Privia Health Group, Inc.

Thank you for standing by. My name is Max and I'll be your conference operator for today. At this time, I would like to welcome everyone to the Previa Health third 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. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Robert Portrait, SVP, Investor and Corporate Communications. Please go ahead.

Thank you, Max, and good morning, everyone. Joining me are Parth Marotra, our Chief Executive Officer, and David Mountcastle, our Chief Financial Officer. This call is being webcast and will be accessed in the Investor Relations section of PriviaHealth.com. Today's financial press release and slide presentation are posted on the Investor Relations pages of PriviaHealth.com. Following our prepared comments, we will open the line for questions. 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 are preliminary and are not final until our Form 10-Q for the third quarter ended September 30th, 2024 is filed with 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 November 7th, 2024. 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 along 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. Reconciliation of these measures to comparable GAAP measures are included in our press release and the accompanying slide presentation posted on our website. Now I'd like to hand the call over to our CEO, Parth Mehrotra.

Thank you, Robert, and good morning, everyone. Privia Health posted another strong quarter of financial performance as we continue to execute very well operationally and drive growth across all our markets. This morning, I'll cover some key highlights and provide a business update. Then David will discuss our recent financial performance and provide an update to our 2024 guidance outlook before we take your questions. During the third quarter, our momentum continued across all aspects of the business. In particular, implemented providers increased 13.1% and adjusted EBITDA was up 25.8% from a year ago as we drove operating leverage while investing in new markets. Our strong year-to-date performance and high visibility through the remainder of the year gives us confidence to increase guidance to at or above the high end of the initial range for all metrics. Our results continue to validate the success of our diversified, broad-based business in the current healthcare environment. CMS released 2023 results for the Medicare Shared Savings Program in late October, and Privia's accountable care organizations delivered another year of strong results. Our 10 ACOs in aggregate achieved shared savings of $176.6 million, a 34.1% increase from 2022. This success is a testament to the dedication and skill of our physicians who provide exceptional, high-value, cost-effective care to nearly 195,000 Medicare patients in the program. Our Q3 ending cash balance pro forma for the cash to be received for 2023 MSSP shared savings is approximately $473 million with no debt. This positions us well to support our organic growth, business development initiatives, and provides us with substantial financial flexibility. Today, we also announced our entry into the state of Indiana in partnership with a multi-specialty practice of more than 35 providers. We are excited to continue expanding our footprint and introducing the Privia business model to providers in the Midwest. Our pipeline for new market business development remains robust, coupled with a very strong balance sheet to deploy capital in the current environment. In addition, our growth team has delivered a record number of new provider signings in existing markets here to date, providing us with excellent visibility going into 2025. The strength of previous business model, strategy, and execution is validated by our consistent growth and operating performance over the past seven years, including the last four as a public company. This slide shows empirically how we have compounded growth across all key business and financial metrics, including free cash flow through a variety of macroeconomic conditions. From 2018 to 2024, we experienced a full economic cycle driven by COVID, two political administrations, and now a challenging Medicare Advantage and Medicaid environment. We have consistently balanced growth and profitability during the past seven years while building one of the largest ambulatory care delivery networks in the country. In addition, the deliberate breadth and diversification of our business model, partnering with every physician's specialty, seeing every patient in any reimbursement model with any payer, has helped us deliver consistent and sustainable results over time for both our medical groups and our shareholders. This foundation of our business model results in strong recurring revenue and EBITDA that we expect to continue to compound one quarter at a time for years to come. Privia continues to progress well towards our long-term vision to build one of the largest ambulatory care delivery networks in the nation. Our footprint comprises 4,642 implemented providers caring for over 5.1 million patients across 14 states and the District of Columbia. This highlights our ability to build large-scale, high-quality, community-based medical groups across every state we operate in. Our gross provider retention remains over 98%, and our net promoter score of 85 highlights our very high patient satisfaction. Privia now serves over 1.2 million attributed lives across 100-plus commercial and government programs. Total attributed lives increased 14% from Q3 a year ago, positioning Privia as a balanced and highly diversified value-based care organization. Commercial Attributed Lives increased 14% from last year to reach 770,000. Medicare Advantage Attributed Lives increased more than 24% from a year ago, and Attributed Lives in Medicaid programs increased 41.7% year over year. This growth in Attributed Lives across programs was driven by new provider growth and related patient attribution, as well as new value-based contracts in certain programs. The diversified nature of our value-based contracts across the risk spectrum is a core value proposition to our medical groups. This deliberate and flexible approach is key to driving consistent and sustainable future earnings growth. We are seeing real-time validation of this strategy in the current healthcare environment. Now, I'll ask David to review our 2023 MSSP performance, recent financial results, and our updated 2024 guidance outlook.