CareMax, Inc.

Ladies and gentlemen, good morning. My name is Abby and I will be your conference operator today. At this time, I would like to welcome everyone to the CareMax fourth quarter 2022 financial results conference call. Today's conference is being recorded and all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one once again. Thank you. And I will now turn the conference over to Samantha Swerdlin, Vice President of Investor Relations. You may begin.

Thank you. And good morning, everyone. Welcome to CareMax's fourth quarter and full year 2022 earnings call. I'm Samantha Swerdlin, Vice President of Investor Relations, and I'm joined this morning by Carlos DeSolo, our Chief Executive Officer and Kevin Worges, our Chief Financial Officer. During the call, we will be discussing certain forward-looking information. These forward-looking statements are based on assumptions and assessments made by Care Massive Management in light of their experience and assessment of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate. Any forward-looking statements made during this call are made as of today, and CareMax undertakes no duty to update or revise such statements, whether as a result of new information, future events, or otherwise. Important factors that could cause actual results, developments, and business decisions to differ materially from the forward-looking statements are described in the company's filings with the SEC, including the section entitled Risk Factors. In today's remarks by management, we will be discussing certain non-debt financial metrics. A reconciliation of these non-GAAP financial metrics to the most comparable GAAP measures can be found in this morning's earnings press release. With that, I'd now like to turn the call over to Carlos.

Thank you, Samantha. Good morning, everyone, and thank you for joining our call today. 2022 was a great year for CareMax, marked by significant growth and national expansion. We exceeded our guidance on revenue and membership, delivered adjusted EBITDA within our guidance range, and added 17 new centers. ending with 62 locations across four states. We also took a major step forward in accelerating our national presence with the acquisition of Steward value-based care and expanded our MSO platform to 10 states with 245,000 lives in value-based care arrangements and approximately 2,000 primary care providers in our network. We have made tremendous progress integrating Steward and are very excited about the opportunity. We believe our hybrid model of a Capital Light MSO combined with our high touch centers provides us with a strong platform for leadership in the industry as we transition to value-based care across the country. Now, turning to some highlights from the quarter. Medicare Advantage membership increased to 93,500 and we're pleased to report that our medical expense ratio for the quarter was 69.5%. It's worth noting that center level MER remained at approximately 70% for the year. These metrics reflect our continued commitment to providing high quality care while maintaining operational efficiency. We continued to deliver strong operational performance during the quarter. We remain focused on ensuring members across our CareMax family have access to consistent, high quality care. Our physical rebranding efforts are well underway with 80% of our footprint already rebranded to enhance our one CareMax value proposition. We continue to benefit from investments we've made in patient experience as evidenced by our five-star rating and quality across all of our Florida centers in 2022. We believe that this underscores our ability to maintain best-in-class care as we grow rapidly. Further, We received a net promoter score of over 97 for member satisfaction and saw 93% of patients during the year, a testament to our efforts to provide accessible patient-centered care. Among other initiatives, we continue to build out the specialty services offered at our centers in areas such as cardiology, diagnostic services, pulmonology, endocrinology, and gastroenterology. We believe that by offering these services in-house, we can significantly reduce total cost of care and allow for better and more seamless care coordination between primary care physicians and specialists. We understand that building strong relationships with our primary care providers is critical to delivering exceptional care to our patients. That's why we're proud to report that we achieved an impressive 94% retention rate for our employed providers over 2022. We believe that our strong success in retaining providers is directly attributable to the comprehensive range of services and support that we provide. From technology to streamlined administrative processes, we're committed to making it easy as possible for our providers to focus on what they do best, caring for patients. At CareMax, we're committed to delivering comprehensive care solutions that meet the unique needs of our patients. As part of this commitment, we've been expanding our in-house pharmacy operations. Recently, we launched a pharmacy for our central Florida locations and are currently in the process of creating a standard pharmacy offering throughout the region. Our investment in expanding our pharmacy offering goes beyond just providing medication to our patients. By having a larger pharmacy presence, we're able to manage a patient's total cost of care. We also provide medication adherence programs helping to ensure that our members take their medications as prescribed and stay healthy. Overall, we're excited about the progress we've made in expanding our pharmacy operations, and we believe that these efforts will help us deliver better outcomes for our patients and drive continued growth. Early in 2022, we began opening up centers outside of our core Florida market. We have expanded our presence to Memphis and Houston and continue to build density in New York City, where we now have seven centers, including our first center in the Bronx, which opened during Q4. The results we've seen from the centers opened earlier in the year have been very encouraging. We have exceeded our membership goals and now have 1,000 patients in New York City, driven by strong organic sales from our team and hiring of PCPs with deep roots in their respective communities. We've also had success in Memphis, where we now have approximately 500 Medicare Advantage patients. Our growth in both markets has been driven by our focus on providing high-quality care and building strong relationships with patients, their families, and the broader community. Looking ahead, we're excited about the growth opportunities in our new markets. Now I'd like to update you on the progress of steward integration efforts. which have been gaining momentum since our acquisition in November. The acquisition of Steward's value-based care business provided us immediate scale to deliver value-based care across the country. Our expanded network now comprises approximately 2,000 providers and over 200,000 Medicare value-based care patients in 10 states and 30 markets. To support this growth, we onboarded 65 full-time employees to ensure a smooth transition. We are encouraged to see that local practices in the steward network are eager to adopt value-based care, and we have been working closely with them to provide education and resources they need to successfully transition this model of care. On the payer side, we've made significant progress in transitioning stewards of Medicare Advantage fee-for-service beneficiaries into Medicare Advantage value-based care arrangements. We have also moved some of the legacy stored value-based care contracts into contracts with higher levels of risk sharing. We are pleased to report that our payer partners are receptive to aligning with our glide path to full risk strategy. We believe that our momentum in this area will continue as more payers seek to shift their business into value-based arrangements, and that this puts us in a strong position to ultimately shift a significant portion of the stored Medicare Advantage fee-for-service population into risk-based arrangements over time. Since the founding of CareMax, we have been committed to taking an innovative approach to healthcare delivery, which includes our proprietary system of blending targeted technology with comprehensive high-touch care. This unique approach has been a key driver of our strong results. As we continue to pursue deliberate growth plans, We believe that our hybrid delivery model of a capital light MSO integrated with our high performing centers sets us apart from others in the healthcare industry. As we look ahead to the next several years, we couldn't be more excited about the momentum we've established and the opportunities that lie ahead for us. Over the past year, we've made significant strides in transforming our business, expanding our operations, to a national scale and establishing ourselves as one of the largest value-based care operators in the country. We believe that our focus on delivering high-quality value-based care will continue to drive significant growth and value for our shareholders, and that we have the opportunity to unlock $400 to $550 million in adjusted EBITDA value over the next 5 to 10 years. Now, I want to take a moment to discuss our upcoming Investor Day on March 13th. We have a great day planned for you, which will include presentations from many members of our leadership team. We hope you will come away with a deeper understanding of our business, vision, and strategy, and the deep impact we have on the communities we serve. We are looking forward to seeing you in Miami next week. Before I hand over the call to Kevin, I want to thank our incredible team members for all of their hard work and dedication over the past year. They continue to exceed our expectations with their commitment to growing the business while going above and beyond to deliver exceptional healthcare and always keeping the needs of our members first. With that, I'll turn it over to Kevin to provide greater detail on our fourth quarter financial performance.