Picture: Mario Tama/Getty Photos
CVS Well being has acquired Signify Well being, besting Amazon, UnitedHealth Group and others in buying the house well being platform.
CVS has entered a definitive settlement to accumulate Signify Well being for $30.50 per share in money, representing a complete transaction worth of roughly $8 billion, CVS announced on Monday.
Signify was reportedly on the market by public sale, with board members holding a gathering on Labor Day to debate the bids.
Kyle Armbrester, CEO of Signify Well being, mentioned in a assertion, “As we fastidiously thought of our long-term strategic choices, we decided that CVS Well being is the best associate, given its concentrate on increasing entry to well being providers and serving to shoppers navigate to one of the best websites of care.”
Following the shut of the transaction, Armbrester will proceed to steer Signify Well being as a part of CVS Well being, CVS mentioned.
Non-public fairness funds affiliated with New Mountain Capital, which owns roughly 60% of the frequent inventory of Signify Well being, have agreed to vote the shares they personal in favor of the transaction, topic to customary exceptions. CVS Well being and Signify Well being anticipate that the transaction will shut within the first half of 2023.
WHY THIS MATTERS
CVS Well being, which acquired Aetna in 2018, has been increasing into the supplier house via Minute Clinics and health screenings.
House well being is projected to develop as a result of an getting old inhabitants and fashions for residence care that expanded throughout the pandemic.
Walgreens Boots Alliance not too long ago expanded into the market via the acquisition of CareCentrix, a platform that coordinates care within the residence for plans, sufferers and suppliers.
Signify Well being provides a house well being platform and in-home evaluations. It has a community of greater than 10,000 clinicians throughout all 50 states and a nationwide value-based supplier community, mixed with proprietary analytics and know-how platforms, CVS mentioned, including the acquisition would enhance patient engagement, outcomes and care coordination.
“Signify Well being will play a crucial position in advancing our healthcare providers technique and offers us a platform to speed up our development in value-based care,” mentioned CVS Well being president and CEO, Karen S. Lynch. “This acquisition will improve our connection to shoppers within the residence and allows suppliers to higher tackle affected person wants as we execute our imaginative and prescient to redefine the healthcare expertise. As well as, this mixture will strengthen our potential to broaden and develop new product choices in a multi-payor method.”
THE LARGER TREND
Signify Well being’s community of clinicians, physicians, nurse practitioners and doctor assistants make the most of home-based visits to establish a affected person’s medical and social wants after which join them to acceptable follow-up care and community-based assets.
In 2022, Signify Well being’s clinicians count on to attach with almost 2.5 million members within the residence, each in-person and nearly, in accordance with CVS. On common they spend 2.5 instances longer with a affected person within the residence than suppliers spend within the common main care workplace go to, CVS mentioned.
Since acquiring Caravan Health in March, Signify Well being has additional expanded its concentrate on value-based care and population health as a associate to over 170 suppliers collaborating in accountable care organizations serving Medicare beneficiaries.
Signify Well being not too long ago introduced that its ACOs generated greater than $138 million in gross financial savings in 2021, and in 2023 the Caravan enterprise is predicted to serve ACOs representing over 700,000 individuals rivaling many standalone platforms, CVS mentioned.
As a part of CVS Well being, Signify Well being will proceed to advance its main care enablement capabilities, together with turnkey analytics, community and practice-improvement options, to assist suppliers transition to value-based reimbursement and enhance high quality of care.
ON THE RECORD
“It is a main step as we proceed to execute on our technique,” mentioned CVS Well being Government Vice President and Chief Monetary Officer Shawn Guertin. “We count on the acquisition to be meaningfully accretive to earnings and, because of this, are more and more assured we are able to obtain our long-term adjusted EPS objectives as outlined at our Investor Day in December 2021.”
Twitter: @SusanJMorse
E mail the author: SMorse@himss.org
