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Privia Health (PRVA)

Participants
Robert Borchert Senior Vice President-Investor and Corporate Communications
Shawn Morris Chief Executive Officer
Parth Mehrotra President and Chief Operating Officer
David Mountcastle Chief Financial Officer
Josh Raskin Nephron Research
A.J. Rice Credit Suisse
Lisa Gill J.P. Morgan
Ryan Daniels William Blair
Whit Mayo SVB Securities
Jessica Tassan Piper Sandler
Sandy Draper Guggenheim
Adam Ron Bank of America
David Larsen BTIG
Richard Close Canaccord
Brian Tanquilut Jefferies
Call transcript
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Operator

Good day and thank you for standing by. Welcome to the Privia Health Q1 2022 Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now today, hand Investor Robert Communications. would to conference and I speaker your Borchert, Instructions] like the to over Corporate [Operator SVP of go Please ahead.

Robert Borchert

everyone. Thank good Gigi, morning, you, and

Chief operating priviahealth.com. Joining accessed Investor Executive and Chief me our from and Officer; Mountcastle, call the Officer. David Today's Relations slide highlighting presentation Chief and Shawn financial website. and is today Morris, being Operating Officer; Mehrotra, webcast press President the are release Parth performance our posted and Financial This of remarks formal our section on our can be IR our accompanying are

get and Following comments, a timely the The prepared to questions. limit queue line for fashion. yourself We can ask one question our follow-up, through press XXXX, will you today one results please we are in ended final that until reported and financial open the filed we Form in is so March with Commission. not and quarter are and for Securities XX-Q Exchange our XX, preliminary release the the

those financial statements current and objectives, we our results forward-looking to business nature XXXX. are cause in differ will May our subject statements, today are future performance risks plans as actual make to on XX, Such including the that to view our may of and based business and our expectations uncertainties operating of of and related future Some and materially.

conjunction statements these with most As today's cautionary SEC company's be described release in the risk recent a result, factors and our in statements considered should press in the filings.

included to posted accompanying and to comparable financial on release and presentation reconciliations measures the these the in our refer on press non-GAAP call, may we website. certain our Finally, GAAP measures are slide of measures

over call Shawn. the turn I'll Now to

Shawn Morris

good Thank morning, everyone. you, and Robert,

to the another for growth remain posted of We our country. quarter anniversary physician-patient honored and scaled in we be first of marketplace, XX in beyond highly provider achieved strong partners I'll performance the are XXXX networks the the Health outlook as our financial We year Privia Parth update, quarter across morning, Tuesday, very one than past we The continuing are provider in provide one-year nation's NASDAQ of of leading clearly ecosystem, organize our confident key ago. to physicians an and we continue of company success a our will and is operating since organizations. recent conclude and celebrate With our Health to physician physician proud in Privia prior IPO is public our continued have healthcare relationship business eight the our and as level, overview and enablement XXXX. X,XXX present Privia and your our high performance questions. physicians with the of then momentum Health with across the updated will highlight and that cornerstone a a This at a very leaders, existing we District our this. our before representing Columbia. take highlights. outlook the more at were the David results excited and providers and execute to states markets, quarter XXXX for to along financial first of This

guidance updated enterprise growth. while EBITDA accelerated year-over-year, our to The metrics was operating and was is collections in financial working top-line XX% momentum and more scale. investing at quarterly into business XXXX. visibility growth we're Our across XX%, over is model increased our high up this forward already practice than support for and reflected Adjusted our record a our

performance of as the Our value-based our utilization a care volume driven in serve growth This growth collections, is supporting our arrangements, benefit balanced across of locations. same-store set a includes practice by cost both ambulatory lower to the strength all settings. patients as fee-for-service is strategic existing by patient being This in our continued initiatives. in we well driven as

our strong lives, new generated and solid As value-based our partners high provider of across of provider number arrangements. with continuing enable existing attributed the drive retention. and results to of and our another we our clinical sustained additions quarter operational with markets We in provider align expand in performance execution is level combination and

position In Parth enter years. few me and active look markets to business on robust as to provide let new the addition, our more development that, ask next we remains pipeline With details many over market expansion.

