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agilon health Reports First Quarter 2021 Results

LONG BEACH, Calif. – May 26, 2021 – agilon health, inc. (NYSE: AGL), the company transforming health care for seniors by empowering primary-care physicians to focus on the entire health of their patients, announced results for the first quarter ended March 31, 2021.

First Quarter 2021 Results:

  • Total revenue of $413 million increased 42% from 2020 and would have increased approximately 50% including a recently completed group Medicare Advantage (MA) contract that is retroactive to January 2021
  • Members of approximately 165,300 as of March 31 increased 35% from 2020 and would have increased 42% to approximately 174,300 including the retroactive group contract
  • Same geography membership growth of 8% from 2020 and same geography membership growth of 15% including the retroactive group contract
  • Net loss from continuing operations of $14 million, compared to $8 million in 2020
  • Medical Margin of $52 million, compared to $42 million in 2020
  • Adjusted EBITDA of $4 million, compared to $3 million in 2020

“We are pleased with our first quarter results, highlighted by 42% revenue growth and 35% membership growth.  Including the retroactive group MA contract, same geography membership growth increased 15%, reflective of strong member retention and broad-based additions across all markets.  Our aligned partnership model is resonating with physician groups and we began implementing six new geographies with approximately 49,000 members that will go-live in January 2022.” said Steve Sell, Chief Executive Officer. “With the completion of our initial public offering, we are well capitalized to support our growth strategy.  We plan to use the proceeds to scale our platform, support growth of our existing physician partners, and partner with additional groups to help transform senior care in local communities across the country.”

Outlook for Second Quarter and Fiscal Year 2021:

Quarter Ending
June 30, 2021
Year Ending
December 31, 2021
Low High Low High
Ending members 175,000 177,000 182,000 184,000
Total revenues ($M) $470 $475 $1,765 $1,780
Adjusted EBITDA ($M) ($41) ($38)

Total revenue outlook for the second quarter 2021 includes an estimated $24 million associated with the group MA contract attributable to the first quarter. Adjusted EBITDA loss reflected in the full year 2021 outlook is expected to be weighted to the second half of the fiscal year.

We have not reconciled guidance for Adjusted EBITDA to net income (loss), the most directly comparable GAAP measure, and have not provided forward-looking guidance for net income (loss), because of the uncertainty around certain items that may impact net income (loss), including stock-based compensation, that are not within our control or cannot be reasonably predicted.

Membership Details

Membership as of March 31, 2021 was approximately 165,300, an increase of 35% from 2020.  Average membership during the first quarter 2021 was approximately 163,000.  Including an estimated 49,000 members currently in implementation for 2022 go-live, total MA membership on the agilon platform was approximately 214,300 as of March 31, 2021.

Same geography membership increased 8% year-over-year during the first quarter 2021 and increased 15% including a recently completed group MA contract that is retroactive to January 2021.  During the first quarter, a group MA contract transitioned between two payers in one of our geographies.  Due to the timing required to complete the transition, agilon health’s first quarter 2021 results do not include the revenue, membership, or costs of these members.  agilon health recently completed a new agreement covering this membership and this will be reflected in the company’s financial results for the second quarter 2021, including retroactive amounts associated with first quarter 2021.  We estimate the retroactive revenue and membership associated with this contract for the first quarter 2021 are approximately $24 million and 9,000, respectively.  Importantly, patients covered by this group plan were under the continuous care of their primary care doctor during this transition.

Direct Contracting

In collaboration with seven of our physician group partners, we launched five Direct Contracting Entities (DCE) with over 50,000 attributed beneficiaries on April 1, 2021.  The DCE program allows physician groups on the agilon platform to operate a single line of business for Medicare patients.  While the recent announcement from the Center for Medicare and Medicaid Innovation will limit new DCE entrants for 2022, we will be able to utilize existing DCEs as a vehicle for existing or new physician groups to participate in the Direct Contracting program.

Initial Public Offering and Debt Refinancing

On April 19, 2021, we completed the initial public offering of 53,590,000 shares of common stock at a price of $23.00 per share.  The net proceeds of the offering were approximately $1.16 billion, after underwriting fees and other offering expenses.

On February 18, 2021, we executed a new credit facility agreement (2021 Secured Credit Facilities). The 2021 Secured Credit Facilities included an initial $100 million senior secured term loan and a $100 million senior secured revolving credit facility.  Subsequent to the end of the first quarter and in connection with our initial public offering, we repaid $50 million of the senior secured term loan.

As of April 30, 2021, including the impact from the initial public offering, debt refinancing, debt repayment and other items, agilon health had approximately $1.1 billion of cash and $50 million of debt outstanding.

Webcast and Conference Call:

agilon health will host a conference call and webcast to discuss first quarter 2021 results on Thursday, May 27, 2021 at 8:30 AM Eastern Time. The conference call and webcast can be accessed by dialing (855) 435-0829 for U.S. participants, or +1 (639) 491-2399 for international participants, and referencing participant code 9436419, or visiting the “Events & Presentations” section of https://investors.agilonhealth.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call.

