Signify Health and Remedy Partners, two portfolio companies of private equity firm New Mountain Capital, have signed an agreement to merge. Signify Health, based in Dallas, provides a technology platform that offer care services management to providers and life sciences companies with in-home and post-acute facility care delivery, while Remedy Partners is one of the largest conveners in the bundled payment space.
The merger will create a unified offering for health plans and systems, physician groups and life science organizations in the value-based care space. The two companies have a combined revenue of $600 million and double-digit revenue growth, according to a press release. In late 2018, Remedy Partners announced it had tripled its business.
“A fundamental change is underway in healthcare and patients stand to benefit because their experience is now at the center of reform,” Kyle Armbrester, who will lead the combined businesses as CEO, said in a statement. “Organizing and financing health care around a patient’s episode of care lowers costs and improves quality, allowing providers to move toward a value-based approach, but making the shift is challenging without analytic support, workflow and decision support software, and an innovative approach to care delivery.”
Under the new organization, Steve Senneff will serve as president and CFO.
The combined company will have a national field force of more than 9,000 credentialed providers, more than 300 provider systems, 2,000 post-acute organization and more than 200 community locations. The businesses also see more than 1 million members annually in the home and have managed more than 600,000 episodes of care, addressing 25 million social determinants of health across 3 million members.
“Both Signify and Remedy have scaled disruptive approaches to healthcare delivery, achieving impressive growth and penetration in their respective markets,” Matt Holt, deputy head of private equity at New Mountain Capital, said in a statement. “With the convergence of those markets around value-based care delivery, we believe this combination results in a compelling set of complementary assets that are well-positioned to help payer and provider organizations succeed in managing value-based care.”
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."