Apollo Medical Holdings, Inc. (NASDAQ:AMEH) Q2 2023 Earnings Call Transcript

Chan Basho: Brooks, thanks so much for the question. We’re very excited about our expansion of the RKK into new counties. It will allow us to quickly deploy our risk-based ecosystem into new counties as was geographies. It will allow us to differentially capture the premium dollar as well as really expand our enablement services. In terms of timing, we are working quickly with the DMHC to expand to our current counties as well as counties where new partners are in. As you know, this is — this takes time in terms of the regulatory efforts and we’ll keep you apprised as we get further traction.

Brooks O’Neil: Let me just ask one more follow-up and I’m not trying to be too picky on this but I’m curious, I think having that Knox-Keene license means you can accept global capitation which would include the hospital portion. And if I’m not mistaken, the premiums you’ve gotten historically don’t include that but those hospitals — that hospital portion could potentially be quite significant for you? Isn’t that true?

Chan Basho: Definitely, yes, you brought up a great point with the RKK we will now be able to take on the hospital risk along with the professionals risk in terms of our revenues. And we are looking forward to moving down this path. Essentially, we will be recognized in revenues for 85-ish percent of the premium dollar versus the 35% to 40% that we are recognizing today.

Brooks O’Neil: And do you think ultimately you can expand more or less for all patients that you will serve across the entire state of California. Isn’t that — is that — do I have that right?

Chan Basho: Yes. We will start with our Medicare Advantage population. The goal is to expand it across multiple lines of business. Of course, this does take time and it’s not going to be overnight. But yes, that is the long-term expand.

Brooks O’Neil: I’ll leave it at that. Good quarter, good outlook. I’m excited for you guys.

Chan Basho: Thanks so much, Brooks. Great to hear you.

Operator: We reached the end of our question-and-answer session. I’d like to turn the floor back over for any further or closing comments.

Brandon Sim: Well, thank you all for your time today. We are always open to a dialogue with investors and welcome visitors to our offices at Alhambra, should any of you be in the Los Angeles area. Please feel free to reach out to us with any additional questions. We look forward to speaking to you all again on our next quarterly call. Thank you.

Operator: Thank you. That does conclude today’s teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.