Cardinal Health becomes naviHealth majority owner
Petras: naviHealth acquisition aligns with Cardinal’s goals
Over the past year, Tennessee-based naviHealth, an awardee convener under Medicare's Bundled Payments for Care Improvement Initiative, has announced partnerships with national nursing home chains Golden Living and HCR ManorCare, as well as with hospitalist group IPC Healthcare.
Cardinal Health became the latest company to see promise in the company, announcing in August it had acquired a majority stake in naviHealth. The initial deal for a 71% stake was for $290 million, The Tennessean reported. In addition, Cardinal Health plans to buy the remaining stakes over the next four years.
naviHealth also manages post-acute services for health plans. Its executive team is expected to stay in place, and its principal investor, Welsh, Carson Anderson & Stowe, will continue to keep an ownership interest.
The company has grown quickly, and executives frequently mention it as an example of post-acute care coordination. Care coordination and discharge are important for hospital chief executive officers and their patients, “as care is increasingly delivered in alternative sites and payment models shift the focus to patient outcomes rather than activity,” said Michael Petras, president of Cardinal Health at Home.
“The acquisition of naviHealth aligns with Cardinal Health's strategic priority of offering the most complete and integrated suite of services to meet the needs of our Integrated Delivery Network, hospital and other customers,” he said.
naviHealth now has close to two million health plan members and more than 75 partner hospitals and physician groups. It was founded in 2012 by former Centers for Medicare & Medicaid Services Administrator Tom Scully. It created a Post-Acute Care Center for Research in Washington in 2014.