Astrana Health, Inc.
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Social Achievements
- Astrana contributed to several charitable organizations, including the Children’s Hospital of Los Angeles, American Heart Association, American Red Cross, and a blanket drive dedicated to supporting residents in our nursing homes.
- In 2023, Astrana’s Wellness and Prevention teams completed over 50% more telehealth and in-person annual visits compared to the prior year. Over 73% of the senior population received an Annual Wellness Visit (AWV), and over 85% visited their primary care provider at least once.
Environmental Challenges
- Challenging backdrop for the healthcare industry.
- Potential changes in laws, accounting principles, and regulations related to VIEs.
- Arrangements with VIEs are not as secure as direct ownership.
- Substantial portion of revenues derived in California.
- Complex legal structure may cause tax authorities to question tax filing status.
- Difficulties in managing growth.
- Significant losses under capitation contracts if expenses exceed revenues.
- Agreements with affiliated physician groups deemed invalid or terminated.
- Revenues and operations dependent on a limited number of key payers.
- Shift in payer mix.
- Agreements with hospitals and medical groups have limited durations and may be terminated without cause.
- Changes to healthcare law.
- Success of ACO REACH Model not guaranteed.
- Laws regulating the corporate practice of medicine.
- Intense regulation at federal, state, and local levels.
- Controls to reduce inpatient services may reduce revenues.
- Affiliated physician groups may not satisfy California regulations.
- Significant influence of principal stockholders, executive officers, and directors.
Mitigation Strategies
- Increased credit facility to $700.0 million.
- Restructuring transaction to spin-off real estate investments.
- Share repurchase.
- Business and asset acquisitions and partnerships.
- Continued investment in communities, technology, and providers.