Privia Health Group, Inc.

Good morning. My name is Dexter, and I will be your conference operator today. At this time, I would like to welcome everyone to the Phoebe Health Second Quarter Conference Call. 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. As a reminder, this conference is being recorded. And now, I would like to turn the call over to Mr. Robert Richard, SVB Investor and Corporate Communications. Please go ahead, sir.

Thank you, Dexter, and good morning. Joining me 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 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'll open the line for questions. We ask 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 410Q for the second quarter ended June 30th, 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 August 9th, 2021. Such statements, including those related to our future financial 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. Now I'll turn the call over to Sean.

Thank you, Robert. Good morning, everyone. I'll provide a brief performance summary and an update on our continued business momentum and success. Then I'll ask Park to offer a detailed review of our financial and operating performance and the outlook for the year before we take your questions. The Fairview Health Partnership Model continues to gain traction and greater awareness with our providers. This is underscored by our growth in both implemented providers and attributed lives across a number of value-based reimbursement programs since year-end 2020. This has helped propel our strong financial performance in the second quarter with practice collections increasing 30.3% to over $367 million and our care margin increasing 33.7% when compared with the second quarter of last year. We also continue to drive operating leverage through our platform with adjusted EBITDA growing 43% in the quarter. The strong year-to-date performance across all our service lines positions Previa Health very well for the remainder of the year. This is especially true given our diversified patient, provider, and payer mix against the backdrop of current utilization trends we see across partner practices. Underpending our top line growth is the continued expansion of provider partners in both existing markets and as we enter new markets. We expect our fees from value-based programs to grow faster than fee-for-service dollars as we continue to increase the number of patient lives attributed to at-risk reimbursement models and as more of these lives move from partial to full-risk arrangements over the coming quarters. One key update is that we have recently launched Privia Care Partners. This lighter version of our traditional model also partners with providers, meeting them where they are on their value-based journeys. and aids in transitioning their practices to specific value-based programs. This aligns perfectly with our capital-efficient operating structure and primary financial goal to drive significant operating leverage and profit margin expansion, which we expect to continue as we execute on multiple growth opportunities. As I noted, Preview Care Partners is our new flexible model that expands our current our opportunity to partner with the riders. As you can see on this slide, the primary difference between our traditional model and a lighter version is there's no need for provider groups to join our single tax ID medical group, no need for them to change electronic medical record vendors, and yet they can still participate in various high-value arrangements. Providers joining Preview Care Partners will be supported by a lighter version of our tech stack, advanced analytics to enhance their existing EHR system, a physician-led governance structure, and select NSO service to help them succeed in value-based care. Our focus with Preview Care Partners is to expand the Preview relationship to new physicians and grow value-based attributed lives in both existing and new markets. We expect the program will officially start on January 1, 2022, so we intend to provide additional details over the next two quarters. We continue to be optimistic about the significant opportunity as we expand our risk sharing arrangements across many value-based reimbursement models and taking a very thoughtful business approach in this effort. Previa Health already participates in more than 70 at-risk value-based care programs and payer contracts across commercial, Medicare, Medicare Advantage, and Medicaid. In fact, of our 739,000 attributed lives today, more than 140,000 are in the Medicare Shared Savings and the Maryland primary care programs in which we take both upside and downside risk. Importantly, our financial interests are closely aligned with our previous providers and that we jointly share in both the financial benefit and risk associated with these value-based care programs. In addition, our Medicare Advantage lives increased 13% sequentially to 102,000 at the end of the second quarter. We are already at scale and are executing on a deliberate, long-term plan to enable our providers to transition profitably to increased risk in value-based programs. We will continue to grow Attributed Lives and intend to move more of those lives into downside and full risk arrangements over time. An important point is our current top line reflects only fee-for-service collections, care management fees, and shared savings. Under our current partial risk contracts, we do not recognize the full per-member, per-month premium for our Medicare Advantage lives. The Preview Health leadership team has decades of experience in managing and underwriting risk, and we certainly expect to meet more of these attribute lives from partial to full risk arrangements. Now I'll ask Park to provide additional detail on our second quarter performance and outlook for the remainder of 2021. Park? Thanks, Shawn.