Financial Performance - The company reported a net loss of $1.3 billion for the year ended December 31, 2023[870]. - The company recorded a net loss attributable to common shareholders of $1.2 billion for 2023, compared to a loss of $1.5 billion in 2022, with a basic and diluted loss per share of $150.94[903]. - Total operating costs decreased from $354.4 million in 2022 to $287.1 million in 2023, a reduction of approximately 19%[834]. - Bad debt expense for the year ended December 31, 2023, was $27.4 million, primarily due to a care partner filing for bankruptcy[859]. - The company incurred medical costs payable of $2.4 million and $11.2 million under contracts as of December 31, 2023, and 2022, respectively[823]. Regulatory and Compliance Risks - The company is exposed to risks related to compliance with federal and state healthcare laws, which could result in significant penalties and reputational harm[426]. - The company may face challenges in complying with evolving privacy and cybersecurity regulations, which could impact its operations and revenue[431]. - The company is subject to increased scrutiny from the U.S. Department of Justice and the OIG regarding healthcare fraud, waste, and abuse, leading to potential investigations and penalties[442]. - The company may be subject to penalties for non-compliance with healthcare laws, which could adversely affect its business and financial condition[456]. - The company faces challenges in complying with evolving regulatory and legislative environments, which could adversely affect its operations and results[454]. Internal Controls and Financial Reporting - The company has identified material weaknesses in its internal controls over financial reporting, which may result in material misstatements of its consolidated financial statements[445]. - The company announced a material weakness related to its internal controls, which it has been actively remediating since Q4 2022[478]. Debt and Financing - The company is subject to significant restrictions on future financing arrangements, which may limit its ability to raise additional debt or equity financing[421]. - The company may encounter difficulties in generating sufficient cash flows to meet its debt obligations, impacting its future working capital and financing options[450]. - The company entered into a new credit agreement in 2023, borrowing a total of $66.4 million as of December 31, 2023[838]. - The company has $303.9 million borrowed under a revolving credit agreement with a weighted-average effective annual interest rate of 10.06% as of December 31, 2023[878]. - The company has $66.4 million borrowed under the New Credit Agreement at a weighted-average effective interest rate of 15.00% as of December 31, 2023[881]. Assets and Liabilities - As of December 31, 2023, the company had outstanding net operating losses ("NOLs") of approximately $2.5 billion, which are available to reduce future taxable income[483]. - Intangible assets accounted for approximately 23.1% of total assets of the company's continuing operations on the consolidated balance sheet as of December 31, 2023[484]. - Medical costs payable increased from $116.0 million at the beginning of 2023 to $157.9 million by December 31, 2023[846]. - The company recorded an impairment loss on long-lived assets of $1.2 million during the year ended December 31, 2023[863]. - The company fully impaired the goodwill assigned to its NeueCare reporting unit due to a decline in stock price and market capitalization[886]. Corporate Governance and Structure - The company’s amended and restated certificate of incorporation includes provisions that may delay or prevent mergers or acquisitions that stockholders might consider beneficial[493]. - The company has broad discretion in the application of net proceeds from capital raised, which may not necessarily enhance profitability or shareholder value[492]. - The company is actively evaluating additional financing options with the Board of Directors and outside advisors[871]. Operational Challenges - The company is subject to ongoing litigation and regulatory investigations, which could strain resources and negatively affect its business[437]. - The company has exited the health insurance market but will continue to account for health plan activities until the run-out of all legacy insurance plans is complete[480]. - The Company’s restructuring has resulted in the loss of institutional knowledge, which could adversely affect operations and future growth[814]. - The company has implemented a restructuring plan to reduce capital needs and operating expenses to drive positive operating cash flow and increase liquidity[874]. Stock and Market Performance - The trading price of the company's common stock has been volatile, and future fluctuations may not correlate with its operating performance[487]. - The Company’s common stock is traded on the NYSE under the symbol "NEUE"[817]. Revenue Recognition - The Company recognizes revenue from provider enablement services on a per member per month basis, with revenue recognized as the service period is completed[822]. - The Company’s enablement services are designed to empower providers in value-based care arrangements, enhancing their success[806].

