|
agilon health, inc. (AGL): Marketing Mix Analysis [11-2024 Updated]
US | Healthcare | Medical - Care Facilities | NYSE
|
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
agilon health, inc. (AGL) Bundle
As the healthcare landscape evolves, agilon health, inc. (AGL) stands out with its innovative approach to delivering value-based care. With a strong focus on Medicare Advantage and community-based partnerships, agilon is reshaping how care is provided across the United States. In 2024, their strategic marketing mix highlights key elements such as their comprehensive service offerings, expanding geographic presence, and a commitment to improving patient outcomes through effective promotion and competitive pricing. Discover how these four P's are driving agilon's success in the healthcare market.
agilon health, inc. (AGL) - Marketing Mix: Product
Focus on Medicare Advantage and CMS ACO Models
As of September 30, 2024, agilon health, inc. reported approximately 525,200 Medicare Advantage members, reflecting a significant increase of 37% from the previous year. The company also attributed approximately 132,200 beneficiaries under the CMS ACO Models, which represents a 51% increase from September 30, 2023 .
Offers Capitation Revenue Under Contracts with Various Payors
agilon health's business model primarily revolves around capitation revenue derived from contracts with various payors. The company recognizes capitation revenue based on a per member per month (PMPM) fee structure, which is typically a defined percentage of the premiums that payors receive from the Centers for Medicare & Medicaid Services (CMS). For the nine months ending September 30, 2024, total medical services revenue reached $4.5 billion, a 39% increase compared to the same period in 2023 .
Provides a Defined Range of Healthcare Services
agilon health provides a comprehensive range of healthcare services tailored to the needs of its Medicare Advantage members. The company’s services are designed to meet the total healthcare needs of its members through contracted physician partners. The medical services expense for the three months ended September 30, 2024, was approximately $1.5 billion, reflecting a 47% increase from the previous year .
Supports Primary Care Physicians with a Dedicated Platform
The agilon platform empowers primary care physicians (PCPs) by providing the necessary infrastructure and support to manage patient care effectively. For the nine months ended September 30, 2024, the platform support costs were approximately $129.8 million, which represents 3% of total revenue. This platform enables PCPs to operate within a Total Care Model, focusing on quality care and improved patient outcomes .
Aims to Evolve to a Total Care Model for Better Health Outcomes
agilon health is committed to evolving towards a Total Care Model, which integrates various healthcare services to enhance patient outcomes. As part of this initiative, the company aims to reduce costs while improving care quality. The medical margin for the nine months ending September 30, 2024, was approximately $204.6 million, down 49% from the previous year, indicating the challenges faced in achieving sustainable profitability .
| Metric | As of September 30, 2024 | As of September 30, 2023 | Year-over-Year Change |
|---|---|---|---|
| Medicare Advantage Members | 525,200 | 384,200 | +37% |
| CMS ACO Models Beneficiaries | 132,200 | 87,700 | +51% |
| Total Medical Services Revenue | $4.5 billion | $3.25 billion | +39% |
| Medical Services Expense | $4.32 billion | $2.85 billion | +52% |
| Platform Support Costs | $129.8 million | $126.9 million | +2% |
| Medical Margin | $204.6 million | $401 million | -49% |
agilon health, inc. (AGL) - Marketing Mix: Place
Operates primarily in the United States
Agilon Health, Inc. primarily operates within the United States, focusing on providing healthcare services through a network of community-based physician groups. As of 2024, the company is strategically positioned to serve multiple geographic areas across the country, enhancing its operational footprint.
Expanding into new geographies, adding seven in 2024
In 2024, Agilon Health is set to expand its operations by entering seven new geographic markets. This expansion is anticipated to significantly increase its Medicare Advantage membership base and enhance its revenue streams. The addition of these geographies is part of Agilon's strategy to grow its market presence and capitalize on the increasing demand for healthcare services among the aging population.
Partners with community-based physician groups
Agilon Health partners with community-based physician groups to deliver care. This collaboration allows Agilon to leverage the existing patient-physician relationships that these groups have established over time. As of September 30, 2024, Agilon's Medicare Advantage members totaled approximately 525,200, a 37% increase from the previous year, largely due to these partnerships.
Leverages a network of local physicians for service delivery
The company utilizes a network of local physicians to ensure that healthcare services are delivered efficiently and effectively. This model not only enhances patient satisfaction but also optimizes the overall healthcare delivery process. The focus on local physicians allows Agilon to maintain a personalized approach in managing the healthcare needs of its members.
