Signify Health continues to showcase the effectiveness of CVS Health’s (NYSE: CVS) in-home capabilities.
Signify — CVS Health’s acquired value-based care platform — conducted 649,000 in-home evaluations for multi-payer Medicare Advantage partners in the fourth quarter of 2023, marking a 20% increase from the previous year.
“Among our Aetna customers, we are broadening our addressable market, utilizing Signify’s strong capabilities and other products — including individual exchange and Medicaid,” Karen Lynch, president and CEO of CVS Health, said during a Wednesday Q4 2023 earnings call. “We will be expanding these capabilities with other clients and will deliver value by engaging consumers and their health across multiple channels.”
CVS Health originally completed its $8 billion acquisition of Signify Health — a value-based platform that offers at-home health risk assessments, among other services — in March 2023.
The company then closed on its $10.6 billion deal to purchase primary care provider Oak Street Health in May.
With both Signify and Oak Street, CVS Health continues to drive success in its health care delivery business, Lynch said. Oak Street – a risk-bearing senior care primary organization – ended 2023 with 202,000 at-risk lives, an increase of 27% year-over-year.
Through January, the number of Aetna members enrolled in Oak Street clinics doubled.
Total revenues increased to $93.8 billion, up 11.9% year over year. For its health services arms, revenue came in at $49.1 billion, up 12.3% year over year.
This increase was driven by factors like changes in drug mix, growth in specialty pharmacy, brand price hikes, and the acquisitions of Oak Street Health and Signify Health. However, changes in pharmacy client pricing partially offset these gains.
Thomas Cowhey, EVP and CFO of CVS Health, said the company is encouraged by the performance and growth of its health care delivery assets
Signify posted a revenue growth of 39% in the quarter compared to last year. Oak Street ended the quarter with 204 centers — an increase of 35 centers compared to 2023.
“We continue to expect to add 50 to 60 centers in 2024,” Cowhey said on the call. “Oak Street also significantly increased revenue in the quarter, growing 36% compared to the same quarter last year.”
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