Healthcare company Elevance Health has announced its plans to acquire home health company CareBridge in a deal worth approximately $2.7 billion. The acquisition will serve as the foundation for subsidiary Carelon’s home health business, according to Elevance Health CEO Gail Boudreaux.
Impact of the Acquisition
Boudreaux expressed excitement about the acquisition, stating that Carelon will serve as a “real accelerator” for Elevance Health. The company aims to expand its capabilities in managing healthcare spending to support long-term growth. Boudreaux mentioned that Elevance Health is investing in AI-driven solutions to enhance member and provider experiences, reduce costs, and drive more efficient processes. Carelon also offers services such as a pharmacy benefit manager, behavioral health services, and digital platforms.
The acquisition of CareBridge will enable Elevance Health to enhance its home-based care services and further strengthen its growth strategy for Carelon Services. CareBridge is known for developing healthcare technology that assists states in caring for individuals receiving long-term medical services, including electronic visit verification, data aggregation, and member support.
Industry Trends
Despite reporting a 22.5% decrease in net income during the third quarter of 2024, Elevance Health remains optimistic about its long-term growth prospects. The company’s net income for the year has shown an increase compared to the previous year. Shares of Elevance Health experienced a 12% decline after adjusting its full-year earnings forecast. Boudreaux highlighted challenges related to Medicaid rates and acuity as factors impacting the company’s earnings, a sentiment echoed by other healthcare companies like UnitedHealth Group.
Jeff Lagasse is the editor of Healthcare Finance News. For inquiries, email jlagasse@himss.org. Healthcare Finance News is a HIMSS Media publication.
