Signify Health to lay off close to 500 employees

According to reports, CVS Health Corp. plans to bid for the Signify Health Inc. healthcare platform as CVS aims to expand home health services. 

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Signify Health is laying off close to 500 employees, according to a filing with the Connecticut Department of Labor.

On July 29, Signify Health in Dallas, Texas, said it expected to lay off 489 employees starting October 1, with 147 of those located at offices in Texas, New York, Connecticut and South Dakota and another 342 not assigned to a specific office.

WHY THIS MATTERS

Several changes have been reported for Signify, a value-based healthcare platform that partners with insurers and health systems to provide in-home health services. In July, Signify said it would focus on its home and community services business, according to Home Health Care News.

The reduction in force at the sites, and for those working remotely, is related to the company's decision to discontinue its Episodes of Care Services operations, a move that was announced on July 8, according to the Connecticut Department of Labor filing.

Also, earlier this month, people familiar with the matter told The Wall Street Journal that CVS Health was seeking to buy Signify Health. CVS, which owns Aetna, is looking to expand in-home health services, according to the August 7 report. Other potential buyers are also in the mix, the report said.

Q2 results, released earlier this month, show revenue gains of $246 million but a net loss of $490 million on impairment related to its decision to exit the Episodes of Care Services segment. 

Caravan Health, which Signify acquired in March 2022, contributed $16.6 million in revenue during the second quarter.

THE LARGER TREND

In February, the value-based healthcare platform Signify Health announced plans to buy Caravan Health, a startup focused on helping providers transition into accountable care organizations, for $250 million.

In November 2020 Signify Health turned to the blockchain space with its acquisition of PatientBlox, a tech company that helps facilitate contracts and payments in healthcare. 

Twitter: @SusanJMorse
Email the writer: SMorse@himss.org