Privia Health Group, Inc. · NASDAQ:PRVA
Privia Health — Piper Sandler Value-Based Care Webinar (December 2021)
35 slides from Privia Health's conference presentation, Dec 21, 2021
Slide 1: Empowering Physicians, Transforming Healthcare
Exhibit 99.1 Empowering Physicians TRANSFORMING HEALTHCARE Piper Sandler Value-Based Care Webinar December 21, 2021 PROPRIETARY AND CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements that express the Company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. These forward-looking statements involve a number of risks,
Slide 3: What is Privia Health?
What is Privia Health? Privia Health is building the leading next generation physician organization and care delivery network Our revolutionary business model is comprised of three interdependent elements: ü Single TIN Medical Group ü Risk-Bearing Entity ü Tech-Enabled Clinical and Performance Opera
Slide 4: Privia Health's Value-Based Care Structure
Privia Health’s Value-Based Care Structure Value Based Contracts Commercial, MSSP, MA, CMS Payor 1 Payor 2 Medicaid (PMPM / Shared Savings) Technology Solution Privia ACO / Risk Bearing Entity Privia Payor Contracting / Healthcare Economics Privia Medical Platform Physician Governance Group Clinical
Slide 5: Ability to Influence Outcomes Without Ownership of Underlying Practice
Ability to Influence Outcomes Without Ownership of Underlying Practice ü Single medical group by market ü Single contracting entity & common risk pools ü Physician-led governance ü Integrated technology and clinical operations ü Financial alignment with physicians (no risk backstop) ü Preserves phys
Slide 6: High-Performing Value-Based Platform Across Reimbursement Models
High-Performing Value-Based Platform Across Reimbursement Models 1 760K 70+ Total At Risk Attributed Payer Lives Contracts 286K 474K Government Commercial Lives Lives 141K 103K 42K MSSP & Medicare Medicaid MDPCP Lives Advantage Lives Lives 1 6 6 Attributed lives as of 9-30-2021
Slide 7: Overview of Value-Based Care Arrangements
Overview of Value-Based Care Arrangements Commercial and Medicaid Medicare Advantage MSSP • Employer Sponsored • Retail Medicare Advantage HMO • Traditional Medicare FFS / Med & PPO Supplement • Individual Exchange • Group Medicare • Pathways to Risk Overview • Medicaid • Direct Contracting & Geogra
Slide 8: Underwrite-Pair Economic Risk with VBC Program Maturity
Underwrite-Pair Economic Risk with VBC Program Maturity Established 100% / 100% Maturing • Protect balance sheet during program initiation 50% / 50% • Understand population and leverage data / analytics New • Launch and mature physician governance and performance 35% / 0% • Move up the risk / reward
Slide 9: Illustrative Economics of VBC Arrangements
Illustrative Economics Of VBC Arrangements All data are presented for illustrative purposes only and do not reflect actual economics in any payor contract or any historical or projected financial results of Privia Health. Calculations reflect typical industry economics in value-based care programs b
Slide 10: Illustrative Economics of VBC Arrangements
Illustrative Economics Of VBC Arrangements All data are presented for illustrative purposes only and do not reflect actual economics in any payor contract or any historical or projected financial results of Privia Health. Calculations reflect typical industry economics in value-based care programs b
Slide 11: Managing $1.1 Billion in Medical Spend in MSSP
Managing $1.1 Billion in Medical Spend in MSSP Only Privia’s Share of Savings is Recognized in Revenue Today All Privia 2020 MSSP Results MSSP ACOs 2020 MSSP Lives 121,292 Per Capita Benchmark $9,359 (PMPY) Illustrative practice collections / GAAP Benchmark Spend ($mm) $1,135 revenue under conversio
Slide 12: Appendix
APPENDIX 12 12 12 12
Slide 13: Privia Health: Investment Highlights
Privia Health: Investment Highlights Multiple Drivers for Comprehensive Proven and Scalable for All Future Growth with Technology Solution Built Provider Types, Patients & a Large TAM for Providers Reimbursement Models Aligned with Provider Highly Experienced Financial Success while Profitable, Exec
Slide 14: Moving Markets Toward Value-Based Care At Scale
Moving Markets Toward Value-Based Care At Scale Enter Organize Drive Transition to Market Providers Improvements Value & Risk ¾ Align with anchor ¾ Form high ¾ Advance practice ¾ Succeed in various medical groups and performance management, value-based care health systems to medical groups patient e
Slide 15: Physician Enablement Landscape
Physician Enablement Landscape Single TIN / Clinic Models Employment / Buyout IPA / ACOs / CINs Independents Integrated MSO / ACO Standalone IPAs Urgent Care / ACOs / CINs Health Systems Commercial & Independent PCPs, (Care Partners) Government Multi-specialty and Single-specialty Groups PE Firms He
Slide 16: Building a National Footprint
Building a National Footprint 1 Privia Timeline Current Market Presence 3,250+ 95% 3M+ 760K $1.3B+ Implemented Avg. Provider Patients Attributed Practice Launched Providers Retention Lives Collections Tennessee Launched Launched Women’s Market & Georgia & South Privia Pediatrics Launched Health Firs
Slide 17: Extensive Clinical Operations Team Supports Every Provider Partner
Extensive Clinical Operations Team Supports Every Provider Partner To Succeed in Value-Based Programs Medical Director Population Performance Health Consultant Associate Primary Care Provider Clinical/Quality and Team Documentation Care Team Manager 24/7 Nurse 24/7 Privia Triage Line Virtual Clinic
Slide 18: Deep Clinical Operations Capabilities Drive VBC Success
