P3 Health Partners Inc. · NASDAQ:PIII
P3 Health Partners — Cowen Healthcare Conference 2022
22 slides from P3 Health Partners's conference presentation, Mar 9, 2022
Slide 1: Cowen Healthcare Conference March 2022
Who: People with Passion and Purpose What: Dedicated to Transforming Healthcare for Patients, Providers, and Payors How: Patient-Centric, Physician-Led, and Population Health Management Focused Cowen Healthcare Conference March 2022
Slide 2: Forward Looking Statement and Non-GAAP Financial Information
1 Forward Looking Statement and Non-GAAP Financial Information FORWARD-LOOKING STATEMENTS Any investment in or purchase of any securities of P3 Health Group Inc. (the “Company” or “P3”) is speculative and involves a high degree of risk and uncertainty. This presentation includes “forward-looking sta
Slide 3: P3 At A Glance
P3 At A Glance We Take Global Risk In A Rapidly Growing ~$300bn Medicare Advantage Market And Benefit From the Value We Create Through Improved Clinical Outcomes We Are A Market Leader With A Strong Track Record Of High Growth We Are… A physician founded and led organization that works collaborative
Slide 4: P3 Investment Highlights
3 P3 Investment Highlights Experienced Management Team Capital Efficient & Scalable Model Proven Outcomes Multiple Avenues of Organic Growth Large, Growing TAM With Significant Whitespace
Slide 5: P3: 20 Years In The Making
4 Revenue of $642M P3 expands into 6 new markets for a total of 11 P3 achieves 7 full risk payor contracts P3’s first full year of revenue Revenue of $88mm HealthCare Partners Merges with DaVita ~125K MA global risk lives ~21.8%1 EBITDA margin Scaling the business ~100K MA global risk lives Pinnacle
Slide 6: P3 Addresses Largest Challenges In U.S. Healthcare Today
5 P3 Addresses Largest Challenges In U.S. Healthcare Today Uncontrolled high costs Poor access to primary care 25% Americans do not have access to essential primary care2 Sub-optimal quality of care and sub- optimal clinical outcomes 40% of Americans have 2+ chronic conditions; Comparable developed
Slide 7: The P3 Model Is A "Win" Scenario For All Key Stakeholders
6 The P3 Model Is A “Win” Scenario For All Key Stakeholders Improved primary care access to physicians focused on wellness and prevention Individualized, longitudinal care plans, catered to the needs of individual patient Improved clinical outcomes and patient satisfaction at no additional cost Impr
Slide 8: Three Distinct Growth Models In Value-Based Physician Enabler Space
7 Three Distinct Growth Models In Value-Based Physician Enabler Space Builds clinics, hires providers, and recruit patients in value-based care model Build Value-Based Care Physician Enablers Partners with payors, providers or health systems to enable a value-based care model Affiliate Acquires clin
Slide 9: Given ~2% Of MA Lives In Value Based Care, True Competition Is Fee-for-Service
8 Given ~2% Of MA Lives In Value Based Care, True Competition Is Fee-for-Service 1 P3 MA lives projected as of FYE 2021, agilon MA lives as of S-1 filed on 3/18/21, Oak Street MA lives represent midpoint of FYE 2021 management guidance as of 3/31/21, Cano Health MA lives as of Investor & Analyst Day
Slide 10: Proven Outcomes And Physician-Led
9 Proven Outcomes And Physician-Led We are able to drive enhanced outcomes via our patient- centric, physician-led care model: 35% / 36% Reduction in hospital admissions4 / ED visits5 1 Represents affiliate provider retention through Q1 2021A; 2 Represents patient satisfaction for Nevada Medical Gro
Slide 11: Innovative, Patient-Centered And Physician-Led Care Delivery Model
10 Innovative, Patient-Centered And Physician-Led Care Delivery Model Physician Engagement Clinical Ownership Population Engagement Access Adoption of Best Clinical Practices Data Reporting Health Promotion and Disease Prevention Risk Stratification Understanding Population’s Disease Burden Care Int
