Evolent Health completes the acquisition of Vital Decisions
Evolent Health (NYSE: EVH) has completed its $ 85 million acquisition of Vital Decisions from private equity firm WindRose Health Investors. Financial terms also include a gain of $ 45 million. Vital Decisions offers telehealth solutions to support advance care planning.
An “earn out” in an acquisition refers to the additional funds that a seller receives after the purchased business has achieved certain performance targets. Once the transaction is completed, Vital Decisions will be part of Evolent’s management business, New Century Health, and will be consolidated into the Clinical Solutions segment of the company.
“The Vital Decisions model has proven that by allowing individuals to take an active role in their care plan, you can improve the quality of life for people with advanced disease and reduce costs to the healthcare market. health, ”said Oliver Moses, Partner Director of WindRose. “We are delighted to have found an excellent partner for Vital Decisions in Evolent Health. “
Evolent offers services to help healthcare plans and providers across the continuum build the operational scale and clinical performance needed to work successfully in value-based payment models. The company’s New Century Health subsidiary is focused on improving oncology and cardiology outcomes through peer-led vendor collaboration.
The combination of these two companies reflects two growing priorities in the healthcare industry: advance care planning and telehealth.
Advance care plans are a key tool in ensuring that patients’ choices are known and respected during their critical or terminal illnesses. Encouraging discussions on advance care planning to focus more on improving outcomes has been correlated. Such discussions about patients’ end-of-life goals and wishes have been associated with better access to quality care, increased use of palliative care, and longer life expectancy.
In the United States, only 1 in 3 people have had discussions with clinicians and loved ones about their end-of-life wishes, even though around 92% said they believe such conversations are important, according to a 2018 survey of the Conversation Project. Less than 40% of those who suffer from a serious illness have an advance directive, according to the survey.
In recent years, a cottage industry has grown around advance care planning services, and a number of new value-based payment models newly available for hospices have features designed to encourage more patients to document their end-of-life wishes.
The expansion of telehealth services across the healthcare continuum has accelerated rapidly due to efforts to stem the spread of the novel coronavirus. Telehealth visits helped providers maintain continuity of care while limiting face-to-face contact. These developments are likely to shape health care for years to come, including for hospice and palliative care providers.
The U.S. Centers for Medicare & Medicaid Services (CMS) have said they will make permanent a number of temporary flexibilities to expand telehealth that the agency has implemented in response to the COVID-19 pandemic. However, the number of rules affecting hospices that would be extended remains to be seen.
“Vital Decisions was created as a patient-centric platform to improve alignment between patients, families and providers regarding the care of advanced disease,” said Mitchell Daitz, co- founder and executive chairman of Vital Decisions. “Through our economic studies and peer-reviewed research, we have found that up to 35% of costs in the last six months of life are for unwarranted or unwanted services.”