CVS Health Secures Signify Health in $8 Billion Deal to Accelerate Value-Based Care Platform

Strategic Acquisition Marks Major Expansion into Home-Based Healthcare Services

On September 5, 2022, CVS Health announced it has agreed to acquire Signify Health for $30.50 per share in an all-cash transaction valued at approximately $8 billion. This major move represents a pivotal step in CVS’s broader healthcare transformation strategy, specifically targeting the rapidly growing value-based care segment where financial incentives align with patient outcomes rather than service volume.

Signify Health brings substantial infrastructure to the table: a network of over 10,000 clinicians operating across all 50 states, proprietary analytics platforms, and established relationships with more than 50 health plan clients. The company’s clinicians—including physicians, nurse practitioners, and physician assistants—conduct in-home assessments to identify clinical and social needs, then connect patients to appropriate follow-up care and community resources.

Operational Scale and Market Impact

The scope of Signify’s reach is considerable. In 2022 alone, the company’s clinician network engaged with nearly 2.5 million unique members through both in-person and virtual home-based visits. A key differentiator: their clinicians spend approximately 2.5 times longer with patients in home settings compared to standard primary care office visits, allowing for more comprehensive health assessments and personalized care coordination.

Signify’s recent acquisition of Caravan Health in March 2022 further solidified its value-based care credentials. Caravan operates partnerships with over 170 providers participating in accountable care organizations (ACOs) serving Medicare beneficiaries, particularly focusing on underserved communities. The combined entity reported more than $138 million in gross savings during 2021, with projections suggesting Caravan would scale to serve ACOs representing over 700,000 people by 2023—a figure competitive with many standalone value-based care platforms.

Strategic Rationale and Integration Plans

CVS Health President and CEO Karen S. Lynch emphasized that this acquisition positions Signify as a critical component of CVS’s healthcare services expansion. “This acquisition will enhance our connection to consumers in the home and enables providers to better address patient needs,” Lynch stated, highlighting how the deal supports CVS’s vision to redefine the healthcare experience through multi-payor approach product development.

The integration creates a complementary relationship: Signify’s extensive clinician network and home-based care capabilities combine with CVS’s retail pharmacy footprint, insurance operations, and urgent care facilities to create a more integrated healthcare delivery model. This allows CVS to expand payor-agnostic solutions across diverse health plan and employer client bases while maintaining its existing market relationships.

Kyle Armbrester, CEO of Signify Health, noted the strategic fit: “CVS Health is the ideal partner given its focus on expanding access to health services and helping consumers navigate to optimal sites of care. We’re building an integrated experience supporting a more proactive, preventive and holistic approach to patient care.”

Transaction Framework and Timeline

CVS will fund the $30.50-per-share transaction using existing cash and available resources while maintaining its current credit ratings. The acquisition has received Board approval from both companies and requires shareholder approval from Signify Health stockholders, regulatory clearance, and satisfaction of customary closing conditions. Private equity funds affiliated with New Mountain Capital, which owns approximately 60% of Signify Health’s common stock, have committed to voting their shares in favor of the transaction.

The companies expect the deal to close in the first half of 2023. CVS’s Chief Financial Officer Shawn Guertin projected the acquisition would be “meaningfully accretive to earnings,” bolstering CVS’s confidence in achieving long-term adjusted earnings-per-share targets outlined at its December 2021 Investor Day.

Looking Forward

Following the transaction close, Signify Health will operate as part of CVS Health while maintaining its brand identity and leadership structure, with Armbrester continuing as CEO. The combined entity positions itself at the intersection of retail healthcare, insurance, and value-based care delivery—a convergence increasingly viewed as essential to healthcare’s ongoing transformation from fee-for-service to outcomes-based models.