Astrana Health Inc. · NASDAQ:ASTH
Astrana Health — Investor Presentation (March 2025)
35 slides from Astrana Health's investor presentation, Mar 10, 2025
Slide 1: Investor Presentation March 2025
Investor Presentation March 2025
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements include any statements about the Company's
Slide 3: Astrana Accelerates Healthcare Transformation At Scale
3 Care Enablement Full-stack technology and solutions platform, empowering providers to deliver the best possible care to all patients in their communities Care Delivery Flexible footprint of owned primary care and multi-specialty clinics with employed providers who deliver personalized care Astrana
Slide 4: The status quo for healthcare in the United States is broken
4 The status quo for healthcare in the United States is broken SAN MARINO SOUTH SAN GABRIEL 6 0 6 0 6 0 134 10 710 PASADENA SOUTH PASADENA ALHAMBRA Poor provider and patient satisfaction Insufficient & costly access to quality care Limited technology & coordinated care MONTEREY PARK Primary care Spe
Slide 5: Astrana transforms the status quo into accessible, high-quality, coordinated care
5 Astrana transforms the status quo into… Accessible, High-quality, Coordinated Care Partners Payer Delegation Solutions + ~20 Other Payers Affiliate Providers Primary care Ancillary services Multi-specialty Outpatient clinics Primary care Ancillary services Multi-specialty Outpatient clinics Care D
Slide 6: Astrana's risk-bearing model is better for members, providers, and payers
6 Astrana’s risk-bearing model is better for members, providers, and payers Status Quo Payment Model Astrana Health Delegated Financial Model Primary care Multi-specialty Hospital Members stay in the Astrana ecosystem across payers and LOB1 , allowing Astrana to invest in our members’ longitudinal h
Slide 7: Our model enables longitudinal relationships with patients across their lives
7 Our model uniquely enables us to build longitudinal relationships with patients across their lives, regardless of payer or insurance type 1.1 Million Total Value-based Lives Diverse Patient Demographics3 98% Average Annual Provider Retention2 Robust Provider Retention 11.1 Average Provider Tenure
Slide 8: Patient journey example: Leslie's care pathway
8 Astrana care team contacts Leslie to schedule her Annual Wellness Visit Leslie visits an AstranaCare clinic, where her PCP explains the need for a cardiology visit given her most recent lab results Leslie’s PCP submits a prior authorization for an in-network cardiology visit, which is auto-approve
Slide 9: Our model powers strong financial results in all utilization environments
9 Our model powers strong financial results in all utilization environments Clear visibility into continued 25%+ growth over the medium term Note: For more information, see “Reconciliation of Net Income to EBITDA and Adjusted EBITDA”, “Updated Guidance Reconciliation of Net Income to EBITDA and Adju
Slide 10: Execution Playbook
Execution Playbook
Slide 11: The Astrana Playbook
11 The Astrana Playbook 1. As of September 30, 2024, excluding ACO 2. Lines of Business 3. Astrana Health figures based on analysis of Jan-Sep 2024 internal data from all Medicare Advantage members and compared against relevant benchmark 4. Excludes Collaborative Health System (CHS) providers 5. Car
Slide 12: The Astrana Playbook: Adjusted EBITDA path
12 The Astrana Playbook Adjusted EBITDA $54 $1702 2019 … 2024 … 2027E $813 Astrana has developed a differentiated model to drive continued and sustainable growth Prospect pre-close Prospect pro forma Core Astrana Synergies At least $350 Playbook 2 Playbook ($ in millions) Repeatable M&A with synergi
Slide 13: Derisking the path forward
13 Derisking the path forward Risk Derisking Action 364-day Bridge Loan Uncertainty • Replaced 364-day bridge with oversubscribed $300M revolver, $250M TLA, and $745M delayed-draw TLA on favorable terms Prospect Holdings Bankruptcy • Received 2024FY audited financials for Prospect Health, carved out
Slide 14: Path to medium-term adj. EBITDA guidance of at least $350M in 2027
14 Astrana remains confident in path to medium-term adj. EBITDA guidance of at least $350M in 2027 $170.4 $20.5 $8.0 ($7.0) ($12.0) $180.0 $27.0 $20.0 $0.0 $17.5 $105.5 $350.0 2024A Adj. EBITDA Growth in Core California Markets Improvements in New Markets Rate/ Acuity Mismatch G&A Investments 2025F
Slide 15: California growth and market expansion
15 California 1992 2019 2021-2022 2023 Built density in Southern CA San Bernardino 2.2M pop. 1 Riverside 2.5M pop. 1 MCR Improvement: ~(750) bps2 Expanded into Northern CA Bay Area 6.2M pop. 1 MCR Improvement: ~(950) bps3 Expanded into Central CA Central Valley 6.1M pop. 1 Launched in Southern CA Lo
Slide 16: Progress toward profitability in new markets
16 Note: For more information, see “Use of Non-GAAP Financial Measures“ slides for more information Source: U.S. Census Bureau; population data as of each respective year; Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group 1. Collaborative Health Syst
Slide 17: De-risked integration playbook leveraging scalable infrastructure
17 De-risked integration playbook leveraging scalable infrastructure Community Family Care (CFC) overview Astrana has the ability to integrate significant inorganic growth profitably through our scalable clinical and technology infrastructure Growth CFC IPA was an independent physician association (
Slide 18: Pro forma revenue mix and footprint with Prospect
19 Pro forma 2024 revenue mix by payer Pro forma geographic footprint 1 Commercial 11% Medicaid 28% Medicare 61% Our platform allows us to continue integrating highly complementary inorganic growth Note: Assumes the closing of the proposed acquisition of Prospect Health; Prospect financial and opera
