Alignment Healthcare has reported significant growth in its Medicare Advantage membership, exceeding its targets.
The company now serves 182,300 members, reflecting a growth rate of 57.7%.
However, despite this increase in membership, Alignment continues to face profitability challenges, with a net loss of $26 million for the third quarter.
The company's quarterly revenue reached $692.4 million.
CEO John Kao expressed optimism about the company's performance, as both adjusted gross profit and adjusted EBITDA have reached the high end of their guidance ranges for the second consecutive quarter.
Alignment Healthcare has raised its full-year guidance for both membership and revenue, projecting a range of 184,000 to 186,000 members.
However, concerns have been raised about the potential impact on fourth-quarter margins due to rapid membership growth.
Alignment asserts its capability to manage utilization effectively and aims to achieve profitability by January.
The company recently received a five-star rating from the Centers for Medicare and Medicaid Services for one of its Medicare Advantage Prescription Drug plans, highlighting its commitment to quality service.
Alignment currently serves 8.7 million members across six states and is well-positioned to capitalize on the growing demand for Medicare Advantage plans.