Bright Health Group Reports $99.7M Net Loss for 2024, Improved from $1.26B in 2023

Bright Health Group, Inc. (now NeueHealth, Inc.) reported a net loss of $99.7 million for the year ended December 31, 2024, a significant improvement compared to the $1.26 billion net loss in 2023. The company's total revenue decreased by 19.3% to $936.6 million, primarily due to a $271.2 million decrease in ACO REACH revenue within the NeueSolutions segment, resulting from the bankruptcy of a care partner. This decrease was partially offset by an 18.2% increase in capitated revenue within the NeueCare segment, reaching $259.9 million. Adjusted EBITDA, a non-GAAP measure, was $22.5 million, a substantial turnaround from the $8.5 million loss in 2023.

Significant changes from the previous fiscal year include the sale of the California Medicare Advantage business on January 1, 2024, resulting in net proceeds of $31.6 million (with additional contingent consideration expected in 2025). The company also exited the ACA Marketplace as an insurer in 2022 and ceased offering Medicare Advantage products outside of California. These strategic shifts led to a corporate restructuring, including workforce reductions, resulting in restructuring charges of $956,000 in 2024 compared to $6.99 million in 2023. The company also entered into a merger agreement with NH Holdings 2025, Inc., a subsidiary of New Enterprise Associates, Inc., on December 23, 2024.

As of December 31, 2024, NeueCare operated 66 risk-bearing clinics serving approximately 318,000 value-based care consumers across the ACA Marketplace, Medicare, and Medicaid. NeueSolutions served approximately 42,000 value-based care consumers, primarily through the ACO REACH program. The company employed 986 individuals at the end of 2024. The company's cash and cash equivalents decreased to $185.4 million at the end of 2024 from $375.3 million at the end of 2023. Long-term borrowings decreased to $96.4 million from $66.4 million.

The company's financial performance was significantly impacted by the exit from the commercial health insurance market and the sale of the California Medicare Advantage business. The company's outlook is contingent upon the successful completion of the merger with New Enterprise Associates, Inc., and the continued implementation of its revised business model focused on value-based care delivery and provider enablement. The company acknowledges substantial doubt about its ability to continue as a going concern without additional capital or the successful completion of the merger. The company's ability to access additional capital is subject to various conditions, some outside of management's control.