Financial Performance - NeueHealth achieved $1.2 billion in revenue for 2023, representing a 55% year-over-year increase[1] - Net loss for the year ended December 31, 2023, was $1,265,808 thousand, an improvement from a net loss of $1,359,880 thousand in 2022[6] - Revenue for the fourth quarter of 2023 was $292,871 thousand, compared to $227,696 thousand in the same period of 2022[9] - Net loss from continuing operations for the fourth quarter was $62,827 thousand, an improvement from $84,671 thousand in the prior year[9] - NeueHealth reported a net loss of $460,572 thousand for the year ended December 31, 2023, compared to a net loss of $657,791 thousand for the previous year, representing a 30% improvement[32] - Net loss for the three months ended December 31, 2023, was $460,572, compared to a loss of $657,792 for the same period in 2022, representing a 30% improvement[42] - Total revenue for the fourth quarter of 2023 was $292,871 thousand, an increase of 28.6% from $227,696 thousand in the same quarter of 2022[32] Consumer and Service Growth - The company served 461,000 consumers, an increase of 294% from the prior year on a comparable basis[8] - Value-based consumers served increased to 355,000 as of December 2023, up from 117,000 in December 2022, marking a growth of approximately 203.4%[19] - ACO REACH revenue for the three months ended December 31, 2023, was $219,659 thousand, up from $188,652 thousand in the same period of 2022, representing an increase of about 16.5%[14] - Capitated revenue for the fourth quarter of 2023 was $60,091 thousand, up 78.7% from $33,609 thousand in the fourth quarter of 2022[33] - ACO REACH revenue increased to $219,659 thousand in Q4 2023, compared to $188,652 thousand in Q4 2022, reflecting a growth of 16.4%[32] Operational Metrics - Adjusted EBITDA for the year is projected to be between $15 million and $25 million for 2024[8] - NeueCare Adjusted EBITDA for the three months ended December 31, 2023, was $6,929 thousand, compared to a loss of $146,870 thousand in the same period of 2022[17] - The operating cost ratio improved to 22.3% for the three months ended December 31, 2023, down from 40.9% in the same period of 2022[16] - Total operating expenses for the year ended December 31, 2023, were $1,737,798 thousand, compared to $1,119,919 thousand in 2022, indicating a significant increase[32] - The company reported an operating loss of $45,935 thousand for Q4 2023, an improvement from an operating loss of $90,906 thousand in Q4 2022[32] Assets and Liabilities - Total current assets decreased to $1,088,927 thousand in December 2023 from $3,570,634 thousand in December 2022, a decline of approximately 69.5%[12] - Total liabilities decreased to $1,480,098 thousand in December 2023 from $3,725,367 thousand in December 2022, a reduction of approximately 60.3%[12] - The accumulated deficit increased to $(4,307,849) thousand in December 2023 from $(3,156,395) thousand in December 2022, reflecting a worsening of approximately 36.4%[12] Future Outlook - The company expects to continue focusing on its care delivery and provider enablement business following the sale of its California Medicare Advantage business[1] - NeueHealth plans to align the interests of providers, payors, and consumers to drive differentiated value in 2024[1] - The company provided guidance for full year 2024, indicating expectations for continued growth and operational improvements[20] - NeueHealth's Enterprise Revenue is projected to be approximately $1 billion for 2024, with NeueSolutions Revenue expected between $690 million and $700 million[30] - The Enterprise Adjusted Operating Cost Ratio is anticipated to be between 15% and 16% for 2024[30] - Enterprise Adjusted EBITDA is expected to range from $15 million to $25 million in 2024[30] Cost Management and Impairments - The company reported a significant impairment of goodwill amounting to $587,535 thousand for the year[6] - Cash used in operating activities for the year was $2,726,546 thousand, compared to cash provided of $234,466 thousand in 2022[6] - Total interest expense increased to $11,206 for the three months ended December 31, 2023, compared to $6,387 in the prior year, reflecting a 75% increase[42] - Share-based compensation expense decreased to $18,081 for the three months ended December 31, 2023, down from $32,450 in the same period of 2022, a reduction of 44%[42] - Depreciation and amortization expenses decreased to $4,024 for the three months ended December 31, 2023, from $5,426 in the same period of 2022, a decline of 26%[42] - Transaction costs for the year ended December 31, 2023, totaled $23,252, compared to $386 in the previous year, indicating a significant increase[42] - The company reported a loss from discontinued operations of $397,745 for the three months ended December 31, 2023, down from $573,120 in the same period of 2022, a decrease of 30%[42] - The company expects ongoing costs related to the bankruptcy of one of its ACO REACH care partners, which will impact future financial performance[45] - The company plans to continue focusing on restructuring efforts and managing costs associated with exiting the Commercial business segment[45]

MINNEAPOLIS--(BUSINESS WIRE)--Bright Health Group, Inc. (“Bright Health” or the “Company”) (NYSE: BHG) today announced that it has adopted NeueHealth as its corporate brand name. This reflects the Company’s ongoing focus on its NeueHealth business, which will continue driving long-term sustainable growth of its value-driven, consumer-centric care model, thereby increasing access to high-quality healthcare for all populations across the ACA Marketplace, Medicare, and Medicaid. The Company’s common stock will ...

