agilon health Inc (AGL)

History and Background

agilon health was founded in 2016. It partners with physician groups to create value-based care models, enabling them to transition from fee-for-service to a more proactive, risk-bearing approach. The company went public in April 2021.

Core Business Areas

• Partnership Model: Agilon Health partners with primary care physicians by providing a fully integrated and capital-efficient model to manage patient populations under full risk.
• Technology and Analytics: Offers a technology platform and data analytics to support physician decision-making and improve patient outcomes.
• Care Management: Provides care management services to coordinate patient care and improve the quality of care delivered.

Leadership and Structure

The CEO is Steve Sell. The organizational structure is centered around supporting partner physician groups through regional and central support teams.

Key Offerings

• Full-Risk Model: agilon health's core offering involves partnering with physician groups to manage patient populations under full-risk contracts with payers. This includes access to its technology platform, care management services, and network of specialists. Market share data is not directly available in percentages, but agilon manages care for approximately 800,000 patients as of 2024. Competitors include companies offering similar value-based care models or ACO enablement such as Privia Health, Oak Street Health (acquired by CVS), and ChenMed.
• agilonONE Platform: A proprietary technology platform which provides insights into the patient's care. Number of users are the number of patients managed which is approximately 800,000 as of 2024. Competitors are companies that offer a similar technology.

Industry Overview

The healthcare industry is shifting towards value-based care models, driven by the need to control costs and improve patient outcomes. This involves moving away from fee-for-service reimbursement and towards models that reward quality and efficiency.

Positioning

Agilon Health is positioned as an enabler of value-based care for primary care physicians. It provides a comprehensive platform and support services to help them transition to and succeed in risk-bearing arrangements. Its competitive advantage lies in its proven track record and scalability.

Total Addressable Market (TAM)

The TAM for value-based care enablement is estimated to be in the hundreds of billions of dollars, representing the total healthcare spending that can be managed under these models. Agilon is positioned to capture a significant share of this market by expanding its network of physician partners.

Key Competitors

• CLOV
• OOSH
• PVAH

Competitive Landscape

Agilon Health faces competition from other value-based care enablers and managed care organizations. Its advantages include a strong track record and proven technology platform. Disadvantages can stem from the need for continued growth with capital and need to achieve economies of scale.

Essentia Primary Care

• Year: 2023
• Acquisition Price (USD millions): 0
• Strategic Rationale: The company acquired Essentia to expand their geographic market.

Historical Growth: Agilon Health has experienced significant revenue growth in recent years due to its expansion into new markets and increased penetration within existing markets.

Future Projections: Analysts project continued revenue growth and profitability as the company scales its value-based care model. Earnings are expected to improve as efficiencies are generated.

Recent Initiatives: Recent initiatives include expanding partnerships with physician groups, enhancing its technology platform, and developing new care management programs.

Agilon Health is a growing company in the value-based care space, demonstrating strong revenue growth. Profitability remains a challenge, reflected in negative net income, but improving margins suggest progress. Its core business model and strong partnerships with physician groups position it well, though continued expansion with capital requirements and market competition are key considerations. The shift in healthcare to value-based care presents a tailwind but they must execute to capture market share.

Data Sources:

• Company Filings (SEC)
• Analyst Reports
• Industry Publications

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Data may be subject to change. Market share estimates are approximate.