Bright Health Group(BHG) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Bright Health Group reported Q2 revenue of $298 million, a 100% increase from $149.3 million in Q2 2022 [50] - Total company gross profit in Q2 was $52.8 million, up from $18.5 million in Q2 2022, with gross margin increasing to 17.7% from 12.4% [39] - Consolidated adjusted EBITDA for the quarter was positive $6.4 million, marking the first quarter of positive adjusted EBITDA [18] Business Line Data and Key Metrics Changes - The Consumer Care business generated positive operating income in both segments, with Care Delivery revenue at $66.1 million and operating income of $11 million, while Care Solutions revenue was $237.7 million with operating income of $40 million [51] - The Consumer Care business ended the quarter with 371,000 value-based consumers, including over 65,000 in REACH ACOs [17][30] Market Data and Key Metrics Changes - The medical cost ratio in Q2 was 90.2%, which was in line with expectations, and utilization remained stable [53] - The company expects to transition contracts to total cost of care arrangements, reflecting a significant long-term opportunity across multiple payer categories [42][44] Company Strategy and Development Direction - The company is focusing on value-driven care and has exited the ACA Insurance business, aiming to deepen relationships with external payer partners [29][8] - Bright Health is positioning itself as one of the largest providers of value-driven care in the country, balancing risk and growth [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's capital position following the announcement of a $60 million credit facility and a waiver of default on existing credit facilities [34][37] - The company remains focused on delivering adjusted EBITDA profitability for the full year and sees multiple opportunities for long-term growth [43] Other Important Information - The company has made substantial progress on the runout of its ACA Marketplace business, reaching approximately 95% claims completion as of June 30 [11] - The sale of the California Medicare Advantage business is expected to close by early 2024, pending regulatory approvals [53][4] Summary of Q&A Session Questions and Answers - There was no Q&A session conducted during this call due to the pending regulatory approval of the sale of the California Medicare Advantage business [45]