And the deal is “highly complementary to the third box,” meaning primary care, added Shawn Guertin, executive vice president and CFO.
CVS Health envisions a cohesive cycle in which patients are seen in the home and then guided as necessary to settings such as a MinuteClinic for basic follow-up care or a physician practice that participates in a Signify Health accountable care organization (ACO).
The deal “brings CVS closer to their goal of managing more lives through value-based care relationships,” J.P. Morgan analysts Lisa Gill and Calvin Sternick wrote in a research note that was shared with HFMA.
Branching into home healthcare
Signify Health will continue to operate as a distinct business, serving the members of more than 50 health plan clients.
Between in-home and virtual visits, Signify Health is projected to engage with 2.5 million patients this year, giving CVS “the opportunity to truly bend the cost curve in a value-based care environment” and “close gaps in care,” according to the J.P. Morgan analysis.
“This transaction is a significant step forward in our strategy to enhance our care delivery for consumers and to be able to meet their needs when and where they want care, and the home is increasingly part of that choice,” Lynch said.
Signify Health has a network of more than 10,000 clinicians spanning all 50 states, according to a news release. It has access to the homes of roughly 80 million Medicare Advantage (MA) and Medicaid managed care beneficiaries, according to J.P. Morgan.
Kyle Armbrester, CEO of Signify Health, who will remain in that role after the transaction is complete, said Signify Health’s clinicians spend 2.5 times longer with a patient in the home than physicians spend during the average primary care office visit.
“There’s a renaissance going on with the house call, and we’re really pushing it across the market and making a real impact in individuals’ lives,” Armbrester said during the investor call. “And we’re going to be doing that really at scale with this partnership with CVS.”
J.P. Morgan’s analysis notes that Signify’s in-home evaluations are geared toward patients who have been identified as high-risk, with the assessments aiding in the code capture needed for MA risk scoring. The assessments also are a vehicle for the creation of a patient record that encompasses social and behavioral needs, allowing for a holistic care plan to be developed.
Bolstering value-based care delivery
Early this year, Signify Health announced a $250 million acquisition of Caravan Health, which supports safety net and community health systems in providing value-based care. Caravan's ACOs are projected to encompass 700,000 beneficiaries through the Medicare Shared Savings Program in 2023.
“Caravan has a payer-agnostic EMR capability,” CVS Health’s Guertin said. “They have, and are on track to have, volume that rivals a lot of the stand-alone platforms.”