agilon health (AGL) investor relations material

Business model and operational focus

• Operates a primary care-centered, value-based care model with long-term partnerships, focusing on improving quality and lowering costs through capitated arrangements and shared savings with physicians.

• Currently partners with 2,200 primary care physicians across 12 states and 30 markets, serving both MA and ACO REACH members.

• Achieves 20%-30% reduction in admissions per thousand, lower ER and inpatient stays, and high star scores (4+), indicating strong quality performance.

• Enhanced data pipeline launched in Q1 2024, providing detailed, member-level cost and revenue data, improving cost prediction and risk adjustment accuracy.

• New clinical programs targeting high-acuity conditions rolled out in late 2024 and piloted in 2025, with plans for broader implementation in 2026.

Strategic priorities and financial management

• After doubling in size in 2024, the focus shifted to profitability, slowing growth and emphasizing cost control and right-sizing for a half-million-member base.

• Contracting efforts prioritize adequate compensation for risk and value delivered, with significant progress in reducing Part D risk exposure from 66% in 2024 to below 30% in 2025 and further reductions expected for 2026.

• Enhanced data pipeline enables more accurate reserving and risk score calculations, supporting better financial forecasting.

• Cost control and platform right-sizing are key initiatives for late 2024 and early 2025.

Payer relationships and contracting environment

• Strong demand from payers for the model, with constructive, high-level negotiations focused on aligning compensation with delivered value and risk.

• Success in negotiating improved contract terms, including data quality and Part D risk carve-outs.

• Payers are increasingly recognizing and rewarding superior quality performance, with more dollars tied to quality metrics.