Parth Mehrotra

Health care networks of one the is country. care-centric primary in building delivery largest Privia Shawn. ambulatory Thanks, the

we way. replicable reimbursement Our patients business models, the all as provider participate possible in XX value-based model broadest across types, has a states, distinct serve in attributes are and with all that all all partner number of arrangements across

a offers partnership complementary model to value-based system as Privia is ACOs. and as our strategy payer and first such partner the our Privia, financial in balance profile. to entities, of providers, growth our providers. the care Partners partners and commercial, many also affiliated offered markets. physician wanting half A only we component Care opportunities brings as to density medical platform XXXX risk-bearing is across at-scale with in and of looking to operating space One It that practices and health contract growth for a Medicare, Medicaid model. our or programs. tremendous advantage offers unique much provider nationally and for ability This scale our enablement in is as we as market states. broader or as but we our to of introduced gain overall groups Privia's diversity facility our monetize start employed in provider Our partner independent with a opportunity with entity This other highly risk-bearing We second well

outcomes in our underlying This value-based superior stack-enabled deliver and enables to services are arrangements clinical to groups the part ambulatory Privia's and entities our us services able without as risk-bearing Underlying alignment a our integrated of each value-added an system. of offer these and physician owning partners in maximize delivery care number payer physician We integrated geographies and management of medical to is practice. platform.

As Shawn and extremely new encouraging momentum continued has potential existing to noted, across our business be geographies. both

patients for locations the providers in of than now across caring footprint District in million practice X.X national includes more Columbia. states eight XXX implemented X,XXX our Our

As provider scale also country, in breadth and groups by density our medical a the the is specialties. of one defined largest geographic of

While outcomes reduce with than network of Privia a unique our we the costs care-focused, some partners This approximately family we broad medicine, provides medicine, practice specialty XX% value-based are ambulatory to across partner OB/GYNs, primary more care and types. as and that improve patient spectrum. offer with pediatrics, advantages partner payers care can including with delivery internal actually XX

led to value-based of one most broadest, the Privia have platforms industry. in model balanced, well-diversified the and operating has Our strategy care and

Our This attributed lot our contracts the and now downside nearly for as risk lives a earn momentum more programs. in Medicare and Medicare, up Medicare savings greater payer of and cover attributed in commercial, our Medicaid years us and of growth, we goals remainder than and across XXXX, We EBITDA programs. execute visibility opportunities to of approximately take to XX ago of year giving XXX,XXX more Advantage top-line and from and contracts of the covering on provide This MSSP XX% two-thirds risk come. for move XXXX. significant many to a shared XX.X% continues is the across since than end at-risk payer the lives upside thoughtful

financial review Now results and I'll to our for quarter updated first ask outlook XXXX. David

David Mountcastle

Parth. Thanks,

highlights scale, quarter a operating into momentum increased is first and million, ago. $XXX.X that business our outstanding XXXX. QX up performance collections our already XX.X% Our year continued model working Practice at to from

XX-Q. revenue million, our report noted last increased Care of our item over we EBITDA same capitated line of last million quarter, margin we as $XX.X sources $XX.X adjusted the will XX.X% As in period in XX.X%, revenue Capitated and up record was a our a revenue year. section was QX. new

growth. At translating time, model margin margin is our as capitated line the investment and quarter the to top than leverage EBITDA can expected, support line grew – growth you our across expected care to enterprise our EBITDA as faster this arrangements, accelerating Our growth into expansion. business new top nicely clearly as our the as in top-line operating see due same and this well

Our a of ago reach increased adjusted from a care basis year percentage EBITDA margin points margin as to XXX XX.X%.

quarter momentum, and financial collections, to level GAAP We in to guidance of through the updated revenue, on guidance. practice of XXXX, first to and expected care have mid of performance, high our and a visibility confidence our business expect high our now reach end. contribution we be high platform rest the end with the adjusted Given margin ranges EBITDA

new opening of are contracts, lives over our identifying at implemented unchanged stage on early focused adding year. initiatives. expand this platform, execute existing our for opportunities and practices, providers, on continuing providers increasing We to growing time. the This attribution includes to multiple remain and and growth guidance risk-based new Our attributed markets

note our that assumptions I underlying XXXX only guidance, from entries. and to our Our includes outlook announced previously previous are unchanged new wanted market

differentiators sheet position $X than more Health's free annual net with our of cash less a million. than ended with expenditures cash Privia QX We of is key $XXX balance One of million, and capital solid flow. positive

us to our to expect opportunities strength financial confidence to on of future to platform any invest in more growth continue continue This our We flow gives year strategic capital the reliance foreseeable without sources to free for nationally. our external and than on and all XX% to flexibility convert of fund initiatives EBITDA adjusted cash full the XXXX. expand

that providers organizations business looking we patient and expand are With partner our sound grow financially operator, that, improve with to now of population. healthcare to for types question. ready for to first with continue We outcomes scale their entire our all are

Operator

from first question Raskin Thank Instructions] from of you. Our Research. the Nephron Josh line [Operator comes

open. now is line Your

Josh Raskin

and Hi. morning. Thanks good

Just first numbers question.

what care? I in the the heard early I Was of value-based you if that put I just terms think assumptions the in was a practice year of to we're year? that it you the make much you accruals was value-based that remind sort that earnings of in David how mentioned? you think XXX, the Q, collection, going care say could said number ago? million this And us the $XX And – for

Parth Mehrotra

accreting we've than the year. that year question. piece the you'll see mention the There's because obviously the care fee out, arrangements you'll Look, – broken practice that in shared so also where last this we'll accruals the or management Thanks, clearly that much collections. started of revenue see But Q. the that faster savings and that capitated we capitated disclosure see in you'll other – Q the Josh, of for the the roughly,

Robert Borchert

But that was capitation million. we revenue $XX.X stated from

David Mountcastle

the the correct. Q break that's to there's in again, $XX.X a And new revenue. going out the million table revenue, from capitated

Josh Raskin

total Okay. value-based million. practice would that right? the But care $XX.X be that Is collections higher than of portion

Parth Mehrotra

Yes, that's absolutely right.

