CVS Health has completed an $8 billion acquisition of Signify Health, the companies announced Wednesday.
Even after becoming part of CVS Health, which also owns Aetna, Signify Health will continue to do business with other health insurers, said Kyle Armbrester, CEO of the service provider. The home health risk assessment service is independent and will remain head of the department. Agreement is final.
“This transaction advances our value-based care strategy by enhancing our presence in the home,” said Karen Lynch, President and CEO of CVS Health, in a statement. press report. “Our scalability will bring us closer to consumers as we continue to redefine how people access and experience care that is more streamlined, convenient, and connected.”
CVS Health announced it would acquire Signify Health in September. Although the Justice Department requested information about the deal next month, regulators took no action during the review period. That allowed the acquisition to proceed, Armbrester said in an interview.
CVS Health and the Department of Justice did not immediately respond to requests for interviews.
Armbrester said the company won’t lay off any workers as part of the deal and has hundreds of jobs to fill, particularly across technology, research and development, analytics and operations teams. . “We’re a big growth organization and I think that’s part of the excitement. We think CVS will help drive that,” he said.
Mr. Armbrester said Signify Health will integrate CVS pharmacy and retail services into its offerings to expand services and reduce costs through better medication compliance and fewer adverse drug interactions. than. The company’s physician support service will also help expand CVS’s partnerships with hospitals and health systems, he said.
Signify Health has not disclosed how it will interact with Chicago-based Oak Street Health if CVS Health’s $10.6 billion acquisition of the political care chain goes through.
The company is monitoring the Centers for Medicare and Medicaid Services’ proposed 2024 Medicare Advantage rate controversy, Armbrester said. He declined to speculate on how it might affect Signify Health.
Medicare Advantage’s stricter risk-adjusted data validation rules won’t be a factor because Signify Health is not covered by those regulations, he said. But there is a business opportunity, he said.
“We provide highly compliant third-party audits and we have handled RADV audits throughout our existence,” Armbrester said. “We would be a great partner to help the regulatory industry through that, no matter how it takes shape.”
