P3 Health Partners Inc. · NASDAQ:PIII
P3 Health Partners — Foresight Acquisition — SPAC Merger (November 2021)
62 slides from P3 Health Partners's SPAC merger presentation, Nov 12, 2021
Slide 1: Investor Day Presentation November 2021
Investor Day Presentation November 2021 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
Slide 2: Disclaimer: Basis of Presentation
Disclaimer BASIS OF PRESENTATION This presentation is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination (the “proposed business combination”) between P3 Health Partners (“P3”) an
Slide 3: Disclaimer: Use of Projections
Disclaimer USE OF PROJECTIONS AND DESCRIPTION OF KEY CONTRACTS AND PARTNERSHIPS This presentation contains projected financial information with respect to P3, namely revenue and EBITDA for 2021. Such projected financial information constitutes forward-looking information, and is for illustrative pur
Slide 4: Disclaimer: Participants in the Solicitation
Disclaimer PARTICIPANTS IN THE SOLICITATION Foresight, P3 and certain of their respective directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitations of proxies from Foresight’s stockholders in connection with th
Slide 5: Foresight Acquisition Corp. Adds Significant Value to P3 Health Partners
Foresight Acquisition Corp. Adds Significant Value to P3 Health Partners – Currently serves as President and Founder of his family office, – Former Partner and Co-Manager of the William Blair Wasson Enterprise Small Institutional portfolio and Small Cap Growth – Former CEO and President of Walgreens
Slide 6: Today's Presenters
Today’s Presenters Who: People with Passion and Purpose What: Dedicated to Transforming Sherif Abdou, MD, MMM, Amir Bacchus, MD, MBA FACP, FACPE Chief Medical Officer Healthcare for Patients, Providers, Chief Executive Officer and Payors How: Patient-Centric, Physician-Led, and Population Health Man
Slide 7: 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 20+ 15 ~68K Create Through Improved Clinical Outcomes Years of value-based Operates in 15 markets Full-risk lives managed care experience across 4 states4 by 2021E We Are A Market
Slide 8: P3 Vision & Mission
P3 Vision & Mission Vision To build the greatest population health management company. Mission To be the best health partner for… Patients, Providers & Payors. 7
Slide 9: P3 Core Values
P3 Core Values People. Our attitude is respecting and valuing everyone. Our community is strong and safe. Passion. Our heart is our patients. Our soul is our clinicians. Purpose. Our core is fixing healthcare. Our mindset is disciplined purposeful growth. 8
Slide 10: P3 Investment Highlights
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential P3 Investment Highlights Large, Growing TAM With Significant Whitespace Deeply Experienced Management Team Capital Efficient & Scalable Model Proven Outcomes Multiple Avenues of Organic Growth 9
Slide 11: Overview
Overview Health Partners people. Passion purpose
Slide 12: P3 Addresses Some of the Largest Challenges in U.S. Healthcare Today
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential P3 Addresses Some of the Largest Challenges in U.S. Healthcare Today Uncontrolled high costs Poor access to primary care $3.8T 5.4% 25% Transition To US spending on Project healthcare Americans do not have access to Fee For Value-
Slide 13: Given ~2% of MA Lives in VBC, True Competition is FFS
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential Given ~2% of MA Lives in VBC, True Competition is FFS Payment Model Value-Based Care Physician Enablers1 % of Total Medicare Advantage Enrollment2 ~68k ~210k ~109k ~85k ~2% ~26k of ~24mm MA enrollees ~31k 1 P3 MA lives projected a
Slide 14: P3 Has a Substantial Market Opportunity
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential P3 Has a Substantial Market Opportunity Annual U.S. Healthcare Spend ~$3.8T1 Medicare Spend Total Addressable Market Opportunity ~$800bn2 lncludes Medicare eligibles who utilize either Traditional Medicare and / or Medicare Eligib
Slide 15: Proven Board With Extensive Healthcare Expertise
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential Proven Board With Extensive Healthcare Expertise Mark Thierer Sherif Abdou, MD Amir Bacchus, MD Greg Wasson Chairman of the Board Chief Executive Officer & Director Chief Medical Officer & Director Director • CEO, OptumRx • Co-Fou
Slide 16: Three Distinct Growth Models in Value-Based Physician Enabler Space
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential Three Distinct Growth Models in Value-Based Physician Enabler Space Builds clinics, hires providers, ~$3,000 / MA and recruit patients in patient1 value-based care model Build Acquires clinics and ~$10,000 / MA converts to value-b
