Alignment Healthcare (ALHC) The 44th Annual William Blair Growth Stock Conference summary

Key business model and growth drivers

• Achieved 165,100 members as of March 31, 2024, reflecting 51% year-over-year growth and a 30% reduction in new member voluntary disenrollment.

• Investments in insourcing member experience, sales operations, broker portals, and technology (AVA) led to strong results and high retention.

• Maintained four-star ratings for most members despite sector-wide declines, leveraging regulatory changes and new risk coding (V28) as tailwinds.

• Operates a payvider model with curated products, high-quality provider networks, and concierge-level support tailored to seniors.

• 70% of business involves direct risk management, with 30% capitated to high-quality providers.

Clinical and operational excellence

• Focuses on high-quality, low-cost care for seniors, emphasizing a clinical culture over pure financial engineering.

• Identifies and manages high-cost, vulnerable populations through interdisciplinary care teams and technology.

• Care Anywhere program delivers coordinated care at home and in preferred environments, reducing institutional costs and increasing engagement.

• Maintains high retention and growth without inflating medical loss ratios, outperforming peers in MBR management and growth rate.

• Uses daily KPI tracking, scorecards, and daily meetings for operational visibility and rapid problem-solving.

Technology and data strategy

• Built a proprietary technology platform (AVA) for real-time, unified data access and minimal latency, supporting performance and care management.

• Data-driven approach enables patient stratification, identifying 12% of members as chronic but responsible for 74% of institutional spend.

• Patient 360 View provides clinicians with comprehensive, actionable member data for care management.

• Real-time data from over 200 sources, including 11,000 hospitals and same-day pharmacy/lab connections, supports daily decision-making.

• Technology supports efficient scaling, actionable insights, and a single source of truth, distinguishing the model from legacy competitors.