Alignment Healthcare at Bank of America Conference: Strategic Insights

On Wednesday, 14 May 2025, Alignment Healthcare (NASDAQ:ALHC) presented at the Bank of America 2025 Healthcare Conference. The company highlighted its strategic initiatives, emphasizing strong management of inpatient admissions and revenue visibility. While the transition of Thomas Freeman from CFO presents a leadership change, Alignment remains confident in its growth trajectory within the Medicare Advantage sector.

Key Takeaways

• Alignment Healthcare’s inpatient admissions exceeded expectations, showcasing operational strength.
• The company anticipates margin expansion due to favorable 2026 rate notices.
• New CFO Jim Head brings fresh insights, supported by a robust existing team.
• Government engagement focuses on data-driven Medicare Advantage strategies.
• Growth strategy targets a revenue increase from $4 billion to $10 billion by expanding membership.

Financial Results

• Inpatient Admissions: The first quarter saw inpatient admissions per thousand surpassing expectations at 152, a critical area as inpatient spend comprises 50% of institutional costs.
• MLR Delta: Initial membership growth in 2024 impacted MLR, but projections indicate improvement over time, with year-one members starting at 89-90% and potentially reaching the high 70s.
• Part D and MBR: The Inflation Reduction Act and risk corridor dynamics will influence Part D MBR, with lower expenses in Q1 leading to contra revenue. Revenue is expected to accrue more in subsequent quarters.
• 2026 Final Rate Notice: Exceeded expectations, suggesting potential for margin expansion and maintaining competitive advantages in star ratings.

Operational Updates

• Forecasting Accuracy: Alignment Healthcare’s transparency and unified data architecture enable precise MBR forecasting, with daily tracking of operational metrics.
• AIVA Platform: Utilizes the AIVA platform to monitor metrics and quickly address utilization variances.
• Clinical Model: Focuses on managing high-risk members with home-based care teams, targeting the 10-20% of members responsible for 70-80% of MLR spend.
• Star Ratings: Holds five-star ratings in North Carolina and Nevada, with changes in the STAR model expected to further benefit the company.

Government Engagement

• Washington Meetings: Engaged with key government committees and agencies, advocating for a data-driven approach to Medicare Advantage with an emphasis on care rather than denial rates.
• Focus on Risk Adjustment and Supplemental Benefits: Emphasizes the importance of correlating risk adjustment with clinical outcomes and effective supplemental benefits.

Future Outlook

• Growth Strategy: Plans to leverage free cash flow for state expansion by 2027, aiming to increase membership to 600,000 lives and revenue to $10 billion.
• Expansion Drivers: High star ratings, a replicable care model, and improved distribution partnerships are key to future growth.

Q&A Highlights

• United’s Medicare Advantage Trends: Alignment expressed confidence in outpatient and revenue visibility for 2025.
• Washington’s View on Medicare Advantage: Emphasizes the need for risk adjustment to improve clinical outcomes, with a focus on supplemental benefit efficacy.

Alignment Healthcare’s comprehensive approach to managed care and strategic planning positions it well within the Medicare Advantage landscape. For further details, please refer to the full transcript below.

Full transcript - Bank of America 2025 Healthcare Conference:

Craig Jones, Healthcare Analyst, Bank of America: My name is Craig Jones. I’m one the healthcare analysts here at Bank of America. And today I have the pleasure of hosting John Kayo, CEO, and Thomas Freeman, special advisor, senior advisor to the new CFO from Alignment Healthcare. So first of all, I guess, guys, how about we starting with maybe the most surprising news in the last quarter, Thomas, why don’t you tell us why you decided now is the best time to step aside from your current role? And then, John, if you could dive into why you think new CFO Jim Head is right known for the job and maybe go into a little bit of the transition plan.

Thomas Freeman, Special Advisor, Senior Advisor to the new CFO, Alignment Healthcare: Yeah, yeah, happy to. Good afternoon everyone. So yeah, I’ve been with the company ten years, eight as CFO, and I really think it’s sort of the convergence of some personal factors and considerations, but also probably more importantly just sort of the stability and momentum of the company that made it seem like a really kind of natural time to think about this. So on a personal level, I said I’ve been here a long time, without getting into all the gory detail, working through a few different personal health issues. But big picture, when you think about where the company’s been in the last couple of years, we had a breakout 2024 both from a growth and from a profitability standpoint.

