Good morning, everyone. Welcome to the 41st annual J.P. Morgan Healthcare Conference. My name is Edwin Zhang. I work in the healthcare banking team within J.P. Morgan, and today I would like to introduce you, CareMax. Our panelists and presenters today are Carlos DeSolo, who is the CEO of the company, Alberto DeSolo, who is the COO of the company, and Kevin Wirges, who is the CFO of the company. Please join me in welcoming them and giving them a round of applause, please. Thank you. All right. Good morning, everybody. I'm Carlos DeSolo, the CEO and co-founder of CareMax. Let me put up the disclaimer slide here for a minute, let everybody take a look at it. It was in 2018 that I truly realized the impact that CareMax was having on the communities that we were serving. My father had just been diagnosed with a rare form of brain cancer called glioblastoma, and he was only given 3 months to live. He ended up living 3 quality years, and a big part of that was because of the support structure that we were able to create for him. My mother was able to quit her job and care for him on a daily basis. My brothers and sisters and I were able to contribute significantly, and we did everything for him, from making all of his doctor's appointment, coordinating his care with the oncologist, neuro-oncologist, the hematologist, making sure that it was a coordinated care approach. When he was discharged from the hospital after multiple surgeries, we made sure that we organized all of his medications into blister packets so that the only thing that my dad had to worry about was really focusing on fighting cancer and his health. What became clear to me during this process was this is exactly what we've been doing at CareMax for the better part of a decade. We have become that social support structure for our members. What makes CareMax so special isn't just the outcomes or the better outcomes that we achieve for those members. It's really... It's how we do that. It's we change that relationship between the patient and the provider through our fully integrated approach and our whole person healthcare models. Doctors don't just call us or patients don't just call the doctors because they feel sick and they need a quick treatment plan. They call us because they want a true and fully integrated care plan. When members come to CareMax, they come for us because they wanna see their PCPs and they wanna see their specialists, they wanna see their dentist. They come to our wellness facilities, to participate in games, learn about healthy cooking. They participate in exercise classes. We focus heavily on social determinants of health. What they're really getting is a sense of community and a sense of family. It's that change in relationship that has really allowed us to be successful. A big part of how we do that is by empowering our care teams, by empowering our doctors, so that they have all the tools that they need, so they have more time to spend with those patients and build what's truly important in patient care, which is that bond and that trust, to get to those better outcomes. We've used this, you know, philosophy to build the strong platform that we have today. If you look on the right side of the page here, you'll see we have 60 medical centers today. We've got 240,000 value-based care members. 200,000 of those are senior care members. We have 2,000 affiliated and employed providers in 10 different states. A stat that I'm really proud about is being able to maintain 5 stars throughout our 60 medical centers, despite the fact that we treat the most underserved communities with the highest chronic comorbidities in the country. Oops. Back. So you see here, one of the things that we do at CareMax that's incredibly unique is that we're able to execute on both the wholly owned medical center strategy and the MSO strategy. In the MSO, this is where we get the best results, and we do that because we have that one-stop-shop model that's fully integrated. We provide transportation to our members, making sure that they have access to care. We have fitness classes and wellness classes. As I mentioned earlier, a heavy focus on social determinants of health, making sure that our members have food security and housing stability. We have all of our full in-house specialists. And that's what allows us to get to those results that you see here on the bottom, where our members, you know, we reduced the ER visits by 70% versus the national average. We're able to reduce the spend of a member over a three-year period by 39% in just absolute dollars. Our mature clinics, we get to a medical expense ratio of under 70%. We've applied these lessons that we've learned to our MSO capabilities. We give them the, you know, we provide them the same exact technology platform. We give them the same CareMax University support so that we train them in what true value-based care is. We optimize that specialist network. Well, that one's really important because we don't want these providers just referring 1 provider, referring to 20 different cardiologists. We want them choosing 1 or 2 cardiologists that really understand value-based care and are really want to improve those patient outcomes. That's a critical part of what we do. Finally, the ability to marry these 2 strategies is what really allows us to grow in a capital efficient way. We'll talk a little bit more about that later, but we grow that MSO, we build density, we build that infrastructure, and then we identify de novos in those areas that we have that we've built that scale. Here you can see, I mean, we've built a very large national platform with over 2,000 providers. We've got 60 medical centers in Florida, in New York City, in Tennessee, and in Texas, in those 10 different states. Here you can clearly see how we take that strategy of growing with