agilon health (AGL) The 44th Annual William Blair Growth Stock Conference summary

Macro context and industry trends

• Demand for alternatives to fee-for-service in primary care is at an all-time high, driven by physician burnout and unsustainable economics.

• Structural support from policymakers and payers is accelerating the shift to value-based care.

• Market volatility and increased Medicare Advantage utilization are creating both challenges and opportunities for growth.

• The company’s model is positioned as a solution to variability and inefficiency in primary care delivery.

Business model and operational performance

• The Total Care Model enables primary care doctors to manage Medicare risk, improving access, quality, and cost outcomes.

• Demonstrated two to three times increase in annual wellness visits and quality scores above CMS thresholds.

• Significant reductions in hospitalizations, ER visits, and readmissions among senior patients.

• Peer-reviewed study showed a 65% reduction in hospital-based deaths and 33% lower total cost of care for palliative patients.

Growth, financial drivers, and action plan

• Operating in 30 markets with 2,400 PCPs and 635,000 senior patients, with strong membership and partner growth.

• ACO REACH business outperformed national benchmarks by 320 basis points in 2023.

• Mature member cohorts sustain attractive medical margins (~$150 PMPM), with newer cohorts showing positive progression.

• Ongoing action plan focuses on PCP support, payer partnerships, data integration, and operating efficiency.