Agilon Health, Inc. · NYSE:AGL
Agilon Health — Investor Day (March 2022)
92 slides from Agilon Health's investor day presentation, Mar 11, 2022
Slide 1: Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 1
Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION Statements in this release that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchang
Slide 3: Today's Agenda
Today’s Agenda Time Event 9:00 – 9:05 Welcome & Agenda – Matthew Gillmor, VP, Investor Relations 9:05 – 9:20 Overview – Steve Sell, Chief Executive Officer 9:20 – 9:35 Growth Strategy – Veeral Desai, Chief Strategy & Development Officer 9:35 – 9:50 Market Strategy – Ben Shaker, Chief Markets Officer
Slide 4: Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 4
Slide 5: Introduction & Overview
Introduction & Overview Steven Sell Chief Executive Officer Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 5
Slide 6: Key Takeaways
Key Takeaways agilon’s Market Partnership & Massive Opportunity is Aligned PCP Drives Opportunity for Inflecting Significant Value Value Creation Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 6
Slide 7: Our Vision Reinforces the Importance of the PCP
Our Vision Reinforces the Importance of the PCP To Transform the Future of Health Care in 100+ Communities Across the Country by Empowering Exceptional Patient-Physician Relationships PCPs in Existing Markets 200K Addressable 15K Market PCPs on agilon Platform 10K (2023P) Vision 2K Copyright © 2022
Slide 8: Acceleration in Demand Drives National Scale
Acceleration in Demand Drives National Scale 2018 2023P Risk Members on Platform: ~50,000 ~500,000 Partner Groups 1 23 & Geographies: (2 Geographies) (12 States, 25 Geographies) Partner Primary 180 1,600+ Care Physicians: (700+ total PCPs) (2,200+ total PCPs) Diverse Partners PCP, Multi-Specialty, P
Slide 9: agilon health to Partner with MaineHealth
agilon health to Partner with MaineHealth Largest Integrated System in Northern New England “Through the partnership with agilon heath, we will be accelerating the transition to a payment model defined by value and 12 hospitals in Maine and New Hampshire investing more deeply in our primary care del
Slide 10: Healthcare Challenges Require a Scaled Solution
Healthcare Challenges Require a Scaled Solution PCPs Are the Key Structural Factors Accelerating Demand for Value to Unlocking Value for Seniors… …But Don’t Have the Business Senior 62M 78M Medicare population is increasing (2020–2030) Model to Support It Population is Growing 39% 55% MA penetration
Slide 11: Success Across Diverse Partners & Geographies
Success Across Diverse Partners & Geographies Partnered with Longstanding, Leading Independent Physician Groups East Texas Austin, TX Across 17 Communities in 8 States <100K >2M Population Wilmington, NC Buffalo, NY 33% 66% Syracuse, Buffalo, NY MA Penetration Traverse City, Grand Rapids MI Hartford
Slide 12: Strategic Choices → Clear Advantages
Strategic Choices → Clear Advantages Our Strategic Choices Partnership Advantages Partnership with existing, scaled physician organizations First Mover Target non-traditional geographies Alignment Local Scale Develop purpose-built solution Copyright © 2022 agilon health. Confidential internal docume
Slide 13: Aligning agilon Partners in Value Drives Better Outcomes
Aligning agilon Partners in Value Drives Better Outcomes Refers Patients to Akron Hawaii Changes Prescribing High Value Cardiologist Patterns on High-Cost Drugs Saving ~$2,000 per Patient Saving $9,500 per Patient in Downstream Spend with Better Patient Experience and Better Outcomes Lower Out-of-Po
Slide 14: Trusted PCP Relationships + agilon Insights = Better Quality/Lower Cost
