P3 Expands Footprint Through Joint Venture With Commonwealth Primary Care ACO
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Key Terms
value-based caremedical
A health-care delivery approach that rewards providers for keeping patients healthy and improving outcomes instead of charging for each test or visit. For investors, it matters because it shifts where profits and losses come from—favoring providers and technologies that lower long-term costs, prevent complications, and demonstrate measurable results; think of it like paying a contractor only when the house stays sound, which changes who wins and loses financially.
acomedical
An ACO (Accountable Care Organization) is a group of doctors, hospitals and other health providers who voluntarily coordinate care for a defined population to improve quality and control costs; think of it as a neighborhood team managing a patient’s overall health instead of isolated visits. For investors, ACOs matter because they change how healthcare providers earn money—shifting incentives from volume of services to efficiency and outcomes, which can affect revenue, margins and risk exposure.
aco reachregulatory
ACO REACH is a Medicare program where groups of doctors, hospitals or health providers take joint responsibility for the cost and quality of care for a defined patient population, sharing financial gains or losses based on performance. For investors it matters because participation can shift a provider's revenue model from fee-for-service to performance-based payments, changing profit margins, cash flow predictability and exposure to patient-cost risk — like switching from hourly work to a results-based contract.
delegated riskfinancial
Delegated risk is an arrangement where one party hands responsibility for potential financial losses to another party that will manage and pay for those outcomes, like an insurer hiring a third party to handle claims and bear the cost. Investors care because delegation shifts who is exposed to losses and who earns fees or premiums: it can concentrate risk on a counterparty, affect profit volatility, and create operational or solvency dependencies—much like transferring the steering wheel to someone else changes who faces the danger if the car skids.
management services organizationtechnical
A management services organization (MSO) is a company that handles non-clinical, back-office functions for healthcare practices or other businesses—things like billing, staffing, IT, compliance and purchasing—so the licensed professionals can focus on core services. For investors, an MSO can improve efficiency, reduce costs and enable faster growth, but it also creates dependencies and regulatory or operational risks that can affect profitability and valuation.
management services agreementfinancial
A management services agreement is a contract where one party hires another to run specific business functions—like finance, operations, or marketing—on its behalf, similar to hiring an external manager to run part of a household. Investors care because the deal spells out fees, responsibilities, and decision-making authority, which affect a company’s costs, operational performance and governance, and can change future cash flow and risk.
net shared savingsfinancial
Net shared savings is the amount of money a health-care provider or group keeps after reducing patient-care costs below an agreed benchmark and then applying program rules and quality checks. Think of it like a split of a grocery-budget underspend: the payer and provider agree how much of the leftover money the provider can keep, but the final payout is adjusted for quality scores, administrative fees, and any required minimums, so investors watch it as a sign of sustainable cost control and potential bonus income.
fair market valuefinancial
The price a willing buyer and a willing seller would agree on for an asset or security when neither is under pressure and both have access to the same information. Think of it as the market’s neutral estimate of what something is worth, like the price two neighbors would settle on for a car after comparing similar listings. Investors care because fair market value guides buying and selling decisions, tax reporting, portfolio valuation, and how accurately company assets are reflected in financial statements.
New Partnership Strengthens Value-Based Care Platform for Primary Care Providers
HENDERSON, Nev.--(BUSINESS WIRE)--
P3 Health Partners (“P3”) (NASDAQ: PIII) and Commonwealth Primary Care ACO (Commonwealth) recently announced the formation of a Joint Venture Management Services Organization (MSO) for its ACO lines of business designed to expand value-based care and enhance support for primary care physicians across Arizona, California, Nevada, Oregon, and North Carolina.
This partnership brings together two highly aligned organizations with a shared belief in the power of primary care, including independent physicians, and a proven record of success in value-based models. The joint venture also expands P3’s footprint into Maricopa County, Arizona, strengthening the company’s presence in a key growth market. By combining P3’s strengths in Medicare Advantage, ACO, and delegated risk with Commonwealth’s successful ACO REACH program, the JV creates a unified operational platform to better serve physicians and beneficiaries.
“This joint venture positions us to strengthen our outcomes, economics, accelerate our growth strategy, and expand into a new market, with a like-minded organization,” saidDr. Aric Coffman, CEO of P3 Health Partners. “Commonwealth has built a highly respected ACO model, and by aligning our capabilities, we are creating a platform that delivers stronger performance, operational efficiency, and long-term stability for the providers and patients we collectively serve.”
Under the JV, P3 and Commonwealth ACO entities will remain independent but will share operations under a unified structure, with P3 serving as the majority owner.
“This partnership is centered on physicians—supporting them, empowering them, and ensuring they have what they need to continue delivering exceptional care,” said Lance Donkerbrook, CEO of Commonwealth. “Independent primary care practices are the heart of their communities. By bringing together the strengths of Commonwealth Primary Care ACO and P3, we are giving physicians stronger tools, better data, and the operational support needed to remain independent and thrive in value-based care.”
The JV will be governed by a joint board, with teams from both organizations collaborating to streamline operations, share best practices, and expand support for PCPs across the network.
About Commonwealth Primary Care ACO, LLC
Based in Phoenix, AZ Commonwealth Primary Care ACO is one of the nation’s few primary care founded, owned, operated and governed Accountable Care Organizations (ACO). Commonwealth operates as a management entity organizing the independent primary care physicians in a virtual group arrangement, as a provider of management services, and as an organizer of technology. Commonwealth exists to serve the continued success and independence of physicians, while helping manage the transition to value and risk based in an ever-changing healthcare environment. For more information, visit www.commonwealthaco.com.
P3 Health Partners Inc. is a leading population health management company committed to transforming healthcare by improving the lives of both patients and providers. Founded and led by physicians, P3 has an expansive network of more than 2,800 affiliated primary care providers across the country. Our local teams of health care professionals manage the care of thousands of patients in 24 counties across four states. P3 supports primary care providers with value-based care coordination and administrative services that improve patient outcomes and lower costs. Through partnerships with these local providers, the P3 care team creates an enhanced patient experience by navigating, coordinating, and integrating the patient’s care within the healthcare system. For more information, visit https://p3hp.org/ and follow us on LinkedIn and Facebook.
