Q2 2024 NeueHealth Inc Earnings Call

Good morning all and welcome to the NeueHealth Q2 2024 Earnings Call. My name is Carly and I'll be your call coordinator today.

Carly: My name is Carly, and I'll be your cool coordinator today.

Carly: I would like to hand over to your host, Emily Lombardi.

Carly: Please again.

I would like to hand over to your host, Emily Lombardi.

Emily Lombardi: Good morning, and welcome to NeueHealth's second quarter 2024 earnings conference call. As a reminder, this call is being recorded. This call may contain forward-looking statements under U.S. Federal security laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the risk factors in our current and periodic reports we file with the SEC. Except is required by law. We undertake no obligation to revise or update any forward-looking statements or information.

Speaker Change: Peace again.

Emily Lombardi: Good morning and welcome to NeueHealth's second quarter 2024 earnings conference call. As a reminder, this call is being recorded.

Speaker Change: Leading the call today are NeueHealth's President and CEO , Mike Mikan, and CFO , Jay Matushak.

Speaker Change: Before we begin, we want to remind you that this call may contain forward-looking statements under U.S. federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations.

Operator: A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the risk factors in our current and periodic reports that we file with the FEC. Except as required by law, we undertake no obligation to revise or update any forward-looking statements or information. This call will also reference non-GAAP amounts, and information presented on this call is contained in the earnings release that we issued this morning in our Form 8K dated August 7, 2024, and in the related presentation, each of which may be accessed from the investor relations page of the company's website. With that, I will now turn the conference over to NeueHealth Chief Executive Officer, Mike Mikan. Good morning.

Speaker Change: A description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the risk factors in our current and periodic reports we file with the FEC.

Speaker Change: Accept as required by law, we undertake no obligation to revise or update any forward-looking statements or information.

Emily Lombardi: This call will also reference non-GAAP amounts and measures. The reconciliation of the non-GAAP to GAAP measures is available in the company's second quarter earnings release available in the company's Investor Relations page at investors.newhealth.com.

Speaker Change: This call will also reference non-GAAP amounts and measures.

Speaker Change: A reconciliation of the non-gap-to- GAAP measures is available in the company's second quarter earnings release, available on the company's investor relations page at investors.neuehealth.com.

Emily Lombardi: Information presented on this call is contained in such earnings release that we issued this morning in our form 8-K, dated August 7, 2024, and in the related presentation, each of which may be accessed from the investor relations page of the company's website.

Speaker Change: Information presented on this call is contained in such earnings release that we issued this morning in our form 8k dated August 7th

Speaker Change: 2024, and in a related presentation, each of which may be accessed from the investor relations page of the company's website. With that, I will now turn the conference over to NeueHealth Chief Executive Officer Mike Mikan.

Mike Mikein: With that, I will now turn the conference over to NeueHealth's Chief Executive Officer, Mike Mikein. Good morning, everyone, and thank you for joining NeueHealth's second quarter 2024 earnings call. NeueHealth delivered solid results in the second quarter, as we continue to drive value for consumers, providers, and payers across the health care industry. On June 24, we announced that we secured up to $150 million in a new-term loan facility with Hercules Capital. This significantly strengthens our capital positions and underscores our ability to deliver high-quality, affordable health care to all populations. We are excited to have Hercules support and believe we are well-positioned to continue to drive long-term, sustainable growth in 2024 and beyond.

Mike Mikan: Good morning, everyone, and thank you for joining NeueHealth's second quarter 2024 earnings call. NeueHealth delivered solid results in the second quarter, as we continue to drive value for consumers, providers, and payers across the healthcare industry. On June 24th, we announced that we secured up to $150 million in a new term loan facility with Hercules Capital.

Mike Mikan: Good morning, everyone, and thank you for joining NeueHealth's second quarter 2024 earnings call. NeueHealth delivered solid results in the second quarter as we continue to drive value for consumers, providers, and payers across the healthcare industry.

Mike Mikan: On June 24th, we announced that we secured up to $150 million in a new term loan facility with Hercules Capital.

