Apollo Medical Holdings, Inc.

Hello, and welcome to the Apollo Medical Holdings Second Quarter 2023 Financial Results Conference Call and Webcast. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. You may press star one at any time to be placed into question queue. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Caroline Son, Vice President, Investor Relations. Caroline, please go ahead.

Thank you, operator, and hello, everyone. Thank you for joining us. The press release announcing Apollo Medical Holdings, Inc.' 's results for the second quarter ended June 30th, 2023, is available at the investor section of the company's website at www.apollomed.net. To provide some additional background on its results, the company has made a supplemental deck available on its website. A replay of this broadcast will also be made available at Apollo Med's website after the conclusion of this call. Before we get started, I would like to remind everyone that this conference call and any accompanying information discussed herein contains certain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terms such as anticipate, believe, expect, future plan, outlook, and will, and include, among other things, statements regarding the company's guidance for the year ending December 31st, 2023, continued growth, acquisition strategy, ability to deliver sustainable long-term value, ability to respond to the changing environment, operational focus, strategic growth plans, and merger integration efforts. Although the company believes that the expectations reflected in its forward-looking statements are reasonable as of today, those statements are subject to risks and uncertainties that could cause the actual results to differ dramatically from those projected. There can be no assurance that those expectations will prove to be correct. Information about the risks associated with investing in Apollo Med is included in its filings with the Securities and Exchange Commission, which we encourage you to review before making an investment decision. The company does not assume any obligation to update any forward-looking statements as a result of new information, future events, changes in market conditions, or otherwise, except as required by law. Regarding the disclaimer language, I would also like to refer you to slide two of the conference call presentation for further information. For those of you following along with the accompanying supplement, there is an overview of the company on slide three. On today's call, the company's co-chief executive officer, Brandon Sim, will discuss second quarter 2023 highlights and the latest operational developments. Chief financial officer, Chaun Basho, will follow with a review of ApolloMed's results for the second quarter and six months ended June 30th, 2023. Brandon will conclude the remarks with an update on the company's outlook and long-term growth strategy before opening the floor for questions. With that, I'll turn the call over to ApolloMed's co-chief executive officer, Brandon Sim. Please go ahead, Brandon.

Thank you, Caroline. We were pleased to deliver another strong quarter, achieving 29% growth on the top line and 44% growth in adjusted EBITDA compared to the same quarter in 2022. Revenue growth was primarily driven by strong organic membership growth and a more favorable payer mix in our care partners' business. We continued to execute on our three key operational goals. One, growing our membership in core new geographies. Two, empowering our care delivery and care partners providers to successfully move along the glide path towards value-based care. And three, enabling our providers to deliver excellent patient outcomes in order to manage that risk effectively. On the first goal, growing our membership in core and new geographies, we continue to see strong growth as a result of the strength and quality of our care partners business, as well as the technology, operational, and care management support we bring to bear in our care enablement business. Our core business in California continues to demonstrate robust growth, both organically in our partnered groups, as well as in new partnerships signed. We recently formed a long-term partnership with a primary care group in California with a network of over 50 providers joining our newly signed class of partners in 2023. We expect to onboard this group onto our care enablement platform by September 1st of this year. We also want to highlight what we believe is our ability to replicate our success in Southern California and other markets. As previously communicated, our playbook for empowering providers in a new market includes, first, entering a market in partnership with a high-quality anchor group for a risk-bearing care partners business. Second, investing in local operational and care management teams to ensure successful onboarding onto our care enablement platform for these providers. And finally, partnering with additional groups in the market who would benefit from joining our platform. This flywheel accelerates as we reach critical mass in each market, and we believe that the enablement platform we've built and proven to generate great patient outcomes and profitability in Southern California will allow us to demonstrate this progression rapidly in each new market we enter. In Texas, for example, we entered with the acquisition of Valley Oaks Medical Group last October. As we build out our local market leadership in Texas, we are pleased to share that Jamie Malkinoff, a healthcare executive with over 20 years of experience in the industry, has joined us as President of ApolloCare Enablement of Texas and Senior Vice President of Business Development. Jamie is expected to play a key role in expanding our care partners network across the country and further building out our care enablement platforms capabilities, empowering providers to advance along the value-based care glide path responsibly in Texas. We are thrilled to welcome Jamie to our leadership team and look forward to your contributions to our expansion efforts. Next, we continue to partner with groups across the region to empower their providers to provide high-quality value-based care. Firstly, we recently announced the acquisition of certain assets related to Texas Independent Providers, or TIP. Through its network of 120 primary care providers, TIP is expected to be an anchor for a high-quality care partner segment in Houston. And we expect to onboard TIP's providers onto our care enablement platform by the end of 2023. We are pleased that we will continue to benefit from the leadership of TIP's President, Dr. Carlos Palacios, who will join Apollo Med as Chief Medical Officer for Texas to spearhead clinical initiatives for local providers, and TIP Executive Director, Vincent Ross, who will join us as Group Vice President of Operations for Texas and lead the continued growth and development of our Texas network. We also announced a partnership with InterCare to advance value-based care in Dallas, Fort Worth, El Paso, Austin, and Oklahoma City. Through a network of over 425 primary care providers, IntraCare manages the care of over 40,000 members. And through this partnership, IntraCare's providers are expected to join our care partners' business in these regions and be onboarded onto our care enablement platform by the end of the year. We are thrilled by the continued strong momentum we've been seeing in terms of the excitement around our care partners and care enablement offerings in both California, Texas, and beyond. Our next strategic pillar is in empowering our care delivery and care partners providers to successfully move along the glide path towards value-based care. In California, we shared during our previous quarterly call in May that we had closed on the acquisition of For Your Benefit, or FYB, and received regulatory approval for the change in control of FYB's full-service restricted Noxkeen licensed health plan. We are working closely with the Department of Managed Health Care to expand the RKK to other counties within California and to add more members within existing counties, and we believe that the process is on track relative to our expectations. Finally, the most important strategic pillar is ensuring that we are successfully empowering our providers to deliver excellent patient outcomes, thereby managing that risk effectively. We continue to closely monitor utilization trends and did not see an increase in utilization in Q2 compared to Q1. Based on prior authorization data, however, we do see a slight uptick in utilization for Q3, but do not believe that this will significantly impact our overall performance or guidance for 2023. With regards to Medicaid redetermination, a bulk of our Medicaid members and value-based arrangements reside in California, which began disenrollment in July. We have not yet seen a significant impact on either our membership or mix, but we continue to monitor and assist in the redetermination process for our members to ensure they have access to care. With these recent developments and our solid financial performance through the first half of 2023, we are pleased to be reiterating our previously provided guidance for full year 2023. We continue to grow membership in our core California markets and in our new Nevada and Texas geographies through organic growth, new partnerships, and inorganic activities. We continue to responsibly accelerate providers towards a value-based aligned future. And we continue to make ongoing strategic investments in our business, our teams, and our technology, which we believe are necessary to support growth in the years to come. With that, I'll turn it over to Chan to review our financial results.