Privia Health Group, Inc. (NASDAQ: PRVA) has recently announced the acquisition of an Accountable Care Organization (ACO) business from Evolent Health, Inc. (NYSE: EVH). This transaction will see Privia Health now serving approximately 1.5 million attributed lives in value-based care arrangements across commercial, Medicare, Medicare Advantage, and Medicaid. The ACO business being acquired cares for over 120,000 attributed lives through the Medicare Shared Savings Program (MSSP), as well as various other programs.
In terms of financials, Privia Health will pay $100 million in cash at closing, with the potential for an additional $13 million based on the final MSSP performance for 2025. The transaction is expected to close in the fourth quarter of 2025 and is anticipated to have a positive impact on adjusted EBITDA in 2026. The company plans to finance the acquisition with cash from its balance sheet.
This strategic move serves to increase the number of lives under value-based care in existing Privia states, while also adding lives in new states. Furthermore, it presents an opportunity for the ACO-participating providers to join Privia's medical groups, providing access to a full suite of services and technology platforms.
According to Sam Starbuck, SVP and President of Privia Care Partners at Privia Health, "The addition of Evolent Health’s ACO business to our existing national network of ACOs reaffirms Privia Health’s ability to replicate our highly differentiated and flexible operating model with new provider partners across the U.S." He emphasized the collaboration with physicians and their practices and the leveraging of population health and value-based care expertise to enhance the patient experience, improve outcomes, and lower costs.
With a presence in 15 states and the District of Columbia, Privia Health is positioning itself as one of the largest physician enablement companies in the United States. The company's mission is to transform healthcare delivery to achieve better outcomes, lower costs, and improve the health of communities and the well-being of providers. Today the company's shares have moved 2.53% to a price of $23.48. If you want to know more, read the company's complete 8-K report here.
