Dallas-based Signify Well being Inc. is bolstering its house well being enterprise with a $250 million acquisition of an accountable care group builder.
The cash-and-stock deal for Caravan Well being unites two corporations centered on value-based fee fashions for all the things from superior major care to specialty care bundles to whole value of care contracts. The transaction additionally contains as much as $50 million in further funds based mostly on future monetary efficiency.
The deal creates a big nationwide community of physicians, nurse practitioners and licensed social care employees that may attain greater than 2 million houses this 12 months, Signify’s CEO Kyle Armbrester instructed Fierce Healthcare.
“What we’re constructing out goes to be one thing that truly lastly allows a well being system to tackle value-based care,” Armbrester instructed the publication.
Caravan’s know-how assists group hospitals, doctor practices and clinics in establishing accountable care and different business threat preparations. Signify Well being’s experience is bundled funds for Medicare and Medicaid packages and specialty care by means of a cellular community of 10,000 physicians and nurse practitioners. Collectively, the businesses stated they’ll handle $10 billion in whole medical spending.
Kansas Metropolis-based Caravan provides greater than 300 well being programs and federally certified well being facilities with greater than 10,000 major care suppliers to Signify’s community. Caravan’s suppliers collectively handle over 500,000 sufferers, most of whom battle to entry care, based on the businesses.
The enterprise mixture additionally helps the Facilities for Medicare & Medicaid Companies’ aim of bettering “well being fairness and [having] everybody in Medicare fee-for-service aligned to an accountable relationship by 2030,” Armbrester stated in a press release.
Caravan founder and chairwoman Lynn Barr will be part of Signify Well being as chief innovation officer when the deal closes, which is predicted by the top of March.
Caravan CEO Tim Gronniger will change into Signify Well being’s govt vp for accountable care. Caravan stated its accountable care organizations have saved Medicare $510 million since 2014.
Signify Well being went public a 12 months in the past, elevating just below $610 million.
Based in 2017, Signify splits its headquarters between Norwalk, Conn., the place a variety of its executives are based mostly, and Dallas, the place roughly half of its 2,100 workers work and dwell.
Its prospects are well being plans, governments, employers, well being programs and doctor teams, together with Humana, Optum, Aetna, Oak Road, Ascension and Oscar. It additionally serves 47 Medicare Benefit well being plans.