Alignment Healthcare has California roots, however its CEO, John Cao, is assured about planting seeds for development elsewhere. Mr. Ex
Alignment Healthcare has California roots, however its CEO, John Cao, is assured about planting seeds for development elsewhere.
Mr. Excessive weighed in on Alignment’s technique Jan. 14 through the J.P. Morgan 2026 Healthcare Convention in San Francisco. Simply days earlier than, the Medicare Benefit insurer highlighted 31% year-over-year development, ringing in 2026 with 275,300 members.
Nonetheless, quicker enrollment development from contracts — notably in California the place impartial follow associations can generally function “middlemen” in contracting, Mr. Cao mentioned — can invite threat. Mr. Cao mentioned these associations typically function round world capitation, the place doctor teams get a hard and fast fee per affected person per 30 days, which may function a friction level.
“We might have grown much more,” Mr. Cao mentioned. “We selected to not develop much more and take unhealthy contracts. We let anyone else take that. It’s OK. No free lunch.”
He emphasised excited about longer-term contracts, specializing in “sturdiness.”
“It doesn’t do any good if we develop by X quantity, and you bought a one-year deal,” he mentioned. “It’s short-term gratification.”
Whereas Mr. Cao mentioned he thinks California will stay the corporate’s “engine,” proportions will change as Alignment expands outward — and he’s simply positive with that.
“I don’t suppose it’s ‘both/or.’ I believe it’s gonna be ‘each/and,’” he mentioned of geographic shifts.
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