CVS is reportedly looking to purchase healthcare platform Signify Health, which would allow the drugstore chain to expand into home health services.
Signify has been exploring “strategic alternatives,” which could include a sale, according to a report from the Wall Street Journal Sunday (Aug. 7) that cited unnamed sources.
The initial bids are coming due soon, and sources told the Journal CVS was about to submit one. However, CVS might face some competition from other managed-care providers and private equity firms, and Signify has not made any decisions yet.
If CVS did get the acquisition, it could help the company add more gravitas to its medical service provider operations — and the company said it wants to have a deal in place to do something in that field by the end of the year.
Signify’s services use analytics and tech to help health plans, employers, physician groups and health systems with in-home care, and the company also offers in-home health evaluations, per the report.
The healthcare platform went public in February of last year, but its shares have fallen below its initial $24 initial public offering (IPO) price. Earlier this year, the company said it would likely wind down one of its units due to changes to a government payment model, wanting to instead focus on “more profitable” businesses.
PYMNTS wrote about how CVS has made additional strides toward new healthcare initiatives, as more pharmacy retailers have been bolstering their medical care offerings.
CVS CEO Karen Lynch said recently that the company did want to work with a healthcare provider which had “a robust management team, background in tech, and that can grow quickly.”
The report noted this would strengthen the company’s current offerings, as it’s already added MinuteClinics to many of its stores, letting customers get various vaccines or services. Some stores have also added mental health services.
PARTNER WITH PYMNTS