CVS Health has completed its $8 billion acquisition of Signify Health, the companies announced Wednesday.
Even after becoming part of CVS Health, which also owns Aetna, Signify Health will continue to do business with other health insurance companies, said Kyle Armbrester, who was CEO of the standalone home health risk assessment provider and will remain atop the division now that the deal is final.
“This transaction advances our value-based care strategy by enhancing our presence in the home,” CVS Health President and CEO Karen Lynch said in a news release. “Our expanded capabilities will bring us closer to the consumer as we continue to redefine how people access and experience care that is more affordable, convenient and connected.”
CVS Health announced it would acquire Signify Health in September. Although the Justice Department requested information about the deal the following month, regulators did not take action during the review period. That allowed the acquisition to move forward, Armbrester said in an interview.
CVS Health and the Justice Department did not immediately respond to interview requests.
The company is not laying off any workers as part of the deal and has hundreds of jobs to fill, particularly on its technology, research and development, analytics, and operations teams, Armbrester said. "We're a big growth organization, and I think that's part of the excitement. We think CVS is going to help turbocharge that,” he said.
Signify Health will integrate CVS’ pharmacy and retail offerings into its services to expand its services and reduce costs through better medication adherence and fewer adverse drug interactions, Armbrester said. The company’s physician enablement service will also help extend CVS’ partnerships with hospitals and health systems, he said.
Signify Health has not disclosed how it will interact with Chicago-based Oak Street Health if CVS Health’s $10.6 billion acquisition of the primary care chain goes through.
The company is monitoring the controversy about the Centers for Medicare and Medicaid Services' proposed 2024 Medicare Advantage rates, Armbrester said. He declined to speculate on how it could affect Signify Health.
Tighter Medicare Advantage risk-adjustment data validation rules won't be a factor because Signify Health is not covered by those regulations, he said. But there is a business opportunity, he said.
“We offer a highly compliant third-party auditing service and we’ve dealt with RADV audits for our entire existence,” Armbrester said. “We will be a great partner to help the industry manage through that, regardless of how it takes shape.”