David Mountcastle

Right. Correct.

So as increased for example, an example. shared savings

Josh Raskin

Right.

as give but how pipeline, if that the are of look today, pipeline then March your us And if implemented? as at on And just to you providers, for not just were but but many just of in physicians. Okay. of maybe curious comments yet XX, have you I'm not sort yet providers that of could sold broad

Parth Mehrotra

Yes, definitely.

disclose understand medical sole six providers. them implement forth. to you takes So in it so and five we model, our about providers, as don't our months credential But to groups

to development in existing through robust. first and quarters and obviously, full. pipeline year So one a the pipeline May, of see at almost this year. year geographies. continue had the sales this we visibility we A momentum end We in pretty of lot best last have pretty point, is sitting our is business year the record to And of the our

translate provider and then for will the that of into XXXX. all this rest year the implemented going of growth So into

Josh Raskin

That's Okay. Thanks. helpful.

Operator

you. Thank

A.J. of Our next line question the Rice Suisse. with comes Credit from

open. now is line Your

A.J. Rice

everybody. Hi,

of First XX,XXX. one-one, Advantage I lives, at guess, you the about at I just in all, said Medicare on capitated think

there to to your to are the us a give rest a full Can in at you of you'll where of about XX,XXX. year how over risk year sense you likely seasonality puts trend on those And MA where the is of lives? of of that's end you additions lives? the XX% XXX,XXX Looking capitated have view today the that a

Parth Mehrotra

Yes, sure.

started we with intent XX,XXX. to So year year. is that Obviously, grow the over

the arrangements we stated is we previously, adding financial once are appropriate. certain lives to capitated that the very we'll As profile be thoughtful in

specifics, the we should out example, is see this the nature contracts MSSP given ballpark should we're year then to, relative enter while attribution. from your break be estimate for again, going you the right. in accretion. up into So commercial front-end has of pretty or so loaded beginning the these – not the trended of that And XX,XXX the as numbers, And an to

And you rest So then at much, going stable we lives, beginning be into it'll now see the add the should the year. pretty next that likely of year. of as

A.J. Rice

a Okay. of And another clarification then maybe just question. follow-up, sort

that is think range, the of On the of start? step that the occurs in we seasonality QX should down practice or your collection in QX, above there that high strong given came any end QX

Parth Mehrotra

year. momentum our adds, we QX ending in are No, the typically at of this last lot the of quarter, lowest terms both year seeing a beginning in is fact, physician of

flows continued conservative side comes So and that’s in EBITDA of P&L expectations the the tough And it’s our the Also arrangements ahead strong that to trend. perform outperforming. to value-based try our practice in been in we expectations, then on our the but to through numbers predict in with then leverage reflected the down our finally, and utilization well of is ahead above if all collection programs. operating continue that be to the be

estimates our of accrual reflect So programs. that in each

we based like growth broad pretty see it’s and So way. to that it

A.J. Rice

lot. Thanks great. Okay, a

Operator

you. Thank

of the comes question from J.P. next line Lisa Morgan. from Gill Our

Your is line open. now

Lisa Gill

like just would it I morning. Is of Can talk flow. maybe appreciate for timing nice my year. on the the first first issue? first looks to good about and But be I about cash a side. increase just cash question? EBITDA with adjusted quarter think negative you comment start Great. and just Thanks flow had XX% in was your very receivable you the around cash want much how flow a to that

David Mountcastle

Yes, it just bonuses, when year a where value-based last have And year. we to QX. so Lisa. our one pay outflow We're large just timing to last definitely in and do be year. item receive that's of QX that issue. relatively we timing cash, cash kind mirror similar annual in expecting then this trend of expect we it's arrangements a Thanks, Yes. unique our the We to the

generally by of the is we to sort year. then But our of And QX negative flow quarter. XX-plus equal end So just from builds still or cash there. the it expecting percent are

Lisa Gill

quarter. would Do you Is for beat quarter you the congratulations great. for the increased we and beat, question, in rest as seasonality? another guidance to rates? first of about the a of the guidance things, of year, and nice labor have the about Okay, timing out for first we just think as And then the the EBITDA expectations, And think specifically about of as the call just is had some the rest you around anything kind there rising how year? example, to think there for

