agilon health(US:AGL) Businesswireยท2024-01-05 11:00Core Insights - Agilon Health has revised its guidance for 2023 due to higher-than-expected medical costs, impacting its financial outlook for the year and leading to an initial outlook for 2024 [1][2][3] 2023 Financial Performance - The company experienced increased medical expenses in 2023, primarily from higher specialist visits, Part B drugs, outpatient surgeries, and supplemental benefits, partially offset by lower hospital admissions [1] - Revised medical margin expectation for 2023 is set at $340 million to $360 million, which is approximately $110 million lower than previous guidance [2] - The reduction in medical margin is attributed to $90 million in higher-than-expected medical costs and a $20 million negative revenue revision from two regional health plans [2] 2024 Initial Outlook - For 2024, Agilon Health projects Medicare Advantage membership to grow to between 548,000 and 553,000 members [6] - Total revenues for 2024 are expected to be between $6.35 billion and $6.42 billion, with a medical margin forecast of $560 million to $600 million [7] - Adjusted EBITDA for 2024 is anticipated to be between $40 million and $60 million [7] Strategic Initiatives - The company has implemented several initiatives aimed at enhancing operating performance and improving financial predictability, including accelerating operational efficiency and refining payor partnerships [3] - Agilon Health is withdrawing its previously issued target for 2026 due to the lower-than-expected baseline projected for 2023 [3] Conference Call Announcement - Agilon Health will host a conference call on January 5, 2024, to discuss the updated guidance for 2023 and the initial outlook for 2024 [8]