Slide 17: P3 Health Partners Compares Favorably Across Key Metrics
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential P3 Health Partners Compares Favorably Across Key Metrics Capital Light Capital Intensive Enterprise Value $2.3bn1 $9.7bn1 $6.5bn1 $814mm1 $12.2bn1 Year Founded 20182 19833 2009 2011 2012 Buy – Acquisition Buy – Acquisition Build –
Slide 18: P3 Model Has Demonstrated Proven Outcomes
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential P3 Model Has Demonstrated Proven Outcomes Medical Cost Reduction1 of ~20% ➢ Results reflect first P3 payor contract in Arizona (“Payor A”), driven by a combination of: ➢ Aligned PCP incentives $652 First Three Years $539 ➢ D
Slide 19: P3's Track Record Of Organic Growth
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential P3’s Track Record Of Organic Growth Total Full Risk Lives Total Revenue CAGR: 71% 86K CAGR: 75% $825M 68K $633M 50K $483M 20K $145M 10K $88M 2018A 2019A 2020A 2021E 2022E 2018A 2019A 2020A 2021E 2022E Note: Patient numbers are app
Slide 20: Near Term Growth: P3 Market Entry Into California
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential Near Term Growth: Confirmed P3 Market Entry Into California Equity purchase includes Restricted Knox Keene License, which enables access to ~3M MA lives in CA P3 recently closed an acquisition for an IPA in Enables market entry in
Slide 21: P3 Overview
P3 Overview
Slide 22: Proven Outcomes, Compelling Economics And Physician-Led
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Proven Outcomes, Compelling Economics And Physician-Led We are able to drive enhanced outcomes via our patient-centric, 35% / 36% physician-led ~135% 99% 97% Reduction in Annual Physician Patient hospital care model: 1 2 revenue 4
Slide 23: P3: Years In The Making
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview P3: 20 Years In The Making First full-risk contract P3’s first full year Founding members of P3 P3 expands into 6 Scaling the business of revenue take on their first full-risk new markets for a ~100K MA global risk lives Revenue o
Slide 24: Physician-Led, Deeply Experienced Management Team
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Physician-Led, Deeply Experienced Management Team With 20 Years+ In Value-Based Care Sherif Abdou, MD, Amir Bacchus, MD, MBA Lorie Glisson Todd Lefkowitz, MHA MMM, FACP, FACPE Chief Executive Officer Chief Medical Officer Chief Op
Slide 25: P3's Affiliate Model Engages All Key Stakeholders
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview P3’s Affiliate Model Engages All Key Stakeholders ➢ P3 partners with vs. displaces local providers ➢ P3 partners directly with payors ➢ P3 contracts and develops a full network of ➢ P3 has ability to take on delegated prim
Slide 26: The P3 Model Is Effective And A Win Scenario For All Key Stakeholders
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview 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
Slide 27: How We Bend The Cost Curve
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview How We Bend The Cost Curve ➢ Identify high-risk, rising risk and high-cost patients and share 1 Risk Stratification with their physicians to help prioritize care ➢ Engage physician partners with activity lists and guidelines P
Slide 28: P3 Care Teams Engage Patients Immediately
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview P3 Care Teams Engage Patients Immediately to Focus on Wellness and Prevention A New Patient Onboarding B P3 Care Team Engages Ms. Smith P3 Care Team stratifies new members based on known disease burden, P3 Care Team reaches out to
Slide 29: Delegation of Services Creates Value
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Delegation of Services Creates Value Key delegation services… Network management and credentialling Network management and credentialling Utilization management ~$99 ~$41 PMPM PMPM Care management ➢ Aetna’s oncology costs, in Ne
Slide 30: Delegated Utilization and Care Management Reduce Medical Costs and ED Use
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Delegated Utilization and Care Management Reduce Medical Costs and ED Use Utilization Management Care Management ~36%2 ~35%3 ~30%1 reduction in reduction in hospital to ASC savings ED visits hospital admissions ➢ P3 Care Team wo
Slide 31: Our Technology Suite Enables The Delivery Of High-Quality Care At Scale
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Our Technology Suite Enables The Delivery Of High-Quality Care At Scale Provider Portal Analytic Management P3 Care Connect P3 N-Gage ➢ Seeks to improve provider ➢ Seeks to leverage data to ➢ Seeks to improve efficiency ➢