Trusted PCP Relationships + agilon Insights = Better Quality/Lower Cost High Touch Whole Person-Centered Care 44% more touch points World Class NPS 80+ for high-risk patients 11 89% 94% year average rely on PCP agree they receive tenure of for specialist comprehensive, partners PCP recommendations h
Slide 15: Local Market Scale is Crucial
Local Market Scale is Crucial agilon agilon Partner Next Largest Independent Geography Membership Partner PCPs Total Patients PCP Organization (2022P) 239 PCPs ~67,000 28 PCPs Columbus, OH ~265,000 46% of Market MA + DC 3 PCPs 183 PCPs ~36,000 Austin, TX ~375,000 8 PCPs 31% of Market MA + DC 73 PCPS
Slide 16: Aligned/Scaled PCPs Are Changing Local Care Delivery
Aligned/Scaled PCPs Are Changing Local Care Delivery Status Quo Improving Care Delivery and Access • Limited Data Visibility • High Data Visibility & • Poor Coordination Actionable Insights Specialists • Complex • Highly Coordinated Care Team • No Accountability • High Efficiency • No Team Support •
Slide 17: CMS Goals Are a Tailwind
CMS Goals Are a Tailwind CMS Innovation Center Strategy Direct Contracting → ACO REACH Goal: 100% of beneficiaries in total Recent announcement provides cost/quality relationships by 2030 stability and predictability Focus on health equity: Adds 30M additional beneficiaries 43% of agilon partner loc
Slide 18: Business Model Advantages Show in Results
Business Model Advantages Show in Results Capital Light Speed to Predictable/Visible Partner Market Sticky 12:1 LTV/CAC Profitability New Market Medical Margin Patient-Physician Markets profitable in Member Margins Maturation Relationships 40% growth with 1 to 2 years $57M operating Existing practic
Slide 19: Massive Opportunity for Value Creation
Massive Opportunity for Value Creation Our Long-Term Opportunity Value Drivers for agilon health Keep Growing the Network: New markets/new partners ~200,000 Physician retention & attraction Primary Care Physicians Expand Access to Primary Care – Larger Panel Sizes Over Time: ~200 for MA, ~400 with D
Slide 20: Key Themes Driving Future Performance
Key Themes Driving Future Performance agilon’s Market Opportunity is Inflecting & Network is Growing Partnership Offers Compelling Advantages to PCPs, Existing Groups & agilon Purpose-Built Platform Enables Higher Value Care at Scale Increasing Confidence in Member & PCP Economics Opportunity for Va
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Slide 22: Growth Outlook
Growth Outlook Veeral Desai New Picture Chief Strategy and Development Officer Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 22
Slide 23: Key Takeaways
Key Takeaways Market Opportunity is Partnership Creates TAM is Reaching a Tipping Point Powerful Growth Model Expanding Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 23
Slide 24: Simple Growth Algorithm
Simple Growth Algorithm Unlock Massive Add New Partners and PCPs Patients Stay with Physicians In-Market TAM Austin, TX Est. 2019 Partner with Providers New Patients Stay with Their PCPs Continue to Add PCPs Markets = PCPs on Platform MA/Medicare FFS/Aging and Members in Local Geos Commercial Popula
Slide 25: Market at a Tipping Point
Market at a Tipping Point PCPs Are the Key Structural Factors Accelerating Demand for Value to Unlocking Value for Seniors… …But Don’t Have the Business Senior 62M 78M Medicare population is increasing (2020–2030) Model to Support It Population is Growing 39% 55% MA penetration is increasing (2020–2
Slide 26: Platform Adoption Reaching a Tipping Point
Platform Adoption Reaching a Tipping Point Geographies on the Platform (Live and Implementation) Membership from New Markets Implementation 25 17 11 7 4 17 ~80K 2 11 8 ~50K 1 2 4 36K 25K 27K 26K 2017 2018 2019 2020 2021 2022E Live States 1 2 3 5 7 8 2018 2019 2020 2021 2022 2023E PCPs in Live Market
Slide 27: Class of 2023
