10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-40332

agilon health, inc.

(Exact name of registrant as specified in its charter)

Delaware	37-1915147
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

6210 E Hwy 290, Suite 450

Austin, TX 78723

(Address of principal executive offices)

(562) 256-3800

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	AGL	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☐	Accelerated Filer	☐
Non-accelerated Filer	☒	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YES ☐ NO ☒

At April 30, 2022, there were 406,730,863 shares of the registrant’s $0.01 par value common stock outstanding.

agilon health, inc.

INDEX

PART I. FINANCIAL INFORMATION
Item 1.	Unaudited Financial Statements:
	Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2022 and 2021	4
	Condensed Consolidated Statements of Contingently Redeemable Common Stock and Stockholders’ Equity (Deficit) for the Three Months Ended March 31, 2022 and 2021	5
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	6
	Notes to the Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	32
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 6.	Exhibits	34
Signatures		35

2

agilon health, inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

	March 31, 2022			December 31, 2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	1,021,754		$	1,040,039
Restricted cash and equivalents		14,470			14,781
Receivables, net		571,869			293,407
Prepaid expenses and other current assets, net		19,847			18,968
Total current assets		1,627,940			1,367,195
Property and equipment, net		12,526			9,161
Intangible assets, net		53,709			55,398
Goodwill		41,540			41,540
Other assets, net		119,496			112,958
Total assets	$	1,855,211		$	1,586,252
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Medical claims and related payables	$	472,323		$	239,014
Accounts payable and accrued expenses		133,138			112,946
Current portion of long-term debt		5,000			5,000
Total current liabilities		610,461			356,960
Long-term debt, net of current portion		42,172			43,401
Other liabilities		91,101			94,295
Total liabilities		743,734			494,656
Commitments and contingencies
Stockholders' equity (deficit):
Common stock, $0.01 par value: 2,000,000 shares authorized;    405,727 and 400,095 shares issued and outstanding, respectively		4,057			4,001
Additional paid-in capital		2,064,242			2,045,572
Accumulated deficit		(956,447	)		(957,677	)
Total agilon health, inc. stockholders' equity (deficit)		1,111,852			1,091,896
Noncontrolling interests		(375	)		(300	)
Total stockholders’ equity (deficit)		1,111,477			1,091,596
Total liabilities and stockholders’ equity (deficit)	$	1,855,211		$	1,586,252

The condensed consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”) as agilon health, inc., together with its consolidated subsidiaries and variable interest entities (the “Company”), is the primary beneficiary of these VIEs. The condensed consolidated balance sheets include total assets that can only be used to settle obligations of the Company’s consolidated VIEs totaling $712.6 million and $420.5 million as of March 31, 2022 and December 31, 2021, respectively, and total liabilities of the Company’s consolidated VIEs for which creditors do not have recourse to the general credit of the primary beneficiary of $535.9 million and $282.0 million as of March 31, 2022 and December 31, 2021, respectively. See Note 13 for additional details.

See accompanying Notes to the Condensed Consolidated Financial Statements.

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agilon health, inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

	Three Months Ended March 31,
	2022			2021
Revenues:
Medical services revenue	$	652,423		$	412,412
Other operating revenue		1,022			692
Total revenues		653,445			413,104
Expenses:
Medical services expense		566,208			360,354
Other medical expenses		44,773			23,661
General and administrative (including noncash stock-based compensation    expense of $3,970 and $1,472, respectively)		39,834			37,777
Depreciation and amortization		3,373			3,427
Total expenses		654,188			425,219
Income (loss) from operations		(743	)		(12,115	)
Other income (expense):
Other income (expense), net		2,269			1,336
Interest expense		(871	)		(2,941	)
Income (loss) before income taxes		655			(13,720	)
Income tax benefit (expense)		71			(16	)
Income (loss) from continuing operations		726			(13,736	)
Discontinued operations:
Income (loss) before income taxes		429			(1,351	)
Income tax benefit (expense)		—			(64	)
Total discontinued operations		429			(1,415	)
Net income (loss)		1,155			(15,151	)
Noncontrolling interests’ share in (earnings) loss		75			73
Net income (loss) attributable to common shares	$	1,230		$	(15,078	)
Net income (loss) per common share, basic and diluted
Continuing operations	$	—		$	(0.04	)
Discontinued operations	$	—		$	(0.01	)
Weighted average shares outstanding
Basic		401,964			325,659
Diluted		424,065			325,659

See accompanying Notes to the Condensed Consolidated Financial Statements.

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agilon health, inc.

CONDENSED CONSOLIDATED STATEMENTS OF CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)

(in thousands)

(unaudited)

For the three months ended March 31, 2022:

	Total Stockholders’ Equity
	Common Stock				Additional Paid-In		Accumulated			Noncontrolling			Total Stockholders’ Equity
	Shares		Amount		Capital		Deficit			Interest			(Deficit)
January 1, 2022		400,095	$	4,001	$	2,045,572	$	(957,677	)	$	(300	)	$	1,091,596
Net income (loss)		—		—		—		1,230			(75	)		1,155
Exercise of stock options    and other, net		5,632		56		14,700		—			—			14,756
Stock-based compensation    expense		—		—		3,970		—			—			3,970
March 31, 2022		405,727	$	4,057	$	2,064,242	$	(956,447	)	$	(375	)	$	1,111,477

For the three months ended March 31, 2021:

	Contingently Redeemable  Common Stock				Total Stockholders’ Equity
					Common Stock				Additional Paid-In		Accumulated			Noncontrolling			Total Stockholders’ Equity
	Shares		Amount		Shares		Amount		Capital		Deficit			Interests			(Deficit)
January 1, 2021		76,201	$	309,500		249,374	$	2,494	$	263,966	$	(551,190	)	$	—		$	(284,730	)
Net income (loss)		—		—		—		—		—		(15,078	)		(73	)		(15,151	)
Exercise of stock options    and other, net		—		—		100		—		165		—			—			165
Stock-based compensation    expense		—		—		—		—		1,472		—			—			1,472
March 31, 2021		76,201	$	309,500		249,474	$	2,494	$	265,603	$	(566,268	)	$	(73	)	$	(298,244	)

See accompanying Notes to the Condensed Consolidated Financial Statements.

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agilon health, inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Three Months Ended March 31,
	2022			2021
Cash flows from operating activities:
Net income (loss)	$	1,155		$	(15,151	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		3,373			3,481
Stock-based compensation expense		3,970			1,472
Loss on debt extinguishment		—			1,186
Loss (income) from equity method investments		(2,033	)		3
Other noncash items		556			1,763
Changes in operating assets and liabilities		(30,254	)		(33,582	)
Net cash provided by (used in) operating activities		(23,233	)		(40,828	)
Cash flows from investing activities:
Purchase of property and equipment, net		(4,049	)		(178	)
Purchase of intangible assets		(1,000	)		(3,986	)
Investment in loans receivable and other		(4,503	)		(1,204	)
Proceeds from repayment of loans receivable and other		183			—
Proceeds from sale of business and property, net of cash divested		500			(3,706	)
Net cash provided by (used in) investing activities		(8,869	)		(9,074	)
Cash flows from financing activities:
Proceeds from exercise of stock options		14,756			165
Proceeds from the issuance of long-term debt		—			100,000
Repayments of long-term debt		(1,250	)		(68,649	)
Debt issuance costs		—			(1,218	)
Net cash provided by (used in) financing activities		13,506			30,298
Net increase (decrease) in cash, cash equivalents and restricted cash and equivalents		(18,596	)		(19,604	)
Cash, cash equivalents and restricted cash and equivalents from    continuing operations, beginning of period		1,054,820			135,178
Cash, cash equivalents and restricted cash and equivalents from    discontinued operations, beginning of period		—			3,917
Cash, cash equivalents and restricted cash and equivalents,    beginning of period		1,054,820			139,095
Cash, cash equivalents and restricted cash and equivalents, end of period	$	1,036,224		$	119,491

See accompanying Notes to the Condensed Consolidated Financial Statements.

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agilon health, inc.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. Business

Description of Business

agilon health, inc., through its partnerships and platform, provides the necessary capabilities, capital, and business model for existing physician groups to create a Medicare-centric, globally capitated line of business. As of March 31, 2022, the Company, through its contracted physician networks, provided care to approximately 250,300 Medicare Advantage members enrolled with private health plans. Beginning January 1, 2022, the Company expanded its operations into: (i) Syracuse, New York, (ii) Grand Rapids and Traverse City, Michigan; (iii) Pinehurst, North Carolina; and (iii) Longview and Texarkana, Texas, along with additional partnerships in the Company’s existing Ohio markets. Beginning January 1, 2022, the Company also began operating three additional Direct Contracting Entities (“DCE”) that, in collaboration with four of its physician group partners, are participating in the Center for Medicare & Medicaid Services Innovation Center’s Direct Contracting Model, which is being redesigned and renamed the Accountable Care Organization Realizing Equity, Access, and Community Health (“ACO REACH”) beginning in 2023.

See Note 13 for additional discussions related to the Company’s involvement with VIEs.

The Company is ultimately controlled by an investment fund associated with Clayton Dubilier & Rice, LLC (“CD&R”), a private equity firm headquartered in New York, New York. All funds affiliated with CD&R are considered related parties.

NOTE 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information.

The condensed consolidated financial statements include the accounts of agilon health, inc., its wholly-owned subsidiaries, and both joint ventures and VIEs that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. All adjustments (consisting of normal recurring adjustments unless otherwise indicated), which the Company considers necessary to present fairly its financial position, results of operations, and cash flows, have been included. Operating results for the three months ended March 31, 2022, including the impact of COVID-19, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”).

Use of Estimates

Management is required to make estimates and assumptions in the preparation of financial statements. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates can include, among other things, those used to determine revenues and related receivables from risk adjustments, medical services expense and related payables (including the reserve for incurred but not reported (“IBNR”) claims), and the valuation and related recognition of impairments of long-lived assets, including goodwill. Management’s estimates for revenue recognition, medical services expense, and other estimates, judgments, and assumptions, may be materially and adversely different from actual results as a result of the COVID-19 pandemic, among other things. See Note 8 for additional discussion on the impact of the COVID-19 pandemic. These estimates are based on knowledge of current events and anticipated future events, and accordingly, actual results may ultimately differ materially from those estimates.

Goodwill and Amortizable Intangible Assets

As of both March 31, 2022 and December 31, 2021, goodwill of $39.0 million was allocated to the Company’s Hawaii reporting unit, which had a negative carrying value.

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As of March 31, 2022 and December 31, 2021, the Company’s gross carrying amount of amortizable intangible assets was $109.7 million and $108.7 million, with accumulated amortization of $56.0 million and $53.3 million, respectively. For the three months ended March 31, 2022 and 2021, the Company recognized $2.7 million and $2.8 million, respectively, in amortization expense, which is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Property and Equipment

As of March 31, 2022 and December 31, 2021, the Company’s gross carrying amount of property and equipment was $21.4 million and $17.4 million, with accumulated depreciation of $8.9 million and $8.2 million, respectively. For the three months ended March 31, 2022 and 2021, the Company recognized $0.7 million and $0.6 million, respectively, in depreciation expense, which is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Income Taxes

The Company determined the income tax provision for interim periods using an estimate of the Company’s annual effective tax rate, applied to year-to-date results, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimated annual effective tax rate, and if the estimated annual effective tax rate changes, a cumulative catch-up adjustment is recorded in that quarter. The Company applied the intra-period tax allocation rules to allocate income taxes between continuing operations and discontinued operations as prescribed in U.S. GAAP, where the tax effect of income (loss) before income taxes from continuing operations is computed without regard to the tax effects of income (loss) before income taxes from the other categories.

NOTE 3. Revenue, Receivables, and Concentration of Credit Risk

Medical Services Revenue

Medical services revenue consists of capitation fees under contracts with various Medicare Advantage payors (“payors”). Under the typical capitation arrangement, the Company is entitled to monthly per-member, per-month (“PMPM”) fees to provide a defined range of healthcare services for Medicare Advantage health plan members (“members”) attributed to the Company’s contracted primary care physicians. PMPM fees are determined as a percent of the premium payors receive from the Centers for Medicare & Medicaid Services’ (“CMS”) for these members. The Company generally accepts full financial risk for members attributed to its contracted primary care physicians and therefore is responsible for the cost of all healthcare services required by those members. Fees are generally recorded gross in revenue because the Company is acting as a principal in coordinating and controlling the range of services provided (other than clinical decisions) under its capitation contracts with payors. Capitation contracts with payors are generally multi-year arrangements and have a single performance obligation that constitutes a series, as defined by Accounting Standards Codification ("ASC") 606, Revenue From Contracts With Customers, to stand ready on a monthly basis to provide all aspects of necessary medical care to members for the contracted period. The Company recognizes revenue in the month in which eligible members are entitled to receive healthcare benefits during the contract term.

The transaction price for the Company’s capitation contracts is variable, as the PMPM fees to which the Company is entitled are subject to periodic adjustment under CMS’s risk adjustment payment methodology. CMS deploys a risk adjustment model that determines premiums paid to all payors according to each member’s health status and certain demographic factors. Under this risk adjustment methodology, CMS calculates the risk adjusted premium payment using diagnosis data from various settings. The Company and healthcare providers collect and submit the necessary and available diagnosis data to payors and such data is utilized by the Company to estimate risk adjustment payments to be received in subsequent periods. Risk adjustment-related revenues are estimated using the most likely amount methodology and amounts are only included in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur once any uncertainty is resolved. PMPM fees are also subject to adjustment for incentives or penalties based on the achievement of certain quality metrics defined in the Company’s contracts with payors. The Company recognizes incentive revenue as earned using the most likely amount methodology and only to the extent that it is probable that a significant reversal of cumulative revenue will not occur once any uncertainty is resolved.

Neither the Company nor any of its affiliates is a registered insurance company because state law in the states in which it operates does not require such registration for risk-bearing providers.

Receivables

Receivables primarily consist of amounts due under capitation contracts with various payors. Receivables due under capitation contracts are recorded monthly based on reports received from payors and management’s estimate of risk adjustment payments to be received in subsequent periods for open performance years. Receivables are recorded and stated at the amount expected to be collected.

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Concentration

The Company is economically dependent on maintaining a base of primary care and specialty care physicians as well as capitation contracts with payors. The loss of certain of those contracts could have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

The Company contracts with various payors whereby the Company is entitled to monthly PMPM fees to provide a defined range of healthcare services for members attributed to its contracted primary care physicians. The Company generally accepts full financial risk for such members and therefore is responsible for the cost of all healthcare services required by them. Substantially all of the Company’s receivable balances are from a small number of payors.

Revenue from Medicare Advantage constitutes substantially all of the Company’s total revenue, accounting for nearly 100% of the Company’s total revenues for the three months ended March 31, 2022 and 2021.

The following table provides the Company’s revenue concentration with respect to major payors as a percentage of the Company’s total revenues:

	Three Months Ended March 31,
	2022			2021
Payor A		25	%		28	%
Payor B		19	%		21	%
Payor C		14	%		12	%
Payor D	*				10	%

* Less than 10% of total revenues.

The following table provides the Company’s concentration of credit risk with respect to major payors as a percentage of receivables, net:

	March 31, 2022			December 31, 2021
Payor A		14	%		18	%
Payor B		21	%		21	%
Payor C		15	%		14	%
Payor D		12	%		12	%

NOTE 4. Other Assets, net

The following table summarizes the Company’s other assets, net (in thousands):

	March 31, 2022		December 31, 2021
Loans to physician partners	$	78,686	$	76,821
Indemnification assets		2,117		2,107
Health plan deposits		11,728		11,523
Equity method investments(1)		11,236		6,690
Right-of-use assets		12,042		11,739
Other		3,687		4,078
	$	119,496	$	112,958

(1)See Note 13 for additional discussion related to the Company's equity method investments.

Loans to Physician Partners

The Company provided loans to its physician partners in connection with taxes payable on shares distributed to them in connection with the initial public offering ("IPO"). These loans mature between 2026 and 2031 with nominal interest compounding annually and no prepayment penalties. Such loans are stated at the amount expected to be collected.

9

Indemnification Assets

Indemnification assets have been established to offset certain pre-closing liabilities for which the prior owners of some of the Company’s California subsidiaries are obligated to indemnify the Company. The Company deems the amounts receivable under the indemnification agreements to be fully collectible should indemnification claims arise, and, as such, a valuation allowance is not deemed necessary.

NOTE 5. Medical Claims and Related Payables

Medical services expense represents costs incurred for medical services provided to members by physicians, hospitals and other ancillary providers for which the Company is financially responsible and that are paid either directly by the Company or by payors with whom the Company has contracted. Medical services expenses are recognized in the period in which services are provided and include estimates of claims that have been incurred but have either not yet been received, processed, or paid and as such, not reported.

Such estimates are developed using actuarial methods commonly used by health insurance actuaries that include a number of factors and assumptions including medical service utilization trends, changes in membership, observed medical cost trends, historical claim payment patterns and other factors. Generally, for the most recent months, the Company estimates claim costs incurred by applying observed medical cost trend factors to the average PMPM medical costs incurred in prior months for which more complete claims data are available.

Each period, the Company re-examines previously established medical claims payable estimates based on actual claim submissions and other changes in facts and circumstances. As more complete claims information becomes available, the Company adjusts its estimates and recognizes those changes in estimates in the period in which the change is identified. The difference between the estimated liability and the actual settlements of claims is recognized in the period the claims are settled. The Company’s medical claims payable balance represents management’s best estimate of its liability for unpaid medical costs as of March 31, 2022 and December 31, 2021. The Company uses judgment to determine the appropriate assumptions for developing the required estimates.

The following table presents the components of changes in medical claims and related payables (in thousands):

	March 31,
	2022			2021
Medical claims and related payables, beginning of the year	$	239,014		$	164,161
Components of incurred costs related to:
Current year		561,478			359,988
Prior years		4,730			366
Discontinued operations - current year		—			1,229
Discontinued operations - prior years		(85	)		(591	)
		566,123			360,992
Claims paid related to:
Current year		(167,526	)		(112,968	)
Prior years		(165,316	)		(131,363	)
Discontinued operations - current year		—			(298	)
Discontinued operations - prior year		28			(3,540	)
		(332,814	)		(248,169	)
Medical claims and related payables, end of the period	$	472,323		$	276,984

Medical claims and related payables presented in the periods above include immaterial balances related to claims liabilities associated with certain divested California businesses for which the Company has retained the liability for claims incurred prior to the date of divestiture.

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NOTE 6. Other Liabilities

The following table summarizes the Company’s other liabilities (in thousands):

	March 31, 2022		December 31, 2021
Other long-term contingencies	$	67,390	$	71,344
Reserve for uncertain tax positions		2,117		2,107
Lease liabilities, long-term		8,268		7,904
Equity method liabilities – DCEs		7,234		6,380
Other		6,092		6,560
	$	91,101	$	94,295

As of March 31, 2022 and December 31, 2021, the Company’s accruals for contingent liabilities related to unasserted claims were $67.4 million and $71.3 million, respectively. The accrued amounts represent the Company’s estimate of probable losses in accordance with ASC Topic 450, Contingencies. The Company’s estimate of the range of reasonably possible losses in excess of such accruals was $0 to $37.3 million as of March 31, 2022.

See Note 13 for equity method liabilities related to the Company's DCE investments.

NOTE 7. Debt

On February 18, 2021, the Company executed a credit facility agreement (as amended by the First Amendment to Credit Agreement, dated as of March 1, 2021, the “Credit Facilities”). The Credit Facilities include: (i) a $100.0 million secured term loan (the “Secured Term Loan Facility”) and (ii) a $100.0 million senior secured revolving credit facility (the “Secured Revolving Facility”) with a capacity to issue standby letters of credit in certain circumstances up to a maximum of $80.0 million. Subject to specified conditions and receipt of commitments, the Secured Term Loan Facility may be expanded (or a new term loan facility, revolving credit facility or letter of credit facility added) by up to (i) $50.0 million plus (ii) an additional amount determined in accordance with a formula tied to repayment of certain of the Company’s indebtedness. The proceeds from the Secured Term Loan Facility were used to refinance an aggregate of $68.6 million of outstanding indebtedness under the prior credit facility and unsecured debt, with the remaining $30.1 million of net proceeds used for working capital and other general corporate purposes. In connection with the refinance of the existing debt, the Company recognized $1.1 million of additional interest expense for the write-off of the related debt issuance costs. The Secured Term Loan Facility required, among other things, a mandatory prepayment of $50.0 million if gross proceeds from the IPO exceeded $1.0 billion. On April 26, 2021, the Company repaid $50.0 million of the Secured Term Loan Facility. The maturity date of the Credit Facilities is February 18, 2026, with mandatory periodic payments.

As of March 31, 2022, the Company had $47.5 million outstanding under the Secured Term Loan Facility and availability under the Secured Revolving Facility was $49.9 million, as the Company had outstanding letters of credit totaling $50.1 million, of which $26.5 million was for the Company's DCE investments. The standby letters of credit are automatically extended without amendment for one-year periods, unless the Company notifies the institution in advance of the expiration date that the letter will be terminated. No amounts have been drawn on the outstanding letters of credit as of March 31, 2022.

At the Company’s option, borrowings under the agreement, can be either: (i) LIBO Rate Loans or (ii) Base Rate Loans. LIBO Rate Loans bear interest at a rate equal to the sum of 4.00% (stepping down to 3.50% on and following October 1, 2023) and the higher of (a) LIBO, as defined in the credit agreement, and (b) 0%. Base Rate Loans bear interest at a rate equal to the sum of 3.00% (stepping down to 2.50% on and following October 1, 2023) and the highest of: (a) 0.50% in excess of the overnight federal funds rate, (b) the prime rate established by the administrative agent from time to time, (c) the one-month LIBO rate (adjusted for maximum reserves) plus 1.00% and (d) 0%. Additionally, the Company pays a commitment fee on the unfunded 2021 Revolving Credit Facility amount of 0.50% (stepping down to 0.375% on and following October 1, 2023). The Company must also pay customary letter of credit fees. As of March 31, 2022, the weighted average effective interest rate on the Secured Term Loan Facility was 4.55%.

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The Credit Facilities are guaranteed by certain of the Company’s subsidiaries, including those identified as VIEs, and contain customary covenants including, among other things, limitations on restricted payments including: (i) dividends and distributions from restricted subsidiaries, (ii) requirements of minimum financial ratios, and (iii) limitation on additional borrowings based on certain financial ratios. Failure to meet any of these covenants could result in an event of default under the agreement. If an event of default occurs, the lenders could elect to declare all amounts outstanding under the agreement to be immediately due and payable. As of March 31, 2022, the Company was in compliance with all covenants under the Credit Facilities.

NOTE 8. Commitments and Contingencies

Legal Proceedings

From time to time, the Company is a party to, or has a significant relationship to, legal proceedings, lawsuits, and other claims. Except as described below, the Company is not aware of any legal proceedings or claims that it believes may have, individually or taken together, a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s policy is to expense legal costs as they are incurred.

COVID-19

The Company continues to monitor and assess the estimated operating and financial impact of the COVID-19 pandemic, and as it evolves, the Company continues to process, assemble, and assess member utilization information. The COVID-19 pandemic continues to evolve and the ultimate impact on the Company's business, results of operations, financial condition and cash flows remains uncertain. During 2021 and the first quarter of 2022, overall care activity continued to increase, including a mix of temporary deferral of care activity and COVID-19 related care costs. These costs may be incurred at future points in time, and it is possible that the deferral of healthcare services, or the impact of the Company’s members (who are seniors typically with chronic conditions) being diagnosed with COVID-19, could cause additional health problems in its existing members, which could increase costs in the future. In future periods, care patterns may moderately exceed normal baselines as previously deferred care is obtained and acuity temporarily rises due to missed regular care. From time to time, health system capacity may be subject to possible increased volatility due to the pandemic. The Company cannot accurately estimate the net ultimate impact, positive or negative, to medical services expense at this time.

Given the disruption caused by COVID-19, it is unclear whether the Company’s contracted physicians will be able to document the health conditions of members as comprehensively as they did in historical periods. Because risk adjustment factors in the current period are based on the preceding year’s diagnosed disease conditions, the Company’s revenue in future periods may be adversely impacted.

The ultimate impact of the COVID-19 pandemic on the Company’s operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information that may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued business disruption. The ultimate impact of these matters to the Company and its financial condition cannot be reasonably estimated at this time.

The Company believes that its cash resources, funds from the IPO in April 2021, borrowing capacity available under the Secured Revolving Facility, and cash flow generated from operations will continue to be sufficient to withstand the financial impact of the pandemic and will enable the Company to continue to support its operations, regulatory requirements, debt repayment obligations, and geography expansion for the foreseeable future.

