News

Program enhancements include new incentives for providers and plan members to achieve dual goals of achieving better outcomes and lowering overall health care costs

HARTFORD – May 10, 2022 – Comptroller Natalie Braswell announced today that the state
health plan has launched the next phase of its innovative value-based care payment program, aimed at improving the quality, affordability, and experience of health care for hundreds of thousands of state employees and retirees. Three Connecticut facilities — Women’s Health Connecticut, UConn Health and Trinity Health Of New England’s Saint Francis Hospital — have been designated Centers of Excellence for certain procedures to recognize and reward their demonstrated superior quality of care.

Launched in 2020, the state’s innovative Providers of Distinction program incentivizes the highest-quality care at the lowest possible cost for more than 40 common procedures and conditions including knee replacement, colonoscopy, cataract surgery and care related to pregnancy. By negotiating fixed, guaranteed pricing with providers to coordinate and deliver care across the patient’s care journey, the state reduces variation in costs while improving health care quality and outcomes.

“Providers across the state have embraced the opportunity to work in partnership with us to deliver high-quality, coordinated care while controlling costs,” said Connecticut Comptroller Natalie Braswell. “The new Centers of Excellence designation is a natural next step in our evolution of the program to recognize and reward those providers who are performing at the highest levels. Congratulations to Women’s Health Connecticut, UConn Health, and Trinity Health of New England’s Saint Francis Hospital for this impressive achievement. It’s my hope that, by elevating the most talented doctors, hospitals, provider groups and other medical institutions, that we can lower costs throughout the state and make Connecticut the health care capital of the nation.”

More than 340 providers currently participate in the Providers of Distinction program based on their demonstrated ability to deliver the best health care outcomes for patients at competitive prices. Those covered by the state’s health plan, including members of the Connecticut Partnership Plan, now will automatically receive cash incentives ranging from $100 to $1,000 when they have eligible procedures performed by participating providers. Incentives for both plan members and providers increase based on two provider performance tiers, called Providers of Distinction and Centers of Excellence. Providers of Distinction are those provider organizations that scored higher than their peers in affordability and clinical quality, while Centers of Excellence provider organizations are those who score the highest among their peers in affordability, clinical quality, and additional areas such as process improvement, leadership, clinical innovation, and patient focus. Three provider groups have been designated Centers of Excellence for 2022-2023, including:

● Women’s Health Connecticut for maternity and hysterectomy episodes of care
● UConn Health for maternity, knee replacement and revision, lumbar laminectomy, and
lumbar spine fusion episodes of care
● Trinity Health Of New England’s Saint Francis Hospital for hip replacement and hip
revision, knee replacement and knee revision, lumbar laminectomy, and lumbar spine fusion
episodes of care

In 2021, the State of Connecticut Health Plan was approved by The Centers for Medicare and
Medicaid Services (CMS) as an Advanced Alternative Payment Model (AAPM). With this
designation, eligible doctors, hospitals and provider groups that have contracted with the state may receive certain credit for their participation under the CMS Merit-based Incentive Payment System.

Signify Health supports the State of Connecticut’s Episodes of Care program by identifying,
contracting with and supporting participating providers with services, technology, and analytics, as well as securing fixed, episodes-of-care pricing with high-value network providers.

“The State of Connecticut has been a catalyst for accelerating the adoption of value-based payment models by innovative provider organizations across the state,” said Laurel Douty, Executive Vice President, Clinical Operations at Signify Health. “We are proud to support the State and its work to align primary and specialty care providers around what’s best for the patient – and help all citizens benefit from a higher quality system of care.”

Nancy Bernstein, President and CEO of Women's Health Connecticut said of the
designation: "As a high-volume resource for women in both maternity and gynecologic surgery,
we've long held the belief that there could be more cost efficiency in this space. We have enjoyed
being the state's partner in this program and in making a tangible difference toward reducing
healthcare cost. We're grateful to receive this COE distinction for those efforts."

“The Center of Excellence designations affirm UConn Health’s steadfast focus on patient-centered, high-quality, and affordable care,” says Dr. Bruce T. Liang, interim CEO of UConn Health. “We are proud to be a partner in the state’s initiative further elevating the quality and value of health care for all.”