Class of 2023 PCP Only, Multispecialty, 2023 4 8 ~500 80,000 7.5M Scaled Network, Health System New New New New In-Market Group States Geographies PCPs MA Lives Medicare TAM* Types 2022 1 6 >200 >50,000 4.7M PCP Only, Multispecialty, Scaled Network Note: Definitive documents still under development
Slide 28: Confluence of Factors Driving Acceleration
Confluence of Factors Driving Acceleration We knew we had to get to value, Learnings Why did your we knew we needed to start with Accelerating FFS group decide to Power of Medicare, and we saw physicians Unsustainable join the platform? investing differentially in their senior Network for PCPs patie
Slide 29: Power of the Partnership Model
Power of the Partnership Model Pace Diverse Unique In-Market Diverse Geographies Growth Opportunity Market Entry Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 29
Slide 30: Partnership Accelerates Pace of Growth
Partnership Accelerates Pace of Growth 8 New States / Hubs Added in First 5 Years; Adding 4 New States in 2023 Hawaii Ohio Texas Pennsylvania North Carolina New York Connecticut Michigan Go-Live: Pre-2019 2019 2020 2021 2022 Copyright © 2022 agilon health. Confidential internal document containing p
Slide 31: Applicable Across Diverse Markets and Partners
Applicable Across Diverse Markets and Partners Diverse Markets Diverse Partners East Texas Austin, TX <100,00 >2,000,000 >200 <25 Population PCPs Wilmington, NC Buffalo, NY 33% 66% Primary Care/ Multi- Single TIN Specialty/IPA MA Penetration Group Type Dayton, OH Pinehurst, NC <25% >70% PPO Penetrat
Slide 32: Adding Hubs Significantly Expands In-Market TAM
Adding Hubs Significantly Expands In-Market TAM Remaining In-Market TAM – Total PCPs Remaining In-Market TAM – Total Medicare Eligibles (Based Year of Geography Go-Live) (Based Year of Geography Go-Live) 7.5M 18.6K In-Market TAM Growing >33X from 2017 through 2023E 4.7M 12.4K 10.1K 3.6M 6.9K 2.5M 4.
Slide 33: In-Market TAM = Powerful Growth Lever
In-Market TAM = Powerful Growth Lever Same-Market Membership: Akron Case Study Physician Group 30K Partners CAGR: ~51% 18K Primary Care 41 73 Physicians 10K Medicare Medicare ACO 9K Advantage Advantage REACH Lines of Business 2019 2020 2021 2022E Pioneer MA Single Multi-Payor Direct Contracting Plat
Slide 34: Expanding Market Access Points
Expanding Market Access Points Total Medicare $1.25T ~200,000 PCPs Independent PCPs in U.S. $389B ~100,000 PCPs Health System Total Beneficiaries agilon Historical TAM $253B 2023 ~69,000 PCPs Scaled Network Multispecialty 2022 Group PCP Group 2019 + Direct Contracting (2020) 2018 2025 Projected Mark
Slide 35: Health Systems Are a Natural Evolution
Health Systems Are a Natural Evolution Progressive systems bring same “ingredients” – scale, existing patients, community reputation, leadership Lack sustainable economic model for primary care Largest Integrated System in Northern New England Growth in Medicare is negatively 12 hospitals in Maine a
Slide 36: Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 36
Slide 37: Market Strategy
Market Strategy Ben Shaker Chief Markets Officer Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 37
Slide 38: Key Takeaways
Key Takeaways Purpose Built to Support Consistent Operating Value is PCPs in Managing New Model and Best-in-Class Proving Out Business Model Execution Drives Consistent Results Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 38
Slide 39: New Business Model for Primary Care
New Business Model for Primary Care Move Everything Closer to the Physician Traditional Fee for Service Subscription Relationship Transactional Subscription Unsustainable Economics Total Care Model Uncoordinated/No Time Care Team Coordinating Care Fragmented (Payor-Focused) Single Experience (Payor-
Slide 40: Model Ingredients
