Elevance Health Expands Services and Achieves Strong Financial Results
2024-01-30
Elevance Health, a leading healthcare company, recently held its fourth-quarter earnings conference call, featuring key executives including Gail Boudreaux, President and CEO, Mark Kaye, CFO, Peter Haytaian, President of Carelon, Morgan Kendrick, President of Commercial Health Benefits Business, and Felicia Norwood, President of Government Health Benefits Business. The call covered various topics related to the company's performance, strategic initiatives, and future outlook.
During the call, the participants discussed the progress made in the fourth quarter and throughout the year against strategic initiatives. They also provided an overview of the financial results and outlook for the company. It was mentioned that there will be references to certain non-GAAP measures, and reconciliations of these measures to the most directly comparable GAAP measures are available on the company's website.
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The company reported strong financial results, with GAAP diluted earnings per share of $3.63 for the fourth quarter and $25.22 for the full year of 2023. Adjusted diluted earnings per share were $5.62 for the fourth quarter and $33.14 for the full year.
Carelon Services, a subsidiary of Elevance Health, announced the acquisition of Paragon Healthcare, a company specializing in infusible and injectable therapies. This acquisition expands Carelon Services' capabilities in catering to consumers with complex and chronic needs.
Carelon Services currently offers a fast-growing specialty pharmacy business and an advanced home delivery service. The company has launched initiatives to improve the customer experience, including integrating AI support and natural language processing to enhance first call resolution and automating certain administrative processes using AI.
In terms of business performance, Carelon Services is achieving excellent retention and winning over 75% of employers who switch carriers in their national accounts business. In their individual business, Carelon Services has positioned their products thoughtfully to drive profitable and sustainable growth.
In the Medicaid business, Elevance Health launched a program to increase access to digital and virtual health tools for eligible Medicaid members. This program provides eligible members with a curated selection of tools via smartphone at no cost, along with training materials and ongoing guidance.
In the Medicare business, the company made investments to build a strong foundation for sustainable long-term growth. They expected flat membership growth in Medicare Advantage in 2024 and aimed to improve star ratings through their comprehensive, personalized customer service model called My Health Advocate. Elevance Health also received recognition for its approach to health equity, with the National Committee for Quality Assurance accrediting 20 of its Medicaid health plans.
Overall, Elevance Health is focused on sustained long-term growth, strategic investments, and improving performance in various segments of its business. The company aims to provide high-quality healthcare services to its members and drive profitability and sustainable growth in the coming years.