Clover Health Investments Corp (CLOV) 2022 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Clover Health Fourth Quarter and Full year '22 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the prepared remarks (Operator Instructions) As a reminder, today's call is being recorded. I would now like to turn the call over to Ryan Schmidt, Investor Relations for Clover Health. Please go ahead.

女士們先生們，早上好，歡迎來到 Clover Health 第四季度和全年 '22 收益電話會議。此時，所有參與者都處於只聽模式。問答環節將遵循準備好的評論（操作員說明）作為提醒，今天的電話正在錄製中。我現在想把電話轉給 Clover Health 投資者關係部的 Ryan Schmidt。請繼續。

Good morning, everyone. Joining me on our call today to discuss the company's fourth quarter and full year results are Andrew Toy, Clover Health's Chief Executive Officer; and Scott Leffler, the company's Chief Financial Officer. You can find today's press release and the accompanying supplemental slides in the Investor Events and Presentations section of our website at investors.cloverhealth.com. This webcast is being recorded, and a replay will be available in the Investor Relations section of the Clover Health website.

大家，早安。 Clover Health 的首席執行官 Andrew Toy 今天和我一起打電話討論公司的第四季度和全年業績；和公司首席財務官 Scott Leffler。您可以在我們網站 investors.cloverhealth.com 的投資者活動和演示部分找到今天的新聞稿和隨附的補充幻燈片。該網絡廣播正在錄製中，重播將在 Clover Health 網站的投資者關係部分提供。

I'd also like to caution you that we may make forward-looking statements during today's call that are subject to risks and uncertainties, including expectations about future performance. Factors that may cause actual results to differ materially from expectations are detailed in our SEC filings, including in the Risk Factors section of our 2022 annual report on Form 10-K. Information about non-GAAP financial measures referenced, including a reconciliation of those measures to GAAP measures can be found in the earnings materials available on our website.

我還想提醒您，我們可能會在今天的電話會議上做出前瞻性陳述，這些陳述會受到風險和不確定性的影響，包括對未來業績的預期。可能導致實際結果與預期存在重大差異的因素在我們提交給美國證券交易委員會的文件中有詳細說明，包括我們 2022 年年度報告 10-K 表格的風險因素部分。有關參考的非 GAAP 財務措施的信息，包括這些措施與 GAAP 措施的調節，可以在我們網站上提供的收益材料中找到。

With that, I will now turn the call over to Andrew.

有了這個，我現在將把電話轉給安德魯。

Thank you, Ryan, and thanks, everyone, for joining us. I'm excited to be here today on my first earnings call as Clover's Chief Executive Officer. This morning, I'm pleased to share our strong results for 2022, highlighted by insurance MCR improving over 1,400 basis points compared to 2021. This improvement in MA planned MCR reflects a continuation of the favorable performance trends we experienced throughout the year. Most importantly, our results highlight Clover Assistant impact on our business, and I'm excited by the data showing our technology's clear ability to empower Medicare physicians to identify and manage chronic diseases earlier, which I'll discuss in more detail shortly.

謝謝你，Ryan，也謝謝大家加入我們。我很高興今天能來到這裡參加我作為 Clover 首席執行官的第一次財報電話會議。今天早上，我很高興與大家分享我們 2022 年的強勁業績，重點是保險 MCR 與 2021 年相比提高了 1,400 多個基點。MA 計劃 MCR 的這種改善反映了我們全年經歷的良好業績趨勢的延續。最重要的是，我們的結果突出了 Clover Assistant 對我們業務的影響，我很高興數據顯示我們的技術能夠讓 Medicare 醫生更早地識別和管理慢性病，我將在稍後詳細討論。

In 2022, we emphasized profitability over growth. This strategic shift impacted both the insurance and noninsurance lines of business. We expect the combination of improved 2022 insurance results and the enhanced strategic emphasis on profitability over growth to position us for a successful 2023 as we demonstrate the strength of our approach to Medicare and deliver significant progress towards profitability. As a result, we're also pleased to reiterate and expand upon the partial guidance for 2023 that was issued last month.