About agilon health

agilon health is transforming health care for seniors by empowering primary-care physicians to focus on the entire health of their patients. Through our partnerships and our platform, agilon is leading the nation in creating the system we need – one built on the value of care, not the volume of fees. We honor the independence of local physicians and serve as their partners so they can be the doctors they trained to be. agilon provides the capital, data, payor relationships, executive experience and contract support that allow physician groups to take on the risk of total care for their most vulnerable patients. The result: healthier communities, and doctors who can devote the right amount of time with the patients who need it most. With rapidly growing appeal, agilon is scaled to grow and is here to help our nation’s best independent physician groups have a sustained, thriving future. Together, we are reinventing primary care.

Forward Looking Statements

Statements in this release that are not historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, among other things, statements regarding our and our officers’ intent, belief or expectation as identified by the use of words such as “may,” “will,” “project,” “expect,” “believe,” “intend,” “anticipate,” “seek,” “target,” “forecast,” “plan,” “potential,” “estimate,” “could,” “would,” “should,” and other comparable and derivative terms or the negatives thereof. Examples of forward-looking statements include, among other things: (i) statements regarding timing, outcomes and other details relating to current, pending or contemplated new markets, new partnership structures, financing activities, dispositions, or other transactions discussed in this release; and (ii) statements regarding growth opportunities, ability to deliver sustainable long-term value, business environment, long term opportunities and strategic growth plan including without limitation with respect to expected revenue and net income, total and average membership, Adjusted EBITDA, and other financial projections and assumptions, as well as comparable statements included in other sections of this release. Forward-looking statements reflect our current expectations and views about future events and are subject to risks and uncertainties that could significantly affect our future financial condition and results of operations. While forward-looking statements reflect our good faith belief and assumptions we believe to be reasonable based upon current information, we can give no assurance that our expectations or forecasts will be attained. Further, we cannot guarantee the accuracy of any such forward-looking statement contained in this release, and such forward-looking statements are subject to known and unknown risks and uncertainties that are difficult to predict. These risks and uncertainties that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, but are not limited to: our history of net losses, and our ability to achieve or maintain profitability in an environment of increasing expenses; our ability to identify and develop successful new geographies, physician partners and payors, or to execute upon our growth initiatives; our ability to execute our operation strategies or to achieve results consistent with our historical performance; our expectation that our expenses will increase in the future and the risk that medical expenses incurred on behalf of members may exceed the amount of medical revenues we receive; our ability to secure contracts with Medicare Advantage payors or to secure Medicare Advantage at favorable financial terms; our ability to recover startup costs incurred during the initial stages of development of our physician partner relationships and program initiatives; significant reductions in our membership; challenges for our physician partners in the transition to a Total Care Model; inaccuracies in the estimates and assumptions we use to project the size, revenue or medical expense amounts of our target market; the spread of, and response to, the novel coronavirus, or COVID-19, and the inability to predict the ultimate impact on us; security breaches, loss of data or other disruptions to our data platforms; the impact of devoting significant attention and resources to the provision of certain transition services in connection with the disposition of our California operations; our subsidiaries’ lack of performance or ability to fund their operations, which could require us to fund such losses; our dependence on a limited number of key payors; the limited terms of our contracts with payors and that they may not be renewed upon their expiration; our reliance on our payors for membership attribution and assignment, data and reporting accuracy and claims payment; our dependence on physician partners and other providers to effectively manage the quality and cost of care and perform obligations under payor contracts; our dependence on physician partners to accurately, timely and sufficiently document their services and potential False Claims Act or other liability if any diagnosis information or encounter data are inaccurate or incorrect; reductions in reimbursement rates or methodology applied to derive reimbursement from, or discontinuation of, federal government healthcare programs, from which we derive substantially all of our total revenue; statutory or regulatory changes, administrative rulings, interpretations of policy and determinations by intermediaries and governmental funding restrictions, and their impact on government funding, program coverage and reimbursements; regulatory proposals directed at containing or lowering the cost of healthcare and our participation in such proposed models; the impact on our revenue of CMS modifying the methodology used to determine the revenue associated with MA members; our substantial indebtedness and the potential that we may incur additional indebtedness; and risks related to other factors discussed under “Risk Factors” in our Registration Statement on Form S-1. Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.

agilon health, inc.
Consolidated Balance Sheets
In thousands, except share and per share data

