After an extensive bidding war that featured the likes of Amazon and UnitedHealth throwing their financial weight around, CVS came out on top in its quest to acquire Texas-based technology and services company, Signify Health, and now the time has come to seal the deal. The $8 billion acquisition is said to be a milestone in the ever-advancing value-based care strategy at the heart of the CVS business plan, according to Chief Executive Officer Karen Lynch. Singify, which will maintain operations as a payer-agnostic business under the CVS umbrella upon closing of the transaction, will bring its own care delivery and patient engagement solutions to the table, particularly for Medicare Advantage customers.
CVS is making its purchase for $30.50 per share in cash, adding 10,000 clinicians to its roster as well as new tech that will help providers, plans, and employers alike to coordinate in the effort of improving in-home care. With Signify’s more than 50 health plan clients and its in-home services which has reached more than 2.5 million residences, the company will add a crucial referral stream to other CVS services.
As indicated by Lynch, CVS is pulling in companies for added value as it angled to morph into a full-service healthcare provider with a wide-reaching clinic network. The fleshing out of its already formidable primary care capabilities, which have been strengthened by a string of buyouts including primary care provider Oak Street Health, is the strategy at the center of the
long-gestating Singify deal.