Privia Health Expands Value-Based Care Footprint with $100M Acquisition of Evolent Care Partners

Privia Health, a leading physician enablement company, has announced the acquisition of Evolent Health's accountable care organization (ACO) business, Evolent Care Partners, in a deal valued at up to $113 million. This strategic move aims to bolster Privia's presence in the value-based care landscape and increase its participation in Medicare's largest value-based program.

Deal Structure and Financial Impact

The transaction, expected to close in the fourth quarter of 2025, includes a $100 million cash payment upfront, with an additional $13 million contingent on the ACO's performance in the Medicare Shared Savings Program (MSSP) in 2025. Privia will finance the acquisition using cash on hand, and the company anticipates a positive contribution to its adjusted earnings in 2026.

Expansion of Value-Based Care Network

Through this acquisition, Privia Health will significantly expand its value-based care network:

• The deal adds more than 120,000 lives to Privia's portfolio across MSSP, various commercial programs, and Medicare Advantage.
• Privia's total attributed lives in value-based care arrangements will increase to 1.5 million across both new and existing states.
• Analysts estimate that approximately 70,000 to 80,000 of the newly acquired lives are in the MSSP, a key earnings contributor for Privia.

Strategic Benefits and Future Outlook

The acquisition presents several strategic advantages for Privia Health:

1. Increased MSSP Participation: Privia aims to leverage its expertise to improve the ACO's shared savings rate, which currently stands at 5.9%, compared to Privia's 9.3% across its existing ACOs.

2. Physician Network Expansion: The deal includes access to over 1,000 doctors affiliated with Evolent Care Partners, providing Privia with a substantial new customer base for its technology and services platform.

3. Geographic Growth: As a company with a footprint in 15 states and Washington, D.C., this acquisition aligns with Privia's ongoing expansion into new geographies.

For Evolent Health, the divestiture allows the company to refocus on its core specialty care management business and use the proceeds to reduce debt. The assets being sold represent approximately $10 million in adjusted earnings before taxes and other accounting adjustments for Evolent.

As value-based care continues to gain traction in the healthcare industry, this acquisition positions Privia Health to further capitalize on the shift away from fee-for-service models, potentially driving improved patient outcomes and cost savings in the Medicare program.