March 31, 2021 December 31, 2020
(unaudited)
ASSETS
Current assets:
 Cash and cash equivalents $105,289 $106,795
 Restricted cash and equivalents 14,202 28,383
 Receivables, net 288,827 144,555
 Prepaid expenses and other current assets, net 9,314 9,639
 Current assets held for sale and discontinued operations, net 4,825
Total current assets 417,632 294,197
Property and equipment, net 4,799 6,456
Intangible assets, net 61,609 60,468
Goodwill 41,540 41,540
Other assets, net 47,259 43,700
Non-current assets held for sale, net 1,199
 Total assets $574,038 $446,361
LIABILITIES, CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
 Medical claims and related payables $276,984 $162,868
 Accounts payable and accrued expenses 95,122 97,244
 Current portion of long-term debt 3,041
 Current liabilities held for sale and discontinued operations 3,682
Total current liabilities 372,106 266,835
Long-term debt, net of current portion 99,412 64,665
Other liabilities 91,264 90,091
 Total liabilities 562,782 421,591
Commitments and contingencies
Contingently redeemable common stock, $0.01 par value: 76,201 shares issued and outstanding 309,500 309,500
Stockholders’ equity (deficit):
Common stock, $0.01 par value: 500,000 shares authorized; 249,474 and 249,374 shares issued and outstanding, respectively 2,494 2,494
Additional paid-in capital 265,603 263,966
Accumulated deficit (566,268) (551,190)
 Total agilon health, inc. stockholders’ equity (298,171) (284,730)
Noncontrolling interests (73)
 Total stockholders’ equity (deficit) (298,244) (284,730)
  Total liabilities, contingently redeemable common stock and stockholders’ equity (deficit) $574,038 $446,361

 

agilon health, inc.
Consolidated Statements of Operations
In thousands, except per share data
(unaudited)

Three Months Ended March 31,
2021 2020
Revenues:
 Medical services revenue $412,412 $289,814
 Other operating revenue 692 1,234
  Total revenues 413,104 291,048
Expenses:
 Medical services expense 360,354 247,653
 Other medical expenses 23,661 18,426
 General and administrative 37,777 27,605
 Depreciation and amortization 3,427 3,198
  Total expenses 425,219 296,882
Income (loss) from operations (12,115) (5,834)
Other income (expense):
 Other income (expense), net 1,336 122
 Interest expense (2,941) (2,149)
Income (loss) before income taxes (13,720) (7,861)
 Income tax benefit (expense) (16)
Income (loss) from continuing operations (13,736) (7,861)
Discontinued operations:
 Income (loss) before income taxes (1,351) (8,089)
 Income tax benefit (expense) (64) (149)
Total discontinued operations (1,415) (8,238)
Net income (loss) (15,151) (16,099)
 Noncontrolling interests’ share in earnings (loss) 73
Net income (loss) attributable to common shares $(15,078) $(16,099)
Net income (loss) per common share, basic and diluted
Continuing operations $(0.04) $(0.02)
Discontinued operations $(0.01) $(0.03)
Weighted average shares outstanding, basic and diluted 325,659 321,250

 

agilon health, inc.
Condensed Consolidated Statements Of Cash Flows
In thousands, except per share data
(unaudited)

Three Months Ended March 31,
2021 2020
Cash flows from operating activities:
Net income (loss) $(15,151) $(16,099)
Adjustments to reconcile net loss to net cash used in operating activities:
 Depreciation and amortization 3,481 3,363
 Stock-based compensation expense 1,472 1,071
 Loss on debt extinguishment 1,186
 Other noncash items 1,766 837
Changes in operating assets and liabilities (33,582) (15,299)
  Net cash provided by (used in) operating activities (40,828) (26,127)
Cash flows from investing activities:
Purchase of property and equipment, net (178) (345)
Purchase of intangible assets (3,986) (33)
Investment in loans receivable and other (1,204) (359)
Proceeds from repayment of loans receivable 1,056
Proceeds from sale of business, net of cash divested (3,706)
  Net cash provided by (used in) investing activities (9,074) 319
Cash flows from financing activities:
Proceeds from equity issuances, net 28,128
Proceeds from exercise of stock options 165
Proceeds from the issuance of long-term debt 100,000
Debt issuance costs (1,218)
Repayments of long-term borrowings (68,649) (760)
  Net cash provided by (used in) financing activities 30,298 27,368
Net increase (decrease) in cash, cash equivalents and restricted cash and equivalents (19,604) 1,560
Cash, cash equivalents and restricted cash and equivalents from continuing

operations, beginning of period

135,178 139,152
Cash, cash equivalents and restricted cash and equivalents from discontinued

operations, beginning of period

3,917 6,460
Cash, cash equivalents and restricted cash and equivalents, beginning of period 139,095 145,612
Cash, cash equivalents and restricted cash and equivalents from continuing operations, end of period 119,491 142,563
Cash, cash equivalents and restricted cash and equivalents from discontinued operations, end of period 4,609
Cash, cash equivalents and restricted cash and equivalents, end of period $119,491 $147,172

 

agilon health, inc.
Key Operating Metrics
In thousands
(unaudited)

MEDICAL MARGIN

Three Months Ended March 31,
2021 2020
Medical services revenue $412,412 $289,814
Medical services expense (360,354) (247,653)
 Medical margin $52,058 $42,161

 

Medical margin represents the amount earned from medical services revenue after medical services expenses are deducted. Medical services expense represents costs incurred for medical services provided to our members. As our platform matures over time, we expect medical margin to increase in absolute dollars. However, medical margin per member per month (PMPM) may vary as the percentage of new members brought onto our platform fluctuates. New membership added to the platform is typically dilutive to medical margin PMPM.