Model Ingredients Physician Group First Mover Platform • Physician leadership • Purpose-built for seniors • Existing patients and infrastructure • Built by doctors for doctors • Community impact and scale • Full stack; Alignment Local Scale Technology, People, Process, Capital Outcomes Mindset Copyr
Slide 41: Common Approach to Support Diverse Partners
Common Approach to Support Diverse Partners Consistent Application Drives Consistent Results PCP Only & Multispecialty 20-year partnership Single TIN & Network 50/50 governance Small & Large Groups Economic alignment Single & Multiple EHRs Common operating structure Copyright © 2022 agilon health. C
Slide 42: Integrated Operating Model is Foundational to Our Business
Integrated Operating Model is Foundational to Our Business Operating Model is Common Across All Our Markets Operating Senior Line of Business in Partnership Organizational Structure & Shared Governance Dyad leadership: agilon Market President/ Physician Group Medical Director Board of Directors 50/5
Slide 43: Metrics We Track Have Evolved
Metrics We Track Have Evolved We Are in a New Business Model Which Means What We Track is Different Admissions Cost/Admit Hospital Utilization Observations ER Visits Readmission Rate Ortho/Spine Utilization Post-Acute High Value Visits Touchpoints Physician Variability High Risk Touchpoints MLR Prox
Slide 44: Partner Activation Creates Flywheel Effect
Partner Activation Creates Flywheel Effect The Proximity of Our Model to the PCP is POWERFUL. Success Drives Success Through Aligned Economics, More Data, Better Insights and Greater Mindshare Example of How the Physician Group Structure is Optimized to Drive Outcome Year 1 Year 3 Aligned Compensati
Slide 45: Our Model Uniquely Positions Us
Our Model Uniquely Positions Us Aligned Partnership Allows Us to Impact Performance in a Differentiated Way High Value Visit % by Medical Loss Ratio (MLR) by PCP Significant Opportunity Remains 2019 vs. 2021 Even Within Mature Markets 120% Palliative Post-Acute 110% PCP Variability Renal 100% $13 ML
Slide 46: Our Model Allows Us to Scale Quickly
Our Model Allows Us to Scale Quickly Leveraging Common Platform & Regional Infrastructure to Support Growth Grow Groups 20,000 70,000 Members in Columbus 20– >400 17 40%+ Add Geos 1 5 Geos in Ohio Sites of Care Geographies PCP Capacity Add Partners 2 7 Partners in Austin in Select Local Markets DC L
Slide 47: Value Is Proving Out
Value Is Proving Out Significant Medical Medical Margin Physician Economics Leading to Margin Progression Strong Across Are Improving, Better Cost and in Mature Market Market “Classes” Investing More in Quality Outcomes and Member Care Delivery Cohorts Copyright © 2022 agilon health. Confidential in
Slide 48: Better Quality, Cost, and Experience
Better Quality, Cost, and Experience Annual Wellness Visits Admissions Per Thousand Readmissions Rate In Same Partner Markets 100% >75% 17% 30% higher 180 14% lower lower 11% 35% 154 Medicare FFS agilon agilon 2019 agilon 2021 Medicare FFS agilon Benchmark Benchmark 44% 91% >80 Higher Touchpoints of
Slide 49: Value Proving Out: Medical Margin Growth in Our Most Mature Markets
Value Proving Out: Medical Margin Growth in Our Most Mature Markets ~4X Medical Margin Growth Far Outpacing Dilutive Impact of Membership Growth Gross Medical Margin in Year 4+ Markets EOY Membership in Year 4+ Markets +$79M $98M +33K 76K 43K $18M Year 0 2021 Year 0 2021 Copyright © 2022 agilon heal
Slide 50: Strong Medical Margin Progression Across Member Cohorts
Strong Medical Margin Progression Across Member Cohorts Cohort Medical Margin PMPM in Partner Markets1 2018 Member Cohort (1 Market) 2019 Member Cohort (3 Markets) $251 2020 Covid Impact $193 $168 $133 24K Members $152 $161 $39 35K Members Year 1 Year 2 Year 3 Year 4 1. Cohort Medical Margin reflect