Regulatory Matters

The healthcare industry is subject to numerous laws and regulations of federal, state, and local governments. Violations of these laws and regulations could result in expulsion from government healthcare programs, together with the imposition of significant fines and penalties. Compliance with such laws and regulations can be subject to future government review and interpretation, as well as regulatory actions unknown or unasserted at this time.

The healthcare regulatory landscape is constantly changing. It is difficult to predict which final rules may be adopted and implemented by federal and state authorities, and if such final rules would result in any material adverse effect on the Company’s business, consolidated financial condition, results of operations, or cash flows. Management is unable to determine how any future government spending cuts will affect Medicare reimbursement. There likely will continue to be legislative and regulatory proposals at the federal and state levels directed at containing or lowering the cost of healthcare that, if adopted, could have a material adverse effect on the Company’s condensed consolidated financial statements.

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Compliance Requirements

In February 2018, the Company self-disclosed to the California Department of Managed Health Care (“DMHC”), the California Department of Health Care Services, and its affected payors certain noncompliant practices in the Company’s claims and utilization management. The Company submitted various reports in May, June, and August of 2018 and coordinated with the DMHC and certain of its payors to remediate noncompliant claims and utilization management practices and implement improvements through various corrective action plan (“CAPs”). On December 17, 2019, the Company completed substantial remediation of all known deficiencies identified by the DMHC’s audit findings. In February 2021, the Company completed divesting all of its California operations. On March 9, 2021, the Company received a set of investigative interrogatories from the DMHC pursuant to its investigation of conduct and matters described in the Company’s various reports. The interrogatories sought information concerning certain claims data and authorizations denied due to lack of medical necessity, including information regarding the health plans affected thereby. The Company responded timely to such interrogatories and provided requested information. Any adverse review, audit or investigation could result in, among other things: refunding of amounts the Company have been paid pursuant to its contracts; or the imposition of fines, penalties and other sanctions on the Company, or certain of its payors. While the Company does not expect the amount to be material, it is unable to predict the potential dollar value of recoupments or fines, penalties or other sanctions that may be imposed on the Company or the impacted payors related to the DMHC’s audit findings, if any. Per publicly available information, six out of the nine impacted payors have entered into letters of agreement with the DMHC whereby each of the payors have agreed to pay an administrative penalty related to the deficiencies. These penalties equal $0.2 million in the aggregate. At least one payor formally sought indemnification from the Company in the amount of $80,000 for penalties related to the DMHC audit findings. The Company is unable to predict the potential dollar value of claims or demands that could be asserted in the future, if any. While the Company has divested all of its California operations as of February 2021, for the Southern California and Fresno divestiture transactions the Company will continue to be responsible for any liabilities arising from the business which were incurred prior to the closing date of each transaction, including any fines, penalties and other sanctions relating to the DMHC matter described above, the payment of claims for medical services incurred prior to the effective date of each transaction, a liability for unrecognized tax benefits for which the Company is indemnified and other contingent liabilities that management currently believe are remote.

NOTE 9. Common Stock

Common Stock

As of March 31, 2022, the Company’s authorized capital stock consisted of 2.0 billion shares of common stock, par value $0.01 per share.

2022. During the three months ended March 31, 2022, the Company issued approximately 5.6 million shares of common stock primarily in connection with exercises and vesting of stock-based awards.

2021. During the three months ended March 31, 2021, the Company issued approximately 100,000 shares of common stock primarily in connection with exercises and vesting of stock-based awards.

NOTE 10. Net Income (Loss) Per Common Share

Basic net income (loss) per common share (“EPS”) is computed based upon the weighted average number of common shares outstanding. Diluted net income (loss) per common share is computed based upon the weighted average number of common shares outstanding plus the impact of common shares issuable from the assumed conversion of stock options, certain performance restricted stock units, and unvested restricted stock units. Only those instruments having a dilutive impact on basic loss per share are included in diluted loss per share during the periods presented.

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The following table illustrates the computation of basic and diluted EPS (in thousands, except per share amounts):

	Three Months Ended March 31,
	2022		2021
Numerator
Income (loss) from continuing operations	$	726	$	(13,736	)
Noncontrolling interests’ share in (earnings) loss from    continuing operations		75		73
Net income (loss) attributable to common stockholders    before discontinued operations		801		(13,663	)
Income (loss) from discontinued operations		429		(1,415	)
Net income (loss) attributable to common stockholders	$	1,230	$	(15,078	)
Denominator
Weighted average shares outstanding – basic		401,964		325,659
Weighted average shares outstanding – diluted		424,065		325,659
Net income (loss) per share attributable to    common stockholders
Net income (loss) per common share from    continuing operations, basic and diluted	$	—	$	(0.04	)
Net income (loss) per common share from    discontinued operations, basic and diluted	$	—	$	(0.01	)

Basic net income (loss) per share is the same as diluted net income (loss) per share for the three months ended March 31, 2021, as the inclusion of all potential common shares outstanding would have been antidilutive. The following table provides the weighted-average potential shares of common stock that were excluded from the calculation of diluted net income (loss) per share attributable to common stockholders because their effect would have been anti-dilutive (in thousands):

	Three Months Ended March 31,
	2022		2021
Stock options - service only condition		1,503		23,582
Equity awards - market and/or performance condition		909		17,830
Restricted stock units		89		110

NOTE 11. Discontinued Operations

Discontinued operations are a component of an entity that has either been disposed of or is deemed held-for-sale and, (i) the operations and cash flows of the component have been or will be eliminated from ongoing operations as a result of the disposal transaction, and (ii) the entity will not have any significant continuing involvement in the operations of the component after the disposal transaction.

During 2020, the Company implemented a plan to divest its California operations, which included the entirety of its Medicaid line of business, via three separate transactions with different parties. In August 2020, October 2020 and February 2021, the Company disposed of its Southern California operations, Fresno, California operations, and remaining California operations, respectively. The Company’s decision to exit California and the Medicaid line of business represented a strategic shift that had a major effect on its operations and financial results. As such, the Company’s California operations are reflected in the condensed consolidated financial statements as discontinued operations.

See Note 8 for additional details on the Company's investigative interrogatories from the DMHC.

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The results of discontinued operations are as follows (in thousands):

	Three Months Ended March 31,
	2022			2021
Revenues:
Medical services revenue	$	344		$	3,847
Other operating revenue		—			23
Total revenues		344			3,870
Expenses:
Medical services expense		(85	)		638
Other medical expenses		—			2,480
General and administrative		—			2,588
Depreciation and amortization		—			54
Income (loss) from operations		429			(1,890	)
Other income (expense), net		—			48
Gain (loss) on sale of assets		—			491
Income (loss) before income taxes		429			(1,351	)
Income tax benefit (expense)		—			(64	)
Net income (loss) from    discontinued operations	$	429		$	(1,415	)

The following table provides significant non-cash operating items for discontinued operations that are included in the condensed consolidated statements of cash flows (in thousands):

	For the Three Months Ended March 31,
	2022		2021
Non-cash operating activities from discontinued operations:
Depreciation and amortization	$	—	$	54

NOTE 12. Supplemental Cash Flow Information

The following table provides supplemental cash flow information (in thousands):

	Three Months Ended March 31,
	2022		2021
Supplemental cash flow information:
Interest paid	$	959	$	1,921
Income taxes paid		3,098		16
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use asset obtained in exchange for new operating lease liability		1,178		689
Non-cash investment in unconsolidated subsidiaries		190		—

The following table summarizes cash, cash equivalents and restricted cash equivalents from continuing operations (in thousands):

	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	1,021,754	$	1,040,039
Restricted cash and equivalents(1)		14,470		14,781
Cash, cash equivalents and restricted cash equivalents	$	1,036,224	$	1,054,820

(1)Restricted cash and equivalents primarily consist of amounts used as collateral to secure letters of credit that the Company is required to maintain pursuant to contracts with payors.

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NOTE 13. Variable Interest Entities

Consolidated Variable Interest Entities

agilon health, inc.’s consolidated assets and liabilities as of March 31, 2022 and December 31, 2021 include certain assets of VIEs that can only be used to settle the liabilities of the related VIE. The VIE creditors do not have recourse to agilon health, inc.

agilon health, inc.’s consolidated assets and liabilities include VIE assets and liabilities as follows (in thousands):

	March 31, 2022		December 31, 2021
Assets(1)
Cash and cash equivalents	$	124,303	$	104,741
Restricted cash equivalents		13,210		13,210
Receivables, net		548,462		276,590
Prepaid expenses and other current assets, net		8,042		7,046
Property and equipment, net		1,516		1,147
Intangible assets, net		6,534		7,220
Other assets, net		10,536		10,580
Liabilities(1)
Medical claims and related payables		428,847		195,812
Accounts payable and accrued expenses		102,733		81,702
Other liabilities		4,338		4,521

(1)Assets and liabilities of VIEs presented above include the assets and liabilities of the Company’s Independent Practice Associations in California, which are consolidated VIEs and whose operations are reflected in the condensed consolidated financial statements as discontinued operations.

Risk-bearing Entities. At March 31, 2022, the Company operates 18 wholly-owned risk-bearing entities (“RBEs”) for the purpose of entering into risk-bearing contracts with payors. Each RBE’s equity at risk is considered insufficient to finance its activities without additional support, and, therefore, each RBE is considered a VIE. The Company consolidates the RBEs as it has determined that it is the primary beneficiary because it has: (i) the ability to control the activities that most significantly impact the RBEs’ economic performance; and (ii) the obligation to absorb losses or right to receive benefits that could potentially be significant to the RBEs. Specifically, the Company has the unilateral ability and authority, through the RBE governance and management agreements, to make significant decisions about strategic and operating activities of the RBEs, including negotiating and entering into risk-bearing contracts with payors and approving the RBEs’ annual operating budgets. The Company also has the obligation to fund losses of the RBEs and the right to receive a significant percentage of any financial surplus generated by the RBEs. The assets of the RBEs primarily consist of cash and cash equivalents, receivables, net, intangible assets, net, and other assets, net; its obligations primarily consist of medical claims and related payables as well as operating expenses of the RBEs (accounts payable and accrued expenses), including incentive compensation obligations to the Company’s physician partners. On February 18, 2021, the Company executed the Credit Facilities, which are guaranteed by certain of the Company’s VIEs. Assets generated by the RBEs (primarily from medical services revenues) may be used, in certain limited circumstances, to settle the Company’s contractual debt obligations.

Unconsolidated Variable Interest Entities

As of March 31, 2022, the Company had 10 equity method investments (liabilities) that were deemed to be VIEs. The Company has determined that the activities that most significantly impact the performance of these VIEs consist of the allocation of resources to and other decisions related to clinical activities and provider contracting decisions. Because the Company does not have the ability to control these activities due to another party’s control of the VIEs’ board of directors, the Company has determined that it is not the primary beneficiary of and therefore does not consolidate these VIEs. The Company's maximum loss exposure as a result of the Company’s involvement with the VIEs cannot be quantified as the Company has the obligation to provide ongoing operational support to the unconsolidated VIEs, as needed.

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Equity Method Investments

The following table summarizes the Company’s equity method investments (in thousands):

	March 31, 2022			December 31, 2021
Equity method investments - Other(1)	$	8,180		$	6,690
Equity method investments - DCEs(1)		3,056			—
Equity method liabilities - DCEs(2)		(7,234	)		(6,380	)

(1)Included in Other assets, net in the consolidated balance sheets.

(2)Included in Other liabilities in the consolidated balance sheets.

The Company is a partner in eight wholly-owned DCEs in collaboration with 12 of its physician group partners operating in 10 geographies. The combined summarized operating results of the Company’s DCEs are as follows (in thousands):

	Three Months Ended March 31, 2022
Medical services revenue	$	267,713
Medical services expense		(248,351	)
Other medical expenses(1)		(12,644	)
Net income (loss)(2)		2,012

(1)For the three months ended March 31, 2022, includes physician incentive expenses of $6.2 million.

(2)Included in Other income (expense) in the consolidated statement of operations.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

All references in this report to “agilon,” “we,” “us” or “our” mean agilon health, inc., together with its consolidated subsidiaries. Unless the context suggests otherwise, references to “agilon health, inc.” mean the parent company without its subsidiaries.

Cautionary Language Regarding Forward-Looking Statements

Statements in this Quarterly Report on Form 10-Q (the “Report”) that are not historical factual statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “projects,” “is optimistic,” “intends,” “plans,” “estimates,” “anticipates,” or the negative versions of these words or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this Report and include, without limitation, statements regarding our intentions, beliefs, assumptions, or current expectations concerning, among other things, our financial position, results of operations, cash flows, prospects, and growth strategies.

Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be outside our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition, and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this Report. In addition, even if our results of operations, financial condition, and cash flows, and the development of the market in which we operate, are consistent with the forward-looking statements contained in this Report, those results or developments may not be indicative of results or developments in subsequent periods. A number of important factors, including, without limitation, the risks and uncertainties discussed under Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Report. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation:

•our history of net losses, and our ability to achieve or maintain profitability in an environment of increasing expenses;

•our ability to identify and develop successful new geographies, physician partners, and health plan payors, or to execute upon our growth initiatives;

•our ability to execute our operating strategies or to achieve results consistent with our historical performance;

•our expectation that our expenses will increase in the future and the risk that medical expenses incurred on behalf of members may exceed the amount of medical revenues we receive;

•our ability to secure contracts with Medicare Advantage (“MA”) payors or to secure MA at favorable financial terms;

•our ability to recover startup costs incurred during the initial stages of development of our physician partner relationships and program initiatives;

•our ability to obtain additional capital needed to support our business;

•significant reductions in our membership;

•challenges for our physician partners in the transition to our “Total Care Model”;

•inaccuracies in the estimates and assumptions we use to project the size, revenue, or medical expense of our target market;

•the spread of, and response to, the novel coronavirus, or COVID-19, and the inability to predict the ultimate impact on us;

•inaccuracies in the estimates and assumptions we use to project our members’ risk adjustment factors, medical services expense, incurred but not reported claims, and earnings pursuant to payor contracts;

•the impact of restrictive or exclusivity clauses in some of our contracts with physician partners that may prohibit us from establishing new risk-bearing entities (each, an “RBE”) within certain geographies in the future;

•the impact of restrictive or exclusivity clauses in some of our contracts with physician partners that may subject us to investigations or litigation;

•our ability to retain our management team and key employees or attract qualified personnel in the future;

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•our ability to realize the full value of our intangible assets and any impairment charges we have or may record;

•adverse determinations of tax matters;

•security breaches, loss of data, or other disruptions to our data platforms;

•our reliance on third parties for internet infrastructure and bandwidth to operate our business and provide services to our members and physician partners;

•our ability to protect the confidentiality of our know-how and other proprietary and internally developed information;

•our subsidiaries’ lack of performance or ability to fund their operations, which could require us to fund such losses;

•our dependence on a limited number of key health plan payors;

•the limited terms of our contracts with health plan payors and that they may not be renewed upon their expiration;

•our reliance on our health plan payors for membership attribution and assignment, data and reporting accuracy, and claims payment;

•our dependence on physician partners and other providers to effectively manage the quality and cost of care, and perform obligations under payor contracts;

•difficulties in obtaining accurate and complete diagnosis data;

•our dependence on physician partners to accurately, timely, and sufficiently document their services and potential False Claims Act or other liability if any diagnosis information or encounter data are inaccurate or incorrect;

•our reliance on third-party software and data to operate our business and provide services to our members and physician partners;

•the impact of consolidation in the healthcare industry;

•reductions in reimbursement rates or methodology applied to derive reimbursement from, or discontinuation of, federal government healthcare programs, from which we derive substantially all of our total revenue;

•uncertain or adverse economic conditions, including a downturn or decrease in government expenditures;

•the impact of government performance standards and benchmarks on our compensation and reputation;

•statutory or regulatory changes, administrative rulings, interpretations of policy, and determinations by intermediaries and governmental funding restrictions, and their impact on government funding, program coverage, and reimbursements;

•regulatory proposals directed at containing or lowering the cost of healthcare and our participation in such proposed models;

•we, our physician partners, or affiliates being subject to federal or state investigations, audits, and enforcement actions;

•regulatory inquiries and corrective action plans imposed by our health plan payors;

•repayment obligations arising out of payor audits;

•the impact on our revenue of Centers for Medicare & Medicaid Services’ (“CMS”) modifying the methodology used to determine the revenue associated with MA members;

•negative publicity regarding the managed healthcare industry;

•the extensive regulation of the healthcare industry at the federal, state, and local levels;

•our indebtedness and the potential that we may incur additional substantial indebtedness;

•our ability to compete in our competitive industry; and

•risks related to other factors discussed under “Risk Factors” in Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Except as required by law, we do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, which speak only as of the date on which they are made.

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The information set forth in this Item 2 is intended to provide readers with an understanding of our financial condition, changes in financial condition, and results of operations. We will discuss and provide our analysis in the following order:

•Overview and Recent Developments

•COVID-19 Update

•Key Financial and Operating Metrics

•Key Components of Our Results of Operations

•Results of Operations

•Non-GAAP Financial Measure

•Liquidity and Capital Resources

•Critical Accounting Policies and Estimates

•Recent Accounting Pronouncements

Overview and Recent Developments

Our business is transforming healthcare by empowering the primary care physician (“PCP”) to be the agent for change in the communities they serve. We believe that PCPs, with their intimate patient-physician relationships, are best positioned to drive meaningful change in quality, cost, and patient experience when provided with the right infrastructure and payment model. Through our combination of the agilon platform, a long-term partnership model with existing physician groups and a growing network of like-minded physicians, we are poised to revolutionize healthcare for seniors across communities throughout the United States. Our purpose-built model provides the necessary capabilities, capital, and business model for existing physician groups to create a Medicare-centric, globally capitated line of business. Our model operates by forming RBEs within local geographies, that enter into arrangements with payors providing for monthly payments to manage the total healthcare needs of our physician partners’ attributed patients (or, global capitation arrangements), contract with agilon to perform certain functions, and enter into long-term professional service agreements with one or more anchor physician groups pursuant to which the anchor physician groups receive a base compensation rate and share in the savings from successfully improving quality of care and reducing costs.

Our business model is differentiated by its focus on existing community-based physician groups and is built around three key elements: (1) agilon’s platform; (2) agilon’s long-term physician partnership approach; and (3) agilon’s network. With our model, our goal is to remove the barriers that prevent community-based physicians from evolving to a Total Care Model, where the physician is empowered to manage health outcomes and the total healthcare needs of their attributed Medicare patients.

Our platform, partnership, and network model enable our physician partners to be the quarterback for healthcare delivery in their community, and successfully operate a Medicare-centric, globally capitated line of business. This generates improving quality and cost outcomes, growing membership, and increasing medical margin per member, which we share with our physician partners pursuant to our long-term partnership model. We believe this continuous improvement in patient and physician engagement and experience leads to more PCPs joining our platform and ultimately improves the success of each physician partner on the platform. As our platform grows, we believe we will be able to leverage our scale to drive additional investment in our geographies to accelerate this flywheel for the benefit of our physician partners and their patients.

First Quarter 2022 Results:

•Medicare Advantage members of approximately 250,300 as of March 31, 2022 increased 51% from March 31, 2021.

•DCE attributed beneficiaries of approximately 91,800 as of March 31, 2022.

•Total revenue of $653 million increased 58% from the first quarter of 2021.

•Net income of $1 million, compared to a net loss of $15 million in the first quarter of 2021.

•Medical Margin of $86 million, compared to $52 million in the first quarter of 2021.

•Adjusted EBITDA of $12 million, compared to $4 million in the first quarter of 2021.

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Membership Details

Medicare Advantage members increased 51% from March 31, 2021, which includes contributions from new geographies and growth within geographies existing prior to 2022. Total members live on the platform includes 250,300 Medicare Advantage members and 91,800 attributed Direct Contracting beneficiaries.

Average Medicare Advantage membership during the first quarter 2022 was approximately 248,000, an increase of 52% from March 31, 2021.

COVID-19

Since March 2020, we have implemented precautionary measures to protect the health and safety of our employees, physicians and members in connection with the COVID-19 pandemic. Because COVID-19 infections have been reported throughout the United States, certain national, provincial, state, and local governmental authorities have issued proclamations and/or directives aimed at minimizing the spread of COVID-19. Additionally, more restrictive proclamations and/or directives may be issued in the future.

The ultimate impact of the COVID-19 pandemic on our operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information that may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or we, may direct, which may result in an extended period of continued business disruption. The ultimate impact of these matters to us and our financial condition cannot be reasonably estimated at this time.

The COVID-19 pandemic continues to evolve and the ultimate impact on our business, results of operations, financial condition, and cash flows remains uncertain. During 2021, overall care activity continued to increase, including a mix of temporary deferral of care activity and COVID-19 related care costs. These costs may be incurred at future points in time and it is possible that the deferral of healthcare services, or the impact of our members (who are seniors typically with chronic conditions) being diagnosed with COVID-19, could cause additional health problems in our existing members, which could increase costs in the future. In future periods, care patterns may moderately exceed normal baselines as previously deferred care is obtained and acuity temporarily rises due to missed regular care. From time to time, health system capacity may be subject to possible increased volatility due to the pandemic. We cannot accurately estimate the net ultimate impact, positive or negative, to medical services expense at this time.

Given the disruption caused by COVID-19, it is unclear whether our contracted physicians will be able to document the health conditions of our members as comprehensively as they did in historical periods. Because risk adjustment factors in the current period are based on the preceding year’s diagnosed disease conditions, our revenue in future periods may be adversely impacted.

Key Financial and Operating Metrics

All of our key metrics exclude historical results from our California operations (which are included as discontinued operations in our condensed consolidated financial statements).

We monitor the following key financial and operating metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. We believe the following key metrics are useful in evaluating our business (dollars in thousands):

	As of and For the
	Three Months Ended March 31,
	2022		2021		% Change
MA members		250,300		165,300		51
Medical services revenue	$	652,423	$	412,412		58
Medical margin	$	86,215	$	52,058		66
Platform support costs	$	33,813	$	28,408		19
Network contribution(1)	$	41,622	$	30,142		38
Adjusted EBITDA(1)	$	12,029	$	3,762		220

(1)Network contribution and Adjusted EBITDA are non-GAAP financial measures. See “—Non-GAAP Financial Measures” for additional information, including reconciliations to the most directly comparable GAAP measures.

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Medicare Advantage Members

Our MA members include all individuals enrolled in an MA plan that are attributed to the PCPs on our platform at the end of a given period.

Medical Services Revenue

Our medical services revenue consists of capitation revenue under contracts with various payors. Under the typical capitation arrangement, we are entitled to PMPM fees to provide a defined range of healthcare services for MA health plan members through our contracted physician partners and affiliated PCPs. Such fees are typically based on a defined percentage of corresponding premium that payors receive from CMS. We recognize capitation revenue over the period eligible members are entitled to receive healthcare services.

Medical Margin

Medical margin represents the amount earned from medical services revenue after medical services expenses are deducted. Medical services expense represents costs incurred for medical services provided to our members. As our platform matures over time, we expect medical margin to increase in absolute dollars. However, medical margin PMPM may vary as the percentage of new members brought onto our platform fluctuates. New membership added to the platform is typically dilutive to medical margin PMPM. Furthermore, in light of COVID-19, we continue to evaluate the ultimate impact of the pandemic on medical margin.

The following table presents our medical margin (dollars in thousands):

	Three Months Ended March 31,
	2022			2021
Medical services revenue	$	652,423		$	412,412
Medical services expense		(566,208	)		(360,354	)
Medical margin	$	86,215		$	52,058

Network Contribution

We define network contribution as medical services revenue less the sum of: (i) medical services expense and (ii) other medical expenses excluding costs incurred in implementing geographies. Other medical expenses consist of physician compensation expense related to surplus sharing and other direct medical expenses incurred to improve care for our members. We believe this metric provides insight into the economics of our Total Care Model, as it includes all medical services expense associated with our members’ care as well as partner compensation and additional medical costs we incur as part of our aligned partnership model. Other medical expenses are largely variable and proportionate to the level of surplus in each respective geography.

The following table presents our network contribution (dollars in thousands):

	Three Months Ended March 31,
	2022			2021
Medical services revenue	$	652,423		$	412,412
Medical services expense		(566,208	)		(360,354	)
Other medical expenses—live geographies(1)		(44,593	)		(21,916	)
Network contribution	$	41,622		$	30,142

(1)Represents physician compensation expense related to surplus sharing and other direct medical expenses incurred to improve care for our members in our live geographies. Excludes costs in geographies that are in implementation and are not yet generating revenue. For the three months ended March 31, 2022 and 2021, costs incurred in implementing geographies were $0.2 million and $1.8 million, respectively.

See “—Non-GAAP Financial Measures” for information regarding our use of network contribution and a reconciliation of income (loss) from operations to network contribution.

Platform Support Costs

Our platform support costs, which include regionally-based support personnel and other operating costs to support our geographies, are expected to decrease over time as a percentage of revenue as our physician partners add members and our revenue

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grows. Our operating expenses at the enterprise level include resources and technology to support payor contracting, clinical program development, quality, data management, finance, and legal functions.