2022 年，我們強調盈利能力而非增長。這一戰略轉變影響了保險和非保險業務線。我們預計 2022 年保險業績的改善和對盈利能力而非增長的戰略重點的加強相結合，將使我們在 2023 年取得成功，因為我們展示了我們在 Medicare 方面的實力，並在盈利能力方面取得了重大進展。因此，我們也很高興重申並擴展上個月發布的 2023 年部分指南。

Let's start with our insurance segment, where throughout 2022, we delivered favorable results in both MCR and revenue. We are proud of our full year insurance MCR of 91.8%, which was better than our most recent 2022 guidance and is reflective of the continued improvement in core insurance operations and the value derived from Clover Assistant. Clover Assistant underpins our differentiated offering in the market, high-value plans at low cost on a wide network. Through our unique approach, we've proven our ability to grow. And as we prioritize profitability, we believe the mode afforded by Clover Assistant will allow us to flip the switch to sustainable industry-beating growth once we've established core profitability.

讓我們從我們的保險部門開始，在整個 2022 年，我們在 MCR 和收入方面都取得了良好的成績。我們為 91.8% 的全年保險 MCR 感到自豪，這比我們最近的 2022 年指導要好，反映了核心保險業務的持續改進和 Clover Assistant 帶來的價值。 Clover Assistant 鞏固了我們在市場上的差異化產品，在廣泛的網絡上以低成本提供高價值的計劃。通過我們獨特的方法，我們證明了我們的成長能力。當我們優先考慮盈利能力時，我們相信 Clover Assistant 提供的模式將使我們能夠在建立核心盈利能力後轉向可持續的行業領先增長。

As an additional reminder, we were paid on 3 stars during 2022. So our results are not yet reflective of the favorable impact that we will enjoy from being paid on 3.5 stars for our PPO plan beginning this year. We also announced in the fall that we were awarded a 3.5 star rating for all of our plans for 2024. The combination of our strong 2022 insurance results, our PPO plan being paid on 3.5 stars and the ability to improve care through Clover Assistant positions us well for an even stronger 2023, where we are initially guiding to an insurance MCR range of 89% to 91%.

額外提醒一下，我們在 2022 年獲得了 3 星的報酬。因此，我們的結果尚未反映出我們將從今年開始的 PPO 計劃獲得 3.5 星報酬所帶來的有利影響。我們還在秋季宣布，我們 2024 年的所有計劃都獲得了 3.5 星評級。我們強勁的 2022 年保險業績、我們的 PPO 計劃以 3.5 星支付以及通過 Clover Assistant 改善護理的能力相結合，使我們處於領先地位對於更強勁的 2023 年，我們最初指導的保險 MCR 範圍為 89% 至 91%。

For our noninsurance business, during the full year 2022, MCR of 103.4% improved compared to 2021. While we did improve, this is not a result we are satisfied with. As discussed on previous calls, we strategically reduced the number of participating physicians in the program for 2023, which resulted in a reduction in aligned beneficiaries under the program. By focusing on providers who are more closely aligned to our approach, we expect MCR in 2023 to improve to a range of 98% to 100%. Another area we're really excited about is Clover Home Care, which is a part of our insurance business operations. Clover Home Care, our internal primary care practice drives significant clinical value by delivering in-home care directly to our most vulnerable members.

對於我們的非保險業務，在 2022 年全年，與 2021 年相比，MCR 提高了 103.4%。雖然我們確實有所提高，但這並不是我們滿意的結果。正如在之前的電話會議上所討論的那樣，我們戰略性地減少了 2023 年該計劃的參與醫生人數，這導致該計劃下的一致受益人減少。通過關注更符合我們方法的供應商，我們預計 2023 年的 MCR 將提高到 98% 到 100% 的範圍。我們真正感到興奮的另一個領域是 Clover Home Care，它是我們保險業務運營的一部分。 Clover Home Care，我們的內部初級保健實踐通過直接向我們最脆弱的成員提供家庭護理來推動顯著的臨床價值。

In 2022 alone, we serviced over 3,300 members receiving great feedback and high member satisfaction, which we believe also contributes to higher member retention. These members are some of our most medically complex, often with multiple advanced comorbidities and high institutional claims. For this cohort of Clover members, we're focused on home-based supportive care models, including palliative that enable our most complex members to receive the care they need at home rather than in a hospital. When measured against other eligible but not enrolled members, we see near-term meaningful cost reductions for members enrolled in the program and these cost reductions come primarily from lower institutional claims. That's why in 2023, we plan to increase the size of our in-home practice panel to approximately 4,000 members and thereby increase our MA planned medical expenses under home care management to more than $150 million.

