Bright Health's Q2 losses offset by strong growth in consumer care business
Company is focused on balancing risk and growth in working with payers, says CEO Mike Mikan.
Photo: Kittiphan Teerawattanakul/Getty Images
Bright Health reported a net loss of $125 million for the second quarter of 2023 and a $312 million net loss for the six months ending June 30.
This compares to a $284 million net loss for the second quarter of 2022 and a $488 million net loss for the first six months of 2022.
The company reported its Q2 results on Wednesday morning, a day after announcing it had secured $60 million in credit capacity to support its working capital needs until the closing of its California Medicare Advantage business to Molina Healthcare.
CEO Mike Mikan took no questions at the end of the Q2 call, as is usually done by companies when reporting earnings.
CFO Jay Matushak said the consumer care business performed well, as did its value-care business in REACH ACOs and in its relationships with commercial payers.
For the full year, Bright Health's Enterprise revenue is expected to be between $1.15 billion and $1.2 billion. Care Solutions revenue is expected to be between $900 million and $925 million, while Care Delivery revenue is expected to be between $250 million and $275 million.
"We are pleased to deliver another strong quarter in the consumer care business," Mikan said during the call. "We have great growth potential in the value-driven marketplace."
This will be with its payer partners, as Bright Health focuses on balancing risk and growth in working with payers, Mikan said.
In 2023, the company moved from full risk arrangements to shared risk contracts with its payer partners.
The number of value-based consumers served is 371,000, an increase of 214% on a comparable basis from last year on strong growth in Care Delivery, the company said.
With the sale of its last Medicare Advantage business to Molina, Bright Health is no longer in the Medicare Advantage business. It has a provider agreement with Molina to serve Medicaid beneficiaries.
Bright Health Group is a technology-enabled, value-driven healthcare company serving aging and underserved consumers with unmet clinical needs through fully aligned care models in Florida, Texas and California.
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
