CVS completes US$8B acquisition of Signify to enhance value-based care in the home

USA — CVS has completed its US$8 billion acquisition of Signify, marking a significant move in the retail pharmacy giant’s push to become a full-service healthcare provider.

CVS CEO Karen Lynch stated that the acquisition will help advance the company’s value-based care strategy by bolstering its presence in the home healthcare market.

The transaction will add 10,000 clinicians under CVS’s umbrella, along with new technology to improve care coordination for providers, plans, and employers.

CVS plans to work with Signify to focus on care delivery and engagement, particularly for Medicare Advantage customers.

Signify’s network of clinicians conducts in-home visits to assess patients’ medical and social needs, then connects them with any necessary follow-up services.

Signify, which currently has over 50 health plan clients, will continue operating as a payer-agnostic business within CVS once the deal closes.

CVS’s acquisition of Signify followed a bidding war for the home healthcare company, with Amazon and UnitedHealth reportedly among the other interested buyers.

CVS has been actively building out its primary care capabilities, including through the Signify acquisition and proposed acquisition of value-based primary care provider Oak Street Health, a primary care provider focused on delivering value-based care to Medicare Advantage patients announced last month.

With a network of more than 300 clinics, Oak Street Health is dedicated to providing personalized, comprehensive care to seniors, particularly those with complex medical needs.

CVS Health’s acquisition of Oak Street Health is part of the company’s broader effort to become a full-service healthcare provider, offering a range of services from insurance to prescription drugs to primary care.

By integrating Oak Street Health’s value-based care model into its existing portfolio, CVS Health aims to improve health outcomes for its patients while reducing overall healthcare costs.

The acquisition of Oak Street Health is also expected to help CVS Health compete more effectively with other major players in the healthcare industry, including UnitedHealth and Humana.

These companies have been aggressively expanding their presence in the Medicare Advantage market, which is growing rapidly as more seniors choose to enroll in the program.

With its acquisition of Oak Street Health, CVS Health is well-positioned to capture a larger share of the Medicare Advantage market and continue its push towards vertical integration in healthcare.

Despite regulatory scrutiny, including a second request from the Department of Justice in October, a number of significant and controversial healthcare mergers have recently closed, including UnitedHealth’s US$13 billion purchase of data analytics firm Change Healthcare.

The Signify acquisition is expected to play a critical role in CVS’s healthcare services strategy, growth in value-based care, and new product offerings for other payers.

As the industry continues to evolve, companies like CVS Health will need to remain agile and adapt quickly to changing market conditions in order to succeed.

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