Parth Mehrotra

of high we year six weeks We end and and Lisa. It's gives gave to Look, start our the it's to Sure, us Yes. a Parth. lot on guiding you a here great guidance and care the EBITDA when platform are confidence. ago margin contribution.

operating So the the top performs. bottom line metrics are really in showing leverage the business line as

that is seasonality. and year. predict Obviously, hope EBITDA Our last it’s that, to should tough to hopefully Again, that we should continue trend mirror like utilization same see things continues. the but

year, is But to at the So early that towards end pretty goes. the continues our the it as we're and hope high this guidance year, excited we'll in into this it's again, but stage. the update strength guide

Lisa Gill

very Thanks Great. much.

Operator

you. Thank

Blair. Our next Daniels question the of Ryan from William line from comes

now is open. line Your

Ryan Daniels

strategic, profits. lives and be and a key then utilization? better color but that providers some risk for driver, there one you Maybe curious question. at-risk lives the taking obviously, the I'm for financial, better year, financial and to is just the Thanks adjustment? to Just that and strong would give the the between start of delta delta and reiteration Is morning. feel Are us the any great. good revenue seeing on Yes, what one more the

Parth Mehrotra

It's Parth. Ryan. Hey,

maintaining broad-based the But practice We've the our beat performance last ahead fee-for-service, it's across So so nicely guidance. year. metrics, pretty we mentioned, Those lives. year. value-based care, the and QX both early and ending like attributed year, it's on last provider still on it's in from sequentially we're good strong were in year, collections, ads still and on I QX then fairly implemented providers are utilization

is we the does new may Our year. hope we that keep update add that we'll any of it. Obviously, the during include guidance seeing course momentum, markets and the not

We active BD pretty have a pipeline.

those year of and the we the slowest in markets. two just are So when move did hopefully, last we metrics as update entered again, given providers how more implemented, But it's down we'll year, those that to EBITDA. terms the outperformance during But course collections how and through on both added then to see P&L the much great lives so flowing the stable. of are the visibility

Ryan Daniels

And like helpful. a platform. to maybe kind small ability overthinking bit, two, I Partners move interesting but of and this of And type only question, case study That's then your Surgery multi-payer maybe number state, your ambulatory of then with more specialists which absolutely. I'm model, in an partnership assume with and Okay, speaks a care. you strategic manage business your it's and seems the that for a pretty to and a downstream wide number could into

speak it's model. it revenue driver, a little Thanks, So not that of strength guys. the pretty but a seems strategic know you to the I bit? can Again, to huge

Parth Mehrotra

The payers, you Optum strategy. national scale, is other we very puck does a all definitely, entity take the can strategy our valuable It partner these the that is be with and as these part add. just obviously, a similar Surgery And the all going company this somewhat very XX is acquired, start, reimbursement have large-scale Yes, a lower-cost as then broader care specialist. providers, we on with will, broadly Shawn entities I'll them surround like We back, you focused health to system, and this primary and very systems. ambulatory delivery right of and Look, care providing ancillaries groups speaking, if medical value-added states, they've build is at fundamentally if you Partners then patients, all participate step broad given only Care, in where allows is to models. very assets what to this access moving. but us the know, believe to TAM,

to sheet, in but we a the to and same fraction partnership capital-efficient of Obviously, a achieve model do trying very we we're trying balance are don't that size. thoughtful have but result. the are We the –

Shawn Morris

only that would in is comments Yes, state point can teach a and like And or strategies kind or the ability mean, care of to market out, our low-cost go, that time with Ryan. that period kind to we setting and of of out to way. doctors of I company types market us we direct a would value-based was establish those add it’ll our – the ourselves the to mentioned early move Parth's Partners The of like levers. Montana as align arrangements really, really obviously, thing other of they're a of makes payers as of over get lowest early, that. get noted there market lot as kind and to medical the We I that the of seek into the partners relationships group a it you build we Surgery aligned value-based in setting, a into take a and providers. for you reiterate, cost want with kind well. kind sense like go to move It and work – with

Ryan Daniels

on congrats momentum. the and Thanks Perfect.

