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Variable Interest Entities (Tables)

3 Months Ended

Mar. 31, 2024

Organization, Consolidation and Presentation of Financial Statements [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, 2024		December 31, 2023
Assets
Cash and cash equivalents	$	59,680	$	62,154
Restricted cash equivalents	6,842		6,757
Receivables, net	1,569,319		940,618
Prepaid expenses and other current assets, net	21,926		21,907
Property and equipment, net	1,636		1,754
Intangible assets, net	46,578		25,561
Other assets, net	6,144		6,334
Liabilities
Medical claims and related payables	1,266,651		737,724
Accounts payable and accrued expenses	219,407		188,671
Other liabilities	5,062		4,184

Schedule of Equity Method Investments

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


	March 31, 2024		December 31, 2023
Equity method investments - Other(1)	$	9,477	$	9,148
Equity method investments - CMS ACO Models(1)	44,195		35,605
Equity method liabilities - CMS ACO Models(2)	(2,284)		(1,199)

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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.

Summary of Operating Results

The combined summarized operating results of the Company’s CMS ACO Models entities are as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Medical services revenue	$	440,160	$	280,529
Medical services expense	(398,792)		(257,477)
Other medical expenses(1)	(25,405)		(15,744)
Income (loss) from operations	9,532		2,001
Net income (loss)(2)	5,631		1,334

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(1)For the three months ended March 31, 2024 and 2023, includes physician incentive expenses of $16.7 million and $9.7 million, respectively.

(2)Included in Income (loss) from equity method investments in the condensed consolidated statements of operations.

Summarized Balance Sheet

The combined summarized balance sheet of the Company’s CMS ACO Models entities are as follows (in thousands):


	March 31, 2024		December 31, 2023
Current assets	$	294,399	$	174,967
Noncurrent assets	3,341		3,341
Total assets	297,740		178,308
Current and total liabilities	255,829		142,027

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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