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 Transcript