Privia Health Group, Inc.

Good morning and welcome everyone to the Freevia Health 2021 Third Quarter Conference Call. All lines have been placed on mute to prevent any background noise. There will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Now, I would like to turn the call over to our first presenter for today, Mr. Robert Borchert. SVP of Investor and Corporate Communication. Sir, you may begin the conference.

Thank you, Henry, and good morning, everyone. 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 PriviaHealth.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 10-Q for the third quarter ended September 30, 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 November 8, 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 statement to 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, and good morning, everyone. This past weekend, I had the privilege of spending time with more than 60 of our physician leaders from around the country. They came together to learn and share ideas with one another. They were all engaged and invigorated by their mutual desire for autonomy and to truly align with a partner that helps them deliver cost-effective, high-quality care to all their patients. Our Previa platform rewards them with this great care they deliver no matter the reimbursement structure, and I am honored to be a small part of the opportunity. Today, I'll provide an update on our combined business momentum and summarize our recent financial performance. Then Park will offer an in-depth review of our value-based care strategy and framework and close with an update on our financial outlook for the remainder of 2021 before we take your questions. We continue to see tremendous growth and momentum in our business. We delivered better than expected performance in our third quarter and year-to-date, and are raising guidance on all key metrics for the year 2021. We've also set new records for signed providers this year, both in existing markets and new markets. As Park will discuss later, our updated guidance for implemented providers at year-end implies a year-over-year growth rate of approximately 30% driven by these new additions. This is a leading indicator of an acceleration of our top line as we implement these providers in the coming months. We are also seeing record high provider retention year-to-date as we continue to demonstrate our ability to optimize workflow, reduce administrative burden, successfully transition to value-based care, and increase profitability for our physician partners. This supported our strong same-store growth in the third quarter, which was driven by the strength in ambulatory utilization across all our markets. On a seasonally adjusted basis, in-person visits were at or above our pre-COVID baseline and virtual visits were approximately 10% of total visits. This volume, as well as an increase in both implemented providers and value-based attributed lives, helped deliver top-line performance and solid margin expansion ahead of expectations this quarter. Ambulatory access and utilization is also a critical component in managing patient outcomes and driving success across our value-based care platform. Our balance and revenue diversity is a valuable attribute of our model. Another key component of our growth strategy is our active business development pipeline, in which we are in advanced discussions with many provider groups and health systems. In mid-October, we entered California with one of the San Francisco Bay Area's leading healthcare multi-specialty groups. Bass Medical Group has more than 400 providers, spanning 42 specialties in over 125 locations. We are very excited about our opportunity in California. a state with more than 28,000 primary care physicians and over 115,000 specialists. Our affiliation with Bass highlights Previa's ability to replicate our operating model in uniquely differentiated markets as we look to build scaled, high-performing provider networks nationwide. We also expanded our footprint in Texas through a partnership with the Abilene Diagnostic Clinic, a multi-specialty group with more than 30 providers. With the launch of Preview Medical Group West Texas, we now have a presence across the state, including our established markets in North and South Texas, which comprise over 600 providers today. PARCC will dive deeper into our value-based care programs, but I wanted to highlight our proven value-based care model continues to deliver excellent performance and results. With approximately 760,000 attributed lives and more than 70 at-risk contracts across all types of programs, The Privia Network is one of the largest value-based care platforms in our sector today. Over the last seven years, we've successfully built a care delivery network with deep clinical operations capabilities in partnership with physicians to maintain a high degree of influence over value-based care operations at scale. This gives us confidence that we will continue to be able to move providers and lives into at-risk contracts profitably for Privia as well as for our physician partners. We are also excited to share that Previa Care Partners were formally launched on January 1st of 2022 with more than 25,000 attributed lives. This is in partnership with over 300 providers in about 100 care center locations. Previa Care Partners increases our total addressable market as we now have a flexible and scaled solutions for health systems, IPAs, other independent providers, and ACOs, as well as clinically integrated networks who wish to remain on their existing EHR for the time being. This is exclusively a value-based care option for providers who will be supported by our integrated technology solution and clinical operation capabilities as they successfully transition to at-risk arrangements. Moving on to our third quarter performance, our operating momentum has continued to drive strong results. Our growth in newly implemented providers and value-based attributed lives combined with ambulatory patient volumes led to an 18.1% increase in practice collections compared to the third quarter a year ago. Care margin was up 31.5%, and our top-line outperformance in operating leverage drove margin expansions with adjusted EBITDA growth of almost 52% in the third quarter compared to the same period a year ago. On a year-to-date basis, practice collections was up more than 17%, care margin increased 24.5%, and adjusted EBITDA grew almost 46% over the first nine months of 2020. Our strong year-to-date performance and provider metrics position Preview Health very well for the remainder of the year and into 2022 as we work to capture a larger share of the almost $2 trillion physician-able market and growing value-based care opportunity. This momentum also gives us confidence that the previous partnership model continues to gain traction as a clear alternative for providers across the country looking to maintain their autonomy and be able to improve outcomes for their entire patient populations. We intend to continue to drive growth, and profitability by increasing same-store growth and attribution in risk-based contracts, adding new providers, opening new markets, and identifying opportunities to expand our platform. Now I'll ask Park to provide a value-based care update as well as details on the outlook for the remainder of 2021. Thank you.