The table below represents costs to support our live geographies and enterprise functions, which are included in general and administrative expenses (dollars in thousands):

	Three Months Ended March 31,
	2022			2021
Platform support costs	$	33,813		$	28,408
% of Revenue		5	%		7	%

Adjusted EBITDA

We define Adjusted EBITDA as net income (loss) adjusted to exclude: (i) income (loss) from discontinued operations, net of income taxes, (ii) interest expense, (iii) income tax expense (benefit), (iv) depreciation and amortization, (v) geography entry costs, (vi) stock-based compensation expense, (vii) severance and related costs, and (viii) certain other items that are not considered by us in the evaluation of ongoing operating performance. We reflect our share of Adjusted EBITDA for equity method investments by applying our actual ownership percentage for the period to the applicable reconciling items on an entity-by-entity basis. Net income (loss) is the most directly comparable GAAP measure to Adjusted EBITDA.

See “—Non-GAAP Financial Measures” for information regarding our use of Adjusted EBITDA and a reconciliation of net income (loss) to Adjusted EBITDA.

Key Components of Our Results of Operations

Revenues

Medical Services Revenue

Our medical services revenue consists of capitation revenue under contracts with various payors. Under the typical capitation arrangement, we are entitled to PMPM fees to provide a defined range of healthcare services for MA health plan members through our contracted physician partners and affiliated PCPs. Such fees are typically based on a defined percentage of corresponding premium that payors receive from CMS. We recognize capitation revenue over the period eligible members are entitled to receive healthcare services.

Medical services revenue constitutes substantially all of our total revenue, accounting for approximately 100% of our total revenues for the three months ended March 31, 2022 and 2021.

Operating Expenses

Medical Services Expense

In each of our geographies, a network of physicians, hospitals, and other healthcare providers provide care to our members. Medical services expense represents costs incurred for medical services provided to our members. Our medical services expense trends primarily relate to changes in per visit costs incurred by our members, along with changes in health system and provider utilization of services. Medical services expenses are recognized in the period in which services are provided and include estimates of our obligations for medical services that have been rendered by third parties but for which claims have either not yet been received, processed, or paid.

Other Medical Expenses

Other medical expenses include: (i) partner physician compensation expense and (ii) other provider costs. Partner physician compensation expense represents obligations to our physician partners corresponding to a portion of the surplus generated in our geographies, which is a function of medical services revenues less the sum of medical services expenses, other provider costs, and market operating costs for the respective geography. Physician payment obligations are reconciled quarterly and settlement payments are typically issued to providers on an annual basis in arrears, with interim payments issued periodically. Other provider costs include payments to support physician-patient engagement, certain other medical costs, and other care management expenses that help to create medical cost efficiency. Other provider costs include costs incurred for geographies that are in implementation and are not yet generating revenue.

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General and Administrative

General and administrative expenses consist of market-based support personnel and other operating costs to support our geographies, personnel and other operating costs to support our enterprise functions, and investments to support development and expansion of our physician partners. Our enterprise functions include salaries and related expenses, stock-based compensation (including shares issued under partner physician group equity agreements in connection with our IPO), operational support expenses, technology infrastructure, finance, and legal, as well as other costs associated with the continued growth of our platform. For the purposes of calculating physician partner incentive expense, we allocate a portion of our enterprise general and administrative expenses to our geographies.

General and administrative expenses also include severance, management fees paid to our majority shareholder prior to our IPO, and accruals for unasserted claims.

Depreciation and Amortization

Depreciation and amortization expenses are associated with our property and equipment and acquired intangible assets. Depreciation includes expenses associated with buildings, computer equipment and software, furniture and fixtures, and leasehold improvements. Amortization primarily includes expenses associated with acquired intangible assets.

Other Income (Expense)

Other Income (Expense), Net

Other income (expense), net includes the following items:

•Equity income (loss) from unconsolidated joint ventures; and

•Interest income, which consists primarily of interest earned on our cash and cash equivalents and restricted cash and cash equivalents.

Interest Expense

Interest expense consists primarily of interest expense associated with our outstanding debt, including amortization of debt discounts and costs.

Income Tax Benefit (Expense)

We are subject to corporate U.S. federal, state, and local income taxation. Deferred tax assets are reduced by a valuation allowance to the extent management believes it is not more likely than not to be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income. Management makes estimates and judgments about future taxable income based on assumptions that are consistent with our plans and estimates.

Total Discontinued Operations

Total discontinued operations consist of the results of our California operations, which include the entirety of our Medicaid line of business. For certain of our California divestiture transactions, we continue to be responsible for any liabilities arising from the business that were incurred prior to the closing date of such transaction, including any fines, penalties, and other sanctions relating to the DMHC matter, the payment of claims for medical services incurred prior to the effective date of each transaction, a liability for unrecognized tax benefits for which we are indemnified, and other contingent liabilities that we currently believe are remote. For additional discussion, see Note 11 to the Consolidated Condensed Financial Statements.

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Results of Operations

The following table summarizes key components of our results of operations (dollars in thousands):

	Three Months Ended March 31,
	2022			2021
Revenues:
Medical services revenue	$	652,423		$	412,412
Other operating revenue		1,022			692
Total revenues		653,445			413,104
Expenses:
Medical services expense		566,208			360,354
Other medical expenses		44,773			23,661
General and administrative (including noncash stock-based compensation    expense of $3,970 and $1,472, respectively)		39,834			37,777
Depreciation and amortization		3,373			3,427
Total expenses		654,188			425,219
Income (loss) from operations		(743	)		(12,115	)
Other income (expense):
Other income (expense), net		2,269			1,336
Interest expense		(871	)		(2,941	)
Income (loss) before income taxes		655			(13,720	)
Income tax benefit (expense)		71			(16	)
Income (loss) from continuing operations		726			(13,736	)
Discontinued operations:
Income (loss) from discontinued operations		429			(1,351	)
Income tax benefit (expense)		—			(64	)
Total discontinued operations		429			(1,415	)
Net income (loss)		1,155			(15,151	)
Noncontrolling interests’ share in earnings (loss)		75			73
Net income (loss) attributable to common shares	$	1,230		$	(15,078	)

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The following table summarizes our results of operations as a percentage of total revenues:

	Three Months Ended March 31,
	2022			2021
Revenues:
Medical services revenue		100	%		100		%
Other operating revenue		—			—
Total revenues		100			100
Expenses:
Medical services expense		87			87
Other medical expenses		7			6
General and administrative (including noncash stock-based compensation    expense of less than 1%)		6			9
Depreciation and amortization		1			1
Total expenses		100			103
Income (loss) from operations		—			(3	)
Other income (expense):
Other income (expense), net		—			—
Interest expense		—			(1	)
Income (loss) before income taxes		—			(3	)
Income tax benefit (expense)		—			—
Income (loss) from continuing operations		—			(3	)
Discontinued operations:
Income (loss) from discontinued operations		—			—
Income tax benefit (expense)		—			—
Total discontinued operations		—			—
Net income (loss)		—			(4	)
Noncontrolling interests’ share in earnings (loss)		—			—
Net income (loss) attributable to common shares		—	%		(4	)	%

Comparison of the Three Months Ended March 31, 2022 to the Three Months Ended March 31, 2021

Medical Services Revenue

	Three Months Ended March 31,						Change
(dollars in thousands)	2022			2021			$		%
Medical services revenue	$	652,423		$	412,412		$	240,011		58	%
% of total revenues		100	%		100	%

Medical services revenue increased for the three months ended March 31, 2022 due primarily to growth in average membership of 52%, which was attributable to six new geographies that began to generate revenue in 2022 and growth in our existing geographies. The increase in medical services revenue for the three months ended March 31, 2022 was also driven, to a lesser extent, by an increase in PMPM capitation rates of 4%.

Medical Services Expense

	Three Months Ended March 31,						Change
(dollars in thousands)	2022			2021			$		%
Medical services expense	$	566,208		$	360,354		$	205,854		57	%
% of total revenues		87	%		87	%

Medical services expense increased for the three months ended March 31, 2022 due primarily to growth in average membership of 52%, which was attributable to six new geographies that became operational in 2022 and growth in our existing geographies. The increase in medical services expense for the three months ended March 31, 2022 was also driven, to a lesser extent, by an increase in average medical services expense per member of 3%.

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Other Medical Expenses

	Three Months Ended March 31,						Change
(dollars in thousands)	2022			2021			$		%
Other medical expenses	$	44,773		$	23,661		$	21,112		89	%
% of total revenues		7	%		6	%

Other medical expenses increased by $21.1 million, or 89%, for the three months ended March 31, 2022 compared to 2021. Partner physician incentive expense increased by $16.4 million to $27.4 million in 2022 compared to $11.0 million in 2021. Other provider costs increased by $4.7 million to $17.4 million in 2022 compared to $12.7 million in 2021, resulting from the increase in the number of geographies and members on our platform. Other provider costs for the three months ended March 31, 2022 include $0.2 million of costs related to geographies that will become operational in January 2023, while other provider costs for the three months ended March 31, 2021 include $1.8 million of costs related to geographies that became operational in 2022.

General and Administrative

	Three Months Ended March 31,						Change
(dollars in thousands)	2022			2021			$		%
General and administrative	$	39,834		$	37,777		$	2,057		5	%
% of total revenues		6	%		9	%

General and administrative expenses increased $2.1 million, or 5%, for the three months ended March 31, 2022 compared to 2021. Operating costs to support our live geographies and enterprise functions (platform support costs) increased by $5.4 million to $33.8 million in 2022 compared to $28.4 million in 2021 due primarily to growth in operating costs incurred to support geographies that became operational in 2022. Operating costs to support our live geographies and enterprise functions as a percentage of revenue decreased to 5% for the three months ended March 31, 2022 compared to 7% for the same period in 2021. Investments to support geography entry increased to $3.8 million in 2022, compared to $3.2 million in 2021, due to increased costs associated with our geographies that become operational in the following calendar year. In aggregate, costs incurred for severance, stock-based compensation, fees paid to our majority shareholder, and accruals for unasserted claims and contingent liabilities decreased by $3.9 million primarily as a result of a reduction in reserves for certain contingent liabilities.

Non-GAAP Financial Measures

In addition to providing results that are determined in accordance with GAAP, we present network contribution and Adjusted EBITDA, which are non-GAAP financial measures.

We define network contribution as medical services revenue less the sum of: (i) medical services expense and (ii) other medical expenses excluding costs incurred in implementing geographies. Other medical expenses consist of physician compensation expense related to surplus sharing and other direct medical expenses incurred to improve care for our members. We believe this metric provides insight into the economics of our Total Care Model as it includes all medical services expense associated with our members’ care as well as partner compensation and additional medical costs we incur as part of our aligned partnership model. Other medical expenses are largely variable and proportionate to the level of surplus in each respective geography.

We define Adjusted EBITDA as net income (loss) adjusted to exclude: (i) income (loss) from discontinued operations, net of income taxes, (ii) interest expense, (iii) income tax expense (benefit), (iv) depreciation and amortization, (v) geography entry costs, (vi) stock-based compensation expense, (vii) severance and related costs, and (viii) certain other items that are not considered by us in the evaluation of ongoing operating performance. We reflect our share of Adjusted EBITDA for equity method investments by applying our actual ownership percentage for the period to the applicable reconciling items on an entity-by-entity basis.

Income (loss) from operations is the most directly comparable GAAP measure to network contribution. Net income (loss) is the most directly comparable GAAP measure to Adjusted EBITDA.

We believe network contribution and Adjusted EBITDA help identify underlying trends in our business and facilitate evaluation of period-to-period operating performance of our live geographies by eliminating items that are variable in nature and not considered by us in the evaluation of ongoing operating performance, allowing comparison of our recurring core business operating results over

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multiple periods. We also believe network contribution and Adjusted EBITDA provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics we use for financial and operational decision-making. We believe network contribution and Adjusted EBITDA or similarly titled non-GAAP measures are widely used by investors, securities analysts, ratings agencies, and other parties in evaluating companies in our industry as a measure of financial performance. Other companies may calculate network contribution and Adjusted EBITDA or similarly titled non-GAAP measures differently from the way we calculate these metrics. As a result, our presentation of network contribution and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, limiting their usefulness as comparative measures.

Adjusted EBITDA is not considered a measure of financial performance under GAAP, and the items excluded therefrom are significant components in understanding and assessing our financial performance. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as an alternative to such GAAP measures as net income (loss), cash flows provided by or used in operating, investing, or financing activities or other financial statement data presented in our consolidated financial statements as an indicator of financial performance or liquidity. Some of these limitations are:

•Adjusted EBITDA does not reflect changes in, or cash requirements for, working capital needs;

•Adjusted EBITDA does not reflect interest expense or the requirements necessary to service interest or principal payments on debt;

•Adjusted EBITDA does not reflect income tax expense (benefit) or the cash requirements to pay taxes;

•Adjusted EBITDA does not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;

•Although depreciation and amortization charges are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements; and

•The expenses and other items that we exclude in our calculation of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from similarly titled non-GAAP financial measures.

The following table sets forth a reconciliation of income (loss) from operations to network contribution using data derived from our condensed consolidated financial statements for the periods indicated (dollars in thousands):

	Three Months Ended March 31,
	2022			2021
Income (loss) from operations	$	(743	)	$	(12,115	)
Other operating revenue		(1,022	)		(692	)
Other medical expenses		44,773			23,661
Other medical expenses—live geographies(1)		(44,593	)		(21,916	)
General and administrative		39,834			37,777
Depreciation and amortization		3,373			3,427
Network contribution	$	41,622		$	30,142

(1)Represents physician compensation expense related to surplus sharing and other direct medical expenses incurred to improve care for our members in our live geographies. Excludes costs in geographies that are in implementation and are not yet generating revenue. For the three months ended March 31, 2022 and 2021, costs incurred in implementing geographies were $0.2 million and $1.8 million, respectively.

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The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA using data derived from our condensed consolidated financial statements for the periods indicated (dollars in thousands):

	Three Months Ended March 31,
	2022			2021
Net income (loss)	$	1,155		$	(15,151	)
(Income) loss from discontinued operations, net of income taxes		(429	)		1,415
Interest expense		871			2,941
Income tax expense (benefit)		(71	)		16
Depreciation and amortization		3,373			3,427
Geography entry costs(1)		3,984			4,967
Severance and related costs(2)		1,702			454
Management fees(3)		—			375
Stock-based compensation expense		3,970			1,472
EBITDA adjustments related to equity method investments		1,171			—
Other(4)		(3,697	)		3,846
Adjusted EBITDA	$	12,029		$	3,762

(1)Represents direct geography entry costs, including investments to develop and expand our platform and costs in geographies that are in implementation and are not yet generating revenue. For the three months ended March 31, 2022 and 2021, (i) $0.2 million and $1.8 million, respectively, are included in other medical expenses and (ii) $3.8 million and $3.2 million, respectively, are included in general and administrative expenses.

(2)For the three months ended March 31, 2022, includes taxes and related costs on stock option exercises for departed executives of $1.2 million.

(3)Represents management fees and other expenses paid to Clayton Dubilier & Rice, LLC (“CD&R”). In connection with our initial public offering, we terminated our consulting agreement with CD&R, effective April 16, 2021. We were not charged a fee in connection with the termination of this agreement.

(4)Includes changes in non-cash accruals for unasserted claims and contingent liabilities.

Liquidity and Capital Resources

We have historically financed our operations primarily through funds generated from our capitation arrangements with payors, issuances of equity securities, and borrowings under credit agreements. We generally invest any excess cash in money market accounts, which are classified as cash equivalents. Our investment strategies are designed to provide safety and preservation of capital, sufficient liquidity to meet the cash flow needs of our business operations, and attainment of a competitive return. As of March 31, 2022, we had cash and cash equivalents of $1.0 billion.

We expect to continue to incur operating losses and generate negative cash flows from operations for the foreseeable future due to the investments we intend to continue to make in expanding our business and additional general and administrative costs we expect to incur related to our operation as a public company. As a result, we may require additional capital resources in the future to execute strategic initiatives to grow our business.

Our primary uses of cash include payments for medical claims and other medical expenses, general and administrative expenses, costs associated with the development of new geographies and expansion of existing geographies, debt service, and capital expenditures. Final reconciliation and receipt of amounts due from payors are typically settled in arrears, following completion of the contractual program year.

Our investment strategies are designed to provide safety and preservation of capital, sufficient liquidity to meet the cash flow needs of our business operations, and attainment of a competitive return.

Based on our planned operations, we believe that our existing cash and cash equivalents, as well as available borrowing capacity under the credit facilities, will be sufficient to meet our working capital and capital expenditure needs over at least the next 12 months, though we may require additional capital resources in the future. We have based these estimates on assumptions that may prove to be wrong and we could utilize our available capital resources sooner than we expect.

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We may require additional financing in the future to fund working capital and pay our obligations. We may seek to raise any necessary additional capital through a combination of public or private equity offerings and/or debt financings. There can be no assurance that we will be successful in acquiring additional funding at levels sufficient to fund our operations or on terms favorable to us, if at all. If adequate funds are not available on acceptable terms when needed, we may be required to significantly reduce operating expenses, which may have a material adverse effect on our business, financial condition, cash flows, and results of operations. If we do raise additional capital through public or private equity, the ownership interest of our existing stockholders will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect our existing stockholders’ rights. If we raise additional capital through debt financing, we may be subject to covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures, or declaring dividends.

Our ability to pay dividends to holders of our common stock is significantly limited as a practical matter by our growth plans as well as our credit facilities insofar as we may seek to pay dividends out of funds made available to us by agilon health management, inc. (“agilon management”) or its subsidiaries because our credit facilities restrict agilon management’s ability to pay dividends or make loans to us. The borrower on our credit facilities is agilon management, our wholly-owned subsidiary. Our credit facilities are guaranteed by certain of our subsidiaries, including those identified as variable interest entities, and contain customary covenants including, among other things, limitations on restricted payments including: (i) dividends and distributions from restricted subsidiaries, (ii) requirements of minimum financial ratios, and (iii) limitation on additional borrowings based on certain financial ratios.

Cash Flows

The following summary discussion of our cash flows is based on the condensed consolidated statements of cash flows. The following table sets forth changes in cash flows (dollars in thousands):

	Three Months Ended March 31,
	2022			2021			Change
Net cash provided by (used in) operating activities	$	(23,233	)	$	(40,828	)	$	17,595
Net cash provided by (used in) investing activities		(8,869	)		(9,074	)		205
Net cash provided by (used in) financing activities		13,506			30,298			(16,792	)

Net Cash Provided By (Used In) Operating Activities

Net cash used in operating activities was $23.2 million for the three months ended March 31, 2022 compared to $40.8 million for the three months ended March 31, 2021. The decrease in net cash used in operating activities was primarily a result of the increase in medical margin contributed from new and existing geographies, while general and administrative expenses declined as a percentage of revenue from 9% to 6% for the three months ended March 31, 2022.

Our cash flow from operations is dependent upon the number of members on our platform, the timing of settlements with payors, and the level of operating and general and administrative expenses necessary to operate and grow our business, among other factors.

Net Cash Provided By (Used In) Investing Activities

Net cash used in investing activities was $8.9 million for the three months ended March 31, 2022 compared to $9.1 million for the three months ended March 31, 2021. During the three months ended March 31, 2022, we used $9.6 million to fund investments, including capital expenditures for our technology platform and loans we provided to our physician partner groups in connection with taxes payable on shares distributed to them upon completion of the IPO under the partner physician group equity agreements. During the three months ended March 31, 2021, we used $4.0 million for the acquisition of intangible assets and $3.7 million of cash was sold in the disposition of our remaining California operations.

Net Cash Provided By (Used In) Financing Activities

Net cash provided by financing activities was $13.5 million for the three months ended March 31, 2022 compared to $30.3 million for the three months ended March 31, 2021. During the three months ended March 31, 2022, we received net proceeds of $14.8 million from the exercise of stock options. In February 2021, we refinanced our existing debt with a $100.0 million term loan, receiving net proceeds of $30.1 million.

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Debt Obligations

On February 18, 2021, we executed a credit facility agreement (as amended by the First Amendment to Credit Agreement, dated as of March 1, 2021, the “Credit Facilities”). The Credit Facilities include: (i) a $100.0 million senior secured term loan (the “Secured Term Loan Facility”) and (ii) a $100.0 million senior secured revolving credit facility (the “Secured Revolving Facility”) with a capacity to issue standby letters of credit in certain circumstances up to a maximum of $80.0 million. Subject to specified conditions and receipt of commitments, the Secured Term Loan Facility may be expanded (or a new term loan facility, revolving credit facility or letter of credit facility added) by up to (i) $50.0 million plus (ii) an additional amount determined in accordance with a formula tied to repayment of certain of our indebtedness. The Secured Term Loan Facility requires, among other things, a mandatory prepayment of $50.0 million if gross proceeds from the IPO exceed $1.0 billion. On April 26, 2021, we repaid $50.0 million of the Secured Term Loan Facility. The maturity date of the Credit Facilities was extended to February 18, 2026, with mandatory periodic payments.

At our option, borrowings under the Credit Facilities, as defined in the credit agreement, can be either: (i) LIBO Rate Loans or (ii) Base Rate Loans. LIBO Rate Loans bear interest at a rate equal to the sum of 4.00% (stepping down to 3.50% on and following October 1, 2023) and the higher of (a) LIBO, as defined in the credit agreement, and (b) 0%. Base Rate Loans bear interest at a rate equal to the sum of 3.00% (stepping down to 2.50% on and following October 1, 2023) and the highest of: (a) 0.50% in excess of the overnight federal funds rate, (b) the prime rate established by the administrative agent from time to time, (c) the one-month LIBO rate (adjusted for maximum reserves) plus 1.00% and (d) 0%. Additionally, we pay a commitment fee on the unfunded 2021 Revolving Credit Facility amount of 0.50% (stepping down to 0.375% on and following October 1, 2023). We must also pay customary letter of credit fees.

The Credit Facilities contain customary covenants including, among other things, limitations on restricted payments including: (i) dividends and distributions from restricted subsidiaries, (ii) requirements of minimum financial ratios, and (iii) limitation on additional borrowings based on certain financial ratios.

For additional discussion on our debt obligations, see Note 7 to the Condensed Consolidated Financial Statements for additional information about our outstanding debt.

Equity

As of March 31, 2022, we had 405.7 million shares of common stock outstanding. See Note 9 to the Condensed Consolidated Financial Statements for additional information about our equity transactions.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of financial statements in conformity with U.S. GAAP requires us to use judgment in the application of accounting policies, including making estimates and assumptions. We base estimates on the best information available to us at the time, our historical experience, known trends and events, and various other assumptions that we believe are reasonable under the circumstances. These estimates affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions or other matters had been different, it is possible that different accounting would have been applied, resulting in a different presentation of our condensed consolidated financial statements. From time to time, we re-evaluate our estimates and assumptions. In the event estimates or assumptions prove to be different from actual results, adjustments are made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. A summary of our critical accounting policies is included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 in “Management’s Discussion and Analysis of Financial Conditions and Results of Operations - Critical Accounting Policies” and Note 2 to the Condensed Consolidated Financial Statements. There have been no significant changes to our critical accounting policies during 2022.

Recent Accounting Pronouncements

There are no new accounting standards that have been issued and we have not adopted that are material to us as of March 31, 2022.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to various market risks, including the potential loss arising from adverse changes in interest rates. We do not use derivative financial instruments in the normal course of business or for speculative or trading purposes.

Our exposures to market risk for changes in interest expense relate primarily to the Credit Facilities. Indebtedness under the Credit Facilities is floating rate debt and is carried at amortized cost. Therefore, fluctuations in interest rates will impact our consolidated financial statements. A rising interest rate environment will increase the amount of interest paid on this debt. A hypothetical 100 basis point change in interest rates would impact our interest expense by less than $1.0 million for the three months ended March 31, 2022.

We held cash, cash equivalents and restricted cash equivalents of $1.0 billion as of March 31, 2022, consisting of bank deposits, certificates of deposits, and money market funds. Such interest-earning instruments carry a degree of interest rate risk. The goals of our investment policy are liquidity and capital preservation. We believe that we do not have any material exposure to changes in the fair value of these assets as a result of changes in interest rates due to the short-term nature of our cash, cash equivalents, and restricted cash equivalents.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. Our management, with the participation of our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), evaluated the effectiveness of our disclosure controls and procedures, as defined by Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on the evaluation of our disclosure controls and procedures, our Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer) concluded that our disclosure controls and procedures were effective as of March 31, 2022 at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting. There were no changes in our internal control over financial reporting (as such term as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

32

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See the “Legal Proceedings” section of Note 8 to the Condensed Consolidated Financial Statements for information regarding legal proceedings, which information is incorporated by reference in this Item 1.

