P • U • L • S • E - Value-Based Care - Newsletter
The common factor among these organizations is vertical integration of the health care delivery system, especially at the primary care level, with the insurance-like property of bearing the risk of health care cost variances. From a corporate finance perspective, the monthly annual payments lowers providers’ operating risks, allowing them to finance future growth.
Each week subscribers will receive a PDF containing the P • U • L • S • E - Value-Based Care newsletter along with an Excel file of financial tables for the week. The data is updated weekly based on Press Releases and SEC filings.
Universe of Companies
The publication features financial analysis of public companies that compete in the Value-Based Care sector. The companies covered in this publication are agilon, Oak Street Health, One Medical, Cano Health and Privia Health.
Capital Cost Focus
Published weekly for timeliness, PULSE - Value-Based Care reports on such capital cost metrics as price per member, price-to-sales, price earnings multiples and price-to-operating earnings multiples. We offer succinct commentary on the trends, noting especially the relative importance of market sentiment versus changes in performance. To assure broad usefulness, earnings and other financial attributes are intelligently rendered to eliminate the effects of non-recurring or unusual costs such as reserve adjustments.
Operational Trend Focus
It also reports on trends in membership, prices, revenues and earnings growth. It shows trends in medical loss ratios, administrative expense to premium ratios and balance sheet ratios. These ratios parallel those in all health plans regardless of their size or corporate form.
Insights to the Relationship Between Capital Costs and Operational Trends
Sherlock Company seeks to provide insight based on the years of health plan experience to the Value-Based Care companies. Our understanding of payor’s administration and payor relationships with providers makes this publication unique.
We endeavor to link capital costs to operational performance. Thus, one especially illuminating exhibit shows the interaction between operating performance trends and valuation metrics. Since operating performance and capital costs are highly correlated, we show the correlations in each publications. So, for instance, PULSE - Value-Based Care publishes the regression line (along with R2 and P-Value) for the relationship between Price-to-Sales and Operating Profit Margin, along with other similar analyses. In each of these, we also identify the individual firms so that readers can identify outliers.
This section includes a four-page printed spreadsheet with detailed financial data for every public HMO company. Financial data reported each month includes:
- Valuation Ratios - including Price / Earnings, Price / Future Expected Earnings, Price-to-Sales, Price per Member, Price to Net Worth
- Operating Statistics - such as revenue, premiums PMPM, membership, operating earnings, net earnings and earnings per share
- Operating Ratios - including medical loss ratios, care margin to revenue, revenue per center, administrative expense to premium ratios and operating margin
- Balance Sheet Data - such as long-term debt, equity, working capital, intangibles
- Balance Sheet Ratios - consisting of debt to capital, return on equity, net worth per share, days of claims payable
PULSE - Value-Based Care - looks at a key topic affecting the Value-Based Care industry through a detailed analysis.