Shawn Morris

you, Ryan. Thank

Operator

you. Thank

the from comes of Our Securities. from next Mayo question SVB line Whit

Your line open. is now

Whit Mayo

Thanks.

that start investments just to guys with were into I think first you XXXX. want I the coming making

of to helpful. need up or investments? make on thoughts I markets, anything observations you the those ACOs, the or to think you a early stand would needed be given some infrastructure. lot platform, risk any Do growth, Has new Just the more momentum, less? the the changed

Parth Mehrotra

call, continuing and board. see we're as thanks they make organization the stand, great we our execution last question. to to earnings Whit, investments. as you the It the those is No, Hey, communicated have across Yes. stated at obviously for

on now the getting are top line we cash that the profile, our than we the the margin as beauty plus XX% speaks margin. more where a not in I with any there, this free on despite and you're those year on halfway XX% of and the business very the the investments, pretty and guidance is, You're are we're long-term it top investments, scale EBITDA from and seeing is compression outperforming there And clearly our of given – that this that or on EBITDA, growing halfway much sacrificing business already from flow. business to line. And think we've outperformed financials those

feel new the about there's but to make investments. we So with and we enter obviously in us But a we investments. are pretty as out – not those there is momentum we're markets, where the business. looking investing we sacrifice the big helping good are thoughtfully We EBITDA TAM

Whit Mayo

the of some from you wanted of a of quarter. that's couple to you're I it's and should visibility know feed in to but how into getting get versus data some on of more No, that CMS you've sort alluded times specific expectations. And ACO the Yes. tracking helpful. directly in this sort early, give you're I that performance

plan you the are there also track? how ACOs new the and your that tracking into have internal So just versus with those Thanks. converted extended

Parth Mehrotra

definitely. Yes,

get we data is lagged, typically as the you So know.

we our ACOs, that's So line. our get early reflected data ahead the financial of little And year the as statements, we performance both bottom stated, and the stages is that's It's top of in the the expectations, and all XXXX. and the but then bit still new reflected reflective in now accruals. in for is performance data our the received we a

accruals So and and and are we've our said well true-up, to we done. reflecting when I hopefully, think time get it's perform August comes, that. all the expect final the By we pretty –

are continue get so just that data started year. got the ACOs over course again, we'll appropriately reflect concerned, new in As our stage. of far as Jan guidance. pretty We we'll And the early this that to X,

Whit Mayo

Okay, guys. great. Thanks,

Operator

you. Thank

line Piper Tassan Jessica of the from comes question next Our Sandler. from

Your line now open. is

Jessica Tassan

good question. for taking morning. Hi, Thank you my

just have the and implemented count then follow-up. I So on a one one provider quick

the in provider announced So Can you in providers, just guys not implemented February. those early whether you are now confirm Montana Montana implemented or XX providers count? on included

Parth Mehrotra

Hey, Jess. Yes.

expected be results. QX likely our so they're when implemented they'll we some in reflected be point at to QX, report So

Jessica Tassan

I comping on XXXX, about provider would collections periods don't just then historical XQ And helpful. be in per if to And relative trends or XQ? should Got historical you. it. basis, quarter-to-date be volume XQ relative to we maybe as but quarter-to-date helpful. then Thank fee-for-service know fee-for-service thinking XXXX comments any normal maybe just practice That's a on

Parth Mehrotra

QX with to QX year, continue the expectations. utilization last couple year trend above That our we into months here this changed nothing's first well So in the QX. see in and continued from of

like momentum we Again, continues. that strength of that well of tough But hopefully, pre-COVID strength that But hopefully, practices be by given been our the months. continues. on time. conservative. wide So same-store to are respect. think we a are last and predict the platform to over market these It's baselines gaining share the basis XX We these practices during

I And see that So we think a of hopefully, continues. lot momentum.

Jessica Tassan

you. Got it. Thank

Operator

Thank you.

Our Guggenheim. of Draper next from question Sandy comes the line from

Your line is open. now

Sandy Draper

good much, very Thanks and morning.

Just – sure. I clarification I'm quite think a here. still not

apologize. think like addressed I didn't it, it, care but guidance, look get your – quite have at I full if to margin but your it you're year applies close the first you was so quarter, XX.X% I you in about may Looks XX.X%.

Thanks. it quarters expect thinking pushes be from you we're get what you and the are year. the XX.X% that Or big have drivers? are to of linear? to trajectory Just about savings the up where of And to for key the first when the pacing get remind there true-ups do and jump about any lives you XX.X% me, any just notable a of then capitated where to or trying So shared that line in back down? that a think going sort that quarter that comes up, trending sort for

Parth Mehrotra

for thanks question. the Sandy, Hey,

year XXXX one on of for then low are that for the trued trend practice see value-based the so if much should deviation results care we to of the of and arrangements capitated not QX. later periods year, it's mimic margin this sort from a flow beginning you ramps year, the those those margin and see expecting accruing trend our up down get care there's does of Obviously, this care much where in the the as you'll percentage or to side, our collections we when The we should year. years, pretty that up a positive previous big most prior up. get in thing estimates entered is So by

driven So reflected that the again, will that's guidance. trend, be some anomaly But there be that. the by in and should

