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Agilon Health, Inc. (AGL) is a healthcare company that focuses on providing medical services, primarily through government healthcare programs such as Medicare. The company operates within a highly regulated environment, ensuring compliance with federal, state, and local laws. Its main source of revenue comes from offering medical services, which dominate its business activities.
- Medical Services Revenue - Provides healthcare services primarily funded through government programs, forming the core of the company's operations and revenue generation.
- Other Operating Revenue - Includes additional income streams that complement the primary medical services business, contributing a smaller portion to overall revenue.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Ben Shaker Executive | Chief Markets Officer | None | Ben Shaker has been the Chief Markets Officer since September 2020, having joined agilon health in January 2017 as Ohio Market President. | |
Denise V. Zamore Executive | Chief Legal Officer and Corporate Secretary | None | Denise V. Zamore is the Chief Legal Officer and Corporate Secretary, confirmed by recent 8-K filings. | |
Girish Venkatachaliah Executive | Chief Technology Officer | None | Girish Venkatachaliah has been the CTO since January 2021. He has a background in data strategy and AI/ML from previous roles at athenahealth and IBM. | |
Jeffrey A. Schwaneke Executive | Chief Financial Officer and Executive Vice President | None | Jeffrey A. Schwaneke became CFO and Executive Vice President on July 1, 2024, after serving as a director on agilon health's board. | |
Steven J. Sell Executive | Chief Executive Officer and President | Advisor to several early-stage healthcare companies | Steven J. Sell has been the CEO and President of agilon health since June 2020. He is an advisor to several early-stage healthcare companies. | View Report → |
Timothy S. Bensley Executive | Chief Financial Officer | None | Timothy S. Bensley has been the CFO since January 2021. He intends to retire during 2024 but remains in the role as of now. | |
Diana McKenzie Board | Director | Board Member at MetLife, Inc., Vertex Pharmaceuticals, Paradox; Special Advisor to Brighton Park Capital | Diana McKenzie joined the board in February 2023 and serves on the Audit and Compensation and Human Capital Committees. | |
Karen McLoughlin Board | Director | Board Member at Best Buy Co., Inc.; Senior Advisor to McKinsey & Co. | Karen McLoughlin has been a director since July 2021. She is a member of the audit committee and chair of the finance and investment policy committee at Best Buy. | |
Ravi Sachdev Board | Vice Chairman of the Board | Director at Covetrus, Inc., Steve Madden, Inc., Millenium Physician Group, apree health, Gentiva | Ravi Sachdev has been a director since 2017 and Vice Chairman since January 2021. He is a Partner at Clayton, Dubilier & Rice. | |
Ron Williams Board | Chairman of the Board | Board Member at The Boeing Company, Warby Parker; Chairman and CEO of RW2 Enterprises | Ron Williams has been the Chairman of the Board since 2017, guiding agilon health's strategic direction. | |
Silvana Battaglia Board | Director | Executive Vice President and Chief Human Resources Officer at AmerisourceBergen; Board Member at Monogram Health, Inc.; Adjunct Faculty Member at St. Joseph’s University | Silvana Battaglia joined the board in June 2023 and serves on the Compensation and Human Capital Committee. | |
William Wulf, M.D. Board | Director | Director for apree health; Former CEO of Central Ohio Primary Care | Dr. Wulf has been a director since 2017 and is recognized for his experience as a medical professional and executive. | |
Veeral Desai | Strategic Advisor | Non-controlling investment in Oceans Healthcare | Veeral Desai transitioned to a long-term strategic advisor role focused on growth opportunities and payer strategies as of August 1, 2024. |
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You have significantly lowered your full-year 2024 medical margin guidance from the low end of $400 million-$450 million to $225 million due to unfavorable prior period developments and lower risk adjustment revenue; can you elaborate on the specific root causes of these issues and what measures you're implementing to prevent similar surprises in the future?
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The recognition of $60 million in unfavorable prior period development related to 2023, driven by updated data on Part D costs and final risk adjustment information, suggests forecasting inaccuracies; why were these discrepancies not identified earlier, and how are you improving your risk adjustment processes to enhance accuracy?
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While you've decided to exit two unprofitable partnerships, there are still three others that remain unprofitable; what criteria are you using to determine which partnerships to exit versus retain, and what gives you confidence that the remaining unprofitable partnerships will become profitable without further impacting your financial performance?
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With the adjusted EBITDA guidance reduced to negative $135 million to negative $155 million and a revised expectation to achieve breakeven cash flow in 2027, what are the key factors behind this extended timeline, and how do you plan to manage your cash position to sustain operations until then?
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Considering the higher-than-expected medical costs and increased utilization trends experienced in the second and third quarters, how are you adjusting your assumptions and cost management strategies for 2025 to mitigate the risk of similar unexpected increases in medical expenses?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
My Personal Health Record Express, Inc. | 2023 | Acquired on February 28, 2023 for approximately $44.4 million in cash, net of adjustments, with a detailed allocation including $25.6 million in developed technology intangibles, $1.9 million in customer relationships, $3.7 million in assumed net liabilities, and $20.6 million in goodwill; the deal was structured using the acquisition method with intangible assets estimated to have a 10-year life and is not expected to meaningfully impact Adjusted EBITDA for 2023. |
mphrX | 2022 | Acquired by agilon health to enhance its technology platform, integrating mphrX’s FHIR-based Minerva platform that improves data aggregation and speeds up EMR integration by up to 75% (reducing implementation from 4 months to 4 weeks), contributing roughly $6 million in revenue for 2023 while having an immaterial EBITDA impact, thus facilitating faster partner onboarding and expansion into new communities. |
Recent press releases and 8-K filings for AGL.
- Reported total revenue of $1.53B and net income of $12M with a 4% YoY decline; adjusted EBITDA fell to $21M from $29M amid strategic market exits .
- Total platform membership reached 605,000, including 491,000 Medicare Advantage members (down from 523,000) and 114,000 ACO Model members .
- Achieved a medical margin of $128M (down from $157M) and a gross profit of $51M, with initiatives underway to improve cost control and payer contracting .
- Announced a $5M investment in geography entry costs, complemented by ongoing investments in technology and clinical programs .
- Provided forward guidance for Q2 and full-year 2025, reaffirming its earnings outlook and long-term financial stability .