Slide 32: Our Fly Wheel Drives The Repeatability Of Our Care Model
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Our Fly Wheel Drives The Repeatability Of Our Care Model And Its Outcomes 35% 97% Reduction in hospital admissions4 Patient satisfaction1 Higher patient satisfaction High quality of care meaningfully reduces the Greater care conti
Slide 33: Proven Outcomes
Proven Outcomes Partners
Slide 34: P3 Model Drove ~20% Reduction of Medical Cost in First Three Years
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview P3 Model Drove ~20% Reduction of Medical Cost in First Three Years Medical Cost Reduction1 of $113 PMPM ➢ Results reflect first P3 payor contract in Arizona (“Payor A”) ➢ Aligned physician incentives increased patient access,
Slide 35: P3 Built A Proprietary Network of Physicians, Specialists and Health Systems
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview P3 Built A Proprietary Network of Physicians, Specialists and Health Systems Payor 1 ➢ Initially relied on pre-existing Payor 1 Payor 2 (Payor 1) contracts for physician and health system partners Payor 3 Payor 4 Payor 1 Network
Slide 36: Aligned Primary Care Physician Incentives Deliver Optimal Patient Care
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Aligned Primary Care Physician Incentives Deliver Optimal Patient Care Base Compensation Value-Based Incentive Program Surplus Sharing Program ➢ No changes made to base ➢ PCPs immediately qualify for ➢ PCPs share in cumulate
Slide 37: P3 Reshaped Local Network to Drive Medical Cost Reductions
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview P3 Reshaped Local Network to Drive Medical Cost Reductions ➢ P3 reduced the number of home health providers in Specialty Cost Reductions ($, PMPM) network and negotiated capitated contract by January 1st, 2019 ($15 PMPM savings)
Slide 38: Proprietary Network Enables Membership Growth
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Proprietary Network Enables Membership Growth P3 Arizona MA Lives (K) ➢ Our provider network often serves a patient panel beyond our existing payor relationships ➢ An established network provides a common ground for conversati
Slide 39: Improved Clinical Outcomes and Reduced Medical Cost with Scalable Model
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Improved Clinical Outcomes and Reduced Medical Cost with Scalable Model “ “ “ “ “ “ 35% ~20% 135% 2,000 reduction in hospital reduction in medical Revenue growth3 2021E PCPs4 admissions1 costs2 1 Based on P3’s hospital admission r
Slide 40: Growth Strategy
2 Growth Strategy Health
Slide 41: P3 Model Enables Capital Efficient Growth and Maintains Patient-Provider Relationship
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview P3 Model Enables Capital Efficient Growth and Maintains Patient-Provider Relationship We Enter Markets Through Partnerships With Payors And Providers Health plans seek P3 to optimize entire blocks of existing business Establishes
Slide 42: Examples Of Growth: Centene Case Study
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Examples Of Growth: Centene Case Study Membership Growth Across States Proven, Agile Model Allows for Rapid Scale OR Douglas County ~15k NV ~10k CA Clark County AZ Yuma County Pima County Cochise County Santa Cruz County ~1k 2019
Slide 43: Examples Of Organic Growth: Arizona Connected Care Case Study
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Examples Of Organic Growth: Arizona Connected Care Case Study Membership Growth Across Mature State Proven, Agile Model Allows for Rapid Scale Entered into provider partnership with Arizona Connected Care in 2018 that provided cor
Slide 44: Capital Efficient, Affiliate Model Delivers Significant Value
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Capital Efficient, Affiliate Model Delivers Significant Value P3 Model Gives Strong Return on Investment Medical Cost Reduction2 of ~20% ~$5-8M1 investment to enter new market ~$300M1 revenue in Year 4 Arizona 1 Management estimat
Slide 45: P3 Has a Scalable and Repeatable Playbook for Market Entry
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview P3 Has a Scalable and Repeatable Playbook for Market Entry 2018 2019 2020 Identify and retain local leadership teams Build propriety network including primary care physicians, specialists, and health systems Recruit and train loca
Slide 46: Strong Markets, Diverse Relationships And Growth Trajectory