Sandy Draper

some then a helpful. the this That's think the beginning. questions Great. I And to of follow-up there relates at and

that buildings out. a providers, little is a state Thanks. going this individual to wasn't big add of think One back big is or some math the is which really nicely the of look up really bit? shared per you and anything you basis. this quarter purely be sequential that that you savings may practice stable, about stuff you it level practice to to it think should and down ways year on providers? based there the saw Again, dropped I actually add should the a Or obviously, provider, chunk outside not collections that, that that see provider, was of maybe related on other be unless, generally be collections relatively year Should at of over the of if we provider-based think a about per

Parth Mehrotra

Sure.

out So this that calculate be fee-for-service adjustments be we capitated inflation that or revenue because contractual healthcare that book. it year. generally should from stable accounting started practice the separate then that think and should you any I do number the the it speaking, important for on have collections

practice So there be jump due will arrangements. a big collections to in capitated those

I So fairly hopefully, remain fairly see But normalize that, time. over that you upwards should think trend ticking stable a should for you once slightly. stable

Sandy Draper

Okay. Yeah, that's helpful.

queue guess, make Thanks, Parth. So forward. and for that the we'll adjustments those going I do and wait

Operator

you. Thank

Ron of from Our of line Adam comes question America. from Bank next the

open. now is line Your

Adam Ron

Hey, thanks.

and get the to And care. really value-based makes and a at some mentioned to multi-specialty care primary utilization you the side value-based too, works. commercial expected. Like I than I costs. understand specialists. I and groups exactly add assets stronger to discussion Care, comparison that negotiating creates in But it to leverage ones it both in care and still unit are least the how that guess, that of one on you, back lot Going are scale mentioned synergies about sense Optum only that cover of higher And connecting, you me, don't you the being

it efficiencies do is side? get for the on shared creating of any example? exactly how savings, the So And value specialists

Parth Mehrotra

Yes. Good Adam. question,

and Shawn add. I'll So start, will

arrangements, what a are in fee-for-service. downstream cost fundamentally, recognize we look, So from value-based any the largely primary is care XX% provider of

the that cost inpatient, importantly, delivery and outpatient, to strategies, broad care specialist, and it's have of drug specialists, the lower-cost, forth. whether it's higher-quality So is, of even strategy MSSP, like trend with value-based upside-only alternative the can But fully the some site to enough the theme, facilities, that you're of be therefore, impacting full then, healthcare. spend. where more may obviously, provider system the that payer a play so trend a impact cost commercial primary not take where at to in pools risk accruing pool but the risk, need of primary have the in doesn't provider is we or care care that And

that's think something really with an obviously, do in. impact appropriate, our bundles, an And looking we then example. in that, going as with participate programs can we're in alternative like strategy our It's site where care with Partners, Surgery of where specialists strategy. I the partnership closely

obviously, much most. than broadly more us So participate that helps

Shawn Morris

Shawn. is Adam, this

of what to of and attributed lives we're we're we on care the of in end But when what of give a of risk So we if focus build we type But what the XX level a we we're the medical going and an providers I'll kind state, as these very a taking care always in at begin you patient of density depending think And strategic medical Medicare at to value-based be groups, from, what arrangements. looks They're like. you see build come Advantage. time, That's same market, be. cohort adding, that's example about we the that – do, focused. just should about level where over primary primary high groups. always at

are have in sites kind get of our of traditional five things dense physicians six the the But to, you volume of the those you'd And to as managed – these density surgery, with service specialties we build that of that say to want to specialists then any say, right get want type providers, we are – the traditional primary and of our certain looking a those right care. of geography, types group. add about ambulatory all really think doctors. care and kind compact, guess, what we just – levers there's As to you I to

then you're on institutional manage pools. huge a guess, input, then risk. the you to So have And the beginning outcome professional I

think, we when and about. we're And we a upstream when it's thoughtful of think that's moving to institutional really what then the initially, we talking to arrangements XX-XX about manner, how where very have – about we risk And and benefit long-term, most been impact us, taking out on. incentives for the in acute kind then and we're best really payer and have is that the professional maybe structure with arrangements starting talk but risk They pool. are so they about competitive – care – we've sustainable to their accepting and facilities risk go get patients. most the that's to care primary We with right open build the incentives so

building in. groups that's helpful. of business that we're they're I take – I mean, the can type program patient, of care that's So the type in primary hope medical every we care-focused highly regardless of of of aligned, what

Adam Ron

it is. what you No, follow-up Appreciate earlier. more Yes. And one it. then to said

over to was lift you rates. collections aside you doctor that their panels build and patient and said cost But my that out were rise revenue helping time, practice doctor, per inflation. wouldn't their maximize from think, I You the understanding expect

wouldn't that number significantly up So over time? why trend

Parth Mehrotra

that out again, to Sandy, three-year kind see of basis, Yes. or you'll Over I two you not movement. should a you mentioned, components. to, happen, period, the On absolutely. And quarter-by-quarter separate value-based as to that expect have would

have. Again, years looking obviously, that ago. there's much at us, then and contract the and maturity with with accretes stabilizes by our a up specialty then mix metric productivity size, with But line, it uptrend now our join the any just X,XXX doctors it's again, good fee-for-service providers, better it's of each than and markets. impacted of the few a when it if adjustments was stable more we and a at So you're

Adam Ron

Thanks. got it. Okay,

Operator

Thank you.

comes the BTIG. next question Our Larsen of from David line from

now line Your is open.

