On Wednesday, P3 Health Partners Inc., a population health management company, reported favorable financial performance for its third quarter of 2023 under the leadership of CEO Dr. Sherif Abdou. The company's revenue saw a 16% surge, reaching $288.4 million. This increase is attributed to the efficient administration of capitation revenue and medical costs, which resulted in a 306.1% boost in the medical margin to $36.2 million. This reflects the company's efficient management of medical costs and commitment to value-based care.
Additionally, P3 Health Partners reported a decrease in net loss by 43%, bringing it down to $37.3 million compared to the same quarter in the previous year. The Adjusted EBITDA loss for Q3 also improved by 45% to $22.3 million from the previous year's Q3 loss.
Looking at the broader picture, for the nine-month period ending on September 30, 2023, P3 Health Partners also reported positive financial progress. The total revenue for this period increased by 16%, reaching $919.5 million compared to the prior year. Notably, the company managed to significantly improve its net loss figure for this period to $117.3 million from an overwhelming $1,029.2 million last year due to a substantial goodwill impairment charge.
The company also turned its gross profit positive at $9.1 million, marking a significant recovery from a negative $6.5 million in the previous year. The net cash used in operating activities improved to negative $8 million for the quarter.
As of September 30, 2023, PIII's balance sheet showed total assets of $896.9 million, with current assets including cash and restricted cash totaling $57.4 million. Total liabilities stood at $395.9 million, with current liabilities accounting for $267.3 million.
Looking ahead, P3 Health Partners has projected a positive Adjusted EBITDA guidance for its full fiscal year of 2024, with estimates ranging from $20 million to $40 million. For the full-year 2023, the company's guidance projects total revenues between $1,200 million and $1,250 million with a projected medical margin of $155 million to $175 million. The company's recent financial performance indicates a positive trend that could potentially continue into the next fiscal year.
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