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NeueHealth, Inc. is a healthcare company founded in 2015 that focuses on transforming healthcare delivery by providing high-quality, coordinated, and accessible care. The company operates through two main segments, offering clinical care services and provider enablement solutions to support value-based care models. Its offerings cater to populations across the ACA Marketplace, Medicare, and Medicaid, aiming to create a consumer-centric healthcare experience.
- NeueSolutions - Offers provider enablement tools, including technology, data analytics, and care coordination services, to empower healthcare providers in performance-based arrangements and improve population health outcomes.
- NeueCare - Delivers clinical care through owned primary care clinics, both in-person and virtually, focusing on managing risk in partnership with external payors and serving value-based and fee-for-service consumers.
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Despite reporting strong adjusted EBITDA of $9.4 million in the third quarter, your NeueSolutions segment had an operating loss of $5.8 million. What factors contributed to this loss, and how do you plan to achieve profitability in this segment moving forward?
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You've acquired full ownership of Centrum Health to simplify your corporate structure. What are the expected financial implications of this acquisition, and how will it impact your operational efficiencies and capital allocation strategy?
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With the wind down of your ACA insurance business continuing and remaining liabilities declining, are there any potential unforeseen risks or costs that could impact your financial position in 2025 and beyond, and how are you mitigating them?
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As you focus on diversifying and growing your consumer base across the ACA Marketplace, Medicare, and Medicaid, how do you plan to address the varying regulatory challenges and reimbursement pressures in these different markets while maintaining profitability?
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You exceeded your full-year guidance by serving approximately 509,000 consumers in the third quarter. What strategies are you implementing to sustain this growth trajectory, and what challenges do you anticipate in achieving your projected consumer targets for the end of the year?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
CMS (Centers for Medicare & Medicaid Services) | Payer for healthcare services [N/A] | NeueSolutions | $635.1 million for 2024 (~67.8% of total revenue ) |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Centrum Health | 2024 | NeueHealth completed the Centrum Health acquisition on October 29, 2024, by acquiring the remaining 25% equity interest for a total valuation of $101.75 million, which included $30.0 million in cash, a $7.8 million credit for previous distributions, and a secured promissory note of $64.0 million due in 2028 at a 6% annual interest rate. The deal further includes an additional $8.0 million payment to the P Unit Holders due by October 29, 2028, and is strategically aimed at advancing NeueHealth’s consumer-centric, value-driven care model by streamlining its corporate structure. |
Recent press releases and 8-K filings for NEUE.
- On May 7, 2025, NeueHealth held a special stockholders meeting approving the Merger Agreement to become a wholly owned subsidiary of its Parent, paving the way to go private (, , ).
- Q1 2025 highlights: Achieved $215.8M revenue, $13.5M adjusted EBITDA (fifth consecutive profitable quarter) and an improved 25.4% gross margin (, , ).
- Strategic update: Announced the move to go private (expected to close by mid-2025) and emphasized a consumer-centric care model resonating with providers and payors (, , ).
- Expanded its consumer base to 709,000, marking a 51% YoY increase (, , ).
- Segment performance: New Care delivered $90.5M in revenue with $23M operating income, while New Solutions generated $127.6M in revenue with a $3M operating loss ().
- Maintained a robust balance sheet with $239.4M in total cash and investments ().
- Robust financial performance: Q4 consolidated revenue was $232.6M and full-year revenue reached $936.7M with corresponding adjusted EBITDA of $5.5M in Q4 and $22.5M for the year, marking the strongest financial performance to date.
- Significant consumer growth: The company served 483,000 consumers in 2024 and has already expanded to 717,000 consumers in early 2025, demonstrating strong growth in its core segments .
- Strategic acquisition move: A definitive agreement to be acquired by an affiliate of NEA was announced, with the transaction expected to close in Q2 2025, transitioning NeueHealth to a privately held company.
- Q4 revenue of $232.6M was in line with expectations, with an improved gross margin of 20.5% for continuing operations.
- The quarter achieved an adjusted EBITDA of $5.5M, marking the fourth consecutive quarter of adjusted EBITDA profitability.
- Strong full year 2024 performance was highlighted by $936.7M in revenue and $22.5M in adjusted EBITDA, underscoring a solid turnaround.
- Delivered its strongest financial performance to date in 2024, driven by a consumer-centric care model, and set the stage for continued growth in 2025.
- Achieved positive Adjusted EBITDA for the fourth consecutive quarter, highlighting improved operational efficiency.
- Key consumer metrics improved, with 360,000 value-based consumers served in 2024 versus 355,000 in 2023, and 123,000 enablement services lives compared to 106,000 in 2023.
- Reported significant growth for early 2025, serving 717,000 consumers, marking a 48% increase over 2024.
- CMS Agreement Modification: The Company’s insurance subsidiaries in Colorado and Florida executed Letters of Agreement with CMS to modify the repayment terms for an outstanding $271.8 million risk adjustment obligation, now due in 36 months and accruing interest at 11.5% per annum with additional payment conditions, including monthly payments of $1,000.
- Merger Announcement: The Company entered into a Merger Agreement with NH Holdings 2025, Inc. to become a wholly owned subsidiary of Parent, indirectly controlled by NEA, with detailed disclosures and related filings forthcoming.