P3 Well being Companions Inc. (NASDAQ:PIII) Q2 2023 Earnings Convention Name August 7, 2023 4:30 PM ET
Firm Members
Karen Blomquist – Vice President, Investor Relations
Sherif Abdou – Chief Govt Officer & Co-Founder
Invoice Bettermann – Chief Working Officer
Atul Kavthekar – Chief Monetary Officer
Amir Bacchus – Chief Medical Officer
Convention Name Members
Joshua Raskin – Nephron Analysis
Ryan Daniels – William Blair
Gary Taylor – TD Cowen
Brooks O’Neil – Lake Road Capital Markets
Operator
Hi there, and welcome to the P3 Well being Companions Q2 2023 Earnings Name. [Operator Instructions] Please word, in the present day’s occasion is being recorded.
I’d now like to show the convention over to your host in the present day, Karen Blomquist. Ma’am, please go forward.
Karen Blomquist
Thanks, operator, and thanks for becoming a member of us in the present day. Earlier than we proceed with the decision, I want to remind everybody that sure statements made throughout this name are forward-looking statements below the U.S. federal securities legal guidelines, together with statements concerning our monetary outlook and long-term targets. These forward-looking statements are solely predictions and are based mostly largely on our present expectations and projections about future occasions and monetary developments that we consider could have an effect on our enterprise, monetary situation and outcomes of operations. These statements are topic to dangers and uncertainties that would trigger precise outcomes to vary materially from historic expertise or current expectations. Further info regarding elements that would trigger precise outcomes to vary from statements made on this name is contained in our periodic experiences filed with the SEC.
The forward-looking statements made throughout this name converse solely as of the date hereof, and the corporate undertakes no obligation to replace or revise the forward-looking statements. We’ll discuss with sure non-GAAP monetary measures on this name, together with adjusted EBITDA, adjusted EBITDA per member monthly, medical margin and medical margin per member per month. These non-GAAP monetary measures are along with and never a substitute or superior to measures of monetary efficiency ready in accordance with GAAP. There are a variety of limitations associated to the usage of non-GAAP monetary measures. For instance, different firms could calculate equally titled non-GAAP monetary measures in another way.
Discuss with the appendix of our earnings launch for a reconciliation of those non-GAAP monetary measures to probably the most instantly comparable GAAP measures. Info on this name is contained within the press launch we issued in the present day and in our SEC filings, which can be accessed from the Buyers web page of P3 Well being Companions web site.
Thanks, and I’ll now flip the decision over to Dr. Abdou, CEO and Co-Founding father of P3.
Sherif Abdou
Thanks, Karen, and welcome, everybody, to our second quarter 2023 convention name. I want to kick off the decision by saying we’ve had a powerful second quarter, and I want to thank our staff for his or her laborious work and contributions to this success. Adjusted EBITDA for the quarter was constructive roughly $200,000 in comparison with a lack of $29 million within the prior 12 months similar interval.
As a matter of truth, adjusted EBITDA was constructive in 4 out of the 5 states that we serve on this quarter. This can be a reflection of what we’ve shared with you beforehand that with extra persistent lives on a P3 platform than new lives and a better degree of maturation translate into funding enchancment, medical value enchancment and enhanced medical margin, which all stream by means of to the underside line and result in profitability.
I want to share with you a couple of useful knowledge factors from this previous quarter which can be reflective of the place the P3 mannequin is working now and function the muse for our 2024 expectations that we’ve shared with you beforehand. Primary, medical value ratio was 84% within the quarter, and that led to medical margin of about $50.5 million. We view this metric as the perfect reflection of the worth we ship to our stakeholders, the flexibility to bend the price curve and reply the important thing demand drivers of our enterprise within the market; quantity two, medical margin was roughly $161 PMPM versus $72 PMPM in the identical interval of the prior 12 months. In the event you have been to match that to the opposite value-based care supplier friends, 161 PMPM or a 16% margin is squarely within the maturation vary of any cohort and exceed Agilon margin of $113 PMPM for the second quarter of 2023. And we consider that we are able to even enhance additional; quantity three, Medical value development was about enhance of roughly 1% for Medicare Benefit lives year-over-year. Whenever you examine that to the general market at mid-single digits or greater, it’s clear that the P3 care mannequin is working and bending the price curve; quantity 4, working bills have been $85 PMPM versus $102 PMPM in the identical interval prior 12 months. That is down roughly 20% in comparison with the prior 12 months; quantity 5, lastly, adjusted EBITDA PMPM was near breakeven versus damaging $95 PMPM in the identical interval of the prior 12 months.
