Signify Health is celebrating the one year anniversary of its IPO with style. The value-based care platform is acquiring Caravan Health for a lofty total of $250M, with another $50M set aside for future performance incentives.
Upon closing, Signify will have one of the largest networks of providers engaged in risk-based contracts in the US, reaching over 3,200 health systems and covering more than 500k lives.
- Signify’s technology platform and nationwide physician network help payors and providers develop value-based care programs and shift health services to the home.
- Caravan enables accountable care organizations (ACOs) to excel in population health management and commercial risk arrangements, focusing primarily on medically underserved patients.
- Signify’s mobile physician network and at-home services are well-positioned to assist Caravan’s ACO partners with improving access to care by extending the resources of local care teams.
Why It Makes Sense
Combining Caravan’s population-level insights with Signify’s at-home services creates an “end-to-end suite” of value-based care enablement, allowing organizations to manage larger populations while improving care coordination beyond traditional clinical environments.
To top it off, Signify can also leverage its payor relationships and post-acquisition scale to improve provider participation in value-based care programs by increasing the percentage of patients in a provider’s panel that are covered by the arrangements.