僅在 2022 年，我們就為 3,300 多名會員提供了服務，得到了很好的反饋和很高的會員滿意度，我們相信這也有助於提高會員保留率。這些成員是我們醫學上最複雜的成員，通常患有多種晚期合併症和高機構索賠。對於這群 Clover 成員，我們專注於以家庭為基礎的支持性護理模式，包括使我們最複雜的成員能夠在家中而不是在醫院獲得所需護理的姑息療法。當與其他符合條件但未註冊的會員進行比較時，我們看到註冊該計劃的會員在短期內有顯著的成本降低，而這些成本降低主要來自較低的機構索賠。這就是為什麼在 2023 年，我們計劃將我們的家庭實踐小組的規模增加到大約 4,000 名成員，從而將我們在家庭護理管理下的 MA 計劃醫療費用增加到超過 1.5 億美元。

With that, I'll now hand over to Scott for the financial update.

有了這個，我現在將交給斯科特進行財務更新。

Thanks, Andrew. The Clover team's hard work is resulting in increased momentum across the business. I'll first cover the fourth quarter and full year 2022 financial highlights and then review our outlook for 2023. As Andrew mentioned, fourth quarter and full year 2022 financial results were highlighted by significantly favorable insurance MCR performance and strong insurance revenue growth. We also continued to moderate year-over-year adjusted SG&A growth as compared to 2021. For the insurance segment, MCR improved to 92.4% this quarter from 102.8% in Q4 of last year. This result was driven by continued maturation of our portfolio and insurance operations as well as reduced COVID-related expenses.

謝謝，安德魯。 Clover 團隊的辛勤工作正在推動整個企業的發展勢頭。我將首先介紹第四季度和 2022 年全年的財務亮點，然後回顧我們對 2023 年的展望。正如安德魯所提到的，第四季度和 2022 年全年的財務業績以顯著有利的保險 MCR 業績和強勁的保險收入增長為重點。與 2021 年相比，我們還繼續放緩調整後的 SG&A 同比增長。對於保險部門，MCR 從去年第四季度的 102.8% 提高到本季度的 92.4%。這一結果是由我們的投資組合和保險業務的持續成熟以及與 COVID 相關的費用減少所推動的。

Our full year insurance MCR demonstrated a meaningful improvement over a more extended time period with full year 2022 MCR of 91.8%, improving significantly from 106% in 2021. We believe that these improvements are a reflection of our focus on expanding Clover Assistant capabilities and reach, building best-in-class insurance operations and the added benefit from medical expense trends normalizing compared to 2021. As we've mentioned in the past, we did experience some favorability from prior periods as well.

我們的全年保險 MCR 在更長的時間內取得了顯著改善，2022 年全年 MCR 為 91.8%，較 2021 年的 106% 有了顯著改善。我們認為，這些改善反映了我們專注於擴展 Clover Assistant 的能力和範圍，建立一流的保險業務，以及與 2021 年相比正常化的醫療費用趨勢帶來的額外收益。正如我們過去提到的，我們也確實從前期獲得了一些好處。

During the fourth quarter, insurance revenue grew 34% to $270 million. For the full year 2022, insurance revenue grew 36% to $1.085 billion. For both periods, member growth was the primary driver. Our noninsurance MCR during the fourth quarter was 103.6%, slightly elevated compared to Q4 of 2021 MCR of 103%. Full year 2022 noninsurance MCR of 103.4% was a better result compared to our MCR of 105.7% in 2021. Having said that, I'll reiterate Andrew's comments that our broader priority in 2023 is to deliver positive gross profit for this line of business. And we believe that our strategic shift towards a narrower base of providers positions us to do so.

