CVS Health has landed its home health company.
The Woonsocket, Rhode Island-based CVS announced that it has entered into a definitive agreement to purchase Signify Health for “a total transaction value of approximately $8 billion.” The health care giant’s interest in Signify had been widely reported leading up to the deal.
Healthcare companies like CVS have been expanding beyond managing health and pharmacy benefits with acquisitions of doctors groups and surgical centers in recent years, Reuters reports. Amazon was also reportedly circling Signify as a potential acquisition.
Strategically, CVS believes that buying the home health business will advance its long-term strategy by providing a platform for growth in value-based care, according to President and CEO Karen S. Lynch.
Signify Health brings CVS, which runs pharmacies, pharmacy benefits and the Aetna insurance plans, a network of 10,000 clinicians who provide home-based assessments of patient health and social needs. Read more.