Mike Mikan: This significantly strengthens our capital position and underscores our ability to deliver high-quality, affordable health care to all properties. We are excited to have Hercules' support and believe we are well positioned to continue to drive long-term sustainable growth in 2024 and beyond. Throughout the second quarter, we continued to advance our value-driven, consumer-centric care model, which we believe uniquely aligns interests clinically, financially, and through data and technology to create a seamless, more coordinated healthcare experience for all populations.

Mike Mikan: This significantly strengthens our capital position and underscores our ability to deliver high quality, affordable health care to all populations.

Mike Mikan: We are excited to have Hercules support and believe we are well positioned to continue to drive long-term sustainable growth in 2024 and beyond.

Mike Mikein: Through all the second quarter, we continue to advance our value-driven, consumer-centric care model, which we believe uniquely aligns interest clinically, financially, and through data and technology to create a seamless, more coordinated healthcare experience. We are confident in our model and its ability to drive better health outcomes for all populations.

Mike Mikan: Throughout the second quarter, we continued to advance our value-driven, consumer-centric care model, which we believe uniquely aligns interests clinically, financially, and through data and technology to create a seamless, more coordinated healthcare experience.

Mike Mikan: We are confident in our model and its ability to drive better health outcomes for all populations.

Mike Mikein: I'll start by mentioning a few reasons why we believe our model is well-positioned for the future. First, we believe our value-driven care model is carefully designed to improve upon traditional approaches to care delivery, which have revolved around episodic encounters and led to costly, fragmented care. In contrast, our model is grounded in the power of long-standing relationships. We believe we are building trusted, ongoing relationships with our consumers in the local communities we serve and fostering strong partnerships with payers and providers across the country.

Mike Mikan: I'll start by mentioning a few reasons why we believe our model is well positioned for the future. First, we believe our value-driven care model is carefully designed to improve upon traditional approaches to care delivery, which have revolved around episodic encounters and led to costly, fragmented care. In contrast, our model is grounded in the power of long-standing relationships.

Mike Mikan: I'll start by mentioning a few reasons why we believe our model is well positioned for the future.

Mike Mikan: First, we believe our value-driven care model is carefully designed to improve upon traditional approaches to care delivery, which have revolved around episodic encounters and led to costly, fragmented care.

Mike Mikan: In contrast, our model is grounded in the power of long-standing relationships.

Mike Mikan: We believe we are building trusted, ongoing relationships with our consumers in the local communities we serve and fostering strong partnerships with payers and providers across the country. By doing so, we believe we have established trust and confidence with stakeholders throughout the healthcare industry, and we expect to continue to build upon these relationships in the years to come. Second, our model is built to serve all populations and partner with a diverse set of providers. We continue to believe this model demonstrates our ability to effectively manage populations across product categories.

Mike Mikan: We believe we are building trusted, ongoing relationships with our consumers in the local communities we serve, and fostering strong partnerships with payers and providers across the country.

Mike Mikein: District. By doing so, we believe we have established trust and confidence with stakeholders throughout the healthcare industry, and we expect to continue to build upon these relationships in the years to come. Second, our model is built to serve all populations and partner with the diverse set of providers. In the second quarter, we served over 477,000 consumers across the ACA marketplace, Medicare, and Medicaid. We continue to believe this model demonstrates our ability to effectively manage populations across product categories, delivering personalized care no matter the need or circumstance. In addition to serving a diverse consumer base, we partner with the diverse set of providers.

Mike Mikan: By doing so, we believe we have established trust and confidence with stakeholders throughout the healthcare industry, and we expect to continue to build upon these relationships in the years to come.

Mike Mikan: Second, our model is built to serve all populations and partner with a diverse set of providers. In the second quarter, we've served over 477,000 consumers across the ACA marketplace, Medicare, and Medicaid.

Mike Mikan: We continue to believe this model demonstrates our ability to effectively manage populations across product categories, delivering personalized care no matter the need or circumstance.

Mike Mikan: In addition to serving a diverse consumer base, we partner with a diverse set of providers across our new care and new solutions business segments, no matter where they are on their path to taking risks. Overall, we see our diverse and balanced portfolio as key to expanding our value-based footprint in the future, while mitigating risks associated with high concentrations in any one area. Finally, we believe our model is well-positioned for the future as it places the consumer at the center of everything we do.