第四季度，保險收入增長 34% 至 2.7 億美元。 2022 年全年，保險收入增長 36% 至 10.85 億美元。在這兩個時期，會員增長都是主要驅動力。我們在第四季度的非保險 MCR 為 103.6%，與 2021 年第四季度的 103% 相比略有上升。與 2021 年 105.7% 的 MCR 相比，2022 年全年非保險 MCR 為 103.4% 是一個更好的結果。話雖如此，我還是要重申安德魯的評論，即我們在 2023 年的更廣泛優先事項是為這一業務線帶來正的毛利潤。而且我們相信，我們向更窄的供應商基礎的戰略轉變使我們能夠做到這一點。

For the fourth quarter, noninsurance revenue grew 172% to $623 million. During the full year 2022, noninsurance revenue grew 256% to $2.38 billion. Year-over-year revenue growth was primarily driven by growth in aligned beneficiary. Favorability in the program, benchmark also contributed to stronger Q4 revenue, which was offset in our MCR results by higher total cost of care for aligned beneficiary.

第四季度，非保險收入增長 172% 至 6.23 億美元。 2022 年全年，非保險收入增長 256% 至 23.8 億美元。同比收入增長主要是由一致受益人的增長推動的。該計劃的受歡迎程度，基準也有助於第四季度收入的增長，這在我們的 MCR 結果中被一致受益人的更高總護理成本所抵消。

Fourth quarter adjusted SG&A was $86 million and full year 2022 adjusted SG&A was $321 million. Moderating adjusted SG&A remains a focus for us as we push towards profitability. Adjusted EBITDA for the fourth quarter was negative $81 million compared to a loss of $87 million in the prior year period. Adjusted EBITDA for the year was approximately negative $298 million, which is an improvement compared to the loss of $344 million during the prior year.

第四季度調整後的 SG&A 為 8600 萬美元，2022 年全年調整後的 SG&A 為 3.21 億美元。在我們推動盈利能力的過程中，適度調整後的 SG&A 仍然是我們關注的焦點。第四季度調整後的 EBITDA 為負 8100 萬美元，而去年同期為虧損 8700 萬美元。該年度調整後的 EBITDA 約為負 2.98 億美元，與上一年的虧損 3.44 億美元相比有所改善。

At the end of 2022, our restricted and unrestricted cash, cash equivalents and investments totaled $555 million on a consolidated basis and $332 million at the parent entity and unregulated subsidiary level. These balances were impacted during Q4 by the normalization of the $96 million working capital benefit referenced on our last earnings call and a $60 million DCE provisional settlement for 2021. While we always consider opportunistic financing, given our current healthy liquidity profile, I'll reiterate what we have said in the past, which is that the company expects to have adequate liquidity for 2023. In addition to our strong liquidity position, more broadly, we have a solid and unlevered balance sheet, which should provide opportunities for future sources of liquidity if needed. Nonetheless, our objective is to accelerate on the path of profitability and achieve positive cash flows in order to avoid dilution to our shareholders.

到 2022 年底，我們受限制和不受限制的現金、現金等價物和投資在合併基礎上總計 5.55 億美元，在母公司和不受監管的子公司層面總計 3.32 億美元。這些餘額在第四季度受到我們上次財報電話會議上提到的 9600 萬美元營運資本收益正常化和 2021 年 6000 萬美元 DCE 臨時結算的影響。雖然我們一直在考慮機會主義融資，但鑑於我們目前健康的流動性狀況，我會重申我們過去曾說過，公司預計到 2023 年將有充足的流動性。除了我們強大的流動性狀況外，更廣泛地說，我們擁有穩固且無槓桿的資產負債表，這應該為未來的流動性來源提供機會如果需要的話。儘管如此，我們的目標是加速盈利並實現正現金流，以避免對我們的股東造成稀釋。

Finally, I'll provide an overview of our full year 2023 guidance. We expect to continue to grow top line revenue for the insurance line of business to between $1.15 billion to $1.2 billion, with a heightened focus on profitability, targeting an insurance MCR of 89% to 91%.

最後，我將概述我們 2023 年全年的指導方針。我們預計保險業務的收入將繼續增長至 11.5 億美元至 12 億美元，並更加關注盈利能力，目標是保險 MCR 達到 89% 至 91%。

We expect to reduce the scale of our participation in the ACO Reach Program to result in improved noninsurance MCR of 98% to 100% and revenue of $0.75 billion to $0.8 billion. We estimate that adjusted SG&A will be between $315 million and $325 million. Full year adjusted EBITDA is expected to improve significantly to between negative $155 million and negative $205 million.

