Alignment Healthcare, Inc. (NASDAQ:ALHC) Q4 2023 Earnings Call Transcript

And that’s why I just keep saying we actually deliver the care. Not many other of our competitors deliver the care. They may have chair delivery divisions that’s very different than integrating all of that into the way we talk about it which is productizing, if you will, really good benefits, productized in the care model. It really is a different way of approaching the market.

Kevin Fischbeck: And then maybe just last question. It sounds like you’re saying that you think you’re teed-up pretty well for growth again in ’25. Is that going to look a lot like this year in so far, it’s going to be still largely California-centric because that’s what the disruption to the competitors is?

John Kao: Yes. Sorry, go ahead.

Kevin Fischbeck: I’d just say the second part of that would just be if it is coming in California, you mentioned balancing growth and profitability. Does that give you an opportunity to actually push the growth — sorry, push the profitability lever a little bit more than we’re used to? Or do you kind of feel like as long as you can take share — taking share is the right move as long as you’re trying to keep around breakeven?

John Kao: No, we’re not going to grow at all costs. We’re going to get to the profitability commitments that we’ve made. I think it’s super important, tying all that to cash flow, to our balance sheet. All of that is really poised for 2025 to be a really, really good year that I think. And if you just look at the differential on Stars and risk adjustment plus you look at the utilization, ability to manage utilization actually have the tools to manage it. It’s just a competitive advantage in this environment. I think the bid strategies, we’ll talk about that in the next several months but not right now. But I feel very comfortable with just kind of where we’re at in terms of 2025. That’s going to be a very good year. The other thing I would say is on ’25 is you’re going to have even more scale economies on our back office.

I think some of the investments that we’ve made in our back office systems like what we made in our kind of member services systems is going to pay off even more. I mean, so you can get more scale economies heading into 2025. Don’t know if we’ll get the same kind of growth. I’m not going to comment on that but I feel very, very good about the tailwinds.

Operator: Thank you. That concludes our Q&A session and today’s conference call. We want to thank you all for participating. You may all disconnect at this time.