GENERAL AND ADMINISTRATIVE COSTS, INCLUDING PLATFORM SUPPORT COSTS

Three Months Ended March 31,
2021 2020
Platform support costs $28,408 $23,520
Geography entry costs(1) 3,222 652
Severance and related costs 454 2
Management fees(2) 375 330
Stock-based compensation expense 1,472 1,021
Other(3) 3,846 2,080
 General and administrative $37,777 $27,605

(1) Represents physician incentive expense related to surplus sharing and other direct medical expenses incurred to improve care for our members in our live geographies. Excludes costs in geographies for which we are contracted to go live in January of the following year.
(2) Represents management fees and other expenses paid to Clayton Dubilier & Rice, LLC (“CD&R”). In connection with our initial public offering, we terminated our consulting agreement with CD&R, effective April 16, 2021. We were not charged a fee in connection with the termination of this agreement.
(3) Includes changes in non-cash accruals for unasserted claims and contingent liabilities.

Our platform support costs, which include regionally-based support personnel and other operating costs to support our geographies, are expected to decrease over time as a percentage of revenue as our physician partners add members and our revenue grows. Our operating expenses at the enterprise level include resources and technology to support payor contracting, clinical program development, quality, data management, finance and legal functions.

agilon health, inc.
Non-GAAP Financial Measures
In thousands
(unaudited)

NETWORK CONTRIBUTION

Three Months Ended March 31,
2021 2020
Income (loss) from operations $(12,115) $(5,834)
Other operating revenue (692) (1,234)
Other medical expenses 23,661 18,426
Other medical expenses—live geographies(1) (21,916) (17,421)
General and administrative 37,777 27,605
Depreciation and amortization 3,427 3,198
 Network contribution $30,142 $24,740

(1) Represents physician incentive expense related to surplus sharing and other direct medical expenses incurred to improve care for our members in our live geographies. Excludes costs in geographies for which we are contracted to go live in January of the following period. For the three months ended March 31, 2021 and 2020, costs incurred in implementing geographies were $1.8 million and $1.0 million, respectively.

ADJUSTED EBITDA

Three Months Ended March 31,
2021 2020
Net income (loss) $(15,151) $(16,099)
(Income) loss from discontinued operations, net of income taxes 1,415 8,238
Interest expense 2,941 2,149
Income tax expense (benefit) 16 0
Depreciation and amortization 3,427 3,198
Geography entry costs(1) 4,967 1,658
Severance and related costs 454 2
Management fees(2) 375 330
Stock-based compensation expense 1,472 1,021
Other(3) 3,846 2,080
 Adjusted EBITDA $3,762 $2,577

(1) Represents direct geography entry costs, including investments to develop and expand our platform, physician incentive expense, employee-related expenses and marketing. For the three months ended March 31, 2021 and 2020, (i) $1.8 million and $1.0 million, respectively, are included in other medical expenses and (ii) $3.2 million and $0.7 million, respectively, are included in general and administrative expenses.
(2) Represents management fees and other expenses paid to CD&R. In connection with our initial public offering, we terminated our consulting agreement with CD&R, effective April 16, 2021. We were not charged a fee in connection with the termination of this agreement.
(3) Includes changes in non-cash accruals for unasserted claims and contingent liabilities.

In addition to providing results that are determined in accordance with GAAP, we present network contribution and Adjusted EBITDA, which are non-GAAP financial measures.

We define network contribution as medical services revenue less the sum of: (i) medical services expense and (ii) other medical expenses excluding costs incurred in implementing geographies. Other medical expenses consist of physician incentive expense related to surplus sharing and other direct medical expenses incurred to improve care for our members. We believe this metric provides insight into the economics of our Total Care Model as it includes all medical services expense associated with our members’ care as well as partner incentive and additional medical costs we incur as part of our aligned partnership model. Other medical expenses are largely variable and proportionate to the level of surplus in each respective geography.

We define Adjusted EBITDA as net income (loss) adjusted to exclude: (i) income (loss) from discontinued operations, net of income taxes, (ii) interest expense, (iii) income tax expense (benefit), (iv) depreciation and amortization expense, (v) geography entry costs, (vi) share-based compensation expense, (vii) severance and related costs and (viii) certain other items that are not considered by us in the evaluation of ongoing operating performance.

Income (loss) from operations is the most directly comparable GAAP measure to network contribution. Net income (loss) is the most directly comparable GAAP measure to Adjusted EBITDA.

