P3 Health Partners(PIII) - 2024 Q3 - Quarterly Report

Financial Performance - Total operating revenue for Q3 2024 was $362.1 million, a 25.6$288.4 million in Q3 2023[32] - Capitated revenue reached $357.7 million in Q3 2024, up 25.4$285.2 million in the same quarter last year[32] - Operating loss for Q3 2024 was $107.0 million, compared to a loss of$33.8 million in Q3 2023, reflecting a significant increase in operating expenses[32] - Total operating expenses for Q3 2024 were $469.1 million, a 45.6$322.2 million in Q3 2023[32] - Net loss attributable to controlling interest for Q3 2024 was $46.5 million, compared to a loss of$13.3 million in Q3 2023[32] - For the nine months ended September 30, 2024, the company reported a net loss of $181.2 million, compared to a net loss of$117.3 million for the same period in 2023, reflecting an increase in losses of approximately 54.5%[43] - The company reported a comprehensive loss that was consistent with its net loss, indicating no significant changes in equity from transactions other than those with stockholders[50] - The company reported net losses of $102.9 million and$181.2 million for the three and nine months ended September 30, 2024, respectively[170] Cash and Liquidity - Cash and cash equivalents increased to $62.9 million as of September 30, 2024, up from$36.3 million at the end of 2023[29] - The company had $63.0 million in unrestricted cash and cash equivalents as of September 30, 2024, compared to$36.3 million at the end of 2023, showing improved liquidity[44] - As of September 30, 2024, the company had cash and restricted cash of $68.1 million, including a$15 million refundable good faith deposit for the sale of its Florida operations[169] - Cash at the end of the period was $68.1 million, an increase from$57.4 million at the end of the same period in 2023[199] Assets and Liabilities - Total current assets rose to $215.1 million as of September 30, 2024, compared to$166.0 million at the end of 2023[29] - Total liabilities increased to $569.4 million as of September 30, 2024, up from$427.3 million at the end of 2023[30] - The company reported a premium deficiency reserve of $29.4 million as of September 30, 2024, compared to$13.7 million at the end of 2023[30] - Long-term debt as of September 30, 2024, was $134.5 million, an increase from$109.1 million as of December 31, 2023[72] Revenue Composition - Capitated revenue accounted for 98.8% of total revenue in Q3 2024, slightly down from 98.9% in Q3 2023, indicating stable revenue composition[54] - Capitated revenue for the nine months ended September 30, 2024, was $1,116.1 million, an increase of$206.7 million, or 23%, compared to $909.5 million for the same period in 2023[163] - Total revenue for the nine months ended September 30, 2024, was$1,129.8 million, a 23% increase from $919.5 million in the prior year[163] Membership and Growth - At-risk membership increased to 128,900 members as of September 30, 2024, compared to 105,600 members in the same period of 2023, reflecting a growth of 22$401.9 million, up $122.7 million, or 44$279.2 million in the same period last year[159] - Medical expenses rose by $282.1 million, or 33$1,149.1 million for the nine months ended September 30, 2024, compared to $867.1 million for the same period in 2023[164] - Medical claims expenses for Q3 2024 totaled$357,166 thousand, compared to $248,918 thousand in Q3 2023, an increase of 43.5%[130] Internal Controls and Compliance - Material weaknesses in internal control over financial reporting were identified, impacting the reliability of financial statements[208] - The company has identified material weaknesses in internal control over financial reporting, including inadequate policies and insufficient qualified resources[207] - The company is actively engaged in a comprehensive remediation plan, having completed the design phase and enhanced existing controls[209] - There were no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected the internal control[212] Legal and Regulatory Matters - A Confidential Settlement and Mutual Release Agreement was executed on August 22, 2024, resolving legal disputes related to business combinations[217] - The company maintains general and professional liability insurance to mitigate risks associated with legal proceedings[214] - The company believes that the disposition of ongoing legal matters will not have a material adverse effect on its consolidated financial position[214]