我們希望減少參與 ACO Reach 計劃的規模，從而將非保險 MCR 提高 98% 至 100%，並將收入從 7.5 億美元提高至 8 億美元。我們估計調整後的 SG&A 將在 3.15 億美元至 3.25 億美元之間。全年調整後的 EBITDA 預計將大幅改善至負 1.55 億美元至負 2.05 億美元之間。

In summary, we delivered strong insurance performance during both the fourth quarter and full year 2022 and are excited about the impact of our strategic emphasis on profitability for both lines of business will have on 2023 performance as we look to build upon the positive momentum from 2022.

總而言之，我們在第四季度和 2022 年全年都實現了強勁的保險業績，並且很高興看到我們對兩個業務線的盈利能力的戰略重點將對 2023 年的業績產生影響，因為我們希望在 2022 年的積極勢頭的基礎上再接再厲.

Now I'll turn the call over to Andrew for some final comments.

現在，我將把電話轉給安德魯，聽取一些最後的評論。

Thank you, Scott. To close, I want to emphasize the progress we're making with Clover Assistant, powering our differentiated approach to Medicare. Clover's technology-centric model is all about helping physicians with the early diagnosis and early care management of chronic disease, an approach that we believe closely aligns with CMS's recent proposed adjustments to Medicare Advantage. With the 2024 advanced notice, CMS has adjusted plan incentives to remove risk adjustment diagnosis that it believes do not predict future costs. Because of these MA rule changes, we expect to see many large established plans have to change the way that they have been operating and have to fundamentally rethink their approach to MA.

謝謝你，斯科特。最後，我想強調我們在 Clover Assistant 方面取得的進展，為我們對 Medicare 的差異化方法提供支持。 Clover 以技術為中心的模式旨在幫助醫生對慢性病進行早期診斷和早期護理管理，我們認為這種方法與 CMS 最近提出的對 Medicare Advantage 的調整非常吻合。隨著 2024 年的提前通知，康哲藥業調整了計劃激勵措施，以消除其認為無法預測未來成本的風險調整診斷。由於這些 MA 規則的變化，我們預計許多大型既定計劃必須改變他們一直在運作的方式，並且必須從根本上重新考慮他們對 MA 的方法。

On the other hand, at Clover, we have always said that the focus of MA to be on allowing doctors to both improve outcomes and lower costs, and this is precisely why we developed Clover Assistant, which is designed to help physicians with the early identification and early management of those conditions that most impact the members' health and consequently, the cost of care. Indeed, we're seeing that through this early identification of chronic disease, Clover Assistant can change the course of care. For example, our recent data shows that in a population with no documented history of diabetes, Clover Assistant was able to identify for the physician, those Clover members at higher risk of the disease and diabetes was often then evaluated, diagnosed and medication prescribed.

另一方面，在 Clover，我們一直說 MA 的重點是讓醫生既能改善結果又能降低成本，這正是我們開發 Clover Assistant 的原因，它旨在幫助醫生早期識別及早管理那些對會員健康影響最大的疾病，從而影響護理成本。事實上，我們看到通過慢性病的早期識別，Clover Assistant 可以改變護理過程。例如，我們最近的數據顯示，在沒有記錄的糖尿病病史的人群中，Clover Assistant 能夠為醫生識別那些處於疾病和糖尿病風險較高的 Clover 成員，然後通常會對其進行評估、診斷和開藥。

This is exciting to us because our data demonstrates that Clover Assistant can positively influence physician behavior, lead to earlier diagnosis interventions and help with early disease treatment. You can find a visual representation of our data in the accompanying Q4 supplemental slide deck. I'm very excited to share more as the year progresses. But with that, let's take questions.

這讓我們感到興奮，因為我們的數據表明 Clover Assistant 可以積極影響醫生的行為，導致早期診斷干預並幫助早期疾病治療。您可以在隨附的 Q4 補充幻燈片中找到我們數據的可視化表示。隨著時間的推移，我很高興能分享更多。但是，讓我們提出問題。

(Operator Instructions) We'll take our first question from Richard Close from Canaccord Genuity.