David Larsen

thing X% a clients? sort deals. upside-only was and provider another a all, there's little of like How sending nature relief actually exhaustion care around April. thing that the working for impacting bit Congratulations or dollars the where, of is there little from sequestration fund from providers. if bit at I Is there's risk and it tolerance in it We've legislators X% think, Can a less of talk about There's you in good value-based provider your your Hi. on the that heard July, book, is Or a quarter. to headwind? Washington, deals There's tailwind? in? a the you're Thanks.

Shawn Morris

arrangements the gets their Shawn. kind and move gets at upside. providers – into type if I when And lot and tell important pools out, you I wanting of the Privia. is David, commercial are I breaking you, well, upstream. about to to – you're a the you're panel. They any that these, talk across you're we tends those thanks. country value-based it mean, provider want can if And across XX-plus, look it's whole mean, to attracted that be of sophisticated doing into This today,

we certain coming in commercial? And can hey, you – about the say, in and so share there's that. some payers corridors are or that to risk in discussions So way how

have those We discussions.

take start Medicare can It's what what So how have, down upside. – to Medicaid. that. get Medicaid you you then be opportunities you tends state-specific, the Then into you – population. the you breaking affect very other

vocal and We the they government taxpayer of shared number buckets. ACOs team that more one then percentage. kind Mid-Atlantic MSP, in We've break top doing feel successful, doing – are and lot many in for A of or XXX as stopping, programs. of that government by MSSP. CMS being You about a lot in of Privia participate of we've we at Obviously, a here The business into experience pretty those been in them. recently about out, two the discussion long the break time. in success We out like has out since getting savings getting guess, programs and the been I the don't the that being they're programs the seven really the have the shared in successful. ago, savings years beginning,

risk of Medicare programs. We to because moved is built decades. want programs or three to narrowing improve, speak have of programs But there. we success do a program that, two enough and going And CMS. putting us. with that. doctors. CMMI think and to speaking, those move think you'll So from do that positions I analysis. that. not over has these these support the our a programs. for years. They're this Advantage you their They're And that I to are don't over team the We're in continue me they're They're we We've we as see next, money, they our one what skin the built should in – with sharing us lot – in game. lot and But into

in move tailwinds we to those from headwinds measuring how So the we program thoughtful we're decisions. the and and were very we make program, when

supportive programs. but very – CMS very pretty we're supportive, improve the So out upon be thoughtful, decisions of of be to and coming that now, we continue that's the

want I lose to thing monotonous going take possibly – see – we as same, risk commercial like do upside. metrics too the back – agree doctors I where the of programs and programs to of soon I built haven't but exactly more, confidence. I but think And about they they'd be your can they're – what they maybe such you're and that there with you'd CMS are is kind similar want we I think yourself start to payers risk. set what it. I other the are don't quality you're – And do. there in start want discussions, what is And the guess, last is some that's believe. – saying going they the say think – has are. we're but thoughtful doing worst question, to that's seeing thing The We're they And you mentioned to very payer upside, our fail, we're to I to you seeing off they to and you think move they're

– and the way of out is supportive taking they're we're the they're this programs. what So very saying there

David Larsen

that's the we Or the just are and on January? you very slight Thanks pullback of in stock May through one which to volumes, your with like have of – just labor to costs, the quick And the in great. cash is do drove a volumes March, bump from impacting probably that in sort in your Did going cash you April how as much. upside? invested groups one. that lot up a collections? get practices market continued COVID impacting interest and what market. imagine seeing more their I April, how our There's physician then And year? volumes capital Okay, the rising strong market, How is sort January, progress they the and collections compare a rates inflation,

Parth Mehrotra

Yes.

continue I think for is, obviously, expected. much to than it's two things higher utilization what us. see we One we

trend world much in stronger, the as and much, the So quarter, seeing last we that that same normalizes, come we're continuing. see said we

on helping obviously the book. that's So fee-for-service

with forth, other our to gaining our are so and of platform. practice. a patient and same add with basis, on they're add doing to think practices they're able also panels the market providers enhance share well us, that's We We're and same-store how productivity, reflective able to

private then, entity So on model where a I worlds effect groups. well think of really today dynamics, programs, around us to things singleton like gives an somebody, and It with supported set their bigger, flywheel relative so of realizing best where whether hard equity stack a worlds, is a best of both structure entity, are existing and value-based to independent bought this maintain to autonomy their model asking the Privia, join are both selling and bigger this to infrastructure, from is the seeing health all which challenges, all it's our I are helping entity yet physicians technology these the get by real they forth. medical have And there up colleagues a think these where practice so whether complexity something it's that's and their them of of look, our governance same-store we're being basis. system, And a physicians our forth.