An output of all nice developments that I simply famous and in step with our earlier remarks, that we consider we’re on the trail to sustainable profitability on an adjusted EBITDA foundation within the close to time period.
The above metrics are adjusted to you, validating knowledge factors of P3 mannequin and our trajectory. And specifically, we’re reaching nice outcomes now and never simply projecting sooner or later.
Consequently, we’re updating our 2023 full 12 months adjusted EBITDA steerage vary to a lack of $50 million to $30 million for the 12 months from the unique vary that we gave at first of the 12 months of lack of $60 million to $40 million, extra to come back from Atul on this matter.
Previously, we’ve informed you that we are able to broaden into adjoining counties with minimal value by leveraging the prevailing infrastructure. Within the quarter, we did simply that. We’ve got entered Jackson and Josephine counties within the state of Oregon with a big nationwide payer companions. Additionally within the second quarter, we made an essential announcement. We named Invoice Bettermann, our Chief Working Officer. He not too long ago joined us from Optum Care, the place he led their Pacific Northwest operation and served because the Chief Working Officer of the Everett Clinic and the Seattle Polyclinic. He was drawn to P3 as a result of he’s a powerful believer in P3 mission and the affiliate mannequin, with which he has vital prior expertise operating it and optimizing it.
He’s an distinctive operator and now runs the day-to-day operation of the corporate and native markets. As we take into consideration reaching our long-term steerage for the corporate, operational excellence can be essential to reaching these objectives. We consider that Invoice is the fitting chief with the fitting expertise to assist us to do this.
With that, I’ll flip it over to our Chief Working Officer, Invoice Bettermann. Invoice?
Invoice Bettermann
Thanks for the very type phrases, Sherif. I might like to begin by sharing my targets for the corporate over the following few years with some background context. P3 onboarded over 100,000 Medicare threat lives in a comparatively brief time period. You’ll be able to see that by moderating development for simply the previous six months, you start to see the effectiveness of the P3 mannequin. Medical margin PMPM at $161 is a testomony to that.
In my prior expertise, I noticed the affiliate mannequin in motion in two essential methods: First, potential to develop; and second, potential to bend the price curve. I used to be drawn to P3 as a result of I consider the mannequin is extremely efficient and the staff has vital expertise in serving to drive it to optimum outcomes. The affiliate mannequin works throughout geographies, payers and suppliers.
Though there are variations in fashions throughout the value-based care business, capital depth and scalability being simply two, P3’s scientific outcomes and medical value enhancements, we consider, are very related whether or not you examine it to Oak Road’s clinic employed mannequin or Agilon’s affiliate mannequin. There are extra similarities than variations. The worth-based care mannequin in all its present types, share the identical factor. It’s the proper mannequin. There’s really extra variation in operational execution.
How lengthy the J curve is from time zero to maturation and the way a lot or little do it’s a must to spend to attain the specified outcomes. P3’s mannequin is excessive development, low CapEx. It’s the most capital environment friendly mannequin within the market. There’s restricted CapEx to construct clinics or vital market spend to draw members. Our outcomes relative to different fashions converse to our potential to successfully have interaction physicians and sufferers to bend that value curve. Members mature on the P3 platform after 24 to 36 months.
Success requires strict operational self-discipline to attain, significantly with our fast development. The demand aspect is there due to our outcomes. Our income is at a 15% low cost to the well being plan income, and we’re operating at 16% medical margin off that now with the methods to go earlier than maturation. On the price aspect, there is no one factor that bends the price curve. It is many, many little issues achieved rather well.
It requires operational excellence. My focus and the target is to additional instill a tradition outlined by operational excellence throughout our staff in native markets and to optimize P3’s scientific outcomes to close perfection. That is our staff’s objective and that is my objective.
With that being mentioned, I wish to take a minute to concentrate on our oldest market, Arizona, the place it began, the place it’s now and the place we consider it may possibly go. For people which can be targeted on cohorts, this can be a related instance of a market cohort not that dissimilar to our friends that debate market cohorts publicly. If we examine the Arizona market from 2018 to the second quarter of 2023, the trajectory of the P3 mannequin turns into clear. Let’s take members, for instance, in 2018, it was 10,000. In the present day, it’s roughly 45,500. Income PMPM, in 2018, it was $628 PMPM. Within the second quarter of 2023, it was $921 PMPM. Medical margin PMPM, in 2018, it was damaging $53 PMPM. Within the second quarter of 2023, it was constructive $163 PMPM. And sooner or later, we count on continued enchancment.
