APOLLO MEDICAL HOLDINGS, INC. – 10-Q – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management's Discussion and Analysis of Financial Condition and
Results of Operations should be read in conjunction with the unaudited
consolidated financial statements and the notes thereto included in Part I, Item
1, "Financial Statements" of this Quarterly Report on Form 10-Q. In addition,
reference is made to our audited consolidated financial statements and notes
thereto and related Management's Discussion and Analysis of Financial Condition
and Results of Operations included in our Annual Report on Form 10-K for the
year ended December 31, 2021, filed with the SEC on February 28, 2022.

Overview

Apollo Medical Holdings, Inc. is a leading physician-centric,
technology-powered, risk-bearing healthcare management company. Leveraging its
proprietary population health management and healthcare delivery platform,
ApolloMed operates an integrated, value-based healthcare model, which aims to
empower the providers in its network to deliver the highest quality of care to
its patients in a cost-effective manner. We, together with our affiliated
physician groups and consolidated entities, provide coordinated outcomes-based
medical care in a cost-effective manner.

The majority of our patients are covered by private or public insurance provided
through Medicare, Medicaid, and health maintenance organizations ("HMOs").
However, a small portion of our revenue comes from non-insured patients. We
provide care coordination services to each major constituent of the healthcare
delivery system, including patients, families, primary care physicians,
specialists, acute care hospitals, alternative sites of inpatient care,
physician groups, and health plans. Our physician network consists of primary
care physicians, specialist physicians, physician and specialist extenders, and
hospitalists. We operate primarily through Apollo Medical Holdings, Inc.
("ApolloMed") and the following subsidiaries: NMM, AMM, and APAACO and their
consolidated entities, including consolidated VIEs.

Led by a management team with several decades of experience, we are focused on
physicians providing high-quality medical care, population health management,
and care coordination for patients. As a result, we are well positioned to take
advantage of the shift in the U.S. healthcare industry toward providing
value-based and results-oriented healthcare with a focus on patient
satisfaction, high-quality care, and cost efficiency.

Through our accountable care organization and a network of IPAs with more than
9,800 contracted physicians, we are responsible for coordinating care for
approximately 1.2 million patients primarily in California as of June 30, 2022.

Key Financial Measures and Indicators

Operating Revenues

Our revenue, which is recorded in the period in which services are rendered and
earned, primarily consists of capitation revenue, risk pool settlements and
incentives, GPDC revenue, management fee income, and fee-for-services ("FFS")
revenue. The form of billing and related risk of collection for such services
may vary by type of revenue and the customer.

Operating Expenses

Our largest expenses consist of the cost of: (1) patient care paid to contracted
physicians; (2) information technology equipment and software and; (3) hiring
staff to provide management and administrative support services to our
affiliated physician groups, as further described in the following sections.
These services include payroll, benefits, physician practice billing, revenue
cycle services, physician practice management, administrative oversight, coding
services, and other consulting services.

                                       57

--------------------------------------------------------------------------------