Privia Health Expands National Value-Based Care Network Through $36 Million Acquisition of American Choice Healthcare’s MSSP Business
Privia Health Group, a technology-driven, national physician-enablement company focused on transforming healthcare delivery, has announced the acquisition of American Choice Healthcare MSSP, LLC (ACH), a wholly owned subsidiary of Cano Health. The acquisition represents another step in Privia Health’s strategy to expand its national presence in value-based care (VBC) and strengthen its network of accountable care organizations (ACOs) across the United States.
Through this transaction, Privia Health will add more than 36,000 attributed lives to its Medicare Shared Savings Program (MSSP) operations. The acquired organization is expected to begin operating within Privia’s national ACO network on January 1, 2027. The expansion will increase the company’s reach among Medicare beneficiaries while providing additional opportunities to work with physicians and healthcare practices focused on delivering coordinated, cost-effective care.
The acquisition strengthens Privia Care Partners, the company’s platform dedicated to supporting independent physicians and healthcare organizations participating in value-based care arrangements. By incorporating ACH into its existing operations, Privia Health expects to expand its presence in states where it already operates while also establishing a stronger footprint in new markets.
The transaction also provides an opportunity for Privia Health to broaden its relationships with independent physician practices. Through its established physician-enablement model, the company offers participating providers access to technology, population health management capabilities, operational support and other services designed to help them succeed in value-based care programs.
Privia Health Completes $36 Million Acquisition
As part of the agreement, Privia Health paid approximately $36 million at closing. The company funded the acquisition using available cash on its balance sheet, allowing it to complete the transaction without relying on additional financing disclosed in the announcement.
The financial structure reflects Privia Health’s investment in expanding its Medicare-focused operations and increasing the scale of its ACO network. The company expects the acquisition to have a minimal impact on its key financial and operational metrics during 2026.
However, the financial contribution is expected to become more meaningful in 2027, when ACH begins operating under Privia Health’s ownership. The company anticipates that the acquired business will positively contribute to both attributed lives and Adjusted EBITDA during that year.
The addition of more than 36,000 Medicare beneficiaries will increase Privia Care Partners’ scale and expand the number of patients supported through its value-based care infrastructure. A larger patient population can also create opportunities to improve operational efficiency, strengthen physician engagement and expand population health management initiatives.
The expected contribution to Adjusted EBITDA in 2027 is another important aspect of the transaction. As the acquired organization becomes integrated into Privia’s operating model, the company expects to benefit from the additional scale and opportunities to leverage its existing infrastructure.
Although the acquisition is not expected to materially change Privia Health’s key metrics in 2026, the company views the transaction as a strategic investment that can support its longer-term growth objectives.
Expanding Privia Care Partners Across New and Existing Markets
One of the primary objectives of the acquisition is to expand Privia Care Partners’ national presence. The addition of ACH will bring new attributed lives into the company’s ACO network, strengthening its position in markets where it already has physician relationships and extending its reach into additional states.
Privia Care Partners works with healthcare providers and physician organizations to help them participate in value-based care arrangements. These arrangements generally emphasize healthcare quality, patient outcomes and cost management rather than relying exclusively on traditional fee-for-service reimbursement models.
Under value-based care, healthcare providers are encouraged to focus on keeping patients healthy, identifying potential medical issues earlier and coordinating treatment across different healthcare settings. The approach can help reduce avoidable hospitalizations, unnecessary medical services and other costs while improving the overall patient experience.
The acquisition of ACH aligns with this approach by adding a substantial population of Medicare beneficiaries to Privia’s existing infrastructure.
Medicare beneficiaries often require coordinated healthcare services involving primary care physicians, specialists, hospitals and other providers. Managing these relationships effectively is an important part of successful ACO operations.
Through its technology platform and population health capabilities, Privia Health aims to support physicians in identifying patients who may require additional attention, monitoring healthcare utilization and coordinating appropriate services.
With more than 36,000 additional attributed lives expected to join its MSSP operations, Privia will have an expanded opportunity to apply these capabilities across a broader patient population.
The acquisition also reflects the company’s strategy of growing through partnerships and acquisitions involving physician organizations that can benefit from its operating model.
Opportunities for Physician Practices to Join Privia’s Platform
Beyond expanding its Medicare patient population, the acquisition provides Privia Health with an opportunity to establish new relationships with physicians and medical practices.
The company highlighted the potential for providers associated with ACH to join Privia’s Medical Groups and gain access to a broader range of services and technology.
This opportunity represents an important component of the transaction because physician participation is central to the success of value-based care arrangements.
Independent physicians frequently face operational challenges when managing administrative responsibilities, healthcare technology, patient engagement and the reporting requirements associated with alternative payment models.
Participating in value-based care programs can also require providers to develop new capabilities in population health management, quality measurement and care coordination.
Privia Health’s physician-enablement model is designed to address these challenges by providing practices with access to resources that support clinical and operational activities.
The company’s platform combines technology, data analytics, administrative services and population health expertise to help physicians manage patient populations more effectively.