I feel really confident that 2025 is very much on the trajectory to make it even a better year than 2024. And it’s really that strong foundation in the depth of my team in mind that it felt like the right time to begin a transition conversation. I think most important from my perspective is I’m not going anywhere anytime soon. There’s no new job, no new company. I’ll be here until at least in 2025.

And my objective is to both support John and Jim on the transition over an extended period of time, but also to help John in a few other things. And I think one of the benefits I have is having been here ten years, I think I can bring a financial lens to a lot of what we do operationally, continue to help partner with different parts of the business in terms of how we scale the company And continue to kind of, you know, hit our growth and financial objectives, not just for this year, but future years.

John Kayo, CEO, Alignment Healthcare: Yeah, I’d just echo what Thomas said. We, you know, we’ve got a strong team, a strong bench. And and under Thomas’ leadership, the process, the infrastructure, the team is all very much in in in in place. So I can reassure you that there’s gonna be no change in any of that. And and we talk a lot about visibility and control in our business, and and that’s gonna remain intact.

With respect to Jim, we did an exhaustive search. And and as you can imagine, it’s hard to replace somebody like Thomas, but we really had to make a decision as to do we get somebody from the existing space, or do we get somebody different and new? And we basically concluded that there’s not a lot of people that know how we do Medicare Advantage. And so we didn’t want anybody that was wed to kind of the old ways of doing Medicare Advantage. And so we went outside the, you know, kind of the the kind of what you would think would might be a traditional path.

We got the person that we thought was the smartest person with the most, experience, a great leader, and and that could work with the rest of the team. And when I combine that with the infrastructure already in place, I think we’re going be just fine.

Craig Jones, Healthcare Analyst, Bank of America: Awesome. All right. Thanks for the color, guys. So now let’s talk a little bit about the business. So this week, some news at United, right, talking about Medicare Advantage trends getting worse in utilization.

Why don’t you talk about what you’ve seen maybe first quarter and then maybe quarter to date, and then kind of how you see 2025 playing out?

Thomas Freeman, Special Advisor, Senior Advisor to the new CFO, Alignment Healthcare: Yeah, I’m happy to. So, of the things that we often talk about is our inpatient admissions per thousand. And the reason we start with that is both because I think it’s a really important quality metric from the seniors perspective, but also from a financial standpoint, inpatient spend represents about 50% of institutional costs. And so if you’re gonna really focus on and try to perform well on any one measure in this business, that’s probably the number one cost measure to really be zeroed in on. So, we had a great first quarter.

I think we ran about 152 better than expectations. And we said that for the year, we anticipate that we will continue to run around that range, which is a slightly step higher than last year, a higher mix of duals and C SNP products this year. And so order to date, we’re feeling very good about it still. Nothing’s really changed in the last few weeks since we last spoke. I think that continues to be really our kind of number one area of differentiation is to invest more care upfront to the right people.

And from a financial perspective, it’s pretty simple math. You can spend a few hundred dollars per visit to send a nurse to someone’s home, try to provide better proactive preventative care. And if you do the right things, you can avoid very expensive and unnecessary downstream utilization that costs a lot more than a few hundred dollars for a home visit. So it’s something that think is going very well. I think beyond the inpatient setting, I think we feel good about our outpatient visibility.

That’s something that has been a common topic now for at least eighteen months. Haven’t seen anything deviate relative to expectations there. And I think I would add though, I think some of the recent commentary is more utilization driven. I think we feel very good about our revenue visibility as well for 2025. And I know there’s been some kind of confusion around sort of the global cap provider model from the plan model, when you think about the health plan business that we’re in, we see what we get paid from CMS every month on our new members.

And I feel very, very comfortable that our both year to date and kind of full year outlook is right in line with where it should be given what we’ve seen so far.

Craig Jones, Healthcare Analyst, Bank of America: Okay, great. So next, let’s talk sort of about the first year cohort mix. You’ve been growing so quickly the last couple of years. Have you captured a lot of market share? Members up 50% in ’24, ’30 percent in ’25.

Can you remind us and walk us through sort of that MLR delta you see between that year one member, the year two member, and then say a member at a more stable, more mature MLR?

