After Signify Health CVS is still looking for new offers
CVS Health’s $8 billion deal to buy home healthcare provider Signify Health is its latest step on its transformation from retailer to healthcare business.
The 59-year-old company spans health insurance, pharmacy services, virtual care, consumer products and more. Signify Health adds physician and home healthcare options to CVS Health.
Based on medical services, the company plans to increase its adjusted profit by $900 million over the next two years. To do this, CVS Health will need to acquire a primary care provider, CFO Sean Gertin told analysts Tuesday during a call about the deal with Signify Health.
Signify Health represents CVS Health’s foray into the health risk assessment market, a regional competitor to Medicare Advantage in which UnitedHealthcare and Humana are investing and already well established.
“There is a lot of logic, starting with what we have right now, with health at home,” Gertin said. “But the strategy was never really about being disposable.”