Ryan Halstead

Ryan Halstead asked about Privia Health's appetite for new business development, specifically how it weighs expansion into new markets versus building density in existing, recently entered markets, considering the challenging payer landscape and its impact on return on invested capital.

Answer

Parth Mehrotra (CEO, Privia Health Group) stated that Privia's capital position allows the luxury to pursue both new market expansion and density building, taking a portfolio approach. He explained that each market operates with its own P&L, and while new markets may initially lose money, a 5-10 year view is taken due to a deep understanding of unit economics and the overall business's strong performance. He emphasized that Privia knows what works and doesn't work across diverse healthcare geographies and payer dynamics, allowing them to invest with a long-term mindset.

Ryan Halstead asked about Privia Health's appetite for new business development, specifically how they prioritize return on investment between expanding into new markets versus building density in recently entered markets, considering the challenging payer landscape.

Answer

Parth Mehrotra, CEO of Privia Health Group, explained that Privia Health's strong capital position allows for both new market expansion and building density in existing markets, taking a portfolio approach. He noted that each market operates with its own P&L, and they can pursue in-market business development or new market entries. He emphasized a long-term, 5-10 year view for investments, especially in new states where initial losses are expected, due to a deep understanding of unit economics and a proven model across various geographies and payer dynamics. He highlighted Privia Health's fortunate position to invest with such a mindset.