The acquisition is an all-stock transaction, giving CVS Health a minority stake in Wellvana, according to a March 4 news release. Details of the deal were not disclosed.
Nashville, Tenn.-based Wellvana provides administrative services for providers participating in CMS Medicare shared savings and accountable care organization realizing equity, access and community health, or ACO REACH, programs. With the acquisition of CVS Health’s shared savings business, the company has providers in 40 states serving around 1 million Medicare beneficiaries, according to the release.
Under the Medicare shared savings and ACO REACH programs, providers take on financial risk for care for traditional Medicare beneficiaries.
CVS Health had launched several collaborations with health systems to manage ACO REACH programs. According to the release, the company “remains committed to value-based care and will continue its efforts through CVS-owned providers Oak Street Health and MinuteClinic.
“We made this decision to further advance MSSP by partnering with a value-based care leader with the right strategic focus and investment commitment in this space,” Sree Chaguturu, MD, president of healthcare delivery at CVS Health said.
In August, CVS Health said it planned to cut $2 billion in costs through automation and streamlining its operations. The company laid off 2,900 employees in September.
In addition to getting out of Medicare shared savings, CVS has exited other businesses in the past year. In October, the company discontinued its infusion services business.
“We are incredibly proud of our CVS Health colleagues who have supported the MSSP business over the years and are committed to a smooth transition so they can continue their work and maintain services to clients, providers and patients,” Dr. Chaguturu said.