Item 1A. Risk Factors

In addition to the information set forth in this Form 10-Q, you should carefully consider the risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. There have been no material changes to the risk factors disclosed in the Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)

None.

(b)

None.

(c)

None.

33

Item 6. Exhibits

Exhibit Number	Description
10.1	Employment Agreement, dated as of April 4, 2022, by and between Benjamin Shaker and agilon health, inc.†
10.2	Employment Agreement, dated as of March 31, 2022, by and between Girish Venkatachaliah and agilon health, inc.†
10.3	Separation Agreement and General Release, dated as of February 10, 2022, by and between Lisa Dombro and agilon health management, inc.†
10.4	Separation Agreement and General Release, dated as of March 18, 2022, by and between Theodore Halkias and agilon health management, inc.†
31.1	Certification by Steven J. Sell, agilon’s Principal Executive Officer, Pursuant to Securities Exchange Act Rule 13a-14(a).*
31.2	Certification by Timothy S. Bensley, agilon’s Principal Financial Officer, Pursuant to Securities Exchange Act Rule 13a-14(a).*
32.1	Certification by Steven J. Sell, agilon’s Principal Executive Officer, Pursuant to Securities Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350.**
32.2	Certification by Timothy S. Bensley, agilon’s Principal Financial Officer, Pursuant to Securities Exchange Act Rule 13a-14(b) and 18 U.S.C. Section 1350.**
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.*
101.SCH	Inline XBRL Taxonomy Extension Schema Document.*
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.*
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.*
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.*
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).*

* Filed herewith.

** Furnished herewith.

† Identifies each management contract or compensatory plan or arrangement.

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May 5, 2022	agilon health, inc.
	(Registrant)
	/s/ TIMOTHY S. BENSLEY
	Timothy S. Bensley
	Chief Financial Officer
	(Principal Financial Officer)

35

EX-10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”), dated as of April 4, 2022, is entered into by and between Benjamin Shaker (the “Executive”) and agilon health, inc., a Delaware corporation (the “Company”).

W I T NE SS E TH:

WHEREAS, Executive is currently employed as Chief Markets Officer of the Company;

WHEREAS, in recognition of Executive’s role with the Company, the Company and Executive desire to enter into this Agreement in accordance with the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and intending to be legally bound hereby, the parties hereto agree as follows:

1.Nature of Employment

Subject to Section 3, during the Term of Employment, the Company shall continue to employ the Executive, and the Executive agrees to continue employment, as the Chief Markets Officer of the Company and in such position to continue to perform the duties and responsibilities commensurate with such position and as may be reasonably assigned to the Executive from time to time by the Company. During the Term of Employment (as defined below), the Executive shall continue to report to the Chief Executive Officer of the Company (the “CEO”), or, if directed by the CEO, to another senior executive of the Company.

2.Extent of Employment

(a)During the Term of Employment, the Executive shall perform their obligations hereunder faithfully and to the best of their ability at the place of employment provided in Section 2(d), as directed pursuant to Section 1, and shall abide by the policies from time to time established by the Company.

(b)During the Term of Employment, the Executive shall devote all of their business time, energy and skill as may be reasonably necessary for the performance of their duties, responsibilities and obligations hereunder (except for vacation periods and reasonable periods of illness or other incapacity).

(c)As of the date hereof, the Executive does not have any ownership interests (other than ownership of less than 1% of the outstanding stock of a publicly-traded company) or professional relationships with (whether as an employee, director, officer, consultant or advisor, and whether or not for compensation) or professional commitments to any person or entity (other than the Company and its affiliates) that provides goods or services to or within the healthcare sector.

(d)During the Term of Employment, the principal place of Executive’s employment shall be in their home office or at a location agreed to by CEO, with regular and frequent travel to all Company Offices where agilon health personnel are located.

3.Term of Employment; Termination

(a)The “Term of Employment” shall continue until the Executive’s employment is terminated by the Company pursuant to Section 3(b) or by the Executive pursuant to Section 3(c).

(b)Subject to the payments contemplated by Section 3(f), the Executive’s employment may be terminated at any time by the Company:

(i)upon the death of the Executive;

(ii)in the event that, because of physical or mental disability, the Executive is unable to perform, and does not perform, in the opinion of the Company and as certified in writing by a competent medical physician selected by the mutual agreement of the Company and the Executive or their legal representative, their duties hereunder for a period of 180 days out of any 270-day period (“Disability”);

(iii)for Cause; or

(iv)for any other reason or no reason, it being understood that no reason shall be required for termination of the Executive’s employment.

The Executive acknowledges that nothing contained herein or otherwise stated by or on behalf of the Company modifies or amends the right of the Company to terminate the Executive at any time, with or without Cause. Termination shall become effective upon death or the delivery by the Company to the Executive of notice specifying such termination and the reasons therefor (i.e., Sections 3(b)(ii) – (iv)) subject to any requirement for advance notice and an opportunity to cure provided in this Agreement, if and to the extent applicable.

(c)Subject to the payments contemplated by Section 3(f), the Executive’s employment may be terminated at any time by the Executive:

(i)upon the death of the Executive;

(ii)in the event of Disability;

(iii)for Good Reason; or

(iv)for any other reason or no reason (a “Voluntary Termination”).

(d)As used in this Agreement, “Cause” shall mean any of the following:

(i)the Executive’s conviction of a crime involving moral turpitude, embezzlement, fraud, conversion of property or false statements or other similar acts or any other felony;

(ii)the Executive’s gross negligence or continued willful failure (other than by reason of death or Disability) to perform their material employment-related duties for the Company and its subsidiaries;

(iii)the Executive’s violation of a material provision of any written Company subsidiary policy as in effect from time to time that has been communicated to the Executive,

which violation is not cured within 30 days after the Company delivers written notice to the Executive that identifies and describes the alleged violation in reasonable detail (the “CurePeriod”);

(iv)the Executive’s material breach of any written agreement with the Company or any of its affiliates to which the Executive is a party or by which the Executive is bound (including, but not limited to, this Agreement and an Employee Stock Option Agreement with the Company’s affiliate) which breach is not cured within the Cure Period; provided that it shall be presumed that any material breach of the restrictive covenants contained in the Employee Stock Option Agreement is not capable of being cured for purposes of this definition of “Cause”;

(v)the Executive’s breach of Section 2(c) or the last sentence of Section 8; or

(vi)the Executive engaging in conduct that causes material harm to the name, reputation or business interests of the Company, or any of its respective affiliates, including any affiliated independent physician association.

For purposes of this provision, (A) no act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Company and (B) any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the board of directors of the Company or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.

A termination for Cause shall be deemed to include a determination by the Company within 90 days following the Executive’s Voluntary Termination that circumstances existed prior to such termination for the Company to have terminated the Executive’s employment for Cause; provided that in such event the Executive shall first be provided with any applicable cure rights to the extent available; and provided, further, that this sentence shall not apply to any circumstances actually known to the CEO 60 or more days prior to the date of such termination.

(e)As used in this Agreement, “Good Reason” shall mean any of the following, without the Executive’s written consent:

(i)a material diminution of the Executive’s Base Salary from the amount set forth in Section 4(a);

(ii)a material diminution of the Executive’s target annual bonus opportunity, at target performance levels, from the Executive’s annual bonus opportunity, at target performance levels, during the immediately preceding annual bonus measurement period (it being understood that the actual amount of the annual bonus and performance criteria shall be subject to Section 4(b) and that the Board’s decision to award an amount less than the target amount shall not constitute Good Reason);

(iii)a material diminution in the Executive’s authority, duties or responsibilities as Chief Markets Officer of the Company; and

(iv)a material breach by the Company of any written agreement between the Executive, on the one hand, and any of the Company or their controlled affiliates or subsidiaries, on the other hand (including, but not limited to, this Agreement).

Prior to any termination for Good Reason, the Executive must provide written notice to the CEO within 60 days following the date on which he discovers an alleged Good Reason event setting forth in reasonable detail the conduct alleged to be a basis for a termination for Good Reason. The Executive shall not have the right to terminate his employment for Good Reason (i) if, within the 30-day period following delivery of the Executive’s written notice, the Company, as applicable, shall have cured the conduct alleged to be a basis for termination for Good Reason and (ii) absent such cure, unless the Executive actually terminates employment within 45 days following the end of the Company’s cure period.

(f)The Executive shall be entitled to certain payments upon termination of their employment, as follows:

(i)In the event the Executive’s employment is terminated for any reason, the Executive shall be entitled to receive their Base Salary through the effective date of termination, any accrued benefits unpaid as of the effective date of termination, any expense reimbursements related to expenses reimbursable hereunder that are incurred through the effective date of termination, and other benefits required by law to be provided to their after termination of employment, in each case when paid according to the Company’s applicable lawful policies and standard practices and the lawful terms of this Agreement (the “Base TerminationCompensation”).

(ii)In the event the Executive’s employment is terminated by the Company for any reason other than for Cause (and for the avoidance of doubt not death or Disability), or by the Executive for Good Reason, then the Executive shall be entitled to (A) the Base Termination Compensation, and (B) severance pay equal to 24 months of the Executive’s base salary and two times the amount of the target annual bonus, at the rate in effect at the effective time of termination, to be paid in equal installments over 24 months on the Company’s normal payroll dates following the date of termination, except that the first installment of such payment shall be paid on the 60th day following the termination date and shall include all installments that would have been paid if the release of claims referred to in Section 3(i) had been effective at the date of termination. Any payment of the Executive’s Base Salary after termination of their employment shall be made in accordance with the Company’s regular payroll practices. Other than solely in connection with any vested employee stock options of a Company affiliate held by the Executive at the time of their termination of employment, there will be no additional amounts owing by the Company to the Executive from and after a termination of the Executive’s employment of the nature contemplated by this clause (ii) of Section 3(f).

(iii)If the Executive’s employment is terminated for Cause, then the Executive shall be entitled to the Base Termination Compensation.

(iv)If the Executive’s employment is terminated due to a Voluntary Termination, then the Executive shall be entitled to the Base Termination Compensation. Other than solely in connection with any vested employee stock options of a Company affiliate held by the Executive at the time of their termination of employment, there will be no additional amounts owing by the Company to the Executive from and after such termination of the nature contemplated by this clause (iv) of Section 3(f).

(v)If the Executive’s employment is terminated due to the Executive’s death or Disability, then the Executive shall be entitled to the Base Termination Compensation and, if terminated due to Disability, the Benefit Continuation. Other than solely in connection with any vested employee stock options of a Company affiliate held by the Executive at the time of their termination of employment, there will be no additional amounts owing by the Company to the Executive from and after such termination of the nature contemplated by this clause (v) of Section 3(f).

(g)Termination of the Executive’s employment will not terminate Sections 3(f) through 3(j) and 7 through 19, or any other provisions not associated specifically with the Term of Employment.

(h)Any provision herein to the contrary notwithstanding, if, following their termination of employment, the Executive materially breaches any restrictive covenant contained in the employee stock option agreement with the Company’s affiliate to which Executive is a party or, without the Company’s prior written consent, competes with the business of the Company and its subsidiaries as then conducted, then from and after the date of such employment or engagement, the Company shall have no further payment or benefit obligations under Section 3(f)(ii).

(i)In the event the Executive’s employment is terminated and the Company is obligated to make payments pursuant to Section 3(f)(ii), other than the Base Termination Compensation, it shall be a condition to such payments that, within 30 days following the date of termination, the Executive enter into a general release of claims, substantially in the form customarily used by the Company.

(j)Upon termination of the Executive’s employment for any reason, the Executive shall be deemed to have resigned from all positions with the Company and its affiliates, including the Company, and, at the Company’s request, the Executive shall promptly deliver written evidence of such resignation.

4.Compensation. The Company shall pay compensation to the Executive as follows:

(a)Base Salary. During the Term of Employment, the Company shall pay to the Executive as base compensation for their services hereunder, on the Company’s regular payroll dates, a base salary at a rate of not less than $400,000 per annum (“Base Salary”).

(b)Annual Bonus

(i) Generally. For each fiscal year during the Term of Employment, the Executive will be eligible for an annual bonus with a target payment equal to 75% of the Executive’s Base Salary based on the Executive’s achievement of pre-established performance goals and conditions determined by the Company on an annual basis in accordance with the annual bonus plan then applicable to senior management of the Company (the “Bonus Plan”). Under the Bonus Plan, the actual amount of any bonus paid for any fiscal year shall be determined by the Company based on its assessment of the actual performance against such goals against the goals and conditions

established for the year. Any annual bonus payable to the Executive for a fiscal year shall be paid to the Executive not later than two and a half months following the end of such fiscal year to which the performance relates. It shall be a condition to the payment of any annual bonus that the Executive remain employed through the last day of the applicable fiscal year.

5.Reimbursement of Expenses. During the Term of Employment, the Company will promptly reimburse the Executive (or pay directly) for reasonable and documented travel, entertainment and other expenses reasonably incurred by the Executive in connection with the performance of their duties hereunder and, in each case, in accordance with the policies, rules, customs and usages promulgated by the Company and in effect from time to time and applicable law. Any payments due under this Section 5 will be payable in accordance with the Company’s usual payroll practices.

6.Benefits

During the Term of Employment, the Executive shall be entitled to participate in and be covered by any insurance plan (including but not limited to medical, dental, health, accident, hospitalization and disability), 401(k), profit sharing or other employee benefit plan of the Company, to the same extent and on substantially the same terms as such benefits are or may be provided by the Company, at its sole discretion, from time to time to other members of the senior management of the Company, and in all circumstances in accordance with the policies, rules, customs and usages promulgated by the Company and in effect from time to time.

7.Notice

Any notice, request, demand or other communication required or permitted to be given under this Agreement shall be given in writing and if delivered personally, or sent by certified or registered mail, return receipt requested, as follows (or to such other addressee or address as shall be set forth in a notice given in the same manner):

(a)If to the Executive, to the Executive at the address most recently contained in the Company’s records (which the Executive shall update as necessary)

(b)If to the Company:

agilon health, inc.

6210 E. Highway 290

Suite 450

Austin, TX 78723

Attention: CEO

Any such notices shall be deemed to be given on the date personally delivered or such return receipt is issued.

8.Executive’s Representation

The Executive hereby represents and warrants to the Company that the Executive has carefully reviewed this Agreement and has consulted with such advisors as the Executive considers appropriate in connection with this Agreement, and is not subject to any covenants, agreements or restrictions, including without limitation any covenants, agreements or restrictions arising out of the Executive’s prior employment, which would be breached or violated by Executive’s execution

of this Agreement or by the Executive’s performance of their duties hereunder. In addition, the Executive hereby represents, warrants and covenants to the Company that, as of the date hereof their does not have and during the Term of Employment (without the Company’s prior approval) their will not have any professional relationships with (whether as an employee, director, officer, consultant or advisor, and whether or not for compensation) or commitments to any individual or entity (other than the Company) that operates or conducts (or, to the Executive’s knowledge, intends to operate or conduct) any business of the types in which the Company, or any of its subsidiaries or affiliated independent physician associations is engaged.

9.Other Matters

The Executive agrees and acknowledges that the obligations owed to the Executive under this Agreement are solely the obligations of the Company, and that none of the stockholders, directors, officers, affiliates, representatives, agents or lenders of or to Company or any of its affiliates will have any obligations or liabilities in respect of this Agreement and the subject matter hereof, to the extent allowed by law.

10.Partial Invalidity; Severability

In case any one or more of the provisions or parts of a provision contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement or any other jurisdiction, but this Agreement shall be reformed and construed in any such jurisdiction as if such invalid or illegal or unenforceable provision or part of a provision had never been contained herein and such provision or part shall be reformed so that it would be valid, legal and enforceable to the maximum extent permitted in such jurisdiction.

11.Waiver of Breach; Specific Performance

The waiver by the Company or the Executive of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other breach of any other party. Each of the parties to this Agreement will be entitled to enforce its respective rights under this Agreement and to exercise all other rights existing in its favor. In the event either party takes legal action to enforce any of the terms or provisions of this Agreement, the nonprevailing party shall pay the successful party’s costs and expenses, including but not limited to, attorneys’ fees, incurred in such action.

12.Assignment

Neither the Executive, on the one hand, nor the Company, on the other hand, may assign, transfer, pledge, hypothecate, encumber or otherwise dispose of this Agreement or any of their or its respective rights or obligations hereunder, without the prior written consent of the other, provided that the Company may assign its rights and obligations under this Agreement to another wholly-owned subsidiary of Parent that employs members of agilon health’s senior management.

13.Amendment; Entire Agreement

This Agreement may not be changed orally but only by an agreement in writing agreed to by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. This Agreement embodies the entire agreement and understanding of the parties hereto in respect of the subject matter of this Agreement, and supersedes and replaces all

prior agreements, understandings and commitments with respect to such subject matter. Notwithstanding the foregoing, the terms of this Agreement do not supersede, replace, or affect the terms of any prior agreements between Executive and the Company regarding equity awards granted to the Executive by the Company.

14.Governing Law; Choice of Forum

THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE. IN THE EVENT ANY PARTY TO THIS AGREEMENT COMMENCES ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, THE PARTIES TO THIS AGREEMENT HEREBY (1) AGREE UNDER ALL CIRCUMSTANCES ABSOLUTELY AND IRREVOCABLY TO INSTITUTE ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION IN A COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE CENTRAL DISTRICT OF CALIFORNIA, WHETHER A STATE OR FEDERAL COURT; (2) AGREE THAT IN THE EVENT OF ANY SUCH LITIGATION, PROCEEDING OR ACTION, SUCH PARTIES WILL CONSENT AND SUBMIT TO THE PERSONAL JURISDICTION OF ANY SUCH COURT DESCRIBED IN CLAUSE (1) OF THIS SECTION AND TO SERVICE OF PROCESS UPON THEM IN ACCORDANCE WITH THE RULES AND STATUTES GOVERNING SERVICE OF PROCESS (IT BEING UNDERSTOOD THAT NOTHING IN THIS SECTION SHALL BE DEEMED TO PREVENT ANY PARTY FROM SEEKING TO REMOVE ANY ACTION TO A FEDERAL COURT IN THE CENTRAL DISTRICT OF CALIFORNIA); (3) IRREVOCABLY CONSENT TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT TO SUCH PARTY AT SUCH PARTY’S ADDRESS SPECIFIED IN SECTION 7; (4) AGREE TO WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH LITIGATION, PROCEEDING OR ACTION IN ANY SUCH COURT OR THAT ANY SUCH LITIGATION, PROCEEDING OR ACTION WAS BROUGHT IN ANY INCONVENIENT FORUM; AND (5) AGREE, AFTER CONSULTATION WITH COUNSEL, TO WAIVE ANY RIGHTS TO A JURY TRIAL TO RESOLVE ANY DISPUTES OR CLAIMS RELATING TO THIS AGREEMENT. THE CHOICE OF FORUM SET FORTH IN THIS SECTION 14 SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT OF ANY ACTION UNDER THIS AGREEMENT IN ANY OTHER JURISDICTION.

15.Further Action

The Executive and the Company agree to perform any further acts and to execute and deliver any documents which may be reasonable to carry out the provisions hereof.

16.Counterparts

This Agreement may be executed in counterparts, including facsimiles thereof, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

17.Payments by Subsidiaries

The Executive acknowledges that one or more payments hereunder may be paid by one or more of the Company’s subsidiaries, and the Executive agrees that any such payment made by

such subsidiary shall satisfy the obligations of the Company hereunder with respect to (but only to the extent of) such payment.

18.Tax Matters

The Executive acknowledges that the payments and benefits provided under the terms of this Agreement shall constitute taxable income to the extent provided in the applicable provisions of the United States Internal Revenue Code of 1986, as amended, and any successor thereto and applicable regulations thereunder (the “Code”) and other applicable tax laws. Moreover, the Executive understands and acknowledges that the Company have not provided any advice regarding their tax liability resulting from this Agreement and that their has been advised to consult with their personal tax advisor or legal counsel as to the taxability of the payments and benefits provided under this Agreement. The Executive shall be solely responsible for taxes imposed on them by reason of any payments or benefits provided under this Agreement and all such payments and benefits shall be subject to applicable federal, state, local and foreign withholding requirements. All payments to be made or benefits to be provided to the Executive pursuant to this Agreement shall be made net of all applicable income and employment taxes required to be withheld from such payments pursuant to any applicable law or regulation.

19.Applicability of Section 409A of the Code

To the extent that any reimbursement, fringe benefit or other, similar plan or arrangement in which the Executive participates during the term of the Executive’s employment under this Agreement or thereafter provides for a “deferral of compensation” within the meaning of Section 409A of the Code, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (iii) subject to any shorter time periods provided in any expense reimbursement policy of the Company, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred and (iv) the reimbursements shall be made pursuant to objectively determinable and nondiscretionary Company policies and procedures regarding such reimbursement of expenses. In addition, with respect to any payments or benefits subject to Section 409A of the Code, reference to the Executive’s “termination of employment” (and corollary terms) with the Company shall be construed to refer to the Executive’s “separation from service” (as determined under Treas. Reg. Section 1.409A-1(h), as uniformly applied by the Company) with the Company. Whenever a provision under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company. The Executive’s right to receive any installment payments hereunder shall, for purposes of Section 409A, be treated as a right to receive a series of separate and distinct payments. If the timing of the Executive’s execution of a general release of claims pursuant to Section 3(i) could impact the calendar year in which any payment under this Agreement that is subject to Section 409A of the Code will be made, such payment will be made in the later calendar year.

Notwithstanding anything to the contrary in this Agreement, if the Executive is a “specified employee” within the meaning of Section 409A of the Code at the time of the Executive’s separation from service (other than due to death), then any payment under this Agreement that is subject to Section 409A of the Code and that is payable by reason of the

Executive’s separation from service within the first six months following the Executive’s

separation from service will become payable on the first payroll date that occurs on or after the date six months and one day following the date of the Executive’s separation from service. All subsequent related payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if the Executive dies following the Executive’s separation from service, but prior to the six month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of the Executive’s death and all other related payments will be payable in accordance with the payment schedule applicable to each payment or benefit.

The foregoing provisions are intended to comply with the requirements of Section 409A of the Code so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A of the Code, and, if any ambiguity is found herein with respect to such payments or benefits, any such ambiguities will be interpreted to so comply. If any payment or benefits subject to Section 409A of the Code could be construed not to comply with Section 409A of the Code, the Company and the Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to the Executive under Section 409A of the Code.

[Signature Page Follows]

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written

above.

EXECUTIVE

/s/ Benjamin Shaker

Name: Benjamin Shaker

AGILON HEALTH, INC.

/s/ Steve Sell

Name: Steve Sell

Title: Chief Executive Officer

EX-10.2

Exhibit 10.2

CONFIDENTIAL

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”), dated as of 03/31/2022 is entered into by and between Girish Venkatachaliah (the “Executive”) and agilon health, inc., a Delaware corporation (the “Company”).

W I T NE SS E TH:

WHEREAS, Executive is currently employed as Chief Technology Officer of the Company;

WHEREAS, in recognition of Executive’s role with the Company, the Company and Executive desire to enter into this Agreement in accordance with the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and intending to be legally bound hereby, the parties hereto agree as follows:

1.Nature of Employment

Subject to Section 3, during the Term of Employment, the Company shall continue to employ the Executive, and the Executive agrees to continue employment, as the Chief Technology Officer of the Company and in such position to continue to perform the duties and responsibilities commensurate with such position and as may be reasonably assigned to the Executive from time to time by the Company. During the Term of Employment (as defined below), the Executive shall continue to report to the Chief Executive Officer of the Company (the “CEO”), or, if directed by the CEO, to another senior executive of the Company.

2.Extent of Employment

(a)During the Term of Employment, the Executive shall perform their obligations hereunder faithfully and to the best of their ability at the place of employment provided in Section 2(d), as directed pursuant to Section 1, and shall abide by the policies from time to time established by the Company.

(b)During the Term of Employment, the Executive shall devote all of their business time, energy and skill as may be reasonably necessary for the performance of their duties, responsibilities and obligations hereunder (except for vacation periods and reasonable periods of illness or other incapacity).

(c)As of the date hereof, the Executive does not have any ownership interests (other than ownership of less than 1% of the outstanding stock of a publicly-traded company) or professional relationships with (whether as an employee, director, officer, consultant or advisor, and whether or not for compensation) or professional commitments to any person or entity (other than the Company and its affiliates) and will not have such ownership interests, commitments or professional relationships without first receiving prior approval from the Chief People Officer and

the VP of Legal Services.

(d)During the Term of Employment, the principal place of Executive’s employment shall be in their home office or at a location agreed to by CEO, with regular and frequent travel to all Company Offices where agilon health personnel are located.

3.Term of Employment; Termination

(a)The “Term of Employment” shall continue until the Executive’s employment is terminated by the Company pursuant to Section 3(b) or by the Executive pursuant to Section 3(c).

