Dallas, Texas-based Signify Health, a value-based healthcare platform, has completed its acquisition of Kansas City, Mo.-based Caravan Health, a company that works with accountable care organizations in population health management and value-based payment programs.
The deal creates one of the biggest national networks of providers with value-based payment models, Signify said in a March 1 news release.
The initial purchase of Caravan is $250 million, with $190 million in cash and $60 million in Signify Health common stock. There will also be additional $50 million payments based on the future performance of Caravan.
"With the combined capabilities of Signify and Caravan, we will be able to give providers what they need — one platform to manage better health outcomes for all of their patients, from a simple condition or procedure to a complex combination and across multiple payers," Signify CEO Kyle Armbrester said in the release. "I'm looking forward to working with our expanded team to unlock these opportunities and help our clients bring their value-based care strategies to scale — and improve health outcomes across a range of payment models."