Mike Mikan: In addition to serving a diverse consumer base, we partner with a diverse set of providers.

Mike Mikein: Across our new care and new solutions in the business segments, we continue to partner with providers through our own clinics in Florida and Texas, as well as affiliated providers across the country as we enable them to succeed in performance-based arrangements. We have deep experience working with a broad variety of provider groups, no matter where they are on their path to taking risks. Overall, we see our diverse and balanced portfolio as key to expanding our value-based footprint in the future, while mitigating risk associated with high concentrations in any one area. Finally, we believe our model is well positioned for the future as it places the consumer at the center of everything we do.

Mike Mikan: Across our new care and new solutions business segments, we continue to partner with providers through our own clinics in Florida and Texas, as well as affiliated providers across the country as we enable them to succeed in performance-based arrangements.

Mike Mikan: We have deep experience working with a broad variety of provider groups, no matter where they are on their path to taking risks.

Mike Mikan: Overall, we see our diverse and balanced portfolio as key to expanding our value-based footprint in the future, while mitigating risks associated with high concentrations in any one area.

Mike Mikan: Finally, we believe our model is well positioned for the future as it places the consumer at the center of everything we do.

Mike Mikein: We are focused on taking a proactive approach to consumer engagement, which is reflected in our commitment to understanding each consumer holistically, developing personalized care plans, and maintaining an ongoing relationship throughout the consumer's entire healthcare journey. We are partners in care, and this is reflected in every interaction we have with our consumers. As our model continues to drive strong results, we are carefully evaluating strategic growth opportunities, many of which continue to surface organically from existing partnerships and the relationships we have formed across the industry. We have a robust pipeline in place for 2025 and beyond as we continue to review capital-efficient opportunities to expand our payer and provider partnerships and grow the consumers we serve in both current and new geographies.

Mike Mikan: We are focused on taking a proactive approach to consumer engagement, which is reflected in our commitment to understanding each consumer holistically, developing personalized care plans, and maintaining an ongoing relationship throughout the consumer's entire health care journey. We are partners in care, and this is reflected in every interaction we have with our customers. As our model continues to drive strong results, we are carefully evaluating strategic growth opportunities, many of which continue to surface organically from existing partnerships and the relationships we have formed across the industry.

Mike Mikan: We are focused on taking a proactive approach to consumer engagement.

Mike Mikan: which is reflected in our commitment to understanding each consumer holistically, developing personalized care plans, and maintaining an ongoing relationship throughout the consumer's entire health care journey.

Mike Mikan: We are partners in care, and this is reflected in every interaction we have with our consumers.

Mike Mikan: As our model continues to drive strong results, we are carefully evaluating strategic growth opportunities, many of which continue to surface organically from existing partnerships and the relationships we have formed across the industry.

Mike Mikan: We have a robust pipeline in place for 2025 and beyond, as we continue to review capital efficient opportunities to expand our payer and provider partnerships and grow the consumers we serve in both current and new geographies. In the second quarter, NeueHealth delivered enterprise-adjusted EBITDA of $4 million.

Mike Mikan: We have a robust pipeline in place for 2025 and beyond, as we continue to review capital-efficient opportunities to expand our payer and provider partnerships and grow the consumers we serve in both current and new geographies.

Mike Mikein: In the second quarter, new health delivered enterprise adjusted EBITDA of $4 million. Overall, we believe our differentiated care model positions us to continue to drive strong results for the remainder of 2024 and beyond.

Mike Mikan: In the second quarter, NeueHealth delivered enterprise-adjusted EBITDA of $4 million.

Mike Mikan: Overall, we believe our differentiated care model positions us to continue to drive strong results for the remainder of 2024 and beyond. I'll now provide a brief update on our new care and new solutions business segment. In our new care segment, positive momentum continued in the second quarter as we delivered segment-adjusted EBITDA of $13.5 million. We are prioritizing engaging all consumers and delivering consumer-centric care that's tailored to meet specific needs, preferences, and circumstances.