We believe network contribution and Adjusted EBITDA help identify underlying trends in our business and facilitate evaluation of period-to-period operating performance of our live geographies by eliminating items that are variable in nature and not considered by us in the evaluation of ongoing operating performance, allowing comparison of our recurring core business operating results over multiple periods. We also believe network contribution and Adjusted EBITDA provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics we use for financial and operational decision-making. We believe network contribution and Adjusted EBITDA or similarly titled non-GAAP measures are widely used by investors, securities analysts, ratings agencies, and other parties in evaluating companies in our industry as a measure of financial performance. Other companies may calculate network contribution and Adjusted EBITDA or similarly-titled non-GAAP measures differently from the way we calculate these metrics. As a result, our presentation of network contribution and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, limiting their usefulness as comparative measures.

Contacts

Investor Contact
Matthew Gillmor
VP of Investor Relations
investor.relations@agilonhealth.com

 

Media Contact
Shannan Siemens
Managing Director, Mercury
media@agilonhealth.com

2021-06-08T13:47:35-07:00June 7th, 2021|

White Coat Influencers Across the Country Are Rising to the Occasion To Stop the Spread of COVID19

Physician Weekly Podcast Features Ben Kornitzer, MD, Chief Medical and Quality Officer at agilon health, and Linda Odenigbo, MD from PriMed Physicians, one of our practice partners in Dayton, Ohio. They discuss the nationwide campaign “Roll Up Our Sleeves and the innovative efforts physicians are making to ensure everyone is vaccinated for COVID-19.

Click here to listen to Dr. Kornitzer and Dr. Odenigbo, along with other experts on Telemedicine and Humanizing Healthcare. The segment for Dr, Kornitzer and Dr. Odenigbo begins at 23:30.

Physician’s Weekly offers in-depth interviews with the most highly respected experts who weigh in on landmark research and trending topics affecting the medical community and their patients. Physician’s Weekly speaks with a wide range of physicians, key opinion leaders, subject matter experts, and (bio) pharmaceutical industry professionals and aims to break down many complex topics related to health and medicine without the typical jargon and over-complicated explanations.

2021-06-09T15:00:23-07:00June 2nd, 2021|

agilon health to Participate in Upcoming Investor Conferences

06/01/2021

LONG BEACH, Calif.–(BUSINESS WIRE)– agilon health, inc. (NYSE: AGL), the company transforming health care for seniors by empowering primary-care physicians to focus on the entire health of their patients, announced that it will participate in the following upcoming investor conferences:

The William Blair 41st Annual Growth Stock Conference, including a presentation on Thursday, June 3 at 3:40-4:10 PM Eastern Time.
The Goldman Sachs 42nd Annual Global Healthcare Conference, including a presentation on Tuesday, June 8 at 2:10-2:50 PM Eastern Time.

Interested investors and other parties may listen to a simultaneous webcast of each event by visiting the “Events & Presentations” section of https://investors.agilonhealth.com. Replays will be available for on-demand listening shortly after the completion of each presentation.

About agilon health

agilon health is transforming health care for seniors by empowering primary-care physicians to focus on the entire health of their patients. Through our partnerships and our platform, agilon is leading the nation in creating the system we need – one built on the value of care, not the volume of fees. We honor the independence of local physicians and serve as their partners so they can be the doctors they trained to be. agilon provides the capital, data, payor relationships, executive experience and contract support that allow physician groups to take on the risk of total care for their most vulnerable patients. The result: healthier communities, and doctors who can devote the right amount of time with the patients who need it most. With rapidly growing appeal, agilon is scaled to grow and is here to help our nation’s best independent physician groups have a sustained, thriving future. Together, we are reinventing primary care.

Investor Contact
Matthew Gillmor
VP of Investor Relations
investor.relations@agilonhealth.com

Media Contact
Shannan Siemens
Managing Director, Mercury
media@agilonhealth.com

2021-06-01T14:05:48-07:00June 1st, 2021|

agilon health Partner Innovation & Platform Updates – May 2021 Newsletter

agilon health Provider Partners logo

Partner Innovation & Platform Updates

Partner Leadership

Team Member Bulletin

Innovation on the agilon health Platform

Industry News

agilon health
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2021-05-18T08:01:40-07:00May 12th, 2021|

agilon health Announces Closing of Initial Public Offering and Full Exercise of Underwriters’ Option to Purchase Additional Shares

April 19, 2021 05:00 PM Eastern Daylight Time

LONG BEACH, Calif.–(BUSINESS WIRE)–agilon health, inc. (NYSE: AGL), which partners with primary care physicians to unlock value-based healthcare delivery, announced the closing of its initial public offering of 53,590,000 shares of its common stock at the public offering price of $23.00. The number of shares offered and sold by agilon health included the full exercise of the underwriters’ option to purchase up to an additional 6,990,000 shares of common stock. The gross proceeds of the offering, before deducting underwriting discounts and commissions and other expenses payable by agilon health, were approximately $1,233 million.

agilon health’s common shares began trading on the New York Stock Exchange on April 15, under the ticker symbol AGL.