(b)Subject to the payments contemplated by Section 3(e), the Executive’s employment may be terminated at any time by the Company:

(i)upon the death of the Executive;

(ii)in the event that, because of physical or mental disability, the Executive is unable to perform, and does not perform, in the opinion of the Company and as certified in writing by a competent medical physician selected by the mutual agreement of the Company and the Executive or their legal representative, their duties hereunder for a period of 180 days out of any 270-day period (“Disability”);

(iii)for Cause; or

(iv)for any other reason or no reason, it being understood that no reason shall be required for termination of the Executive’s employment.

The Executive acknowledges that nothing contained herein or otherwise stated by or on behalf of the Company modifies or amends the right of the Company to terminate the Executive at any time, with or without Cause. Termination shall become effective upon death or the delivery by the Company to the Executive of notice specifying such termination and the reasons therefor (i.e., Sections 3(b)(ii) – (iv)) subject to any requirement for advance notice and an opportunity to cure provided in this Agreement, if and to the extent applicable.

(c)Subject to the payments contemplated by Section 3(e), the Executive’s employment may be terminated at any time by the Executive:

(i)upon the death of the Executive;

(ii)in the event of Disability; or

(iii)for any other reason or no reason (a “Voluntary Termination”).

(d)As used in this Agreement, “Cause” shall mean any of the following:

(i)the Executive’s conviction of a crime involving moral turpitude, embezzlement, fraud, conversion of property or false statements or other similar acts or any other felony;

(ii)the Executive’s gross negligence or continued willful failure (other than by reason of death or Disability) to perform their material employment-related duties for the Company and its subsidiaries;

(iii)the Executive’s violation of a material provision of any written Company subsidiary policy as in effect from time to time that has been communicated to the Executive,

which violation is not cured within 30 days after the Company delivers written notice to the Executive that identifies and describes the alleged violation in reasonable detail (the “CurePeriod”);

(iv)the Executive’s material breach of any written agreement with the Company or any of its affiliates to which the Executive is a party or by which the Executive is bound (including, but not limited to, this Agreement and an Employee Stock Option Agreement with the Company’s affiliate) which breach is not cured within the Cure Period; provided that it shall be presumed that any material breach of the restrictive covenants contained in the Employee Stock Option Agreement is not capable of being cured for purposes of this definition of “Cause”;

(v)the Executive’s breach of Section 2(c) or the last sentence of Section 8; or

(vi)the Executive engaging in conduct that causes material harm to the name, reputation or business interests of the Company, or any of its respective affiliates, including any affiliated independent physician association.

For purposes of this provision, (A) no act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive's action or omission was in the best interests of the Company and (B) any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the board of directors of the Company or upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.

A termination for Cause shall be deemed to include a determination by the Company within 90 days following the Executive’s Voluntary Termination that circumstances existed prior to such termination for the Company to have terminated the Executive’s employment for Cause; provided that in such event the Executive shall first be provided with any applicable cure rights to the extent available; and provided, further, that this sentence shall not apply to any circumstances actually known to the CEO 60 or more days prior to the date of such termination.

(e)The Executive shall be entitled to certain payments upon termination of their employment, as follows:

(i)In the event the Executive’s employment is terminated for any reason, the Executive shall be entitled to receive their Base Salary through the effective date of termination, any accrued benefits unpaid as of the effective date of termination, any expense reimbursements related to expenses reimbursable hereunder that are incurred through the effective date of termination, and other benefits required by law to be provided to their after termination of employment, in each case when paid according to the Company’s applicable lawful policies and standard practices and the lawful terms of this Agreement (the “Base TerminationCompensation”).

(ii)In the event the Executive’s employment is terminated by the Company for any reason other than for Cause (and for the avoidance of doubt not death or Disability), then the

Executive shall be entitled to (A) the Base Termination Compensation, and (B) severance pay equal to 12 months of the Executive’s base salary and target annual bonus, at the rate in effect at the effective time of termination, to be paid in equal installments over 12 months on the Company’s normal payroll dates following the date of termination, except that the first installment of such payment shall be paid on the 60th day following the termination date and shall include all installments that would have been paid if the release of claims referred to in Section 3(h) had been effective at the date of termination and (Any payment of the Executive’s Base Salary after termination of their employment shall be made in accordance with the Company’s regular payroll practices. Other than solely in connection with any vested employee stock options of a Company affiliate held by the Executive at the time of their termination of employment, there will be no additional amounts owing by the Company to the Executive from and after a termination of the Executive’s employment of the nature contemplated by this clause

(ii)of Section 3(e).

(iii)If the Executive’s employment is terminated for Cause, then the Executive shall be entitled to the Base Termination Compensation.

(iv)If the Executive’s employment is terminated due to a Voluntary Termination, then the Executive shall be entitled to the Base Termination Compensation. Other than solely in connection with any vested employee stock options of a Company affiliate held by the Executive at the time of their termination of employment, there will be no additional amounts owing by the Company to the Executive from and after such termination of the nature contemplated by this clause (iv) of Section 3(e).

(v)If the Executive’s employment is terminated due to the Executive’s death or Disability, then the Executive shall be entitled to the Base Termination Compensation and, if terminated due to Disability, the Benefit Continuation. Other than solely in connection with any vested employee stock options of a Company affiliate held by the Executive at the time of their termination of employment, there will be no additional amounts owing by the Company to the Executive from and after such termination of the nature contemplated by this clause (v) of Section 3(e).

(f)Termination of the Executive’s employment will not terminate Sections 3(e) through 3(i) and 7 through 19, or any other provisions not associated specifically with the Term of Employment.

(g)Any provision herein to the contrary notwithstanding, if, following their termination of employment, the Executive materially breaches any restrictive covenant contained in the employee stock option agreement with the Company’s affiliate to which Executive is a party or, without the Company’s prior written consent, competes with the business of the Company and its subsidiaries as then conducted, then from and after the date of such employment or engagement, the Company shall have no further payment or benefit obligations under Section 3(e)(ii).

(h)In the event the Executive’s employment is terminated and the Company is obligated to make payments pursuant to Section 3(e)(ii), other than the Base Termination Compensation, it shall be a condition to such payments that, within 30 days following the date of

termination, the Executive enter into a general release of claims, substantially in the form customarily used by the Company.

(i)Upon termination of the Executive’s employment for any reason, the Executive shall be deemed to have resigned from all positions with the Company and its affiliates, including the Company, and, at the Company’s request, the Executive shall promptly deliver written evidence of such resignation.

4.Compensation. The Company shall pay compensation to the Executive as follows:

(a)Base Salary. During the Term of Employment, the Company shall pay to the Executive as base compensation for their services hereunder, on the Company’s regular payroll dates, a base salary at a rate of not less than $350,000 per annum (“Base Salary”).

(b)Annual Bonus

(i) Generally. For each fiscal year during the Term of Employment, the Executive will be eligible for an annual bonus with a target payment equal to 75% of the Executive’s Base Salary based on the Executive’s achievement of pre-established performance goals and conditions determined by the Company on an annual basis in accordance with the annual bonus plan then applicable to senior management of the Company (the “Bonus Plan”). Under the Bonus Plan, the actual amount of any bonus paid for any fiscal year shall be determined by the Company based on its assessment of the actual performance against such goals against the goals and conditions established for the year. Any annual bonus payable to the Executive for a fiscal year shall be paid to the Executive not later than two and a half months following the end of such fiscal year to which the performance relates. It shall be a condition to the payment of any annual bonus that the Executive remain employed through the last day of the applicable fiscal year.

5.Reimbursement of Expenses. During the Term of Employment, the Company will promptly reimburse the Executive (or pay directly) for reasonable and documented travel, entertainment and other expenses reasonably incurred by the Executive in connection with the performance of their duties hereunder and, in each case, in accordance with the policies, rules, customs and usages promulgated by the Company and in effect from time to time and applicable law. Any payments due under this Section 5 will be payable in accordance with the Company’s usual payroll practices.

6.Benefits

During the Term of Employment, the Executive shall be entitled to participate in and be covered by any insurance plan (including but not limited to medical, dental, health, accident, hospitalization and disability), 401(k), profit sharing or other employee benefit plan of the Company, to the same extent and on substantially the same terms as such benefits are or may be provided by the Company, at its sole discretion, from time to time to other members of the senior management of the Company, and in all circumstances in accordance with the policies, rules, customs and usages promulgated by the Company and in effect from time to time.

7.Notice

Any notice, request, demand or other communication required or permitted to be given under this Agreement shall be given in writing and if delivered personally, or sent by certified or registered mail, return receipt requested, as follows (or to such other addressee or address as shall be set forth in a notice given in the same manner):

(a)If to the Executive, to the Executive at the address most recently contained in the Company’s records (which the Executive shall update as necessary)

(b)If to the Company:

agilon health, inc.

6210 E. Highway 290

Suite 450

Austin, TX 78723

Attention: CEO

Any such notices shall be deemed to be given on the date personally delivered or such return receipt is issued.

8.Executive’s Representation

The Executive hereby represents and warrants to the Company that the Executive has carefully reviewed this Agreement and has consulted with such advisors as the Executive considers appropriate in connection with this Agreement, and is not subject to any covenants, agreements or restrictions, including without limitation any covenants, agreements or restrictions arising out of the Executive’s prior employment, which would be breached or violated by Executive’s execution of this Agreement or by the Executive’s performance of their duties hereunder. In addition, the Executive hereby represents, warrants and covenants to the Company that, as of the date hereof their does not have and during the Term of Employment (without the Company’s prior approval) their will not have any professional relationships with (whether as an employee, director, officer, consultant or advisor, and whether or not for compensation) or commitments to any individual or entity (other than the Company) that operates or conducts (or, to the Executive’s knowledge, intends to operate or conduct) any business of the types in which the Company, or any of its subsidiaries or affiliated independent physician associations is engaged.

9.Other Matters

The Executive agrees and acknowledges that the obligations owed to the Executive under this Agreement are solely the obligations of the Company, and that none of the stockholders, directors, officers, affiliates, representatives, agents or lenders of or to Company or any of its affiliates will have any obligations or liabilities in respect of this Agreement and the subject matter hereof, to the extent allowed by law.

10.Partial Invalidity; Severability

In case any one or more of the provisions or parts of a provision contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement or any other jurisdiction, but this Agreement shall be reformed and construed in any such jurisdiction as if such invalid or illegal or unenforceable provision or part of a provision had never been contained herein and such provision or part shall be reformed so that it would be valid, legal and enforceable to the maximum extent permitted in such jurisdiction.

11.Waiver of Breach; Specific Performance

The waiver by the Company or the Executive of a breach of any provision of this Agreement by the other party shall not operate or be construed as a waiver of any other breach of any other party. Each of the parties to this Agreement will be entitled to enforce its respective rights under this Agreement and to exercise all other rights existing in its favor. In the event either party takes legal action to enforce any of the terms or provisions of this Agreement, the nonprevailing party shall pay the successful party’s costs and expenses, including but not limited to, attorneys’ fees, incurred in such action.

12.Assignment

Neither the Executive, on the one hand, nor the Company, on the other hand, may assign, transfer, pledge, hypothecate, encumber or otherwise dispose of this Agreement or any of their or its respective rights or obligations hereunder, without the prior written consent of the other, provided that the Company may assign its rights and obligations under this Agreement to another wholly-owned subsidiary of Parent that employs members of agilon health’s senior management.

13.Amendment; Entire Agreement

This Agreement may not be changed orally but only by an agreement in writing agreed to by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought. This Agreement embodies the entire agreement and understanding of the parties hereto in respect of the subject matter of this Agreement, and supersedes and replaces all prior agreements, understandings and commitments with respect to such subject matter.

14.Governing Law; Choice of Forum

THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED, APPLIED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE. IN THE EVENT ANY PARTY TO THIS AGREEMENT COMMENCES ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, THE PARTIES TO THIS AGREEMENT HEREBY (1) AGREE UNDER ALL CIRCUMSTANCES ABSOLUTELY AND IRREVOCABLY TO INSTITUTE ANY LITIGATION, PROCEEDING OR OTHER LEGAL ACTION IN A COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE CENTRAL DISTRICT OF CALIFORNIA, WHETHER A STATE OR FEDERAL COURT; (2) AGREE THAT IN THE EVENT OF ANY SUCH LITIGATION, PROCEEDING OR ACTION, SUCH PARTIES WILL CONSENT AND SUBMIT TO THE PERSONAL JURISDICTION OF ANY SUCH COURT DESCRIBED IN CLAUSE (1) OF THIS SECTION AND TO SERVICE OF PROCESS UPON THEM IN ACCORDANCE WITH THE RULES AND STATUTES GOVERNING SERVICE OF PROCESS (IT BEING UNDERSTOOD THAT NOTHING IN THIS SECTION SHALL BE DEEMED TO PREVENT ANY PARTY FROM SEEKING TO REMOVE ANY ACTION TO A FEDERAL COURT IN THE CENTRAL DISTRICT OF CALIFORNIA); (3) IRREVOCABLY CONSENT TO THE SERVICE OF ANY AND ALL PROCESS IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT TO SUCH PARTY AT SUCH PARTY’S ADDRESS SPECIFIED IN SECTION 7; (4) AGREE TO WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH LITIGATION, PROCEEDING OR ACTION IN ANY SUCH COURT OR THAT

ANY SUCH LITIGATION, PROCEEDING OR ACTION WAS BROUGHT IN ANY INCONVENIENT FORUM; AND (5) AGREE, AFTER CONSULTATION WITH COUNSEL, TO WAIVE ANY RIGHTS TO A JURY TRIAL TO RESOLVE ANY DISPUTES OR CLAIMS RELATING TO THIS AGREEMENT. THE CHOICE OF FORUM SET FORTH IN THIS SECTION 14 SHALL NOT BE DEEMED TO PRECLUDE THE ENFORCEMENT OF ANY ACTION UNDER THIS AGREEMENT IN ANY OTHER JURISDICTION.

15.Further Action

The Executive and the Company agree to perform any further acts and to execute and deliver any documents which may be reasonable to carry out the provisions hereof.

16.Counterparts

This Agreement may be executed in counterparts, including facsimiles thereof, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

17.Payments by Subsidiaries

The Executive acknowledges that one or more payments hereunder may be paid by one or more of the Company’s subsidiaries, and the Executive agrees that any such payment made by such subsidiary shall satisfy the obligations of the Company hereunder with respect to (but only to the extent of) such payment.

18.Tax Matters

The Executive acknowledges that the payments and benefits provided under the terms of this Agreement shall constitute taxable income to the extent provided in the applicable provisions of the United States Internal Revenue Code of 1986, as amended, and any successor thereto and applicable regulations thereunder (the “Code”) and other applicable tax laws. Moreover, the Executive understands and acknowledges that the Company have not provided any advice regarding their tax liability resulting from this Agreement and that their has been advised to consult with their personal tax advisor or legal counsel as to the taxability of the payments and benefits provided under this Agreement. The Executive shall be solely responsible for taxes imposed on them by reason of any payments or benefits provided under this Agreement and all such payments and benefits shall be subject to applicable federal, state, local and foreign withholding requirements. All payments to be made or benefits to be provided to the Executive pursuant to this Agreement shall be made net of all applicable income and employment taxes required to be withheld from such payments pursuant to any applicable law or regulation.

19.Applicability of Section 409A of the Code

To the extent that any reimbursement, fringe benefit or other, similar plan or arrangement in which the Executive participates during the term of the Executive’s employment under this Agreement or thereafter provides for a “deferral of compensation” within the meaning of Section 409A of the Code, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (iii) subject to any shorter time periods provided in any expense reimbursement policy of

the Company, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred and (iv) the reimbursements shall be made pursuant to objectively determinable and nondiscretionary Company policies and procedures regarding such reimbursement of expenses. In addition, with respect to any payments or benefits subject to Section 409A of the Code, reference to the Executive’s “termination of employment” (and corollary terms) with the Company shall be construed to refer to the Executive’s “separation from service” (as determined under Treas. Reg. Section 1.409A-1(h), as uniformly applied by the Company) with the Company. Whenever a provision under this Agreement specifies a payment period with reference to a number of days, the actual date of payment within the specified period shall be within the sole discretion of the Company. The Executive’s right to receive any installment payments hereunder shall, for purposes of Section 409A, be treated as a right to receive a series of separate and distinct payments. If the timing of the Executive’s execution of a general release of claims pursuant to Section 3(h) could impact the calendar year in which any payment under this Agreement that is subject to Section 409A of the Code will be made, such payment will be made in the later calendar year.

Notwithstanding anything to the contrary in this Agreement, if the Executive is a “specified employee” within the meaning of Section 409A of the Code at the time of the Executive’s separation from service (other than due to death), then any payment under this Agreement that is subject to Section 409A of the Code and that is payable by reason of the Executive’s separation from service within the first six months following the Executive’s separation from service will become payable on the first payroll date that occurs on or after the date six months and one day following the date of the Executive’s separation from service. All subsequent related payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if the Executive dies following the Executive’s separation from service, but prior to the six month anniversary of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of the Executive’s death and all other related payments will be payable in accordance with the payment schedule applicable to each payment or benefit.

The foregoing provisions are intended to comply with the requirements of Section 409A of the Code so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A of the Code, and, if any ambiguity is found herein with respect to such payments or benefits, any such ambiguities will be interpreted to so comply. If any payment or benefits subject to Section 409A of the Code could be construed not to comply with Section 409A of the Code, the Company and the Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to the Executive under Section 409A of the Code.

[Signature Page Follows]

IN WITNESS WHEREOF, this Agreement has been executed as of the date first written

above.

EXECUTIVE

/s/ Girish Venkatachaliah

Name: Girish Venkatachaliah

AGILON HEALTH, INC.

/s/ Steve Sell

Name: Steve Sell

Title: Chief Executive Officer

EX-10.3

Exhibit 10.3

SEPARATION AGREEMENT AND GENERAL RELEASE OF CLAIMS

This SEPARATION AGREEMENT AND GENERAL RELEASE (the “Agreement”), dated as of February 10, 2022, is entered into by and among agilon health management, inc. (f/k/a agilon health, inc.) (the “Company” and, together with its parent, agilon health, inc., and their respective subsidiaries and affiliates, the “Company Group”), and the undersigned, Lisa Dombro.

WHEREAS, I have tendered my notice of resignation to the Company, and my employment with the Company Group will end effective as of February 28, 2022 (the “Separation Date”);

WHEREAS, the Company has agreed to provide me with specified separation pay and benefits, subject to, among other things, my execution, delivery and non-revocation of a general release of claims; and

NOW, THEREFORE, in consideration of the promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency whereof is hereby acknowledged, I hereby agree as follows:

1.In consideration of the payment of my annual cash bonus for the 2021 fiscal year of the Company Group pursuant to the agilon health bonus plan(the “Annual Bonus”), I hereby waive and release and forever discharge the Company Group, Clayton, Dubilier & Rice, LLC (“CD&R”) and its affiliated investment funds, and those entities which hold a direct and/or indirect interest in the Company and which serve as the general partner or managing member of any such vehicles or of the general partner or managing members of such vehicles, and their respective affiliates, and all of the respective past and present officers, directors, employees, agents, representatives, stockholders, members and partners of the foregoing and any and all employee pension benefit or welfare benefit plans of the Company Group, each in his, her or its capacity as such, and each of them, separately and collectively (collectively, “Releasees”), from any and all existing claims, charges, complaints, liens, demands, causes of action, obligations, damages and liabilities, known or unknown, suspected or unsuspected, whether or not mature or ripe, that I ever had and now have against any Releasee including, but not limited to, claims and causes of action arising out of or in any way related to my employment with or separation from the Company Group, to any services performed for any member of the Company Group, to any status, term or condition in such employment or relationship, to any equity interests that I have in or that were granted or committed to me by any member of the Company Group, or to any physical or mental harm or distress from such employment or non-employment or claim to any hire, rehire or future employment of any kind by any member of the Company Group, all to the extent allowed by applicable law. This release of claims includes, but is not limited to, claims based on express or implied contract, compensation plans, covenants of good faith and fair dealing, wrongful discharge, claims for discrimination, harassment and retaliation, violation of public policy, tort or common law, whistleblower or retaliation

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claims; and claims for additional compensation or damages or attorneys’ fees or claims under federal, state, and local laws, regulations and ordinances, including but not limited to Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Worker Adjustment and Retraining Notification Act (“WARN”), or equivalent state WARN act and the Employee Retirement Income Security Act (“ERISA”). I understand that this release of claims includes a release of all known and unknown claims through the date on which I execute this release.

I further agree, promise, and covenant that, to the maximum extent permitted by law, neither I, nor any person, organization, or other entity acting on my behalf has filed or will file, charge, claim, sue, or cause or permit to be filed, charged, or claimed, any action for damages or other relief (including injunctive, declaratory, monetary, or other relief) against any of the Releasees involving any matter occurring in the past, or involving or based upon any claims, demands, causes of action, obligations, damages, or liabilities, in each case which are involving any matter occurring in the past, or involving or based upon any claims, demands, causes of action, obligations, damages, or liabilities, in each case which are subject to this release of claims. All Releasees shall be deemed to be third party beneficiaries of this Agreement to the same extent as if they were signatories hereto.

Notwithstanding the foregoing, this release of claims will not prohibit me from filing a charge of discrimination with the National Labor Relations Board, the Equal Employment Opportunity Commission (“EEOC”) or an equivalent state civil rights agency, but I agree and understand that I am waiving my right to monetary compensation thereby if any such agency elects to pursue a claim on my behalf. Further, nothing in this release of claims shall be construed to waive any right that is not subject to waiver by private agreement under federal, state or local employment or other laws, such as claims for workers’ compensation or unemployment benefits or any claims that may arise after the date on which I execute this release.

In addition, nothing in this release of claims will be construed to affect any of the following claims, all rights in respect of which are reserved:

(a) Payment of the Annual Bonus as set forth above;

(b) Reimbursement of unreimbursed business expenses properly incurred prior to the Separation Date in accordance with Company policy;

(c) Claims under in respect of vested stock options under the agilon health, inc. 2021 Omnibus Equity Incentive Plan (the “Equity Plan”) held by me as of the Separation Date;

(d) Vested benefits under the general Company employee benefit plans (other than severance pay or termination benefits, all rights to which are hereby waived and released);

(e) Any claim that the Company has breached this release of claims; and

(f) Indemnification as a current or former officer of the Company or inclusion as a beneficiary of any insurance policy related to my service in such capacity.

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2.Through the Separation Date, I will continue to devote my best efforts and full business time and attention to the business and affairs of the Company Group, and will provide such transition assistance reasonably requested by the Company Group’s Chief Executive Officer or his designee. If I materially breach this Agreement or any restrictive covenant for the benefit of the Company Group by which I am bound or, without the Company’s prior written consent, then from and after the date of such breach, the Company shall have no further payment obligations under this Agreement and may require me to repay the Annual Bonus.

3.Except for the Annual Bonus, I hereby represent that I have been paid all compensation owed and for all hours worked, I have received all the leave and leave benefits and protections for which I am eligible, pursuant to the federal Family and Medical Leave Act and any similar state or local law, any Company Group policy or any other applicable law, and I have not suffered any on-the-job injury or illness for which I have not already filed a workers’ compensation claim. By executing this release of claims, I confirm that I have no knowledge of any failure by me or anyone else at the Company to have complied with any applicable legal or regulatory requirements or material policies or practices of the Company.

4.By executing this Agreement, I confirm that I have no knowledge of any failure by me or anyone else at the Company Group to have complied with any applicable legal or regulatory requirements or material policies or practices of the Company Group, which has not previously been reported to the Company Group’s Chief Executive Officer or Chief Compliance Officer, and I have not been retaliated against for reporting any allegations of fraud or other wrongdoing.

5.I have been given twenty-one (21) days to review this Agreement and have been encouraged by representatives of the Company to consult with legal counsel, and I am signing this Agreement knowingly, voluntarily, and with full understanding of its terms and effects, and I voluntarily accept the payments provided for herein for the purpose of making full and final settlement of all claims referred to above. If I have signed this Agreement prior to the expiration of the twenty-one (21) day period, I have done so voluntarily. I also understand that the release of claims specifically applies to any rights or claims that I may have against the Company Group or any party released herein under the federal Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq., as amended (“ADEA”) and that notwithstanding anything in this Agreement to the contrary, this release of claims does not purport to waive rights or claims arising under ADEA that may arise from acts or events occurring after the date that this Agreement is signed by me and that I have the right to revoke my signature within seven (7) days of execution. Any revocation of this Agreement must be in writing and received by the Company by the close of business on the seventh day following my execution of this Agreement and shall be delivered to Lyn Amor Macaraeg at Lyn.Macaraeg@agilonhealth.com. If I elect to revoke this Agreement during the revocation period, this Agreement shall be void and of no effect in its entirety. However, I understand that the termination of my employment shall still be effective as of the Separation Date.