Thomas Freeman, Special Advisor, Senior Advisor to the new CFO, Alignment Healthcare: Yeah, so it’s one of the most powerful parts of our model is the sort of strategic objective to want to partner with providers to manage the risk ourselves as opposed to just transferring that risk to a third party. And so when we do it with that approach in mind, our year one members typically run around 89%, ninety % MBR’s in the first year. Over time that improves into the low 80s and in some cases even the high 70s. And so when you think about what we’re trying to do from a bid standpoint, we’re essentially using that margin outperformance on our more tenured membership over time to reinvest into a richer product offering that in turn drives growth and retention. And so I think last year, given that we grew close to 60% membership in 2024, that obviously was a headwind in terms of our MBR in 2024, just the large percentage of new members.

But we’ve seen a very solid retention through AEP and we’re very pleased with the first, whatever it is, four and a half months now progress in terms of that cohort going from year one to year two. And I think from a year one perspective in 2025, well obviously we saw quite a bit of growth so far this year, but things are looking kind of right in line where we expect them to be.

Craig Jones, Healthcare Analyst, Bank of America: Awesome. Okay, great. And then from a forecasting perspective, you know, think it’s important to highlight alignment has been really sort of above and beyond the rest of the industry and be able to project their MBR, you know, at the beginning of the year. While a lot of the others in the space were kind of caught sort of by surprise around higher utilization in the last two years, you were really able to dial it in well before others. So can you give us some clarity around sort of what enables this around your tech stack and sort of your process and sort of just what is it that you’re doing differently in that regard to have that heightened visibility?

John Kayo, CEO, Alignment Healthcare: Yeah, so internally we would reference it as transparency, visibility, control that leads to durability. And so the transparency part is really important because it forces each of the functional areas in the company to challenge itself to get better. This is concept of continuous improvement. It’s something that we’ve instilled culturally. And so when you when we when were a smaller company, we had more manual workflows.

And so we’re changing that to automating and systematizing those workflow processes. That has led, in combination with our unified data architecture, this constant visibility. We have maniacal attention to detail. Operating metrics, financial metrics, clinical metrics, track daily. And so we just know where we stand on all census.

We know what our daily admissions per thousand is by market. We know what our odds rates are. We know what our readmission rates are. We know what our RAF score is. We know what our stars.

We always just it’s very simple. My my brain is numerators and denominators. Do you know what your numerators are? Do you know what your denominators are? So we’re tracking all of that, and we’ve systematized it into our our AIVA platform so that if there’s a variance, it pops out.

And so we know if there’s a hot spot. And I remind you, last last year when we grew so so much in q one of twenty twenty four, we had one market. It has about 1,500 members that had some outsized utilization. And so we we picked up on that. We knew what was going on, and then we had boots on the ground that actually did something about that.

And we changed the trends in, like, ninety days. We got it fixed. And and so that gives you the visibility and the control. And I would even say that actionable information, actual data that includes lab values, that includes pharmacy values, that includes authorizations, ADT information, All of that goes into our data stack to give us clues as to where what areas are are potential risks. And we’re just looking at it on a day daily basis, market by market, and we manage it.

It’s not automatic. What it is, is it requires the information available to you that you need boots on the ground to do something about it. And it’s a huge competitive advantage. When combined then with the clinical model of identifying that 10 to 20% of the membership that account for 70 to 80% of your spend in your MLR, pointing the resources in the most capital efficient way to take care of those people is kind of the magic. And it’s we found it to be the most repeatable and scalable of any model, and and we don’t invest in a lot of bricks and mortar.

And we don’t compete with our provider partners, with our PCP partners. We help them become more successful. And I think we these these words are the same things we’ve been saying from day one that I think the market is beginning to understand more and more.

Craig Jones, Healthcare Analyst, Bank of America: Okay, great. Thanks for that. So part D, you know, think it’s important to hit there. Like, we we’ve seen some changes this year around how that’s how that’s being implemented, of impacting seasonality, potential profitability. Can you walk us through sort of how this has trended versus expectations this year and how you expect it to reshape your margin seasonality?

I believe you expect it to be more downward sloping, but you’ve also got medical cost liability increasing through the year. So maybe explain that dynamic and sort of how that works.

Thomas Freeman, Special Advisor, Senior Advisor to the new CFO, Alignment Healthcare: Yeah, yeah, happy to. So in terms of the Part D and BR, which again is a fairly small portion of the overall MBR, but in terms of Part D and BR, we would expect the first half to be higher and the second half to be lower. And I think to really understand that you have to separate the expense from the revenue component. And so in terms of your comment on the expense side, that’s spot on. We do expect our expense PMPM to continue to grow, particularly given some of the changes this year associated with the Inflation Reduction Act.

