Elevance teams with private investment firm on primary care

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Elevance Health and private investment firm Clayton, Dublier and Rice (CD&R) have agreed to form a strategic partnership meant to accelerate innovation in primary care delivery, with an eye toward improving experience and outcomes.

The effort will bring together certain care delivery and enablement assets of Elevance Health's Carelon Health and CD&R portfolio companies apree health and Millennium Physician Group.

The organizations described the partnership's advanced primary care models as taking a whole health approach to address the physical, social and behavioral factors that influence a person's health. The goal of the new offering will be stronger patient-provider relationships supported by data-driven insights, care coordination and referral management, and integrated health coaching.

It will also leverage realigned incentives through value-based care agreements that enable care providers, assist individuals in leading healthier lives, and make care more affordable, according to Elevance.

WHAT'S THE IMPACT?

Elevance framed the partnership as the next step in its effort to expand access to advanced primary care for consumers with coverage across commercial, individual exchange, Medicaid and Medicare health plans.

Upon its formation, the payer-agnostic platform will serve nearly one million consumers. apree health, Carelon Health and MPG will play roles in the effort.

apree health offers digital navigation and clinical-advocacy capabilities with advanced primary care, while Carelon Health has 30 clinics that will support the strategic partnership's ability to provide healthcare to high-risk members, including individuals with complex and chronic conditions. MPG, meanwhile, is a primary care-centric platform serving nearly 900 healthcare providers across multiple states.

Elevance said patients will have access to integrated care teams, personalized navigation, expanded digital access and specialized services for higher-need populations. It promised employers a stronger care provider service that delivers affordability and strong experiences for their employees, including dedicated primary care capacity integrated with clinical and benefits navigation.

The investment will primarily be through a combination of cash and Elevance's equity interest in certain care delivery and enablement assets of Carelon Health, and is subject to customary regulatory approvals. Terms of the partnership were not disclosed, but Elevance said it will not have a material impact on its 2024 financial results.

THE LARGER TREND

Elevance Health has been looking to expand, entering into an agreement in January to acquire Paragon Healthcare, a company specializing in infusible and injectable therapies. The transaction amount was not disclosed.

Elevance took a step into the specialty pharmacy space early last year when it finalized its acquisition of BioPlus, which provides a range of specialty pharmacy services for patients living with complex and chronic conditions, such as cancer, multiple sclerosis, hepatitis C, autoimmune diseases and conditions in rheumatology. Elevance anticipated the acquisition would help it meet the specialty-drug needs of clients and customers with a more whole health-focused approach.

ON THE RECORD

"We know that when primary care providers are resourced and empowered, they guide consumers through some of life's most vulnerable moments, while helping people to take control of their own health," said Bryony Winn, president of Health Solutions at Elevance Health. "By bringing a new model of advanced primary care to markets across the country, our partnership with CD&R will create a win-win for consumers and care providers alike."
 

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.