P3 Health Partners Announces Fourth Quarter and Full-Year 2022 Results Affirming 2023 guidance - introducing year-end medical margin guidance Anticipates reaching Adjusted EBITDA positive in early 2024 Management to Host

P3 Health Partners Announces

Fourth Quarter and Full-Year 2022 Results

Affirming 2023 guidance - introducing

year-end medical margin guidance

Anticipates reaching Adjusted EBITDA positive

Management to Host Conference Call and Webcast

March 31, 2023 at 8:30 AM ET

NV, March 31, 2023 (Business Wire) -- P3 Health Partners Inc. ("P3" or the "Company") (NASDAQ: PIII),

a patient-centered and physician-led population health management company, today announced its financial results for the fourth quarter

and full year ended December 31, 2022.

"Results for 2022 are a testament to the strength of the P3 team

and its commitment to improving clinical outcomes," said Dr. Sherif Abdou, CEO of P3 Health Partners. "We achieved revenue

growth and a network contribution improvement of 65% versus 2021. 2023 is an inflection point for P3, as we shift to a higher percentage

of persistent lives than new, reduce operating expenses, and provide a clear path to reach Adjusted EBITDA positive results in early 2024."

Fourth Quarter 2022 Financial Results

In order to provide a greater level of insight into our

model and comparability with other companies in our industry, we are introducing two additional non-GAAP financial metrics, medical margin

and network contribution. For more information regarding the Company's use of non-GAAP financial measures, please see the section

titled "Non-GAAP Financial Measures."

Full-Year 2022 Financial Results

"We announced today that we have secured

financing of approximately $90.0 million and believe this provides a solid path to profitability," said Dr. Sherif Abdou, CEO

of P3. "The new financing, along with our expected shift to a higher percentage of persistent lives, a focused reduction in

operating expenses, and measured and disciplined growth in 2023 make us confident that we will have the resources necessary to reach

Adjusted EBITDA profitability in early 2024."

Mary Tolan, Founder and Managing Partner of Chicago Pacific

Founders said, "The values and mission of P3 closely align with those of Chicago Pacific. We believe that value-based-care is the

future of healthcare and that P3 has the right model to bring high-quality services to patients while lowering the overall cost of care.

We are proud to partner with them on this journey."

have not reconciled guidance for Adjusted EBITDA to net income (loss), the most comparable GAAP measure, and have not provided forward-looking

guidance for net income (loss) because of the uncertainty around certain items that may impact net income (loss)

foregoing 2023 Outlook statement represents management's current estimate as of the date of this release. Actual results may differ materially

depending on a number of factors. Investors are urged to read the Cautionary Note Regarding Forward-Looking Statements included in this

release. Management does not assume any obligation to update these estimates.

Conference Call and Webcast

Management will host a conference call and webcast at 8:30 AM ET on

March 31st to provide a corporate and financial update.

EBITDA, Adjusted EBITDA per member, per month ("PMPM"), medical margin and network contribution are non-GAAP financial

measures. For reconciliations of these measures to the most directly comparable GAAP measures and more information regarding the Company's

use of non-GAAP financial measures, please see the section titled "Non-GAAP Financial Measures."

(2) See "Key Performance Metrics" for additional information on how the Company defines "at-risk Medicare

Company is not able to provide a quantitative reconciliation of guidance for Adjusted EBITDA loss and medical margin to net income (loss)

and operating loss the most directly comparable GAAP measures, respectively, and has not provided forward-looking guidance for net income

(loss) or operating loss because of the uncertainty around certain items that may impact net income (loss) or operating loss that are

not within our control or cannot be reasonably predicted without unreasonable effort. For more information regarding the non-GAAP financial

measures discussed in this press release, please see "Non-GAAP Financial Measures" below.

