Agilon Health, Inc. · NYSE:AGL
Agilon Health — Investor Day (2022)
17 slides from Agilon Health's investor day presentation, 2022
Slide 1: Market Strategy
Market Strategy Ben Shaker Chief Markets Officer Copyright © 2022 agilon health. Confidential internal document containing proprietary information. Do not distribute. 38
Slide 2: 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. 39
Slide 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: >$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. 53
Slide 17: 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. 54