P3 Health Partners Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in operating revenue, which reached $362.1 million for the three months ended September 30, 2024, up 26% from $288.4 million in the same period of 2023. For the nine months ended September 30, 2024, total operating revenue was $1.13 billion, a 23% increase from $919.5 million in the prior year. This growth was primarily driven by a 25% rise in capitated revenue, which amounted to $357.7 million for Q3 2024, compared to $285.2 million in Q3 2023.

Despite the revenue growth, P3 Health Partners reported increased operating losses. The operating loss for Q3 2024 was $(107.0) million, compared to $(33.8) million in Q3 2023. The net loss for the quarter was $(102.9) million, significantly higher than the $(37.3) million loss reported in the same quarter of the previous year. For the nine-month period, the net loss was $(181.2) million, compared to $(117.3) million in 2023. The increase in losses was attributed to a substantial rise in medical expenses, which surged to $401.9 million in Q3 2024, up 44% from $279.2 million in Q3 2023, driven by a higher number of at-risk members and increased demand for medical care.

The company’s cash position improved, with cash and restricted cash totaling $68.1 million as of September 30, 2024, compared to $57.4 million a year earlier. Total current assets also rose to $215.1 million from $166.0 million. However, total liabilities increased to $569.4 million from $427.3 million, reflecting a rise in current liabilities from $299.4 million to $405.3 million.

Strategically, P3 Health Partners is exploring additional capital through debt financing and equity issuances, as it anticipates continued operating losses and negative cash flows. The company is also in the process of negotiating a sale of its Florida operations for $15 million, with a good faith deposit already recorded. Additionally, the company has identified material weaknesses in its internal controls over financial reporting and is implementing a comprehensive remediation plan.

Overall, while P3 Health Partners has shown revenue growth, it faces challenges with rising expenses and ongoing losses, prompting strategic moves to stabilize its financial position.

About P3 Health Partners Inc.

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