So how was this achieved? And the way can we enhance upon it? It’s a tradition the place everybody in any respect ranges is driving in direction of KPI benchmarks, exceeding them and resetting new ones greater. I will go away you with this. P3 is an unbelievable firm and has an unbelievable staff with large expertise going again to the well being care companion base. And I hope to marry my expertise to take it to the following degree rent collectively. Thanks on your time in the present day. And now
I’ll flip the decision over to Atul Kavthekar, our CFO.
Atul Kavthekar
Thanks, Invoice, and good afternoon, everybody. I will begin in the present day by offering element round our sturdy quarter and the way we’re progressing in direction of assembly our full 12 months steerage and anticipated adjusted EBITDA profitability in 2024. Prime line outcomes for the second quarter have been sturdy with capitated income of $325.6 million and whole income of $329.1 million, each representing development of roughly 22% in comparison with the prior 12 months.
For the primary half, capitated income was $624.3 million, and whole income was $631.2 million, each an enchancment of roughly 16% in comparison with the primary half of the prior 12 months. Within the first half of 2023, we had funding will increase of 12% on account of the maturation of the lives on the platform. And to provide you a extra up to date sense of P3’s scale, on the finish of the quarter, we had 129,000 members on our platform. This consists of 116,000 Medicare Benefit and ACO attain members plus a further 13,000 members in Half D membership and fee-for-service relationships. We stay as optimistic as ever about our membership development over the long run as we’ve guided prior to now. Within the second quarter of 2023, our medical margin improved to $50.5 million or $161 on a PMPM foundation, which is a 132% and 123% enchancment, respectively, in comparison with the prior 12 months.
Gross revenue improved considerably over the prior 12 months to $26.8 million. That is the second quarter in a row that we’ve seen vital progress and begins to color a transparent image of our anticipated trajectory total. Moreover, these enhancements to our medical margin and gross revenue reflecting, will increase in funding in 2023, the combination of persistent lives on the platform and our potential to handle value developments.
Because it pertains to value developments, we noticed a big drop in our platform help prices going from 12% of income within the second quarter of 2022, right down to 7% within the present quarter. This excessive single-digit proportion is in step with the prior commentary I offered round this metric and was pushed by a realignment of our staffing mannequin to focus extra of our spending on affected person care whereas we invested in essential infrastructure, akin to our accounting and analytics division.
We’ll proceed to observe our spending with a watch in direction of steady enchancment and effectivity and incorporate this mindset into our on a regular basis money administration. Adjusted EBITDA was constructive within the quarter at $200,000, an enchancment in comparison with a lack of $28.7 million in the identical interval of the prior 12 months.
The primary half of 2023 adjusted EBITDA loss was $18.9 million in comparison with a lack of $47.6 million within the first half of 2022. These sturdy outcomes mirror our potential to mix our enhancements in medical margin with an ongoing self-discipline to leverage our present infrastructure and drive steady enhancements in working efficiencies. As we transfer into August, the power we’re seeing throughout our markets reinforces our view.
And for the second quarter in a row, we’re going to elevate our steerage. We nonetheless count on 2023 income to be between $1.2 billion and $1.25 billion and our medical margin to be between $155 million and $175 million. However we’re rising our adjusted EBITDA steerage to now be at a lack of $50 million to $30 million in comparison with the steerage at the beginning of the 12 months of a lack of $60 million to $40 million and the revised steerage we gave in Q1 of a lack of $55 million to $35 million.
Thanks all as soon as once more on your time in the present day. And with that, I will flip the decision over to Dr. Bacchus, our Chief Medical Officer.
Amir Bacchus
Good afternoon. In the present day, I want to present some shade on what we’re seeing for utilization developments. Utilization developments are operating in step with our expectations and at ranges just like these over the past 4 quarters. We’re actually conscious of all of the dialogue concerning elevated medical prices on the market publicly, significantly on the outpatient aspect.