that MSO. We build that density. We identify those providers in those areas that are critical for us, where we've invested in the infrastructure, and then that's where we focus on building those de novo centers and filling them up with physicians that already have a patient panel. I wanna take a moment here just to go over what our current membership looks like. We have 240,000 value-based care members, and that's broken into these four buckets. We have 90,000 Medicare Advantage, 110,000 MSSP and ACO REACH members. We've got 32,000 Medicaid and 9,000 commercial patients. What's really interesting here is that even though we built our platform to primarily care for our senior population, what we have found is that it's been extremely effective in managing all lines of business for value-based care. While we're still gonna focus primarily on seniors, it just really opens the door for us in the future on what this platform can really do and what it could achieve. A little update on Steward. This was an incredible transformative transaction for us with a huge embedded opportunity that we're gonna talk about. Even though we just closed this transaction in November of 2022, we've really accomplished a lot in a very, very short period of time. We've already completed the onboarding meetings for all the physicians in all the different markets in the 10 different states that we're working on and identified those physician champions that are gonna help us lead the way. We've conveyed 65 full-time employees from the Steward acquisition over to CareMax, integrated them into our platform, and we've also executed every single one of our national and local value-based care agreements that are gonna allow us to support this membership that we have ingested. Over the next year or 2 years, we're really gonna focus on that low-hanging fruit of transitioning that fee-for-service membership into the value-based care models, and we'll look in detail later on what that membership looks like and what the go-get is. We're gonna integrate our technology suite and support services, and then do all of that data integration and network optimization. What you're gonna see in 2025 and 2026 is the maturity of this, and Albert is gonna talk to you a little bit about our glide path to risk. All of the contracts that we've executed today have that glide path to risk in an 18-24 month period. We'll be able to recognize the full EBITDA potential and the full revenue potential of all of this membership that we're ingesting, and if you've seen some of our previous presentations, I mean, we have a $400 million-$550 million adjusted EBITDA potential in this platform over the next several years in the long run. With that, I'd like to hand it over to Albert de Solo, our co-founder and COO, to talk a little bit about our operating platform. Thank you, Carlos. Good morning, everyone. Again, I'd like to thank you guys for being here. I know it's Thursday, last day of the conference. Everyone's tired, so really appreciate the time. Like Carlos mentioned, I'm Alberto de Solo, co-founder and Chief Operating Officer of CareMax. While I've done a little bit of everything at CareMax, especially being a founder, where my passion's been is really on the operations side. And I've had two areas primarily where I focus most of my attention on. Number one is making sure that we stay true to our mission and our mission of putting our patients' needs first. Second to that was we needed to build a model that was scalable. Scalable without sacrificing any of the regional focus that's needed to practice good healthcare. As many of you know, covering healthcare continues to be very local, and we needed to preserve that because each community has unique needs to it that we need to be able to service. As we thought about the model and where we needed to focus on, that flexibility, that adaptability was incredibly important to us. I'd like to leave some more time for questions and answers. Despite the fact that we, at CareMax, like Carlos mentioned, are servicing the underserved patients, a very diverse set of communities, we've been able to deliver better outcomes in the form of 70% reduction in ER visits, a 50% reduction in admits, and we've been able to do that in large part because of a whole person health platform. Let me tell you a little bit about that whole person health platform. As you can see, our clinical team is anchored by a primary care provider and he's the quarterback. They're overseeing coordinating care. They're complemented by in-house specialists. We believe in adding in-house specialists. It's convenient for the patient. It allows for our provider teams to work as a team, to fully understand the different medications, that we're not duplicating therapies, that we're not duplicating tests. What I'm very proud about is on national statistic, where it takes about 27 days to see a cardiologist. At CareMax, we've shortened that window down to 7 days. If a patient actually needs to see one the next day, we make that available as well. Carlos mentioned the social determinants, and studies are demonstrating that out of modifiable health outcomes, meaning those that are not predetermined by genetics, 80% of them are affected outside of the medical center. We can only impact about 20% of them within the clinic model. On the right-hand side of the wheel, that's how we affect the social determinants of health. You can see a big co-component of that is the wellness center, bringing our members in, doing fitness classes, nutrition talks, educating our patients, making sure that we're building on that sense of community. We've actually turned upside down the paradigm or the thinking that going to the doctor is actually something negative, something that seniors don't like to do. Our seniors actually enjoy coming to