Privia Health (US:PRVA)2023-05-06 23:10Financial Data and Key Metrics Changes - Privia Health reported a 17.3% year-over-year increase in practice collections, reaching $658.9 million in Q1 2023 [83] - Adjusted EBITDA rose by 13.9% compared to Q1 last year, totaling $16.9 million [83] - Total attributed lives increased by over 22% year-over-year, driven by new ACOs in 2023 [79] Business Line Data and Key Metrics Changes - The implemented provider count grew by 10.3% year-over-year, reaching 3,716 [83] - Value-based care comprised 33.8% of total GAAP revenue in Q1 2023, up from 27.1% in Q1 2022 [83] - The company expects to add new implemented providers in Connecticut, North Carolina, and Ohio before the end of the year [79] Market Data and Key Metrics Changes - The company is entering new markets with significant total addressable market (TAM) opportunities, aiming for 400 to 500 providers over the next 4 to 5 years [9] - The health plan partner's decision to pause a capitated arrangement impacted the performance metrics, but the overall value-based book performed well [80][49] Company Strategy and Development Direction - The company aims to build one of the largest ambulatory care delivery networks in the nation, focusing on expanding its national footprint [19] - The strategy includes thoughtful movement into risk-based arrangements and partnerships with health systems [65][69] - The company plans to continue investing in new market entries and expansion, with a strong balance sheet and no debt [84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining guidance for 2023 despite challenges, citing strong performance in the value-based book [49][84] - The company anticipates good utilization trends continuing into the rest of 2023, with a focus on prudent planning [56] - Management highlighted the importance of thoughtful risk-sharing arrangements with health plan partners [80] Other Important Information - A large secondary offering was launched, reducing the ownership of Goldman Sachs and Pamplona Capital while welcoming new long-term investors [4] - The company has a strong cash position of over $311 million, which supports its growth strategy [84] Q&A Session Summary Question: Can you clarify the timing of physician implementation? - Management indicated that they are ahead of their plan for implemented providers in new states and expect to implement some providers before the end of the year [87] Question: What is the impact of the capitated contract termination? - The health plan's decision to pause the capitated arrangement was due to operational challenges, but the company will continue to serve MA patients and reevaluate the arrangement for 2024 [80][78] Question: How are you measuring success in the Surgery Partner's partnership? - Management stated that they are looking to develop relationships and bring unique offerings to payer partners, with a focus on reducing total cost of care [71][73] Question: What are the expected margins between MSSP and capitated deals? - Management explained that the take rate on shared savings is effectively the same across both books of business, with differences in revenue recognition [100] Question: What is the outlook for new markets? - Management expects new markets to scale significantly in the coming years as they grow their provider base and attributed lives [93]