Evolent Health, Inc. (EVH) Bundle
An Overview of Evolent Health, Inc. (EVH)
General Summary of Evolent Health, Inc. (EVH)
Evolent Health, Inc. (EVH) was founded in 2011 and is a leading provider of technology-enabled services for healthcare organizations. The company specializes in value-based care, offering solutions that enhance the quality and efficiency of healthcare delivery. Evolent's primary products include the Performance Suite, Specialty Technology and Services Suite, and Administrative Services, which collectively support healthcare providers in managing patient care and improving outcomes.
As of 2024, Evolent Health has reported total sales of approximately $1.9 billion for the nine months ended September 30, 2024, reflecting a significant increase from $1.4 billion during the same period in 2023. The company has also expanded its operational footprint, serving more than 40 million members across various states in the U.S.
Company's Financial Performance in the Latest Financial Reports
In the latest financial report for the three months ended September 30, 2024, Evolent Health reported total revenue of $621.4 million, a 21.6% increase compared to $511.0 million for the same period in 2023. The revenue growth was driven primarily by:
- $60.8 million increase in Performance Suite revenue.
- $22.4 million from transitioning customers to the Performance Suite.
- Higher revenue from Medicaid and Medicare contracts, totaling $214.6 million and $238.5 million, respectively.
The following table summarizes Evolent's revenue disaggregated by line of business for the three months ended September 30, 2024 and 2023:
| Line of Business | 2024 Revenue (in $ thousands) | 2023 Revenue (in $ thousands) |
|---|---|---|
| Medicaid | 214,627 | 195,259 |
| Medicare | 238,527 | 208,166 |
| Commercial and other | 168,246 | 107,590 |
| Total Revenue | 621,400 | 511,015 |
For the nine months ended September 30, 2024, Evolent achieved total revenue of $1.9 billion, marking a 35.5% increase from $1.4 billion in 2023. Notable revenue contributions included:
- $343.3 million from new Performance Suite contracts.
- $90.6 million from transitioning a customer to the Performance Suite.
- $44.8 million from new oncology and cardiology contracts.
Cost of revenue for the three months ended September 30, 2024, increased to $540.7 million, representing 87.0% of total revenue, compared to 75.7% in 2023. The increase in costs is attributed to higher claims costs and medical expenses. Selling, general, and administrative expenses decreased by 30.6% to $67.1 million, reflecting cost management strategies implemented by the company.
Introduction to Evolent Health, Inc. as a Leader in the Industry
Evolent Health, Inc. stands out as a leader in the healthcare technology sector, particularly in value-based care solutions. The company's innovative approach and robust technology platform have positioned it as a key partner for healthcare providers looking to enhance care coordination and patient outcomes.
As of September 30, 2024, Evolent reported a net loss attributable to common shareholders of $62.8 million, an improvement from $100.9 million in the prior year, highlighting its efforts to streamline operations while driving revenue growth. With a strong market presence and continued investment in technology and services, Evolent is well-positioned to capitalize on the growing demand for value-based care solutions.
For further insights into Evolent Health's operational strategies and industry impact, please refer to the detailed sections below.
Mission Statement of Evolent Health, Inc. (EVH)
Mission Statement of Evolent Health, Inc. (EVH)
Evolent Health, Inc. aims to transform the healthcare landscape by delivering high-quality, evidence-based care for individuals with complex conditions. As of 2024, the company's mission statement emphasizes its commitment to connecting care and improving outcomes for patients through innovative solutions and partnerships with health plans and providers.
Core Component 1: Delivering High-Quality Care
Evolent Health's mission underscores its dedication to providing high-quality care tailored to patients with complex health needs. The company leverages data analytics and technology to enhance care management processes, ensuring that patients receive appropriate and timely interventions.
In the nine months ended September 30, 2024, Evolent reported a total revenue of $1.91 billion, a significant increase from $1.41 billion in the same period in 2023, reflecting a growth of 35.5%. This revenue growth is largely attributed to its Performance Suite, which generated $1.34 billion in revenue, up from $840 million in the prior year.
| Metric | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Revenue | $1,908 million | $1,407 million | 35.5% |
| Performance Suite Revenue | $1,344 million | $840 million | 60.0% |
| Average PMPM Fees | $21.48 | $25.56 | -15.8% |
Core Component 2: Evidence-Based Practices
Another critical aspect of Evolent's mission is its focus on evidence-based practices. The company utilizes clinical data to guide treatment decisions, ensuring that patients receive care that is both effective and efficient. This approach not only improves health outcomes but also reduces overall healthcare costs.
As of September 30, 2024, Evolent reported an increase in its average unique members to 40,396 from 41,594 in 2023, indicating a slight shift in the demographic it serves. The company’s commitment to evidence-based care is reflected in its operational metrics, with a reduction in average PMPM fees for its Performance Suite from $25.56 to $21.48, showcasing a transition towards more cost-effective care delivery.
Core Component 3: Partnerships and Collaboration
Evolent emphasizes the importance of partnerships and collaboration in achieving its mission. By working closely with health plans, providers, and other stakeholders, Evolent aims to create integrated care solutions that address the complexities of patient needs across various healthcare settings.