Mike Mikan: Overall, we believe our differentiated care model positions us to continue to drive strong results for the remainder of 2024 and beyond.

Mike Mikein: I will now provide a brief update on our new care and new solutions business segments. In our new care segments, positive momentum continued to the second quarter, as we delivered segment adjusted EBITDA of $13.5 million. We are prioritizing engaging all consumers and delivering consumer-centric care that tailor to meet specific needs, preferences, and circumstances. In our clinic, we demonstrated resilience and strength in the wake of several severe storms impacting Tactics and Florida over the past several months. Aligned with our Consumer Center to Approach to Care, our teams came together to ensure consumers are patient, continue to receive the care they needed, helping to coordinate appointment and telehealth visit and keeping the patient at the center of all we do.

Mike Mikan: I'll now provide a brief update on our new care and new solutions business segments.

Mike Mikan: In our new care segment, positive momentum continued in the second quarter as we delivered segment-adjusted EBITDA of $13.5 million.

Mike Mikan: We are prioritizing, engaging all consumers, and delivering consumer-centric care that's tailored to meet specific needs, preferences, and circumstances.

Mike Mikan: In our clinics, we demonstrated resilience and strength in the wake of several severe storms impacting Texas and Florida over the past several months. I am proud of our team and their dedication to delivering high-quality care no matter the circumstances. New Solutions continues to focus on partnering with providers and enabling them to thrive in performance-based arrangements through our suite of population health tools and capabilities, as well as driving results through our participation in ACO REITs.

Mike Mikan: In our clinics, we demonstrated resilience and strength in the wake of several severe storms impacting Texas and Florida over the past several months.

Mike Mikan: Aligned with our consumer-centric approach to care, our teams came together to ensure consumers, our patients, continue to receive the care they needed, helping to coordinate appointments and telehealth visits, and keeping the patient at the center of all we do.

Mike Mikein: I am proud of our teams and their dedication to delivering high quality care, no matter the circumstances. New solutions continue to focus on partnering with providers and enabling them to thrive in performance-based arrangements through our suite of population health tools and capabilities, as well as driving results through our participation in ACO REACH. Our provider enablement business served approximately 113,000 consumers in the second quarter. This exceeded our expectations, and we believe it shows the value we are bringing to providers and their confidence in our ability to help them navigate the industry's shift to value-based care. We believe the strong relationships we are building with providers in this part of our business continue to offer an avenue for future growth opportunities across our new care and new solutions business segments.

Mike Mikan: I am proud of our teams and their dedication to delivering high quality care, no matter the circumstance.

Speaker Change: New Solutions continues to focus on partnering with providers and enabling them to thrive in performance-based arrangements through our suite of population health tools and capabilities, as well as driving results through our participation in ACO REACH.

Mike Mikan: Our provider enablement business served approximately 113,000 consumers in the second quarter. This exceeded our expectations, and we believe it shows the value we are bringing to providers and their confidence in our ability to help them navigate the industry's shift to value-based care.

Speaker Change: Our provider enablement business served approximately 113,000 consumers in the second quarter.

Speaker Change: This exceeded our expectations, and we believe it shows the value we are bringing to providers and their confidence in our ability to help them navigate the industry's shift to value-based care.

Speaker Change: We believe the strong relationships we are building with providers in this part of our business continue to offer an avenue for future growth opportunities across our new care and new solutions business segments.

Mike Mikein: In our ACO Reach business, we drove strong performance, consistent with our expectations in the second quarter as we maintain our focus on key care management, patient engagement, and health equity initiatives to deliver high quality care to our Medicare beneficiaries.

Speaker Change: In our ATO REACH business, we drove strong performance, consistent with our expectations in the second quarter as we maintain our focus on key care management, patient engagement, and health equity initiatives to deliver high-quality care to our Medicare beneficiaries.

Jay Matushak: I'll now hand it over to Jay to write additional details on the second quarter financial results.

Speaker Change: I'll now hand it over to Jay to provide additional details on the second quarter financial results.

