(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
Address of Principal Executive Office | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | The cover page from the Current Report on Form 8-K formatted in Inline XBRL. | |||||||
BRIGHT HEALTH GROUP, INC. | |||||||||||
Date: | November 9, 2022 | By: | /s/ Jeff Craig | ||||||||
Name: | Jeff Craig | ||||||||||
Title: | General Counsel and Corporate Secretary |
As of September 30, | |||||||||||
2022 | 2021 | ||||||||||
Consumer and Patient Metrics | |||||||||||
Bright HealthCare Commercial Consumers | 1,025,000 | 600,000 | |||||||||
Medicare Advantage Consumers | 125,000 | 110,000 | |||||||||
NeueHealth Value-Based Patients | 520,000 | 170,000 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
($ in thousands) | September 30, | September 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Financial Metrics | |||||||||||||||||||||||
Revenue | $ | 1,632,292 | $ | 1,078,657 | $ | 5,044,495 | $ | 3,067,055 | |||||||||||||||
Medical Cost Ratio (1) | 90.6 | % | 103.0 | % | 87.9 | % | 90.3 | % | |||||||||||||||
Operating Cost Ratio | 18.2 | % | 28.7 | % | 22.3 | % | 25.4 | % | |||||||||||||||
GAAP Net Loss (2) | $ | (259,361) | $ | (296,722) | $ | (691,320) | $ | (364,990) | |||||||||||||||
Adjusted EBITDA (non-GAAP) | $ | (82,929) | $ | (292,176) | $ | (352,620) | $ | (399,769) |
September 30, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,605,525 | $ | 1,061,179 | |||||||
Short-term investments | 299,897 | 193,835 | |||||||||
Accounts receivable, net of allowance of $7,129 and $4,074, respectively | 120,489 | 113,474 | |||||||||
Direct contracting performance year receivable | 234,776 | — | |||||||||
Prepaids and other current assets | 377,214 | 291,712 | |||||||||
Total current assets | 2,637,901 | 1,660,200 | |||||||||
Other assets: | |||||||||||
Long-term investments | 865,677 | 675,192 | |||||||||
Property, equipment and capitalized software, net | 47,938 | 38,344 | |||||||||
Goodwill | 761,285 | 835,140 | |||||||||
Intangible assets, net | 263,265 | 343,860 | |||||||||
Other non-current assets | 36,061 | 45,603 | |||||||||
Total other assets | 1,974,226 | 1,938,139 | |||||||||
Total assets | $ | 4,612,127 | $ | 3,598,339 | |||||||
Liabilities, Redeemable Noncontrolling Interest, Redeemable Preferred Stock and Shareholders’ Equity (Deficit) | |||||||||||
Current liabilities: | |||||||||||
Medical costs payable | $ | 975,126 | $ | 817,975 | |||||||
Accounts payable | 111,272 | 118,140 | |||||||||
Unearned revenue | 195,892 | 53,295 | |||||||||
Risk adjustment payable | 1,308,959 | 931,170 | |||||||||
Direct contracting performance year obligation | 155,145 | — | |||||||||
Short-term borrowings | 303,947 | 155,000 | |||||||||
Other current liabilities | 201,014 | 207,238 | |||||||||
Total current liabilities | 3,251,355 | 2,282,818 | |||||||||
Other liabilities | 33,121 | 41,994 | |||||||||
Total liabilities | 3,284,476 | 2,324,812 | |||||||||
Commitments and contingencies (Note 11) | |||||||||||
Redeemable noncontrolling interests | 211,026 | 128,407 | |||||||||
Series A redeemable preferred stock, $0.0001 par value; 100,000,000 shares authorized in 2022 and 2021; 750,000 and — shares issued and outstanding in 2022 and 2021, respectively | 747,481 | — | |||||||||
Shareholders’ equity (deficit): | |||||||||||
Common stock, $0.0001 par value; 3,000,000,000 shares authorized in 2022 and 2021; 629,915,081 and 628,622,872 shares issued and outstanding in 2022 and 2021, respectively | 63 | 63 | |||||||||