"The State of Connecticut’s innovative value-based care payment program is an exciting move for all those insured by the State’s health plan, offering patients the assurance that they are receiving affordable, high-quality care. As the clinically integrated network for Trinity Health Of New England, SoNE HEALTH is dedicated to a collaborative approach to healthcare and we are
honored to align with the State of Connecticut on this initiative,” stated Lisa Trumble, President
and CEO at SoNE HEALTH.

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About the Office of the State Comptroller
Connecticut’s Office of the State Comptroller administers the health plan covering state and certain municipal workers, retirees, and their dependents, totaling over 220,000 lives. Comptroller Natalie Braswell has focused the efforts of the office on improving the quality of care, including access to preventive screenings, while simultaneously reducing costs. For more information, visit osc.ct.gov.

About Signify Health
Signify Health (NYSE: SGFY) 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 transform how care is paid for and delivered so that people can enjoy more healthy, happy days at home. 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. For more information on how we are taking health homeward, visit us at signifyhealth.com.

Financial Highlights 

First Quarter 2022:

• First quarter revenue of $216.5 million, an increase of 20% from first quarter 2021
• GAAP net loss of $16.3 million improved compared to net loss of $51.7 million in first quarter 2021

Non-GAAP adjusted EBITDA ¹ of $45.0 million, an increase of 31% from first quarter 2021

2022 Guidance:

Signify Health maintains estimates for full year 2022 results as follows:

• Total revenue in the range of $948 million to $971 million; and
• Total adjusted EBITDA¹ in the range of $212 million to $222 million

DALLAS and NEW YORK – May 4, 2022 – Signify Health, Inc. (NYSE: SGFY), a leading healthcare platform that leverages advanced analytics, technology and nationwide healthcare networks to create and power value-based payment programs, today announced the Company’s financial results for the first quarter 2022.  

“Our strong first quarter results demonstrate the significant value we are delivering to our clients as we continue to execute our growth strategy and make strategic investments in our business,” said Kyle Armbrester, Chief Executive Officer of Signify Health. “The investments we have made to support increased customer demand for our comprehensive member evaluations enabled us to reach a record level of 564 thousand evaluations in the first quarter. Investment in people and processes also helped our Episodes of Care and BPCI-A program partners to improve health outcomes for patients and deliver meaningful savings as we continue to manage through the COVID-19 environment and its impact on program size and savings rate.”

Mr. Armbrester continued, “The integration of Caravan Health is progressing well and clients are responding favorably to how the combined capabilities of Signify and Caravan can help them be more successful in their alternative payment strategies. Clients also are expressing interest in tapping into the significant access and scale we have in homes as part of their efforts to manage total cost of care. Caravan Health adds to our revenue diversification while supporting our mission to accelerate the transformation of the U.S. healthcare system from fee-for-service to value-based care.”

First Quarter 2022 Financial Results

• Total revenue for the first quarter increased 20% to $216.5 million, up from $180.0 million in the same period a year ago.  Overall growth in the first quarter of 2022 was driven by a 23% increase in Home & Community Services (HCS) segment revenue to $186.9 million and a 7% increase in Episodes of Care Services (ECS) segment revenue to $29.6 million compared to a year ago.  
• The strong HCS revenue was a quarterly record and is attributable to an increase in In-Home Health Evaluations (IHE) volume, which grew to approximately 564 thousand from approximately 462 thousand in the first quarter of 2021.
• ECS first quarter revenue growth was driven by an increase in program size and revenue generated by Caravan Health for one-month post acquisition. 
• First quarter total net loss improved to $16.3 million compared to a net loss of $51.7 million for the same period a year ago.  Net loss included $28.9 million of other expense related to the remeasurement of the fair value of our Equity Appreciation Rights (EAR) due to an increase in the Company’s stock price in the first quarter.
• Non-GAAP Adjusted EBITDA¹ for the first quarter increased 31% to $45.0 million, compared to $34.4 million for the first quarter 2021, driven primarily by HCS revenue growth.
• Non-GAAP Adjusted EBITDA margin¹ for the first quarter was 20.8%, a 170-basis point improvement from the comparable year ago period. 