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6.Not later than the Separation Date, I agree to return, or hereby represent that I have returned as of such date (if I have not signed this Agreement by such date), to the Company all Company property, equipment and materials, including, but not limited to, any company vehicle, any laptop computer and peripherals; any cell phone or other portable computing device; any telephone calling cards; keys; Company identification card; any credit or fuel cards; and all tangible written or graphic materials (and all copies) relating in any way to the Company or its business, including, without limitations, documents, manuals, customer lists and reports, as well as all data contained on computer files, “thumb” drives, “cloud” services, or other data storage device, or home or personal computers and/or e-mail or internet accounts. I acknowledge and agree that the non-solicitation, confidentiality, non-disparagement and other obligations that are included in my award agreements under the Equity Plan will continue to apply to me after the Separation Date for the time periods provided therein in accordance with their terms.

7.Following the Separation Date, I shall reasonably cooperate with the Company’s requests for information and assistance with respect to the sale of products and issues or matters related to the Company and its affiliates of which I had knowledge during my employment with the Company, including being available for teleconference calls and questions and, if requested by the Company, exception-based on-site meetings, subject to my availability.

8.By my execution of this Agreement, I hereby resign from all officer and director positions with the Company Group effective as of the Separation Date. I agree that, as requested by the Company from time to time, I will execute such other documents as may be necessary to evidence the resignations covered by this Agreement.

9.I acknowledge and agree that I shall be solely responsible for all applicable taxes incurred by me from the payments and benefits under this Agreement and all such payments and benefits shall be subject to applicable federal, state and local withholding requirements.

10.This Agreement constitutes the entire agreement and understanding between any member of the Company Group and me with respect to the subject matter hereof and supersedes all prior agreements and understandings (whether written or oral) between me and any members of the Company Group relating to such subject matter. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to its conflicts of law principles that would result in the application of another state’s laws. Its language shall be construed as a whole, according to its fair meaning and not strictly for or against either party. Should any provision of this Agreement be declared or determined by any court to be illegal or invalid as a result of any action or proceeding, the validity of the remaining parts, terms, or provisions shall not be affected thereby and any said illegal or invalid part, term or provision shall be deemed not to be a part of this Agreement. This Agreement may be executed in counterparts (including via facsimile or .pdf file).

[Signature Page Follows]

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IN WITNESS WHEREOF, this Agreement has been executed by the undersigned and the Company as of the first date written below.

EXECUTIVE

_/s/ Lisa Dombro__________
Name: Lisa Dombro

Dated: February 25, 2021

Acknowledged and Agreed:

AGILON HEALTH
MANAGEMENT, INC.

_/s/ Mathew Varghese_______

By: Mathew Varghese

Title: Chief People Officer

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EX-10.4

Exhibit 10.4

SEPARATION AGREEMENT AND GENERAL RELEASE OF CLAIMS

This SEPARATION AGREEMENT AND GENERAL RELEASE (the “Agreement”), dated as of March 18 2022, is entered into by and among agilon health management, inc. (f/k/a agilon health, inc.) (the “Company” and together with its parent, agilon health, inc. and their respective subsidiaries and affiliates, the “Company Group”), and the undersigned, Theodore Halkias.

WHEREAS, I have tendered my notice of resignation to the Company, and my employment with the Company Group will end effective as of February 28, 2022 (the “Separation Date”);

WHEREAS, the Company has agreed to provide me with specified separation pay and benefits, subject to, among other things, my execution, delivery and non-revocation of a general release of claims; and

NOW, THEREFORE, in consideration of the promises set forth herein, and for other good and valuable consideration, the receipt and sufficiency whereof is hereby acknowledged, I hereby agree as follows:

1.In consideration of the payment of my annual cash bonus for the 2021 fiscal year of the Company Group pursuant to the agilon health bonus plan (the “Annual Bonus”), I hereby waive and release and forever discharge the Company Group, Clayton, Dubilier & Rice, LLC (“CD&R”) and its affiliated investment funds, and those entities which hold a direct and/or indirect interest in the Company and which serve as the general partner or managing member of any such vehicles or of the general partner or managing members of such vehicles, and their respective affiliates, and all of the respective past and present officers, directors, employees, agents, representatives, stockholders, members and partners of the foregoing and any and all employee pension benefit or welfare benefit plans of the Company Group, each in his, her or its capacity as such, and each of them, separately and collectively (collectively, “Releasees”), from any and all existing claims, charges, complaints, liens, demands, causes of action, obligations, damages and liabilities, known or unknown, suspected or unsuspected, whether or not mature or ripe, that I ever had and now have against any Releasee including, but not limited to, claims and causes of action arising out of or in any way related to my employment with or separation from the Company Group, to any services performed for any member of the Company Group, to any status, term or condition in such employment or relationship, to any equity interests that I have in or that were granted or committed to me by any member of the Company Group, or to any physical or mental harm or distress from such employment or non-employment or claim to any hire, rehire or future employment of any kind by any member of the Company Group, all to the extent allowed by applicable law. This release of claims includes, but is not limited to, claims based on express or implied contract, compensation plans, covenants of

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good faith and fair dealing, wrongful discharge, claims for discrimination, harassment and retaliation, violation of public policy, tort or common law, whistleblower or retaliation claims; and claims for additional compensation or damages or attorneys’ fees or claims under federal, state, and local laws, regulations and ordinances, including but not limited to Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Worker Adjustment and Retraining Notification Act (“WARN”), or equivalent state WARN act and the Employee Retirement Income Security Act (“ERISA”). I understand that this release of claims includes a release of all known and unknown claims through the date on which I execute this release.

I further agree, promise, and covenant that, to the maximum extent permitted by law, neither I, nor any person, organization, or other entity acting on my behalf has filed or will file, charge, claim, sue, or cause or permit to be filed, charged, or claimed, any action for damages or other relief (including injunctive, declaratory, monetary, or other relief) against any of the Releasees involving any matter occurring in the past, or involving or based upon any claims, demands, causes of action, obligations, damages, or liabilities, in each case which are involving any matter occurring in the past, or involving or based upon any claims, demands, causes of action, obligations, damages, or liabilities, in each case which are subject to this release of claims. All Releasees shall be deemed to be third party beneficiaries of this Agreement to the same extent as if they were signatories hereto.

Notwithstanding the foregoing, this release of claims will not prohibit me from filing a charge of discrimination with the National Labor Relations Board, the Equal Employment Opportunity Commission (“EEOC”) or an equivalent state civil rights agency, but I agree and understand that I am waiving my right to monetary compensation thereby if any such agency elects to pursue a claim on my behalf. Further, nothing in this release of claims shall be construed to waive any right that is not subject to waiver by private agreement under federal, state or local employment or other laws, such as claims for workers’ compensation or unemployment benefits or any claims that may arise after the date on which I execute this release.

In addition, nothing in this release of claims will be construed to affect any of the following claims, all rights in respect of which are reserved:

(a) Payment of the Annual Bonus as set forth above;

(b) Reimbursement of unreimbursed business expenses properly incurred prior to the Separation Date in accordance with Company policy;

(c) Claims in respect of vested stock options held by me as of the Separation Date;

(d) Vested benefits under the general Company employee benefit plans (other than severance pay or termination benefits, all rights to which are hereby waived and released);

(e) Any claim that the Company has breached this release of claims; and

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(f) Indemnification as a current or former officer of the Company or inclusion as a beneficiary of any insurance policy related to my service in such capacity including, without limitation, under Sections 21 and 22 of my Employment Agreement dated March 9, 2017, with the Company.

(g) My vested benefits under all retirement plans of the Company Group in which I am a participant.

2.Through the Separation Date, I will continue to devote my best efforts and full business time and attention to the business and affairs of the Company Group, and will provide such transition assistance as may be reasonably requested by the Company Group’s Chief Executive Officer, or his designee. If I materially breach this Agreement or any restrictive covenant for the benefit of the Company Group by which I am bound or, without the Company’s prior written consent, then from and after the date of such breach, the Company shall have no further payment obligations under this Agreement and may require me to repay the Annual Bonus.

3.Except for the Annual Bonus, I hereby represent that I have been paid all compensation owed and for all hours worked, I have received all the leave and leave benefits and protections for which I am eligible, pursuant to the federal Family and Medical Leave Act and any similar state or local law, any Company Group policy or any other applicable law, and I have not suffered any on-the-job injury or illness for which I have not already filed a workers’ compensation claim. By executing this release of claims, I confirm that I have no knowledge of any failure by me or anyone else at the Company to have complied with any applicable legal or regulatory requirements or material policies or practices of the Company.

4.By executing this Agreement, I confirm that I have no knowledge of any failure by me or anyone else at the Company Group to have complied with any applicable legal or regulatory requirements or material policies or practices of the Company Group, which has not previously been reported to the Company Group’s Chief Executive Officer or Chief Compliance Officer, and I have not been retaliated against for reporting any allegations of fraud or other wrongdoing.

5.I have been given twenty-one (21) days to review this Agreement and have been encouraged by representatives of the Company to consult with legal counsel, and I am signing this Agreement knowingly, voluntarily, and with full understanding of its terms and effects, and I voluntarily accept the payments provided for herein for the purpose of making full and final settlement of all claims referred to above. If I have signed this Agreement prior to the expiration of the twenty-one (21) day period, I have done so voluntarily. I also understand that the release of claims specifically applies to any rights or claims that I may have against the Company Group or any party released herein under the federal Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621 et seq., as amended (“ADEA”) and that notwithstanding anything in this Agreement to the contrary, this release of claims does not purport to waive rights or claims arising under ADEA that may arise from acts or events occurring after the date that this Agreement is signed by me and that I have the right to revoke my signature within seven (7) days of execution. Any

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revocation of this Agreement must be in writing and received by the Company by the close of business on the seventh day following my execution of this Agreement and shall be delivered to Lyn Amor Macaraeg at Lyn.Macaraeg@agilonhealth.com. If I elect to revoke this Agreement during the revocation period, this Agreement shall be void and of no effect in its entirety. However, I understand that the termination of my employment shall still be effective as of the Separation Date.

6.Not later than the Separation Date, I agree to return, or hereby represent that I have returned as of such date (if I have not signed this Agreement by such date), to the Company all Company property, equipment and materials, including, but not limited to, any company vehicle, any laptop computer and peripherals; any cell phone or other portable computing device; any telephone calling cards; keys; Company identification card; any credit or fuel cards; and all tangible written or graphic materials (and all copies) relating in any way to the Company or its business, including, without limitations, documents, manuals, customer lists and reports, as well as all data contained on computer files, “thumb” drives, “cloud” services, or other data storage device, or home or personal computers and/or e-mail or internet accounts. I acknowledge and agree that the non-solicitation, confidentiality, non-disparagement and other obligations that are included in my Employee Stock Option Agreement dated July 2017 will continue to apply to me after the Separation Date for the time periods provided therein in accordance with their terms.

7.Following the Separation Date, I shall reasonably cooperate with the Company’s requests for information and assistance with respect to the sale of products and issues or matters related to the Company and its affiliates of which I had knowledge during my employment with the Company, including being available for teleconference calls and questions and, if requested by the Company, exception-based on-site meetings, subject to my availability. My obligations pursuant to this Section 7 shall consist of no more than 10 hours of support in any given calendar month and shall conclude six (6) months following the Separation Date, unless otherwise agreed to in advance by me.

8.By my execution of this Agreement, I hereby resign from all officer and director positions with the Company Group effective as of the Separation Date. I agree that, as requested by the Company from time to time, I will execute such other documents as may be necessary to evidence the resignations covered by this Agreement.

9.I acknowledge and agree that I shall be solely responsible for all applicable taxes incurred by me from the payments and benefits under this Agreement and all such payments and benefits shall be subject to applicable federal, state and local withholding requirements.

10.This Agreement constitutes the entire agreement and understanding between any member of the Company Group and me with respect to the subject matter hereof and supersedes all prior agreements and understandings (whether written or oral) between me and any members of the Company Group relating to such subject matter. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to its conflicts of law principles that would result in the application of another state’s laws. Its language shall be construed as a whole, according to its fair meaning and not strictly for or against either party. Should any provision of this Agreement

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be declared or determined by any court to be illegal or invalid as a result of any action or proceeding, the validity of the remaining parts, terms, or provisions shall not be affected thereby and any said illegal or invalid part, term or provision shall be deemed not to be a part of this Agreement. This Agreement may be executed in counterparts (including via facsimile or .pdf file).

[Signature Page Follows]

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IN WITNESS WHEREOF, this Agreement has been executed by the undersigned and the Company as of the first date written below.

EXECUTIVE

_/s/ Theodore Halkias______
Name: Theodore Halkias

Dated: March 18, 2021

Acknowledged and Agreed:

AGILON HEALTH
MANAGEMENT, INC.

__/s/ Mathew Varghese______

By: Mathew Varghese

Title: Chief People Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven J. Sell, certify that:

1.I have reviewed this quarterly report on Form 10-Q of agilon health, inc. for the period ended March 31, 2022;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2022	By:	/s/ STEVEN J. SELL
		Steven J. Sell
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy S. Bensley, certify that:

1.I have reviewed this quarterly report on Form 10-Q of agilon health, inc. for the period ended March 31, 2022;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2022	By:	/s/ TIMOTHY S. BENSLEY
		Timothy S. Bensley
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of agilon health, inc. (the “Company”) on Form 10-Q for the period ending March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Steven J. Sell, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 5, 2022	By:	/s/ STEVEN J. SELL
		Steven J. Sell
		Chief Executive Officer
		(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of agilon health, inc. (the “Company”) on Form 10-Q for the period ending March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Timothy S. Bensley, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 5, 2022	By:	/s/ TIMOTHY S. BENSLEY
		Timothy S. Bensley
		Chief Financial Officer
		(Principal Financial Officer)

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 30, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Trading Symbol	AGL
Entity Registrant Name	agilon health, inc.
Entity Central Index Key	0001831097
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common stock, $0.01 par value
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	6210 E Hwy 290
Entity Address, Address Line Two	Suite 450
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78723
City Area Code	(562)
Local Phone Number	256-3800
Entity File Number	001-40332
Entity Tax Identification Number	37-1915147
Entity Common Stock, Shares Outstanding		406,730,863
Document Quarterly Report	true
Document Transition Report	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents		$ 1,021,754	$ 1,040,039
Restricted cash and equivalents	[1]	14,470	14,781
Receivables, net		571,869	293,407
Prepaid expenses and other current assets, net		19,847	18,968
Total current assets		1,627,940	1,367,195
Property and equipment, net		12,526	9,161
Intangible assets, net		53,709	55,398
Goodwill		41,540	41,540
Other assets, net		119,496	112,958
Total assets		1,855,211	1,586,252
Current liabilities:
Medical claims and related payables		472,323	239,014
Accounts payable and accrued expenses		133,138	112,946
Current portion of long-term debt		5,000	5,000
Total current liabilities		610,461	356,960
Long-term debt, net of current portion		42,172	43,401
Other liabilities		91,101	94,295
Total liabilities		743,734	494,656
Commitments and contingencies
Stockholders' equity (deficit):
Common stock, $0.01 par value: 2,000,000 shares authorized; 405,727 and 400,095 shares issued and outstanding, respectively		4,057	4,001
Additional paid-in capital		2,064,242	2,045,572
Accumulated deficit		(956,447)	(957,677)
Total agilon health, inc. stockholders' equity (deficit)		1,111,852	1,091,896
Noncontrolling interests		(375)	(300)
Total stockholders’ equity (deficit)		1,111,477	1,091,596
Total liabilities and stockholders' equity (deficit)		$ 1,855,211	$ 1,586,252

[1] Restricted cash and equivalents primarily consist of amounts used as collateral to secure letters of credit that the Company is required to maintain pursuant to contracts with payors.

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	405,727,000	400,095,000
Common stock, shares outstanding	405,727,000	400,095,000
Assets	$ 1,855,211	$ 1,586,252
Liabilities	743,734	494,656
Variable Interest Entity, Primary Beneficiary
Assets	712,600	420,500
Liabilities	$ 535,900	$ 282,000

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Total revenues	$ 653,445	$ 413,104
Expenses:
Medical services expense	566,208	360,354
Other medical expenses	44,773	23,661
General and administrative (including noncash stock-based compensation expense of $3,970 and $1,472, respectively)	39,834	37,777
Depreciation and amortization	3,373	3,427
Total expenses	654,188	425,219
Income (loss) from operations	(743)	(12,115)
Other income (expense):
Other income (expense), net	2,269	1,336
Interest expense	(871)	(2,941)
Income (loss) before income taxes	655	(13,720)
Income tax benefit (expense)	71	(16)
Income (loss) from continuing operations	726	(13,736)
Discontinued operations:
Income (loss) before income taxes	429	(1,351)
Income tax benefit (expense)	0	(64)
Total discontinued operations	429	(1,415)
Net income (loss)	1,155	(15,151)
Noncontrolling interests' share in (earnings) loss	75	73
Net income (loss) attributable to common shares	$ 1,230	$ (15,078)
Net income (loss) per common share, basic and diluted
Continuing operations	$ 0	$ (0.04)
Discontinued operations	$ 0	$ (0.01)
Basic	401,964	325,659
Diluted	424,065	325,659
Medical Services Revenue
Revenues:
Total revenues	$ 652,423	$ 412,412
Other Operating Revenue
Revenues:
Total revenues	$ 1,022	$ 692

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
General And Administrative Including Non Cash Stock-based Compensation Expense	$ 3,970	$ 1,472

XML

CONDENSED CONSOLIDATED STATEMENTS OF CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Noncontrolling Interests	Contingently Redeemable Common Stock
Beginning balance at Dec. 31, 2020	$ (284,730)	$ 2,494	$ 263,966	$ (551,190)
Contingently Redeemable Common Stock, Beginning balance, shares at Dec. 31, 2020						76,201
Contingently Redeemable Common Stock, Beginning balance at Dec. 31, 2020						$ 309,500
Beginning balance, shares at Dec. 31, 2020		249,374
Net income (loss)	(15,151)			(15,078)	$ (73)
Exercise of stock options and other, net	165		165
Exercise of stock options and other, net, shares		100
Stock-based compensation expense	1,472		1,472
Ending balance at Mar. 31, 2021	(298,244)	$ 2,494	265,603	(566,268)	(73)
Contingently Redeemable Common Stock, Ending balance, shares at Mar. 31, 2021						76,201
Contingently Redeemable Common Stock, Ending balance at Mar. 31, 2021						$ 309,500
Ending balance, shares at Mar. 31, 2021		249,474
Beginning balance at Dec. 31, 2021	$ 1,091,596	$ 4,001	2,045,572	(957,677)	(300)
Beginning balance, shares at Dec. 31, 2021	400,095	400,095
Net income (loss)	$ 1,155			1,230	(75)
Exercise of stock options and other, net	14,756	$ 56	14,700
Exercise of stock options and other, net, shares		5,632
Stock-based compensation expense	3,970		3,970
Ending balance at Mar. 31, 2022	$ 1,111,477	$ 4,057	$ 2,064,242	$ (956,447)	$ (375)
Ending balance, shares at Mar. 31, 2022	405,727	405,727

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income (loss)	$ 1,155	$ (15,151)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,373	3,481
Stock-based compensation expense	3,970	1,472
Loss on debt extinguishment	0	1,186
Loss (Income) from equity method investments	(2,033)	3
Other noncash items	556	1,763
Changes in operating assets and liabilities	(30,254)	(33,582)
Net cash provided by (used in) operating activities	(23,233)	(40,828)
Cash flows from investing activities:
Purchase of property and equipment, net	(4,049)	(178)
Purchase of intangible assets	(1,000)	(3,986)
Investment in loans receivable and other	(4,503)	(1,204)
Proceeds from repayment of loans receivable and other	183	0
Proceeds from sale of business and property, net of cash divested	500	(3,706)
Net cash provided by (used in) investing activities	(8,869)	(9,074)
Cash flows from financing activities:
Proceeds from exercise of stock options	14,756	165
Proceeds from the issuance of long-term debt	0	100,000
Repayments of long-term debt	(1,250)	(68,649)
Debt issuance costs	0	(1,218)
Net cash provided by (used in) financing activities	13,506	30,298
Net increase (decrease) in cash, cash equivalents and restricted cash and equivalents	(18,596)	(19,604)
Cash, cash equivalents and restricted cash and equivalents from continuing operations, beginning of period	1,054,820	135,178
Cash, cash equivalents and restricted cash and equivalents from discontinued operations, beginning of period		3,917
Cash, cash equivalents and restricted cash and equivalents, beginning of period	1,054,820	139,095
Cash, cash equivalents and restricted cash and equivalents, end of period	$ 1,036,224	$ 119,491

XML

Business

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Business

NOTE 1. Business

Description of Business

agilon health, inc., through its partnerships and platform, provides the necessary capabilities, capital, and business model for existing physician groups to create a Medicare-centric, globally capitated line of business. As of March 31, 2022, the Company, through its contracted physician networks, provided care to approximately 250,300 Medicare Advantage members enrolled with private health plans. Beginning January 1, 2022, the Company expanded its operations into: (i) Syracuse, New York, (ii) Grand Rapids and Traverse City, Michigan; (iii) Pinehurst, North Carolina; and (iii) Longview and Texarkana, Texas, along with additional partnerships in the Company’s existing Ohio markets. Beginning January 1, 2022, the Company also began operating three additional Direct Contracting Entities (“DCE”) that, in collaboration with four of its physician group partners, are participating in the Center for Medicare & Medicaid Services Innovation Center’s Direct Contracting Model, which is being redesigned and renamed the Accountable Care Organization Realizing Equity, Access, and Community Health (“ACO REACH”) beginning in 2023.

See Note 13 for additional discussions related to the Company’s involvement with VIEs.

The Company is ultimately controlled by an investment fund associated with Clayton Dubilier & Rice, LLC (“CD&R”), a private equity firm headquartered in New York, New York. All funds affiliated with CD&R are considered related parties.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information.

The condensed consolidated financial statements include the accounts of agilon health, inc., its wholly-owned subsidiaries, and both joint ventures and VIEs that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. All adjustments (consisting of normal recurring adjustments unless otherwise indicated), which the Company considers necessary to present fairly its financial position, results of operations, and cash flows, have been included. Operating results for the three months ended March 31, 2022, including the impact of COVID-19, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”).

Use of Estimates

Management is required to make estimates and assumptions in the preparation of financial statements. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates can include, among other things, those used to determine revenues and related receivables from risk adjustments, medical services expense and related payables (including the reserve for incurred but not reported (“IBNR”) claims), and the valuation and related recognition of impairments of long-lived assets, including goodwill. Management’s estimates for revenue recognition, medical services expense, and other estimates, judgments, and assumptions, may be materially and adversely different from actual results as a result of the COVID-19 pandemic, among other things. See Note 8 for additional discussion on the impact of the COVID-19 pandemic. These estimates are based on knowledge of current events and anticipated future events, and accordingly, actual results may ultimately differ materially from those estimates.

Goodwill and Amortizable Intangible Assets

As of both March 31, 2022 and December 31, 2021, goodwill of $39.0 million was allocated to the Company’s Hawaii reporting unit, which had a negative carrying value.

As of March 31, 2022 and December 31, 2021, the Company’s gross carrying amount of amortizable intangible assets was $109.7 million and $108.7 million, with accumulated amortization of $56.0 million and $53.3 million, respectively. For the three months ended March 31, 2022 and 2021, the Company recognized $2.7 million and $2.8 million, respectively, in amortization expense, which is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Property and Equipment

As of March 31, 2022 and December 31, 2021, the Company’s gross carrying amount of property and equipment was $21.4 million and $17.4 million, with accumulated depreciation of $8.9 million and $8.2 million, respectively. For the three months ended March 31, 2022 and 2021, the Company recognized $0.7 million and $0.6 million, respectively, in depreciation expense, which is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Income Taxes

The Company determined the income tax provision for interim periods using an estimate of the Company’s annual effective tax rate, applied to year-to-date results, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimated annual effective tax rate, and if the estimated annual effective tax rate changes, a cumulative catch-up adjustment is recorded in that quarter. The Company applied the intra-period tax allocation rules to allocate income taxes between continuing operations and discontinued operations as prescribed in U.S. GAAP, where the tax effect of income (loss) before income taxes from continuing operations is computed without regard to the tax effects of income (loss) before income taxes from the other categories.

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Other Assets, net

3 Months Ended

Mar. 31, 2022

Other Assets [Abstract]

Other Assets, net

NOTE 4. Other Assets, net

The following table summarizes the Company’s other assets, net (in thousands):

	March 31, 2022		December 31, 2021
Loans to physician partners	$	78,686	$	76,821
Indemnification assets		2,117		2,107
Health plan deposits		11,728		11,523
Equity method investments(1)		11,236		6,690
Right-of-use assets		12,042		11,739
Other		3,687		4,078
	$	119,496	$	112,958

(1)See Note 13 for additional discussion related to the Company's equity method investments.

