Elevance planning CareBridge acquisition estimated at $2.7 billion
Elevance Health CEO Gail Boudreaux said it will serve as the foundation for subsidiary Carelon's home health business.
Photo: Matt Mawson/Getty Images
Elevance Health announced plans to acquire home health company CareBridge during its most recent earnings call, with Elevance Health CEO Gail Boudreaux saying it will serve as the foundation for subsidiary Carelon's home health business.
"We're excited to continue to serve all its customers and members," Boudreaux said on the call.
Nashville Business Journal said the deal will be worth about $2.7 billion.
WHAT'S THE IMPACT
Boudreaux called Carelon a "real accelerator," and said it's expanding its capabilities to manage a growing proportion of healthcare spending. This, she said, will support the long-term growth of the business.
"Despite the challenges of the current environment, we're investing to position Elevance Health for sustained growth over the long term, including through the application of AI-driven solutions that are enhancing member and provider experiences, reducing costs and driving more efficient processes," said Boudreaux.
Carelon is also home to a pharmacy benefit manager, behavioral health services and digital platforms.
The CareBridge acquisition, said Boudreaux, "gives us home-based care and another pillar inside of our growth strategy for Carelon Services where we can take significantly more pass-through of the type of medical expense we're managing inside of Carelon."
The Goodwin law firm, which advised CareBridge on the deal, confirmed the acquisition and described CareBridge as a company that develops healthcare technology designed to assist states in caring for individuals receiving long-term medical services.
Its services include electronic visit verification, data aggregation, and all-day member support and benefits management.
THE LARGER TREND
Elevance Health recently reported net income of $1 billion during the third quarter of 2024, compared to $1.3 billion during the same period in 2023, a 22.5% decrease, though net income was $5.5 billion, an increase when compared to last year's figure of $5.1 billion.
Shares of Elevance Health fell 12% after the health insurer lowered its forecast for full-year earnings, according to Seeking Alpha.
Boudreaux also cited Medicaid and the timing mismatch between Medicaid rates and acuity. It was a reason also given by UnitedHealth Group as a headwind in its earnings.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.
