Evolent Health Inc. (NYSE: EVH) is back in acquisition mode.
The Arlington health system consultancy has agreed to acquire Vital Decisions LLC, an Edison, New Jersey, company that provides technology-based health care planning services, especially those connected to end-of-life, for $85 million, the companies said Wednesday.
Evolent will pay $42.5 million in cash and the remainder in Evolent stock for Vital Decisions, which is owned by WindRose Health Investors. The deal also includes a $45 million earn-out provision to be paid if Vital Decisions hits certain profitability milestones by the end of 2022.
The transaction is expected to close by Nov. 1.
Vital Decisions will report to New Century Health, Evolent’s specialty care management company that focuses on improving outcomes for patients with cancer and heart disease.
"We believe Vital Decisions is a strong strategic fit for Evolent, as it adds patient engagement capabilities to New Century Health that should deliver strong clinical and financial outcomes, and presents two-way cross-sell opportunities," said Evolent Health CEO Seth Blackley in a statement.
Vital Decisions estimates that 35% of costs in patients’ last six months of life are for procedures that are “unwarranted or unwanted,” which increases costs within the health care system and decreases patient satisfaction.
"This acquisition will help ensure that the care plans created by our Vital specialists find their way into the hands of the providers responsible for ensuring these individuals receive the care they want as their illness progresses,” said Vital Decisions CEO Leah Puccio in a statement.
Evolent’s acquisition comes a little more than a year after it sold its stake in Passport Health Plan to Long Beach, California's Molina Healthcare Inc., and less than a year after it sold subsidiary True Health New Mexico Inc. to national health plan provider Bright HealthCare.
The Arlington company announced some other deals along with its second-quarter earnings report Wednesday. It has partnered with two new providers, Bond Clinic in Florida and Patient Physician Network in Texas, and expanded its work in Texas with another unnamed national payer.
It also signed a deal to provide its New Century Health Performance Suite for cardiology to Molina Healthcare of Ohio, Evolent said.
Evolent pulled in $222 million in revenue in the second quarter, up 2.2% from the same quarter of 2020. It ended the quarter on a net loss of $9.1 million, though that was a vast improvement from the net loss of $203.5 million in the second quarter of 2020. The company had $207.3 million in cash and cash equivalents as of June 30.
Verbatim
“We are excited to welcome everyone back wearing their Burgundy & Gold. However, Native American inspired ceremonial headdresses or face paint may no longer be worn into the stadium.” — The Washington Football Team in a statement released Wednesday about updated stadium policies at FedEx Field for the 2021 season. In previous seasons, fans would wear makeup and costumes that reflected the team's former name, which it dropped in July 2020. The team also announced tailgating is returning to stadium parking lots and that FedEx Field will move to a cashless system for concessions. Face coverings are recommended for attendees unvaccinated against Covid, while they will be optional for those who have received a vaccine. The mask guidelines are subject to change.
Odds and ends
- Maryland Gov. Larry Hogan said reinstating a statewide mask mandate is not on the table. (Baltimore Sun)
- Montgomery County is posed to reinstate an indoor mask mandate. (WTOP)
- D.C. Attorney General Karl Racine is implementing a vaccination mandate for his office's employees. (DCist)
- Virginia Sens. Mark Warner and Tim Kaine are asking Senate leadership to provide more relief to the restaurant industry. (Richmond Times-Dispatch)
- As a thank you to Greater Washington, former Nationals ace Max Scherzer and his wife Erica are covering pet-adoption fees at the Humane Rescue Alliance for a week. Max Scherzer was traded to the Los Angeles Dodgers last week. (Washingtonian)
- Twenty-time Grand Slam champion Rafael Nadal is falling in love with D.C. while he’s in town to compete in the Citi Open. Nadal defeated Jack Sock in his first match of the event on Wednesday. (DCist)
