Privia Health Group, Inc.

Good day, and thank you for standing by. Welcome to the Privia Health Q4 2022 conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone, and then hear an automated message advising your hand is raised. To withdraw your question, press star 11 again. Please be advised that the conference is being recorded. I'd now like to hand the call Back over to our speaker today, Robert Burchard, SVP of Investor and Corporate Communications.

Thank you, Gerald, and good morning, everyone. Joining me today 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 and a slide presentation accompanying our former remarks, are posted on the Investor Relations section of PriviaHealth.com. Following our prepared comments, we will open the line for questions. Given the number of analysts in the queue, we ask that you please limit yourself to one question only and return to the queue if you have a follow-up so we can get to as many questions as possible. The financial results reported today and in the press release are preliminary and are not final until our Form 10-K for the year ended December 31st, 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 view of our business as of February 28, 2023. 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 a tremendous year of financial and operating performance in 2022. We continue to extend our geographic reach, positively impact care delivery in partnership with more than 3,600 providers and Previa Medical Group, and an additional 1,400 providers and PreviaCare partners. This market momentum and highly aligned partnership model continues to be driven by growth on multiple fronts supporting our high level of confidence in our business outlook for 2023. We expect to continue to increase our number of provider partners, expand attributed lives in at-risk value-based arrangements, and grow our presence in the new markets we've recently entered. This morning, I'll review a number of key business highlights. David will discuss our recent financial performance and our 23 guidance outlook, and Mark will offer a market and operational update before we take your questions. Throughout 2022, Preview Health executed and delivered at a very high level with full year for financial performance at or above the high end of our updated guidance provided in November. Practice collections increased more than 49% year-over-year to reach $2.42 billion, and adjusted EBITDA was up more than 47% to a record $61 million. Our consistent performance was driven by a healthy balance of same-store growth, new provider additions in existing markets, and strength in ambulatory and value-based utilization across all of our existing practice locations. We've entered a number of new states in the last few months. North Carolina and Ohio offer abundant opportunities to attract new providers to our medical group platform. More recently, we've entered Connecticut and Delaware with our Previa Care Partner Strategy, offering community physicians an opportunity to join Previa and leverage our platform solutions and population health expertise while caring for patients across all reimbursement models. Our entry into these four states validates our growth algorithms, significantly expanding our addressable market and organic growth opportunity and our significant steps toward our long-term goal to build one of the largest care delivery networks in the nation. We continue to see very strong sales pipeline of potential new providers across our existing markets and are maintaining a healthy business development pipeline as we look to continue to enter new states over the next few years. We now have more than 100 value-based care arrangements with payers in commercial, Medicare, Medicare Advantage, and Medicaid plans, and we continue to see very strong performance across the board. A year ago, we initially moved 23,000 Medicare beneficiaries into our first capitated agreements. Beginning January 1st of 2023, we now have over 40,000 capitated lives, an increase of more than 38% from the year end 2022. Overall, we now have approximately 1.1 million attributed lives covered by our value-based care arrangements from upside only to significant downside risk. This aligns perfectly with our long-term strategy to thoughtfully move providers and their patients to value-based arrangements when we are confident we can be more successful doing so. Our business momentum and high forward visibility is driving our 2023 financial guidance. With practice collections expected to reach $2.7 billion or higher, we will continue to invest significantly across our enterprise to support our long-term growth and market expansion goals and still expect strong, adjusted EBITDA growth and free cash flow conversion. Now I'll ask David to review our recent financial results and 23 outlook.