Bright Health Group Inc. (NeueHealth, Inc.) reported significant financial developments in its latest 10-Q filing for the third quarter of 2024. The company experienced a decline in total revenue, which amounted to $232.9 million for Q3 2024, down from $269.4 million in Q3 2023, representing a decrease of 13.5%. For the nine months ended September 30, 2024, total revenue was $704.0 million, a decrease of 18.9% compared to $867.9 million for the same period in 2023. This decline was primarily attributed to a significant drop in ACO REACH revenue, which fell by $50.6 million in Q3 and $205.8 million year-to-date, largely due to a reduction of approximately 20,000 beneficiaries aligned to REACH ACOs.

In contrast, capitated revenue increased to $71.3 million in Q3 2024 from $60.4 million in Q3 2023, and for the nine months, it rose to $196.8 million from $159.7 million. The company reported a net loss of $40.4 million for Q3 2024, a substantial improvement from a net loss of $547.1 million in Q3 2023. For the nine months, the net loss was $102.2 million, down from $805.2 million in the prior year. The basic and diluted loss per share also improved, decreasing from $(81.03) in Q3 2023 to $(8.51) in Q3 2024.

Operating expenses saw a significant reduction, totaling $250.3 million in Q3 2024 compared to $732.2 million in Q3 2023. This reduction was driven by lower professional fees and restructuring efforts. The company achieved adjusted EBITDA profitability for the third consecutive quarter, reporting $9.4 million for Q3 2024, up from $3.4 million in Q3 2023.

Strategically, NeueHealth completed the sale of its California Medicare Advantage business to Molina Healthcare for $500 million, which was finalized on January 1, 2024. This transaction was part of a broader restructuring strategy that included exiting the commercial marketplace and focusing on its core segments, NeueCare and NeueSolutions. The company also announced the acquisition of Centrum Health for $101.8 million, which is expected to enhance care delivery and streamline operations.

As of September 30, 2024, NeueHealth had total assets of $696.8 million and total liabilities of $1.0 billion, resulting in a shareholders' equity deficit of $1.4 billion. The company reported cash and cash equivalents of $109.8 million, an increase from $87.3 million at the end of 2023. However, management expressed concerns about the company's ability to meet its cash requirements over the next twelve months, raising substantial doubt about its going concern status.