7 things to know about the Signify Health acquisition by CVS
On September 5, CVS announced it has agreed to buy the home health company for nearly $8 billion
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On September 5, American healthcare giant CVS Health announced it has agreed to purchase Signify Health for nearly $8 billion.
Here are seven important things to know about the acquisition:
1/ Signify Health is a company providing home health services with “2.5 million unique members”. Its overall network comprises “more than 10,000 clinicians across all 50 states”.
2/ It is known as a tech-driven organization with advanced telehealth and analytics frameworks.
3/ The company operates under a value-based care model: “a healthcare delivery model in which providers, including hospitals and physicians, are paid based on patient health outcomes.”
4/ In February 2021, Signify raised $564 million in an IPO on the New York Stock Exchange.
5/ Pending regulatory approval, CVS Health will acquire Signify for $30.50 per share in cash. The transaction is expected to close in the first half of 2023.
6/ CVS leadership believes the addition of a power player in the home health field will modernize its service offering and play a critical role in the company’s growth strategy. It’s interesting to note that CVS also owns health insurance company Aetna since 2018. There could be some synergies there.
7/ It was reported that Amazon was among the bidders but ultimately lost the deal.
This story was first published on The PhilaVerse (my Substack newsletter).
