The acquisition comes as CVS competitors Amazon and Walgreens are strengthening their positions in healthcare.
CVS Health is going into home health with its latest acquisition. The Woonsocket, RI-based company said it is acquiring Signify Health for about $8 billion or $30.50 a share. The deal is set to close in the first half of 2023.
Dallas, TX-based Signify Health is a specialist in Health Risk Assessments, value-based care, and provider enablement. The company has a network of more than 10,000 clinicians across all 50 states and a nationwide value-based provider network.
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. 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.
“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. “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 health care experience. In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payor approach.”
The deal comes as CVS’s competitors are rapidly expanding healthcare offerings. CNBC reported Amazon is acquiring One Medical membership-based chain of boutique doctor offices, for about $3.9 billion. CNBC also reported that Walgreens was building hundreds of doctor offices next to its drugstores through a partnership with VillageMD.