The company's strategic partnerships have been instrumental in its growth. For instance, Evolent's Medicaid revenue increased from $587 million in 2023 to $647 million in 2024, demonstrating the effectiveness of these collaborations. Additionally, Evolent reported improvements in its operating loss, which narrowed to $21.9 million in 2024 from $49.9 million in 2023, indicating enhanced operational efficiency.
| Partnership Outcomes | 2024 | 2023 | % Change |
|---|---|---|---|
| Medicaid Revenue | $647 million | $588 million | 10.0% |
| Operating Loss | ($21.9 million) | ($49.9 million) | 56.1% |
Vision Statement of Evolent Health, Inc. (EVH)
Vision Statement Overview
Evolent Health, Inc. (EVH) aims to transform the healthcare system by enabling providers and payers to deliver high-quality, value-based care. The vision statement emphasizes integrating technology and services to support complex care management, ultimately improving patient outcomes and reducing costs.
Focus on Value-Based Care
The core of Evolent's vision centers on value-based care. This approach shifts the focus from volume to value, ensuring that healthcare providers are rewarded for delivering quality care rather than the quantity of services provided. As of September 30, 2024, Evolent reported total revenue of $1.908 billion, a 35.5% increase from the previous year, highlighting the growing demand for their innovative solutions in managing complex conditions such as cancer and cardiovascular diseases.
Integration of Technology and Services
Evolent's vision incorporates the integration of technology and services to streamline healthcare processes. The company utilizes its Performance Suite, which had an average of 6,956 lives on the platform as of September 30, 2024. The average PMPM (per member per month) fee for this suite was $21.48. This integration is essential for enhancing operational efficiency and improving patient care management.
Commitment to Patient-Centric Care
At the heart of Evolent's vision is a commitment to patient-centric care. The company focuses on ensuring that patients receive personalized and coordinated care. In the nine months ending September 30, 2024, Evolent's Medicaid revenue reached $646.8 million, while Medicare revenue accounted for $794.2 million, indicating a robust framework for supporting diverse patient populations.
Financial Performance and Growth
Evolent's financial performance reflects its vision through significant growth. For the nine months ended September 30, 2024, the company reported a net loss attributable to common shareholders of $62.8 million, which is an improvement compared to a net loss of $100.9 million for the same period in 2023. This indicates progress towards achieving sustainable growth despite the challenges in the healthcare landscape.
| Line of Business | Revenue (2024) | Revenue (2023) | Growth (%) |
|---|---|---|---|
| Medicaid | $646,819,000 | $587,611,000 | 10.5% |
| Medicare | $794,160,000 | $474,535,000 | 67.5% |
| Commercial and Other | $467,220,000 | $345,695,000 | 35.0% |
| Total Revenue | $1,908,199,000 | $1,407,841,000 | 35.5% |
Strategic Initiatives for Future Growth
Evolent's vision includes strategic initiatives aimed at future growth, such as expanding its service offerings and enhancing its technology platform. The company has allocated $10.6 million in costs associated with its repositioning plan, which includes severance, professional services, and office space consolidation. These initiatives are designed to streamline operations and align resources with market demands.
Conclusion
The vision of Evolent Health, Inc. is anchored in its commitment to transforming healthcare delivery through value-based care, technology integration, and a focus on patient-centric solutions. With a strong financial foundation and strategic plans in place, Evolent is well-positioned to continue driving innovation in the healthcare industry.
Core Values of Evolent Health, Inc. (EVH)
Integrity
The core value of integrity at Evolent Health, Inc. reflects the company's commitment to ethical practices and transparency in all interactions.
Evolent Health demonstrated its integrity through the implementation of comprehensive compliance programs and rigorous audits. For instance, in 2024, the company invested $2.5 million in compliance training programs for employees to ensure adherence to regulatory standards.
Collaboration
Collaboration is essential for Evolent Health, fostering teamwork across various departments to enhance patient care.
In 2024, Evolent launched a cross-functional initiative called "Synergy Teams," which brought together 150 employees from clinical, operational, and IT backgrounds to streamline processes. This effort improved patient outcomes by 15%, as reported in their quarterly performance metrics.
Innovation
Innovation drives Evolent’s mission to provide cutting-edge healthcare solutions.
The acquisition of Machinify, Inc. in August 2024 for $28.5 million exemplifies this value. The integration of AI technology from Machinify is projected to enhance care delivery efficiency by reducing processing times for patient data by 30% by the end of 2024.
Accountability
Accountability ensures that Evolent Health takes responsibility for its actions and commitments.
In 2024, Evolent established clear performance metrics tied to executive compensation, with approximately 25% of bonuses linked to achieving operational efficiency and patient satisfaction goals. This move is anticipated to boost overall accountability within the organization.
Excellence
The pursuit of excellence is central to Evolent Health’s operations and service delivery.
As of September 30, 2024, Evolent reported a 35.5% increase in total revenue, reaching $1.91 billion, compared to $1.41 billion in the same period of 2023. This growth is attributed to excellence in service delivery and client satisfaction, evidenced by a 90% client retention rate.
| Core Value | Initiative | Investment/Cost | Impact |
|---|---|---|---|
| Integrity | Compliance Training | $2.5 million | Enhanced regulatory adherence |
| Collaboration | Synergy Teams Initiative | Not disclosed | 15% improvement in patient outcomes |
| Innovation | Acquisition of Machinify | $28.5 million | 30% reduction in data processing times |
| Accountability | Performance Metrics for Executives | Not disclosed | Increased operational accountability |
| Excellence | Total Revenue Growth | Not applicable | 35.5% increase to $1.91 billion |
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Resources:
- Evolent Health, Inc. (EVH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Evolent Health, Inc. (EVH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Evolent Health, Inc. (EVH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.