P3 Health Partners (PIII) 43rd Annual J.P. Morgan Healthcare Conference 2025 summary

Business Overview and Market Position

• Operates in four states and 24 counties, serving 124,000 senior lives with a focus on Medicare Advantage and ACO REACH, and manages 3,100 primary care providers as of December 2024.

• Holds significant market share in key counties: 22% in Arizona, 9% in Nevada, 10% in San Joaquin County (CA), and 28% in Oregon.

• Partnerships span major national and regional payers, with a diversified payor mix and no single payor accounting for more than 20% of revenue.

• Total addressable market includes 2 million Medicare lives in current geographies, with incremental potential in Medicaid and commercial segments.

• Diversified payer portfolio and strong clinical outcomes support ongoing expansion, with significant incremental growth potential, especially in Arizona.

Industry Challenges and Value-Based Care Strategy

• Sector faces post-pandemic utilization spikes, regulatory changes, and negative sentiment, but recent rate notice for 2026 offers a positive outlook.

• Value-based care model targets high costs, poor access, and suboptimal outcomes, with studies indicating 10% savings in medical spending over five years.

• Demonstrates improved clinical outcomes: 36% fewer inpatient acute admits, 37% fewer SNF admits, and 17% fewer ED admits per 1,000 compared to benchmarks.

• Primary care physician burnout exceeds 50%, with high suicide rates, impacting care quality and patient engagement; model aims to improve provider satisfaction and patient outcomes.

• Patients benefit from better data, care navigation, and personalized plans; providers receive tools, resources, and shared savings; payers benefit from improved quality outcomes and growth.

Operational Improvements and Financial Turnaround

• Launched a $130 million+ turnaround plan in mid-2024, targeting operational efficiencies ($20M+), contract rationalization ($35M+), and operational execution ($75M+), with expected realization in 2025 or later.

• Eliminated $20 million in costs by reducing labor redundancies and canceling underperforming contracts.

• Pruned 63 non-performing PCP contracts and some payer contracts, removing 20,000 lives and improving P&L by $35 million.

• Enhanced field operations to ensure better patient engagement and chronic condition management.

• Increased focus on palliative and hospice care, aiming for 4% hospice enrollment by 2025 to reduce end-of-life costs.