Cardinal Health is acquiring a majority stake in Nashville, Tennessee-based naviHealth, which manages post-acute services for health plans. No financial terms were disclosed. NaviHealth’s main backer, Welsh, Carson, Anderson & Stowe, will retain an ownership stake in the company.
DUBLIN, Ohio, Aug. 25, 2015 – Cardinal Health announced today that it is acquiring a majority stake in Nashville, Tenn.-based naviHealth and expects the transaction to close later this week. Privately-held naviHealth partners with health plans, health systems and providers to manage the post-acute segment of the care continuum. With more than a decade of experience managing post-acute care, naviHealth is a leading convener for health systems in the Centers for Medicare and Medicaid Services’ Bundled Payments for Care Improvement initiative and also manages post-acute services for health plans.
naviHealth’s executive management team will continue to lead the naviHealth business. naviHealth’s principal investor, Welsh, Carson, Anderson & Stowe, along with management, will continue to have an ownership interest in the business.
naviHealth has grown rapidly since its founding and now provides post-acute management services in over half the states across the country. naviHealth pioneered a “high tech, high touch” model to manage post-acute care, matching local market clinicians with proprietary, best-in-class decision support technology and analytics. As health plans and providers increasingly enter into value-based reimbursement models, naviHealth has consistently delivered savings for its partners and improved patient outcomes. The company now serves nearly 2 million health plan members and over 75 partner hospitals and physician groups.
“Discharge and post-acute care coordination is critical for both hospital CEOs and their patients, as care is increasingly delivered in alternative sites and payment models shift the focus to patient outcomes rather than activity,” said Michael Petras, president of Cardinal Health at Home. “The acquisition of naviHealth aligns with Cardinal Health’s strategic priority of offering the most complete and integrated suite of services to meet the needs of our Integrated Delivery Network, hospital and other customers.”
“As one of the most trusted companies in health care, we believe Cardinal Health represents an ideal owner of naviHealth as we continue to focus on our mission of improving outcomes across the post-acute care continuum,” said Clay Richards, naviHealth CEO. “Bolstered by Cardinal Health’s unmatched distribution channel and diverse suite of clinical products and services, we believe that we have the opportunity to significantly accelerate the growth of our business and expand our value proposition for our partners.”
Health plans, health systems and physicians are increasingly focused on post-acute care, as there is significant variance across the U.S. in both cost and quality. Today, post-acute spending is estimated to exceed $200 billion per year and is growing at approximately 6 percent annually.
Proper discharge planning and post-acute care coordination reduces overall cost and variance in the health care system, which is critically important to providers and health plans participating in value-based payment models, including bundled payments initiatives.
For more information contact: Corey Kerr at 614.757.3383
About Cardinal Health
Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is a $103 billion health care services company that improves the cost-effectiveness of health care. Cardinal Health helps pharmacies, hospitals, ambulatory surgery centers and clinical laboratories focus on patient care while reducing costs, enhancing efficiency and improving quality. Cardinal Health is an essential link in the health care supply chain, providing pharmaceuticals and medical products and services to more than 100,000 locations each day and is also the industry-leading direct-to-home medical supplies distributor. The company is a leading manufacturer of medical and surgical products, including gloves, surgical apparel and fluid management products. In addition, the company operates the nation’s largest network of radiopharmacies that dispense products to aid in the early diagnosis and treatment of disease. Ranked #26 on the Fortune 500, Cardinal Health employs almost 35,000 people worldwide. More information about the company may be found at www.cardinalhealth.com and CardinalHealth on Twitter.
naviHealth partners with health plans, health systems, physicians and post-acute providers to manage the entire continuum of post-acute care. The Company utilizes evidence-based protocols and technology-enabled services to optimize care and align all stakeholders. naviHealth has more than a decade of experience managing post-acute care under value-based models including CMS sponsored bundled payment initiatives and Medicare Advantage risk arrangements. For more information, visit naviHealth’s website at www.naviHealth.us.