Privia Health Reports $1.74 Billion Revenue, Net Income Declines 37.7%

Privia Health Group, Inc. reported a revenue of $1.74 billion for the fiscal year ending December 31, 2024, marking a 4.7% increase from $1.66 billion in 2023. The company achieved a net income of $14.4 million, a decrease of 37.7% compared to the previous year's net income of $23.1 million. Operating income also fell by 17.8% to $17.0 million from $20.6 million in 2023. The decline in profitability was attributed to increased operating expenses, which rose by 5.0% to $1.72 billion, driven by higher provider expenses and costs associated with platform operations.

In terms of operational metrics, Privia Health saw a significant increase in its provider base, with the number of implemented providers growing by 11.2% year-over-year, reaching a total of 4,789. The company also reported an increase in attributed lives, which rose by 12.1% to over 5.2 million patients, reflecting the effectiveness of its value-based care (VBC) arrangements. The company operates in 14 states and the District of Columbia, with a focus on expanding its presence in new markets, including a recent entry into Indiana through the acquisition of an independent group practice.

Strategically, Privia Health has been active in enhancing its service offerings and expanding its market reach. The company launched the Privia Care Partners model, which allows providers to access VBC solutions without changing electronic health record (EHR) systems. This model has facilitated the transition of several providers to the Privia Medical Group structure. Additionally, the company renegotiated certain capitated payer agreements to create more favorable contract structures, which are expected to enhance revenue visibility moving forward.

Looking ahead, Privia Health aims to continue its growth trajectory by increasing its provider base and expanding into new geographic markets. The company plans to invest in technology and operational improvements to enhance its service delivery and patient care capabilities. Despite the challenges posed by rising operational costs and competitive pressures, Privia Health remains focused on its long-term strategy of transitioning markets to value-based care models, which it believes will drive sustainable growth and improve healthcare outcomes.