Deep Clinical Operations Capabilities Drive VBC Success The Privia Platform provides a broad suite of clinical operations capabilities that have driven success across risk arrangements Foundational Elements for Success 1 2 3 4 5 Practice Enhanced Fundamentals Comprehensive Advanced Fundamentals Expe
Slide 19: MSSP Results Demonstrate Success in Downside Risk
MSSP Results Demonstrate Success in Downside Risk 1 vs. Median vs. Total MSSP 2020 Performance MSSP ACO FFS Medicare Total annual average 15% 24% expenditures • 121,000+ Medicare beneficiaries across ACOs in 4 markets Emergency room 22% 30% utilization • 97% or greater quality score in all ACOs Hosp
Slide 20: Privia Care Partners
Privia Care Partners Launching 1/1/2022 with 25,000+ attributed lives in partnership with 300+ providers (Medical Group) (Care Partners) • Broadens total addressable market and (FFS & VBC) (VBC Only) accelerates growth Health Systems/ Employed ü ü • Exclusively focused across value-based Providers p
Slide 21: Proprietary, End-to-End Tech Solution for Providers
Proprietary, End-to-End Tech Solution Enables Providers to Practice More Efficiently and Focus on Patient Care Proprietary end-to-end, cloud-based technology solution enabling scalable operations across providers and multiple markets Enhances workflows in both fee-for-service and value-based care se
Slide 22: The Privia Technology Solution Creates an Integrated Experience
The Privia Technology Solution Creates an Integrated Experience for Providers and Patients Old Way The Privia Way Confusion and disorganization as a result of an onslaught of information from Privia manages complexity to create a unified workflow and disparate sources experience for providers, staff
Slide 23: Delivering Demonstrable Value to Our Providers
Delivering Demonstrable Value to Our Providers Net Realization Enhanced Expense Savings Organic Practice Rate Provider Value-Based on Growth through Incremental Improvement Productivity Care Revenue: Fee-for-Service EMR / PMS & Provider / Revenue Through Robust & Same- Commercial, Rate Lift Group Sp
Slide 24: Positioned to Monetize Our Platform and Drive Growth
Positioned to Monetize Our Platform and Drive Growth Acquisitions and Investments in Full Service Care Models New Market — Minority or majority Development ownership of provider White Space groups Opportunities in — Expand business model Existing Markets — De-novo, wholly or partially nationally in
Slide 25: Privia Health: Economic Model
1 Privia Health: Economic Model 1 Practice Collections: FFS collections and 1 VBC payments (care management PMPMs and shared savings) across all markets and all payer contracts Physician and Practice Expense: 2 2 a. Medical costs b. Physician and provider payments c. Provider share of surplus in VBC
Slide 26: 3Q'21 Performance
3Q’21 Performance 1 Implemented Providers (as of end of period) Attributed Lives (‘000s, as of end of period) Practice Collections ($mm) 760 2,826 $401.5 646 2,454 474 $339.9 403 Commercial 286 243 Government 3Q'20 3Q'21 3Q'20 3Q'21 3Q'20 3Q'21 Adjusted EBITDA ($mm) Care Margin ($mm) Platform Contri
Slide 27: YTD'21 Financial Performance
YTD’21 Financial Performance Practice Collections ($mm) Care Margin ($mm) $1,112.8 $169.8 $949.0 $136.3 YTD'20 YTD'21 YTD'20 YTD'21 Adjusted EBITDA ($mm) Platform Contribution ($mm) $79.8 $33.9 $59.2 $23.2 YTD'20 YTD'21 YTD'20 YTD'21 % Practice Collections 6.2% 7.2% % Practice Collections 2.4% 3.0%
Slide 28: The Privia Platform is Scaling Rapidly
The Privia Platform is Scaling Rapidly * Q3 2021 implemented provider count pro forma for entry into California and West Texas markets as disclosed on Form 424B4 filed with the SEC on November 22, 2021. 28 28
Slide 29: Improving Margins Over Time
Improving Margins Over Time % Practice Collections 6% 6% 6% % Practice Collections 1% 2% 2% % Care Margin 7% 11% 16% % Care Margin 44% 42% 44% 29 29
Slide 30: Significant Whitespace Exists Across Our End Markets
Significant Whitespace Exists Across Our End Markets The Privia Solution Addresses a Large Market Ripe for Disruption With Significant Opportunity for Further Growth ~$1.9 trillion estimated physician enablement market opportunity expected to grow at a 6.4% CAGR over the next ten years ü Privia succ
Slide 31: Case Study: Driving Performance for Physician Group "A"
Case Study: Driving Performance for 1 Physician Group “A” Partnership 31 31 1 From 2014 to 2020.
Slide 32: Reconciliation of Operating (Loss) Income to Care Margin
1 Reconciliation of Operating (Loss) Income to Care Margin (1) Care Margin is total revenue less the sum of physician and practice expense. 32 32
Slide 33: Reconciliation of Operating (Loss) Income to Platform Contribution
2 Reconciliation of Operating (Loss) Income to Platform Contribution (2) Platform Contribution is total revenue less the sum of physician and practice expense and cost of platform. (5) Amount represents stock-based compensation expense included under Cost of Platform.. 33 33
Slide 34: Reconciliation of Net (Loss) Income to Adjusted EBITDA
3 Reconciliation of Net (Loss) Income to Adjusted EBITDA (3) Adjusted EBITDA is net income (loss) attributable to Privia Health Group, Inc. shareholders and subsidiaries excluding minority interests, provision (benefit) for income taxes, interest income, interest expense, depreciation and amortizati
Slide 35: Thank You
Thank You PriviaHealth.com Contact: Robert P. Borchert SVP, Investor & Corporate Communications robert.borchert@priviahealth.com 35 35 Phone: 817.783.4841
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