For physicians associated with ACH, joining Privia’s Medical Groups could provide access to this broader infrastructure. It may also create opportunities to strengthen their participation in value-based care arrangements while maintaining a focus on patient relationships and clinical decision-making.
The company sees this potential provider integration as a source of synergies that could complement the financial and operational benefits of adding ACH’s existing MSSP business.
However, the opportunity for physicians to join Privia’s Medical Groups is separate from the immediate addition of attributed lives to the ACO network. The company has identified it as a potential area for further collaboration as the acquisition progresses.
Strengthening Population Health Management Capabilities
Population health management is an important part of Privia Health’s business strategy. It involves using healthcare data, clinical insights and coordinated care processes to improve health outcomes across defined patient populations.
For Medicare-focused ACOs, population health management can help physicians identify patients who may be at risk of developing complications or experiencing avoidable hospital visits.
Through its technology-enabled operating model, Privia Health supports providers with tools and resources intended to improve visibility into patient health needs and healthcare utilization.
These capabilities can help physicians monitor preventive care requirements, identify gaps in treatment and coordinate services for patients with complex medical needs.
The addition of ACH creates an opportunity to extend these capabilities to a larger population of Medicare beneficiaries.
As the acquired business becomes part of Privia’s national ACO network, the company expects to work with participating physicians and their practices to apply its experience in population health management and value-based care.
The broader network could also support collaboration among providers across different markets, allowing Privia to extend its operating model to additional physician organizations.
For patients, the objective is to support a more coordinated healthcare experience in which providers have the information and resources needed to make informed care decisions.
For physicians, access to established technology and operational support can help reduce some of the administrative and infrastructure challenges associated with participating in value-based care programs.
Leadership Highlights the Strategic Importance of the Acquisition
Commenting on the transaction, Sam Starbuck, Senior Vice President and President of Privia Care Partners, said the addition of ACH reinforces the company’s ability to expand its national ACO network and replicate its operating model with physician partners across the country.
“Adding ACH to our national network of ACOs underscores Privia Health’s ability to replicate our differentiated and flexible operating model with new practice partners across the country,” said Starbuck.
He also emphasized the company’s intention to collaborate with physicians and their practices to improve healthcare delivery through its population health management and value-based care expertise.
“We look forward to collaborating with these physicians and their practices, leveraging our population health and value-based care expertise to enhance the patient experience, improve outcomes, and lower costs,” he added.
Starbuck’s comments highlight the company’s focus on combining network expansion with physician collaboration. Rather than viewing the acquisition solely as an opportunity to increase the number of Medicare beneficiaries under its management, Privia Health is also looking to strengthen its relationships with providers and extend its physician-enablement services.
The company’s strategy places physicians at the center of its value-based care model. By providing practices with technology, operational resources and population health expertise, Privia aims to help providers navigate the changing healthcare reimbursement environment.
Medicare Shared Savings Program Remains an Important Growth Opportunity
The acquisition also highlights the continuing importance of the Medicare Shared Savings Program in the broader value-based care market.
The MSSP, administered by the Centers for Medicare & Medicaid Services (CMS), allows eligible ACOs to coordinate care for Medicare fee-for-service beneficiaries and participate in financial arrangements tied to healthcare quality and spending.
Under the program, participating ACOs are responsible for working with healthcare providers to improve care coordination, meet quality requirements and manage the total cost of care for their attributed Medicare beneficiaries.
Depending on their performance and participation arrangements, ACOs may qualify to receive a portion of the savings generated when healthcare spending is below established benchmarks and applicable quality requirements are met.
The program has become an important pathway for physician organizations and healthcare companies seeking to expand their involvement in value-based reimbursement models.
For companies such as Privia Health, increasing the number of attributed lives can create opportunities to extend population health management capabilities and improve the scale of their ACO operations.
The addition of ACH’s more than 36,000 attributed lives will further strengthen Privia’s participation in this market beginning in 2027.
The acquisition of American Choice Healthcare MSSP represents a strategic expansion of Privia Health’s national value-based care platform. With approximately $36 million invested at closing, the company is adding a substantial Medicare patient population while creating opportunities to expand physician relationships and extend its operating model into additional markets.
The transaction is expected to have minimal effects on Privia Health’s key metrics in 2026, with the more significant operational and financial contributions anticipated in 2027.
Beginning January 1, 2027, the ACH ACO is expected to care for more than 36,000 attributed lives through the Medicare Shared Savings Program under Privia Health’s ownership.
The company expects the acquisition to contribute positively to attributed lives and Adjusted EBITDA during 2027, while also providing potential synergies through physician participation in its Medical Groups.
As healthcare organizations continue moving toward models that emphasize quality, care coordination and cost efficiency, Privia Health is positioning its platform to support a larger network of physicians and Medicare beneficiaries.
By combining ACH’s existing MSSP business with its established technology, physician-enablement services and population health management capabilities, Privia Health aims to expand its national presence and further develop its value-based care operations.
The transaction demonstrates the company’s continued focus on scaling its ACO network, building relationships with independent physician practices and supporting a healthcare delivery model centered on improved patient experiences, better outcomes and more efficient healthcare spending.
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