Great Success Brings Growth, Prepares us for Challenges Ahead

By David Joyner, Chief Executive Officer

Hill Physicians Medical Group enjoyed a very successful 2025. The size of our physician network grew from 5,972 to 6,219, a growth of 4.1 percent for the year. Our total revenues also increased by 17 percent to $972million.

We demonstrated quality improvements including over 90th percentile performance in colorectal cancer screening, blood pressure control and Hemoglobin A1C control.

HPMG also received two Integrated Healthcare Association (IHA) Excellence Awards for our Sacramento and East Bay regions. This award is a true triple aim metric, measuring cost, quality and patient experience.

We ended the year with more than 434,000 total Hill members across all our product lines, Commercial HMO, Medicare Advantage, MediCal, PPO and the Medicare Shared Savings Program ACO, an increase of 8.8 percent.

We’ve also supported our independent doctors with recruiting support, forgivable loans, and deployment of our Epic EHR platform, HillChart.

Our diversified and strong relationships with 14 health plans are an important asset, and we now serve 14 counties with our recent entry into Marin and Sonoma counties.

We have a strong foundation as a high-performing, physician-owned medical group, governed by a board of 12 practicing physicians.

As we look forward to 2026, there are significant headwinds we will face, and it’s not just us, it’s the entire healthcare ecosystem.

Cuts in Affordable Care Act (ACA) subsidies will result in lower membership and increased average health risk of our patients. Other policy and funding impacts from H.R. 1 will also reduce MediCal membership over the next few years.

The imposition of the Office of Healthcare Affordability (OHCA) cost trend targets will limit increases in reimbursement.

The important Medicare Advantage line of business is facing increasing pressure from policy changes regarding coding and lower benchmarks, putting economic sustainability at risk.

We face these challenges with our eyes wide open. We know that ultimately, if we can demonstrate a lower total cost of care with high-quality and superior patient experience, we will realize a higher market share. We have a very diverse network of smart, entrepreneurial physicians, and by working closely together, we can continue to compete effectively.

My thanks to our hard-working teams, committees, board members, and medical directors. It is a privilege to lead such a great team.