CVS Health to Acquire Signify Health

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thehealthco

A definitive agreement between CVS Health and Signify Health states that CVS Health will buy Signify Health for $30.50 per share in cash, for a total transaction value of almost $8 billion.

In terms of value-based care, provider enablement, and health risk assessments, Signify Health is a pioneer. Signify Health is enhancing patient engagement, patient outcomes, and care coordination for stakeholders across the health care system with a network of more than 10,000 clinicians spanning all 50 states and a national value-based provider network, combined with its proprietary analytics and technology platforms. By interacting with CVS Health’s distinctive collection of assets and connecting patients to care how and when they need it, Signify Health’s clinicians and providers may have an even bigger effect.

“Signify Health will play a critical role in advancing our health care services strategy and gives us a platform to accelerate our growth in value-based care”, “This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience. In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payor approach.”

CVS Health President and CEO, Karen S. Lynch

In order to give patients a more connected, effective care experience, Signify Health’s network of clinicians, which includes doctors, nurse practitioners, and physician assistants, conduct home-based visits to identify patients’ clinical and social needs. They then connect patients to the proper follow-up care and community-based resources. Clinical staff at Signify Health anticipates visiting over 2.5 million distinct members in their homes in 2022, both physically and virtually. On average, they spend 2.5 times as long with each patient at home as they do in a typical primary care office visit.

Notably, Signify Health has increased its emphasis on value-based care and population health since acquiring Caravan Health in March 2022. With an emphasis on enhancing the health of underprivileged communities, Caravan is currently a partner to more than 170 physicians who take part in accountable care organisations (ACOs) that serve Medicare beneficiaries. In 2021, Signify Health’s ACOs produced gross savings of more than $138 million, and by 2023, the Caravan business is projected to service ACOs with over 700,000 patients, rivalling numerous independent platforms. To assist providers in making the transition to value-based compensation and raise the standard of care, Signify Health will continue to develop its broad primary care enablement capabilities, including turnkey analytics, network, and practise improvement solutions.

“Signify Health’s mission is to build trusted relationships to make people healthier by using actionable intelligence to understand what’s really impacting outcomes and cost today”, “As we carefully considered our long-term strategic options, we determined that CVS Health is the ideal partner, given its focus on expanding access to health services and helping consumers navigate to the best sites of care. We are both building an integrated experience that supports a more proactive, preventive and holistic approach to patient care, and I look forward to executing on our shared vision for the future of care delivery.”

Kyle Armbrester, CEO of Signify Health

 

“We formed Signify Health and recruited Kyle and the team to build a strategic innovation platform focused on leveraging technology as a catalyst for connecting key health care stakeholders to drive better patient outcomes”, “Together with CVS Health, Signify is uniquely positioned to continue to lead the transformation to value-based care. We look forward to the significant impact this transaction will make on health care for years to come.”

Matt Holt, Chairman of the Board, Signify Health and President of Private Equity and Managing Director at New Mountain Capital

Kyle Armbrester will continue to serve as the executive in charge of Signify Health after the deal is completed. CVS Health’s longstanding and premier payor-agnostic solution offering for a varied range of health plan and employer clients will be further enhanced by Signify Health’s extensive network of over 50 health plan clients and their members.

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