CVS Health Monday said it will close its $8 billion acquisition of Signify Health later this week, bringing the drugstore giant in-home medical services from a national network of clinicians.
CVS “expects to complete its acquisition of Signify Health on or around March 29, 2023, subject to the satisfaction or waiver of the remaining customary closing conditions set forth in the merger agreement,” the company said.
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. Meanwhile, CVS has an array of outpatient expansions in the works including its proposed acquisition of Oak Street Health, an operator of senior health centers, and creating in-store HealthHubs with hundreds of new over-the-counter items and new healthcare services.
Signify Health has a national network of more than 10,000 clinicians across all 50 states. These physicians, nurse practitioners and physician assistants make visits into patient homes “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,” Signify and CVS have said.
The companies’ definitive agreement last September called for CVS to acquire Signify Health for $30.50 per share in cash for a total transaction value of approximately $8 billion. “Upon completion of the acquisition, Signify Health will continue to operate as a payor-agnostic business as part of CVS Health,” the companies announced Monday.
CVS acquisitions comes as retail rivals rapidly expand. Amazon this year entered the business of operating doctor practices with the closing of its acquisition of One Medical and Walgreens is opening hundreds of doctor-staffed clinics through its multi-billion-dollar investment in the primary care company VillageMD. Earlier this month, Walmart, which has 32 Walmart Health centers and is opening 17 more in Florida this year, said it will add 28 new locations in 2024, deepening its presence in Texas while opening new sites in Missouri and Arizona.
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,” CVS Health President and CEO Karen S. Lynch said last year.