By Mark Messick
They just grow up so quickly.. Today we’re looking at Zion Healthshare.,,,,,
- Started in November of 2018, here are the numbers for their first 5 years in business.
- 2019: $1.4MM in revenue, 50.9% MLR, 25.8% admin expenses, 23.2% profit.
- 2020: $9.3MM in revenue, 31.8% MLR, 16.1% admin expenses, 52% profit
- 2021: $30.3MM in revenue, 61.6% MLR, 10.7% admin expenses, 27.5% profit
- 2022: $54MM in revenue, 80.9% MLR, 16.7% admin expenses, 2.3% profit
- 2023: $75MM in revenue, 83.7% MLR, 10.8% admin expenses, 5.4% profit
- Average MLR: 61.8%
- Average admin expenses: 16%
- Average profit: 22%
- Average assets as percentage of expenses: 50.9%
- Average cash as percentage of expenses: 22.38%
- Average highest paid executive: $142,324
A few of my thoughts:
- MLR started low, is trending higher over time. Probably smart as they build up a cushion and dial in their models.
- Admin expenses seem way high. CHM averages 5.8% compared to Zion’s 16%.
- hey do have a much higher assets/cash to expenses ratio than CHM. That means more of a cushion if they have unexpectedly high claims. (I know, I know, they don’t call them claims.)
- The numbers jump so much from year to year as they’ve been experiencing such rapid growth, it’ll be interesting to see if MLR/admin/profit stabilize over the next few years.
What do y’all think of these numbers? Would you trust your money with Zion Healthshare?
