Amazon Among Possible Buyers of Signify Health: Wall Street Journal
CVS Health and United Health Group are also reportedly among the bidders.
Amazon is among the companies vying to buy Signify Health, the Wall Street Journal reported this weekend. The selling price of the company, which provides management services for in-home healthcare to health insurers, providers and other healthcare sectors, could reach $8 billion, the newspaper reported.
CVS Health and health insurance giant UnitedHealth Group are also looking at buying Signify Health, according to multiple media accounts.
As the Journal reported, there is no guarantee that these deals will be completed. Signify’s (SGFY) stock price was trading at less a $12 dollar a share mid-June. The price started to climb at the beginning of this month and it was trading at $21.20 this morning
If, when and how Amazon might become a major presence in the healthcare sector has been talked and written about for years. Last month, the online retailer announced it was buying One Medical, an online concierge-like primary care business. It has also partnered with Ginger, an teletherapy company to provider mental health services to Amazon Care, its growing primary care business.
Related: Is Amazon Primed to Take on a Bigger Role in Healthcare in 2022?
Signify left its episodes of care services business in July. According to the health news website Healthcare Finance, the company said it was ending its involvement in the Centers for Medicare and Medicaid Services’ Bundled Payments for Care Improvement-Advanced program because CMS trend calculations lowered the target prices for episodes, thereby reducing the chances of shared savings.
The shuttering of that part of the business affected about 500 people, or about 20% of the company’s employees, a Signify Health spokesman said in an email to Managed Healthcare Executive® earlier this month. The spokesman said those people will either be reassign to other parts of the company or be “impacted by the reduction in (work)force.”
Signify, which is headquartered in Dallas, bought Caravan Health, an ACO company, in February for $250 million in cash and Signify stock, according to a joint announcement by both companies at the time.
“We are transitioning our focus from a stand-alone episodes offering to a total cost of care management solution,” said the spokesperson’s email to MHE.
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