Agilon Health, Inc. · NYSE:AGL
Agilon Health — Wolfe Healthcare Conference 2023
10 slides from Agilon Health's conference presentation, Nov 14, 2023
Slide 1: Wolfe Healthcare Conference November 2023
Wolfe Healthcare Conference November 2023 Copyright © 2023 agilon health. Confidential internal document containing proprietary information. Do not distribute.
Slide 2: Disclaimers and Forward-Looking Statements
2 Disclaimers and Forward-Looking Statements FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION Statements in this presentation that are not historical factual statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of th
Slide 3: Empowering Doctors and Transforming Senior Care
3 Empowering Doctors and Transforming Senior Care Partner Groups • Improving patient experiences and outcomes • Our model is resonating with PCPs, patients, and payors Patients 1 4 8 11 18 25 31 2018 2019 2020 2021 2022 2023 2024 Note: Primary Care Doctors and Patients exclude Hawaii ~77% CAGR Prima
Slide 4: Our Financial Model and Longer-Term Commitments
4 Our Financial Model and Longer-Term Commitments Adjusted EBITDA Drivers and Performance Reiterating 2026 Adjusted EBITDA Target Notes: Adjusted EBITDA target for 2026 included $17M contribution from MDX Hawaii and $30M contribution from ACO REACH. Membership – meaningfully ahead Medical Margins –
Slide 5: How Medical Margin Differed From Expectations in 2023
5 How Medical Margin Differed From Expectations in 2023 $535M-560M $455M-470M $477M-492M Note: The average membership in the Original Guidance excl. Hawaii was 360K compared to the Current Guidance mid-point of 377K. * * *
Slide 6: Claims Trend Assumptions for Remainder of Year
6 • Full year cost trend guidance is $90M higher than our initial expectation • May/June/July costs were $30M higher than expected but moderating • Guidance now assumes $50M of higher costs, $10M/month for Aug-Dec • PY development represented an additional $10M in costs during 3Q Note: May/June/July
Slide 7: Levers To Improve Performance in 2024 and Beyond
7 Levers To Improve Performance in 2024 and Beyond • Expanding programs to control medical costs • High-risk/Complex Patients: Expanding foundational clinical programs to 100% of markets by year-end 2024 (e.g., renal, palliative, high-risk management): +$30 PMPM opportunity ▪ 1,000 Senior patients e
Slide 8: We Are Ahead on Membership Growth & ACO Reach
8 25K 57K 94K 2018 2019 2020 2021 2022 2023G 2024P We Are Ahead on Membership Growth & ACO Reach Medicare Advantage (MA) ACO REACH / Direct Contracting 473K 320K 200K Membership Growth ~650K ACO REACH Performance • 2023 Adjusted EBITDA contribution of $39M is ahead of initial guidance and 2026 targe
Slide 9: Divested Hawaii Due to Lack of Strategic and Financial Fit
9 • Closed on October 31. Proceeds are immaterial. agilon does not retain any liabilities. • Hawaii was agilon’s only non-partner market. The market ran lower Medical Margin, higher local opex, and represented drag to Adjusted EBITDA. • agilon is focused on markets with scaled, long-term JV partner
Slide 10: Adjusted EBITDA Drivers for 2024
10 Adjusted EBITDA Drivers for 2024 • Medical margin growth in 2023 is modestly lower than initial guidance ▪ Medical margin for Year 2+ market classes still up 23% for the full year 2023 ▪ These ~255K MA members expected to increase Medical Margin further in 2024 ▪ Same geography membership expecte