Additional paid-in capital | 2,939,820 | 2,861,243 | |||||||||
Accumulated deficit | (2,476,822) | (1,700,851) | |||||||||
Accumulated other comprehensive loss | (81,917) | (3,335) | |||||||||
Treasury Stock | (12,000) | (12,000) | |||||||||
Total shareholders’ equity (deficit) | 369,144 | 1,145,120 | |||||||||
Total liabilities, redeemable noncontrolling interests, redeemable preferred stock and shareholders’ equity (deficit) | $ | 4,612,127 | $ | 3,598,339 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Premium revenue | $ | 1,463,011 | $ | 1,020,233 | $ | 4,580,790 | $ | 2,922,950 | |||||||||||||||
Direct contracting revenue | 145,433 | — | 465,435 | — | |||||||||||||||||||
Service revenue | 12,117 | 11,079 | 37,390 | 31,602 | |||||||||||||||||||
Investment income (loss) | 11,731 | 47,345 | (39,120) | 112,503 | |||||||||||||||||||
Total revenue | 1,632,292 | 1,078,657 | 5,044,495 | 3,067,055 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Medical costs | 1,456,862 | 1,050,943 | 4,435,624 | 2,640,143 | |||||||||||||||||||
Operating costs | 297,445 | 309,790 | 1,122,964 | 779,090 | |||||||||||||||||||
Goodwill impairment | 74,165 | — | 74,165 | — | |||||||||||||||||||
Intangible assets impairment | 42,611 | — | 49,331 | — | |||||||||||||||||||
Depreciation and amortization | 13,904 | 14,205 | 40,173 | 25,981 | |||||||||||||||||||
Total operating expenses | 1,884,987 | 1,374,938 | 5,722,257 | 3,445,214 | |||||||||||||||||||
Operating loss | (252,695) | (296,281) | (677,762) | (378,159) | |||||||||||||||||||
Interest expense | 4,905 | 1,594 | 6,435 | 6,282 | |||||||||||||||||||
Other income | (2) | (1,226) | (784) | (1,226) | |||||||||||||||||||
Loss before income taxes | (257,598) | (296,649) | (683,413) | (383,215) | |||||||||||||||||||
Income tax (benefit) expense | 1,763 | 73 | 7,907 | (18,225) | |||||||||||||||||||
Net loss | (259,361) | (296,722) | (691,320) | (364,990) | |||||||||||||||||||
Net earnings attributable to noncontrolling interests | (46,710) | (3,942) | (84,651) | (5,354) | |||||||||||||||||||
Series A preferred stock dividend accrued | (9,684) | — | (28,083) | — | |||||||||||||||||||
Net loss attributable to Bright Health Group, Inc. common shareholders | $ | (315,755) | $ | (300,664) | $ | (804,054) | $ | (370,344) | |||||||||||||||
Basic and diluted loss per share attributable to Bright Health Group, Inc. common shareholders | $ | (0.50) | $ | (0.48) | $ | (1.28) | $ | (1.19) | |||||||||||||||
Basic and diluted weighted-average common shares outstanding | 629,718 | 630,378 | 629,231 | 312,294 |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (691,320) | $ | (370,344) | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 40,173 | 25,981 | |||||||||
Impairment of intangible assets | 49,331 | — | |||||||||
Impairment of goodwill | 74,165 | — | |||||||||
Share-based compensation | 77,263 | 43,234 | |||||||||
Deferred income taxes | 1,590 | (17,946) | |||||||||
Unrealized gains on equity securities | 58,821 | (109,012) | |||||||||
Other, net | 9,612 | 14,555 | |||||||||
Changes in assets and liabilities, net of acquired assets and liabilities: | |||||||||||
Accounts receivable | (7,015) | (18,683) | |||||||||
Direct contracting performance year receivable | (234,776) | — | |||||||||
Other assets | (77,551) | (86,836) | |||||||||
Medical cost payable | 157,151 | 342,531 | |||||||||