CareMax. We have seniors that come 2 and 3 times a week, and it's that high-touch model that actually allows us to assess when a patient is not looking right, when medications need to be tweaked, when we need to get a little bit more aggressive in our treatment plans. Transportation, another critical element of what we provide. We provide over 3,000 trips per day to our patients, and that really is helping them get to and from their medical appointments, both primary care and specialty appointments. It's why at CareMax, we've achieved a 98% of patients seen stat, which is pretty impressive. On the social services side, assisting patients with any government applications they qualify for or additional benefits such as food stamps or cellular phones, we help them through that. Healthy meals at the wellness, fitness classes as well. One that's not as known and not too many folks do, but it speaks to how deep our model goes to with patients, is dental and optical. We provide these services under our roof at the convenient for the patient. without having to worry about a dentist upcharging or an optometrist trying to sell expensive glasses, we're able, by having it in-house, control that experience for patients. Our NPS scores reflect that. We have NPS scores of 99%. The interesting thing is when a patient is unable to come to a medical center, which happens post-discharge or if a patient is homebound, we'll actually send an employed provider to that patient's home. You know, you could see it's really taking this holistic approach to the patient that allows us to achieve these better outcomes. All of this is anchored by our technology. Let me go into the technology a little bit more. You know, at its core is the data that we're ingesting. As you can see, we're not just relying on EMR data. We're ingesting health plan data on a daily basis. We're ingesting files from CMS. We're ingesting files from pharmacy PBMs, quality gaps, chronic condition gaps. What's unique about Care Optimize in our platform is that it's not a third-party application that physicians now are being asked to go into. I mean, you've all heard the fact that physicians today are experiencing burnout. What we've done to alleviate that is we've embedded that workflow into the EMR that the physician is using. While the patient is still in the room, they're actually having access to that data. They get to see which ones are their sickest patients. They're seeing their sickest patients more frequently. They get to make changes to care management protocols. They're also receiving ER notifications. What that allows for is in the event that a patient ends up in the hospital, and they belong in the hospital, we can expedite their admission by providing a medication list to the admitting physician as well as the last labs and blood work the patient has had done, or possibly even reroute the patient if it's an avoidable hospitalization and we can see the patient within our medical center. It's really that approach to having all that information at the provider's fingertips to make these clinical decisions that sets us apart. Carlos mentioned the Steward. We wanted to highlight our MSO capabilities because the Steward is gonna lean heavily on the MSO. It's funny because just this week, we were asked, "If the MSO is successful, why do you guys invest in a more expensive model in the wholly owned centers?" Truly, it's because we're able to leverage all that knowledge that we're gaining by having our wholly owned centers perform, and we're able to provide that knowledge to our people, our process, our technology, to our affiliate practices. You could see we support their billing and coding. We do help them with their pre and post-audit so that physicians, again, with the patients still in the room, can assess those chronic conditions, could determine if there's a treatment plan along with the chronic conditions he's made notes for. We're empowering them with who their riskier patients are, giving them the same scorecards that we use to manage our CareMax centers. We provide it to the affiliates, allowing our provider engagement reps on the ground to review those with them. All of that goes to achieving our results. Historically, within our MSO, we've been able to achieve MLRs below 85%, margins in the 13%-15% at a platform level. We've been extremely successful and that's why the Steward opportunity is such a powerful one and transformational one for CareMax. We talked about the glide path to risk and why that's important. As many of you know, covering healthcare, actions that we do today don't show up tomorrow. They don't show up a month from now. There is a lag in the amount of time it takes for the actions that we put in place, the professionalization of providers and patients to go through our platform to begin to reflect into the financials. We've been very thoughtful about it. We've given ourselves a pathway to gradually increase risk. We'll start off with an upside-only contract, followed by a 50/50 split with a payer until we've actually reached full risk. The nice thing about that is we have the flexibility of accelerating that. If we feel that in a particular market with a particular payer, we're actually ahead of schedule, we're able to actually trigger that full risk earlier. That pathway to risk has allowed us really to protect our shareholders. We don't have to eat those losses early on while we're still working these patients through the system. Hopefully, I've answered some questions for you. Wanna leave you with three things. First one is that CareMax's model is different. You can see that we go much deeper with the patients than many of our competitors do. Second is that we have the scale through our technology to execute. Finally, that we don't sacrifice putting our patients first. With