Signify Health goes public in upsized IPO

Signify Health leadership rang the opening bell on Thursday after going public. The company is now listed on the New York Stock Exchange under the ticker “SGFY.” Photo credit: NYSE

Signify Health, a company coordinating value-based care services, went public in an upsized IPO.

It priced its stock at $24 per share, above its expected range of $20 to $21 per share. The company began trading Thursday on the New York Stock Exchange under the ticker “SGFY.”

The Norwalk, Conn.-based company helps coordinate care between payers, healthcare providers and community organizations. It raised a total of $564 million in the IPO which it plans to put toward building out its technology and value-based care business.

“We’re really excited about this move for Signify; we think it’s a great reflection of the work that we’ve done,” Chief Product Officer Peter Boumenot said in a phone interview. “We’re continuing to focus on bringing together new participants into value-based payment arrangements. Going public allows us to invest in our business in strategic ways.”

Signify, which was founded in 2009, currently works with 27 of the 50 largest Medicare Advantage plans to conduct in-home evaluations for patients, including Humana, Optum, and Oak Street. Last year, the company conducted 1.4 million of these visits, with its team of roughly 9,000 providers.

After merging with Remedy Partners in 2019, bundled payments became another big part of Signify’s business. That year, it managed $6.1 billion of spend under the Medicare Bundled Payment for Care Improvement Advanced (BPCI-A) program, which bundles together the costs of an individual care episode.

The company bring together payers, health systems, employers and long-term care facilities, to ensure incentives are aligned in managing the patient’s care for that episode. Signify’s care coordinators are also able to help patients recover from home, and connect them to community organizations to support their social needs.

“We’ve seen really positive growth in both sides of our business over the last couple of years,” Boumenot said. “The last 12 months have only accelerated the transition to value-based care.”

The company brought in $417 million in revenue between January and September 2020, a 13% increase from 2019. It reported a $15 million net loss in the first nine months of 2020, compared to a $20 million net loss during the same period in 2019, according to an S-1 filing.

The biggest transition for the company, like many others, was the shift to virtual visits. While it was able to offer virtual in-home evaluations, as hospital volumes decreased last year, Signify managed fewer care episodes in 2020, according to the filing.

“The biggest thing we saw over the course of the pandemic was the continued shift to the home, and it’s pretty prevalent now, but the rise of telehealth as a modality to reach folks,” Boumenot said. “We’ve been pretty successful in navigating that transition. Now, we’re conducting our work face-to-face as well as virtually via our telehealth offering.”

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