We’ve already seen some of that in Q1 where in particular our non low income population in particular has seen higher increases year over year. And we expect that to continue, I think similar to what you’re hearing from others across the industry. I think maybe where our view is a little bit different is really more related to the revenue PMPM dynamic. And that’s a function of I think two things. One is the risk corridor and the second is the sweeps.

And so in terms of the risk corridor, as a reminder for the group, the way this is set up is that if your expenses run ultimately at least 5% greater than what you put in the bids, some portion of that gets reimbursed by CMS. And so for us in the first quarter, we actually are booking negative revenue or contra revenue because our expenses in Q1 are running less than what we put in the bids for the full year. As the year progresses, we’re going to flip from a payable position to a receivable position, I. E. We’re going to actually start booking risk corridor revenue as our expenses continue to grow.

It’s just that that’s helping support our revenue PMPM growth faster than the expense growth. I would contrast that with others where that’s certainly not the case and some of our larger competitors have talked about actually already booking that risk quarter revenue in Q1 whereas we are not. And the second is on the suites itself. I think we try to take a conservative posture on our RAP accruals, particularly for our new members where we have less visibility. And so typically what happens is we get more of an uptick in the second or third quarters from a revenue PMPM perspective, both on Part C and Part D, in this case talking about Part D.

Then I think some of the big guys who have less new members and therefore probably accrue a little bit greater and earlier than what we do. So I think for those two reasons, you get a little more of a revenue PMPM bump that supports that MBR seasonality you were asking

Craig Jones, Healthcare Analyst, Bank of America: Yeah, that’s super helpful. So I guess looking to next year, would you change how you do that accrual or would the seasonality change next year or would you expect to kind of run the same way?

Thomas Freeman, Special Advisor, Senior Advisor to the new CFO, Alignment Healthcare: No, think probably similar. Think everyone’s learning a lot right now and thinking about what they’ve seen thus far for the twenty twenty six bids. I think obviously the anticipation is that utilization that we’ve seen this far is here to stay. And I think some of these changes that were driven due to the inflation reduction act aren’t going to be going anywhere. So as we sit here today, at least, I think we would anticipate similar results at a similar approach to how we think about our bids for 2026 as well.

Craig Jones, Healthcare Analyst, Bank of America: Okay, got it. And then so maybe on the final rate notice, right? Came in above expectations for most, should be a rising tide for the entire Medicare Advantage industry. But alignment’s actually really outperformed in the last few years when it was tight, right? You all really sort of started taking a ton of market share then.

So maybe first, why don’t you highlight why was it that Alignment was able to do so much better than their peers when the margins were tighter over the last few years?

John Kayo, CEO, Alignment Healthcare: Yeah, I can respond to that. It starts with really the strategy of the business. As you think about with the fundamental risk in Medicare Advantage, it’s it’s really reimbursement exposure. And so when we set up the company, we had to make sure that we could win and have durability irrespective of what happens to reimbursement. And so if rates go up like they have in the final notice, we we win all boats rise in a rising tide, and I think there’s opportunity for margin expansion.

The relative advantage that we have on stars and the less exposure that we have to v ’28 still remains intact. Right? And and so I we feel good about it. We feel really good Actually, I’ll take credit.

I mean, I called this out in January in San Francisco, and and and sure enough, California, it’s about 8% was the top line, 9% nationally. And if rates go down like they have the last couple years, our competitive advantage is even greater. And so the way you do that is you have to have the ability to produce high quality at the lowest cost structure. That’s how you insulate yourself from this reimbursement exposure. We never got hooked on the strategy of optimizing risk adjustment.

We didn’t do that. We never thought of it as rev cycle. We always thought of it as an extension of documenting the care and care and quality plans for our members. And so I think the strategy was the right thing to do. It it created less exposure to RAF changes, and the investments that we made in STARS is also paying off.

So I I think I think that’s the the the main takeaway is you gotta have the most efficient cost structure, which is why, by the way, from a core competency point of view, we had to make sure we were really good at managing the risk. And managing the risk in MA is all about providing care. It’s fundamentally a care management and care delivery model. It’s not just an insurance community rated commercial actuary model. It’s care delivery.

So you have to have a care delivery model that can scale.

