Bright Health Group Inc (NYSE: BHG) recently released its financial and operational results for the second quarter of 2021. BHG is a diversified health services provider working on a national Integrated System of Care.
About the company
According to CEO and president Mike Mikan, the company began its journey as a public company with robust second-quarter results. He notes that the results were impressive across the group’s companies, NeueHealth, the company’s personalized care delivery service, and Bright Healthcare, the company’s healthcare distribution and financing business. BHG is now focused on changing healthcare in America for consumers and its Care Partners through its alignment model, which aims to make healthcare simpler and more accessible, personal and affordable.
Financial summary
The company’s total revenue was $1,114 million in 2Q2021, a 275% increase from last year’s similar period. These results were essentially a result of organic membership growth in Bright HealthCare in their 2020 open enrollment period and special enrollment period that commenced on February 15, 2021. This was further boosted by organic and inorganic growth at NeueHealth. BHG additionally experienced an increase in investment income resulting from a $58.5 million unrealized gain on equity securities.
In the second quarter, the company’s medical cost ratio was 82% on an adjusted basis and 86.8% on a reported basis. This is a significant increase from 2Q2020’s adjusted MCR of 82.7%. Cathy Smith, the company’s Chief Financial and Administrative Officer, observes that as the company compares the year-to-date 2021 and the first half of 2020, its growth and performance in the period are visible. She adds that the company’s first-half has more than quadrupled since last year while maintaining a consistent adjusted MCR below 80%. Additionally, the company continues to leverage operating costs as it grows with an operating cost ratio of 23.4% for 2Q2021, a 6.5% increase from the same period last year.
In the second quarter, bright Health Group’s GAAP net loss was $43.7 million, a $25.6 million increase in net loss from a similar period in 2020. The company’s non-GAAP adjusted EBITDA was a $35.3 million loss in the second quarter, increasing last year’s $23.2 million.
