CVS Health has emerged victorious in what was reportedly a heated bidding war for Signify Health. The pharmacy chain beat out other rumored bidders including Amazon and UnitedHealthcare to acquire the healthcare platform in a deal valued at approximately $8 billion.
“Signify Health will play a critical role in advancing our healthcare services strategy and gives us a platform to accelerate our growth in value-based care,” said CVS Health President and CEO Karen S. Lynch in a statement. “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 healthcare experience. In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payor approach.”
The Signify Health platform leverages advanced analytics, technology and nationwide healthcare provider networks to power a range of value-based health and wellness payment programs. The company has a network of more than 10,000 clinicians across all 50 states and a nationwide value-based provider network that it leverages to offer care coordination services. Signify Health clinicians, physicians, nurse practitioners and physician assistants utilize home-based visits (both in person and virtual) to identify a patient’s clinical and social needs and then connect them to appropriate follow-up care and community-based resources. In 2022, Signify Health’s clinicians expect to connect with nearly 2.5 million unique members.
In March 2022, Signify Health acquired Caravan Health to expand its focus on value-based care. Caravan partners with more than 170 providers participating in accountable care organizations (ACOs) serving Medicare beneficiaries with a focus on improving the health of underserved communities. As part of CVS, Signify Health will continue to advance these primary care enablement capabilities, including turnkey analytics, network and practice improvement solutions.
The Signify Health acquisition is only the latest in CVS’s ongoing expansion into healthcare services, which has included:
- The acquisition of Aetna in 2017;
- Continued expansion of the HealthHub and MinuteClinic health and wellness centers; and
- A new focus on building out its mental health offerings.
The Signify Health acquisition has been approved by the boards of both companies and is expected to close in the first half of 2023. Following the completion of the transaction, current CEO Kyle Armbrester will continue to lead Signify Health as part of CVS Health.
“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,” said Armbrester in a statement. “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.”