Clover Health ups guidance after $7.2 million in Q2 income
Insurance revenue during the second quarter grew 11% to $349.9 million, driven by strong member retention and intra-year growth.
Photo: Martin Barraud/Getty Images
Physician-enablement technology company and Medicare Advantage insurer Clover Health reported its first-ever quarterly earnings as a public company, posting net income of $7.2 million and an adjusted EBITDA of $36.2 million.
Both are year-over-year improvements, when Clover took a net loss of $28.9 million and EBITDA was just $9.9 million.
Insurance revenue during the second quarter grew by 11% year-over-year to $349.9 million, driven by strong member retention and intra-year growth, and insurance medical cost ratio improved to 71.3% in the second quarter of 2024, as compared to 77.2% in Q2 2023.
WHAT'S THE IMPACT?
The strong performance enabled Clover to raise its full-year guidance, which now sits at between $1.35 billion and $1.375 billion, slightly up from the $1.3 billion to $1.35 billion range it had anticipated.
Adjusted EBITDA also saw a bump in its projection, and is predicted to fall between $50 and $65 million – up from the previous projection of between a $20 million loss to a $20 million gain.
"I am delighted that our performance continues to validate Clover's differentiated, technology-centric approach to healthcare, driven by our insurance offering and its ability to generate meaningful returns while leading with physician-choice for our members," said Clover Health CEO Andrew Toy.
He added that one of the company's main goals is to lower the total cost of care for people with chronic diseases, and to improve clinical outcomes, in part through its Clover Assistant technology, which uses pharmacy data to contact primary care providers when patients have yet to pick up medications, ostensibly helping primary care providers identify and understand the patient's thought process.
In May the company said that Clover Assistant is now available to payers outside of Clover's Medicare Advantage plans and also to providers. The tool, branded as Counterpart Assistant, is a strategic move with Counterpart Health, a Clover Health subsidiary. It gives Clover a new pathway to growth leveraging its existing technology assets, the company said this spring.
THE LARGER TREND
Counterpart's proprietary technology platform is now live with its first clinician users in external software-as-a-service (SaaS) and value-based arrangements. It supports clinicians in a range of practices, from large integrated health systems to small, ACO-affiliated community practices.
Counterpart Assistant employs a hybrid SaaS and shared-savings model, with options for full capitation. This ensures flexibility and alignment of financial incentives with improved health outcomes, Clover said.
Clinicians using Counterpart Assistant see over 1,000 basis point differential in Medical Cost Ratios, Clover said.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
