Cardinal Health becomes majority owner of convener naviHealth
Cardinal Health has bought a majority stake in naviHealth. The initial deal for a 71% stake was for $290 million, The Tennessean reported, and Cardinal Health plans to buy the remaining stakes over the next four years.
In addition to being a convener under the Bundled Payment for Care Improvement Initiative Model 2 through the Center for Medicare & Medicaid Services, naviHealth 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.
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.