Slide 12: P3 Model Enables Capital Efficient Growth and Maintains Patient-Provider Relationship
11 P3 Model Enables Capital Efficient Growth and Maintains Patient-Provider Relationship Market Entry Decisions Are Informed By Provider And Payor Data, Thereby Avoiding Large Upfront Costs Providers Payors Market analysis based on network, market and senior population dynamics Network team identifi
Slide 13: We Have A Strong History Of High Organic Growth
12 We Have A Strong History Of High Organic Growth 10K 20K 50K 67K 2018A 2019A 2020A 2021A Historical Growth CAGR: 89% Recent Growth Note: Patient numbers are approximate P3 recently closed an acquisition of Restricted-Knox-Keane license to enable entry into California market (~3M MA lives) Direct e
Slide 14: Clear And Visible Path For Membership Growth
13 Clear And Visible Path For Membership Growth Target Long-Term 35% Annual Patient Growth Rate Through a Mix of Payor and Provider Opportunities Multiple Levers of Growth P3’s Growth strategy is based on strong existing market growth and a near-term new market entry plan1 Existing Contracts Annual
Slide 15: Expected Long-Term KPI Targets
14 Expected Long-Term KPI Targets 3 – 5 Counties per year 35% Annual membership growth 20%+ Expected Long-term EBITDA margin Leverage existing payor / provider relationships to extend into adjacent markets Establish new payor / provider relationships to enter new markets Strategically build / acquir
Slide 16: P3 Investment Highlights
15 P3 Investment Highlights Experienced Management Team Led by one of the most experienced leadership teams in industry; 20+ years of experience in value-based care and medical cost management Capital Efficient & Scalable Model Partner with existing physician base (affiliate model) versus building n
Slide 17: Select Preliminary Unaudited Fourth Quarter and Full Year 2021 Results
16 Select Preliminary Unaudited Fourth Quarter and Full Year 2021 Results Full Year 2021 67,000 at-risk Medicare Advantage members at December 31, 2021, an increase of 32% compared to 51,000 in the prior year $642M revenue, an increase of 32% compared to $486 million in the prior year $88M to $83M a
Slide 18: Full Year 2022 Outlook
17 Full Year 2022 Outlook Revenue $950M to $1.0B revenue Increase of 48% to 56% vs. prior year driven by expanded membership Adjusted EBITDA* $50M to $80M adjusted EBITDA* loss $75 to $45 adjusted EBITDA loss per member per month (PMPM), compared to $120 to $115 PMPM in the prior year At-Risk MA Mem
Slide 19: P3 Health Partners – Thank You
P3 Health Partners – Thank You
Slide 20: Appendix – Unaudited Preliminary Net Loss to EBITDA reconciliation
19 Appendix – Unaudited Preliminary Net Loss to EBITDA reconciliation In millions $ For the three months ended For the three months ended December 31, 2021 December 31, 2020 Lower range Upper range Net income (loss) $(94.6) $(89.6) $(14.2) Interest (income) expense, net 4.2 4.2 3.1 Income tax expens
Slide 21: Appendix – Unaudited Preliminary Net Loss to EBITDA reconciliation
20 Appendix – Unaudited Preliminary Net Loss to EBITDA reconciliation In millions $ For the year ended For the year ended December 31, 2021 December 31, 2020 Lower range Upper range Net income (loss) $(180.9) $(175.9) $(45.4) Interest (income) expense, net 17.4 17.4 10.0 Income tax expense (1) -- --
Slide 22: Appendix – Unaudited Preliminary Net Loss to EBITDA reconciliation (PMPM)
21 Appendix – Unaudited Preliminary Net Loss to EBITDA reconciliation In PMPM $ For the year ended December 31, 2021 Lower range Upper range Net income (loss) PMPM $(248) $(242) Interest (income) expense, net 24 24 Income tax expense (1) -- -- Depreciation expense 2 2 Amortization expense 10 10 Mark
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