Slide 51: Strong Medical Margin Across All Market Classes
Strong Medical Margin Across All Market Classes Strong Progression Given Dilution From Growth Year 5 Market: Year 4 Market: Year 3 Market: Year 2 Market: 2018–22P Medical Margin PMPM1 2019–22P Medical Margin PMPM1 2020–22P Medical Margin PMPM1 2021–22P Medical Margin PMPM1 ~40,000 Members in 2021 ~1
Slide 52: >$250M Invested Back Into PCP Groups
Shared Economic Model Creating Value for Primary Care Aligned Model is Creating Value for the Delivery System and Transforming Primary Care >$250M Invested Back Into PCP Groups Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 52
Slide 53: Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 53
Slide 54: Technology & Clinical Innovation
Technology & Clinical Innovation Girish Venkatachaliah Chief Technology Officer Dr. Dana Carne National Medical Director Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 54
Slide 55: Key Takeaways
Key Takeaways Rapidly Move Enable Higher Value Operate at Scale & Partners to Global Care Deliver consistently Risk Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 55
Slide 56: Technology Platform Purpose Built for Partner Model
Technology Platform Purpose Built for Partner Model Comprehensive and Consistent View of VBC Agnostic of Payor or EMR Sources Aggregate Disparate Synthesize & Single VBC Experience for Data Inputs Derive Insights agilon Partners 1,000 Daily Users, Supporting Care EMR Across >400 Physician Office Loc
Slide 57: Meeting Our Physicians Where They Are
Meeting Our Physicians Where They Are Integrating Seamlessly into Existing Point of Care Workflows Single Experience for 44% More touchpoints for high-risk patients Physicians Across Payors 98% Chronic condition reassessment rate EMR Integration to Embed Insights into Existing PCP Workflow Copyright
Slide 58: Purpose Built to Drive Higher Value Care
Purpose Built to Drive Higher Value Care Consistent View and Insights into Operating Levers Practice View Network View Fracture Market 1 Market 2 Market 3 Market 4 Market 5 Market 6 Market 7 Market 8 Market 9 Market 10 Copyright © 2022 agilon health. Confidential internal document containing proprie
Slide 59: Leverage Network Insights
Leverage Network Insights Identify & Deliver High Value Opportunities at All Levels of the Business Physicians Pods (Pod 1 in Austin) Physicians (Doctor in Columbus) Post-discharge Visits Low Value Testing within 2 Days (+20% readmission rate 63% of patients vs. rest of Austin) tested for Vitamin D
Slide 60: Purpose Built to Enable Value Creation at Scale
Purpose Built to Enable Value Creation at Scale Reusable Integration Patterns speeds up new partner onboarding 340K+ Multispecialty Independent Health PCP Group Group Physician System Assn. 238K Groups & Members 131K 90K 57K 2018 2019 2020 2021 2022+ EHR 2 4 11 16 50+ sources Payor 6 18 36 58 86 sou
Slide 61: Technology as a Force Multiplier
Technology as a Force Multiplier Investing for the future Clear & Expanding Competitive Advantage Cloud-Based Robotic Process Architecture Automation Mrs. Jones is an 81-year-old female with a history of COPD, coronary artery disease, and frailty. She lives alone in Buffalo, New York and it is June
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Slide 63: Physician Panel
Physician Panel Dr. Ben Kornitzer New Picture Chief Medical Officer Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 63
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Slide 65: Stakeholder Benefits
Stakeholder Benefits Heidi Hittner New Picture Chief Experience Officer Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 65
Slide 66: Key Takeaways
