Updated Tuesday morning:
Cardinal Health has announced its intent to buy a majority stake in naviHealth in a deal expected to close later this week. Ohio-based Cardinal is paying $290 million in cash for 71 percent of Brentwood-based naviHealth — which works with some 2 million health plan members — with the goal of buying the remainder of the company in stages over the next four years.
“Discharge and post-acute care coordination is critical for both hospital CEOs and their patients, as care is increasingly delivered in alternative sites and payment models shift the focus to patient outcomes rather than activity,” said Michael Petras, president of Cardinal Health at Home. “The acquisition of naviHealth aligns with Cardinal Health’s strategic priority of offering the most complete and integrated suite of services to meet the needs of our Integrated Delivery Network, hospital and other customers.”
Clay Richards, CEO of naviHealth, and his team will stay on to run the company and report up Petras. Cardinal executives say naviHealth will be accretive to the earnings of their medical segment, which in fiscal 2015 posted a segment margin of 3.8 percent on revenues of more than $11 billion.
As originally reported:
Milt Capps on Monday afternoon reported that medical products and services distribution giant Cardinal Health appears to be on the verge of buying local post-acute care manager naviHealth in a deal that could be worth as much as $400 million.
A Federal Trade Commission filing — check it out here — shows the deal clearing a notable regulatory hurdle. Buying naviHealth would be Cardinal's second major 2015 move involving a Middle Tennessee company: In April, the $103 billion-revenue company (Ticker: CAH) snapped up Metro Medical Supply.
SEE ALSO: A news release Monday from naviHealth saying it has extended its contract with a large Wisconsin health plan
California-based acute hospitalist and post-acute provider organization IPC Healthcare has announced it has entered into an alliance with naviHealth of Nashville in a deal for which terms were not disclosed in a release.
IPC, through its subsidiaries and affiliates, will provide clinical and other care coordination services for the BPCI initiative in collaboration with naviHealth.
Read more here.
Post-acute care management company naviHealth has been chosen by national long-term care player HCR ManorCare to help it better analyze its data, coordinate its services and cut hospital readmissions. Ohio-based HCR runs more than 500 facilities around the country and employs some 56,000 people.
POSTDATA: WARRANTY DEEDS