Loans to Physician Partners

The Company provided loans to its physician partners in connection with taxes payable on shares distributed to them in connection with the initial public offering ("IPO"). These loans mature between 2026 and 2031 with nominal interest compounding annually and no prepayment penalties. Such loans are stated at the amount expected to be collected.

Indemnification Assets

Indemnification assets have been established to offset certain pre-closing liabilities for which the prior owners of some of the Company’s California subsidiaries are obligated to indemnify the Company. The Company deems the amounts receivable under the indemnification agreements to be fully collectible should indemnification claims arise, and, as such, a valuation allowance is not deemed necessary.

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Medical Claims and Related Payables

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Medical Claims and Related Payables

NOTE 5. Medical Claims and Related Payables

Medical services expense represents costs incurred for medical services provided to members by physicians, hospitals and other ancillary providers for which the Company is financially responsible and that are paid either directly by the Company or by payors with whom the Company has contracted. Medical services expenses are recognized in the period in which services are provided and include estimates of claims that have been incurred but have either not yet been received, processed, or paid and as such, not reported.

Such estimates are developed using actuarial methods commonly used by health insurance actuaries that include a number of factors and assumptions including medical service utilization trends, changes in membership, observed medical cost trends, historical claim payment patterns and other factors. Generally, for the most recent months, the Company estimates claim costs incurred by applying observed medical cost trend factors to the average PMPM medical costs incurred in prior months for which more complete claims data are available.

Each period, the Company re-examines previously established medical claims payable estimates based on actual claim submissions and other changes in facts and circumstances. As more complete claims information becomes available, the Company adjusts its estimates and recognizes those changes in estimates in the period in which the change is identified. The difference between the estimated liability and the actual settlements of claims is recognized in the period the claims are settled. The Company’s medical claims payable balance represents management’s best estimate of its liability for unpaid medical costs as of March 31, 2022 and December 31, 2021. The Company uses judgment to determine the appropriate assumptions for developing the required estimates.

The following table presents the components of changes in medical claims and related payables (in thousands):

	March 31,
	2022			2021
Medical claims and related payables, beginning of the year	$	239,014		$	164,161
Components of incurred costs related to:
Current year		561,478			359,988
Prior years		4,730			366
Discontinued operations - current year		—			1,229
Discontinued operations - prior years		(85	)		(591	)
		566,123			360,992
Claims paid related to:
Current year		(167,526	)		(112,968	)
Prior years		(165,316	)		(131,363	)
Discontinued operations - current year		—			(298	)
Discontinued operations - prior year		28			(3,540	)
		(332,814	)		(248,169	)
Medical claims and related payables, end of the period	$	472,323		$	276,984

Medical claims and related payables presented in the periods above include immaterial balances related to claims liabilities associated with certain divested California businesses for which the Company has retained the liability for claims incurred prior to the date of divestiture.

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Other Liabilities

3 Months Ended

Mar. 31, 2022

Other Liabilities [Abstract]

Other Liabilities

NOTE 6. Other Liabilities

The following table summarizes the Company’s other liabilities (in thousands):

	March 31, 2022		December 31, 2021
Other long-term contingencies	$	67,390	$	71,344
Reserve for uncertain tax positions		2,117		2,107
Lease liabilities, long-term		8,268		7,904
Equity method liabilities – DCEs		7,234		6,380
Other		6,092		6,560
	$	91,101	$	94,295

As of March 31, 2022 and December 31, 2021, the Company’s accruals for contingent liabilities related to unasserted claims were $67.4 million and $71.3 million, respectively. The accrued amounts represent the Company’s estimate of probable losses in accordance with ASC Topic 450, Contingencies. The Company’s estimate of the range of reasonably possible losses in excess of such accruals was $0 to $37.3 million as of March 31, 2022.

See Note 13 for equity method liabilities related to the Company's DCE investments.

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Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

NOTE 7. Debt

On February 18, 2021, the Company executed a credit facility agreement (as amended by the First Amendment to Credit Agreement, dated as of March 1, 2021, the “Credit Facilities”). The Credit Facilities include: (i) a $100.0 million secured term loan (the “Secured Term Loan Facility”) and (ii) a $100.0 million senior secured revolving credit facility (the “Secured Revolving Facility”) with a capacity to issue standby letters of credit in certain circumstances up to a maximum of $80.0 million. Subject to specified conditions and receipt of commitments, the Secured Term Loan Facility may be expanded (or a new term loan facility, revolving credit facility or letter of credit facility added) by up to (i) $50.0 million plus (ii) an additional amount determined in accordance with a formula tied to repayment of certain of the Company’s indebtedness. The proceeds from the Secured Term Loan Facility were used to refinance an aggregate of $68.6 million of outstanding indebtedness under the prior credit facility and unsecured debt, with the remaining $30.1 million of net proceeds used for working capital and other general corporate purposes. In connection with the refinance of the existing debt, the Company recognized $1.1 million of additional interest expense for the write-off of the related debt issuance costs. The Secured Term Loan Facility required, among other things, a mandatory prepayment of $50.0 million if gross proceeds from the IPO exceeded $1.0 billion. On April 26, 2021, the Company repaid $50.0 million of the Secured Term Loan Facility. The maturity date of the Credit Facilities is February 18, 2026, with mandatory periodic payments.

As of March 31, 2022, the Company had $47.5 million outstanding under the Secured Term Loan Facility and availability under the Secured Revolving Facility was $49.9 million, as the Company had outstanding letters of credit totaling $50.1 million, of which $26.5 million was for the Company's DCE investments. The standby letters of credit are automatically extended without amendment for one-year periods, unless the Company notifies the institution in advance of the expiration date that the letter will be terminated. No amounts have been drawn on the outstanding letters of credit as of March 31, 2022.

At the Company’s option, borrowings under the agreement, can be either: (i) LIBO Rate Loans or (ii) Base Rate Loans. LIBO Rate Loans bear interest at a rate equal to the sum of 4.00% (stepping down to 3.50% on and following October 1, 2023) and the higher of (a) LIBO, as defined in the credit agreement, and (b) 0%. Base Rate Loans bear interest at a rate equal to the sum of 3.00% (stepping down to 2.50% on and following October 1, 2023) and the highest of: (a) 0.50% in excess of the overnight federal funds rate, (b) the prime rate established by the administrative agent from time to time, (c) the one-month LIBO rate (adjusted for maximum reserves) plus 1.00% and (d) 0%. Additionally, the Company pays a commitment fee on the unfunded 2021 Revolving Credit Facility amount of 0.50% (stepping down to 0.375% on and following October 1, 2023). The Company must also pay customary letter of credit fees. As of March 31, 2022, the weighted average effective interest rate on the Secured Term Loan Facility was 4.55%.

The Credit Facilities are guaranteed by certain of the Company’s subsidiaries, including those identified as VIEs, and contain customary covenants including, among other things, limitations on restricted payments including: (i) dividends and distributions from restricted subsidiaries, (ii) requirements of minimum financial ratios, and (iii) limitation on additional borrowings based on certain financial ratios. Failure to meet any of these covenants could result in an event of default under the agreement. If an event of default occurs, the lenders could elect to declare all amounts outstanding under the agreement to be immediately due and payable. As of March 31, 2022, the Company was in compliance with all covenants under the Credit Facilities.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 8. Commitments and Contingencies

Legal Proceedings

From time to time, the Company is a party to, or has a significant relationship to, legal proceedings, lawsuits, and other claims. Except as described below, the Company is not aware of any legal proceedings or claims that it believes may have, individually or taken together, a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s policy is to expense legal costs as they are incurred.

COVID-19

The Company continues to monitor and assess the estimated operating and financial impact of the COVID-19 pandemic, and as it evolves, the Company continues to process, assemble, and assess member utilization information. The COVID-19 pandemic continues to evolve and the ultimate impact on the Company's business, results of operations, financial condition and cash flows remains uncertain. During 2021 and the first quarter of 2022, overall care activity continued to increase, including a mix of temporary deferral of care activity and COVID-19 related care costs. These costs may be incurred at future points in time, and it is possible that the deferral of healthcare services, or the impact of the Company’s members (who are seniors typically with chronic conditions) being diagnosed with COVID-19, could cause additional health problems in its existing members, which could increase costs in the future. In future periods, care patterns may moderately exceed normal baselines as previously deferred care is obtained and acuity temporarily rises due to missed regular care. From time to time, health system capacity may be subject to possible increased volatility due to the pandemic. The Company cannot accurately estimate the net ultimate impact, positive or negative, to medical services expense at this time.

Given the disruption caused by COVID-19, it is unclear whether the Company’s contracted physicians will be able to document the health conditions of members as comprehensively as they did in historical periods. Because risk adjustment factors in the current period are based on the preceding year’s diagnosed disease conditions, the Company’s revenue in future periods may be adversely impacted.

The ultimate impact of the COVID-19 pandemic on the Company’s operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak, new information that may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued business disruption. The ultimate impact of these matters to the Company and its financial condition cannot be reasonably estimated at this time.

The Company believes that its cash resources, funds from the IPO in April 2021, borrowing capacity available under the Secured Revolving Facility, and cash flow generated from operations will continue to be sufficient to withstand the financial impact of the pandemic and will enable the Company to continue to support its operations, regulatory requirements, debt repayment obligations, and geography expansion for the foreseeable future.

Regulatory Matters

The healthcare industry is subject to numerous laws and regulations of federal, state, and local governments. Violations of these laws and regulations could result in expulsion from government healthcare programs, together with the imposition of significant fines and penalties. Compliance with such laws and regulations can be subject to future government review and interpretation, as well as regulatory actions unknown or unasserted at this time.

The healthcare regulatory landscape is constantly changing. It is difficult to predict which final rules may be adopted and implemented by federal and state authorities, and if such final rules would result in any material adverse effect on the Company’s business, consolidated financial condition, results of operations, or cash flows. Management is unable to determine how any future government spending cuts will affect Medicare reimbursement. There likely will continue to be legislative and regulatory proposals at the federal and state levels directed at containing or lowering the cost of healthcare that, if adopted, could have a material adverse effect on the Company’s condensed consolidated financial statements.

Compliance Requirements

In February 2018, the Company self-disclosed to the California Department of Managed Health Care (“DMHC”), the California Department of Health Care Services, and its affected payors certain noncompliant practices in the Company’s claims and utilization management. The Company submitted various reports in May, June, and August of 2018 and coordinated with the DMHC and certain of its payors to remediate noncompliant claims and utilization management practices and implement improvements through various corrective action plan (“CAPs”). On December 17, 2019, the Company completed substantial remediation of all known deficiencies identified by the DMHC’s audit findings. In February 2021, the Company completed divesting all of its California operations. On March 9, 2021, the Company received a set of investigative interrogatories from the DMHC pursuant to its investigation of conduct and matters described in the Company’s various reports. The interrogatories sought information concerning certain claims data and authorizations denied due to lack of medical necessity, including information regarding the health plans affected thereby. The Company responded timely to such interrogatories and provided requested information. Any adverse review, audit or investigation could result in, among other things: refunding of amounts the Company have been paid pursuant to its contracts; or the imposition of fines, penalties and other sanctions on the Company, or certain of its payors. While the Company does not expect the amount to be material, it is unable to predict the potential dollar value of recoupments or fines, penalties or other sanctions that may be imposed on the Company or the impacted payors related to the DMHC’s audit findings, if any. Per publicly available information, six out of the nine impacted payors have entered into letters of agreement with the DMHC whereby each of the payors have agreed to pay an administrative penalty related to the deficiencies. These penalties equal $0.2 million in the aggregate. At least one payor formally sought indemnification from the Company in the amount of $80,000 for penalties related to the DMHC audit findings. The Company is unable to predict the potential dollar value of claims or demands that could be asserted in the future, if any. While the Company has divested all of its California operations as of February 2021, for the Southern California and Fresno divestiture transactions the Company will continue to be responsible for any liabilities arising from the business which were incurred prior to the closing date of each transaction, including any fines, penalties and other sanctions relating to the DMHC matter described above, the payment of claims for medical services incurred prior to the effective date of each transaction, a liability for unrecognized tax benefits for which the Company is indemnified and other contingent liabilities that management currently believe are remote.

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Common Stock

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Common Stock

NOTE 9. Common Stock

Common Stock

As of March 31, 2022, the Company’s authorized capital stock consisted of 2.0 billion shares of common stock, par value $0.01 per share.

2022. During the three months ended March 31, 2022, the Company issued approximately 5.6 million shares of common stock primarily in connection with exercises and vesting of stock-based awards.

2021. During the three months ended March 31, 2021, the Company issued approximately 100,000 shares of common stock primarily in connection with exercises and vesting of stock-based awards.

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Net Income (Loss) Per Common Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

NOTE 10. Net Income (Loss) Per Common Share

Basic net income (loss) per common share (“EPS”) is computed based upon the weighted average number of common shares outstanding. Diluted net income (loss) per common share is computed based upon the weighted average number of common shares outstanding plus the impact of common shares issuable from the assumed conversion of stock options, certain performance restricted stock units, and unvested restricted stock units. Only those instruments having a dilutive impact on basic loss per share are included in diluted loss per share during the periods presented.

The following table illustrates the computation of basic and diluted EPS (in thousands, except per share amounts):

	Three Months Ended March 31,
	2022		2021
Numerator
Income (loss) from continuing operations	$	726	$	(13,736	)
Noncontrolling interests’ share in (earnings) loss from    continuing operations		75		73
Net income (loss) attributable to common stockholders    before discontinued operations		801		(13,663	)
Income (loss) from discontinued operations		429		(1,415	)
Net income (loss) attributable to common stockholders	$	1,230	$	(15,078	)
Denominator
Weighted average shares outstanding – basic		401,964		325,659
Weighted average shares outstanding – diluted		424,065		325,659
Net income (loss) per share attributable to    common stockholders
Net income (loss) per common share from    continuing operations, basic and diluted	$	—	$	(0.04	)
Net income (loss) per common share from    discontinued operations, basic and diluted	$	—	$	(0.01	)

Basic net income (loss) per share is the same as diluted net income (loss) per share for the three months ended March 31, 2021, as the inclusion of all potential common shares outstanding would have been antidilutive. The following table provides the weighted-average potential shares of common stock that were excluded from the calculation of diluted net income (loss) per share attributable to common stockholders because their effect would have been anti-dilutive (in thousands):

	Three Months Ended March 31,
	2022		2021
Stock options - service only condition		1,503		23,582
Equity awards - market and/or performance condition		909		17,830
Restricted stock units		89		110

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Discontinued Operations

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

NOTE 11. Discontinued Operations

Discontinued operations are a component of an entity that has either been disposed of or is deemed held-for-sale and, (i) the operations and cash flows of the component have been or will be eliminated from ongoing operations as a result of the disposal transaction, and (ii) the entity will not have any significant continuing involvement in the operations of the component after the disposal transaction.

During 2020, the Company implemented a plan to divest its California operations, which included the entirety of its Medicaid line of business, via three separate transactions with different parties. In August 2020, October 2020 and February 2021, the Company disposed of its Southern California operations, Fresno, California operations, and remaining California operations, respectively. The Company’s decision to exit California and the Medicaid line of business represented a strategic shift that had a major effect on its operations and financial results. As such, the Company’s California operations are reflected in the condensed consolidated financial statements as discontinued operations.

See Note 8 for additional details on the Company's investigative interrogatories from the DMHC.

The results of discontinued operations are as follows (in thousands):

	Three Months Ended March 31,
	2022			2021
Revenues:
Medical services revenue	$	344		$	3,847
Other operating revenue		—			23
Total revenues		344			3,870
Expenses:
Medical services expense		(85	)		638
Other medical expenses		—			2,480
General and administrative		—			2,588
Depreciation and amortization		—			54
Income (loss) from operations		429			(1,890	)
Other income (expense), net		—			48
Gain (loss) on sale of assets		—			491
Income (loss) before income taxes		429			(1,351	)
Income tax benefit (expense)		—			(64	)
Net income (loss) from    discontinued operations	$	429		$	(1,415	)

The following table provides significant non-cash operating items for discontinued operations that are included in the condensed consolidated statements of cash flows (in thousands):

	For the Three Months Ended March 31,
	2022		2021
Non-cash operating activities from discontinued operations:
Depreciation and amortization	$	—	$	54

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Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2022

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

NOTE 12. Supplemental Cash Flow Information

The following table provides supplemental cash flow information (in thousands):

	Three Months Ended March 31,
	2022		2021
Supplemental cash flow information:
Interest paid	$	959	$	1,921
Income taxes paid		3,098		16
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use asset obtained in exchange for new operating lease liability		1,178		689
Non-cash investment in unconsolidated subsidiaries		190		—

The following table summarizes cash, cash equivalents and restricted cash equivalents from continuing operations (in thousands):

	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	1,021,754	$	1,040,039
Restricted cash and equivalents(1)		14,470		14,781
Cash, cash equivalents and restricted cash equivalents	$	1,036,224	$	1,054,820

Restricted cash and equivalents primarily consist of amounts used as collateral to secure letters of credit that the Company is required to maintain pursuant to contracts with payors.

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Variable Interest Entities

3 Months Ended

Mar. 31, 2022

Variable Interest Entities [Abstract]

Variable Interest Entities

NOTE 13. Variable Interest Entities

Consolidated Variable Interest Entities

agilon health, inc.’s consolidated assets and liabilities as of March 31, 2022 and December 31, 2021 include certain assets of VIEs that can only be used to settle the liabilities of the related VIE. The VIE creditors do not have recourse to agilon health, inc.

agilon health, inc.’s consolidated assets and liabilities include VIE assets and liabilities as follows (in thousands):

	March 31, 2022		December 31, 2021
Assets(1)
Cash and cash equivalents	$	124,303	$	104,741
Restricted cash equivalents		13,210		13,210
Receivables, net		548,462		276,590
Prepaid expenses and other current assets, net		8,042		7,046
Property and equipment, net		1,516		1,147
Intangible assets, net		6,534		7,220
Other assets, net		10,536		10,580
Liabilities(1)
Medical claims and related payables		428,847		195,812
Accounts payable and accrued expenses		102,733		81,702
Other liabilities		4,338		4,521

(1)Assets and liabilities of VIEs presented above include the assets and liabilities of the Company’s Independent Practice Associations in California, which are consolidated VIEs and whose operations are reflected in the condensed consolidated financial statements as discontinued operations.

Risk-bearing Entities. At March 31, 2022, the Company operates 18 wholly-owned risk-bearing entities (“RBEs”) for the purpose of entering into risk-bearing contracts with payors. Each RBE’s equity at risk is considered insufficient to finance its activities without additional support, and, therefore, each RBE is considered a VIE. The Company consolidates the RBEs as it has determined that it is the primary beneficiary because it has: (i) the ability to control the activities that most significantly impact the RBEs’ economic performance; and (ii) the obligation to absorb losses or right to receive benefits that could potentially be significant to the RBEs. Specifically, the Company has the unilateral ability and authority, through the RBE governance and management agreements, to make significant decisions about strategic and operating activities of the RBEs, including negotiating and entering into risk-bearing contracts with payors and approving the RBEs’ annual operating budgets. The Company also has the obligation to fund losses of the RBEs and the right to receive a significant percentage of any financial surplus generated by the RBEs. The assets of the RBEs primarily consist of cash and cash equivalents, receivables, net, intangible assets, net, and other assets, net; its obligations primarily consist of medical claims and related payables as well as operating expenses of the RBEs (accounts payable and accrued expenses), including incentive compensation obligations to the Company’s physician partners. On February 18, 2021, the Company executed the Credit Facilities, which are guaranteed by certain of the Company’s VIEs. Assets generated by the RBEs (primarily from medical services revenues) may be used, in certain limited circumstances, to settle the Company’s contractual debt obligations.

Unconsolidated Variable Interest Entities

As of March 31, 2022, the Company had 10 equity method investments (liabilities) that were deemed to be VIEs. The Company has determined that the activities that most significantly impact the performance of these VIEs consist of the allocation of resources to and other decisions related to clinical activities and provider contracting decisions. Because the Company does not have the ability to control these activities due to another party’s control of the VIEs’ board of directors, the Company has determined that it is not the primary beneficiary of and therefore does not consolidate these VIEs. The Company's maximum loss exposure as a result of the Company’s involvement with the VIEs cannot be quantified as the Company has the obligation to provide ongoing operational support to the unconsolidated VIEs, as needed.

Equity Method Investments

The following table summarizes the Company’s equity method investments (in thousands):

	March 31, 2022			December 31, 2021
Equity method investments - Other(1)	$	8,180		$	6,690
Equity method investments - DCEs(1)		3,056			—
Equity method liabilities - DCEs(2)		(7,234	)		(6,380	)

(1)Included in Other assets, net in the consolidated balance sheets.

(2)Included in Other liabilities in the consolidated balance sheets.

The Company is a partner in eight wholly-owned DCEs in collaboration with 12 of its physician group partners operating in 10 geographies. The combined summarized operating results of the Company’s DCEs are as follows (in thousands):

	Three Months Ended March 31, 2022
Medical services revenue	$	267,713
Medical services expense		(248,351	)
Other medical expenses(1)		(12,644	)
Net income (loss)(2)		2,012

(1)For the three months ended March 31, 2022, includes physician incentive expenses of $6.2 million.

(2)Included in Other income (expense) in the consolidated statement of operations.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information.

The condensed consolidated financial statements include the accounts of agilon health, inc., its wholly-owned subsidiaries, and both joint ventures and VIEs that it controls through voting rights or other means. Intercompany transactions and balances have been eliminated upon consolidation. All adjustments (consisting of normal recurring adjustments unless otherwise indicated), which the Company considers necessary to present fairly its financial position, results of operations, and cash flows, have been included. Operating results for the three months ended March 31, 2022, including the impact of COVID-19, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”).

Use of Estimates

Use of Estimates

Management is required to make estimates and assumptions in the preparation of financial statements. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates can include, among other things, those used to determine revenues and related receivables from risk adjustments, medical services expense and related payables (including the reserve for incurred but not reported (“IBNR”) claims), and the valuation and related recognition of impairments of long-lived assets, including goodwill. Management’s estimates for revenue recognition, medical services expense, and other estimates, judgments, and assumptions, may be materially and adversely different from actual results as a result of the COVID-19 pandemic, among other things. See Note 8 for additional discussion on the impact of the COVID-19 pandemic. These estimates are based on knowledge of current events and anticipated future events, and accordingly, actual results may ultimately differ materially from those estimates.

Goodwill and Amortizable Intangible Assets

Goodwill and Amortizable Intangible Assets

As of both March 31, 2022 and December 31, 2021, goodwill of $39.0 million was allocated to the Company’s Hawaii reporting unit, which had a negative carrying value.

As of March 31, 2022 and December 31, 2021, the Company’s gross carrying amount of amortizable intangible assets was $109.7 million and $108.7 million, with accumulated amortization of $56.0 million and $53.3 million, respectively. For the three months ended March 31, 2022 and 2021, the Company recognized $2.7 million and $2.8 million, respectively, in amortization expense, which is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Property and Equipment

Property and Equipment

As of March 31, 2022 and December 31, 2021, the Company’s gross carrying amount of property and equipment was $21.4 million and $17.4 million, with accumulated depreciation of $8.9 million and $8.2 million, respectively. For the three months ended March 31, 2022 and 2021, the Company recognized $0.7 million and $0.6 million, respectively, in depreciation expense, which is included in depreciation and amortization expense in the condensed consolidated statement of operations.

Income Taxes

Income Taxes

The Company determined the income tax provision for interim periods using an estimate of the Company’s annual effective tax rate, applied to year-to-date results, adjusted for discrete items arising in that quarter. In each quarter, the Company updates its estimated annual effective tax rate, and if the estimated annual effective tax rate changes, a cumulative catch-up adjustment is recorded in that quarter. The Company applied the intra-period tax allocation rules to allocate income taxes between continuing operations and discontinued operations as prescribed in U.S. GAAP, where the tax effect of income (loss) before income taxes from continuing operations is computed without regard to the tax effects of income (loss) before income taxes from the other categories.

Medical Services Revenue

Medical Services Revenue

Medical services revenue consists of capitation fees under contracts with various Medicare Advantage payors (“payors”). Under the typical capitation arrangement, the Company is entitled to monthly per-member, per-month (“PMPM”) fees to provide a defined range of healthcare services for Medicare Advantage health plan members (“members”) attributed to the Company’s contracted primary care physicians. PMPM fees are determined as a percent of the premium payors receive from the Centers for Medicare & Medicaid Services’ (“CMS”) for these members. The Company generally accepts full financial risk for members attributed to its contracted primary care physicians and therefore is responsible for the cost of all healthcare services required by those members. Fees are generally recorded gross in revenue because the Company is acting as a principal in coordinating and controlling the range of services provided (other than clinical decisions) under its capitation contracts with payors. Capitation contracts with payors are generally multi-year arrangements and have a single performance obligation that constitutes a series, as defined by Accounting Standards Codification ("ASC") 606, Revenue From Contracts With Customers, to stand ready on a monthly basis to provide all aspects of necessary medical care to members for the contracted period. The Company recognizes revenue in the month in which eligible members are entitled to receive healthcare benefits during the contract term.

