Privia Health Group, Inc.

Good day and thank you for standing by. Welcome to the Previa Health Q2 2022 conference call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question and answer session. And to ask a question, you will need to press star 1 on your cell phone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Robert Borchardt, SVP of Investor and Corporate Communications. Please go ahead.

Thank you, Kyle, and good morning, everyone. Joining me today are Sean Morris, our Chief Executive Officer, Partha 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 and the slide presentations accompanying our former remarks are posted on the investor relations pages of privyhealth.com. Following our prepared comments, we will open the line for questions, and we ask that you please limit yourself to one question and one follow-up so that 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 quarter ended June 30th, 2022 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 11, 2022. 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. Now, I'll turn the call over to Sean.

Thank you, Robert, and good morning, everyone. Privia Health delivered another strong quarter of growth, and our highly aligned provider partnership model continues to gain momentum, highlighted by our 31.5% growth of implemented providers from a year ago. We expect to continue expanding our number of provider partners, increase distributed lives, and enter new markets over the coming quarters while also driving profit margin expansion by leveraging our capital-efficient operating structure. We are executing on multiple opportunities to extend our market reach, drive future growth, and positively impact care delivery. With continued momentum, In existing markets, we remain highly confident in our growth outlook for 2022 and beyond as we continue to organize physicians into scaled networks across our country. This morning, I'll present an overview of key business highlights, and then David will discuss our recent financial performance and updated outlook for 2022 before we take off for your questions. Privia Health is continuing to execute at a very high level. Practice collections increased more than 67% in the second quarter, reaching over $615 million. We generated a record quarter of $15.5 million in adjusted EBITDA of 55% when compared to the second quarter last year, showing the scale of our operating model while we continue to invest across our enterprise to support this accelerated top-line growth. This business momentum and high forward visibility into our growth metrics is reflected in our updated financial guidance for 2022. Our balance growth is being driven by continued same-store growth in street and ambulatory utilization across all our existing practice locations. We generated another solid quarter of new provider additions in existing markets in combination with a sustained high level of provider retention. In addition, our business development pipeline remains robust as we look to enter many new markets over the next few years. On an industry note, in early July, CMS released the proposed 2023 Medicare Physician Fee Schedule Rule. Overall, we believe the proposals are net positive for Previa. In particular, CMS made a significant endorsement of the Medicare Shared Savings Program and some of the changes positively impact both Previa providers and their patients. CMS has been vocal in their support having recently said it wants to use MSSP as a chassis for growth and care transformation. Launched 10 years ago, the Medicare Shared Savings Program now serves 11 million patients across 525,000 providers. The structure of the program has evolved over the last five to seven years into one of the most successful CMS and CMMI programs. We continue to prove our success in the program by lowering costs and improving outcomes, thereby generating shared savings for CMS, as well as for Privia and our provider partners. As I noted, our business momentum has continued to be extremely encouraging across both existing and potential new geographies. Our national footprint now includes more than 3,500 implemented providers, caring for over 3.9 million patients in more than 890 locations across eight states and the District of Columbia. Our scale and geographic density is also defined by their breadth of medical specialties. As I noted last quarter, while approximately 60% to 65% of our practice partners are primary care focused, including internal medicine, family practice, pediatrics, and OBGYNs, we actually partner with over 50 specialty types. This enables us to offer our primary care providers and our payer partners, as well as consumers, a broad ambulatory care delivery network that can improve patient outcomes and reduce costs across the value-based care spectrum. Our operating model and strategy has led Privia to have one of the broadest, most balanced, and well-diversified value-based care platforms in the industry. Our more than 80 at-risk contracts now cover approximately 856,000 attributed lives across commercial, Medicare, and Medicaid programs. This is up 15.8% from a year ago, giving us a lot of momentum and visibility in the remainder of 2022. As you know, we take upside and downside risk in many of our payer contracts, covering nearly two-thirds of our attributed Medicare lives across our MSSP and Medicare Advantage programs. This thoughtful move to risk continues to provide significant opportunities for top-line and EBITDA growth as we execute on our goals to earn greater shared savings in the years to come. Now I'll ask David to review our recent financial results and updated 2022 outlook.