agilon health, inc. (NYSE:AGL) Q1 2024 Earnings Call Transcript

Page 4 of 4

Sameer Patel: Got it. Super helpful. And then just one follow-up. In terms of the retroactive relief you were mentioning, was there any benefit that flowed through in the first quarter? Or is this sort of like a 2Q or 3Q or 4Q sort of benefit? Or what are the mechanics around the relief as well, if you could explain.

Tim Bensley: Yes. No, we did have some payers that we were able to work with that gave us retroactive relief back to last year because it was prior year, all of that flowed through in the first quarter. It was basically just where we were able to go in and talk to payers about where there were significant changes in their benefits approach versus what we had established when we originally built the contracts and we’re able to reach agreement with them that, that would require some relief to basically bring it back in line with what our expectations were. So yes, we had a couple of different payers that we had that situation for all of that rolled through in Q1.

Sameer Patel: Got it. Thank you.

Operator: Our next question comes from David Larsen from BTIG. Please go ahead.

Unidentified Analyst: This is [indiscernible] on for Dave Larsen. Congrats on the quarter. And thanks for taking questions. I just wanted to build off of a previous question on certain pockets of cost. Can you talk more about the type of utilization you’re seeing? Is it higher costs in oncology and cardiology, were there some seasonal factors from a more intense cold and flu season, GLP-1? Just any color there would be helpful.

Steve Sell: Sure, Jenny. Thanks for the question. I think when we look at sort of the pockets of spend, I referenced the census data related to inpatient that is reflecting higher levels in January and stepping down through March and into April. So that’s really the inpatient side. I think we continue to see elevated levels from an outpatient perspective. You are seeing it in surgery centers in terms of the utilization there. In terms of Part B drug, you are seeing oncology, obviously, is a big part of that spend. So those are the areas in which we are seeing elevated utilization within the first quarter.

Unidentified Analyst: Got it. And then it was helpful to get some of those updates on your increased visibility with the new data and technology platform that you have. Can you just talk about some of the actual technology behind that new analytics platform? Is it completely built in-house? Or do you have some partnerships with third-party vendors? And just any more color on your technology? Do you have a data lake? Are you integrating AI in any way? Any color there would be helpful.

Tim Bensley: Yes. It is really a hybrid of all those things. We have transitioned our data management to a data lake format, which has been very successful for us. And by the way, to your point, that does allow us to use the data in some very innovative ways, including machine learning and AI that helps us drive the operations and performance of the market. So that’s great. In terms of some of the things we talked about around increased visibility for our financial reporting and our financial data pipeline, I would describe it as sort of a hybrid between using a third party that has some software and that application that – we will be able to use to drive the overall new structure, in combination with the data ingestion and data utilization environment that we’ve already built internally.

So the combination of those two things is going to give us a significantly improved and significantly improved structure to our financial data that we’ll be able to use for everything from estimating revenue, claims expense and also using the data to help drive operations. And by the way, that new pipeline will also give us a much cleaner way to utilize third-party data in relation to how we’re booking our financials and use that to influence our financial estimates as well, but it’s sort of a hybrid between all the things we’ve been doing internally with now the utilization of a third-party application that we think is really well suited to our need.

Unidentified Analyst: Great. Thank you.

Operator: We have no further questions on the call. So I will hand the floor back to Steve to wrap up.

Steve Sell: Thank you for your interest in agilon, and we look forward to continuing the dialogue with each of you. Thanks, everybody.

Operator: This concludes today’s conference call. Thank you all very much for joining.

Follow Agilon Health Inc.

Page 4 of 4