J.P. Morgan, Goldman Sachs & Co. LLC, and BofA Securities acted as lead book-running managers for the proposed offering. Deutsche Bank Securities, Wells Fargo Securities, Nomura, William Blair, and Truist Securities acted as additional book-running managers.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (“SEC”) on April 14, 2021. The offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com; or BofA Securities, Attention: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, or by email at dg.prospectus_requests@bofa.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities have and will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About agilon health

agilon health is transforming healthcare by empowering community-based physicians with the resources and expertise they need to innovate the payment and delivery of care for seniors. agilon health enables physicians to create their own Medicare-centric globally capitated line of business. The agilon Total Care Model is powered by our purpose-built platform and enabled through a growing national network of like-minded physician partners. With agilon, physicians are freed from the constraints of the transactional fee-for-service reimbursement model and are able to practice team-based, coordinated care to serve the individual needs of their senior patients and to transition to a sustainable and predictable, long-term business model. The rapidly growing appeal of the agilon platform, partnership model and network of leading community-based physicians has allowed us to expand to 17 local communities with 16 anchor physician groups, as well as a network of physicians across Hawaii, in fewer than five years.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the initial public offering. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of agilon health, including those set forth in the Risk Factors section of the registration statement and the preliminary prospectus included therein. Copies are available on the SEC’s website at www.sec.gov. agilon health undertakes no obligation to update these statements for revisions or changes after the date of this press release, except as required by law.

Contacts

Investor Contact
Matthew Gillmor
VP of Investor Relations
investor.relations@agilonhealth.com

Media Contact
Shannan Siemens
Managing Director, Mercury
media@agilonhealth.com

2021-04-19T14:38:26-07:00April 19th, 2021|

Central Ohio Primary Care helped build and owns part of startup that just had $1B IPO

Columbus Business First highlighted the role that Central Ohio Primary Care played in the $1B IPO. Read the article below or Click here to read.

By Carrie Ghose  –  Staff reporter, Columbus Business First

Bill Wulf, MD, COPC Central Ohio Primary Care Physicians Inc., the nation’s largest independent practice of its kind, was the first customer and owns a minority stake in a southern California startup that raised more than $1 billion in its IPO Thursday.

Agilon Health Inc. went public with a valuation of more than $9 billion. Westerville-based COPC was listed in regulatory filings as one in a group of entities that collectively hold 25% after the offering. Clayton Dubilier & Rice LLC, a New York City private equity firm, controls 58%.

The primary care group was the founding partner in 2017. Its doctors’ feedback helped shape the software platform called a “total care model” that collects and analyzes the data needed to pay doctors for achieving better patient health.

Under the model, COPC is paid a set monthly rate for seniors covered by Medicare Advantage plan – so it profits only if they don’t need costly care such as emergency department visits.

Clayton Dubilier & Rice invited COPC precisely because of its size, practice CEO Dr. William Wulf said via email. Owned by member physicians, the practice was awarded shares as part of the 2017 deal and based on performance since.

In the first year, seniors within the model had medical costs that were 10% lower than market averages, Wulf told me for a 2017 story.

Since then, Agilon has established partnerships with 17 practices, including several in Ohio. The Long Beach, California-based company had a net loss of $60 million on $1.2 billion revenue in 2020, according to its securities registration.

“The data analytics capability has helped us to risk-stratify our patients and identify both high- and low-value services and procedures,” Wulf said. “We also receive performance measures on physicians, which helps them to continuously refine & optimize their care.”

Patients in the plan have more frequent screenings and wellness checkups, and fewer emergency visits and preventable hospitalizations, COPC said.

“Agilon respects our independence as a local physician group,” Chief Medical Officer Dr.  said in a news release.

Wulf also is on the board of directors for the new public company.

Source

https://www.bizjournals.com/columbus/news/2021/04/16/central-ohio-primary-care-role-in-agilon-ipo.html

2021-04-19T07:55:53-07:00April 19th, 2021|

agilon health Announces Pricing of Initial Public Offering

04/14/2021

LONG BEACH, Calif.–(BUSINESS WIRE)–agilon health, inc. (“agilon health”), which partners with primary care physicians to unlock value-based healthcare delivery, announced the pricing of its initial public offering of 46,600,000 shares of its common stock at a public offering price of $23.00. All of the shares of common stock are being offered by agilon health. The gross proceeds of the offering, before deducting underwriting discounts and commissions and other expenses payable by agilon health, are expected to be approximately $1,072 million. agilon health has granted the underwriters a 30-day option to purchase up to an additional 6,990,000 shares of its common stock at the initial public offering price, less underwriting discounts and commissions.

