P3 Health Partners (PIII) Jefferies 2024 Global Healthcare Conference summary

Leadership and organizational background

• CEO Aric Coffman joined in May, bringing extensive experience in value-based care and senior-focused healthcare.

• The executive team includes seasoned leaders with backgrounds in Healthcare Partners and DaVita Medical Group.

• Highlighted a physician-led management team with over 20 years of value-based care experience, emphasizing leadership stability and expertise.

• The company operates in five states and 27 counties, with a strong presence on the West Coast and in Florida.

• Partnerships span over 20 payers, both national and local, supporting market density and network stability.

Business model and operational approach

• Manages 126,000 full-risk lives, 92% Medicare Advantage and 8% ACO REACH, and 11,000 ACO Reach lives.

• Operates through full-risk contracts, aligning payers, providers, and patient outcomes.

• High patient and provider retention rates, with 90% patient persistency and 97% PCP retention.

• Utilizes data aggregation, risk stratification, and a proprietary tech platform to drive targeted care management and provider performance.

• Technology partnerships, such as with Innovaccer, enhance analytics, predictive modeling, and AI capabilities.

Financial performance and growth

• 2023 revenue was $1.3 billion, with 2024 guidance between $1.45–$1.5 billion.

• Reported FY 2023 revenue of $1.27B and medical margin of $135M.

• Company-wide, membership grew 27% and revenue 42% from 2022 to Q1 2024.

• Arizona market saw 308% Part C revenue growth and 238% membership increase from 2019 to Q1 2024.

• Operating expenses reduced by almost 30% year-over-year, mainly in back office functions.