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

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Steve Sell: Sean, we’ll give you a lot more context at our Investor Day at the end of the month. I think I said it’s going to be at least that, right? The class of new partners, new markets is that’s coming on the composite when you think about what we’re doing and same geography could get you to that $130 million, but it could be larger than that. And it could be a combination of there are additional partners that we have letters of intent with that we could put into that class of ’24 where we could push them as we did last year, out a year. So in this case, they would go out to the class ’25. There also is — that’s an estimate on those 6 partners I talked about, but there is some additional membership potentially within that.

We try to be really kind of smart about the way we do this. But with some of the technologies, some of the faster implementation period, maybe some of that gets into 2024. So we’ll update you at the end of the month at our Investor Day on it. But I think we’re pretty positive on the class and what the opportunity could be for it.

Operator: Our next question comes from George Hill from Deutsche Bank.

George Hill : Yes. Steven, I think you probably just answered this question because it got a little bit of a long preamble. But if I look at what you guys have signed already for the class of ’24, it looks like FCP in Pennsylvania, if the national averages apply will contribute 30,000 to 35,000. And again, with Lexington clinic, that looks like you could be as many as 60,000 MA lives. You said end market growth could probably be over . I guess my question is, a follow-up on , when do you cut the class of ’24 off? And kind of what size is too big for you to ramp ’24 and then kind of push people into ’25?

Steve Sell: Well, so George, thanks for the question. Well, first, let me say, FPC and Lexington are the 2 partners out of the class of ’24 they put releases out. We’ll do those on the others, and we’ll talk to you fulsomely at our Investor Day at the end of the month. They both are great partners and they’re emblematic of how strong this class is, FPC is the largest independent primary care group in Central Pennsylvania. We’ve talked about this phenomenon of groups in an existing state or region in which — we talked to them previously. And for whatever reason, it wasn’t right. And we came back then a few years later and when they wanted to make the move to value agilon was the partner for them. That’s the case of FPC. And I mean, they’re an outstanding group.

We’re really excited to have them. And then Lexington Clinic is really a phenomenal largest multi-specialty oldest multi-specialty group in Central Kentucky. And so we’re excited to bring them on as well. And they were a group that we’ve got a longer implementation period as we talked about. And we push them from the mutually, we agreed to have them go into the class of ’24 instead of the class of ’23. So we’ll talk about it at the end of the month. We are approaching the period in which in another month or so, it’s probably going to push folks into that next class of ’25, so you can have that long runway and get that great starting point that I talked about.

George Hill : Okay. We’ll hold up for the Analyst Day.

Operator: Our next question comes from Ryan Daniels from William Blair.

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