Company: PIII
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-026021
Chunk: 152

Company: P3 Health Partners Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 7
Chunk 152
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3%, compared to $382.1 million for the three months ended March 31, 2024. The decrease was driven primarily by decreased membership in the current period.

Premium Deficiency Reserve

Three Months Ended March 31,Change20252024Amount%(dollars in thousands)Premium deficiency reserve$(6,962)$1,000 $(7,962)(796)%

Premium deficiency reserve was a benefit of $7.0 million for the three months ended March 31, 2025 compared to an expense of $1.0 million for the three months ended March 31, 2024. The change was due to network and contract rationalization that began in 2024 and management’s assessment of the profitability of contracts, wherein increased maturation of our overall contractual arrangements is expected to reduce our future losses.

Corporate, General and Administrative Expense

Three Months Ended March 31,Change20252024Amount%(dollars in thousands)Corporate, general and administrative expense$24,999 $27,401 $(2,402)(9)%

Corporate, general and administrative expense was $25.0 million for the three months ended March 31, 2025, a decrease of $2.4 million, or 9%, compared to $27.4 million for the three months ended March 31, 2024. The decrease was primarily driven by a decrease in salary and related expense resulting from a reduction in head count including a $1.1 million reduction in employee bonuses.

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 the terms of any financing arrangements, or P3 LLC is otherwise unable to provide such funds, it could materially adversely affect our liquidity and financial condition. It is anticipated that the distributions we will receive from P3 LLC may, in certain periods, exceed the actual