Company: PIII
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015305
Chunk: 13

Company: P3 Health Partners Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 13
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.3 billion for the year ended December 31, 2023. This increase was primarily driven by a 14% increase in the total number of at-risk members from 108,900 at December 31, 2023 to 123,800 at December 31, 2024, which was primarily due to an increase by nine counties under contract with our health plans, effective January 1, 2024. Capitated revenue was approximately 99% of total operating revenue for each of the years ended December 31, 2024 and 2023.

P3 Health Partners Inc. | 2024 Form 10-K | 63

Other patient service revenue was $16.9 million for the year ended December 31, 2024, an increase of $2.8 million, or 20%, compared to $14.1 million for the year ended December 31, 2023. Other patient service revenue was approximately 1% of total operating revenue for each of the years ended December 31, 2024 and 2023.

Medical Expense

Year Ended December 31,Change20242023Amount%(dollars in thousands)Medical expense$1,559,372 $1,234,740 $324,632 26 %

Medical expense was $1.6 billion for the year ended December 31, 2024, an increase of $324.6 million, or 26%, compared to $1.2 billion for the year ended December 31, 2023. The increase was driven by an increase in the total number of at-risk members year-over-year, as described above, resulting from the addition of nine counties under contract with our health plans, effective January 1, 2024, and elevated costs from increased demand for medical care in the current period.

Premium Deficiency Reserve

Year Ended December 31,Change20242023Amount%(dollars in thousands)Premium deficiency reserve$53,698 $(12,705)$66,403 (523)%

Premium deficiency reserve was an expense of $53.7 million for the year ended December 31, 2024 compared to a benefit of $12.7 million for the year ended December 31, 2023. The change was due to management’s assessment of the profitability of contracts, wherein increased medical expense is expected to increase our future losses.

Corporate, General and Administrative Expense

Year Ended December 31,Change20242023Amount%(dollars in