Bright Health Group reported a net loss of $668.6 million in the fourth quarter of 2022 and shed doubt about the company's future ability to continue operating.
The company jettisoned most of its insurance business at the end of 2022, exiting the individual market and ending its Medicare Advantage business outside of California.
In its earnings report, Bright Health said it plans to disclose "substantial doubt" around the company's ability to continue operating as a "going concern" within the next 15 days.
Bright Health said the warning is "predicated on the company's ability to obtain additional capital to fund our ongoing operations over the next twelve months." The company breached its minimum liquidity requirement in the first quarter of 2023, according to the earnings report.
CEO Mike Mikan told investors on a March 1 call the company needs to raise around $300 million to stay afloat, after the business overdrafted its credit.
Mr. Mikan told investors the business has a "very different risk profile" after eliminating its volatile ACA insurance business. The company has $150 million in current cash.
"We recognize that, at this stage, we have much to prove and that is exactly what we intend to do. We have taken actions to focus and simplify our business going forward," Mr. Mikan said.
The company will also be delisted from the New York Stock Exchange if its share price does not reach $1 by May.
Bright Health has initiated several rounds of layoffs in the past year, laying off at least 300 employees since March 2022.
Revenue and losses
- The company reported $551.4 million in revenue in the fourth quarter of 2022, up from $380.2 million a year prior.
- The company reported a net loss of $668.6 million in the fourth quarter, with a $480.3 million loss from its discontinued operations.
- In 2022, Bright reported a net loss of $1.4 billion, up from $1.2 billion in 2021.
- The company is projecting revenue between $2.9 billion and $3.1 billion in 2023.
Membership
- The company ended 2022 with 1 million commercial members, 125,000 Medicare Advantage members and 530,000 value-based care consumers.