Jay Matushak: Thank you, Mike, and good morning, everyone. I'll start by reviewing our second quarter financial performance for our consolidated new health business as well as each of our new care and new solution segments. And I'll briefly touch on the wind down of our ACA insurance business and go over our value sheet.

Mike Mikan: Let's start by reviewing our second quarter financial performance for our consolidated NeueHealth business, as well as each of our new care and new solutions segments. Finally, I'll review our 2024 outlook.

Jay Matushak: Thank you Mike and good morning everyone. I'll start by reviewing our second quarter financial performance for our consolidated new health business as well as each of our new care and new solution segments. Then I'll briefly touch on the wind down of our ACA insurance business and go over our balance sheet.

Jay Matushak: Finally, our review, our 2024 outlook. As a reminder, I will be focusing on the 2024 financial results of our continuing new health business in each of our new care and new solution segments.

Mike Mikan: As a reminder, I will be focusing on the 2024 financial results of our continuing NeueHealth business in each of our new care and new solution segments. Gap financials are included in our earnings release and contain results that include our discontinued operations. NeueHealth consolidated revenue for the second quarter was $226 million, and it delivered adjusted EBITDA of $4 million in the second quarter, serving approximately 477,000 consumers across its new care and new solutions business segment.

Jay Matushak: Finally, I'll review our 2024 Outlook.

Jay Matushak: As a reminder, I will be focusing on the 2024 financial results of our continuing NeueHealth business in each of our New Care and New Solutions segments.

Jay Matushak: Gap financials are included in our earnings release and contain results that include our discontinued operations. New health consolidation revenue for the second quarter was 226, with gross margin of 48.3 million. New health delivered adjusted EBITDA of 4 million in the second quarter, serving approximately 477,000 consumers across our new care and new solutions business segments. This is a modern increase in consumer service over the first quarter, and we continue to expect to generate increased growth in the second half of the year.

Jay Matushak: GAAP financials are included in our earnings release and contain results that include our discontinued operations.

Jay Matushak: NeuHealth consolidated revenue for the second quarter was $226 million, with a growth margin of $48.3 million.

Jay Matushak: NeuHealth delivered adjusted EBITDA of $4 million in the second quarter, serving approximately 477,000 consumers across our New Care and New Solutions business segment.

Mike Mikan: This is a moderate increase in consumers served over the first quarter, and we continue to expect to generate increased growth in the second half of the year. We are reaffirming our expectation for full-year adjusted EBITDA of between $15 million and $25 million. Starting in the third quarter, we have contracts in place with payer partners that are expected to increase our clinic volume and drive further growth in the third and fourth quarters.

Jay Matushak: This is a moderate increase in consumers served over the first quarter, and we continue to expect to generate increased growth in the second half of the year.

Jay Matushak: We are reaffirming our expectation for full year adjusted EBITDA of between 15 million and 25 million. Turning now to our new care segment in the second quarter, new care revenue was 77 million, in line with our expectations. Starting in the third quarter, we have contracts in place with pair partners that are expected to increase our clinic volume and drive further growth in the third and fourth quarters. In the second quarter, new care operating costs were higher than expected due to a long-lived acid impairment expense tied to classifying our associates, MD clinics as help for sale.

Jay Matushak: We are reaffirming our expectation for full year adjusted EBITDA of between $15 million and $25 million.

Jay Matushak: Turning now to our new care segment. In the second quarter, new care revenue was $77 million, in line with our expectations.

Jay Matushak: Starting in the third quarter, we have contracts in place with payer partners that are expected to increase our clinic volume and drive further growth in the third and fourth quarters.

Mike Mikan: In the second quarter, new care operating costs were higher than expected due to a long-lived acid impairment expense tied to classifying our associates MD clinics as held for sale. Excluding this adjustment, new care operating costs were in line with expectations, and new care operating income was $8.5 million for the second quarter. Including the long-lived acid impairment expense, new care operating loss was $5.5 million for the quarter. In our new solutions segment, revenue was $152.1 million in the second quarter. Second quarter operating costs were in line with expectations, with medical costs moderately lower. The new solution segment operating loss was $397,000 for the second quarter.

