Carelon, the health services division of Elevance Health, Inc.
intends to acquire home health company CareBridge. Elevance
announced its intent during its Oct. 17 earnings call. CareBridge
provides home- and community-based health care services for
people with chronic and complex conditions. CareBridge, which
operates in 17 states and Washington, D.C., employs 500 people
and serves 115,000 patients. “Carelon 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,” said
Elevance CEO Gail Boudreaux. Terms of the acquisition have not
been disclosed. In a research note, Bernstein analyst Lance
Wilkes noted that the acquisition fits in Elevance’s strategy by
“1) expanding services businesses which can replace existing
outside vendors to ELV’s MCO [managed care organization) business
and also be cross-sold to ELV self-insured employer customers;
and 2) providing these services to other MCOs, in particular for
other smaller Blue Cross companies which represent an additional
65[M] members.”
During its third-quarter earnings, Elevance Health touted the
continued growth of its Carelon division. (SvetaZi/Getty Images)
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
<https://www.bizjournals.com/nashville/news/2024/10/21/elevance-h
ealth-buys-carebridge-brad-smith-anthem.html> 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.
The M&A market for healthcare companies continues to build on STRATEGIC opportunities and a fragmented market. Consolidations along with unprecedented demand are driving scale across the continuum of care. The strategic corporate buyers and private equity investors remain committed to acquiring strong businesses that are well prepared for a transaction. Across the continuum of care, these buyers and investors are looking for well established, profitable businesses and offering prime valuations and options for management.
Do you know the current market value of your business? We do! We are here to help you plan, prepare, explore and succeed in executing your strategic options.
Contact Paragon Ventures for more information.
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