The transaction price for the Company’s capitation contracts is variable, as the PMPM fees to which the Company is entitled are subject to periodic adjustment under CMS’s risk adjustment payment methodology. CMS deploys a risk adjustment model that determines premiums paid to all payors according to each member’s health status and certain demographic factors. Under this risk adjustment methodology, CMS calculates the risk adjusted premium payment using diagnosis data from various settings. The Company and healthcare providers collect and submit the necessary and available diagnosis data to payors and such data is utilized by the Company to estimate risk adjustment payments to be received in subsequent periods. Risk adjustment-related revenues are estimated using the most likely amount methodology and amounts are only included in revenue to the extent that it is probable that a significant reversal of cumulative revenue will not occur once any uncertainty is resolved. PMPM fees are also subject to adjustment for incentives or penalties based on the achievement of certain quality metrics defined in the Company’s contracts with payors. The Company recognizes incentive revenue as earned using the most likely amount methodology and only to the extent that it is probable that a significant reversal of cumulative revenue will not occur once any uncertainty is resolved.

Neither the Company nor any of its affiliates is a registered insurance company because state law in the states in which it operates does not require such registration for risk-bearing providers.

Receivables

Receivables

Receivables primarily consist of amounts due under capitation contracts with various payors. Receivables due under capitation contracts are recorded monthly based on reports received from payors and management’s estimate of risk adjustment payments to be received in subsequent periods for open performance years. Receivables are recorded and stated at the amount expected to be collected.

Concentration

Concentration

The Company is economically dependent on maintaining a base of primary care and specialty care physicians as well as capitation contracts with payors. The loss of certain of those contracts could have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

The Company contracts with various payors whereby the Company is entitled to monthly PMPM fees to provide a defined range of healthcare services for members attributed to its contracted primary care physicians. The Company generally accepts full financial risk for such members and therefore is responsible for the cost of all healthcare services required by them. Substantially all of the Company’s receivable balances are from a small number of payors.

Revenue from Medicare Advantage constitutes substantially all of the Company’s total revenue, accounting for nearly 100% of the Company’s total revenues for the three months ended March 31, 2022 and 2021.

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Other Assets, net (Tables)

3 Months Ended

Mar. 31, 2022

Other Assets [Abstract]

Schedule of Other Assets, Net

The following table summarizes the Company’s other assets, net (in thousands):

	March 31, 2022		December 31, 2021
Loans to physician partners	$	78,686	$	76,821
Indemnification assets		2,117		2,107
Health plan deposits		11,728		11,523
Equity method investments(1)		11,236		6,690
Right-of-use assets		12,042		11,739
Other		3,687		4,078
	$	119,496	$	112,958

(1)See Note 13 for additional discussion related to the Company's equity method investments.

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Medical Claims and Related Payables (Tables)

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Summary Changes in Medical Claims and Related Payables

The following table presents the components of changes in medical claims and related payables (in thousands):

	March 31,
	2022			2021
Medical claims and related payables, beginning of the year	$	239,014		$	164,161
Components of incurred costs related to:
Current year		561,478			359,988
Prior years		4,730			366
Discontinued operations - current year		—			1,229
Discontinued operations - prior years		(85	)		(591	)
		566,123			360,992
Claims paid related to:
Current year		(167,526	)		(112,968	)
Prior years		(165,316	)		(131,363	)
Discontinued operations - current year		—			(298	)
Discontinued operations - prior year		28			(3,540	)
		(332,814	)		(248,169	)
Medical claims and related payables, end of the period	$	472,323		$	276,984

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Other Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Other Liabilities [Abstract]

Summary of Other Liabilities

The following table summarizes the Company’s other liabilities (in thousands):

	March 31, 2022		December 31, 2021
Other long-term contingencies	$	67,390	$	71,344
Reserve for uncertain tax positions		2,117		2,107
Lease liabilities, long-term		8,268		7,904
Equity method liabilities – DCEs		7,234		6,380
Other		6,092		6,560
	$	91,101	$	94,295

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Net Income (Loss) Per Common Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Computation of Basic and Diluted EPS

The following table illustrates the computation of basic and diluted EPS (in thousands, except per share amounts):

	Three Months Ended March 31,
	2022		2021
Numerator
Income (loss) from continuing operations	$	726	$	(13,736	)
Noncontrolling interests’ share in (earnings) loss from    continuing operations		75		73
Net income (loss) attributable to common stockholders    before discontinued operations		801		(13,663	)
Income (loss) from discontinued operations		429		(1,415	)
Net income (loss) attributable to common stockholders	$	1,230	$	(15,078	)
Denominator
Weighted average shares outstanding – basic		401,964		325,659
Weighted average shares outstanding – diluted		424,065		325,659
Net income (loss) per share attributable to    common stockholders
Net income (loss) per common share from    continuing operations, basic and diluted	$	—	$	(0.04	)
Net income (loss) per common share from    discontinued operations, basic and diluted	$	—	$	(0.01	)

Summary of Weighted-average Potential Shares of Common Stock Were Excluded From Calculation of Diluted Net Income (Loss) Per Share Attributable to Common Stockholders

The following table provides the weighted-average potential shares of common stock that were excluded from the calculation of diluted net income (loss) per share attributable to common stockholders because their effect would have been anti-dilutive (in thousands):

	Three Months Ended March 31,
	2022		2021
Stock options - service only condition		1,503		23,582
Equity awards - market and/or performance condition		909		17,830
Restricted stock units		89		110

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Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Summary of Financial Statements Related to Discontinued Operations

	Three Months Ended March 31,
	2022			2021
Revenues:
Medical services revenue	$	344		$	3,847
Other operating revenue		—			23
Total revenues		344			3,870
Expenses:
Medical services expense		(85	)		638
Other medical expenses		—			2,480
General and administrative		—			2,588
Depreciation and amortization		—			54
Income (loss) from operations		429			(1,890	)
Other income (expense), net		—			48
Gain (loss) on sale of assets		—			491
Income (loss) before income taxes		429			(1,351	)
Income tax benefit (expense)		—			(64	)
Net income (loss) from    discontinued operations	$	429		$	(1,415	)

The following table provides significant non-cash operating items for discontinued operations that are included in the condensed consolidated statements of cash flows (in thousands):

	For the Three Months Ended March 31,
	2022		2021
Non-cash operating activities from discontinued operations:
Depreciation and amortization	$	—	$	54

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Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2022

Supplemental Cash Flow Elements [Abstract]

Summary of Supplemental Cash Flow Information

The following table provides supplemental cash flow information (in thousands):

	Three Months Ended March 31,
	2022		2021
Supplemental cash flow information:
Interest paid	$	959	$	1,921
Income taxes paid		3,098		16
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use asset obtained in exchange for new operating lease liability		1,178		689
Non-cash investment in unconsolidated subsidiaries		190		—

Summary of Cash, Cash Equivalents and Restricted Cash Equivalents from Continuing Operations

The following table summarizes cash, cash equivalents and restricted cash equivalents from continuing operations (in thousands):

	March 31, 2022		December 31, 2021
Cash and cash equivalents	$	1,021,754	$	1,040,039
Restricted cash and equivalents(1)		14,470		14,781
Cash, cash equivalents and restricted cash equivalents	$	1,036,224	$	1,054,820

Restricted cash and equivalents primarily consist of amounts used as collateral to secure letters of credit that the Company is required to maintain pursuant to contracts with payors.

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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2022

Variable Interest Entities [Abstract]

Summary of Consolidated Asset and Liabilities Include VIE Assets and Liabilities

agilon health, inc.’s consolidated assets and liabilities include VIE assets and liabilities as follows (in thousands):

	March 31, 2022		December 31, 2021
Assets(1)
Cash and cash equivalents	$	124,303	$	104,741
Restricted cash equivalents		13,210		13,210
Receivables, net		548,462		276,590
Prepaid expenses and other current assets, net		8,042		7,046
Property and equipment, net		1,516		1,147
Intangible assets, net		6,534		7,220
Other assets, net		10,536		10,580
Liabilities(1)
Medical claims and related payables		428,847		195,812
Accounts payable and accrued expenses		102,733		81,702
Other liabilities		4,338		4,521

(1)Assets and liabilities of VIEs presented above include the assets and liabilities of the Company’s Independent Practice Associations in California, which are consolidated VIEs and whose operations are reflected in the condensed consolidated financial statements as discontinued operations.

Schedule of Equity Method Investments

The following table summarizes the Company’s equity method investments (in thousands):

	March 31, 2022			December 31, 2021
Equity method investments - Other(1)	$	8,180		$	6,690
Equity method investments - DCEs(1)		3,056			—
Equity method liabilities - DCEs(2)		(7,234	)		(6,380	)

(1)Included in Other assets, net in the consolidated balance sheets.

(2)Included in Other liabilities in the consolidated balance sheets.

Summary of Operating Results

The combined summarized operating results of the Company’s DCEs are as follows (in thousands):

	Three Months Ended March 31, 2022
Medical services revenue	$	267,713
Medical services expense		(248,351	)
Other medical expenses(1)		(12,644	)
Net income (loss)(2)		2,012

(1)For the three months ended March 31, 2022, includes physician incentive expenses of $6.2 million.

(2)Included in Other income (expense) in the consolidated statement of operations.

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Business - Additional Information (Details)	Mar. 31, 2022 Medicare
Description of Business [Line Items]
Number of medicare advantage members enrolled with private health plans	250,300

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Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Summary Of Significant Accounting Policies [Line Items]
Gross carrying amount of amortizable intangible assets	$ 109.7		$ 108.7
Accumulated amortization	56.0		53.3
Amortization expense	2.7	$ 2.8
Gross carrying amount of property and equipment	21.4		17.4
Accumulated amortization	8.9		8.2
Depreciation expense	0.7	$ 0.6
Hawaii Reporting Unit
Summary Of Significant Accounting Policies [Line Items]
Goodwill	$ 39.0		$ 39.0

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Revenue, Receivables, and Concentration of Credit Risk - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Total Revenues | Medicare Advantage Payors | Major Payors
Concentration Risk [Line Items]
Concentration risk, percentage	100.00%	100.00%

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Revenue, Receivables, and Concentration of Credit Risk - Schedules of Concentration of Risk as a Percentage of Revenues and Receivables (Details) - Major Payors	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Total Revenues | Payor A
Concentration Risk [Line Items]
Concentration risk, percentage	25.00%	28.00%
Total Revenues | Payor B
Concentration Risk [Line Items]
Concentration risk, percentage	19.00%	21.00%
Total Revenues | Payor C
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%	12.00%
Total Revenues | Payor D
Concentration Risk [Line Items]
Concentration risk, percentage		10.00%
Receivables | Payor A
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%		18.00%
Receivables | Payor B
Concentration Risk [Line Items]
Concentration risk, percentage	21.00%		21.00%
Receivables | Payor C
Concentration Risk [Line Items]
Concentration risk, percentage	15.00%		14.00%
Receivables | Payor D
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%		12.00%

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Revenue, Receivables, and Concentration of Credit Risk - Schedules of Concentration of Risk as a Percentage of Revenues and Receivables (Parenthetical) (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Total Revenues | Payor D | Major Payors
Concentration Risk [Line Items]
Concentration risk, percentage		10.00%
Receivables | Payor D | Major Payors
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%		12.00%
Maximum [Member] | Total Revenues | Payor E
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%	10.00%

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Other Assets, net - Schedule of Other Assets, Net (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
Other Assets [Line Items]
Other assets, net		$ 119,496	$ 112,958
Equity method investments		7,234	6,380
Loans to Physician Partners
Other Assets [Line Items]
Other assets, net		78,686	76,821
Indemnification Assets
Other Assets [Line Items]
Other assets, net		2,117	2,107
Health Plan Deposits
Other Assets [Line Items]
Other assets, net		11,728	11,523
Right-Of-Use Assets
Other Assets [Line Items]
Right-of-use assets		12,042	11,739
Other
Other Assets [Line Items]
Other assets, net		3,687	4,078
Other Assets
Other Assets [Line Items]
Equity method investments	[1]	$ 11,236	$ 6,690

[1] See Note 13 for additional discussion related to the Company's equity method investments.

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Medical Claims and Related Payables - Summary Changes in Medical Claims and Related Payables (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Liability For Claims And Claims Adjustment Expense [Line Items]
Medical claims and related payables, beginning of the year	$ 239,014
Claims paid related to:
Medical claims and related payables, end of the period	472,323
Medical Claims and Related Payables
Liability For Claims And Claims Adjustment Expense [Line Items]
Medical claims and related payables, beginning of the year	239,014	$ 164,161
Components of incurred costs related to:
Current year	561,478	359,988
Prior years	4,730	366
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims	566,123	360,992
Claims paid related to:
Current year	(167,526)	(112,968)
Prior years	(165,316)	(131,363)
Claims paid related	(332,814)	(248,169)
Medical claims and related payables, end of the period	472,323	276,984
Discontinued Operations | Medical Claims and Related Payables
Components of incurred costs related to:
Current year	0	1,229
Prior years	(85)	(591)
Claims paid related to:
Current year	0	(298)
Prior years	$ (28)	$ (3,540)

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Other Liabilities - Summary of Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Other Liabilities [Line Items]
Other long-term contingencies	$ 67,390	$ 71,344
Reserve for uncertain tax positions	2,117	2,107
Lease liabilities, long-term	$ 8,268	$ 7,904
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Equity method liabilities - DCEs	$ 7,234	$ 6,380
Other	6,092	6,560
Other liabilities	$ 91,101	$ 94,295

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Other Liabilities - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Other Liabilities [Line Items]
Other long-term contingencies	$ 67,390	$ 71,344
Unasserted Claim [Member]
Other Liabilities [Line Items]
Other long-term contingencies	67,400	$ 71,300
Minimum [Member]
Other Liabilities [Line Items]
Estimated range of reasonably possible losses in excess of reserves accrued	0
Maximum [Member]
Other Liabilities [Line Items]
Estimated range of reasonably possible losses in excess of reserves accrued	$ 37,300

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Debt - Additional Information (Details) - USD ($)				3 Months Ended
	Oct. 01, 2023	Apr. 26, 2021	Feb. 18, 2021	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Refinance of aggregate outstanding indebtedness				$ 1,250,000	$ 68,649,000
Additional interest expense recognized to refinance of existing debt				(0)	$ (1,186,000)
2021 Secured Term Loan Facility
Debt Instrument [Line Items]
Maturity date		Feb. 18, 2026
Standby Letters of Credit
Debt Instrument [Line Items]
Credit facility remaining borrowing capacity			$ 80,000,000.0
Total outstanding letters of credit				$ 50,100,000
Extended term of letters of credit				1 year
Outstanding letters of credit, amount drawn				$ 0
Prior Credit Facility and Unsecured Debt
Debt Instrument [Line Items]
Refinance of aggregate outstanding indebtedness			68,600,000
Additional interest expense recognized to refinance of existing debt			1,100,000
Secured Term Loan Facility [Member]
Debt Instrument [Line Items]
Credit facility remaining borrowing capacity			100,000,000.0
Increase in amount of credit facility			50,000,000.0
Net proceeds from credit facility used for working capital and other general corporate purposes			30,100,000
Debt repayment		$ 50,000,000.0
Prepayment provision of the debt agreement			50,000,000.0
Credit facility amount outstanding				$ 47,500,000
Weighted average effective interest rate				4.55%
Secured Term Loan Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Proceeds from offering		$ 1,000,000,000.0
Secured Revolving Facility [Member]
Debt Instrument [Line Items]
Credit facility remaining borrowing capacity			$ 100,000,000.0
Credit facility amount outstanding				$ 49,900,000
Secured Revolving Facility [Member] | Unfunded Loan Commitment
Debt Instrument [Line Items]
Percentage of commitment fee				0.50%
Secured Revolving Facility [Member] | Forecast | Unfunded Loan Commitment
Debt Instrument [Line Items]
Percentage of commitment fee	0.375%
Secured Term Loan And Revolving Facility [Member]
Debt Instrument [Line Items]
Credit facility, covenant terms, description				Failure to meet any of these covenants could result in an event of default under the agreement. If an event of default occurs, the lenders could elect to declare all amounts outstanding under the agreement to be immediately due and payable
Credit facility, covenant compliance				As of March 31, 2022, the Company was in compliance with all covenants under the Credit Facilities.
Secured Term Loan And Revolving Facility [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				3.00%
Secured Term Loan And Revolving Facility [Member] | LIBO
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				0.00%
Secured Term Loan And Revolving Facility [Member] | LIBO | Forecast
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	3.50%
Secured Term Loan And Revolving Facility [Member] | LIBO | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				4.00%
Secured Term Loan And Revolving Facility [Member] | Base Rate Loans
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				0.00%
Secured Term Loan And Revolving Facility [Member] | Base Rate Loans | Forecast
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.50%
Secured Term Loan And Revolving Facility [Member] | Overnight Federal Funds Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				0.50%
Secured Term Loan And Revolving Facility [Member] | One-month LIBO Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				1.00%
DCE Investment | Standby Letters of Credit
Debt Instrument [Line Items]
Total outstanding letters of credit				$ 26,500,000

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Commitments and Contingencies - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) Payers
Commitments And Contingencies [Line Items]
Payors agree to pay administrative penalty to DMHC | $	$ 200,000
Number of payors entered to agreement | Payers	6
Number of payors | Payers	9
Penalty amount for DHMC audit | $	$ 80,000

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Common Stock - Additional Information (Details) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Subsidiary Sale Of Stock [Line Items]
Common stock, authorized capital stock	2,000,000,000		2,000,000,000
Common stock, par value	$ 0.01		$ 0.01
Number of shares issued under share-based awards	5,600,000	100,000

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Net Income (Loss) Per Common Share - Computation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator
Income (loss) from continuing operations	$ 726	$ (13,736)
Noncontrolling interests' share in (earnings) loss from continuing operations	75	73
Net income (loss) attributable to common stockholders before discontinued operations	801	(13,663)
Income (loss) from discontinued operations	429	(1,415)
Net income (loss) attributable to common shares	$ 1,230	$ (15,078)
Denominator
Weighted average shares outstanding - basic	401,964	325,659
Weighted average shares outstanding - diluted	424,065	325,659
Net income (loss) per common share, basic and diluted
Net income (loss) per common share from continuing operations, basic and diluted	$ 0	$ (0.04)
Net income (loss) per common share from discontinued operations, basic and diluted	$ 0	$ (0.01)

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Net Income (Loss) Per Common Share - Summary of Weighted-average Potential Shares of Common Stock Were Excluded From Calculation of Diluted Net Income (Loss) Per Share Attributable to Common Stockholders (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock Options - Service Only Condition
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,503	23,582
Equity Awards - Market and/or Performance Condition
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	909	17,830
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	89	110

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Discontinued Operations - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Description of divest operations	During 2020, the Company implemented a plan to divest its California operations, which included the entirety of its Medicaid line of business, via three separate transactions with different parties.

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Discontinued Operations - Summary of Results of Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total revenues	$ 344	$ 3,870
Income (loss) from operations	429	(1,890)
Other income (expense), net	0	48
Gain (loss) on sale of assets	0	491
Income (loss) before income taxes	429	(1,351)
Income tax benefit (expense)	0	(64)
Total discontinued operations	429	(1,415)
Medical Services Revenue
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total revenues	344	3,847
Other Operating Revenue
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total revenues	0	23
Medical Services Expense
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Expenses	(85)	638
Other Medical Expenses
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Expenses	0	2,480
General and Administrative
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Expenses	0	2,588
Depreciation and Amortization
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Expenses	$ 0	$ 54

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Discontinued Operations - Summary of Significant Non-Cash Operating Items for Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Non-cash operating activities from discontinued operations:
Depreciation and amortization	$ 0	$ 54

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Supplemental Cash Flow Information - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Supplemental cash flow information:
Interest paid	$ 959	$ 1,921
Income taxes paid	3,098	16
Supplemental disclosure of non-cash investing and financing activities:
Right-of-use asset obtained in exchange for new operating lease liability	1,178	689
Non-cash investment in unconsolidated subsidiaries	$ 190	$ 0

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Supplemental Cash Flow Information - Summary of Cash, Cash Equivalents and Restricted Cash Equivalents from Continuing Operations (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents		$ 1,021,754	$ 1,040,039
Restricted cash and equivalents	[1]	14,470	14,781
Cash, cash equivalents and restricted cash equivalents		$ 1,036,224	$ 1,054,820	$ 135,178

[1] Restricted cash and equivalents primarily consist of amounts used as collateral to secure letters of credit that the Company is required to maintain pursuant to contracts with payors.

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Variable Interest Entities - Summary of Consolidated Asset and Liabilities Include VIE Assets and Liabilities (Details) - USD ($) $ in Thousands		Mar. 31, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents		$ 1,021,754	$ 1,040,039
Receivables, net		571,869	293,407
Prepaid expenses and other current assets, net		19,847	18,968
Property and equipment, net		12,526	9,161
Intangible assets, net		53,709	55,398
Liabilities
Medical claims and related payables		472,323	239,014
Accounts payable and accrued expenses		133,138	112,946
Variable Interest Entity
ASSETS
Cash and cash equivalents	[1]	124,303	104,741
Restricted cash equivalents	[1]	13,210	13,210
Receivables, net	[1]	548,462	276,590
Prepaid expenses and other current assets, net	[1]	8,042	7,046
Property and equipment, net	[1]	1,516	1,147
Intangible assets, net	[1]	6,534	7,220
Other assets, net	[1]	10,536	10,580
Liabilities
Medical claims and related payables	[1]	428,847	195,812
Accounts payable and accrued expenses	[1]	102,733	81,702
Other liabilities	[1]	$ 4,338	$ 4,521

[1] Assets and liabilities of VIEs presented above include the assets and liabilities of the Company’s Independent Practice Associations in California, which are consolidated VIEs and whose operations are reflected in the condensed consolidated financial statements as discontinued operations.

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Variable Interest Entities - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 Equity Entity Physician Geographies
Variable Interest Entity [Line Items]
Number of geographies | Geographies	10
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of wholly-owned risk-bearing entities	18
Variable interest entity, methodology for determining whether Entity is primary beneficiary	The Company consolidates the RBEs as it has determined that it is the primary beneficiary because it has: (i) the ability to control the activities that most significantly impact the RBEs’ economic performance; and (ii) the obligation to absorb losses or right to receive benefits that could potentially be significant to the RBEs. Specifically, the Company has the unilateral ability and authority, through the RBE governance and management agreements, to make significant decisions about strategic and operating activities of the RBEs, including negotiating and entering into risk-bearing contracts with payors and approving the RBEs’ annual operating budgets.
Number of Direct Contracting Entities	8
Number of physician group partners | Physician	12
Variable Interest Entity, Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of equity method investments for VIEs | Equity	10

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Variable Interest Entities - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands		Mar. 31, 2022		Dec. 31, 2021
Other Assets | Equity Method Investments
Schedule Of Equity Method Investments [Line Items]
Equity method investments	[1]	$ 8,180		$ 6,690
Other Assets | Direct Contracting Entities
Schedule Of Equity Method Investments [Line Items]
Equity method investments		3,056	[1]
Other Liabilities | Direct Contracting Entities
Schedule Of Equity Method Investments [Line Items]
Equity method investments	[2]	$ (7,234)		$ (6,380)

[1] Included in Other assets, net in the consolidated balance sheets.

[2] Included in Other liabilities in the consolidated balance sheets.

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Variable Interest Entities - Summary of Operating Results (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2022	Mar. 31, 2021
Subsidiary or Equity Method Investee [Line Items]
Total revenues		$ 653,445	$ 413,104
Medical services expense		(566,208)	(360,354)
Other medical expenses		44,773	23,661
Net income (loss)		1,230	(15,078)
Medical Services Revenue
Subsidiary or Equity Method Investee [Line Items]
Total revenues		652,423	$ 412,412
Direct Contracting Entities
Subsidiary or Equity Method Investee [Line Items]
Medical services expense		(248,351)
Other medical expenses	[1]	(12,644)
Net income (loss)	[2]	(2,012)
Direct Contracting Entities | Medical Services Revenue
Subsidiary or Equity Method Investee [Line Items]
Total revenues		$ 267,713

[1] For the three months ended March 31, 2022, includes physician incentive expenses of $6.2 million.

[2] Included in Other income (expense) in the consolidated statement of operations.

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Variable Interest Entities - Summary of Operating Results (Parenthetical) (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Other Assets [Abstract]
Physician Compensation Expense	$ 6.2