Company: PIII
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001832511-25-000025
Chunk: 48

Company: P3 Health Partners Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 7
Chunk 48
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55,966)(5)%

Medical expense was $1.1 billion for the nine months ended September 30, 2025, a decrease of $56.0 million, or 5%, compared to $1.1 billion for the nine months ended September 30, 2024. The decrease was driven by a decrease in the total number of at-risk members year-over-year resulting in part from termination of two health plans.

Premium Deficiency Reserve

Nine Months Ended September 30,Change20252024Amount%(dollars in thousands)Premium deficiency reserve$(36,665)$15,771 $(52,436)(332)%

Premium deficiency reserve was a benefit of $36.7 million for the nine months ended September 30, 2025, an increase of $52.4 million, or 332%, compared to an expense of $15.8 million for the nine months ended September 30, 2024. The change was due to management’s assessment of the profitability of contracts, wherein maturation of our overall contractual arrangements are expected to reduce our future losses.

Corporate, General and Administrative Expense

Nine Months Ended September 30,Change20252024Amount%(dollars in thousands)Corporate, general and administrative expense$70,433 $81,230 $(10,797)(13)%

Corporate, general and administrative expense was $70.4 million for the nine months ended September 30, 2025, a decrease of $10.8 million, or 13%, compared to $81.2 million for the nine months ended September 30, 2024. The decrease was primarily driven by a decrease in salary and related expense resulting from a reduction in head count and sale of the Company’s Florida operations.

Liquidity and Capital Resources

P3 Health Partners Inc. is a holding company and has no material assets other than its ownership of equity interests in P3 LLC. As such, we have no independent means of generating revenue or cash flow, and our ability to pay taxes, make payments under the Tax Receivable Agreement (“TRA”), and to pay dividends will depend on the financial results and cash flows of P3 LLC and the distributions received from P3 LLC. Deterioration in the financial condition, earnings or cash flow of P3 LLC for any reason could limit or impair P3 LLC’s ability to pay such distributions. Additionally, to the extent that we need funds and P3 LLC is restricted from making such distributions under applicable law or regulation or under