Jay Matushak: In the second quarter, new care operating costs were higher than expected due to a long-lived acid impairment expense tied to classifying our associates' MD clinics as held for sale.

Jay Matushak: This is immaterial to our business overall, and we will continue to partner with our associates, MD clinics, to our affiliate business moving forward.

Jay Matushak: This is immaterial to our business overall, and we will continue to partner with our associate MD clinics through our affiliate business moving forward. Excluding this adjustment, new care operating costs were in line with expectations, and new care operating income was $8.5 million for the second quarter.

Jay Matushak: in the second quarter. Excluding the adjustment, NewCare operating costs were in line with expectations, and NewCare operating income was $8.5 million for the second quarter. Including the long-lived accident-traumatic expense, NewCare operating loss was $5.9 million for the quarter. In our New Solutions segment, revenue was $152.1 million in the second quarter. Second quarter operating costs were in line with expectations, with medical costs and moderately lower. New Solutions segment operating loss was $397,000 for the second quarter.

Jay Matushak: Including the long-lived acid impairment expense, new care operating loss was $5.9 million for the quarter.

Jay Matushak: In our new solution segment, revenue was $152.1 million in the second quarter. Second quarter operating costs were in line with expectations with medical costs moderately lower. New solution segment operating loss was $397,000 for the second quarter.

Jay Matushak: Our ACO Reach business continues to deliver a strong performance in line with our expectations, and we are pleased with the progress we are making in this part of our business in the first half of the year with the strong portfolio of Align Provider partners. On the provider enablements side of new solutions, we are generating strong results with our capabilities and expertise in performance-based arrangements, citing value for the provider partners across the country. In the second quarter, we served approximately 113,000 consumers through this business, exceeding our expectations. We look forward to continuing to build relationships with providers, no matter where they are on their path to participating in performance-based arrangements.

Mike Mikan: Our ACO REACH business continues to deliver strong performance, in line with our expectations, and we are pleased with the progress we are making in this part of our business in the first half of the year with a strong portfolio of aligned provider partners. On the provider enablement side of new solutions, we are generating strong results with our capabilities and expertise in performance-based arrangements, providing value for our provider partners across the country.

Jay Matushak: Our ACO REACH business continues to deliver strong performance, in line with our expectations, and we are pleased with the progress we are making in this part of our business in the first half of the year with a strong portfolio of aligned provider partners.

Jay Matushak: On the provider enablement side of new solutions, we are generating strong results with our capabilities and expertise in performance-based arrangements, driving value for the provider partners across the country.

Mike Mikan: In the second quarter, we served approximately 113,000 consumers through this business, exceeding our expectations. We look forward to continuing to build relationships with providers, no matter where they are on their path to participating in performance-based arrangements.

Jay Matushak: In the second quarter, we served approximately 113,000 consumers through this business, exceeding our expectations.

Jay Matushak: We look forward to continuing to build relationships with providers, no matter where they are on their path to participating in performance-based arrangements.

Jay Matushak: Next, I'll briefly address the wind down of our AC insurance business. We are continuing to make progress as planned in the second quarter. At the end of the second quarter, our AC insurance business had approximately 135,000,000 in excess cash after reserving for expected medical costs and other anticipated wind-out expenses, not including risk adjustment obligations due under our repayment agreements with CMS. We continue to retrieve capital from our discontinued entities and have received approximately 28.2 million so far this year, some of which has been ensued into states with repayment agreements. We have made several prepayments to CMS already this year.

Jay Matushak: We are continuing to make progress as planned in the second quarter. At the end of the second quarter, our ACA insurance business had approximately $135 million in excess cash after reserving for expected medical costs and other anticipated wind-down expenses, not including risk adjustment obligations due under our repayment agreements with CMS. We continue to retrieve capital from our discontinued entities and have received approximately $28.2 million so far this year, some of which has been infused into states with repayment agreements.

Jay Matushak: Next, I'll briefly address the wind-down of our A.C. insurance business.

Jay Matushak: We are continuing to make progress as planned in the second quarter.

Jay Matushak: At the end of the second quarter, our ACA insurance business had approximately $135 million in excess cash after reserving for expected medical costs and other anticipated wind-down expenses, not including risk adjustment obligations due under our repayment agreements with CMS.

