After Partnership With CD&R, Elevance Health Continues To Bet On Its Provider Services Arm

Elevance Health (NYSE: ELV) continues to point to its provider capabilities – which include home-based care services – as a strategic priority.

The company has partnered with the private equity firm Clayton, Dubilier & Rice (CD&R) on a primary care initiative that will bring together Carelon Health – Elevance Health’s provider arm – and apree health and Millennium Physician group, two CD&R-backed companies.

“CD&R’s collaboration with Elevance Health is an important step in our ongoing investment focus to accelerate innovation in care delivery across the country,” Clay Richards, a CD&R operating partner, said in a press release Monday. “We are excited to enter into this strategic partnership with Elevance Health and for what this effort can accomplish, drawing out the strengths of each of the three companies to improve the patient and physician experience for the communities they serve.”


The initiative specifically is aimed at taking a “whole health approach” to primary care, focused on patients’ physical, social and behavioral health needs.

Elevance Health Gail Boudreaux expanded on the partnership in her company’s first-quarter earnings call Thursday.

“We’re excited to collaborate with CD&R and a broad range of care provider partners to accelerate innovation, enhance healthcare experiences and improve health outcomes for consumers,” Boudreaux said. “The collaborative development of the business will advance our enterprise strategy by accelerating the provision of value-based care for our members and consumers more broadly, with our Carelon businesses providing capabilities to integrate and personalize the care delivered.”


Eventually, Elevance Health plans to fully own what comes of the partnership, and Boudreaux expects it to be a “leading platform for value-based care” across payer groups.

In the first quarter, Elevance Health posted operating revenue of $42.3 billion, which was a 0.9% year-over-year increase.

Carelon, on the other hand, brought in $12.1 billion in operating revenue in the first quarter, a $600 million or about a 5% year-over-year increase.

Elevance Health also recently bolstered its provider capabilities through the acquisition of Paragon Healthcare, an infusion provider that also delivers care in the home.

“In the first quarter, we made tangible progress on our strategic initiatives, notably in Carelon, where we continue to scale our flywheel for enterprise growth,” Boudreaux said. “Carelon closed its acquisition of Paragon Healthcare, a leading provider of infusion services. We are looking forward to expanding its geographic reach and therapeutic coverage to serve more consumers and Elevance Health members for years to come.”

Elevance Health certainly has its hands in home-based care across its portfolio, but has not yet fully dived in. 

Recent acquisitions and launched initiatives, however, could be a sign of things to come.

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