CVS Beats Amazon And Rivals For Signify Health With Winning $8 Billion Bid

CVS Health will acquire home care company Signify Health for $8 billion as retail drugstores add more primary care and in-home medical services.

CVS apparently beat out other healthcare and retail companies including Amazon and UnitedHealth Group’s Optum medical care provider business that had reportedly been interested in Signify Health or at least looked into the potential of adding the home care company.

But CVS announced on Monday afternoon that the drugstore giant has “entered into a definitive agreement under which CVS Health will acquire Signify Health for $30.50 per share in cash, representing a total transaction value of approximately $8 billion.”

In buying Signify Health, CVS Health will add to its growing menu of healthcare services that includes more than 9,000 retail drugstores, 1,100 MinuteClinics staffed by nurse practitioners and the nation’s third largest health insurer, Aetna.

CVS called Signify Health a leader in “health risk assessments” with a network of more than 10,000 clinicians across all 50 states. “Signify Health’s network of clinicians —physicians, nurse practitioners and physician assistants — utilize home-based visits to identify a patient’s clinical and social needs, and then connect them to appropriate follow-up care and community-based resources in order for the patient to have a more connected, effective care experience,” CVS said in announcing the purchase.

The effort to add a home care provider was a key part of CVS Health’s plan to bolster its healthcare and technology platform this year.

“Signify Health will play a critical role in advancing our health care services strategy and gives us a platform to accelerate our growth in value-based care,” said CVS Health President and CEO Karen S. Lynch. “This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs as we execute our vision to redefine the health care experience. In addition, this combination will strengthen our ability to expand and develop new product offerings in a multi-payor approach.”

The much-anticipated announcement by CVS comes less than a week after rival Walgreens Boots Alliance announced it had completed its $330 million majority stake investment in post acute and home care company CareCentrix. The $330 million CareCentrix investment is for an initial 55% stake with an option to raise the stake in the future, Walgreens said.

Such deals are further signs that retail healthcare providers like CVS, Walgreens, Walmart and Amazon are looking to further serve the outpatient needs of U.S. consumers. In 2022, Signify Health clinicians “expect to connect with nearly 2.5 million unique members in the home, both in-person and virtually,” Signify and CVS said in a statement Monday.

“Signify Health’s…