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CVS Health To Acquire Signify Health In Deal Valued At $8 Billion

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On September 5, 2022, CVS Health entered a definitive agreement to acquire Signify Health for about $8 billion. The companies anticipate that the transaction will close in the first half of 2023. 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 anticipates that the acquisition will advance its long-term strategy by providing a platform to expand value-based care and connect CVS Health consumers, especially those receiving home-based services, to care how and when needed.

Signify Health provides home-based 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 consumer engagement, consumer outcomes and care coordination for stakeholders across the health care system. In 2022, Signify Health’s clinical professionals expect to connect with nearly 2.5 million unique members in the home, both in-person and virtually. On average, the virtual visits conducted by Signal Health professionals last twice as long as an average primary care office visit.

Following the close of the transaction, Kyle Armbrester will continue to lead Signify Health as part of CVS Health. As part of CVS Health, Signify Health will continue to advance its extensive primary care enablement capabilities, including analytics, network, and practice improvement solutions, to help provider organizations transition to value-based reimbursement and improve quality of care. 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 has offices in Austin and Dallas, Texas; Kansas City, Missouri; New York, New York; Norwalk, Connecticut; Oklahoma City, Oklahoma; and Rapid City, South Dakota.

Signify Health was formed as the result of a merger of CenseoHealth and Advance Health. It launched operations in December 2017 to provide in-home health and social needs assessments for health plans, governments, employer-sponsored health plans, health systems, and physician groups. In August 2019, Signify Health announced plans to combine with Remedy Partners. Both were portfolio companies of New Mountain Capital LLC. In February 2021, Signify Health announced plans for an initial public offering (IPO) to become publicly traded. In March 2022, Signify Health acquired Caravan Health to expand its focus on value-based care and population health.

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 more than 9,000 retail pharmacies, more than 1,100 walk-in medical clinics, a pharmacy benefit management (PBM) solution, and digital retail channels. Its health care professionals include more than 40,000 physicians, pharmacists, nurses, and nurse practitioners. CVS Health owns the health insurer Aetna, which has 24.4 million medical benefit members. The CVS Health PBM serves about 110 million individuals.

OPEN MINDS last reported on CVS in “CVS Health Launches New Virtual Primary Care Solution, With On-Demand Mental Health Services,” which published on June 7, 2022. The article is available at https://openminds.com/market-intelligence/news/cvs-health-launches-new-virtual-primary-care-solution-on-single-digital-platform/.

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