Nonetheless, we at P3 have solely seen a slight uptick in medical expense total, partly because of sturdy inpatient value reductions. In actual fact, after reviewing the paid claims knowledge, we’ve seen in medical value trending of roughly 1%. We attribute our sturdy success to actions like, primary, vital supplier engagement in all our markets, which has led to a rise in entry by 6% to 7%, and entry is the important thing to driving improved income and high quality and decreased medical expense; quantity two, we’ve seen our community specialist greater than double their use of ASCs as in comparison with using hospitals for surgical procedures or different procedures like endoscopies; quantity three, continued success on UM actions with our groups resulting in a system-wide acute and missed per thousand of 178, a discount of 20% over the past 18 months and an ER per go to per thousand of 289, a discount of 19% over the past 18 months; and quantity 4, we’ve improved high quality hole closures by 5% on the similar time final 12 months.
As we’ve said beforehand, the maturity of the mannequin, now that we’ve had nearly all of our populations larger than 24 months is bearing fruit in these persistent lives. Whether or not our staff is working with the sufferers or suppliers to affect habits change, educating suppliers on correct documentation, performing prior authorization and concurrent evaluate and even encouraging each sufferers and suppliers to shut gaps in care. All of those actions and plenty of extra are in step with Sherif’s and Invoice’s remarks, that P3 care mannequin is managing income, high quality and value effectively.
With that, I’ll flip the decision over to the operator for Q&A. Thanks.
Query-and-Reply Session
Operator
[Operator Instructions] And the primary query in the present day comes from Josh Raskin with Nephron Analysis.
Joshua Raskin
I assume first query is simply on the G&A quantity, down $10 million, absolute {dollars} sequentially. I believe there may need been some one-timers within the first quarter. However what drove that? And the way sustainable is that $27 million on a quarterly foundation?
Atul Kavthekar
Sure. Thanks for the query. So on the one-timers a part of it, they have been really comparatively little when it comes to the one-timers, you will see some disclosure year-to-date, there’s possibly a complete of $3 million. However — that is actually on the again of an entire redesign, as I used to be mentioning, of how can we workers the enterprise, how can we place ourselves for development, getting individuals in the fitting locations and ensuring that we’ve sufficient sources within the place that they’re actually essential to our success.
So when you consider it, we predict it’s extremely sustainable. However not solely is it sustainable, I believe there’s in all probability some alternative. I do not suppose you are going to see fairly the identical quantum each quarter of discount going ahead. However I believe this can be a very, very stable base from which I believe we are able to develop into much more environment friendly.
Sherif Abdou
Sure. So as to add to that, Josh, to what Atul simply mentioned, it’s measuring it properly per member monthly, and it is an enchancment per member monthly as a sustainable measure as we develop and add extra members, extra than simply absolutely the {dollars}.
Joshua Raskin
I get that. After which on the supplier aspect, I do know we talked about this final quarter, and there was slightly little bit of a culling. I believe your supplier rely, I assumed 2,600 is down about 200 from final quarter. Is that also extra intentional? Have been there some suppliers that left? Is that extra on the ACO attain aspect the place you are form of culling the e-book? Possibly simply any shade on the supplier account.
Sherif Abdou
Sure, it’s intentional. We’re specializing in increasing our thoughts share and pockets share of the prevailing practices and lowering the variety of unengaged and haven’t got that many membership have interaction in worth based mostly.
So the sustainable disciplined development concentrate on rising the variety of engaged supplier and increasing the connection with the have interaction supplier, Josh.
Joshua Raskin
Okay. After which if I may simply sneak another in. I do know you talked about on the decision, a few of the new county expansions up in Oregon. I am simply curious, how we ought to be excited about the sport plan for one type of variety of new counties that you just guys are excited about within the subsequent 12 months or two? After which how lengthy does it take these to ramp? What’s an affordable expectation when it comes to even simply variety of lives below administration over say, 12, 24-month interval?
Sherif Abdou
Sure. In order we develop, as we talked about earlier than, we’ll go to the counties proper subsequent door. So it is actually nearly in the identical state. And actually, it is half an hour or 45 minutes’ drive between the counties that we’re in and the brand new counties. And in order that was purposefully Josh, achieved. So we are able to leverage the infrastructure and do not need to do further buildup.
So we will proceed to concentrate on the expansion of the contiguous counties and including extra lives by means of increasing the community on this county and the connection with the payers. Does that reply your query?
Joshua Raskin
Sure. I assume is it related supplier teams or what makes it really easy if you discuss aside from the company infrastructure, how is it simpler to get the docs? Are they a part of giant teams that follow throughout counties?