About P3 Health Partners

P3 Health Partners Inc. is a leading population health

management company committed to transforming healthcare by improving the lives of both patients and providers. Founded and led by physicians,

P3 has an expansive network of more than 2,800 affiliated primary care providers across the country. Our local teams of health care professionals

manage the care of thousands of patients in 15 counties across five states. P3 supports primary care providers with value-based care

coordination and administrative services that improve patient outcomes and lower costs. Through partnerships with these local providers,

the P3 care team creates an enhanced patient experience by navigating, coordinating, and integrating the patient's care within

of Financial Results

As a result of the business combination consummated on December 3, 2021, the Company was deemed to be the acquirer and successor for accounting

purposes, and P3 Health Group Holdings, LLC, which is the business conducted prior to the closing of the business combination, was deemed

to be the acquiree and accounting predecessor. The Company's financial results are distinguished between two distinct periods, the

period prior to the business combination closing date (the "Predecessor" period) and the period after the closing date through

December 31, 2022 (the "Successor" period), which reflects a new basis of accounting that is based on the fair value of net

assets acquired. The financial results for the quarter and year ended December 31, 2021, presented in this release combine these two periods.

In addition to the financial results prepared in accordance with U.S. Generally Accepted Accounting Principles

("GAAP"), this press release contains certain non-GAAP financial measures as defined by the SEC rules, including Adjusted EBITDA

and Adjusted EBITDA PMPM, medical margin and network contribution. EBITDA is defined as GAAP net income (loss) before (i) interest, (ii)

income taxes and (iii) depreciation and amortization. Adjusted EBITDA is defined as EBITDA, further Adjusted to exclude the effect of

certain expenses, such as (i) mark-to-market warrant gain/loss, (ii) premium deficiency reserves, (ii) equity-based compensation expense

and (vi) certain other items that we believe are not indicative of our core operating performances. Adjusted EBITDA PMPM is defined as

Adjusted EBITDA divided by the number of at-risk Medicare Advantage members each month divided by the number of months in the period.

We believe these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results

and trends and in comparing our financial measures with other similar companies. Medical margin represents the amount earned from capitation

revenue after medical claims expenses are deducted. Medical claims expenses represent costs incurred for medical services provided to

our members. As our platform grows and matures over time, we expect medical margin to increase in absolute dollars; however, medical

margin PMPM may vary as the percentage of new members brought onto our platform fluctuates. New membership added to the platform is typically

dilutive to medical margin PMPM. Furthermore, in light of COVID-19, we continue to evaluate the ultimate impact of the pandemic on medical

margin. We define network contribution as total operating revenue less the sum of: (i) medical claims expenses and (ii) other medical

expenses including physician compensation expense related to surplus sharing and bonuses and other direct medical expenses incurred to

improve care for our members. We believe this metric provides insight into the economics of the P3 Care Model, as it includes all medical

claims expense associated with our members' care as well as partner compensation and additional medical costs we incur as part

of our aligned partnership model. Other medical expenses are largely variable and proportionate to the level of surplus in each respective

market, among other cost factors. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures

determined in accordance with GAAP. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise

of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures.

In addition, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance,

all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. The tables at the end

of this press release present a reconciliation of Adjusted EBITDA to net income (loss) and Adjusted EBITDA PMPM to net income (loss)

PMPM, and medical margin and network contribution to operating income (loss) which are the most directly comparable financial measures

calculated in accordance with GAAP.

Key Performance Metrics

In addition to our GAAP and non-GAAP financial information, the Company

also monitors "at-risk members" to help us evaluate our business, identify trends affecting our business, formulate business

plans and make strategic decisions. At-risk membership represents the approximate number of Medicare Advantage members for whom we receive

a fixed PMPM fee under capitation arrangements as of the end of a particular period.

Cautionary Note Regarding Forward-Looking Statements

press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities

Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for

forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities

Exchange Act of 1934, as amended. Words such as "anticipate," "believe," "budget,"

"contemplate," "continue," "could," "envision," "estimate," "expect,"

"guidance," "indicate," "intend," "may," "might," "plan,"