2022 Outlook

The Company is maintaining its full year 2022 estimates as follows:

• Total revenue in the range of $948 million to $971 million; and
• Total adjusted EBITDA¹ in the range of $212 million to $222 million.

¹Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Refer to the reconciliation in “Non-GAAP Financial Measures.”  We have not reconciled 2022 guidance for adjusted EBITDA to net income (loss), the most directly comparable GAAP measure, and have not provided forward-looking guidance for net income (loss) because of the uncertainty around certain items that may impact net income (loss), including, among others, stock-based compensation and the fair valuation of the EARs, that are not within our control or cannot be reasonably estimated.

Conference Call Information

Signify Health will host a conference call to discuss the Company’s first quarter 2022 results on May 5, 2022 at 8:30am ET.  A live audio webcast of the conference call may be accessed through the investor relations section of Signify Health’s website at investors.signifyhealth.com/events/default.aspx and will be available for replay through July 5, 2022.

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 transform how care is paid for and delivered so that people can enjoy more healthy, happy days at home. 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, our plan to drive better patient outcomes, our 2022 Outlook, including our 2022 estimates for total GAAP revenue, total Adjusted EBITDA, In-Home Health Evaluations, bundled payment program size and bundled payment weighted average savings rate improvements. 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 or achievements. 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 failure to maintain and grow our network of high-quality network providers; the COVID-19 pandemic and whether the pandemic will subside in 2022; our ability to realize synergies from the acquisition of Caravan Health, Inc.; factors beyond our control that could impact our ability to complete IHEs; our dependence upon a limited number of key customers; our dependence on certain key government programs including BPCI-A; risks associated with estimating program size and savings rate in BPCI-A; 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 episodes and care redesign solutions; risks that arise from operating internationally; 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, including growth in our Commercial Episodes business; our failure to successfully launch new products; our failure to diversify sources of revenues and earnings; changes in accounting principles applicable to us; incorrect estimates or judgments relating to our critical accounting policies; increases in our level of indebtedness or in interest rates; 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; our employment of and contractual relationships with our providers subjecting us to licensing or other regulatory risks, including recharacterization of our contracted providers as employees; 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; our dependence on distributions from Cure TopCo, LLC to fund dividend payments, if any, and to pay our taxes and expenses, including payments under the Tax Receivable Agreement; the control certain equity holders that held an ownership interest in Cure TopCo, LLC prior to our IPO have over us and our status as a controlled company; our ability to realize any benefit from our organizational structure; 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. 

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. In addition, all forward-looking statements speak only as of the date of this press release. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise other than as required under the federal securities laws.

About Non-GAAP Financial Measures 

This press release contains certain financial measures not presented in accordance with generally accepted accounting principles in the United State (“GAAP”), including Adjusted EBITDA and Adjusted EBITDA margin, which are used by management in making operating decisions, allocating financial resources, and internal planning and forecasting and for business strategy purposes. Adjusted EBITDA and Adjusted EBITDA margin are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to GAAP measures. Our presentation of Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similarly-titled measures used by other companies. Management believes that such measures are commonly reported by issuers and widely used by investors as indicators of a company’s operating performance. Please refer to the reconciliations of Adjusted EBITDA and Adjusted EBITDA margin to the most directly comparable financial measures prepared in accordance with GAAP below.

FARMINGTON, CT – (April 13, 2022) – ConnectiCare, a leading health plan in Connecticut for over 40 years, announced today a new “Episodes of Care” program aimed at expanding value-based care programs to providers across the state. Through ConnectiCare’s new program, care will be organized and financed around a member’s entire health episode, for procedures such as knee surgery, chronic conditions like asthma, and maternity bundles encompassing the care of mothers and newborns. Signify Health, a leading value-based care platform that leverages advanced analytics, technology, and healthcare provider networks, will design, and administer the program on behalf of ConnectiCare.

In this First Report Managed Care article, Signify Health SVP Francois de Brantes discusses the future of value-based care and the components required to successfully advance alternative payment models in 2022 and beyond.

Establishes framework for reporting on environmental, social and corporate governance initiatives focused on driving value for shareholders and stakeholders across healthcare