P3 Health Partners (PIII) The 44th Annual William Blair Growth Stock Conference summary

Market Overview and Business Model

• Operates in five states and 27 counties, serving 126,000 senior patients, with 92% in Medicare Advantage and 8% in ACO REACH.

• Achieved 23%–27% membership growth and 29%–42% revenue growth year-over-year, reaching $1.5 billion in projected 2024 revenue and $1.27 billion in 2023.

• Focuses on value-based care, aligning incentives among patients, providers, and payers to improve outcomes and lower costs.

• Maintains 97% physician retention and 90% patient persistency, supporting long-term patient outcomes.

• Utilizes data integration and analytics to support clinicians and drive value-based care initiatives, with a technology platform for risk stratification and care management.

Operational Strengths and Growth Drivers

• Delegation of utilization and claims management enables early intervention and cost control.

• Identified 20% of patient population with under-documented chronic conditions, presenting a significant opportunity for improved risk adjustment and revenue.

• High contract density with over 20 payer contracts and 2,900 primary care providers, focusing on deepening relationships in existing markets.

• Partnership with Innovaccer aims to accelerate analytics and AI-driven initiatives, enhancing predictive modeling and data accessibility at the point of care.

• Physician-led management team with over 20 years of value-based care experience provides leadership stability and expertise.

Financial Performance and Efficiency

• Arizona, the most mature market, has seen 300%–308% revenue growth and nearly 50% PMPM growth, with a 238% rise in membership from 2019 to Q1 2024.

• Inpatient, ER, and SNF admissions per thousand have remained steady or decreased, with utilization trends normalizing to historical levels.

• Achieved nearly 30% year-over-year revenue growth in Q1, with sufficient physician density to support continued expansion.

• Reduced operating expenses by 30% year-over-year in Q1 without impacting care delivery.

• Medical margin grew from $62 million to $135 million from 2022 to 2023, a 118% increase.