Signify Health (NYSE: SGFY) — a value-based platform that leverages analytics and technology to divert care into the home — recently went public, impressing in its stock market debut by posting a market capitalization of $7.12 billion.
With a few months underneath its belt as a publicly traded company, Dallas-based Signify, a New Mountain Capital portfolio company, believes it’s primed to be on the cutting-edge of the overall shift of care into patients’ homes.
“We believe we are at the forefront of the movement to value-based care with payers and provider partners across the whole continuum of care, activating the home as a key part of that continuum,” Kyle Armbrester, the CEO of Signify Health, said on the company’s Q4 earnings call Thursday. “We believe a focus of this movement is the shift from traditional facility-centric, fixed-rate, fee-for-service models toward a preventative, holistic model [that is] increasingly at an individual’s home.”
Signify works with both health plans and health systems to support value-based payment in care plans. The company leverages its data and about 9,000 providers across the country to do so.
“We believe Signify Health has become an integral partner for our customers and their success as they aim to participate — and thrive — within the value-based care arena,” Armbrester said. “We’re the engine helping empower and create value-based payment programs. And by helping them to drive better patient outcomes — and capture revenue through more efficient and effective management of care — we become a critical driver of their long-term success.”
Signify Health is not a home health company. In fact, it doesn’t employ a single home health aide. Instead, it simply “activates” the home as a key site in the care continuum through its provider network, which is made up of doctors, nurse practitioners and physician assistants.
Collectively, those providers go into over 1 million unique homes, facilities and community organizations.
The company’s 2020 Q4 revenue totaled $193.5 million, a 45% increase compared to $133.3 million during the same quarter in the previous year. Signify’s revenue totaled $610.6 million in all of 2020, an increase of over 21% compared to $501.8 million in 2019.
Specifically, for one of its largest segments — the home- and community-based services segment — the company’s revenue increased 65% year over year in Q4, from $90 million in 2019 to $148.8 million in 2020.
Signify’s home- and community-based services segment is characterized by hour-long home visits, where 240 data points are tracked to get a comprehensive assessment of the patient. The findings are then shared with the patient’s primary care physicians or other specialists to provide a “holistic view of the patient, including their clinical, social and behavioral needs.”
Signify’s team completed about 1.4 million in-home health evaluations just last year.
The company has also improved its saving capabilities, executives noted. In 2020, the company drove a savings rate of 7.3%, which is up from 5.3% in the year prior.
“This was a great result as we worked with our provider partners to continue driving positive patient outcomes throughout the pandemic, creating shared savings and delivering value-based payments that have been crucial for many of these providers,” Armbrester said.
Signify has also recently created two oncology support programs and contracted with Superior HealthPlan to enter it into a new territory: the Southwest. Moving forward, the company has a goal in mind, which is to go deeper in the places it already exists.
“As we expand our commercial episodes of care product, our goal is not to be everywhere in a shallow way, but instead to go deep into specific regions and use our network effect to stack value-based payment programs by adding providers and new risk-bearing entities such as employers … and health plans in a particular market,” Armbrester said.
Signify has been interested in driving care to the home since before the pandemic. But since that shift has been accelerated, so has the company’s mission.
Additionally, less than 20% of Medicare spending is value-based, according to professional liability insurer Coverys. While value-based care — and shifting care into the home generally — is having a moment in the spotlight, there’s still a long way to go.
“I think a lot of folks are excited about our model, which brings in connected devices, social determinants of health and closes a lot of gaps in care,” Armbrester said. “When we detect the condition or detect [a patient] that needs help, 90% of the time we go inside of the home. And so I think it’s twofold. One, you’re seeing more value. But No. 1, they’re seeing home as a place that’s more stable and where folks are preferring to get care delivered now.”
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