Physician enablement company Privia Health posted strong second quarter financials and announced the addition of a new market.
On Wednesday, the company signed an agreement with Walla Walla Clinic, a multispecialty physician practice in Washington. It’s the 13th state the company has entered and its fifth in the last 12 months, CEO Parth Mehrotra said during the company’s quarterly earnings call Thursday.
“When we went public, we said expect us to enter one state a year, and we’re clearly exceeding that,” Mehrotra said.
The Arlington, Virginia-based company posted net income in the second quarter of 2023 totaling $7.3 million or 6 cents per share compared with net loss of $10.5 million or 10 cents per share in the second quarter of 2022. Revenue increased from $335.5 million in 2022 to $413.4 million in 2023.
On Monday, the company added former UnitedHealth Group CEO David Wichmann to its board along with Pamela Kimmet, chief human resources officer of financial services firm Manulife. Mehrotra took over as CEO of Privia on July 1 after former CEO Shawn Morris stepped down from the role.
Despite the strong results, the company had to weather the impacts of its decision to pause a contract with a health insurer in the first quarter of 2023. The pause may have an effect on the company’s revenue the rest of the year.
“If we hadn’t had that contract paused, you can imply that we would have been closer to the mid to high end of our original guidance even on practice collections,” Mehrotra said. “The reason for pausing that contract was preserving the earnings power.”
Privia lost approximately 9,300 capitated lives because of this pause, which dropped its total number to just over 31,300 capitated lives. On a previous earnings call, Mehrotra did not disclose the health plan partner but blamed the pause on issues with the health plan’s technology services partner.
Privia is one of the few digital health companies to see its share price increase after going public in May 2021 at $23 per share. The stock price was trading Thursday around $26 per share.