Jay Matushak: We continue to retrieve capital from our discontinued entities and have received approximately $28.2 million so far this year, some of which has been infused into states with repayment agreements.

Jay Matushak: Overall, we believe our business is in a much stronger and more predictable position this year as we continue to seek the remaining liability associated with our AC insurance business steadily decline.

Jay Matushak: We have made several prepayments to CMS already this year.

Jay Matushak: Overall, we believe our business is in a much stronger and more predictable position this year as we continue to see the remaining liability associated with our ACA insurance business steadily decline.

Jay Matushak: Now turning to our balance sheet. As of June 30th, 2024, we had 277.8 million in total cash and investments, including amounts in our regulated entities. Our non-regulated cash and short-term investments were 142.2 million at the end of the second quarter, including 60.7 million of restricted cash and investments. As Mike mentioned earlier, on June 24th, we were pleased to announce that we had entered into a secured loan facility for up to 150 million with Hercules Capital. This is significant and that meaningfully strengthens our balance sheet and provides a solid foundation for our company to execute against our strategic priorities in 2024 and beyond.

Jay Matushak: We have made several prepayments to CMS already this year. Overall, we believe our business is in a much stronger and more predictable position this year as we continue to see the remaining liability associated with our ACA insurance business steadily decline. Now turning to our balance sheet, as of June 30, 2024, we had $277.8 million in total cash and investments, including amounts in our regulated entities. Our non-regulated cash and short-term investments were $142.2 million at the end of the second quarter, including $60.7 million of restricted cash and investments.

Speaker Change: Now turning to our balance sheet.

Speaker Change: As of June 30, 2024, we had $277.8 million in total cash and investments, including amounts in our regulated entities. Our non-regulated cash and short-term investments were $142.2 million at the end of the second quarter, including $60.7 million of restricted cash and investments.

Jay Matushak: As Mike mentioned earlier, on June 24th, we were pleased to announce that we had entered into a secured loan facility for up to $150 million with Hercules Capital. This is significant as it meaningfully strengthens our balance sheet and provides a solid foundation for our company to execute against our strategic priorities in 2024 and beyond. Turning now to our 2024 Outlook. For 2024, we are confirming our expectations for enterprise-adjusted EBITDA to be between $15 million and $25 million.

Speaker Change: As Mike mentioned earlier, on June 24th, we were pleased to announce that we had entered into a secured loan facility for up to $150 million with Hercules Capital.

Mike Mikan: This is significant as it meaningfully strengthens our balance sheet and provides a solid foundation for our company to execute against our strategic priorities in 2024 and beyond.

Jay Matushak: Turning now to our 2024 outlook. In 2024, we are confirming our expectations for enterprise adjusted EBITDA to be between 15 million and 25 million. We are now expecting consolidation revenue of approximately 950 million. Specifically, we expect approximately 320 million from our new care segment and approximately 640 million from our new solution segment. We are confirming our expectations to serve between 475,000 and 500,000 consumers across both our new care and new solution segments, and we anticipate reaching the high end of this range by the end of 2024. We expect to serve between 330,000 and 345,000 value-based consumers in our clinics and between 145,000 and 155,000 consumers and new solutions, including approximately 45,000 through ACL reach.

Speaker Change: Turning now to our 2024 outlook. In 2024, we are confirming our expectations for enterprise adjusted EBITDA to be between 15 million and 25 million. We are now expecting consolidated revenue of approximately 950 million.

Jay Matushak: We are now expecting consolidated revenue of approximately $950 million. Specifically, we expect approximately $320 million from our new care segment and approximately $640 million from our new solution. We are confirming our expectations to serve between 475,000 and 500,000 consumers across both our new care and new solution segments, and we anticipate reaching the high end of this range by the end of 2024. We expect to serve between 330,000 and 345,000 value-based consumers in our clinics and between 145,000 and 155,000 consumers in new solutions, including approximately 45,000 through ACL reach. Finally, we expect our adjusted operating cost ratio to be between 15% and 16%, excluding corporate costs. When you include corporate costs, this is between 19 and 20.