Sherif Abdou
Not solely that, however the staffing, the care managers can cowl a couple of follow, the schooling offered by the medical administrators might be offered by the identical individual. So the frequent companies that we share throughout practices might be leveraged over that area.
Operator
And the following query comes from Ryan Daniels with William Blair.
Ryan Daniels
I assume, primary, given the outperformance you noticed this night, what are your ideas on form of attending to a sustainable EBITDA breakeven goal? I do know you talked about early 2024. Do you suppose you may speed up that? Or is that also the fitting level to consider from a form of a launch level and constructive EBITDA on an ongoing foundation?
Atul Kavthekar
Sure, Ryan, thanks. That is Atul talking. Look, I believe it provides us increasingly confidence in what we mentioned earlier. I believe we’re nonetheless the view ’24 as EBITDA profitability. Close to ’23, the rise in steerage is simply reflective of our elevated confidence. We’ll consider that because it goes ahead and replace. However at this level, we’re simply type of a better diploma of confidence in what we mentioned earlier.
Ryan Daniels
Okay. Nice. After which a terrific case examine on Arizona, it actually exhibits the facility of the platform for development and rising PMPM charges and medical margins. And I am curious, on condition that that is the case, given that you just’re now worthwhile on an EBITDA foundation in 4 or 5 states, what do you consider reaccelerating membership development? I do know that is been pretty flat. I do know you’ve got referred to as a few of the smaller underperforming doctor teams. Is it now time to possibly step that up slightly bit extra? Or do you want to stability that so as to hit that EBITDA constructive degree?
Sherif Abdou
Sure, Ryan, that is Sherif. So we’re positively excited in regards to the good efficiency from all of the states that we’re in. And as I discussed within the final name, it isn’t due to softening of the calls for. However slightly, we’ve as an business time period use Class 24 and Class 25 nearly potential to double the scale of the corporate, however we’ve decided and shared with you that we will comply with a disciplined development to succeed in the purpose of profitability and sustainable with that disciplined worthwhile development.
Operator
And the following query comes from Gary Taylor with Cowen.
Gary Taylor
Three fast ones for me. First, I simply wished to grasp on the steerage elevate on EBITDA. Is that extra on the decrease sustainable G&A or the decrease platform prices you have been speaking about this quarter?
Atul Kavthekar
Sure, Gary, thanks for the query. That is Atul talking. Look, I believe there’s a few elements to it that actually drive it. And it isn’t on the again of 1 single issue or one single metric. I believe as we went by means of the quarter and as we undergo, we’re already in August, we have a look at a few key metrics round, for instance, doctor and affected person engagement.
These are going precisely as we anticipated and, frankly, slightly bit higher. That offers us some confidence that the place we’re capable of have interaction with these sufferers, we predict we’ve a greater alternative to regulate medical value. The second a part of that is persistent life, and I believe that is a theme for the 12 months, the place the stability of the persistent lives is a considerable one.
And I believe we’re seeing the advantages of that. We do have — we’re optimistic round rising our membership as we undergo the quarter. The enterprise developments and the demand that we see is each bit what we thought and possibly even slightly bit higher. And then you definately do have the effectivity issue. I believe that this can be a sustainable value discount.
As I discussed only a minute in the past, I believe there’s a possibility to get even higher at it. However it’s a mixture of all these issues. It is not simply anybody.
Gary Taylor
Second one for me. I do know one of many key points within the anticipated improved margin and efficiency was a sweep income for ’23 versus not reserving any in ’22? I noticed within the Q, $14.5 million within the first half. So was that each one within the 2Q? And may we take into consideration the EBITDA affect as being roughly half is being shared together with your affiliated docs?
Atul Kavthekar
Nicely, I will let you know in regards to the first half. Sure. That is within the disclosure. That was all within the second quarter. However look, we do not actually discuss aside from type of the requirement of exposing. We do not actually discuss it as a result of we type of actually take into consideration sleeps as a part of the conventional course of the enterprise. We’ll be seeing these throughout the 12 months within the varied quarters.
However once more, I believe we be ok with the efficiency of the quarter and in addition our potential to form of predict the quantities that we wind up seeing. So.
Gary Taylor
However you are going to proceed to e-book these on a money foundation, proper?
Atul Kavthekar
We’ll.
Gary Taylor
Okay. Final one for me. I simply noticed the word in regards to the cybersecurity incident? Is there a fast simply rationalization and form of what occurred and contained or any go-forward affect or something?