（操作員說明）我們將從 Canaccord Genuity 的 Richard Close 那裡回答我們的第一個問題。

Thank you, -- this is Will Hoover on for Richard. So you ended the year with roughly 89,000 MA members. In the past, you provided MA and Non-Insurance member and guidance, but that wasn't included. How should we think about the membership growth for 2023? And is that baked into your revenue guidance?

謝謝，我是理查德的 Will Hoover。所以你在這一年結束時擁有大約 89,000 名 MA 成員。過去，您提供了 MA 和非保險成員和指導，但不包括在內。我們應該如何考慮 2023 年的會員增長？這是否包含在您的收入指南中？

Yes. Thanks for the question, Will. So you may recall that when we issued preliminary guidance in early January, we did make a comment relating to the membership on the insurance side of the business coming out of AEP, and we indicated that it would be in line with our membership at the beginning of 2022. And so we don't have any update on that front. And then in terms of the aligned beneficiaries under the noninsurance side of the business, we're expecting that to be approximately 55,000 lives coming into 2023. And yes, both of those reference points are reflected in our guidance.

是的。謝謝你的問題，威爾。所以你可能還記得，當我們在 1 月初發布初步指南時，我們確實對 AEP 出來的業務的保險方面的成員資格發表了評論，我們表示這將與我們一開始的成員資格保持一致2022 年。所以我們在這方面沒有任何更新。然後就業務非保險方面的一致受益人而言，我們預計到 2023 年將有大約 55,000 人生活。是的，這兩個參考點都反映在我們的指導中。

(Operator Instructions) Our next question comes from Jason Cassorla with Citigroup.

（操作員說明）我們的下一個問題來自花旗集團的 Jason Cassorla。

You have Ben Rossi. I'm here for Jason. So thinking back on 2023 guidance, we're seeing that you have SG&A flat despite revenue coming down over 40% year-over-year. Would you walk us through some of the drivers behind that expense? And how we should be thinking about cadence over the course of the year? And then are you forecasting some increases to SG&A as you expand your home health offering.

你有本·羅西。我是來找傑森的。因此，回顧 2023 年的指導，我們看到儘管收入同比下降超過 40%，但 SG&A 持平。您能向我們介紹一下這筆費用背後的一些驅動因素嗎？我們應該如何考慮一年中的節奏？然後，隨著您擴展家庭保健產品，您是否預測 SG&A 會有所增加。

Sure. Thanks for the question. So first of all, I'll remind you that the overall decrease in revenue that we're guiding to for 2023 relative to 2022 is really -- it's driven exclusively by the noninsurance side of the business. And as we mentioned on our last call, there isn't -- when you look at the SG&A infrastructure of the company overall, there isn't a significant proportion of our SG&A that is exclusively dedicated to that side of the business and nor is it generally variable such that it would vary in relation to the number of aligned beneficiaries. So that's why you're not seeing a decline in the overall SG&A level that we're guiding to. I think part of your question was just around how does this sequence out during the year. And generally, from an SG&A seasonality standpoint, we do usually see elevated SG&A in Q1 as a result of broker commissions that we incur coming out of the prior year's AEP cycle. And then we usually have some amount of elevated SG&A in Q4 as well related to some of the marketing costs associated with the next AEP cycle.

當然。謝謝你的問題。所以首先，我要提醒你，我們指導的 2023 年相對於 2022 年的整體收入下降實際上是——它完全是由業務的非保險方面驅動的。正如我們在上次電話會議中提到的那樣，當您查看整個公司的 SG&A 基礎設施時，我們的 SG&A 中沒有很大一部分專門用於業務的這一方面，也沒有它通常是可變的，因此它會隨著一致受益人的數量而變化。所以這就是為什麼你沒有看到我們指導的整體 SG&A 水平下降的原因。我認為您的部分問題只是圍繞這一年中的順序。一般來說，從 SG&A 季節性的角度來看，我們通常會看到第一季度的 SG&A 增加，這是由於我們從前一年的 AEP 週期中產生的經紀人佣金。然後我們通常會在第四季度增加一些 SG&A，以及與下一個 AEP 週期相關的一些營銷成本。

And as a quick follow-up, just seeing the DCE PMPMs were stepping up quarter-over-quarter, pretty high. Just any commentary on the drivers behind that?

