PROVIDENCE – CVS Health Corp. on Thursday completed its $8 billion acquisition of home-health provider Signify Health.
Under the agreement CVS will pay $30.50 in cash per each outstanding Signify share, representing a total transaction value of approximately $8 billion.
“This transaction advances our value-based care strategy by enhancing our presence in the home,” said CVS Health CEO and President Karen S. Lynch. “Our expanded capabilities will bring us closer to the consumer as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”
The acquisition continues CVS’ effort to grow from its pharmacy-chain roots to other sectors of the health care industry. In 2018, the Woonsocket-based company purchased health insurer Aetna for $69 billion.
In February, CVS confirmed its purchase of primary care provider Oak Street Health for approximately $10.6 billion the same day it reported a $4.1 billion profit for 2022.
Oak Street Health employs approximately 600 primary care providers and has 169 medical centers across 21 states. It runs care centers mostly for lower- to middle-income people with Medicare Advantage plans. Those are privately run versions of the federal government’s program for people aged 65 and older.
Signify Health is a leading technology and services company, focused on provider enablement and bringing clinicians into the home to identify chronic conditions, close gaps in care, and address social determinants of health. Signify has a network of more than 10,000 clinicians in all 50 states who spend an average of 2.5 times longer with a member during home visits than an average visit with a primary care provider.
The combined company will work to improve care delivery capabilities, lower costs, improve levels of engagement and enable broad access to high-quality care, especially for Medicare Advantage customers, according to the release.
“Our mission has always been to build trusted relationships to make people healthier,” said Kyle Armbrester, who will continue to lead Signify Health. “As part of CVS Health, we will be uniquely positioned as a payor-agnostic business to support a more proactive, preventive and holistic approach to patient care.”
