Last month, Signify Health Inc. (NYSE: SGFY) revealed that it would turn its attention to its fastest-growing and most profitable businesses. The company’s home and community services (HCS) segment fits the bill.
“This decision will allow us to invest more in supporting the growth of our in-home services, our total cost of care enablement platform, and the needs of our health plan and provider clients,” CEO Kyle Armbrester said on a Q2 earnings call Thursday.
This tracks, as Signify continues to see momentum when it comes to its HCS business. During the quarter, the company completed 624,000 in-home evaluations — a record for Signify.
Exiting the Centers for Medicare & Medicaid Services’ (CMS) Bundled Payments for Care Improvement-Advanced (BPCI-A) program is another reason for the shift in strategy.
As a company, Dallas-based Signify is a tech-enabled, value-based care platform that partners with both health plans and health systems to deliver a variety of care services to patients in their homes.
Signify has also continued to tout its ability to recruit providers to its platform.
“Feedback from the providers in our network indicate that they value the flexibility we offer to control their own schedule,” Armbrester said. “They also value our ability to keep their schedule filled and productive, which is aided by our industry-leading technology platform, our ability to reach members across the country and the strong client relationships we have with leading health plans.”
When leaning into its fast-growing and profitable business, Caravan Health — an accountable care organization (ACO) manager Signify acquired for a price tag of $250 million — also fits the bill.
“We are confident that our HCS and Caravan businesses are well positioned for continued robust growth due to our leading capabilities, including hard-to-reach gaps in care, including engaging people in their homes, and connecting primary care providers with the actual insights required to be successful in value-based models,” Armbrester said.
Though not directly addressed, there were reports in the days leading up to the call that the company has begun to explore strategic alternatives. This includes a potential sale.
This news comes after Signify secured $564 million through the sale of 23.5 million shares in its early 2021 IPO.
If a sale were to happen, it’s still in the early stages. As of yet, nothing has been cemented.
Still, since the initial report, it has been revealed that Goldman Sachs and Deutsche Bank have been tapped by Signify for financial advice on its strategic alternatives process, according to an Axios report.
Overall, Signify brought in $246.2 million for Q2, a 16% increase from the second quarter of 2021. This included 18% growth from HCS, which was driven by the above-mentioned increase in in-home evaluation volume.
The HCS segment brought in $207.6 million for Q2, an 18% increase in revenue year over year.
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