to issue up to 100,000,000 shares of preferred stock without stockholder approval, which may affect the value of common stock[314]. - Increased costs associated with being a publicly traded company may be material, including legal and compliance expenses due to regulations like SOX and Dodd-Frank[315]. - The company's earnings are exposed to financial market risk, particularly from changes in interest rates[504]. - A hypothetical 1% increase in interest rates could lead to a market value decrease of approximately $33.4 million in the company's portfolios[505].
NeueHealth(NEUE) - 2022 Q4 - Earnings Call Transcript
2023-03-01 15:36
Financial Data and Key Metrics Changes - For Q4 2022, revenue for continuing operations was $551 million, with a full year total of $2.4 billion [24] - The adjusted EBITDA loss for Q4 was $109 million, with a full year adjusted EBITDA loss of $233 million [26] - The full year net loss for continuing and discontinued operations was $1.36 billion, including approximately $500 million of non-cash charges [26] Business Line Data and Key Metrics Changes - The Consumer Care segment generated $364 million in revenue for Q4 and $1.8 billion for the full year [24] - Bright HealthCare revenue for Q4 was $394 million, totaling $1.7 billion for the full year [24] - Value-based care consumers in the Consumer Care segment increased to approximately 530,000 in Q4, with over 410,000 from Bright HealthCare [27] Market Data and Key Metrics Changes - The California Medicare Advantage market is a focus area, with expectations to grow from over 120,000 Medicare Advantage consumers to over 125,000 by year-end [14] - The medical cost ratio for Bright HealthCare was reported at 93.9% for the full year, with California operations achieving approximately 92% [25] Company Strategy and Development Direction - The company is transitioning away from the ACA marketplace insurance business, focusing on value-driven care and managing risk more effectively [15][41] - The strategic focus includes building strong relationships with payer partners and moving towards greater risk-sharing models over time [10][58] - The company aims for adjusted EBITDA profitability in both segments and at the enterprise level in 2023 [8][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continuing business's positioning for future growth, particularly in serving aging and underserved consumers [41] - The company is actively working on strengthening its capital position and addressing the liabilities from discontinued operations [22][42] - Management highlighted the importance of cash flow predictability and reduced volatility in the new business model [48] Other Important Information - The company has entered into a waiver and amendment with its bank group to reduce minimum liquidity requirements through April 30 [16] - The financial statements will include a going-concern qualification, emphasizing the need for additional capital to fund ongoing operations [22] Q&A Session Summary Question: Improvement in EBITDA from MA revenue growth - Management indicated that the primary driver for EBITDA improvement is the rate increase, with expectations for improved coding and risk adjustment factors contributing to growth [45][46] Question: Cash flow situation and needs by April - Management noted that the current cash position is about $150 million, with expectations to end 2023 with $200 million to $300 million in corporate cash [50][51] Question: Commercial contracting landscape - Management reported positive discussions with commercial plans regarding risk collars and contracts, with a focus on moving towards full risk contracts over time [58][59] Question: EBITDA bridge for Consumer Care - Management explained that the shift towards third-party payer contracts and improved performance from owned clinics are driving the expected EBITDA improvement [65] Question: Profitability expectations for ACO REACH members - Management expects comparable performance for ACO REACH members, with a projected loss ratio around 98% for 2023 [78]
NeueHealth(NEUE) - 2022 Q4 - Earnings Call Presentation
2023-03-01 12:54
| --- | --- | |-------------------------------------------------------------------|-------| | | | | | | | | | | Bright Health Group Fourth Quarter 2022 – Earnings Presentation | | | March 1, 2023 | | Disclaimer 2 Statements made in this release 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 operat ...