that, Carlos will go over some of the growth targets. Thanks, Albert. Yeah, I'm gonna go through our growth strategy. We have a multipronged growth strategy at CareMax, made up of three buckets, right? The first one's pretty simple. We grow our existing clinics with new Medicare Advantage members, and we do that by embedding ourselves into the communities and primarily through grassroots. We participate in different health fairs. We do awareness programs. One of the things that we do that's really critical is that we hire locally. Healthcare is very locally and preferred by consumers to consume it at a local level. We make sure that we hire those folks from those communities, and that really allows ourselves to embed ourselves in that community. We also use traditional marketing like social media, television, and radio to grow that membership in those existing medical centers. The second one is our MSO strategy. We grow this strategy. The nice thing about this strategy is it's very capital efficient. We're able to grow in a specific market. Once we make the investment, once we build that infrastructure, adding an additional provider for us is a very low incremental cost as we grow in those specific markets. It's very capital efficient for us to grow there. Then we leverage that MSO for the third bucket, right? We talked a little bit about this before. As we expand the MSO, we lead with the MSO, build density and infrastructure. We start identifying those specific providers that have built panels of members, we either do what we call acqui-hires or tuck-ins to open up our seated de novos. This really helps us reduce our expense or our J-curve to profitability, because now instead of opening up a center with 0 patients, we've opened up a medical center with 300 patients. The typical J-curve is 0-7 years, 3 years to break even and 7 years to maturity. In many cases, using this strategy, when we open up a center in year 1, we're already at that break-even point because we're able to leverage our ability and our sophistication in managing that MSO strategy. We talked a little bit about the Steward opportunity and what a huge opportunity it was. You know, we have the chance and opportunity to become one of the largest senior care providers in the entire country. We've got 1 million total senior care beneficiaries that we can go after. We talked a little bit about the 200,000 members that we're currently managing under value-based care agreements. If you look at the top two circles under the second and the third from the top, we have 482,000 fee-for-service members that are within this network of physicians, of 1,800 physicians that we acquired at Steward, and 387,000 that are already in a Medicare Advantage product but are getting compensated on a non-value-based care environment under fee-for-service. The goal for us is to begin to migrate all of this membership into value-based care agreements, and we have that go get of 1 million total members, which is very exciting for us. Healthcare today is really and truly at an inflection point, and we have seen over the past several years, this same type of inflection point in different industries, right? We saw it with gas-powered vehicles to electric vehicles, Tesla leading the way there, and now a lot of the other car manufacturers kinda heading towards that electric vehicle shift. We saw it with on-premise data, and now everything is going to cloud-based data warehousing. We saw it in the way that we consume media, right? Everybody used to consume media in print, and now mostly everybody is consuming digital media. We're seeing the same exact thing happening right now in healthcare from a fee-for-service model that was traditionally focused on volume with very little focus on outcomes, and now everything is coming to that value-based care where we're truly aligned, aligning the incentives of the patient and the providers that are serving that care. We can only do well as the patients do well. I think that's why CMS has come out and said that by 2030, they expect every single senior to be in a value-based care program. We really like where CareMax is right now in that position. Finally, I think one of the reasons that we believe that we're in the process of leading that transformation is because of some of these things. We have a strong track record of success, not just on executing on the MSO, but on the wholly-owned center capabilities using our proprietary technology that we developed in-house using our whole person healthcare model to really improve the outcomes of all of the members that we serve. We're really excited about the future of healthcare. We believe that CareMax is leading the way into this transformation and this inflection point moving forward, and really excited about 2023. With that, I'd like to open it up to Q&A. Yeah. Thank you very much. Very good presentation. Could you speak to whether or not you are delegated by the payers for any services such as utilization management or claims, and also what your average risk adjustment RAF score is? Yes. Today we have some delegated services in Florida. Historically in Florida, the plans do most of that work, but we are now working with our contracts to take on delegated utilization, delegated credentialing, so we are beginning to do a lot of those services in-house. Our current RAF score, Kevin, correct me if I'm wrong, is around a 1.4-1.5, somewhere in between that range. Great. Of the population you have, you mentioned 90,000 Medicare Advantage members at risk. How much of that is dual eligible? Kevin? On the, on the legacy, on the pre-Steward acquisition of 40,000 patients or so, about 60% of those are dual eligible. On the additional 50,000 that are coming in, the number of dual eligible is a lot less. It's probably in that 20% range. Could you talk