Privia Health's Bold Bet on Cybersecurity: How Lance Berberian Could Turn the Tide in Healthcare Tech

The healthcare technology sector is at an inflection point. With data breaches escalating—exposing over 20 million patient records in the U.S. alone through mid-2025—and regulators tightening HIPAA requirements, the stakes for cybersecurity have never been higher. Into this fray steps Privia Health Group, a physician enablement leader, which has quietly positioned itself to capitalize on the crisis by appointing Lance V. Berberian to its board of directors. His expertise in cybersecurity and digital transformation could be the catalyst to transform Privia from a niche player into a healthcare tech powerhouse.

The Crisis in Healthcare Cybersecurity: A Regulatory and Operational Perfect Storm

The healthcare sector is the most targeted industry for cyberattacks, with breaches costing an average of $9.77 million per incident in 2024. The numbers are staggering: in 2025, hacking incidents surged to 84% of all breaches, while third-party vendor vulnerabilities led to a 445% increase in data exposure. Compounding this is a regulatory crackdown: the proposed HIPAA updates now mandate multifactor authentication (MFA), annual risk assessments, and 72-hour disaster recovery protocols by 2026.

The Healthcare Cybersecurity Act of 2025, if passed, would further amplify compliance demands, requiring real-time threat sharing and federal coordination between CISA and HHS. For healthcare providers and tech enablers like Privia, failure to adapt means fines, reputational damage, and loss of patient trust.

Berberian's Playbook: Why His Experience Matters

Lance Berberian's 30-year career at Labcorp—where he oversaw a 5,000-person IT team—gives him a unique lens to address these challenges. At Labcorp, he built systems to secure sensitive genomic and clinical data, managed mergers with cybersecurity in mind, and pioneered AI tools for diagnostics. Now on Privia's Audit Committee, his role is twofold:

Regulatory Compliance as a Competitive Moat Privia's Privia Platform, which integrates EHRs, telehealth, and AI-driven analytics for 5.2 million patients, must now meet HIPAA's 2025 mandates. Berberian's experience at Labcorp—which faced its own breaches—could fast-track Privia's documentation of technology assets, penetration testing, and vendor risk management.

Digitization Without Compromise The company's growth hinges on scaling its provider network while avoiding the cybersecurity pitfalls that plague competitors. Berberian's track record in zero-trust architectures and network segmentation could prevent Privia from becoming the next headline in the breach tally.

The Investment Case: A Play on Cybersecurity and Scale

Privia's stock has underperformed peers like Teladoc in recent quarters, but this appointment signals a strategic pivot. Consider the following:

• Market Opportunity: The U.S. healthcare IT market is projected to grow at 8% annually to $80 billion by 2027, with cybersecurity solutions alone accounting for 15% of that spend.
• Risk Mitigation: Berberian's leadership could reduce Privia's exposure to fines (HIPAA penalties can reach $2.1 million per violation annually).
• Partnership Potential: A robust cybersecurity posture could attract hospitals and insurers seeking compliant tech partners—unlocking new revenue streams.

Risks and Considerations

The path is not without hurdles. The Healthcare Cybersecurity Act's passage remains uncertain, and HIPAA deadlines could shift. Additionally, Privia's reliance on third-party vendors (exposed in the 2024 Episource breach) demands rigorous oversight.

Final Analysis: A Long-Term Bet on Resilience

Privia's move to bring Berberian on board is a masterstroke. In a sector where cybersecurity is no longer optional but existential, his expertise could turn Privia's platform into the gold standard for secure healthcare enablement. For investors, this is a long-term play: the company's valuation multiples are currently depressed, but its pivot aligns with a $3.5 trillion industry's urgent need for trust and technology.

Investment Advice: Consider a gradual position in PRVA ahead of HIPAA's 2026 deadlines, with a focus on quarterly updates on cybersecurity spend and compliance progress. Pair this with short positions in competitors lagging in digital transformation, such as legacy EHR vendors.

In healthcare, the next decade will belong to those who can innovate and defend. Privia's bet on Berberian suggests it's ready to lead.