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Variable Interest Entities
 6 Months Ended
Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities
NOTE 14. Variable Interest Entities
Consolidated Variable Interest Entities
agilon health, inc.’s consolidated assets and liabilities as of June 30, 2023 and December 31, 2022 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):
 June 30,
2023		December 31,
2022
Assets
Cash and cash equivalents$96,190 $155,819 
Restricted cash equivalents10,202 10,610 
Receivables, net1,397,387 492,077 
Prepaid expenses and other current assets, net21,289 15,515 
Property and equipment, net1,635 1,567 
Intangible assets, net19,545 17,347 
Other assets, net10,204 10,371 
Liabilities
Medical claims and related payables1,057,738 300,798 
Accounts payable and accrued expenses233,645 159,526 
Other liabilities4,147 2,059 
Risk-bearing Entities. At June 30, 2023, the Company operates 29 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 June 30, 2023, the Company had nine 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):
 June 30,
2023		December 31,
2022
Equity method investments - Other(1)
$9,083 $8,329 
Equity method investments - ACO REACH(1)
17,626 9,023 
Equity method liabilities - ACO REACH(2)
(2,198)(4,657)
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(1)Included in Other assets, net in the condensed consolidated balance sheets.
(2)Included in Other liabilities in the condensed consolidated balance sheets.
The Company is a partner in eight wholly-owned ACO REACH entities in collaboration with 12 of its physician group partners operating in 10 geographies. The combined summarized operating results of the Company’s ACO REACH entities are as follows (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Medical services revenue$280,820 $277,050 $561,349 $544,763 
Medical services expense(241,844)(255,663)(499,321)(504,014)
Other medical expenses(1)
(23,424)(12,160)(39,168)(24,804)
Income (loss) from operations11,184 6,185 13,185 9,368 
Net income (loss)(2)
8,426 5,694 9,760 7,706 
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(1)For the three months ended June 30, 2023 and 2022, includes physician incentive expenses of $16.6 million and $5.9 million, respectively. For the six months ended June 30, 2023 and 2022, includes physician incentive expenses of $26.3 million and $12.1 million, respectively.
(2)Included in Other income (expense) in the condensed consolidated statements of operations.
The combined summarized balance sheet of the Company’s ACO REACH entities are as follows (in thousands):
 June 30,
2023		December 31,
2022
Current assets$92,929 $70,625 
Noncurrent assets130 — 
Total assets93,059 70,625 
Current and total liabilities78,584 67,343