Vitasora Health has expanded its partnership with The Physician Alliance Corporation from a pilot to a multi-year value-based care contract covering up to 15,000 Medicare patients, unlocking significant new revenue streams tied to patient outcomes.
- TPAC contract expanded from Arizona pilot to full value-based care agreement
- Agreement covers up to 15,000 Medicare lives with scalable growth potential
- Revenue includes guaranteed per member per month fees and performance bonuses
- TPAC aims to grow Medicare panel to 100,000 lives within three years
- Vitasora positioned as ASX first-mover in US value-based remote patient monitoring
From Pilot to Partnership, A Strategic Leap
Vitasora Health Limited (ASX, VHL) has announced a significant expansion of its US operations, transforming a successful fee-for-service pilot in Arizona into a multi-year, value-based care contract with The Physician Alliance Corporation (TPAC). This deal marks a pivotal step for Vitasora, extending its remote patient monitoring (RPM) services to cover up to 15,000 Medicare patients under a per member per month (PMPM) payment model linked to performance outcomes.
The agreement, effective from July 1, 2025, reflects TPAC’s confidence in Vitasora’s technology and execution capabilities. It includes a guaranteed PMPM care management fee, fee-for-service reimbursements for RPM at approximately US$70 per patient per month for about 30% of the patient base, and performance bonuses tied to quality savings measured by the Centers for Medicare & Medicaid Services (CMS). This structure aligns incentives for both parties to improve patient outcomes while managing costs.
Scaling with TPAC’s Rapid Growth
TPAC is on an aggressive growth trajectory, aiming to expand its Medicare patient panel to 100,000 lives within the next three years. Vitasora’s contract is designed to scale alongside this growth, offering substantial revenue upside as more patients come under joint management. The initial Arizona pilot demonstrated strong patient engagement and clinical outcomes, which helped secure this broader rollout.
Vitasora’s use of its proprietary Ceras clinical monitoring platform, enhanced by artificial intelligence, underpins the RPM services. This technology-driven approach supports chronic care management, transitions of care, and principle care management, all critical components in value-based healthcare delivery.
Market Position and Strategic Implications
By securing this expanded agreement, Vitasora cements its position as a first-mover among ASX-listed companies in the US value-based care market. The partnership with TPAC not only validates Vitasora’s business model but also showcases its ability to rapidly deploy complex healthcare solutions at scale.
As CMS continues to push for accountable, outcome-driven care models, Vitasora’s integrated RPM and data analytics capabilities position it well to capture further opportunities. The company is actively engaging with other primary care organizations and payors, building a pipeline of value-based care contracts that could mirror the TPAC deal’s success.
Looking Ahead
With the TPAC contract now expanded and a second major partnership already in place with Evolent and HIPA in Hawaii, Vitasora is poised for accelerated growth in the US healthcare market. The company’s “clinic-in-cloud” model and innovative medical devices like the FDA-approved wheezo® system further differentiate its offering.
Investors will be watching closely as Vitasora scales its operations and revenue streams in line with TPAC’s patient growth and CMS quality metrics. The next few quarters will be critical in demonstrating the sustainability and profitability of this value-based care model.
Bottom Line?
Vitasora’s expanded TPAC contract signals a scalable revenue model that could redefine its growth trajectory in US value-based healthcare.
Questions in the middle?
- How quickly will TPAC’s Medicare patient panel grow beyond the initial 15,000 lives?
- What impact will CMS regulatory changes have on Vitasora’s value-based care revenue streams?
- Can Vitasora replicate this contract model with other major US healthcare organizations?