Speaker Change: Specifically, we expect approximately 320 million from our new care segment and approximately 640 million from our new solution segment.

Speaker Change: We are confirming our expectations to serve between 475,000 and 500,000 consumers across both our new care and new solution segments, and we anticipate reaching the high end of this range by the end of 2024.

Speaker Change: We expect to serve between 330,000 and 345,000 value-based consumers in our clinics and between 145,000 and 155,000 consumers in new solutions, including approximately 45,000 through ACL Reach.

Jay Matushak: Finally, we expect our adjusted operating costs ratio to be between 15 and 16% excluding corporate costs. When you include corporate costs, this is 19 to 20%. Overall, our second quarter results reflect strong performance in both our new care and new solutions business segments, and we look forward to continuing to build on this momentum in the second half of the year.

Speaker Change: Finally, we expect our adjusted operating cost ratio to be between 15 and 16% excluding corporate costs. When you include corporate costs, this is 19 to 20%.

Mike Mikan: Overall, our second quarter results reflect strong performance in both our new care and new solutions business segments, and we look forward to continuing to build on this momentum in the second half of the year. I'll now turn it back over to Mike for some closing remarks. Thank you, Jay.

Speaker Change: Overall, our second quarter results reflect strong performance in both our new care and new solutions business segments, and we look forward to continuing to build on this momentum the second half of the year.

Mike Mikein: I'll now turn it back over to Mike for some closing remarks.

Mike Mikein: Thank you, Jay. As we've outlined this morning, we delivered strong performance in the second quarter as we advance our value-driven, consumer-centric care model and continue to make high-quality healthcare more accessible and affordable for all populations. We believe we are well-positioned for 2025 and beyond with a differentiated model that prioritizes strong ongoing relationships and proactive consumer engagement. Our commitment to aligning the interest of consumers, providers, and payers to create a better healthcare experience has never been stronger, and we are eager to continue to advance our model in collaboration with our partners.

Mike Mikan: As we discussed this morning, we delivered strong performance in the second quarter as we advanced our value-driven, consumer-centric care model and continued to make high-quality health care more accessible and affordable for all populations. We believe we are well positioned for 2025 and beyond with a differentiated model that prioritizes strong, ongoing relationships and proactive consumer engagement. Our commitment to aligning the interests of consumers, providers, and payers to create a better healthcare experience has never been stronger, and we are eager to continue to advance our model in collaboration with our partners.

Speaker Change: I'll now turn it back over to Mike for some closing remarks.

Mike Mikan: Thank you, Jay.

Mike Mikan: As we've outlined this morning, we delivered strong performance in the second quarter as we advance our value-driven, consumer-centric care model and continue to make high-quality health care more accessible and affordable for all populations.

Mike Mikan: We believe we are well positioned for 2025 and beyond with a differentiated model that prioritizes strong ongoing relationships and proactive consumer engagement.

Mike Mikan: Our commitment to aligning the interests of consumers, providers, and payers to create a better healthcare experience has never been stronger, and we are eager to continue to advance our model in collaboration with our partners.

Mike Mikein: I would like to thank the entire new health team for their continued dedication to transforming healthcare. I look forward to building on our momentum in the second half of 2024 and beyond.

Mike Mikan: I would like to thank the entire NeueHealth team for their continued dedication to transforming healthcare. I look forward to building on our momentum in the second half of 2024 and beyond. That concludes today's call. Thank you for joining us and for your interest in NeueHealth.

Speaker Change: I would like to thank the entire NeuHealth team for their continued dedication to transforming healthcare. I look forward to building on our momentum in the second half of 2024 and beyond.

Emily Lombardi: That concludes today's call. Thank you for joining and for your interest in New Health. This concludes today's call. Thank you to everyone for joining.

Speaker Change: That concludes today's call. Thank you for joining and for your interest in NeueHealth.

Operator: This concludes today's call. Thank you to everyone for joining us. You may now disconnect your lines.

Emily Lombardi: You may now disconnect your lines.

Speaker Change: This concludes today's call. Thank you to everyone for joining. You may now disconnect your lines.