The shares are expected to begin trading on the New York Stock Exchange on April 15, under the ticker symbol AGL. The offering is expected to close on April 19, 2021, subject to customary closing conditions.

J.P. Morgan, Goldman Sachs & Co. LLC, and BofA Securities are acting as lead book-running managers for the proposed offering. Deutsche Bank Securities, Wells Fargo Securities, William Blair, Truist Securities, and Nomura are acting as additional book-running managers.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (“SEC”) on April 14, 2021. The offering is being made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com; or BofA Securities, Attention: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, or by email at dg.prospectus_requests@bofa.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About agilon health

agilon health is transforming healthcare by empowering community-based physicians with the resources and expertise they need to innovate the payment and delivery of care for seniors. agilon health enables physicians to create their own Medicare-centric globally capitated line of business. The agilon Total Care Model is powered by our purpose-built platform and enabled through a growing national network of like-minded physician partners. With agilon, physicians are freed from the constraints of the transactional fee-for-service reimbursement model and are able to practice team-based, coordinated care to serve the individual needs of their senior patients and to transition to a sustainable and predictable, long-term business model. The rapidly growing appeal of the agilon platform, partnership model and network of leading community-based physicians has allowed us to expand to 17 local communities with 16 anchor physician groups, as well as a network of physicians across Hawaii, in fewer than five years.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of agilon health, including those set forth in the Risk Factors section of the registration statement and the preliminary prospectus included therein. Copies are available on the SEC’s website at www.sec.gov. agilon health undertakes no obligation to update these statements for revisions or changes after the date of this press release, except as required by law.

Contacts
Investor Contact
Matthew Gillmor
VP of Investor Relations
investor.relations@agilonhealth.com

Media Contact
Shannan Siemens
Managing Director, Mercury
media@agilonhealth.com

View All News

2021-04-14T19:18:17-07:00April 14th, 2021|

agilon health Announces Launch of Initial Public Offering

April 07, 2021 08:00 AM Eastern Daylight Time

LONG BEACH, Calif.–(BUSINESS WIRE)–agilon health, inc. (“agilon health”), which partners with primary care physicians to unlock value-based healthcare delivery, announced the launch of its initial public offering of 46,600,000 shares of its common stock pursuant to a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (“SEC”). The initial public offering price is currently expected to be between $20.00 and $23.00 per share. agilon health expects to grant the underwriters a 30-day option to purchase up to an additional 6,990,000 shares of its common stock at the initial public offering price, less underwriting discounts and commissions.

agilon health has applied to list its common stock on the New York Stock Exchange, under the ticker symbol “AGL”.

J.P. Morgan, Goldman Sachs & Co. LLC, and BofA Securities are acting as lead book-running managers for the proposed offering. Deutsche Bank Securities, Wells Fargo Securities, William Blair, Truist Securities, and Nomura are acting as additional book-running managers.

The offering is being made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com; or BofA Securities, Attention: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, or by email at dg.prospectus_requests@bofa.com.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About agilon health

agilon health is transforming healthcare by empowering community-based physicians with the resources and expertise they need to innovate the payment and delivery of care for seniors. agilon health enables physicians to create their own Medicare-centric globally capitated line of business. The agilon Total Care Model is powered by our purpose-built platform and enabled through a growing national network of like-minded physician partners. With agilon, physicians are freed from the constraints of the transactional fee-for-service reimbursement model and are able to practice team-based, coordinated care to serve the individual needs of their senior patients and to transition to a sustainable and predictable, long-term business model. The rapidly growing appeal of the agilon platform, partnership model and network of leading community-based physicians has allowed us to expand to 17 local communities with 16 anchor physician groups, as well as a network of physicians across Hawaii, in fewer than five years.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of agilon health, including those set forth in the Risk Factors section of the registration statement and the preliminary prospectus included therein. Copies are available on the SEC’s website at www.sec.gov. agilon health undertakes no obligation to update these statements for revisions or changes after the date of this press release, except as required by law.

Contacts

Investor Contact
Matthew Gillmor
VP of Investor Relations
investor.relations@agilonhealth.com

Media Contact
Shannan Siemens
Managing Director, Mercury
media@agilonhealth.com

2021-04-07T18:09:43-07:00April 7th, 2021|

agilon health Files Registration Statement for Proposed Initial Public Offering

agilon health Files Registration Statement for Proposed Initial Public Offering

March 18, 2021 05:00 PM Eastern Daylight Time

LONG BEACH, Calif.–(BUSINESS WIRE)–agilon health, inc. (“agilon health”), which partners with primary care physicians to unlock value-based healthcare delivery, announced it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the “SEC”) for a proposed initial public offering of shares of its common stock. The number of shares to be offered and the price range for the offering have not yet been determined.

agilon health intends to list its common stock on the New York Stock Exchange, under the ticker symbol AGL.

