agilon health, inc. (NYSE:AGL) Q4 2022 Earnings Call Transcript

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Steve Sell: Yes. I can update you on that. I mean I think it’s a great question. As I shared in our remarks, part of the class ’24 includes health systems or the physicians affiliated with them. both employed and independent physicians that are affiliated. And so we will — we’re going to expand a lot more at our Investor Day on our class of ’24 and give you that. But I think we see this as a tremendous growth area for us. I think that health systems are seeing many of the challenges from this fee-for-service world, reimbursement changes, labor costs, that our physician partners are seeing. And they’ve got a tremendous opportunity with their primary care physicians in a senior population to move to value. So we’re going to see that again with the class of ’24 and we’ll be able to give you much more detail at that media at the end of the month.

Matthew Gillmor: Operator, why don’t we move on. If we could just keep it to one question just so we can get to the full queue.

Operator: And our next question comes from Kevin Fischbeck from Bank of America.

Kevin Fischbeck : Great. I just wanted to get a little more color on this implementation time frame that you guys talked about with mphrX. Are you thinking about this is more about being more prepared when you go live because of faster implementation? Or does this potentially accelerate your ability to bring someone on faster where you would have had to wait 12 months implementation I can do it with only 10 months of advanced warning?

Steve Sell: Well, I think we’re going to continue to take as many months as we can on an implementation period. The example I’ll give you, Kevin, is in our 2022 pilot, we utilize this in a market that took us 4 months doing it the old way. And using the technology of the nerve technology, we were able to do it in 4 weeks. It’s 75% faster in that example. Each month is worth a lot in terms of our ability to get patients scheduled, get them in for visits get clinical programs set up earlier, the ability to stratify that population. And so what I would say, when I said it buys us time is it gives us more time to get into the really the heart of that implementation which is getting that patient in getting that assessment and getting them the resources that they need around that.

And so that is the most immediate and powerful impact. This will improve our clinical quality over time should help us on the medical expense because we’re getting there. The quality of our data through this was improved to versus the way we were doing it. Some of that variability came out. So I think it’s a combination of those things, Kevin, that leave us pretty excited about the acquisition.

Tim Bensley: I think it’s really important strategically as we have continued to diversify the kind of partners that we go out now and partner with, including some of these very large kind of PO type organizations that have multiple EMRs within their system. This really just gives us more capability to be able to service a large number — a larger number of types and diverse types of partners. So this is — it’s going to be really impactful with that kind of partnership as well.

Matthew Gillmor: Operator, why don’t we move to the next one.

Operator: Our next question comes from Sean Dodge from RBC.

Sean Dodge : Yes. The class of 2024, 130,000 members, Steve, you made the point that’s much larger than you had initially contemplated. Should we think about 2024 being fully based now? Or do you expect there will be more to be added there? I guess I would point you start to kind of shift over to building out 2025.

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