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Dec 31, 2023
agilon health Q4 2023 Earnings Report
agilon health's Q4 2023 results were reported, revealing a significant revenue increase alongside membership growth, but also highlighting challenges with medical costs and profitability.
Key Takeaways
agilon health reported a 72% increase in revenue to $1.06 billion for Q4 2023. However, the company faced challenges with rising medical costs, leading to a gross profit of negative $95 million and a net loss of $230 million. The company is implementing a targeted action plan to address these issues and expects the Class of 2025 to add at least 60,000 Medicare Advantage members.
Revenue increased by 72% to $1.06 billion compared to Q4 2022.
Medicare Advantage membership increased by 68% to 388,400.
Total members on the agilon platform grew to 477,700.
Gross profit was negative $95 million, compared to $16 million in Q4 2022.
Revenue by Segment
Forward Guidance
agilon health's updated guidance assumes that the higher medical cost trend from 2023 will continue in 2024. Revised guidance assumes a medical cost trend of approximately 6.6% in 2024 for Year 2+ markets, which is 250 bps above the company’s prior expectation and compares to the 7.0% medical cost trend observed in 2023.
Positive Outlook
- Expanding onboarding support for newer primary care physicians (PCPs) in mature markets.
- Refining payor partnerships.
- Improving data visibility and analytics.
- Accelerating operating efficiency.
- Class of 2025 new partners will include at least 5 physician groups with more than 60,000 new Medicare Advantage (MA) members.
Challenges Ahead
- Updated guidance assumes that the higher medical cost trend from 2023 will continue in 2024.
- Revised guidance assumes a medical cost trend of approximately 6.6% in 2024 for Year 2+ markets, which is 250 bps above the company’s prior expectation and compares to the 7.0% medical cost trend observed in 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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