Elevance Health hopes to bring more providers into downside risk-sharing arrangements with a new primary care venture.
On an April 18 call with investors, Elevance Health executives touted a new joint venture with private-equity firm Clayton, Dubilier and Rice.
"In time, Elevance Health will have full ownership of what we expect will be a leading platform for value-based care delivery and physician enablement at scale," CEO Gail Boudreaux.
Here are five things to know about the venture:
1. Elevance expects its new primary care company to bring in $4 billion in revenue annually, CFO Mark Kaye told investors.
2. The primary care effort is payer-agnostic and will serve 1 million members. It will operate across Medicare, Medicaid and commercial markets.
3. The partnership will bring together two CD&R assets, digital platform Apree Health and Florida-based provider group Millennium Physician Group, with Elevance's Carelon health services arm. Peter Haytaian, president of Carelon, told investors Millennium Physician Group is a "leader in managing Medicare and commercial risk," and Apree Health provides " differentiating technology and navigation capabilities," especially in the commercial space.
4. The new primary care effort is aligned with Elevance's overall care delivery strategy, Ms. Boudreaux said. The company has focused its efforts on specialty and complex care in recent years.
"This will help us continue through having a focus on advanced primary care; it's still very much focused on our chronic patients and complex patients. We are still building specialty care enablement, which is another very important component of what we're trying to prime through," she said.
5. The financial terms of the deal were not disclosed. In an April 15 news release, Elevance Health said it did not expect the venture to have a material impact on its 2024 earnings.