P3 Health Partners Provides Third-Quarter and Year-to-Date 2022 Financial Results Strong Third-Quarter YTD 2022 revenue growth of 59% compared to the Third-Quarter YTD 2021 At-risk Medicare Advantage members exceeded 101

Health Partners Provides Third-Quarter and Year-to-Date 2022 Financial Results

2022 4:15 PM Eastern Standard Time

Nev.--(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 third quarter and nine months ended

pleased to report another strong quarter of growth, with 75% revenue gains year-to-date compared to the prior year period," said

Dr. Sherif Abdou, CEO of P3 Health Partners. "This growth demonstrates the power of our healthcare model, as we enable the

payors, patients, and providers to collaborate on the singular mission of better patient outcomes."

2022 Financial Results

Year-to-Date 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."

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.

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 these estimates.

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.

of the Company's Historical Financial Statements

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.

will host a conference call and webcast at 4:30 PM ET today to provide a corporate and financial update.

Health Partners (NASDAQ: PIII):

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 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 and

Combination and Presentation of Financial Results

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.

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

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.

Note Regarding Forward-Looking Statements

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," "seek," "should," "target," or "will," or the negative or other variations

thereof, and similar words or phrases or comparable terminology, are intended to identify forward-looking statements. These forward-looking

statements address various matters, including the Company's future expected growth strategy and operating performance; current

expectations regarding the COVID-19 pandemic; the Company's outlook as to revenue, at-risk Medicare Advantage membership, Adjusted

EBITDA loss and Adjusted EBITDA loss PMPM for the full-year 2022; and our expectation to achieve Adjusted EBITDA profitability in 2024,

all of which reflect the Company's expectations based upon currently available information and data. Because such statements are

based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially

from those projected or estimated and you are cautioned not to place undue reliance on these forward-looking statements. These forward-looking

statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties,

assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes

to differ materially from those discussed in the forward-looking statements.

and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking

statements include, among others, changes in market or industry conditions, regulatory environment, competitive conditions, and receptivity

to our services; our ability to continue our growth and expand our operations; changes in laws and regulations applicable to our business;

our ability to maintain our relationships with health plans and other key payers; the impact of COVID-19, including the impact of new

variants of the virus, or another pandemic, epidemic or outbreak of infectious disease on our business and results of operation; increased

labor costs; our ability to recruit and retain qualified team members and independent physicians; and other factors discussed in Part I, Item

1A. "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021,