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Bright Health Group(BHG) - 2023 Q2 - Earnings Call Transcript
BHGBright Health Group(BHG)2023-08-09 13:49
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Financial Data and Key Metrics Changes - Bright Health Group reported Q2 revenue of 298million,a100298 million, a 100% increase from 149.3 million in Q2 2022 [50] - Total company gross profit in Q2 was 52.8million,upfrom52.8 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 6.4million,markingthefirstquarterofpositiveadjustedEBITDA[18]BusinessLineDataandKeyMetricsChanges−TheConsumerCarebusinessgeneratedpositiveoperatingincomeinbothsegments,withCareDeliveryrevenueat6.4 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 11million,whileCareSolutionsrevenuewas11 million, while Care Solutions revenue was 237.7 million with operating income of 40million[51]−TheConsumerCarebusinessendedthequarterwith371,000value−basedconsumers,includingover65,000inREACHACOs[17][30]MarketDataandKeyMetricsChanges−ThemedicalcostratioinQ2was90.240 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]