CVS Beats Amazon And UnitedHealth Group to Acquire Signify Health
CVS Health will acquire home care company Signify Health for $8 billion
CVS announced on Monday afternoon that the drugstore giant has “entered into a definitive agreement under which CVS Health will acquire Signify Health for $30.50 per share in cash, representing a total transaction value of approximately $8 billion.”
Signify Health is a pioneer in the fields of health risk assessments, value-based care, and provider enablement. Signify Health is improving patient engagement, patient outcomes, and care coordination for stakeholders across the health care system with a network of over 10,000 clinicians across all 50 states and a nationwide value-based provider network, as well as proprietary analytics and technology platforms. Signify Health's clinicians and providers can have an even greater impact by collaborating with CVS Health's unique asset collection and connecting patients to care when and where they need it.
"Signify Health will play a critical role in advancing our health care 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."
Signify Health's network of clinicians, physicians, nurse practitioners, and physician assistants conduct home visits to identify a patient's clinical and social needs and then connect them to appropriate follow-up care and community-based resources to provide a more connected, effective care experience. Signify Health's clinicians expect to connect with nearly 2.5 million unique members in the home in 2022, both in-person and virtually, and they spend 2.5 times as much time with a patient in the home as providers do in an average primary care office visit.
CVS's announcement comes less than a week after rival Walgreens Boots Alliance announced a $330 million majority stake investment in post-acute and home care company CareCentrix. According to Walgreens, the $330 million CareCentrix investment is for a 55% initial stake with the option to increase the stake in the future.
Such deals are further evidence that retail healthcare providers such as CVS, Walgreens, Walmart, and Amazon are looking to expand their outpatient services to meet the needs of American consumers.