Alignment Healthcare (ALHC) Bank of America Global Healthcare Conference 2026 summary

Financial performance and guidance

• Achieved strong Q1 results and forecasted significant year-over-year improvements in Q2, including 60 bps MBR, 40 bps SG&A, and nearly 100 bps adjusted EBITDA improvement, with 80% EBITDA growth year-over-year.

• MBR step down between Q1 and Q2 is typical due to seasonality and Part D influences; this year's step down is larger but consistent when adjusted for specific factors.

• Trend remains stable across key cost categories, with clinical models providing strong visibility and control.

Operational strategy and technology

• Uses a bottoms-up data approach, aggregating member-level data for actionable insights and rapid response to variances.

• Emphasizes transparency, visibility, and control, with daily management meetings to address hotspots and negative variances.

• AVA tech stack is being rebuilt to leverage new AI and machine learning tools, aiming for improved MLR and G&A outcomes.

• Plans to deploy AI-first strategies, expecting dramatic operational improvements and competitive advantage.

Regulatory and industry environment

• 2027 rate notice was 2.5% better than preliminary due to delayed risk adjustment changes, benefiting near-term outlook.

• Ongoing uncertainty about timing and scope of risk model changes; focus may shift to program integrity and billing accuracy across the supply chain.

• Anticipates increased scrutiny on integrated delivery networks and hospitals for billing accuracy and margin alignment.