Risk adjustment payable | 377,789 | 359,257 | |||||||||
Accounts payable and other liabilities | (21,188) | 53,853 | |||||||||
Unearned revenue | 142,597 | (3,476) | |||||||||
Direct contracting performance year obligation | 155,145 | — | |||||||||
Net cash provided by operating activities | 111,787 | 233,114 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of investments | (1,422,025) | (736,838) | |||||||||
Proceeds from sales, paydown, and maturities of investments | 980,763 | 536,110 | |||||||||
Purchases of property and equipment | (21,579) | (20,682) | |||||||||
Business acquisitions, net of cash acquired | (310) | (431,718) | |||||||||
Net cash used in investing activities | (463,151) | (653,128) | |||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from short-term borrowings | 148,947 | — | |||||||||
Proceeds from issuance of preferred stock | 747,481 | — | |||||||||
Proceeds from issuance of common stock | 1,314 | 10,581 | |||||||||
Distributions to noncontrolling interest holders | (2,032) | — | |||||||||
Payments for debt issuance costs | — | (3,391) | |||||||||
Proceeds from IPO | — | 887,328 | |||||||||
Payments for IPO offering costs | — | (6,686) | |||||||||
Net cash provided by financing activities | 895,710 | 887,832 | |||||||||
Net increase in cash and cash equivalents | 544,346 | 467,818 | |||||||||
Cash and cash equivalents – beginning of year | $ | 1,061,179 | $ | 488,371 |
Bright HealthCare - Commercial | Three Months Ended | Nine months ended | |||||||||||||||||||||
($ in thousands) | September 30, | September 30, | |||||||||||||||||||||
Statements of income (loss) data: | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Premium revenue | $ | 976,568 | $ | 625,926 | $ | 3,085,066 | $ | 1,930,925 | |||||||||||||||
Investment income | 6,849 | 1,058 | 13,103 | 3,386 | |||||||||||||||||||
Total revenue | 983,417 | 626,984 | 3,098,169 | 1,934,311 | |||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Medical costs | 896,645 | 673,679 | 2,646,265 | 1,682,380 | |||||||||||||||||||
Operating costs | 161,913 | 181,808 | 701,374 | 465,680 | |||||||||||||||||||
Goodwill impairment | 4,148 | — | 4,148 | — | |||||||||||||||||||
Intangible assets impairment | — | — | 6,720 | — | |||||||||||||||||||
Depreciation and amortization | — | 145 | 145 | 290 | |||||||||||||||||||
Total operating costs | 1,062,706 | 855,632 | 3,358,652 | 2,148,350 | |||||||||||||||||||
Operating loss | $ | (79,289) | $ | (228,648) | $ | (260,483) | $ | (214,039) | |||||||||||||||
Medical Cost Ratio (MCR) | 91.8 | % | 107.6 | % | 85.8 | % | 87.1 | % |
Medicare Advantage | Three Months Ended | Nine months ended | |||||||||||||||||||||
(in thousands) | September 30, | September 30, | |||||||||||||||||||||
Statements of income (loss) and operating data: | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Premium revenue | $ | 408,939 | $ | 368,599 | $ | 1,258,846 | $ | 929,374 | |||||||||||||||
Investment income | 36 | 29 | 83 | 105 | |||||||||||||||||||
Total revenue | 408,975 | 368,628 | 1,258,929 | 929,479 | |||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Medical costs | 362,527 | 345,402 | 1,157,528 | 905,816 | |||||||||||||||||||
Operating costs | 43,291 | 50,434 | 127,986 | 119,111 | |||||||||||||||||||
Goodwill impairment | 70,017 | — | 70,017 | — | |||||||||||||||||||
Depreciation and amortization | 4,416 | 3,781 | 13,291 | 9,903 | |||||||||||||||||||
