News

WOONSOCKET, R.I., DALLAS and NEW YORK, Sept. 5, 2022 — CVS Health® (NYSE:CVS) and Signify Health (NYSE: SGFY) (“Signify”) have entered into a definitive agreement under which CVS Health will acquire Signify Health for $30.50 per share in cash, representing a total transaction value of approximately $8 billion.

Signify’s provider partners saved more than $138 million in 2021, and all Collaborative ACOs
earned 100 percent on their Merit-Based Incentive Payment System scores

Signify achieves record ACO sales for 2023, Collaborative ACOs to reach over 700,000
attributed lives in 2023 

DALLAS and NEW YORK – August 30, 2022 – Signify Health, Inc. (NYSE: SGFY), a leading
value-based healthcare platform enabled by advanced analytics, technology, and nationwide
healthcare networks, today announced that its collaborative accountable care organizations
(ACOs) generated more than $138 million in gross savings in 2021. As a result of their strong
performance in the Medicare Shared Savings Program, community hospitals and their affiliated
physicians earned more than $59 million in shared savings payments. The Company also
announced that it has surpassed its target for new ACO bookings in 2023 due to the strong
performance and the combined capabilities of Signify Health and Caravan Health.

“These impressive results confirm what we have learned through many years managing
outcomes-based payment models – our dedicated population health management leads to
quality care while saving money for Medicare,” said Kyle Armbrester, Signify Health CEO. “Our
approach and track record has resonated with our clients, allowing us to achieve record ACO
sales for 2023 and to surpass 700,000 lives under management in 2023, with nearly 70% of
attributed lives expected to be in Enhanced tracks. I’m excited to bring Signify’s in-home
capabilities to these new clients in the coming months.”

Signify Health’s success-based pricing model, with no upfront fees, effectively minimizes
downside risk and has resulted in all Collaborative ACOs earning MIPS scores of 100% and the
maximum positive payment adjustment. MIPS, the Centers for Medicare & Medicaid Services’ value-based measurement program, adjusts Medicare payment rates based on healthcare quality and outcomes.

In 2022, Signify aligned with more than 29,000 providers across more than 40 states,
representing more than 500,000 covered lives. Provider organizations participating in Signify’s
Collaborative ACOs include health systems, integrated delivery networks, rural and community
hospitals, and independent practices. Signify is building on its success with a suite of new
services in 2023, including in-home capabilities, Return to Home to support patient care
transitions, and analytic enhancements to help providers solve patient problems at the point-of-
care.

In March 2022, Signify Health acquired Caravan Health, a leader in guiding ACOs to success
with client results that have historically led the nation in earned shared savings and MIPS
scores. The acquisition resulted in one of the largest national networks of providers engaged in
value-based payment models, with the goal to excel in population health management and
value-based payment programs.

About Signify Health

Signify Health is a leading healthcare platform that leverages advanced analytics, technology,
and nationwide healthcare provider networks to create and power value-based payment
programs. Our mission is to build trusted relationships to make people healthier. Our solutions
support value-based payment programs by aligning financial incentives around outcomes,
providing tools to health plans and healthcare organizations designed to assess and manage
risk and identify actionable opportunities for improved patient outcomes, coordination, and cost-savings. Through our platform, we coordinate what we believe is a holistic suite of clinical,
social, and behavioral services to address an individual’s healthcare needs and prevent adverse
events that drive excess cost, all while shifting services towards the home.

Forward Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical fact included in this press release are forward-looking statements. These statements may be preceded by, followed by or include the words “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements.

Although we believe the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity, performance, achievements or
the number of attributed lives. Moreover, neither we nor any other person assumes
responsibility for the accuracy and completeness of any of these forward-looking statements.
Some of the factors that could cause actual results to differ materially from those expressed or
implied by the forward-looking statements include: our ability to achieve forecasted new ACO
bookings in 2023; our ability to achieve over 700,000 lives under management in 2023;  the
COVID-19 pandemic and whether the pandemic will continue to subside in 2022; our ability to
realize synergies from the acquisition of Caravan Health, Inc.; our dependence on certain key
government programs; risks associated with estimating program size, savings rate and patient
attribution; our failure to continue to innovate and provide services that are useful to customers
and achieve and maintain market acceptance; our limited operating history with certain of our
solutions; our failure to compete effectively; the length and unpredictability of our sales cycle;
seasonality that may cause fluctuations in our sales, cash flows and results of operations; the
information we provide to, or receive from, our health plans and providers could be inaccurate or incomplete; the risk that the cost of services provided will be higher than benchmark prices in
our care redesign solutions;  failure of our existing customers to continue or renew their
contracts with us; failure of service providers to meet their obligations to us; our failure to
achieve or maintain profitability; our revenues not growing at the rates they historically have, or
at all; our failure to successfully execute on our growth initiatives, business strategies, or
operating plans; our failure to successfully launch new products;  our failure to effectively adapt
to changes in the healthcare industry, including changes in the rules governing Medicare or other federal healthcare programs; our failure to adhere to complex and evolving governmental
laws and regulations; our failure to comply with current and future federal and state privacy,
security and data protection laws, regulations or standards;  adverse findings from inspections,
reviews, audits and investigations; inadequate investment in or maintenance of our operating
platform and other information technology and business systems; our ability to develop and/or
enhance information technology systems and platforms to meet our changing customer needs;
higher than expected investments in our business including, but not limited to, investments in
our technology and operating platform, which could reduce our profitability; security breaches or incidents, loss or misuse of data, a failure in or breach of our operational or security systems or other disruptions; disruptions in our disaster recovery systems or management continuity
planning; our ability to obtain, maintain, protect and enforce our intellectual property;  risks
associated with acquiring other businesses including our ability to effectively integrate the
operations and technologies of the acquired businesses;  and the other risk factors described
under “Risk Factors” in our filings with the Securities and Exchange Commission (“SEC”),
including our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which
are available free of charge on the SEC's website at: www.sec.gov.