Utilizes a risk-bearing entity model in local markets
Agilon operates using a risk-bearing entity (RBE) model, which allows it to enter into arrangements with payors for monthly payments to manage the total healthcare needs of attributed patients. This model provides the necessary infrastructure for existing physician groups to create Medicare-centric, globally capitated lines of business. The financial metrics indicate that Agilon's medical services revenue for the nine months ended September 30, 2024, reached $4.5 billion, reflecting a 39% increase compared to the previous year.
| Metric | 2024 | 2023 | Growth (%) |
|---|---|---|---|
| Medicare Advantage Members | 525,200 | 384,200 | 37% |
| Medical Services Revenue | $4.5 billion | $3.3 billion | 39% |
| Net Loss | ($154 million) | ($32 million) | 377% |
agilon health, inc. (AGL) - Marketing Mix: Promotion
Emphasizes partnerships with existing physician groups
As of September 30, 2024, agilon health has developed partnerships with over 15 physician groups across 13 geographies, enabling a collaborative model focused on improving healthcare outcomes for seniors. These partnerships are integral to agilon's strategy of enhancing service delivery through local physician engagement.
Highlights improvements in patient care quality and cost efficiency
In the third quarter of 2024, agilon reported a total revenue of $1.5 billion, representing a 28% increase from the previous year, largely attributed to improved patient care quality and cost efficiency measures. The company aims to enhance medical services through its platform, which focuses on capitation arrangements that incentivize quality care over volume.
Engages in community outreach to build brand awareness
Agilon health actively engages in community outreach initiatives aimed at building brand awareness and trust within local populations. This includes educational seminars and partnerships with local organizations to promote the benefits of its healthcare services, thereby increasing its visibility and fostering community relationships.
Promotes the benefits of the agilon platform to physicians
The agilon platform provides primary care physicians (PCPs) with tools and resources to manage patient care more effectively. As of September 30, 2024, agilon's Medicare Advantage membership stood at approximately 525,200, a 37% increase from the previous year, demonstrating the platform's appeal to physician partners seeking improved patient management solutions.
Focuses on digital channels for marketing and communication
Agilon health has adopted a strong digital marketing strategy, utilizing social media and online platforms to communicate with both physicians and patients. This approach aims to enhance engagement and facilitate information dissemination regarding healthcare services and the agilon platform. The company has invested in digital marketing campaigns that align with its outreach and branding efforts.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $1.5 Billion | $1.17 Billion | 28% |
| Medicare Advantage Members | 525,200 | 384,200 | 37% |
| Adjusted EBITDA Loss | ($96 Million) | $6 Million | (1,837%) |
| Net Loss | ($118 Million) | ($31 Million) | 274% |
agilon health, inc. (AGL) - Marketing Mix: Price
Revenue driven by per member per month (PMPM) fees
Agilon Health primarily generates revenue through capitation arrangements, which include per member per month (PMPM) fees. For the nine months ended September 30, 2024, the total medical services revenue was approximately $4.53 billion, reflecting a significant increase driven by a higher average membership base.
Adjustments in pricing based on capitation agreements
The pricing strategy is influenced by capitation agreements, which entail adjustments based on the defined percentage of premiums received from the Centers for Medicare & Medicaid Services (CMS). In the third quarter of 2024, the PMPM capitation rates decreased by 7%, impacting overall revenue despite an increase in membership.
Total revenue increased by 39% year-to-date 2024
For the year-to-date period ending September 30, 2024, Agilon Health reported a total revenue increase of 39% compared to the prior year, primarily attributed to a growth in average membership, which rose significantly due to the addition of new geographies.
Price sensitivity evident due to elevated medical costs
Price sensitivity has become apparent as medical costs have escalated. The overall medical services expense increased by 52% year-to-date 2024, totaling approximately $4.32 billion, further highlighting the challenges posed by rising healthcare expenses.
Revenue impacted by changes in risk adjustment factors and drug benefit costs
Agilon's revenue is also affected by fluctuations in risk adjustment factors and the costs associated with prescription drug benefits under the Medicare Part D program. The company faced challenges with lower risk adjustment revenue and increased drug benefit costs, which contributed to a net loss of $154 million for the nine months ended September 30, 2024.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Medical Services Revenue | $1,447,697 | $1,133,457 | 28% |
| Total Revenue | $1,450,932 | $1,136,863 | 28% |
| Medical Services Expense | $1,505,950 | $1,022,871 | 47% |
| Net Income (Loss) | $(117,615) | $(31,483) | 274% |
In summary, agilon health, inc. (AGL) is strategically positioned within the Medicare Advantage landscape, leveraging its robust healthcare service offerings and expanding its geographic footprint to enhance accessibility. The company’s focus on partnerships with local physicians and community engagement underpins its promotional efforts, while its innovative pricing model aims to address market challenges. As AGL continues to evolve towards a Total Care Model, it remains well-equipped to meet the growing demands of the healthcare sector and improve patient outcomes.
Updated on 16 Nov 2024
Resources:
- agilon health, inc. (AGL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of agilon health, inc. (AGL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View agilon health, inc. (AGL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.