Evercore says Apollo deal ‘doesn’t sound like a big risk’ to Privia

Evercore ISI notes that Apollo Medical (AMEH) announced an exclusive value-based care, or VBC, partnership with BASS Medical Group, a California-based multi-specialty group with greater than 400 providers, which will transition over existing VBC arrangements into this new partnership. BMG has an existing arrangement with Privia Health (PRVA) that began in October 2021 when Privia acquired a majority interest in BASS MSO, the exclusive management services provider for BMG, the analyst also noted. While details of this arrangement remain unclear, BMG’s focus in specialty care likely limits exposure on VBC, says the analyst, who also notes that Privia has not yet established a California ACO in MSSP. The firm, which concludes that the new deal “doesn’t sound like a big risk” to Privia, has an Outperform rating and $26 price target on Privia shares.