Total operating costs | 480,251 | 399,617 | 1,368,822 | 1,034,830 | |||||||||||||||||||
Operating loss | $ | (71,276) | $ | (30,989) | $ | (109,893) | $ | (105,351) | |||||||||||||||
Medical Cost Ratio (MCR) | 88.7 | % | 93.7 | % | 92.0 | % | 97.5 | % |
NeueHealth | Three Months Ended | Nine months ended | |||||||||||||||||||||
(in thousands) | September 30, | September 30, | |||||||||||||||||||||
Statements of income (loss) and operating data: | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Premium revenue | $ | 328,135 | $ | 156,990 | $ | 1,059,597 | $ | 221,836 | |||||||||||||||
Direct Contracting revenue | 145,433 | — | 465,435 | — | |||||||||||||||||||
Service revenue | 23,615 | 19,556 | 72,387 | 54,809 | |||||||||||||||||||
Investment income (loss) | 4,846 | 46,258 | (52,306) | 109,012 | |||||||||||||||||||
Total revenue | 502,029 | 222,804 | 1,545,113 | 385,657 | |||||||||||||||||||
Operating costs | |||||||||||||||||||||||
Medical costs | 447,604 | 163,279 | 1,453,985 | 211,176 | |||||||||||||||||||
Operating costs | 42,448 | 38,650 | 133,926 | 86,008 | |||||||||||||||||||
Intangible assets impairment | 42,611 | — | 42,611 | — | |||||||||||||||||||
Depreciation and amortization | 6,913 | 9,563 | 20,572 | 14,362 | |||||||||||||||||||
Total operating costs | 539,576 | 211,492 | 1,651,094 | 311,546 | |||||||||||||||||||
Operating loss | $ | (37,547) | $ | 11,312 | $ | (105,981) | $ | 74,111 | |||||||||||||||
Medical Cost Ratio (MCR) | 94.5 | % | 104.0 | % | 95.3 | % | 95.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
($ in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net loss | $ | (259,361) | $ | (296,722) | $ | (691,320) | $ | (364,990) | |||||||||||||||
Interest expense | 4,905 | 1,594 | 6,435 | 6,282 | |||||||||||||||||||
Income tax (benefit) expense | 1,763 | 73 | 7,907 | (18,225) | |||||||||||||||||||
Depreciation and amortization | 13,904 | 14,205 | 40,173 | 25,981 | |||||||||||||||||||
Goodwill impairment | 74,165 | — | 74,165 | — | |||||||||||||||||||
Intangible assets impairment | 42,611 | — | 49,331 | — | |||||||||||||||||||
Transaction costs (a) | 7 | 448 | 417 | 5,598 | |||||||||||||||||||
Share-based compensation expense (b) | 24,122 | 24,180 | 77,263 | 43,234 | |||||||||||||||||||
Change in fair value of equity securities (c) | 12,189 | (46,258) | 69,340 | (109,012) | |||||||||||||||||||
Change in fair value of contingent consideration (d) | — | 304 | — | 1,363 | |||||||||||||||||||
Contract termination costs (e) | — | 10,000 | 1,241 | 10,000 | |||||||||||||||||||
Restructuring costs (f) | 2,766 | — | 12,428 | — | |||||||||||||||||||
Adjusted EBITDA | $ | (82,929) | $ | (292,176) | $ | (352,620) | $ | (399,769) |
Cover Page |
Nov. 04, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K/A |
Document Period End Date | Nov. 04, 2022 |
Entity Registrant Name | Bright Health Group, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-40537 |
Entity Tax Identification Number | 47-4991296 |
Entity Address, Address Line One | 8000 Norman Center Drive Suite 900 |
Entity Address, City or Town | Minneapolis |
Entity Address, State or Province | MN |
Entity Address, Postal Zip Code | 55437 |
City Area Code | 612 |
Local Phone Number | 238-1321 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.0001 per share |
Trading Symbol | BHG |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001671284 |
Amendment Flag | false |
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