Privia Health buys Cano Health's ACO business for $36M
What's the deal? Privia Health Group has acquired American Choice Healthcare MSSP (ACH), a wholly owned subsidiary of Cano Health, for roughly $36 million in cash. The accountable care organisation (ACO) will care for more than 36,000 attributed lives in the Medicare Shared Savings Program (MSSP) starting January 1, 2027.
What's the endgame? The deal scales Privia Care Partners, adding attributed lives in both existing and new states. It also opens a path for ACH providers to join Privia's medical groups and tap its full technology and service platform.
Why now? Privia says the transaction will have minimal impact on key metrics in 2026 but will positively contribute to attributed lives and adjusted EBITDA in 2027 — the same year the new ACO begins operating.
Privia Health is one of the largest physician enablement companies in the US, operating in 25 states and Washington, DC. It works with 1,300-plus physician practices, serves 6.1 million patients, and rewards 5,600-plus physicians and advanced practitioners for value-based care.
What they're saying: "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 Sam Starbuck, senior vice president and president of Privia Care Partners.
The signal: The acquisition reflects continued consolidation in US value-based care, as physician enablement firms buy scale in Medicare programs. For Cano Health, shedding the MSSP unit trims its portfolio; for Privia, it buys an immediate foothold in new states.
Read more: benzinga.com
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