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Privia Health has paid approximately $36 million in cash for Cano Health’s American Choice Healthcare Medicare business, adding an accountable care organization expected to cover more than 36,000 attributed patients beginning January 1, 2027.
The Arlington, Virginia-based company announced the completed acquisition Monday, saying it used cash already on its balance sheet. The deal is for American Choice Healthcare MSSP, LLC, a Cano subsidiary, not for Cano Health as a whole.
The acquisition expands Privia Care Partners, the company’s network for practices participating in value-based care. Rather than focusing only on the number of appointments or procedures billed, that approach aims to reward providers for managing patient care, improving outcomes and controlling total costs.
Medicare patients join the network in 2027
American Choice participates in the Medicare Shared Savings Program, known as MSSP. Its accountable care organization brings providers together around the care of a defined Medicare population. The more than 36,000 figure refers to patients attributed to that organization for the program, not a disclosed count of people who have bought new insurance policies from Privia.
The distinction between the acquisition date and the start of that patient population matters for the financial outlook. Privia said the purchase should have minimal effect on its key metrics in 2026. It expects a positive contribution to attributed lives and adjusted earnings before interest, taxes, depreciation and amortization in 2027. Those are company expectations, not results already earned.
Privia said the acquired business adds patients in states where it already operates as well as new states. The announcement did not identify those states individually or provide a forecast of revenue from the transaction.
A route into a broader physician network
The company also sees an opportunity for participating providers to join its medical groups and use a wider range of technology and support services. That would go beyond adding an accountable care organization: it could bring some practices into a broader operating relationship with Privia. The announcement describes that as an opportunity, not a commitment already made by every acquired practice.
Privia describes itself as a physician-enablement company, providing services and technology that help independent practices operate and take part in larger provider networks. It said it has a presence in 25 states and the District of Columbia, works with more than 1,300 physician practices, and supports over 5,600 physicians and advanced practitioners serving more than 6.1 million patients.
For practice owners, the immediate change is the organization behind the acquired Medicare shared-savings business. For Privia investors, the first expected financial benefit falls in 2027, when the attributed population begins its new program year. The company did not disclose a separate forecast for savings to Medicare or a guaranteed improvement in patient outcomes.
JBizNews Desk | Arlington, Virginia
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