| Top 3: Hims & Hers (20%), Clover (19%), The Pennant Group (15%) Bottom 3: ATI Physical Therapy (-18%), Cano Health (-15%), Skylight Health (-14%) - Full List YTD performance: (Link)
Providers & Services:
Nonprofit Earnings Releases:
- Cleveland Clinic: (Link)
- UPMC: (Link)
- Trinity: (Link)
- Mayo Clinic: (Link)
- Next week I'll do a quick round-up of all the nonprofit operators now that most of their annual releases have dropped - be on the lookout for that.
- Hospitals in general got destroyed by the Omicron wave in Q1 - just take a look at the latest KF flash report. Average operating margin was 3.3%.
$SGRY: Surgery Partners traded flat this week after its Q4 release despite a guidance raise for 2022, projecting $2.5 billion in revenue and $375 million in adjusted EBITDA, or about a 15% system-wide margin. (Link)
$RDNT: RadNet dropped 15% this week on disappointing earnings. Interestingly, RadNet had a lot to say about building de-novos as opposed to fueling the M&A pipeline via tuck-ins or joint ventures. (Link)
$ACHC: Acadia easily outperformed its financial expectations on the Q and is seeing strong tailwinds headed into the rest of 2022. ACHC popped 9% on the earnings drop. (Link)
$PNTG: As a home health and facility based post-acute operator, labor costs hit the Pennant Group particularly hard in Q4. (Link)
$ADUS: Addus was likewise hamstrung by the 'Rona wave, noting a 6% reduction in hours served in January and increased labor costs. (Link)
$LHCG: LHC Group shrugged off short term challenges related to staffing and census constraints as a result of those labor challenges. All things considered, LHC was able to effectively manage labor challenges and is looking beyond the hot button issue. (Link)
$TOI: The Oncology Institute announced a joint venture with MaxHealth in California to provide medical oncology services at certain locations under risk-based contracting. (Link)
$THC: Tenet has confirmed its decision NOT to spin off its revenue cycle management arm, Conifer, which is slightly notable - they must still think there's strategic value to unlock there as Tenet expands USPI. (Link)
Managed Care:
$BHG: Bright dropped 30% after posting extremely disappointing Q4 and full year 2021 earnings. Based on what I read in the transcript, Bright experienced a mass influx of members but wasn't able to process member claims with the appropriate coding and risk adjustments, leading to an absolutely catastrophic loss in the quarter.
- What's even worse in investor minds - and maybe almost borderline fraudulent - was the fact that this apprently occurred BETWEEN Bright's investor presentation on January 10th and today. Bright management was sober during the call but noted that most of the claims processing issues should now be rectified. Personally, I stay bullish on the insur-tech despite the fact that we're all going to be working for United someday.
$AGL: agilon ended the week on a positive note after posting 50% revenue growth, 82% membership growth, and a massive uptick in 2022 guidance. (Link)
$ALHC: Similarly, Alignment finished the week up 10% after posting a solid MLR and growth metrics across membership, revenue, and improving margin. (Link)
Digital Health:
$GDRX: GoodRx plummeted 30+% after releasing lower than expected revenues and 2022 guidance. The company missed estimates on monthly active users and revenue and issued weak AF 2022 guidance.
- I'm also bewildered by the company, which is currently a breakeven operation, decision to institute a $250 million buyback program. I get the 'we're undervalued' signal, but there has to be better ways to deploy that capital? (Link)
- On that note, a few days after the earnings drop, GoodRx acquired vitaCare Prescription Services from TherapeuticsMD for $150mil, another firm that assists patients in finding low cost drugs and navigate other barriers for medication needs. GoodRx expects the firm to contribute 'under 1%' to its overall revenue and 'reduce adjusted EBITDA margin' by 2% in 2022...meaning that GoodRx bought vitaCare for north of 20 times...revenue. (Link)
$TALK: Talkspace traded flat over the week after posting revenues of $114 million and adjusted EBITDA of ($61) million. (Link)
$OSH: Oak Street wowed investors in its Q4 report, jumping 20+% after the announcement. The care platform has plans for profitability by 2025 but pared down facility growth expectations given current bear market conditions. All things considered, Oak Street is currently executing well on its laid out strategy. (Link)
$SGFY: Signify touted its recent acquisition of Caravan Health, an ACO manager and expects to drive a significant amount of growth through the platform. Makes sense when you think about the amount of hype ACO REACH is generating. (Link)
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