作為快速跟進，只看到 DCE PMPM 環比上升，相當高。只是對背後的驅動程序有什麼評論嗎？

Yes. I would characterize that as kind of a rising tide effect. On the revenue side, we saw some favorable movement in the relevant benchmarks that drive PMPM revenue. But then similarly, we also saw increases in total cost of care on our claims experience for aligned beneficiaries. And so the 2 moving in tandem have the effect of increasing both revenue and Med-X. But as you can see, there wasn't a significant change in the overall MCR performance for that line of business.

是的。我將其描述為一種漲潮效應。在收入方面，我們看到推動 PMPM 收入的相關基准出現了一些有利的變化。但同樣地，我們也看到我們對一致受益人的索賠經驗的總護理成本有所增加。因此，這兩個協同移動具有增加收入和 Med-X 的效果。但正如您所見，該業務線的整體 MCR 性能沒有顯著變化。

Our next question comes from Kevin Fischbeck with Bank of America.

我們的下一個問題來自美國銀行的 Kevin Fischbeck。

Great. I appreciate the comments about liquidity for this year. Is there some way to think about how the company's cash burn looks like relative to an EBITDA number. So if you're going to lose $150 million, what does that mean just as a kind of rule of thumb as far as how much cash we'd expect you to go through?

偉大的。我感謝有關今年流動性的評論。有什麼方法可以考慮公司的現金消耗與 EBITDA 數字的關係。因此，如果您將損失 1.5 億美元，作為我們期望您損失多少現金的經驗法則，這意味著什麼？

Generally, I would say that our cash burn largely approximates our EBITDA performance just with the important caveat that the working capital cycle for the noninsurance line of business is kind of disconnected from the P&L by several quarters. And so the performance of the noninsurance line of business in 2022, you'd expect to see the cash effect of that. We're expecting to see that in Q3 of 2023 when we expect to settle on the 2022 performance.

一般來說，我會說我們的現金消耗在很大程度上接近我們的 EBITDA 表現，但重要的是，非保險業務線的營運資金周期與損益表有幾個季度的脫節。因此，2022 年非保險業務線的表現，你會期望看到它的現金效應。我們預計將在 2023 年第三季度看到這一點，屆時我們將確定 2022 年的表現。

Okay. That makes sense. And then I guess maybe just going back to the comment about the MA rate and the coding dynamics. I understand you guys have a more integrated coding sophistication and that the physicians are actually doing the coding and actually intervening around the coding that they're documenting. But still would feel to me like any change around how much CMS is paying for coding, would still potentially at least have a disproportionate impact to you guys because you are good at documenting everything. You made it sound like if the industry was to see a 3% headwind from this that maybe Clover would see less. Am I interpreting that correctly? Or are you saying that even if it is a bigger impact to you wouldn't change the way that you run your business?

好的。這就說得通了。然後我想也許只是回到關於 MA 率和編碼動態的評論。我知道你們有更綜合的編碼技巧，而且醫生實際上在進行編碼，並且實際上乾預了他們正在記錄的編碼。但我仍然覺得，關於 CMS 為編碼支付多少費用的任何變化，仍然可能至少對你們產生不成比例的影響，因為你們擅長記錄一切。你聽起來好像如果這個行業要從中看到 3% 的逆風，那麼 Clover 可能會看到更少。我的解釋正確嗎？或者你是說即使它對你有更大的影響也不會改變你經營業務的方式？

Yes. Great question there. A slightly different version than either the ones you just said, but good query. I think what we're saying is we're certainly impacted because there's a lot of places where the rules have changed, ICD9 becomes ICD10, there's a lot of adjustments. However, we feel like overall, because we have Clover Assistant, we've always been focused on the diagnosis where there's also care management involved, which is the spirit of what CMS is doing. And so we feel preety good about that. If you look at some of the, I think, impacts that are just coming out from other plans, maybe risk-bearing providers, we think they are significantly more impacted than what is in the CMS projection, significantly more. And that's because there just has been somewhat of a prevalence of, we believe coding for diagnoses that may not impact the cost of care, just like CMS. So any provider or a plan, which is getting a disproportionate number of those diagnoses, would we believe will be significantly more impacted than what's inside the CMS projections. I think that's what we were intending to say.

