Health

CVS Health drives healthcare strategy in $8 billion acquisition of Signify Health


Photo: Mario Tama / Getty Images

CVS Health acquired Signify Health, against Amazon, UnitedHealth Group and others in the acquisition of family health platform.

CVS entered into a definitive agreement to acquire Signify Health for $30.50 per share in cash, representing a total transaction value of approximately $8 billion, CVS said. announced in Monday.

Signify is said to have sold the auction, with board members holding a meeting on Labor Day to discuss the bid.

Kyle Armbrester, CEO of Signify Health, said in a statement, “As we carefully consider our long-term strategic options, we determined that CVS Health was the ideal partner, focusing on focused on expanding access to health services and helping consumers navigate the best care sites.”

Following the close of the transaction, Armbrester will continue to lead Signify Health as part of CVS Health, CVS said.

Private equity funds affiliated with New Mountain Capital, which owns about 60% of Signify Health’s common stock, have agreed to vote in favor of the shares they own for the transaction, subject to exceptions. usual rate. CVS Health and Signify Health predict that the transaction will close in the first half of 2023.

WHY IS THIS PROBLEM?

CVS Health, that Acquisition of Aetna in 2018, has been expanding into the field of service delivery through Minute Clinic and physical examination.

Home health is forecast to grow as the population ages and home care models have expanded during the pandemic.

Recent Walgreens Boots Alliance extend entered the market through the purchase of CareCentrix, a home care coordination platform for plans, patients, and providers.

Signify Health provides a home health platform and home assessments. It has a network of more than 10,000 clinicians across all 50 states and a nationwide network of value-based providers, combined with analysis and technology platform, CVS said, adding acquisitions will improve patient participationoutcomes and care coordination.

“Signify Health will play an important role in driving our healthcare strategy and provide us with a platform to accelerate our growth in the field of healthcare.” values,” said Karen S. Lynch, president and CEO of CVS Health. “This acquisition will strengthen our connection with consumers at home and enable providers to better address patient needs as we deliver on our vision of redefining the experience.” In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payer approach.”

TREND TO BIGGER

Signify Health’s network of physicians, physicians, nurses, and physician assistants uses home visits to identify patients’ clinical and social needs, then connects them to resources appropriate and community-based follow-up care.

By 2022, Signify Health clinicians are expected to connect with nearly 2.5 million members at home, both in person and virtual, according to CVS. CVS says they spend, on average, 2.5 times longer with a patient at home than providers spend on average primary care office visits.

Are from get Caravan Health in March, Signify Health further expanded its focus on value-based care and population health as a partner of over 170 participating suppliers responsible care organizations that serve Medicare beneficiaries.

Signify Health recently announced that their ACOs have generated over $138 million in total savings in 2021 and by 2023 the Caravan business is expected to serve ACOs representing over 700,000 who competes with many independent platforms, CVS said.

As part of CVS Health, Signify Health will continue to enhance its primary care support capabilities, including turnkey analytics, networks and practice improvement solutions, to help providers convert to value-based operations to return and improve quality of care.

ON PROFILE

“This is an important step forward as we continue to execute on our strategy,” said CVS Health Executive Vice President and Chief Financial Officer Shawn Guertin. “We expect the acquisition to have a positive impact on earnings, and as such, we are increasingly confident that we can meet our long-term adjusted EPS targets as outlined at Day One.” April 2021.”

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org



Source link

kignews

Kig News: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button