J.P. Morgan, Goldman Sachs & Co. LLC, and BofA Securities are acting as lead book-running managers for the proposed offering. Deutsche Bank Securities, Wells Fargo Securities, William Blair, Truist Securities, and Nomura are acting as additional book-running managers. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size and terms of the offering.

The offering is being made only by means of a prospectus. Copies of the preliminary prospectus, when available, may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing prospectus-ny@ny.email.gs.com; or BofA Securities, Attention: Prospectus Department, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, NC 28255-0001, or by email at dg.prospectus_requests@bofa.com.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About agilon health

agilon health is transforming healthcare by empowering community-based physicians with the resources and expertise they need to innovate the payment and delivery of care for seniors. agilon health enables physicians to create their own Medicare-centric globally capitated line of business. The agilon Total Care Model is powered by our purpose-built platform and enabled through a growing national network of like-minded physician partners. With agilon, physicians are freed from the constraints of the transactional fee-for-service reimbursement model and are able to practice team-based, coordinated care to serve the individual needs of their senior patients and to transition to a sustainable and predictable, long-term business model. The rapidly growing appeal of the agilon platform, partnership model and network of leading community-based physicians has allowed us to expand to 17 local communities with 16 anchor physician groups, as well as a network of physicians across Hawaii, in fewer than five years.

Cautionary Note Regarding Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of agilon health, including those set forth in the Risk Factors section of the registration statement and the preliminary prospectus included therein. Copies are available on the SEC’s website at www.sec.gov. agilon health undertakes no obligation to update these statements for revisions or changes after the date of this press release, except as required by law.

Contacts
Investor Contact
Matthew Gillmor
VP of Investor Relations
investor.relations@agilonhealth.com

Media Contact
Shannan Siemens
Managing Director, Mercury
media@agilonhealth.com

2021-03-18T14:31:04-07:00March 18th, 2021|

Partnerships Extend to Buffalo, NY; Wilmington, NC; Hartford, CT; and Toledo, OH; Presence Now in 11 Geographies

agilon health Expands Partnerships with Market-Leading Independent Physician Groups in Four States

LONG BEACH, Calif., March 15, 2021  agilon health, which partners with primary care physicians to unlock the value inherent in the leap from fee-for-service to a global-risk-based business model, today announced it has entered into a joint venture with four more leading independent physician practices. They are Buffalo Medical Group (BMG) in Buffalo, NY; Wilmington Health in Wilmington, NC; Starling Physicians in Hartford, CT and The Toledo Clinic, in Toledo, Ohio.

These new partnerships expand upon agilon health’s efforts to improve and accelerate the growth of risk-based models of care in key geographies across the country by introducing a complete operating platform for integrated payment and delivery.

With today’s announcement, agilon health has successfully entered into thirteen partnerships with leading physician groups and networks, including Central Ohio Primary Care in Columbus, Ohio, and Austin Regional Clinic in Austin, Texas – in total empowering primary care providers in eleven geographies to influence the continued transformation of their local care delivery systems around the principles of cost and quality.

Across these geographies, agilon health has signed more than 40 global risk contracts with multiple payors, including leading national and regional plans that will serve the Medicare Advantage population in 2021. Our multi-payor approach ensures patient choice of the health plan benefits that serve them best.

In addition, seven of our market-leading primary care practice partners have expanded the scope of our collaboration to include traditional Medicare patients through the CMS Direct Contracting program. This expansion affirms their commitment to the partnership with agilon health and enables a consistent provider experience and patient-centered approach to quality, efficiency and care for all of their Medicare beneficiaries.

According to the Health Care Payment Learning & Action Network, approximately 46 percent of all seniors nationally are in advanced payment models. In, contrast, agilon health’s partnership model platform represents hundreds of independent primary care physicians with 100 percent of their collectively attributed Medicare Beneficiaries in advanced payment models tied to quality and efficiency. Throughout the pandemic, the practices who are in risk arrangements through agilon’s platform as of 2020 performed more than 115,000 virtual visits on their Medicare Advantage patients, a rate that is 15 percent per thousand beneficiaries higher than national benchmarks. Furthermore, during these unprecedented times, where care for many with chronic conditions has been disrupted, 15 percent of the virtual visits performed have been for patients with more than four chronic conditions.

“I am exceptionally proud of the work done by our team over the past four years to establish truly collaborative partnerships with physicians that are fundamentally changing the way health care is provided to seniors across the country,” said Steven Sell, CEO of agilon health. “We see the transformation our model brings, not only in our partner practices, but also in the communities they serve. Our expansion into a total care model for traditional Medicare patients broadens our opportunity to build exceptional experiences for both providers and patients. The value of our partnership model has also been a significantly stabilizing force for our practices during the public health emergency. Our practice partners continue to expand access, especially in areas of their communities where underserved senior populations reside at a time when many independent practices are contracting.”

 

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2021-03-18T14:27:03-07:00March 15th, 2021|
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