Privia Health (US:PRVA)2021-08-09 16:50Financial Data and Key Metrics Changes - Practice collections increased by 30.3% to over $367 million compared to the second quarter of the previous year [11] - Care margin grew by 33.7% year-over-year, indicating strong financial performance [24] - Adjusted EBITDA rose by 43% in the quarter, with adjusted EBITDA margin expanding by 110 basis points year-over-year [25] Business Line Data and Key Metrics Changes - The company reported a 30.3% increase in practice collections driven by growth in implemented providers and attributed lives [23] - Year-to-date performance showed practice collections up nearly 17% and care margin increasing approximately 21% compared to the first half of 2020 [26] Market Data and Key Metrics Changes - Medicare Advantage lives increased by 13% sequentially to 102,000 at the end of the second quarter [20] - The company currently participates in over 70 at-risk value-based care programs across various payer contracts [18] Company Strategy and Development Direction - The launch of Privia Care Partners aims to expand partnerships with providers without requiring them to switch to a single tax ID medical group [14][15] - The company plans to grow attributed lives and transition more of these lives into downside and full risk arrangements over time [20] - The five core strategies for growth include same store growth, increasing attribution and risk-based contracts, adding new providers, opening new markets, and pursuing M&A opportunities [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the significant opportunities in expanding risk-sharing arrangements across value-based reimbursement models [17] - The company expects attributed lives, practice collections, GAAP revenue, care margin, platform contribution, and adjusted EBITDA to be near the high end of guidance ranges for the remainder of 2021 [27] Other Important Information - The company has a net cash position of $266 million, providing sufficient capital for growth initiatives [25] - The management team has decades of experience in managing and underwriting risk, which positions the company well for future transitions in value-based care [21] Q&A Session Summary Question: Can you offer more detail around Privia Care Partners? - The model is designed for value-based care and includes MSO services, allowing providers to participate without switching platforms [34] Question: How does the utilization trend impact Privia? - The company is seeing positive impacts from both fee-for-service and value-based sides, demonstrating resilience across different utilization scenarios [39] Question: What is the provider pipeline outlook for 2022? - The company has a consistent sales approach throughout the year, with a strong pipeline for implementation in 2022 already under contract [42] Question: How do the economics of Privia Care Partners compare to traditional models? - The economics are expected to be similar, with a focus on attributed lives and participation in various value-based programs [45] Question: What is the competitive landscape for the new model? - The lighter model is not a direct reaction to market pressures but a strategic expansion to engage providers who are not ready for a full switch [64]