Financial Highlights

DALLAS and NEW YORK – July 20, 2022 – Signify Health, Inc. (NYSE: SGFY), a leading value-based healthcare platform enabled by advanced analytics, technology and nationwide healthcare networks, announced that it will release its financial results for the second quarter 2022 after the market closes on Wednesday, August 3, 2022, and will hold a conference call at 8:30am ET on Thursday, August 4, 2022 to discuss the results.

Changes expected to have positive impact on 2023 earnings

Company ending its participation in the BPCI-A program to focus on supporting future growth

DALLAS & NEW YORK – July 8, 2022 – Signify Health, Inc. (NYSE: SGFY) today announced that it is winding down its Episodes of Care Services (ECS) segment in order to focus on its fast-growing and profitable Home and Community Services (HCS) business and recent Caravan Health acquisition. The Company is exiting CMS’ Bundled Payments for Care Improvement-Advanced (BPCI-A) program in light of the newly released CMS retrospective trend calculations
that lowered target prices for episodes, thereby reducing the opportunity for savings. This strategic and timely decision allows the Company to invest more to drive the future growth and diversification of the HCS and Caravan Health businesses supporting the needs of health plans and providers in total cost of care contracts, where they take responsibility for the cost of a patient’s healthcare over the course of a year. The Company anticipates these changes will have a positive impact on 2023 earnings, and will provide additional guidance in its Q2 earnings report in early August. 

“Our HCS segment is experiencing tremendous growth as our health plan clients have prioritized access to the home as part of their focus on closing clinical, behavioral, and social care gaps,” said Kyle Armbrester, Signify Health CEO. “Clients are seeing the value in our unique position: our ability to see patients in the home and refer them to care for the urgent needs we identify. This is particularly so with the social and behavioral needs that are crucial to improving care but are often very hard to assess in traditional care settings. We are making investments to create operational improvements that will increase efficiency, expand use of connected devices, and allow us to diversify into new services to drive better health outcomes in the lives of people we touch.”

The Company’s timing and decision to terminate its participation in the BPCI-A program is driven by recent policies implemented by the Center for Medicare & Medicaid Innovation  (CMMI) affecting BPCI-A pricing that the Company and its clients believe have rendered the program unsustainable. The BPCI-A pricing methodology has changed repeatedly over the years and has recently included the imposition of a retrospective adjustment that is not based on publicly available data, cannot be accurately forecasted, and is known only long after a performance period has ended, making it impossible to take real-time action. The Company is currently in the process of contesting the most recent pricing calculations through CMMI’s standard appeals process and advocating for CMMI to offer providers immediate relief. 

In addressing the decision to end Signify Health’s participation in the BPCI-A program, Mr. Armbrester said, “We made this decision in partnership with our clients, who have repeatedly surpassed benchmarks for quality care and operational improvements with our support— including significant reductions in readmissions and increases in healthy days at home during an extremely challenging period for healthcare.” 

The Caravan Health business is not impacted by these changes. Caravan Health was acquired by Signify Health in March 2022 for its strong capabilities in enabling providers and accountable care organizations (ACOs) to excel in population health management and value-based payment programs. Since the acquisition, this business has continued to outperform as clients align themselves with CMS’ goal of having all Medicare beneficiaries in an accountable relationship with their health care provider by 2030, and recognize the benefits of leveraging Signify’s diverse capabilities in managing the cost for all of the care provided to a patient. This includes the Company’s post-acute and transition to home capabilities, as well as key services from its HCS segment, such as the ability to reach patients in their home in order to better manage their care, which the Company believes will result in incremental savings in 2023.