Signify Health, a technology company that supports in-home care and provides care management services announced plans to merge with Remedy Partners, a software company that collaborates with healthcare organizations to launch bundled payment programs.
The combination of the two companies — both portfolio companies of New Mountain Capital — will create a unified value-based payment platform for health plans, health systems, physician groups, and life science organizations. It will leverage clinical, behavioral and social data, the companies said.
Terms of the deal were not disclosed. The two companies have combined revenue of over $600 million with strong double-digit revenue growth, according to a release.
Signify Health launched in December 2017 as the result of a merger between CenseoHealth and Advance Health. The company, led by former Athenahealth executive Kyle Armbrester, manages a nationwide network of 4,000 doctors and nurse practitioners delivering healthcare services in the home to over a million unique Medicare Advantage members each year.
RELATED: Signify Health buys social determinants technology company TAV Health
In March the company acquired technology company TAV Health to build its capabilities to address social determinants of health.
With the merger with Remedy Partners, the two companies bring together technology, data, and network assets, including 9,000 credentialed providers and a combined nationwide partner network of over 300 provider systems, 2,000 post-acute organizations, and over 200 community locations, according to the companies.
Signify Health and Remedy Partners see more than 1 million members annually in the home, have managed over 600,000 episodes of care, and have addressed over 25 million social determinants of health activities for over 3 million members.
“A fundamental change is underway in healthcare and patients stand to benefit because their experience is now at the center of reform. 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," said Kyle Armbrester, who will lead the combined businesses as CEO.
RELATED: EQT Partners and the Canadian Pension Plan buy majority stake in Waystar in $2.7B deal
Steve Senneff, formerly chief financial officer at Remedy Partners, will serve as president and CFO of the combined businesses.
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," Holt said.