about, you know, in this coming year, is there any particular milestones or developments that you're excited about from your side? Yeah. I think the biggest focus for us this year is going to be to ingest and execute, you know, this huge transformational transaction, right? We talked a little bit about those 1,800 providers throughout 10 different states, the huge opportunity to have that go get of 1 million total members. You know, what we're most excited about is that conversion of that membership from fee-for-service into value-based care. We're gonna be giving pretty soon here in March, we're gonna host an Investor Day presentation, and we're gonna be able to talk a little bit more detail about what that's gonna look like in the year to come. As a follow-up question, how, I guess the average, individual in the community might not be as aware of value-based care as a mechanism? How have you been sort of introducing CareMax, the platform and the benefits to the local communities? I think a lot of that is what I spoke about a little bit in the presentation, which is we do serve primarily those underserved communities, and a big part of our growth strategy is to create that awareness, and we create that awareness by embedding ourselves into those communities and making sure that we're working with local partners that help assist those members. We really focus on those communities and those organizations that are delivering assistance for those communities. Then we host a lot of events on a weekly basis around all of the different services that we offer. That's the other reason why having a seated de novo helps so much because a big part of what helps you grow is already having an existing set of patients and those members. They become your ambassadors, they become your champions. The more and more that we're able to serve a certain amount of patients, they go out into the communities, they tell their friends, they come in, and then they're able to enjoy the same suite of services and that new relationship that they can now have with the CareMax Medical Center versus their kind of the historical type of service that they were getting in the past. Yeah. What I would add to that is through many of our payer partners... We already have historical track records with them. They're very familiar with CareMax and the different offerings. They're very excited about this opportunity. We're working together to make sure that the beneficiaries, the benefit consultants that are working for them, their agencies that are also writing their business understand that CareMax is now going to be part of their offering and will have these additional services. That's been very helpful. The other component is that within the Steward system, they already have this MA membership. They're already familiar with an MA product. The only thing that changes is they now have access to additional services. It's a big plus. It starts gaining momentum. Good morning. Are there any utilization trends you can point us towards that you're anticipating for 23? Any inflection points or anything like that? I think in our industry, especially in South Florida, I think our flu season normally starts in Q1, right, in January. We're kinda delayed on the flu season side. We anticipate that every single year. That's pretty normal. The other thing that we anticipate every year is we do have stop-loss, reinsurance and, folks start hitting the Part D, reinsurance as well. Utilization patterns on, you know, Part C and Part D costs tend to trend down, in the fourth quarter, and then they pick back up again in Q1. Some of it's flu season, some of it's just the reset of the benefits. Could you sort of talk about, there's upcoming regulatory changes with Medicare, just sort of, potential headwinds and sort of how you guys might be able to navigate that from your perspective? Yeah. Are you speaking specifically to rate changes or the RADV? I mean, what's? Just wanna make sure I understand the question. Um, I guess- Go on. I mean, I guess you could just talk about regulatory trends in general. Look, I think with respect to the fee-for-service adjuster and RADV, I think that's a decision that's been postponed various times now. I think we're expecting some information to come out there in kind of the beginning of February. I think it's February 3. I think the best thing to do there is kind of wait and see. I think right now, you know, a lot of the audits are going back and have been completed. I think it's 2014. What we're talking about is really a lot of, would be a lot of retro adjustment. I think it would be complicated to make an adjustment going back. Look, I'm not, I'm not CMS, and I don't really have insight into what decision they're going to take. you know, what I can tell you from our perspective is that internally, we audit all of our risk adjustment scores on a per member basis. We're very confident in the way we have adjusted that score on a per member basis and have a very low error rate, you know, for that. If something were to happen that's unfavorable, I think that based on our circumstances, you know, we'll have an ability to have conversations around that to mitigate a lot of those issues moving forward. A part of our billing practices and best practices just to protect ourselves and our shareholders has always been not only to perform these internal audits, we also go through health plan audits on a yearly basis. In addition to that, we always hire a third party that also does a third review of our charts. We feel pretty confident that we have the right documentation to support the chronic conditions that our members have. No further questions? All right. Well, thank you all for coming, especially on the last day of J.P. Morgan. Excited to have the meeting with you. Thank you. Thank you. Thanks.