Privia Health Reports Remarkable $233 Million Savings in 2024
Impressive Savings by Privia Health in Medicare Shared Savings Program
Privia Health Group, Inc. (NASDAQ: PRVA) has recently released groundbreaking results, announcing that their Accountable Care Organizations (ACOs) achieved over $233 million in shared savings during the latest performance year of the Medicare Shared Savings Program (MSSP). This achievement marks a significant 32% increase compared to the previous year's results, showcasing the effectiveness of their innovative healthcare approaches.
A Closer Look at Performance Metrics
The collective efforts of the nine ACOs in the Privia Quality Network (PQN) led to an impressive management of healthcare costs. With over $2.5 billion in benchmark spending and approximately 3,280 dedicated providers, they delivered high-value care to nearly 195,000 Medicare beneficiaries in the current performance year.
Driving Efficiency through Physician-Led Initiatives
Dr. Bartley Bryt, the Chief Medical Officer of Privia Health, highlighted the pivotal role of a physician-led model. By empowering physicians with the necessary tools and technology, the ACOs effectively managed healthcare spending while achieving superior health outcomes. This approach has been successful in controlling costs and delivering quality care to a substantial number of beneficiaries.
Key Highlights from Privia Quality Network's Performance
The achievements of the Privia Quality Network this performance year are significant:
- All nine ACOs collectively realized an aggregate savings rate of 9.3%.
- The Mid-Atlantic ACO led the way, boasting the highest savings rate at 10.6% among peer ACOs with over 40,000 attributed lives.
- Beneficiary expenditures were reported to be 8% lower than the median ACO and a striking 22% below traditional fee-for-service Medicare.
- Privia's inpatient facility spend was 13% less than the median ACO, and 28% lower compared to fee-for-service Medicare.
- Outpatient facility costs were found to be 23% below the median ACO and 35% below fee-for-service Medicare guidelines.
- Emergency department visit rates recorded a decrease of 17% compared to the median ACO, and 25% lower than standard fee-for-service Medicare metrics.
- The overall quality score achieved by the network reached an impressive level of 89%.
- Three of the nine ACOs exhibited over 50% year-over-year growth in earned savings per patient.
Growth in Managed Care and Financial Guidance
Privia Quality Network has continued to thrive, supporting an extensive network of physician practices and managing more than 1.38 million attributed lives across various Medicare programs and arrangements, including commercial and Medicaid. Since its inception in 2014, PQN has successfully generated over $1.5 billion in total shared savings across its initiatives.
As a positive response to the MSSP results, Privia's management has increased its Adjusted EBITDA guidance for the full year 2025, setting the range between $113 million and $116 million. As the year progresses, updates on overall guidance metrics will follow the third-quarter financial results.
About Privia Health and Its Mission
Privia Health is recognized as one of the leading physician enablement companies in the U.S., operating in 15 states and the District of Columbia. Their model fosters collaboration among primary care-focused medical groups, risk-bearing entities, and an effective governance structure. The comprehensive Privia Platform enhances over 1,300 practice locations while ensuring improved experiences for more than 5.3 million patients and incentivizing over 5,100 physicians.
The mission of Privia Health is to transform healthcare delivery, aiming for outcomes that lower costs and enhance the health of communities while focusing on the well-being of healthcare providers.
Frequently Asked Questions
What are the total savings Privia Health announced for 2024?
Privia Health reported a total of $233.1 million in savings through the Medicare Shared Savings Program for 2024.
Who is the Chief Medical Officer of Privia Health?
Dr. Bartley Bryt serves as the Chief Medical Officer of Privia Health, emphasizing the importance of a physician-led care model.
What is the aggregate savings rate achieved by Privia Quality Network's ACOs?
The aggregate savings rate achieved by all nine ACOs was 9.3% in the 2024 performance year.
How many beneficiaries did Privia Health serve in 2024?
Privia Health's ACOs provided care for nearly 195,000 Medicare beneficiaries in 2024.
What is the Adjusted EBITDA guidance for Privia Health in 2025?
Privia Health has increased its Adjusted EBITDA guidance for 2025 to a range between $113 million and $116 million.
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