Elevance Health taps PE firm CD&R for primary care partnership

Elevance Health is teaming up with private equity firm Clayton, Dubilier & Rice in its latest bid to expand access to advanced primary care.

The insurance giant and CD&R will bring together certain segments of Elevance's Carelon Health division and the PE firm's portfolio companies apree health and Millennium Physician Group, according to the announcement issued Monday. The new joint primary care model will seek to address each patient's physical, social and behavioral health through a whole-person approach, the partners said.

The goal, according to the two companies, is to drive stronger relationships between the patient and provider as well as to arm clinical teams with critical data analytics, care coordination and health coaching supports.

“We know that when primary care providers are resourced and empowered, they guide consumers through some of life’s most vulnerable moments, while helping people to take control of their own health,” said Bryony Winn, president of health solutions at Elevance Health, in the press release. “By bringing a new model of advanced primary care to markets across the country, our partnership with CD&R will create a win-win for consumers and care providers alike.”

Elevance said the combined program will serve close to 1 million people across Carelon, apree and MPG. Carelon Health operates 30 clinics, while apree connects providers with digital navigation and clinical advocacy services. MPG provides a primary care platform that connects with 900 providers across multiple states.

The investment will be backed by a mix of cash and Elevance's equity interest in parts of Carelon Health, according to the announcement. Further financial terms were not disclosed, and the insurer said it does not expect the strategic partnership to have a notable impact on its 2024 financials.

“CD&R’s collaboration with Elevance Health is an important step in our ongoing investment focus to accelerate innovation in care delivery across the country,” said Clay Richards, CD&R operating partner, in the release. “We are excited to enter into this strategic partnership with Elevance Health and for what this effort can accomplish, drawing out the strengths of each of the three companies to improve the patient and physician experience for the communities they serve.”