Bright Health Group posted a net loss of nearly $432 million in the first half of the year but saw extreme growth in its NeueHealth value-based membership, which has grown 1,150 percent since the same time last year, according to the company's earnings report filed Aug. 10.
"Bright Health Group has made significant progress this year on reducing medical costs, accurate risk adjustment capture and improving operational performance resulting in strong performance in the second quarter," Mike Mikan, president and CEO, said. "As we look forward, continued execution on these efforts as well as pricing action we've taken for next year supports a meaningful step closer to profitability in 2023, which gives us further conviction in our target of break even adjusted EBITDA in 2024."
In a call with investors, Mr. Mikan said plans are underway to raise additional outside investment to help the company reach profitability, a move he said was always planned.
According to the company's CFO Cathy Smith, Bright Health's board has created a special committee to actively raise capital.
"We have received significant interest from and are in advanced discussions with third-parties and current investors to finalize the capital raise," she said.
Six things to know:
- Revenues in the first six months of the year were $3.4 billion, a 71.6 percent increase from nearly $2 billion year over year. Second quarter revenue was $1.58 billion.
- Total annual revenue is projected to be $6.8 billion to $7.1 billion.
- Total operating expenses in the first six months of the year were $3.8 billion, increasing 85.4 percent from $2.1 billion year over year.
- The company's medical cost ratio in the second quarter was 88.8 percent.
- Net losses in the second quarter alone were $251.3 million. In the first six months of the year, the company lost nearly $432 million, a 532.7 percent difference from a net loss of $68.3 million in the first half of 2021.
- Bright HealthCare total enrollment as of June 30 was 970,000 and Medicare Advantage members stood at 120,000. There are 500,000 NeueHealth value-based members.