P3 Health Partners Provides Second-Quarter and Year-to-Date 2022 Financial Results Increases 2022 Revenue Outlook Strong First-Half 2022 revenue growth of 84% compared to the First-Half 2021 At-risk Medicare Advantage me

Provides Second-Quarter and Year-to-Date 2022

Increases 2022 Revenue Outlook

NV, October 20, 2022 (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

second quarter and six months ended June 30, 2022.

"We are pleased to report a solid first half of 2022, with strong

revenue growth resulting from continued growth of our at-risk Medicare Advantage members. We recently reached an important milestone,

with over 100,000 at-risk Medicare Advantage patients in our network and are now seeing the strength of our model at work, with an average

of 11% annual reduction in cost per member per year for patients that we are honored and privileged to serve," said Dr. Sherif

Abdou, CEO of P3 Health Partners. "First-half revenue of $543 million, an increase of 84% from the first half of the prior year,

was driven by membership increases from our recent entry into California, expanded relationships with our existing payor partners, and

better than anticipated growth from the open and annual enrollment periods."

Dr. Abdou continued, "We are increasing our revenue guidance

for 2022, and we now anticipate revenue will range between $1.025 billion and $1.075 billion at the end of 2022, compared to $637 million

of revenue in 2021. The anticipated top-line increase is driven by our growth in our at-risk Medicare Advantage membership. Additionally,

we recently announced an expansion of our partnership with Humana to include southern Nevada. Humana represents one of the largest Medicare

Advantage payors in Nevada and is expected to be an important growth driver in 2023. We also recently acquired Pahrump Cardiology and

Family Practice in Nevada and a new clinic in Cochise County, Arizona, both of which are part of our disciplined, purposeful growth strategy."

Second-Quarter 2022 Financial Results

First-Half 2022 Financial Results

"Key Performance Metrics" for additional information on how the Company defines "at-risk Medicare Advantage members."

EBITDA and Adjusted EBITDA PMPM 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."

While the Company expects COVID-19 to impact our future results to

a lesser extent than our full-year 2021 results, P3 expects to incur additional COVID-19 related costs in full year 2022 given the volume

of positive cases and "breakthrough" cases (positive cases in vaccinated patients) present in the Company's markets.

COVID-19 disproportionately impacts older adults, especially those with chronic illnesses, which describes many of P3's patients.

The full extent to which COVID-19 will directly or indirectly impact P3's full year 2022 results of operations and financial condition

will depend on multiple factors, including, but not limited to new and emerging information from the impact of new variants of the virus.

Because of these factors, management may not be able to fully estimate the length or severity of the impact of the pandemic on P3's

business and results of operations.

The foregoing 2022 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

The Company is not able to provide a quantitative reconciliation of

guidance for Adjusted EBITDA loss or Adjusted EBITDA loss PMPM to net income (loss) and net income (loss) PMPM, the most directly comparable

GAAP measures, respectively, and has not provided forward-looking guidance for net income (loss) or net income (loss) PMPM, because of

the uncertainty around certain items that may impact net income (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.

Restatement of the Company's Historical Financial Statements

As disclosed in the Current Report on Form 8-K filed with the

Securities and Exchange Commission (the "SEC") on April 25, 2022, the Company concluded that the previously issued audited

consolidated financial statements for the years ended December 31, 2020, 2019 and 2018 and unaudited condensed consolidated financial

statements for the quarterly periods ended March 31, 2021, June 30, 2021, September 30, 2021, March 31, 2020, June 30,

2020 and September 30, 2020 required restatement. The restatement results from the Company's correction of its accounting for non-controlling

interests related to certain medical practices accounted for as variable interest entities. In the Company's judgment, the Company

should not have historically presented the net losses of these medical practices as net loss attributable to non-controlling interests.

The correction resulted in changes to net loss attributable to controlling interests, net loss attributable to non-controlling interests,

retained loss from controlling interests and retained loss from non-controlling interests. The restatement did not impact the Company's

EBITDA, cash from operations, or its cash position. The Company's Annual Report on Form 10-K for the year ended December 31,

2021 includes restated financial statements for the years ended December 31, 2020 and 2019, and restated selected information for

the quarterly periods ended March 31, 2021, June 30, 2021, September 30, 2021, March 31, 2020, June 30, 2020

and September 30, 2020.

Conference Call and Webcast

Management will host a conference call and webcast at 4:30 PM ET today

to provide a corporate and financial update.

About P3 Health Partners (NASDAQ: PIII):

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 2,600 affiliated primary

care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 18 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 the healthcare system. For more information, visit www.p3hp.org

Combination and Presentation 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. EBITDA is defined as GAAP net income (loss) before (i) interest expense, (ii) income taxes and (iii) depreciation

and amortization. Adjusted EBITDA is defined as EBITDA, further adjusted to add back the effect of certain expenses, such as (iv) mark-to-market

warrant expense, (v) premium deficiency reserves, (vi) stock-based compensation and (vii) transaction expenses. 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. 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, 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 per member per month 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 Section 27A of the Securities Act of 1933, as amended, Section 21E

of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. Words such as

"anticipate," "believe," "budget," "contemplate," "continue," "could," "envision,"

"estimate," "expect," "guidance," "indicate," "intend," "may," "might,"

"plan," "possibly," "potential," "predict," "probably," "pro-forma," "project,"