Table of Contents *Shares have been retroactively adjusted to reflect the decreased number of shares resulting from a 1 for 80 reverse stock split See accompanying Notes to Condensed Consolidated Financial Statements Table of Contents Basis of Presentation: The condensed consolidated financial statements include the accounts of Bright Health Group, Inc. and all subsidiaries and controlled companies. All intercompany balances and transactions are eliminated upon consolidation. The condensed consolidated fina ...

| --- | --- | |-------------------------------------------------------------------|-------| | | | | | | | | | | Bright Health Group Third Quarter 2023 – Earnings Presentation | | | November 7, 2023 | | Disclaimer Statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of o ...

Bright Health Group, Inc. (NYSE:BHG) Q3 2023 Earnings Conference Call November 7, 2023 8:00 AM ET Company Participants Stephen Hagan - Investor Relations Director Mike Mikan - Vice Chairman, CEO & President Jay Matushak - CFO Conference Call Participants Operator Hello, all, and welcome to Bright Health Group's third quarter 2023 earnings call. My name is Lydia, and I will be your operator today. It's my pleasure to now hand you over to your host, Stephen Hagan, Investor Relations Director to begin. Please ...

| --- | --- | |-------------------------------------------------------------------|-------| | | | | | | | | | | Bright Health Group Second Quarter 2023 – Earnings Presentation | | | August 9, 2023 | | Disclaimer Statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of op ...

Financial Data and Key Metrics Changes - Bright Health Group reported Q2 revenue of $298 million, a 100% increase from $149.3 million in Q2 2022 [50] - Total company gross profit in Q2 was $52.8 million, up from $18.5 million in Q2 2022, with gross margin increasing to 17.7% from 12.4% [39] - Consolidated adjusted EBITDA for the quarter was positive $6.4 million, marking the first quarter of positive adjusted EBITDA [18] Business Line Data and Key Metrics Changes - The Consumer Care business generated positive operating income in both segments, with Care Delivery revenue at $66.1 million and operating income of $11 million, while Care Solutions revenue was $237.7 million with operating income of $40 million [51] - The Consumer Care business ended the quarter with 371,000 value-based consumers, including over 65,000 in REACH ACOs [17][30] Market Data and Key Metrics Changes - The medical cost ratio in Q2 was 90.2%, which was in line with expectations, and utilization remained stable [53] - The company expects to transition contracts to total cost of care arrangements, reflecting a significant long-term opportunity across multiple payer categories [42][44] Company Strategy and Development Direction - The company is focusing on value-driven care and has exited the ACA Insurance business, aiming to deepen relationships with external payer partners [29][8] - Bright Health is positioning itself as one of the largest providers of value-driven care in the country, balancing risk and growth [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's capital position following the announcement of a $60 million credit facility and a waiver of default on existing credit facilities [34][37] - The company remains focused on delivering adjusted EBITDA profitability for the full year and sees multiple opportunities for long-term growth [43] Other Important Information - The company has made substantial progress on the runout of its ACA Marketplace business, reaching approximately 95% claims completion as of June 30 [11] - The sale of the California Medicare Advantage business is expected to close by early 2024, pending regulatory approvals [53][4] Summary of Q&A Session Questions and Answers - There was no Q&A session conducted during this call due to the pending regulatory approval of the sale of the California Medicare Advantage business [45]

NOTE 8. NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the three and six months ended June 30 (in thousands, except for per share amounts): | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|-------- ...

Risk Adjustment: We record adjustments for changes to the risk adjustment balances for individual policies in premium revenue. The risk adjustment program adjusts premiums based on the demographic factors and health status of each consumer as derived from current-year medical diagnoses as reported throughout the year. Under the risk adjustment program, a risk score is assigned to each covered consumer to determine an average risk score at the individual and small-group level by legal entity in a particular ...