What happened
Shares of P3 Health Partners (PIII -4.64%) were up 18.4% for the week as of Thursday afternoon, after rising as much as 21%, according to data provided by S&P Global Market Intelligence. The stock closed at $3.47 last week and rose to as high as $4.29 on Tuesday. The stock is up more than 124% so far this year and was given a boost by a rash of insider buying.
So what
P3 Health Partners is a physician-led health management company. It focuses on giving Medicare Advantage (MA) and commercial patients access to primary care and chronic-care management and has a network of 2,800 affiliated primary care providers in the U.S.
The healthcare company's shares jumped this week after private equity firm Chicago Pacific Founders, which was already a part owner in P3 Health Partners after providing P3's initial and growth capital, steadily made big buys of P3 shares on successive days. Chicago Pacific now owns 48,781,473 shares of the company.
Now what
P3 makes an attractive target, even with its shares on the rise. The company reported first-quarter numbers on May 10. It listed capitated revenue of $298.7 million, up 11%, year over year and 18% sequentially. Capitated revenue is paid to a healthcare provider or organization on a per-member, per-month (PMPM) basis.
The company also reported a net loss of $52.4 million, up 14% from the same period a year ago and a big improvement from the $532.3 million it lost in the fourth quarter.
P3 also released yearly guidance, saying it expected revenue to be between $1.2 billion and $1.25 billion, up from $1 billion in 2022. It also said it expected to have between 115,000 to 120,000 MA members by the end of the year, compared to 100,400 MA members at the end of 2022.
