CVS Health announced on September 5 that it will acquire Dallas-based Signify Health, a network of 10,000 clinicians across 50 states with more than 50 health plan clients, including CVS’s Aetna division, for $8 billion.
In order to further CVS’s healthcare services strategy, the acquisition of Signify Health adds clinicians that assess patients at home. The deal also provides CVS Health with a value-based care platform that connects payers to providers and providers to each other to lower costs and improve patient outcomes.
“This combination will strengthen our ability to expand and develop new product offerings in a multi-payer approach,” said Karen S. Lynch, CVS Health president and CEO, in the company’s announcement.
In 2022, Signify Health clinicians are expected to serve 2.5 million members at their homes, both in person and virtually.
In March, Signify Health acquired Caravan Health, which serves Medicare beneficiaries through accountable care organizations. In 2023, those ACOs will represent 700,000 patients.
“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,” said Kyle Armbrester, CEO of Signify Health, in the announcement. “We are both building an integrated experience that supports a more proactive, preventive and holistic approach to patient care.”
Armbrester will continue to lead Signify Health under CVS Health.
Signify Health is built on the idea that in-home assessments can result in addressing many of the social and environmental factors that have a direct impact on a person’s health and quality of life.
Signify Health providers spend 2.5 times longer with a patient in the home than providers in average primary care office visits, according to the company.
“How do you identify that someone is socially isolated, does not have an adequate supply of nutritious food, is experiencing domestic abuse or is not able to take their medications as directed by their doctor?,” wrote Dr. Marc Rothman, CMO of Signify Health, in a company blog post.
CVS had already expanded beyond managing 9,000 pharmacies and health benefits through the third largest payor in the country with 1,000 Minute Clinic locations and free health screenings, but the merger with Signify Health will now make it an outpatient provider in all 50 states.
“We’ve been very clear about what we were looking for in expanding our health services, either be it primary care, provider enablement or in the home, and Signify Health clearly checks off two boxes: into the home and provider enablement,” Lynch told Reuters, explaining that there are no overlapping functions between the companies.
Previously, CVS Health made a bid for One Medical, which was instead acquired by Amazon in July for $3.9 billion. Amazon, meanwhile, was reported a bidder for Signify Health.
“Big insurers and retailers like CVS and Walmart are trying very hard to provide a comprehensive range of healthcare services to consumers, starting with primary care,” said Paddy Padmanabhan, CEO of Damo Consulting, in a statement sent to Healthcare IT News. “The Signify deal coincides with the ongoing trend of healthcare shifting from the hospital to the home, and as technology plays a bigger role in remote care models.”
He added: “The acute shortage of clinicians and healthcare workers means that healthcare providers have to rely more on technology to keep patients at home and use analytics to intervene only as necessary.”
Andrea Fox is senior editor of Healthcare IT News.
Email: [email protected]
Healthcare IT News is a HIMSS publication.
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