Agilon Health, Inc. · NYSE:AGL
Agilon Health — William Blair 44th Annual Growth Stock Conference 2024
17 slides from Agilon Health's conference presentation, Jun 5, 2024
Slide 1: Investor Presentation
Investor Presentation June 2024
Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION Statements in this report 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 the Securi
Slide 3: Key Points for Today’s Discussion
Key Points for Today’s Discussion Demand for our value proposition has never been higher Business model working for doctors, patients, and payors Tangible progress executing strategic action plan Long-term value potential is meaningful 3
Slide 4: Primary Care Economics and Capacity Are Getting Worse While Healthcare System Demanding More
Primary Care Economics and Capacity Are Getting Worse While Healthcare System Demanding More Challenged PCP Economics 20%+ Decline Growing Senior Population 60% in PCP Economics for Medicare 40% 20% 0% 75M 2001 2006 2011 2016 2022 Physician Reimbursement Practice Costs Primary Care Capacity is Strai
Slide 5: And Senior Patient Outcomes Are Highly Variable
And Senior Patient Outcomes Are Highly Variable Variation in Preventative Services Variation in Cost & Utilization <19 19 28 35 44+ AWV Completion Rate (%) ~ 2X Variation in Medicare spending across regions Uncoordinated ~ 3X & Fragmented Variation in Medicare inpatient days across regions … Negativ
Slide 6: System Sees Primary Care as the Solution
System Sees Primary Care as the Solution Increasing Focus on Value • PCPs are aligned with payor goals of improving access, quality of care, and patient outcomes • Physician groups lack business model, financial resources, and data to meet this challenge • agilon health’s platform is the solution fo
Slide 7: agilon Is Powering a Sustainable Model for Primary Care
agilon Is Powering a Sustainable Model for Primary Care • agilon enables physicians to improve patient experiences and outcomes • Our model is resonating with physicians, patients, and payors Primary Care Doctors Patients Primary Care Reinvestment Medicare Advantage Medicare Advantage ACO Model ~635
Slide 8: Improving Patient Access, Quality, and Utilization
Improving Patient Access, Quality, and Utilization Patient Access Quality Inpatient / ER Utilization STARs Performance by Market Class Readmissions 17.4% 4.6 12.8% 79% Class of 2018 4.4 Class of 2019 Readmission Rate Class of 2020 4.2 Class of 2021 Hospital Admissions Class of 2022 231 4.0 164 4 Sta
Slide 9: Proof Point - Case Study on Palliative Patients
Proof Point - Case Study on Palliative Patients Recent peer-reviewed research published in the Journal of Pain and Symptom Management Palliative Clinical Program / Study Results • 90% of Medicare patients prefer to pass Control Group Treatment Group at home but only 34% achieve this $30,727 33% Lowe
Slide 10: Performance is Driving Growth
Performance is Driving Growth Class of 2025 Expected to Add >60K Medicare Advantage Members to Platform 30 Markets PCPs on Platform 2,400 (live and implementing) 23 1,700 ~58% 51% 17 CAGR CAGR Invest More 11 1,000 PCPs Join in Care 800 Delivery 8 700 agilon Network 4 400 2 200 2018 2019 2020 2021 20
Slide 11: Drivers of our Long-Term Financial Model
Drivers of our Long-Term Financial Model Membership ACO Model Operating Medical Margin Growth Performance Leverage Progression • Membership Growth: Meaningfully outperforming, especially for new partner growth • ACO Model Performance: Significant outperformance during 2023 carries into 2024+ • Opera
Slide 12: Class of 2025 Partners
Membership Class of 2025 Partners Class of 2025 New Partners Includes 5 Leading Physician Groups with >60K MA Members Graves Gilbert Clinic ▪ Founded in 1937 and is South Central Kentucky’s largest physician-owned group ▪ >200+ providers Springfield Clinic ▪ Serving Central Illinois since 1939 ▪ >65
Slide 13: ACO Model Performance and Operating Leverage
ACO Performance Operating Leverage ACO Model Performance and Operating Leverage 2023 agilon ACO REACH Cost Trend vs Platform Support Leverage (% of Total Revenue) National Reference Population 7.2% 11.2% ~320bps Lower Cost Trend 8.2% 4.0% 6.7% 5.4% 4.3% ~3% agilon health National Reference 2019 2020
Slide 14: Member Cohort Medical Margin PMPM (Incurred)
Medical Margin Member Cohort Medical Margin PMPM (Incurred) Progressing or sustaining member cohort medical margin PMPMs towards ~$150 range despite the higher utilization environment and payor benefit changes in 2023 2018 Members 2019 Members 2020 Members 2021 Members 2022 Members 2023 Members Elev
Slide 15: Actions to Improve Performance, Balance Risk Sharing, and Enhance Predictability
Actions to Improve Performance, Balance Risk Sharing, and Enhance Predictability Enhancing processes and systems to address market dynamics and drive accelerated performance in 2024 and beyond Action Timing Details / Milestones ▪ Reducing performance variability, especially for new PCPs in existing
Slide 16: agilon Names Jeff Schwaneke as New Chief Financial Officer
agilon Names Jeff Schwaneke as New Chief Financial Officer ▪ Issued Press Release and 8K on June 5 announcing Jeff Schwaneke’s appointment as agilon’s Chief Financial Officer and Executive Vice President effective July 1, 2024. ▪ Schwaneke has served as a director on agilon’s board since August 2022
Slide 17: Clear Long-term Value Opportunity
Clear Long-term Value Opportunity Demand from PCPs is structurally higher agilon platform driving more value to PCPs, patients, and payors Executing on action plan and driving performance Variability in healthcare delivery system creates opportunity
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