Key Takeaways Payors Benefit from Better Patient Experience Communities and Local Above-Market Growth in Through Aligned, Lifelong Healthcare Delivery Benefit Non-Traditional Relationship with Existing from Enhanced PCP Access Geographies PCP and Care Team and Moving Market to Value at Scale Copyrig
Slide 67: Payors Benefitting from the agilon health Model
Payors Benefitting from the agilon health Model Creating Scalable Partnerships • Aligned with CMS goal of moving another 30,000,000 seniors into total cost models by 2030 Enhanced Quality & • Scalable partnership for nationals: Benefit Design standard contracting/data, JOCs • Partner for PPO risk in
Slide 68: Payors Growing VBC Membership in Non-Traditional Geographies
Payors Growing VBC Membership in Non-Traditional Geographies PPO is a Critical Product for MA Membership Growing 1.5–2x+ Significant Opportunity Outside of California and Florida Across Diverse Geographies in Existing Partner Panels agilon MA Growth vs. Local Market MA MA Enrollment % by Product Typ
Slide 69: Lifelong PCP Relationship Creates Industry Leading Patient Experience
Lifelong PCP Relationship Creates Industry Leading Patient Experience High Touch Whole Person-Centered Care 44% more touch points World Class NPS 80+ for high-risk patients 11 89% 94% year average rely on PCP agree they receive tenure of for specialist comprehensive, partners PCP recommendations hig
Slide 70: Patients Benefit from Improved Health Outcomes
Patients Benefit from Improved Health Outcomes Adherence to Medication 90% 85% ~70% ~50% 1 1 Be n ch mark agilo n Be n ch m a r k a gilo n Adherence to % Members with Annual Cancer Screenings Cholesterol, HTN & CVD/Diabetes Annual Wellness Visits Diabetes Meds Receiving Statin 82% >75% 70% 35% Chron
Slide 71: Communities Benefitting from the agilon Health Model
Communities Benefitting from the agilon Health Model Expanded Primary Care Access for 89% ofseniors PCPs accepting new (vs. 70% nat’l avg) 17% Seniors 30% +6% increase to Primary Care capacity over past year 11% Better Readmission Rates in 2021 vs. Medicare FFS 85% ofcontracted leading plans in mark
Slide 72: Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Slide 73: Financial Outlook
Financial Outlook Tim Bensley New Picture Chief Financial Officer Confidential - Internal Use Only. Do Not Distribute. 73
Slide 74: Key Themes
Key Themes Medical Margins Across Leverageable Partnership High Visibility to Long-Term Member Cohorts and Model Driving Significant EBITDA Outlook, Benefits Markets Are Maturing Returns on Capital from Record New Partner Growth in 2023 Confidential - Internal Use Only. Do Not Distribute. 74
Slide 75: agilon health Economic Model & Key Attributes
agilon health Economic Model & Key Attributes Illustrative Economic Model Long-Term • 20-year partnerships with leading PCP groups Partnerships • Surplus reinvested to expand PCP access • Revenue based on subscription-like PMPMs High • New markets implemented 6–12 months prior Visibility • Growth dr
Slide 76: Significant Momentum & Forward Visibility
Significant Momentum & Forward Visibility Ending Membership Revenue 340K–355K $2,505M– $2,590M CAGR: DCE CAGR: ~64% 238K ~67% $1,833M DCE $1,218M 131K 90K $794M 57K $475M 29K $200M 2017 2018 2019 2020 2021 2022G 2017 2018 2019 2020 2021 2022G Medical Margin Adjusted EBITDA 2020 reflects benefited fr
Slide 77: Details on 2022 Drivers
Details on 2022 Drivers Significant Portion of Membership Approaching $150 in Medical Margin PMPM Medical Margin: % Members Medical Margin: PMPMs 2021 2022G 2022G Dollars 2021 2022G Same Partner $94 $127–$130 ~63% Same Partner Markets $161M $240M–252M Markets New Partners N/A $36–$38 ~22% New Partne
Slide 78: Strong Medical Margin Progression Across Markets