Slide 19: Astrana and Prospect have synergistic businesses and assets
20 Astrana and Prospect have synergistic businesses and assets Care Partners Care Delivery Care Enablement Risk-bearing networks (IPA’s, ACO’s, etc.) across all lines of business (Medicaid, Medicare, Commercial) delivering integrated and coordinated care Owned primary and multi-specialty clinics wit
Slide 20: Prudently transitioning to full-risk contracts
21 Prudently transitioning to full-risk contracts to better align incentives around patient outcomes and improve unit economics Projected Full-risk Partial-risk 1. Revenue for the quarter ended December 31, 2024 2. Revenue by risk arrangement represents capitation revenue only 3. Members by risk arr
Slide 21: Purpose-built, intelligent, value-based care platform
22 1. Astrana Health’s Care Team includes MDs, NPs, PAs, RNs, LVNs, etc. 2. SDOH = Social Determinants of Health 3. Trends are customizable by specialty, by region, with trends in prior authorization counts, utilization, costs, among other trends Our purpose-built, intelligent, value-based care plat
Slide 22: Administrative delegation enables better spend visibility, alignment, and quality
23 Astrana’s ability to take administrative delegation enables better spend visibility, alignment, and quality Status quo Primary care Multi-specialty Hospital Claims & Admin. Risk-bearing org (admin. delegation) % of premium Claims and Admin Risk-bearing org (No admin. delegation) Primary care Mult
Slide 23: Care Enablement platform creates operating leverage
24 Group 1, California Our Care Enablement platform creates operating leverage for new clients and Care Partners Operating leverage Source: Astrana Health financials 140% Total revenue Year 0 Year 2 7% Total G&A Year 0 Year 2 Data Infrastructure and Provider Solutions Clinical and Care Coordination
Slide 24: Execution of our strategy drives profitable growth
25 Note: For more information, see “Reconciliation of Net Income to EBITDA and Adjusted EBITDA”, “Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA”, and “Use of Non-GAAP Financial Measures“ slides for more information 1. 2020-2021 Adj. EBITDA benefitted from tailwinds of lower uti
Slide 25: Q4 2024 Financial Results
26 Q4 2024 Financial Results 1. See “Reconciliation of Net Income to EBITDA and Adjusted EBITDA,” “Guidance Reconciliation of Net Income to EBITDA and Adjusted EBITDA” and “Use of Non-GAAP Financial Measures” slides for more information There can be no assurance that actual amounts will not be mater
Slide 26: Building the premier, patient-centered healthcare platform for all
27 Building the premier, patient-centered healthcare platform for all Note: Assumes the closing of the proposed acquisition of Prospect Health; All financial and membership information shown on page are approximations and are rounded. 1. Members in value-based care arrangements 2. Financials shown o
Slide 27: Investor Relations
Investor Relations Asher Dewhurst (626) 943-6491 investors@astranahealth.com
Slide 28: Appendix
29 Appendix
Slide 29: Experienced, mission-driven management team
30 Experienced, mission-driven management team with deep clinical knowledge and a proven ability to execute Brandon K. Sim, MS Chan Basho, MBA Dinesh Kumar, MD Jaime Melkonoff, MBA Jeremy Jackson, MD President & Chief Executive Officer Chief Operating & Financial Officer Chief Medical Officer SVP &
Slide 30: Financial results: three and twelve months ended December 31
31 Three Months Ended December 31, Twelve Months Ended December 30, $ in thousands except per share data 2024 2023 2024 2023 Revenue Capitation, net $ 616,900 $ 309,184 $ 1,856,785 $ $1,215,614 Risk pool settlements and incentives 28,660 14,863 86,224 63,468 Management fee income 5,550 6,390 13,979
Slide 31: Segment results for the three months ended December 31, 2024
32 $ in thousands Care Partners Care Delivery Care Enablement Other Intersegment Elimination Corporate Costs Consolidated Total Total revenues $ 647,678 36,364 45,074 - (63,905) - 665,211 % change vs prior year quarter 98% (5%) 35% 88% Cost of services 583,584 29,512 26,806 - (25,170) - 614,732 Gene
Slide 32: Balance Sheet Highlights
33 $ in millions 12/31/2024 12/31/2023 $ Change Cash and cash equivalents and investments in marketable securities1 $290.8 $296.3 $(5.5) Working capital $246.5 $242.8 $3.7 Total stockholders’ equity $716.7 $616.7 $100.0 1. Excluding restricted cash Balance Sheet Highlights
Slide 33: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
34 Three Months Ended December 31, Twelve Months Ended December 31, $ in thousands 2024 2023 2024 2023 Net Income $ (7,777) $ (94) $ 49,932 $ 57,849 Interest Expense 8,069 5,422 33,097 16,102 Interest income (3,221) (4,591) (14,508) (14,208) Provision for income taxes 5,882 1,018 30,886 31,989 Depre
Slide 34: Annual Reconciliation of Net Income to EBITDA and Adjusted EBITDA
35 For the twelve months ended Year Ended $ in millions 2024 2023 2022 2021 2020 2019 Net Income $ 49.9 $ 57.8 $ 45.7 $ 46.1 $ 122.1 $ 15.8 Interest expense 33.1 16.1 7.9 5.4 9.5 4.7 Interest income (14.5) (14.2) (2.0) (1.6) (2.8) (2.0) Provision for income taxes 30.9 32.0 40.9 31.7 56.3 10.0 Deprec
Slide 35: Guidance Reconciliation of Net Income to EBITDA & Adjusted EBITDA
36 Note: See “Use of Non-GAAP Financial Measures” slide for more information. 2025 Guidance Range (in thousands, $) Low High Net Income 62,500 73,500 Interest expense 16,000 19,000 Provision for income taxes 34,000 40,000 Depreciation and amortization 32,500 32,500 EBITDA 145,000 165,000 Loss (incom