Investor Presentation
May 2024
Disclaimer
Forward-Looking Statements
This presentation contains forward-looking statements that express the Company's opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results that include, but are not limited to: 2023 financial guidance and other projections and forecasts. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company's control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in filings with the Securities and Exchange Commission ("SEC"), including those under "Risk Factors" therein. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Forward-looking statements speak only as of the date made. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Use of Non-GAAP Financial Information
In order to provide investors with greater insight, promote transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making, the Company supplements its condensed consolidated financial statements presented on a GAAP basis herein with certain non-GAAP financial information, including: Care Margin; Platform Contribution; Platform Contribution margin; Adjusted EBITDA; Adjusted EBITDA margin; Adjusted Net Income; Free Cash Flow and Net Cash Position. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in the financial schedules in the Appendix of this presentation, as well as in the Company's quarterly financial press releases and related Form 8-K filings with the SEC. This information can be accessed for free by visiting www.priviahealth.com or www.sec.gov.
Management has not reconciled forward-lookingnon-GAAP measures to its most directly comparable GAAP measure of Gross Profit, Operating Income, Net Income, and Net cash provided by operating activities. This is because the Company cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations due to market-related assumptions that are not within our control as well as certain legal or advisory costs, tax costs or other costs that may arise. For these reasons, management is unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures.
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Privia Health: Unique Physician Alignment Model
Proven, Full Solution Model with Experienced Executive and Physician Leaders
Scalable Nationally for All | Diverse & Balanced |
Provider Types, Patients & | FFS and VBC Platform |
Reimbursement Models | Across all Payers |
Multiple Growth Drivers | Highly Profitable, |
with Large Total | Capital-Efficient |
Addressable Market (TAM) | Profile |
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Access to Largest Total Addressable Market Opportunity
Privia Succeeds Across Reimbursement Environments and Payment Models
$322
~$1.9 trillion physician
enablement market
expected to grow at $1,062$398 6.4% CAGR
$114
Medicare Advantage Medicare FFS
Medicaid Commercial
Significant untapped TAM:
- 4,305 Privia implemented providers out of ~1 million total providers in the U.S.
- 4.8 million patients out of U.S. population of 340 million
Sources: Privia Health. Kaiser Family Foundation, Nephron Research. "The Dawn of Physician Enablement: Defining Healthcare in the 2020s." January 20, 2021. Statista. | 4 |
Building One of the Largest
Primary Care-Centric Delivery Networks
Washington
Montana
Connecticut
California
Ohio | ||
Mid-Atlantic | ||
Tennessee | ||
North Carolina | ||
North Texas | South Carolina | |
West Texas | Georgia | |
Gulf Coast | ||
Florida |
13 | 1,100+ | 4,359 |
States | Care Center | Implemented |
(plus D.C.) | Locations | Providers |
(Excludes 1,350 | ||
Privia Care Partners' | ||
providers) | ||
50+ | 4.9M+ | 1.14M |
Specialties | Patients | Attributed |
on Platform | Lives | |
(Includes ~200K | ||
Privia Care Partners' | ||
lives) |
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Consistent, Replicable Strategy Across all Geographies
Enter | Organize | Drive Growth & |
Market | Providers | Profitability |
Transition at Scale
to Value & Risk
- Single-TINmulti- specialty medical group or comparable entity
- Risk-bearingentity (Accountable Care Organization - ACO / Privia Care Partners)
- Privia tech & services platform
- Physician-ledgovernance
- Community physicians
- Health systems
- Clinically Integrated Networks (CINs)
- Independent Physician Associations (IPAs)
- Other facility-based providers
- Fee-For-Service(FFS) and Value- Based Care (VBC) practice operations
- Same-storegrowth
- Value-addedancillary services (e.g. lab, imaging, clinical research, etc.)
- Commercial
- MSSP
- Medicare / MA
- Medicaid
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Delivering Demonstrable Value to Our Providers and Payers
Value to Providers
- Enhanced fee-for-service contracts
- Expense savings
-
Collections improvement through robust
revenue cycle management - Enhanced provider productivity
- Incremental value-based care revenue
- Organic same store practice growth
Value to Payers | |
✔ | Large community-based,multi-specialty care |
delivery networks |
Ability to perform across the spectrum of
- value-basedcare models "at-scale"
Flexible value-based care strategy by ✔geography as demographics evolve over time
✔ Multi-year strategy to help community providers succeed and remain autonomous
Generating significant savings across
-
populations: Commercial, Medicare and
Medicaid
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Methodical Process Helps Providers Move Towards Value
12345
Practice | Enhanced | Fundamentals | Comprehensive | Advanced | |||||
Fundamentals | Experience | of Value | Care | Risk Model | |||||
Stabilize the practice to | Upgrade the patient | Execute on fundamentals | Take greater responsibility | Redesign practice to succeed | |||||
create a successful base | experience | of value-based care | for the totality of patient care | in mature value models | |||||
▪ EHR & Patient Portal | ▪ | Practice Websites | ▪ | Membership | ▪ | Expanded Access | ▪ | Capitation | |
▪ | Revenue Cycle | ▪ | Online Scheduling | ▪ | Quality | ▪ | Care Coordination | ▪ | Risk Positioning |
▪ | Payer Contracting | ▪ | Virtual Visits | ▪ | Clinical Documentation | ▪ | Network Management | ▪ | Delegated Services |
▪ | Performance Mgmt | ▪ | Patient Outreach | ▪ | POD Engagement | ▪ | Clinical Programs | ▪ | Network Contracting |
▪ | Reporting | ▪ | Satisfaction Surveys | ▪ | Performance Reports | ▪ | Social Determinants | ▪ | Home Care |
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Diversified Value-Based Platform Across Reimbursement Models 1
1.14 Million | 100+ |
Total Attributed Lives | VBC Contracts |
685K458K
- 68% Upside Only
- 32% Upside / Downside
Commercial | Government |
Lives | Lives |
197K | 171K | 90K |
MSSP | Medicare | Medicaid |
Advantage | ||
Lives | Lives | |
Lives | ||
• 77% in Enhanced Track | • 76% Upside Only | • 100% Upside Only |
with downside risk | • 15% Upside / Downside |
- 9% Capitation
1 All data estimated as of March 31, 2024. Any slight variations in totals due to rounding.
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Privia Has Extensive Experience in Managing Risk
"It's Called Risk for a Reason"
1 All data estimated as of January 1, 2024. For illustrative purposes only.
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Privia Health Group Inc. published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 15:40:04 UTC.