Strong Medical Margin Progression Across Markets Year 5 Market: Year 4 Market: Year 3 Market: Year 2 Market: 2018–22P Medical Margin PMPM1 2019–22P Medical Margin PMPM1 2020–22P Medical Margin PMPM1 2021–22P Medical Margin PMPM1 $216 $192 $211 $213 $186 $170 $155 $171 $133 $156 $150 $125 $69 $40 25K
Slide 79: Strong Medical Margin Progression Across Member Cohorts
Strong Medical Margin Progression Across Member Cohorts Cohort Medical Margin PMPM in Partner Markets1 2018 Member Cohort (1 Market) $251 2019 Member Cohort (3 Markets) 2020 Member Cohort (7 Markets) 2021 Member Cohort (10 Markets) 2020 COVID Impact $193 $168 Members $133 $161 ~24K $152 ~30K $120 $1
Slide 80: Hawaii Update
Hawaii Update Finalizing New Anchor Partnership with Hawaii Health Network to Improving Alignment & Performance Hawaii Medical Hawaii Membership Key Points Margin PMPM1 by Attributed Organization $80 Finalizing anchor partner Hawaii Health relationship with HHN Network $57 18% HHN partnership will s
Slide 81: Direct Contracting
Direct Contracting Opportunity to Significantly Improve Costs with Historically Unmanaged Direct Contracting Population Direct Contracting vs. Medicare Advantage Performance Key Points Direct Contracting Medicare Advantage Mature MA Geography Unmanaged DC population $927 $904 $901 has been on the pl
Slide 82: Significant Momentum & Forward Visibility
Significant Momentum & Forward Visibility Outlook for Medicare Advantage Members and Build to 2026 750K-850K New Geography Same Geography ~390K 260K–270K 186K 2021 2022G 2023P 2026P DC Members 52,000 80,000–85,000 ~110,000 ~110,000 PCPs on Platform 1,400+ 1,600+ 2,200+ 3,800+ Med. Margin (PMPM) $83
Slide 83: Significant Momentum & Forward Visibility
Significant Momentum & Forward Visibility Expanded TAM Will Drive Higher Performance Through 2030 2026 Targets • Expanding both same geography and Membership new geography addressable market • Increased diversity of partner organizations Medical • Larger base of PCPs and members Margin • Access to m
Slide 84: Highly Attractive LTV/CAC
Highly Attractive LTV/CAC Payback Period <1 Year for 2020 and 2021 Member Cohorts Membership Medical Network Capital & Acquisition Costs Margin (PMPY) Contribution (PMPY) Return $1,808 $904 ~41K Members 2020 26K New Geography 15K Same Geography $1,637 $818 Payback: Year 1 Member $1,551 $776 LTV / CA
Slide 85: Balance Sheet Capital Deployment
Balance Sheet Capital Deployment Expect to Generate Positive Cash from Operations in 2023 Balance Sheet & Cash Flow Capital Deployment Priorities ~$1B of net cash as of Dec 31, Increased PCP capacity and adjusted EBITDA positive in 2022 enhance quality of network Platform investments, including Expe
Slide 86: Key Takeaways
Key Takeaways Growing Members And Leverageable, Capital High Visibility to Long-Term Maturing Medical Efficient Model EBITDA Outlook Margins Confidential - Internal Use Only. Do Not Distribute. 86
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Slide 88: Closing Remarks
Closing Remarks Steven Sell Chief Executive Officer Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 88
Slide 89: Key Themes Driving Future Performance
Key Themes Driving Future Performance agilon’s Market Opportunity is Inflecting & Network is Growing Partnership Offers Compelling Advantages to PCPs, Existing Groups & agilon Purpose-Built Platform Enables Higher Value Care at Scale Increasing Confidence in Member & PCP Economics Opportunity for Va
Slide 90: 2022 Investor Day
2022 Investor Day
Slide 91: Appendix
Appendix Confidential - Internal Use Only. Do Not Distribute.
Slide 92: Non-GAAP Reconciliations
Non-GAAP Reconciliations (Dollars in thousands) Year Ended December 31, 2021 2020 2019 2018 Net income (loss) $(406,787) $(60,052) (282,588) (146,926) (Income) loss from discontinued operations, net of income taxes 1,303 (3,156) 168,285 65,338 Interest expense 6,146 8,135 9,068 9,839 Income tax expe