Dallas, Texas-based Signify Health, a value-based healthcare platform, agreed to acquire Kansas City, Mo.-based Caravan Health for $250 million.
Caravan Health works with accountable care organizations in population health management and value-based payment programs, according to a Feb. 10 Signify Health news release.
In addition to the $250 million initial purchase, there will be $50 million payments based on Caravan's future performance.
The deal would create one of the largest networks of providers in risk-based payment models, according to the release. Signify has more than 3,000 physician practices and facilities and Caravan has more than 200 health systems and 100 federally qualified health centers.
"This is an exciting opportunity to leverage the combined technology, tools and expertise of Caravan and Signify to all move forward toward better patient care while helping providers achieve financial sustainability," said Lynn Barr, founder and chair of Caravan Health.
The acquisition is expected to be completed in the first quarter of 2022.
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