financial terms So growth all our I the think way of – reflected statements. in we're in the momentum in seeing and all that's that

Shawn Morris

– the on, was in I to XX my what markets seeing. And at the going think, what's invited. to one spent kind our – was going with there's of But their point physicians in NASDAQ our we They physicians is – our last our well. market. understand value-based on Parth's they're they're – have no perform about seen of growth And does mentioned we their are with of, I we it Yes. seeing spent pipeline seeing physicians where inflationary care reflecting kind full I I few peers immune about add they that And want our it's where no remarks, better. Their prepared was time on spoken have joining. is a is peers their performed haven't of probably colleagues in in last are years. them telling really lot it. pressures providers and the of They to successful, are being –

some of they're not our and some fueling in guess, immune – I it's some And growth, of that's to it. an guess, I helpful. So odd way, driving the if

David Larsen

good a on Congrats much. very Thanks Great. quarter.

Shawn Morris

Thank you.

Operator

you. Thank

of Close from the question Richard Our Canaccord. next from comes line

Your line is now open.

Richard Close

prefer the Yes, economy for you the How or you wanted that. that downs and on a long How do here? this pipeline think it and Obviously, ups you’ve physicians seeing models think time, different deteriorate from Shawn. for models. do whatnot. I choose been guys, around business changes your just seems to different expand in do

Just experience. your on curious based

Shawn Morris

you calling almost me Elm. offended me and Richard,

of – move pretty to mean kind providers they not mean, have had come guess, kind it’s the the sell year are are last I over been not question. they looking I to I of mean, of last number and the board is immune that their to in – kidding, doctors mean, their we this hospital, open us talking we’ve to to something Just are either said, the I sell as to one leaving that number thing but I They’re it. and autonomy, select-in, in and do getting they and seen going addition And type are we came you better to sales the both we why we a members part somewhat of but arrangements. larger autonomy we say. these meeting. looking grow and out think it’s kind worlds. doctors some were tools But the got pipeline having We’ve – said, be is it’s we different I market I board little there That better those physicians. know and but are to lot join some arrangements of of successful great And and some – looking join markets. to a want momentum practice. markets like is necessary to of of as some been systems to it’s our continue – best bit are helpful. they a providers time. but want two recent it’s autonomy not They the over into and said, very are the of to we’ve is robust perform

be driving to think successful results some of the I – – at we’ve drive in got for day physicians. it’s the So end success growth

Parth Mehrotra

– add more to the mentioned. independent facing doctor lot the you other and pressures health And as acute Richard, know, more is in employed manner thing in these they one providers, practices. much we a systems a something affiliated as community we of facility also offer are or than I'll the

So obviously, inflationary – forth. the the so issues, staffing in if you pressures hospitals, and

like an Surgery I And think is with in XX%, systems entities, ecosystem the business our health through positive really example, are our this country today. go to XX% as providers for ability in the of period. as that we and also partner and offer Partners

Shawn Morris

And good the seeing and Parth. of continue It's just grown momentum. inflationary to that I going – we're now COVID factors pressures are a months. these That's XX the think over last discussions the really point, have

Richard Close

Do that from someone like of terms that perspective to selling partner you? think for you practice benefits a valuations Is ultimately, you that the your deciding of down with if guys come in tailwind that yourself?

Parth Mehrotra

from away practices, you in our as in think know, We should that summary, think, I We've misaligns interest. model. shied be. it obviously buying

the looking as for are tailwind to expected, and who I were borderline not getting those think it's physicians on they So are a obviously, sell what or – us.

Richard Close

Okay. Thank you.

Operator

Thank you.

line comes Phillips Our Jefferies. from of Taji last the from question

now is line open. Your

Brian Tanquilut

have answered. been Hey, Appreciate guys. All Tanquilut. our much. so It's you it. questions Brian Thank

Parth Mehrotra

Thanks, Brian.

Operator

time, remarks. this would I turn further no to like Thank for back the At over showing Morris you. Mr. call closing questions. I'm to

Shawn Morris

of you, Thank tell. can remainder to support want as look day. continue rest quarter. we forward I you listening today. operator. the I to and level joining speaking execute at looking We're at to excited, again Thanks. your the the Enjoy and in interest to of forward high for XXXX, your appreciate thank through everybody next Privia. to We're continued this you of and

Operator

you Thank call. conference for participating. today’s concludes This

You may disconnect. now