The acquisition positions CareBridge as a core component of Carelon's home health portfolio, expanding the reach of value-based care to individuals with complex and chronic conditions.

Elevance Health has announced plans to acquire value-based home healthcare company CareBridge in a transaction reportedly valued at $2.7 billion. 

This strategic move is set to bolster Elevance's Carelon division, which integrates diverse healthcare services under one roof. 

The acquisition positions CareBridge as a core component of Carelon's home health portfolio, expanding the reach of value-based care to individuals with complex and chronic conditions.

Gail Boudreaux, CEO of Elevance Health, said, "CareBridge will serve as the foundation for Carelon's home health business, and we're excited to continue to serve all its customers and members." 

The Nashville Business Journal, based in CareBridge’s headquarters city, noted the company’s rapid growth in the region, calling it the "fastest growing" healthcare company in Tennessee.

Value-Based Home Healthcare

Founded in 2019, CareBridge was established by Brad Smith, former Director at the Center for Medicare and Medicaid Innovation, and former US Senator Bill Frist. 

Operating in 17 states and the District of Columbia, the company has grown swiftly by offering in-home, value-based healthcare focused on individuals with high healthcare needs. CareBridge’s model includes services for patients requiring complex care, delivered in both home and community-based settings.

The addition of CareBridge will strengthen Carelon, which already comprises Elevance's pharmacy benefit management, behavioral health, and digital healthcare services. The goal, according to Boudreaux, is to enhance Carelon’s role in managing a larger proportion of healthcare spending. 

"Carelon Services is expanding its capabilities to manage a growing proportion of healthcare spending, supporting the long-term growth of the business and by extension, the value it creates for health plan customers," she remarked.

Through its partnerships with the National Managed Long-Term Services and Supports (MLTSS) Health Plan Association and the Association for Community Affiliated Plans, CareBridge has secured its role as a key player in value-based care delivery. 

These alliances align with Elevance's intention to integrate more holistic, person-centered healthcare solutions, focusing particularly on high-need patient groups.

Carelon Division’s Ongoing Growth

The Carelon division represents a critical growth area for Elevance Health. By adding CareBridge’s services, Elevance seeks to broaden its spectrum of in-home healthcare options while enhancing capabilities in managing healthcare costs through value-based models. 

While financial specifics beyond the $2.7 billion price tag remain undisclosed, the acquisition of CareBridge underscores Elevance’s ambition to shape the home healthcare market, particularly within its Carelon division. 

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