According to reports, CVS is interested in buying the healthcare platform Signify Health, which would enable the pharmacy company to diversify into home health services.
The Journal was informed by sources that CVS will shortly submit one of the early bids. Although Signify has not yet made a decision, other managed-care providers and private equity firms may compete with CVS.
If CVS were to purchase the company, it may assist the company to elevate its activities as a provider of medical services. The business has declared that it intends to do something in that region by the end of the year and aims to have a contract in place by then.
Signify offers in-home health evaluations and uses analytics and technology to assist health plans, employers, physician groups, and health systems with in-home care.
The healthcare platform was listed on the stock market in February of last year, but since then, the share price has fallen below the $24 IPO price. In order to focus on “more profitable” endeavors, the firm stated earlier this year that it will likely liquidate one of its divisions as a result of changes made to a government payment structure.
Discussed how CVS has made great strides toward new healthcare initiatives as other drugstore chains have been expanding their medical care offerings.
According to CVS CEO Karen Lynch, the company is looking to partner with a healthcare institution that has “a strong management team, a foundation in technology, and that can expand quickly.”
The report claims that because many of the company’s sites already have MinuteClinics installed, allowing customers to acquire various vaccines or services, this would enhance the company’s current product lines. Several stores have also provided mental health services.
