Tue, Nov 12, 9:30 PM (238 days ago)
P3 Health Partners Inc. (PIII) reported significant financial challenges in its Q3 2024 10-Q filing, ending September 30, 2024. The company recorded a net loss of $102.9 million for the quarter, up from $37.3 million in Q3 2023, with total operating revenue increasing 26% to $362.1 million, driven by a 22% rise in at-risk members. Medical expenses surged 44% to $401.9 million, primarily due to increased member demand and the addition of nine counties under contract. The premium deficiency reserve shifted to an expense of $18.2 million, reflecting anticipated future losses. P3's cash and restricted cash rose to $68.1 million, bolstered by a $15 million deposit related to a pending asset sale in Florida. However, ongoing operating losses and a substantial doubt about its ability to continue as a going concern were highlighted, necessitating potential capital raising efforts. The company is in compliance with its debt covenants but faces risks related to Nasdaq listing requirements. The report underscores uncertainties in operational scalability and financial sustainability amidst aggressive growth strategies.