Parth Mehrotra: Yes, sure. I mean, we’ve seen really strong momentum, if you see our performance since going public a couple of years ago. We’ve accelerated the opening of new States. We’ve entered now five States in pretty short order here in the last 12 months. And when we went public, we said expect us to enter one State a year, and we’re clearly exceeding that. Our pipeline continues to be broad. We are having multiple discussions with medical groups, ACO entities, health systems. Again, the timing of when these hit is always uncertain. These are very strategic partnerships, very long term-oriented, and we are very careful in who we choose as a partner. So, obviously, as those hit, we we’ll update you as we’ve been doing, but we feel really good about going into the next couple of years and the momentum of the business.
Operator: Thank you. Our next question comes from Elizabeth Anderson from Evercore. Please go ahead.
Sameer Patel: Hi, guys. This is Sameer Patel on Elizabeth. We’re upwards of $900 on PMPMs for capitated revenues for the quarter. Assuming no major change in lives, should we expect something in this range going forward? Or is it kind of – just trying to understand the range that it could potentially fall in over the rest of the year?
Parth Mehrotra: Yes, Sameer, so I think that’s a fair range to look at. Obviously, we are downstream from the payers on the cap book. So, it’s 85% of premium. And then in some risk pools, we are not taking the full 100% risk across all buckets of spend. So, it just depends on the mix of business and the risk pool we are in and how much risk we are sharing with the payers. So, we’ll typically be slightly lower than the average PMPM that you usually see in the industry compared to 100% risk contract.
Operator: Thank you. Our next question comes from Richard Close.
Richard Close: Yes, thanks for the question. I was wondering if you could just talk a little bit about Washington, the difference in that deal as maybe compared to let’s call it Bass in California. And then when do you expect to see, I guess, growth off of that in terms of bringing in new physicians?
Parth Mehrotra: Thanks for the question, Richard. So, the fundamental difference is, we will own the tax ID, own the MSO entity, the ACO entity in Washington, so all three entities. That’s not always the case in some of our partnerships, but in this State, we would own all three entities. So, you’ll see us consolidate results on a GAAP revenue basis, and that’ll happen from the date of the closing of the transaction. The full-year impact from an earning standpoint will happen likely starting 2024 as Walla Walla Clinic gets implemented towards the end of this year, similar to the five-to-seven-month ramp that we have in implementing providers. And then we’ll start our work. Again, thesis is very similar to other States. This is a four, five-year journey for us to add providers.
And I think our differentiated model is really – should be welcomed in that State. I think there’s a real need for providers to have an alternative in the Privia model to be autonomous and remain in their ownership structure while aligning with somebody like us. So, we are really excited. It’s a big TAM in that State, and we feel really excited to enter that State.
Operator: Thank you. Our next question comes from Taji Phillips from Jefferies.
Taji Phillips: Hi, this is Taji on. Thank you for taking my question. So, looking at the value-based attributed lives growth, mainly concentrated in Commercial, and then on the government side MA, so I’m just curious, as we go through the year and there’s a lot of you could say messiness or a lot of shifting in terms of enrollment with redeterminations and exchanges, how are you thinking about the impact on your business? And then Parth, you had talked about still seeing a lot of embedded opportunity in Medicare Advantage. I guess what would kind of trigger that unlocked, for you to see more growth in that part of the business? Thank you.
Parth Mehrotra: Thanks for the question, Taji. So, obviously, the one key differentiator for Privia is our book of business is very balanced, as you noted, between Commercial and government programs, and within government programs in MSSP, MA, and Medicaid. I think the puts and takes in each one of those, our view is as we grow our provider base, as we get more patients on the platform, we are looking to increase the number of attributed lives across all of these buckets. And I think we see great tailwinds across our States in continuing to add attributed lives, and then increasing the yield per life, as we enter into these programs, both for our physician partners and delivering low-cost care and adding value for the payers.
I think that that differentiates us very meaningfully even in the Commercial book. So, I think you’ll continue to see growth in each of those buckets. Obviously, there’s movement within the year. If you take our two largest buckets, Commercial and MSSP, they are more open access PPO-like products. In the early half of the year, you sometimes see employers change their insurance carrier. So, there can be some shifting of lives as they need to come and see their PCP again before being attributed in the new plan, and we are downstream from that. It’s very unlikely that the patient actually leaves the doctor. So, I think you’ll see some movement in the first couple of quarters. But overall, as we increase the number of providers, you should see growth in lives.
