Privia Health Group, Inc.

Ladies and gentlemen, and welcome to the Preview Health quarterly conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instruction will follow at that time. If anyone should require operator assistance, please press star then the number zero key on your touch-down telephone. As a reminder, this call may be recorded. I would now like to introduce Robert Klocher, previous SVP of Investor and Corporate Communications.

Thank you, Jeff, and good afternoon, everyone. Joining me today on today's call are Sean Morris, our Chief Executive Officer, Parth Mehrotra, President and Chief Operating Officer, and David Mountcastle, our Chief Financial Officer. This call is being webcast and can be accessed from the Investor Relations section of our company website at privyahealth.com. Today's press release, highlighting our financial and operating performance, as well as the slide presentation accompanying our formal remarks, are posted on our IR website pages. Following Sean and Parth's opening comments, we will open the line for questions. We ask that you please limit yourself to one question and one follow-up so we can get through the full queue in a timely fashion. The financial results reported today and in the press release are preliminary, and are not final until our Form 10Q for the first quarter ended March 31, 2021 is filed with the Securities and Exchange Commission. Some of the statements we will make today are forward-looking in nature, based on our current expectations and our view of our business as of May 27, 2021. Such statements, including those related to our future financial and operating performance and future business plans and objectives, are subject to risks and uncertainties that may cause actual results to differ materially. As a result, these statements should be considered in conjunction with the cautionary statements in today's press release and the risk factors described in our company's most recent SEC filings. Finally, we may refer to certain non-GAAP financial measures on the call, and reconciliations of these measures to comparable GAAP measures are included in our press release and the accompanying slide presentation posted on our website. With that, I'll now turn the call over to Sean.

Sean Esterly Thank you, Robert. Good afternoon, everyone. I'll provide a brief performance summary, including an overview of our investment thesis, growth strategy, and our first quarter performance, as well as an update on where we are seeing momentum and continued success in our business. Then Park will cover a more detailed review of our financial and operating performance and outlook for the year before we take your questions. Engagement with physicians is absolutely key as reimbursement models in the U.S. healthcare market shift to value-based care. Previa Health is purposely building a next-generation physician organization that engages with and organizes physicians into large-scale medical groups covering wide geographic areas in each state. Our model has proven to move providers in a thoughtful and successful manner to value-based care over time, generating over $430 million in savings since 2014. Our strategy is simple but elegant and difficult for others to replicate as we work to achieve massive scale quickly. We have built a comprehensive technology solution directly for our providers to address the key payments they face each and every day. And our solution directly aligns with providers' financial success and facilitates physician autonomy while preserving their current ownership structures. Our value is reflected in our high provider retention rates and net promoter scores from both providers and patients. A differentiation of the Previa platform is our ability to support all providers, all patients, and across all reimbursement models, from commercial to Medicare shade savings, Medicare Advantage, and Medicaid. This differentiation aligns with our provider, health system, and payer partners as they look to serve all healthcare consumers. We enter and expand in new and existing markets with our capital light financial model. This does not preclude us in the future from acquiring a minority or majority stake in an anchor medical practice or even opening a de novo clinic. We will continue to be good stewards of capital, taking a smart and thoughtful approach in making financially sound business decisions. These decisions will be grounded in solid market dynamics and demographics and predicated on market density targets and profitable growth. We are well positioned to continue to monetize our platform and drive growth through five core strategies, Let me walk through each on the next slide. First, we organically grow our existing practices by increasing the number of providers, increasing their patient panels, and helping our providers be more productive. Number two, we look to move markets at scale to value-based care by participating in a variety of risk-based arrangements as they evolve in each of our geographic markets. Third, we expect to capitalize on the white space opportunities in our existing markets by adding new providers and monetizing the premium platform by adding and expanding ancillary services such as labs, imaging, pharmacy, and clinical research when and where it makes sense. We also plan to enter new states or geographic markets and then repeat steps one through three. And finally, we will be opportunistic in acquiring or investing in other service models that expand our platforms. It's important to spend a couple of minutes reviewing our approach to taking risk across many different value-based reimbursement models. First and foremost, Previa Health already participates in multiple value-based care programs across commercial, Medicare, Medicare Advantage, as well as Medicaid. In fact, our medical practices deliver care to more than 720,000 attributed value-based lives and more than 70 risk-based payer contracts today. We are already at scale. We will continue to grow attributed lives and move more of those lives into full risk arrangements over time. Our financial investments are closely aligned with our providers as we share upside and downside risk and we are executing on an intentional long-term plan to enable those providers to transition profitably to value-based care. One very important dynamic on our top line is that our practice collections and revenue dollars only reflect fee-for-service collections care management fees, and shared savings. Under our current partial risk contracts, we are not recognizing the full per member per month premium for our Medicare Advantage lives. We certainly expect this to change as we move more of these lives from partial to full risk arrangements. The Previa Health leadership team has decades of experience in managing and underwriting risk. We will remain focused on profitably transitioning practice to partial and full risk models within both existing and new markets. Let's move on to performance. We started 2021 with strong first quarter results that were at or above the high end of the estimated ranges we provided in April during our IPO process. On a year-over-year basis, practice collections increased 5.1%. Care margin was up 9.7%. and we continue to drive operating leverage through our Privia platform, which helped to deliver platform contribution and adjusted EBITDA growth of 26% and 41%, respectively. Our strong top-line performance in Q1 was generated through both our fee-for-service and value-based care models, of which we expect value-based care to grow faster as more lives move to partial and full risk. And as Parth will highlight, we are continuing to add attributed lives across a number of value-based programs while also continuing to grow organically and providers in our existing markets. As we achieve same-store growth, we are also executing on a number of growth initiatives to enter new markets and leverage our operating structure to drive margin expansion. Now I'll ask Parth to provide additional detail on our first quarter performance and outlook for the remainder of 2021. Parth?