David Larson's questions to P3 Health Partners (PIII) leadership • Q2 2025
Question
David Larson from BTIG sought clarification on the components and timing of prior period adjustments, the nature of contract discussions with health plans, and the feasibility of adding clauses to protect against late data. He later followed up on the flat medical cost trend and drivers for PMPM revenue growth.
Answer
CFO Leif clarified that a late data batch was a Q1 issue, while Q2 adjustments related to a 2024 RAF accrual miss in a now-exited county and a quality measure. CEO Eric Hoffman described payer negotiations as highly collaborative, with 75% of priority contracts completed. He noted that while they strive for protective clauses, tight operational collaboration is key, and having delegated claims data provides a safeguard. Leif confirmed the medical trend was flat on a normalized basis, and Eric highlighted that improved burden of illness capture is a key driver for future revenue growth.