Craig Jones, Healthcare Analyst, Bank of America: Got it. Yeah. No. That makes a ton of sense. So I guess looking forward to ’26 now with the final rate notice, plus 5% is a lot better than plus zero percent as it’s been the last couple of years.

I think it’s probably fair to say that’s more likely plans will be more likely to maintain their benefits versus perhaps cutting the last couple of years. So is there any rule of thumb or color you can provide? When a plan does maintain benefits, what’s the likelihood a member will look to potentially switch or stay on the plan they’re currently at?

John Kayo, CEO, Alignment Healthcare: Yeah. I would suspect the industry is going to maintain or in some cases degrade to the maximum allowable with their TBC limits are. And I think that typically when you factor in the TBC issues, it takes two to three years to kinda get back to the margins which you need to get to. So that’s what I would expect. We obviously are not gonna comment on what we’re going to do since we’re right in the throes of bids right now, but we feel really good about our ability to produce both growth and margin expansion, because of the relative advantages of stars and b ’28.

That holds through in ’26. I also think there’s some structural changes that are occurring to the STARS model, specifically as it relates to the caps that impact ’27 that we’re also gonna be advantaged in. So we we feel pretty good about where we are for the next couple years, and we feel strong about our visibility in ’25.

Craig Jones, Healthcare Analyst, Bank of America: Yeah. So I did wanna hit on those the structural advantages, star ratings for sure. So maybe just remind us, right, you know, we do have, I think, a couple Star Reads into this year, and next year we’ll have some sort of structural changes and how they’re calculated. Maybe you just want to walk us through what tailwinds are there and

John Kayo, CEO, Alignment Healthcare: Yeah, yeah. So right now, the CAHPS scores represents about 33% of the overall star rating. It’s they’re called four weighted measures. That’s actually gonna go down to two weighted measure. And so they’re gonna be emphasizing more quality or HEDIS metrics, which we’re really, really good at.

I think we’re four and a half or five in most markets. And and so that’s gonna be an advantage from a broader perspective on overall STARS as it relates to 2026. In addition to that structural change, the initiatives that we’ve got going are really paying off, and we feel good about where we stand on stars. The what what Craig’s talking about in ’27 is there’s changes to the health equity index. They changed the name of it.

I forgot

Unidentified speaker: what they

John Kayo, CEO, Alignment Healthcare: call it. They they call it something. But, basically, it’s gonna allow us the opportunity to participate in the reward factor in in ’27. If and and and I think the opportunity in California, specifically where most of our members are in our California HMO contract, we don’t get any reward factor right now because of the caps issue. And with caps actually being less important and the fact that we feel very well positioned for the health equity index, and the reward factor opportunity, we think both of those give us a stronger position to increase our stars for the next couple of

Craig Jones, Healthcare Analyst, Bank of America: years. Yeah. Absolutely. These changes have obviously been in place for a little bit of time. The new administration’s been in there for six months or so.

Anything out of Washington, you know, seems more positive, right, in general, towards Medicare Advantage? Anything you’re hearing that, you know, any color you might have, any kind of good Yeah.

John Kayo, CEO, Alignment Healthcare: We were in Washington last week, and we spent the week there. We met with both sides of the house ways and means committee staff and leadership. Same with the senate finance committee, both sides. We spent time at CMS, and we also spent time at the White House. And we were really sharing what we do and this notion of the ability to make Medicare Advantage work by providing more care, not less care, but more care, in a very data driven way.

And I think people were very, very interested in that. Our denial rates were like 1.9% compared to the industry about 10%, and there’s certainly some outliers or even higher than that. And so they’re they’re kind of, like, scratching their heads going, well, how are you doing it? I said, well, you we use a lot of data. You’ve heard of me as talk about this.

We identify who in that 10 to 20% of our membership account for 70 to 80% of the MLR spend, and then we really envelop that membership with home based interdisciplinary care teams, doctors, nurses, case managers, social workers. And we make sure that for that high risk polyprotic population, they’re just taken care of. And we make sure the little things don’t turn into big things. And all of that, clinical model is is, something that they really like hearing. I think they were very preoccupied with the reconciliation bill.

They were very preoccupied with Medicaid and the 880,000,000,000 that they wanna cut in the next ten years. So there’s a lot of focus on that. But as they kinda come out of this reconciliation phase, I do think they’re gonna focus on MA. I think there was sensitivity to ensuring that risk adjustment was going to ensure better clinical outcomes for the beneficiary, I. E, if we’re gonna pay you more in higher risk scores, we wanna make sure that you’re providing more care.