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Strong Markets, Diverse Relationships And Growth Trajectory Select National and Local Payor Relationships Current states Expansion states Current counties 45
Slide 47: Financial Overview
Financial Overview
Slide 48: Clear And Visible Path For Membership Growth
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview 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 8-10% 3-5% 3-5% 3-5% 3-5% 3-5% 5-10% Opportunity Opportunity
Slide 49: P3's Track Record Of Organic Growth
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview P3’s Track Record Of Organic Growth Total Full Risk Lives Total Revenue CAGR: 71% 86K CAGR: 75% $825M 68K $633M 50K $483M 20K $145M 10K $88M 2018A 2019A 2020A 2021E 2022E 2018A 2019A 2020A 2021E 2022E Note: Patient numbers are app
Slide 50: We Have A Strong History Of High Organic Growth
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview We Have A Strong History Of High Organic Growth And A Line-of-Sight To Continued Success Via Our Capital-Efficient Affiliate Model ’18A-’22E P3 continues to (FYE 12/31) 2018A 2019A 2020A 2021E 2022E CAGR successfully leverage Tota
Slide 51: Continued Momentum in 1H21 Despite COVID Headwind
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Continued Momentum in 1H21 Despite COVID Headwind Revenue EBITDA1 PMPM EBITDA%1 $(43) $(49) -5.3% -5.5% $(39) -3.6% Estimated Impact of COVID2 2 Estimated Impact of COVID 1H-20A 1H-21A 1H-20A 1H-21A Note: 1Adjusted EBITDA is defin
Slide 52: Long-Term KPI Targets
P3 Health Partners Proven Outcomes Growth Strategy Financial Overview Long-Term KPI Targets 3 – 5 ➢ Leverage existing payor / provider relationships to extend into adjacent markets Counties per year ➢ Establish new payor / provider relationships to enter new markets 35% ➢ Strategically build /
Slide 53: P3 Investment Highlights
Strong TAM Experienced Team P3 Model Proven Outcomes Growth Potential P3 Investment Highlights Large, Growing TAM ➢ $300b Medicare Advantage market with ~9% growth rate With Significant Whitespace ➢ Minimal market penetration; ~2% of MA lives managed by value-based care physician enablers Deeply
Slide 54: Proposed Transaction Overview
Proposed Transaction Overview P3 Health Partners entered into a definitive agreement to merge with Foresight Acquisition Corp. (FOREU) on May 25, 2021 • The transaction is expected to be funded through a combination of: • FOREU’s $316M of cash in trust1 • And $209M of committed PIPE financing • Net
Slide 55: Appendix
Appendix
Slide 56: Pro Forma Capitalization and Ownership
Pro Forma Capitalization and Ownership Estimated Transaction Sources And Uses ($M) Post-money Valuation At Close ($M)4 Sources ($M) PF Transaction Illustrative P3 share price $10.00 Existing P3 equity rollover $1,821 PF shares outstanding 242.3 Proceeds from Trust Account1 316 Total PF equity value
Slide 57: Historical Results
Historical Results $M 2018A 2019A 2020A 1H-21A At-Risk Membership 10,400 19,700 50,600 56,200 Capitated Revenue $86 $139 $472 $295 Other Revenue 1 7 14 8 Total Revenue $88 $146 $485 $303 Capitated % of Total Revenue 98% 95% 97% 97% Medical Cost 92 141 486 298 MCR % Cap. Revenue 107% 102% 103% 101% M
Slide 58: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ➢ A Represents an add-back Year Ended December 31 Six Months Ended June 30 of non-cash charges ($s in thousands) 2019 2020 2020 2021 related to fair-market value estimates for Net income (loss) (42,917) (45,382) (15,353) (51,575) warrants attached to Company’s existi
Slide 59: Innovative, Patient-Centered And Physician-Led Care Delivery Model
Innovative, Patient-Centered And Physician-Led Care Delivery Model Clinical Ownership Physician Engagement Adoption of Best Clinical Practices Population Engagement Improved Lower Cost Clinical Of Care Experience Data Reporting Access Improved Improved Clinical Patient Outcomes Experience Health Pro
Slide 60: Direct Contracting Represents An Upside To Our Model
Direct Contracting Represents An Upside To Our Model 2023 – 2027 • CMS expanding Global-Risk contracting through DCEs to Traditional Medicare beneficiaries (Projected $488B total addressable market opportunity) • Opportunity to aggregate physicians and implement the P3 model Current Status Annual Me
Slide 61: Our Technology Suite Enables The Delivery Of High-Quality Care At Scale
Our Technology Suite Enables The Delivery Of High-Quality Care At Scale Inputs – Fragmented Technology Platform – Built For Purpose Value—Proven ✓ 250+ fragmented, Multi-Layered Tech Stack Enables Our Effective Care Model And ✓ Data-backed solutions and disparate data points per Quadruple Aim: Lower
Slide 62: Health partners people. Passion. Purpose.
Health partners people. Passion. Purpose.