Lexology May 15, 2024
Providers must optimize the risk-based primary care model following the end of an era marked by M&A expansions and large capital expenditures.
As the pandemic began to wane, large primary care operators specializing in deploying value-based care within the Medicare Advantage (MA) ecosystem experienced a flurry of market excitement with large M&A deals splashing across headlines. Deals like One Medical (acquired by Amazon in 2022) and Oak Street Health (acquired by CVS in 2023) showed investor interest in providers who participate in MA partial- or full-risk-based contracts. These acquisitions reverberated across the industry as similar organizations saw a tremendous inflow of capital.
The euphoria, however, began to dissipate as the reality of operating in a highly inflationary environment (both labor...