Alignment Healthcare Posts Loss Despite Medicare Advantage Growth

Alignment Healthcare, a fast-growing supplier of privatized Medicare advantages for seniors, Thursday reported a $47 million loss in its most up-to-date quarter at the same time as well being plan membership took off.

Alignment, which grew to become publicly-traded firm final yr within the standard and aggressive Medicare Benefit enterprise, stated well being plan membership as of Dec. 31, 2021, was up 26% to 86,100 yr over yr. That helped complete income rise 23% to $298.3 million within the fourth quarter of final yr in comparison with the year-ago interval.

However Alignment’s losses, that are widespread for startups and younger firms, continued to mount with the corporate reporting a fourth quarter web lack of $47.8 million in comparison with a lack of $32 million. Alignment additionally had increased than regular bills partially as a consequence of the price of the IPO, its fourth quarter report noted.

Alignment projected further development of well being plan subscribers for 2022, projecting enrollment for the yr will land within the vary of 97,300 and 99,000.

“In 2022, we’ll proceed to spend money on new markets and the replicability and scalability of our differentiated mannequin,” Alignment chief government John Kao stated. “We’ve constructed a stable basis for continued success, and I’m optimistic about our future alternatives and potential for development. This basis will allow us to attain our imaginative and prescient of adjusting well being care one individual at a time.”