On March 1, 2022 Signify Health, Inc. (NYSE: SGFY), a leading value-based healthcare platform that leverages advanced analytics, technology and nationwide healthcare provider networks, reported it has completed the acquisition of Caravan Health, a leader in enabling accountable care organizations (ACOs) to excel in population health management and value-based payment programs (Press release, Signify Health, MAR 1, 2022, View Source [SID1234609339]).
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The combination creates one of the largest national networks of providers engaged in value-based payment models. Signify Health will now enable a broader range of value-based and shared savings models from advanced primary care to specialty care bundles to total cost of care programs. The Company also will now be well-positioned to serve community hospitals, physician practices and clinics – entities who have been slower to adopt episodes of care and bundled payments due to lack of infrastructure to do so. With the completion of this acquisition, Signify Health now will support approximately $10 billion in total medical spend under management.
"Giving providers a multi-payor solution ensures that what they do for one patient can be done for all others, irrespective of coverage or individual characteristics," said Kyle Armbrester, CEO of Signify Health. "With the combined capabilities of Signify and Caravan, we will be able to give providers what they need – one platform to manage better health outcomes for all of their patients, from a simple condition or procedure to a complex combination and across multiple payors. I’m looking forward to working with our expanded team to unlock these opportunities and help our clients bring their value-based care strategies to scale – and improve health outcomes across a range of payment models."
Pursuant to the agreement previously announced on February 10, 2022, the transaction is valued at an initial purchase price of $250 million, consisting of $190 million in cash and $60 million in Signify Health common stock. The transaction also includes contingent additional payments of up to $50 million in cash based on the future performance of Caravan Health, which was backed by VSS Capital Partners. Signify Health intends to provide guidance for the combined company when it reports its financial results for the fourth quarter and full year 2021 results on March 2, 2022.