Signify Health Inc. (NYSE: SGFY) is encouraged to know that its clients are satisfied with its evaluations.
Specifically, clients are satisfied with the in-home evaluations that the company provides. Although virtual visits gained significant popularity amid the pandemic, patients see major upside to Signify’s in-person visits, CEO Kyle Armbrester said on a Q2 earnings call Wednesday.
“Virtual evaluations in the first half of this year continued to trend downward from 2020 pandemic levels,” Armbrester said. “We believe virtual evaluations will continue to play a role in the second half, but we’ve found that health plan members prefer our in-home evaluations, which can go much deeper in their assessments, including to determine social and behavioral needs, and perform diagnostic tests and other preventive services.”
Dallas-based Signify is a tech-enabled value-based care platform. The company partners with both health plans and health systems to deliver various types of care to patients in their homes.
Its home and community services (HCS) segment saw significant growth in Q2, again providing the majority of the company’s revenue.
The segment hauled in $175.4 million in revenue, a nearly 109% increase from the $84 million it posted last year over the same period. Overall, Signify’s revenue was $212.8 million in Q2, a nearly 63% increase compared to $130.7 million in Q2 2020.
“We provide access to social services to address those needs through a network of about 200 community-based organizations and delegated social workers,” Armbrester said. “And there’s been tremendous, continued demand for diagnostic and preventative tests in the home that have also contributed to our HCS results.”
Signify also recently announced that its “Transition to Home” program had been activated, which includes partnerships with over 50 hospitals in 12 states. The program allows Medicare patients to receive clinical and social care support as they transition from the hospital to the home in order to reduce readmissions and subsequent ER visits.
An examination of 800,000 episodes of care managed by Signify under Medicare’s Bundled Payments for Care Improvement (BPCI) initiative found that 44% of all readmissions occur past 30 days. That is why the “Transition to Home” program focuses on the 90 days following discharge.
“During this critical phase, our ‘Transition to Home’ solution provides evidence-based clinical and social care coordination services to patients,” Armbrester said. “These services are provided not just during the initial 30 days from discharge, which is the market standard, but rather for 90 days from discharge. Early results show this solution has a statistically significant effect on reducing rehospitalization rates.”
Signify also announced the growth of its current partnerships with payers, including Regence, which has a footprint of about 3.3 million members in multiple states in the Northwest part of the U.S.
“We are gaining traction in building provider networks and having productive conversations with plans, employers and providers,” Armbrester said. “As an example, along with Regence, we announced the Washington State Health Care Authority — [which includes] 363,000 members — joined the Regence episodes of care program effective Jan. 1, 2022.”
Within those episodes of care, Signify can help with maternity, oncology and substance abuse, in addition to its current offerings, Armbrester added.
Signify recently partnered with the Children’s Oncology Group (COG) to help deliver cancer care to pediatric patients in the comfort of their own homes.
Future M&A opportunities
After the growth reflected in the second quarter earnings, Signify is wide open to new opportunities in the form of partnerships or acquisitions.
“We may supplement our strong capabilities with acquisition or partnerships with other companies to add further functionality and innovation to our platform to drive increased value for our customers,” Armbrester said.
The company believes that its growth opportunities will come through M&A, but also through an expansion of its own services.
In addition to unique partnerships with groups like the COG, seriously expanding clinical pathways is more than possible over the next year, Signify executives believe.
“We want to expand clinical pathways and help … manage disease and risk, and think more creatively about the lives that we’re touching,” Armbrester said. “And I think we’ve got a really amazing opportunity to expand into that given all our tech investment, analytics and how broad our network is as well. Demand is as high as ever.”
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