CVS Health announced that it has entered into a definitive agreement to acquire Signify Health for a total transaction value of around 8 billion dollars. The interest of the healthcare giant in Signify had been reported leading up to the deal.
According to Karen S. Lynch, president and CEO of CVS Health, strategically, CVS Health believes that purchasing the home health business will advance its long-term strategy by providing a new platform for growth in the value-based care.
Karen S. Lynch said this acquisition will enhance their connection to consumers in the home, and will also enable providers to better address patient needs as they execute their vision to redefine the healthcare experience. In addition, the deal will strengthen their ability to expand and develop new product offerings in a multiple payer approach.
Both the companies anticipate the transaction, which is already approved by respective board of directors of each party, to close in the first half of 2023. The 8 billion dollars price tag further illustrates that how valuable the home-based healthcare businesses have become in recent years.
The model of Signify Health is built around the health risk assessments, with provider enablement, and value-based care. Its businesses also includes over 10,000 clinicians across all the 50 states, and a country-wide provider network that Signify Health is pairing with proprietary analytics and technology.