By OPEN MINDS Circle
CVS Health entered a definitive agreement to acquire Signify Health for about $8 billion. Private equity funds affiliated with New Mountain Capital, which owns approximately 60% of the common stock of Signify Health, have agreed to vote the shares they own in favor of the transaction. CVS Health and Signify Health anticipate that the transaction will close in the first half of 2023.
Following the close of the transaction, Kyle Armbrester will continue to lead Signify Health as part of CVS Health. Signify Health’s extensive network of over 50 health plan clients and their members will further augment CVS Health’s longstanding and leading offering of payor-agnostic solutions for a diverse set of health plan and employer clients.
Signify Health provides health risk assessments and value-based care. It has a network of more than 10,000 clinical professionals across all 50 states, a nationwide value-based provider organization network, proprietary analytics, and technology platforms. It focuses on improving patient engagement, patient outcomes and care coordination for stakeholders across the health care system. As part of CVS Health, Signify Health will continue to advance its extensive primary care enablement capabilities, including turnkey analytics, network, and practice improvement solutions, to help providers transition to value-based reimbursement and improve quality of care.
In 2022, Signify Health’s clinicians expect to connect with nearly 2.5 million unique members in the home, both in-person and virtually, and on average they spend 2.5 times longer with a patient in the home than providers spend in the average primary care office visit.
Since acquiring Caravan Health in March 2022, Signify Health has further expanded its focus on value-based care and population health. Caravan is already a partner to over 170 providers participating in accountable care organizations (ACOs) serving Medicare beneficiaries with a focus on improving the health of underserved communities. Signify Health recently announced that its ACOs generated more than $138 million in gross savings in 2021, and in 2023 the Caravan business is expected to serve ACOs representing over 700,000 people rivaling many standalone platforms.
CVS Health is a health solutions company. It operates retail pharmacies, retail clinics, and digital channels. Its health care professionals include more than 40,000 physicians, pharmacists, nurses, and nurse practitioners.
Contact information: T.J. Crawford, Media Contact, CVS Health, 1 CVS Drive, Woonsocket, Rhode Island 02895; Email: CrawfordT2@CVSHealth.com; Website: https://www.cvshealth.com/
Contact information: Lynn Shepherd, Vice President of Communications, Signify Health, 4055 Valley View Ln., Ste 400, Dallas, Texas 75244; 972-715-3800; Email: lshepherd@signifyhealth.com; Website: https://www.signifyhealth.com/