Elevance Health plans to acquire home health company CareBridge in a deal that's reportedly worth $2.7 billion.
Elevance CEO Gail Boudreaux told investors on the company's earnings call earlier this month that the company's Carelon division "recently" entered into a deal to acquire CareBridge.
Further details on the transaction have not yet been disclosed. The Nashville Business Journal, where CareBridge is based, reported that Elevance Health would pay $2.7 billion for the home health company. The article called CareBridge the "fastest growing" company in the Tennessee city.
On the call, Boudreaux said that CareBridge will "serve as the foundation for Carelon's home health business, and we're excited to continue to serve all its customers and members." CareBridge provides value-based care in the home and community for people with complex and chronic conditions.
During its third-quarter earnings, Elevance Health touted the continued growth of its Carelon division, which also houses a pharmacy benefit manager, behavioral health services and digital platforms.
"Carelon Services is expanding its capabilities to manage a growing proportion of healthcare spending, supporting the long-term growth of the business and by extension, the value it creates for health plan customers," Boudreaux said.
CareBridge was founded in 2019 by former Center for Medicare and Medication Innovation Director Brad Smith and former Senator Bill Frist. It operates in 17 states and the District of Columbia, according to its website.
The company has established partnerships with the National MLTSS Health Plan Association and the Association for Community Affiliated Plans.