Atul Kavthekar
Sure. I believe the fast reply isn’t any go-forward affect. We did have an occasion within the quarter. It was comparatively small, immaterial as we see it. However it did occur, and we mirror that as a part of bills, however we do not essentially think about that as an ongoing factor. We’ve got shortly closed all the gaps that we noticed in safety and elevated everyone’s consciousness round it. So we predict we have it below management. However sure, that’s one thing that we excluded.
Operator
And the following query comes from Brooks O’Neil with Lake Road Capital Markets.
Brooks O’Neil
I’ve a few questions. I assume I might begin off with admire Atul’s feedback about demand and exercise within the first half. Are you able to simply discuss slightly bit about what you anticipate for the second half when it comes to affected person demand and the supplier responds to what might be both onetime or seasonal enhance in demand?
Amir Bacchus
Brooks, that is Amir. Our demand continues to be excessive, not solely from our payer companions, but additionally from our clinicians. And our suppliers might want to develop with us. So we’re very bullish with regard to our development as we transfer ahead. So for us, it is continued to work with our clinicians as we convey extra alternatives with payers that wish to proceed to develop. So I believe as we glance from the third and the fourth quarter, that can do fairly properly as you roll by means of the latter a part of the 12 months.
Brooks O’Neil
Nice. Let me ask you a second query. Clearly, the monetary efficiency exhibits vital enchancment year-over-year, which is terrific. Do you’ve something you may level to that signifies whether or not you consider high quality stays nearly as good as it has been or maybe is even getting higher when it comes to the way in which you are caring for your sufferers and members?
Amir Bacchus
Sure. Brooks, Amir once more. In order we have mentioned earlier than, a whole lot of what we see is so far as enchancment of high quality of care comes within the maturation as properly, proper? In order physicians begin to study increasingly of the instruments that P3 can convey to these practices working with the care managers, working with the general staff, high quality staff, et cetera. We begin to see these outcomes. So the standard of care does enhance as we work with our clinicians.
So I believe that is a part of the rationale why we’re seeing such success within the mannequin total, as Atul talked about earlier. Along with that, let me simply easy high quality measures. These issues additionally rise as physicians certainly get extra engaged with closing gaps in care, working with groups, et cetera to drive these very issues. So we count on high quality total, whether or not from scientific care or high quality measures to proceed to enhance.
Brooks O’Neil
Nice. After which final one I had, I used to be fairly impressed with the funding enchancment that you’ve got achieved to this point in 2023. And I am curious you probably have any indications of whether or not that is sustainable into 2024.
Invoice Bettermann
Sure. Brooks, that is Invoice Bettermann. We’re actually enthusiastic about what we have been capable of obtain this primary half of the 12 months. The groups are actually laser targeted. In my half earlier, I shared with you that there is many little issues that we’re doing. What I am enthusiastic about is the extent of engagement we’ve with our teams proper now, you are seeing us see 6% to 7% extra visits than we did the prior 12 months. That isn’t by probability. That may be a focus inside the group.
And so on account of that, you will see income proceed to — and fund and proceed to enhance from the primary half into the start of subsequent 12 months. So we’re enthusiastic about the place we’re headed.
Operator
And this concludes the question-and-answer session. I want to flip the ground to administration for any closing feedback.
Sherif Abdou
Nice. Thanks very a lot, Keith. Earlier than finish of the decision in the present day, I want to clear a few issues. Primary, we aren’t seeing any proof of straightforward utilizations by prior artwork or in any other case inpatient or outpatient. Nonetheless, there’s positively consideration for seasonality and seasonable adjustments within the winter that may change the utilization. However there is no proof that we’re seeing that affected person and supplier demand for companies are rising. Quantity two, as we proceed to good our potential to foretell the sweep and to clean out the 12 months as a software set, we will proceed to debate with the accounting and the auditor to permit us to have the ability to accrue for the sweeps in the fitting time and the interval that it belongs to. And we’ll proceed to have this, and we’ll replace you as we go alongside.
I’ll go away you with this. The primary half of 2023 outcomes present the progress we’re making towards reaching our objectives. Our focus is on the affected person and producing higher scientific outcomes and our mannequin does simply that whereas reducing medical prices. The mission and the mannequin are working and the momentum we’re seeing within the enterprise is shortly driving us to our profitability. With that, I might wish to thanks all on your time in the present day, and have a terrific night.
Operator
Thanks. The convention has now concluded. Thanks for attending in the present day’s presentation. Chances are you’ll now disconnect your strains.