Amazon is bidding to acquire Signify Health, which has listed itself for sale at auction for a deal that could top $8 billion.
The news, which was first reported by The Wall Street Journal, comes after it was reported CVS Health was seeking to acquire Signify Health. Other suitors for Signify Health include UnitedHealth Group, according to the WSJ, which cited people familiar with the matter.
Dallas-based Signify Health is a healthcare platform that creates value-based care payment programs. The company merged with Remedy Partners, one of the largest conveners in the bundled payment space, in 2019. Signify Health also acquired Caravan Health in March 2022. In its latest quarterly earnings report, Signify Health reported a $490 million net loss, following the company’s decision to wind down its Episodes of Care Services (ECS) segment and exit CMS’ Bundled Payments for Care Improvement-Advanced (BPCI-A) program. The changes are expected to be positive for earnings in 2023. Signify Health has a market value of roughly $5 billion.
Signify Health’s auction for sale requires that all bids are due by Labor Day. However, a deal could be made before then as bidders circle, WSJ reported. As for Amazon, the report reveals the e-commerce giant is continuing to look for opportunities to delve further into the healthcare sector. The online retailer recently announced it is acquiring One Medical, a virtual and in-person care services company based in San Francisco, for a whopping $3.9 billion. CVS Health was also reportedly a bidder for One Medical, but the deal went to Amazon.
However, Amazon's acquisition of One Medical has come under fire from lawmakers and critics who believe the move could give Amazon too much power and flirt with anticompetitive regulations. Some argue that Amazon's foray into healthcare is also a fast-track away from the universal healthcare movement, supported by U.S. Senator Bernie Sanders (D-VT).
Amazon has increasingly stepped into the healthcare space through both acquisitions and ground-up ideas, including Amazon Care, a price comparison tool and pharmacy offerings.
Upon news that Amazon was among the bidders, Signify Health’s stock price soared 39% by mid-morning August 22.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."