是的。那裡有很好的問題。與您剛才所說的版本略有不同，但很好的查詢。我認為我們所說的是我們肯定會受到影響，因為有很多地方規則發生了變化，ICD9 變成了 ICD10，有很多調整。然而，我們總體感覺，因為我們有 Clover Assistant，我們一直專注於診斷，其中還涉及護理管理，這就是 CMS 所做的精神。所以我們對此感覺很好。我認為，如果您看一下其他計劃（可能是承擔風險的提供者）剛剛產生的影響，我們認為它們受到的影響要比 CMS 預測中的影響大得多，要大得多。這是因為我們認為診斷編碼可能不會影響護理成本，就像 CMS 一樣。因此，我們認為任何獲得不成比例的診斷的提供者或計劃受到的影響將比 CMS 預測中的影響大得多。我想這就是我們想要表達的意思。

Okay. But do you think you're more or less in the industry?

好的。但是你認為你在這個行業中的地位是多還是少？

We think we're better than -- we're going to be better than the industry. We obviously don't know what's in every other plan, but we do know sort of like when you look at plans who are heavily delegated downstream to some of these providers, if you're heavily dedicated to provider downstream, and we do very little delegation because we rely on Clover Assistant. A lot of those downstream delegated risk-bearing providers will be those likely who are doing more of that other kind of coding.

我們認為我們比 - 我們將比行業更好。我們顯然不知道其他所有計劃中的內容，但我們確實知道，當您查看將下游大量委託給其中一些提供商的計劃時，如果您非常專注於下游提供商，而我們做的很少代表團，因為我們依賴 Clover Assistant。許多下游委託承擔風險的提供者可能是那些可能正在做更多其他類型編碼的人。

So plans that are reliant on those kinds of services or those kinds of contracts we'll probably have to redo those contracts or we'll have some of those impacts flow upstream. So we do believe that we are less impacted, but we are not saying that we are not impacted. Because MA is a relative business, what that means is that as we all go out to bid, we are all looking at our future performance. We believe that, that relative performance and we invested growth into other plans will likely bear out such that we can be -- probably have a bit of an advantage going forward.

因此，依賴於此類服務或此類合同的計劃我們可能不得不重做這些合同，否則我們會將其中一些影響向上游流動。所以我們確實相信我們受到的影響較小，但我們並不是說我們沒有受到影響。因為 MA 是一個相對的業務，這意味著當我們都出去競標時，我們都在關注我們未來的表現。我們相信，相對錶現和我們在其他計劃中投資的增長可能會證明我們可以 - 可能在未來有一點優勢。

(Operator Instructions) And at this time, we have no further questions in queue. I would like to turn the call back over to Andrew Toy for any additional or closing remarks.

（操作員說明）此時，我們沒有其他問題在排隊。我想將電話轉回給 Andrew Toy，以徵求任何補充意見或結束意見。

Sure, thanks. So yes, to close out, I just want to reiterate that our 2023 will certainly shape up to be a very pivotal year for our business, and we're absolutely focused on delivering shareholder value as our priority. So for that value, we'll deliver this by executing on our path to profitability. We've said that many times. We're going to continue widening our technology mode. We just discussed why that's so critical and helps us be resilient against changes that are coming into the industry, and of course, by improving clinical outcomes for our members. So thank you, everyone, for joining us today. I look forward to updating you on our progression throughout the year.

當然，謝謝。所以，是的，結束時，我只想重申，我們的 2023 年肯定會成為我們業務非常關鍵的一年，我們絕對專注於將股東價值作為我們的首要任務。因此，為了實現這一價值，我們將通過執行我們的盈利之路來實現這一目標。我們已經說過很多次了。我們將繼續拓寬我們的技術模式。我們剛剛討論了為什麼這如此重要，並幫助我們抵禦行業即將發生的變化，當然，還可以改善我們會員的臨床結果。所以，謝謝大家今天加入我們。我期待著向您介紹我們全年的進展情況。

This concludes today's Clover Health's Fourth Quarter and Full Year 2022 Earnings Call and webcast. You may disconnect your line at this time, and have a wonderful day.

今天的 Clover Health 第四季度和 2022 年全年收益電話會議和網絡廣播到此結束。您可以在此時斷開您的線路，並度過美好的一天。