Company: PIII
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015305
Chunk: 159

Company: P3 Health Partners Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 159
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 (using a Risk Adjustment Factor or “RAF”).

We identified the determination of Medicare Advantage premium risk adjustment revenue as a critical audit matter. The principal considerations for this determination were the significant complexities involved in determining the HCC and the corresponding RAF. Auditing these elements involved especially challenging and complex calculations due to the nature and extent of audit effort required to address these matters, including the extent of specialized skills or knowledge needed.

The primary procedures we performed to address this critical audit matter included:

•Assessing the accuracy of the underlying data used in the determination of the HCC by vouching a selection of encounter data to underlying support.

P3 Health Partners Inc. | 2024 Form 10-K | 77

•Utilizing personnel with specialized knowledge and skills in actuarial methods to assist in determining the HCC and the corresponding risk adjustment revenue.

/s/ BDO USA, P.C.

We have served as the Company’s auditor since 2021.

Las Vegas, Nevada

March 27, 2025

P3 Health Partners Inc. | 2024 Form 10-K | 78

P3 HEALTH PARTNERS INC. and SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

December 31,20242023ASSETSCURRENT ASSETS:  Cash $38,816 $36,320 Restricted cash5,286 4,614 Health plan receivable, net of allowance for credit losses of $150121,266 118,497 Clinic fees, insurance and other receivable3,947 2,973 Prepaid expenses and other current assets 14,422 3,613 Assets held for sale403 — TOTAL CURRENT ASSETS184,140 166,017 Property and equipment, net 5,734 8,686 Intangible assets, net574,350 666,733 Other long-term assets19,196 19,531 TOTAL ASSETS (1)$783,420 $860,967 LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS’ EQUITY  CURRENT LIABILITIES:  Accounts payable$8,442 $8,663 Accrued expenses and other current liabilities29,416 36,884 Accrued payroll 2,722 3,506 Health plan settlements payable55,565 34,992 Claims payable255,