Dallas-based Signify Health announced Monday it will be acquired by CVS Health for $8 billion in a move that shows the drugstore giant’s interest in the home healthcare market.
Signify Health had previously considered acquisition deals with UnitedHealth and Amazon, according to Bloomberg, but ultimately chose Rhode Island-based CVS Health, which agreed to pay $30.50 per share for the company.
The acquisition, which has been approved by the boards of each company, is expected to close in the first half of 2023.
Founded in 2017, Signify Health has a nationwide network of more than 10,000 clinicians that use home-based health assessments to identify a patient’s needs and appropriate follow-up appointments. The Dallas health company went public last year.
This year, Signify Health’s clinicians expect to visit nearly 2.5 million patients at home, both in-person and virtually. On average, Signify’s home visits last 2.5 times longer than an in-person primary care appointment, according to the company.
In a statement, Signify Health said its clinicians and providers can “have an even greater impact by engaging with CVS Health’s unique collection of assets and connecting patients to care how and when they need it.”
“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,” Signify Health CEO Kyle Armbrester said 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.”
When the acquisition is finalized, Armbrester will continue to lead Signify Health as part of the CVS Health management team.
In March, Signify acquired Caravan Health, which partners with 170 providers that participate in accountable care organizations (ACOs) serving Medicare beneficiaries. Signify Health said its ACOs generated more than $138 million in gross health care savings last year.
As part of CVS Health, Signify said it “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,” CVS Health CEO Karen Lynch said 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.”