And there’s a correlation between that. Not dissimilar to what currently exists with chronic special needs plan population. And so that C SNP population, if you enroll in one of these products, you as a plan need to document a fully documented care plan, and get that submitted over to CMS from a regulatory compliance perspective. And so there’s a possibility of expanding that. They don’t want gaming going on in risk adjustment.

They want it to be correlated, and it’s a documentation and extension of care delivery, which I think is great. I think they’re concerned about the distribution the and some of the broker activities going on. I think you’ve read about that. Those are those are things that they were asking us a lot of questions about. The other thing I would say is, they want to get more data on the efficacy of the supplemental benefits.

And we said we would absolutely share with them what kind of data we have. And so for example, if you have a grocery benefit that you’re providing for the seniors, what are they spending the money on? You know, we can tell them what’s eggs, it’s milk, it’s, you know, whatever. We’re gonna give them that data. And so I think they appreciated that.

And I think they’re gonna get on this right after they get the reconciliation bill dealt with and the taxes dealt with. And I think I think they’re going back and forth on that. I will say that it was really interesting. You know, when we went and talked to the Democratic side of both the house and ways, house ways and means committee and the senate finance committee on the Democratic side, we weren’t we were not thrown out. They actually listened to what we were saying because of the kind of disruptive kind of talk track that we were talking about.

It was very different than what they were hearing from others.

Craig Jones, Healthcare Analyst, Bank of America: Wow. Sounds like quite the week. Yeah.

John Kayo, CEO, Alignment Healthcare: Was it was a great week. Yeah.

Unidentified speaker: So I

Craig Jones, Healthcare Analyst, Bank of America: believe we switch gears to, you know, pretty exciting milestone coming up. You know, getting pretty close to free cash flow positive. Hopefully this year, maybe next year, but, you know, we’re getting dialed in there. So, you know, as you think about, you know, expanding more to states outside of California, and you’ve got a, you know, a handful of states currently right now, you know, you said you want to use free cash flow to fund new state expansion. So going forward, as we reach that free cash flow positive, how do you think about growth in terms of prioritizing new states, existing smaller states, maybe scaling California further?

John Kayo, CEO, Alignment Healthcare: Yeah, I think the answer is bothand. It’s not eitheror, it’s bothand. We have like 5% market share in our existing geographic footprint. We think the opportunity to double that is very achievable. You know, we’ve shared that, you know, at least internally, we’re we’re really talking about how do you get to the I think we’re we’re at three three point eight we’re guiding to 3,800,000,000.0 in revenue.

It’s rounded to four. How do you get to 4 to 10,000,000,000? How do you do that in a responsible way? And and we’re about 220,000 lives. You need to get to about 600,000 to get to 10,000,000,000.

And so if you think about it in those terms, it’s very achievable. I think we’re gonna continue to take share in our existing footprint, And we need to start planting flags in new states, really starting in 2027. What gives me confidence in that is our ability to get star ratings. So it’s five stars in North Carolina, five stars in Nevada. It’s a big deal, because everybody’s focusing on quality outcomes now.

The deployment of the care model is super important. So that’s becoming more and more replicable. And, as evidenced by a 45 admissions per thousand in our ex California markets, even with the growth that we have. And so, the last piece of it is, I I I think with those two levers, it gives us the latitude to have competitive benefits. And I think the broker and distribution communities now outside of California are hearing more about us, and they’re they’re they’re just hearing more about us.

They’re more able to and willing to work with us from a distribution point of view. And and it’s not lost on them that some of the, you know, historical folks that they’ve been working with are not growing to the extent that they had in the past. And so they’re more open to working with us. All of those combined with the fact that our back office operations is working really well. I mean, we we onboarded over a hundred thousand members in the last year and a half with no abrasion.

I mean, stars are still holding our our a member service, our onboarding is working, our clinical model is working, And we’re just getting more and more mature to absorb that. All those things give me confidence that in 2027, we’re going to be able to, I would say, have a much higher expected value to grow profitably sooner than we had in the past.

Craig Jones, Healthcare Analyst, Bank of America: Awesome. I think we’re out of time, bud. Thanks so much. This was great.

Thomas Freeman, Special Advisor, Senior Advisor to the new CFO, Alignment Healthcare: Thanks, Greg. Thanks, Greg. You’re welcome. Thanks, guys.

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