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President & CEO Brandon Sim stated it was too early to comment on specific 2026 MA bids but expressed overall bullishness on the MA line of business due to scale and cost management. Regarding the exchange, he differentiated California as a more stable, state-based market with less fraud, positioning the company to manage potential headwinds from subsidy changes, given its limited exposure of under 5% of membership.

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President & CEO Brandon Sim responded that it was too early to comment on specific 2026 MA bids but reiterated a bullish long-term view on MA. Regarding the exchange, Sim differentiated the California state-based exchange as having less fraud and more stable membership than other markets. He emphasized any headwind from subsidy expiration would be manageable given that exchange members represent less than 5% of the business.

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Chairman & CEO Steve Beard highlighted the robust and growing secular demand for professionals in their current core areas (medicine, nursing, veterinary, behavioral sciences), which provides a long runway for growth within the existing portfolio. CFO Bob Phelan addressed the modeling questions, noting that margins are seasonally lower in Q1 and that a one-week academic calendar shift will boost Q2 results at the expense of Q3. Beard added that investments will continue across their strategic pillars, timed for optimal impact throughout the year.

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Chairman and CEO Stephen Beard acknowledged that Adtalem is pacing ahead of its Investor Day targets and plans to recalibrate long-term goals at the next Investor Day in early 2025. Regarding Washington D.C., he stated that while it's too early to comment on specific proposals, the current environment is generally positive for career-focused education with a high return on investment, which is Adtalem's focus.

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CEO Parth Mehrotra explained that while Privia has successful partnerships with three health systems, it's not a model for everyone. He said Privia's value proposition is helping systems align with independent-minded physicians, a competence many systems lack. However, he stressed that Privia is not reliant on a health system strategy for growth and can operate successfully independently. The company will partner where there is a good strategic match but will continue to grow its core model of supporting independent practices as a viable alternative to system employment.

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CEO Parth Mehrotra attributed the metric primarily to the flat assumption for value-based care shared savings in the guidance. He mentioned that provider mix also plays a minor role. Consequently, the most direct path to upside would be outperformance in shared savings relative to their conservative forecast.

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CEO Parth Mehrotra provided a direct answer, stating that neither of the two items had a material impact on Privia's financial results or its operational approach to the MSSP program. He clarified that Privia is not a 'call center company' focused on simply billing specific codes.

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EVP & CFO James Cleary reiterated that GLP-1s are currently minimally profitable for Cencora despite driving top-line growth. He acknowledged that with more market competition, the category could eventually move to a more normalized fee-for-service model and become more profitable. However, he clarified that this potential shift is not something the company is anticipating or building into its financial plans for the upcoming fiscal year 2026.

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CFO Jeff Schwaneke confirmed that payer economics are a critical component of future decisions but stressed a new operational urgency to act on performance data more quickly. He also stated that the ACO REACH business performed in line with expectations during the quarter and continues to be a strong contributor.

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CFO Jeffrey Schwaneke confirmed the 50 bps estimate for the 2 Midnight rule is for the full year and incorporates its ramp-up. He noted that while total supplemental benefit dollars are lower in 2025 due to payor bid changes, agilon remains at-risk for them. CEO Steven Sell added that reducing this risk, similar to Part D, remains a key long-term priority.

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CEO Steven Sell acknowledged that Part D has a negative impact but declined to provide a specific number. He emphasized that the key issues are not just the underlying cost performance but also the significant data lag and lack of visibility. This challenge is driving the company's strategy to mitigate exposure through mechanisms like carve-outs and risk corridors in partnership with payers, who recognize the limited control physicians have over these costs.

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Executive Mark Ordan attributed potential contract wins to a renewed focus on being the best partner for hospitals in women's and children's services, which he believes will drive growth. CFO Kasandra Rossi confirmed the current level of practice supplies expense is a good run-rate post-dispositions and detailed that the 2% NICU day growth was driven by a ~2% increase in births and a slight increase in length of stay.

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CEO Mark Ordan clarified that the conservative guidance reflects general caution about uncertainty in the healthcare provider space and the broader economy, rather than a specific negative trend. Regarding IVF, he acknowledged it is a 'possible tailwind' and a 'potential strong sales' driver but confirmed it is not yet incorporated into financial forecasts.

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CFO Kasandra Rossi explained that the portfolio restructuring is backloaded, with most of the impact needed to reach the $200 million revenue exit target occurring in Q4. She stated that about one-third of the expected $30 million in annualized EBITDA improvement will be realized in 2024, with the rest in 2025. Regarding the RCM, Rossi noted it is too early to quantify future financial benefits, as the 2024 focus was on a successful and non-disruptive transition.

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CFO Michael Shapiro downplayed the risk of a severe timing lag, noting that many procurement contracts have static prices for interim periods and that the company's robust balance sheet could be used to soften any volatility. CEO John Rademacher clarified that the clinic strategy is focused on expanding the number of 'chairs' available to patients, with new facilities capable of supporting both traditional and advanced practitioner models.

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CFO and COO Brian Scott clarified that labor disruption revenue does not have a materially different margin profile; its main effect is on revenue and EBITDA flow-through, with segment mix being a larger margin driver. He also affirmed that a free cash flow conversion rate in the 60s range remains a good benchmark for modeling purposes.

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