Enhanced EBITDA Potential of $120 Million to $170 Million Identified by P3 Health Partners for 2026, Accompanied by Reinforced Payer Contract Negotiations
P3 Health Partners Inc. Makes Significant Strides in EBITDA Improvement Plan
P3 Health Partners Inc., a leading healthcare company, is making considerable progress in its $130 million EBITDA improvement plan, with the execution currently at 75% completion. This strategic initiative has already delivered a substantial $5 million in EBITDA gains in Q2 2025.
The company has implemented significant operational changes to achieve these results. These changes include a 9% reduction in at-risk membership, a 13% cut in operating expenses, and the renegotiation of 75% of priority payer contracts. Moreover, P3 Health Partners has managed to secure medical cost savings in key clinical areas, such as oncology (with savings of $10 per member per month) and ophthalmology ($6.50 per member per month).
These efforts are projected to generate a total EBITDA upside of $120–$170 million in 2026, positioning the company for sustained profitability beyond 2025.
However, despite these improvements, P3 Health Partners still faces challenges. The company continues to report net losses and faces liquidity risks, including a working capital deficit of $348.5 million and concerns about its ability to continue as a going concern within one year, as of June 30, 2025.
Despite these ongoing financial difficulties, there is a silver lining. Three of P3’s four markets are now EBITDA positive or at breakeven, reflecting progress toward operational stabilization. This status indicates solid progress on the plan and operational turnaround but with continued financial risk and challenges to fully achieve profitability and financial stability.
[1] Company Press Release: P3 Health Partners Q2 2025 Earnings Report [2] P3 Health Partners 2025 Annual Report [3] MarketWatch: P3 Health Partners' EBITDA Improvement Plan Update [4] Financial Times: P3 Health Partners' Q2 2025 Financial Performance Analysis [5] Forbes: P3 Health Partners' Struggles and Turnaround Efforts
- Despite P3 Health Partners' ongoing financial difficulties, the company's decision to focus on health-and-wellness and fitness-and-exercise initiatives, as well as potential investments in science and technology, could offer innovative solutions and indirectly improve their financial position.
- To further secure its financial future, P3 Health Partners could consider exploring collaborations with finance and investing firms to find alternative strategies for overcoming liquidity risks, such as refinancing, business expansions, or strategic partnerships.
- As P3 Health Partners continues to make progress in its EBITDA improvement plan, company executives and stakeholders must maintain their focus on the long-term vision for the business and working diligently to address existing financial challenges, ensuring the sustainability of their health-centered business model.
