Bright Health Group, Inc. (NYSE:BHG) Q3 2023 Earnings Call Transcript

Page 4 of 4

We expect 2023 enterprise revenue between $1.14 billion and $1.19 billion. The forecast for our adjusted operating cost ratio was unchanged at 17.5% to 18.5%. And we continue to expect to achieve enterprise adjusted EBITDA profitability for the year. In care delivery, our full-year revenue outlook is a range from $250 million to $295 million. And in care solutions, our revenue outlook for the full year is between $890 million and $910 million. Then consumer care, we continue to expect the total of 335,000 to 355,000 total value-based consumers at year end, including approximately 60,000 from our Reach ACOs. And 275,000 to 295,000 from our value-based relationships with other payers including consumers in the ACA marketplace, Medicare Advantage and Medicaid.

One reminder on our value-based consumers and revenue numbers, our care delivery business has substantial scale with more than 290,000 consumers served in the third quarter. Over time, we expect to transition those contracts, the total cost of care arrangements like we currently have in our Medicare Advantage care delivery business with gross revenue [indiscernible] treatment. Based on the value-based consumer served today, we believe we would recognize over $1 billion in additional revenue, which would more appropriately reflect the true scale of this business. Our consumer care business continued to perform well in the third quarter and year-to-date results have been strong, supporting our outlook for enterprise adjusted EBITDA profitability for the year.

With that, here is Mike with some closing comments.

Mike Mikan: Thank you, Jay. I want to thank the whole Bright Health team for their hard work as we work to position the consumer care business for long-term profitable growth. And as the team continues to work on the wind-down of the ACA insurance business and the sale of the Medicare Advantage business. Our consumer care business builds on the strengths of our unique model at Bright Health. From the started the company, we have been building a value-driven fully aligned care model, serving consumers across multiple payer categories. We have a fully capitated care delivery business partnered with leading payers to serve Medicare Advantage consumers. The scaled business serving ACA marketplace consumers through our clinics and our care networks with meaningful opportunities for taking on greater responsibility for the total cost of care in our payer contracts, as well as growth opportunities through adding new consumers and payer relationships.

We are also expanding our presence in Medicaid, where we support federally qualified health centers as they enter value-based care contracts and move up the continuum of risk-sharing arrangements. Our consumer care business is unique in the marketplace in serving consumers across all of these different life stages and health insurance coverage categories. We are focused on driving profitable growth through adding consumers across the payer categories that we serve and moving on the path to total cost of care responsibility and our payer contracts. With value driven care delivery solutions and Medicare Advantage, ACO Reach, Medicaid and ACA marketplace are addressable market is one of the largest in value-driven care delivery. As Steven noted, given the pending regulatory approval, the sale of our California Medicare Advantage business, we won’t be conducting a Q&A session today.

We will look to update you as soon as possible on any developments. Thank you for joining the call and for your interest in our company.

Operator: This concludes today’s call. Thank you for joining. You may now disconnect your lines.

End of Q&A:

Follow Neuehealth Inc.

Page 4 of 4