Astrana Health (ASTH) investor relations material

Business performance and growth

• Achieved over 50% year-over-year growth last year, with continued profitability and strong free cash flow; Q1 results exceeded expectations, with free cash flow tripling and revenue growing over 40%-50%.

• Recent acquisition of Prospect closed nine months ago, with integration ahead of schedule and operational synergies tracking at the high end of the $12M-$15M range.

• Integrated 1,500+ employees and 600,000 members from Prospect into a unified operating and data platform, eliminating silos and standardizing care protocols.

• Revenue synergies realized by combining payer contracts and improving cost trends, with Prospect’s medical cost trend improving faster than underwritten expectations.

• Early impact from care model integration is visible, with full benefits expected over 18-24 months.

Operational and technology strategy

• Unified data and application layers enable seamless care management, preventing patients from falling through the cracks and automating follow-ups.

• AI and automation tools are built on a unified data substrate, allowing agents to act across the enterprise and streamline provider and payer workflows.

• Provider-facing tools integrate quality, risk adjustment, and claims management, enabling real-time prior authorization and appointment scheduling.

• AI-driven automation has led to 70% of prior authorizations being auto-approved within seconds, reducing administrative burden and improving patient access.

• Automated care transition and follow-up processes help reduce readmissions and escalate cases to human teams when needed, contributing to a 70 basis point G&A improvement in Q1.

Market and regulatory environment

• Medicare Advantage medical cost trend underwritten at 5.2% for the year, with actual performance better than expected across all lines of business.

• Minimal impact from CMS changes to risk adjustment due to low reliance on unlinked chart reviews and audio-only calls; estimated 1.5% headwind versus 2.5% industry average if new rules are implemented.

• Anticipates margin-neutral to margin-accretive years ahead, with further insulation from regulatory changes due to business model and coding practices.

• Supports CMS’s move toward AI-driven risk adjustment models, expecting potential benefit from reduced coding burden and fairer payments.

• Suggests using Medicare Advantage claims data for risk adjustment coefficients to better reflect actual provider and patient behavior.