P3 Health Partners (PIII) investor relations material

Business overview and market opportunity

• Operating in four states with 120,000 full-risk lives and 2,800 primary care providers under 18 payer contracts.

• Focused on transforming senior healthcare and driving towards profitability.

• Addressable market of 2 million lives within current geographies, with significant growth potential in Arizona, Nevada, Oregon, and California.

• Value-based care demand is increasing, with Medicare Advantage penetration rising from 35% in 2017 to 54% in 2025.

• Industry consolidation and payer margin pressures are creating new partnership and growth opportunities.

Business model and operational strategy

• Operates a fully delegated, full-risk model across Medicare Advantage and ACO REACH, with a preference for full delegation.

• Utilizes a value-based care platform with data analytics, care management tools, and provider engagement to improve outcomes and lower costs.

• Focuses on building strong physician relationships, aligning incentives, and embedding operational support in practices.

• Expanding into ACO REACH with 17,000 members, increasing panel density and value creation.

• Adapts solutions to local market needs, differentiating from competitors' one-size-fits-all approaches.

Financial performance and improvement initiatives

• Achieved $130 million EBITDA improvement through operational efficiencies and contract rationalization; $70 million in revenue optimization ongoing for 2025.

• Identified $120–$170 million additional EBITDA improvement opportunities for 2026, focusing on operational performance, quality, and network management.

• Durable and scalable $10 million savings from hospice and palliative care initiatives across multiple markets.

• Guidance for 2025: adjusted EBITDA range of -$69 million to -$39 million, with revenue between $1.35 billion and $1.5 billion.

• Oregon remains the only unprofitable market, with breakeven targeted for 2026 through collaborative payer efforts.