Edison, New Jersey-based Vital Decisions specializes in end-of-life care.
Arlington, Virginia-based Evolent Health has announced its planned $130 million purchase of Vital Decisions, an Edison, New Jersey-based telehealth company that specializes in end-of-life care.
Under the deal, which is expected to close by the end of the year, Evolent will acquire 100% of the outstanding equity interests in Vital Decisions for $85 million, comprised of 50% Evolent Class A common stock and 50% cash, and another $45 million in cash or in a mix of cash and Evolent Class A common stock, tied to metrics at the end of 2022.
"We believe Vital Decisions is a strong strategic fit for Evolent," Evolent Health CEO Seth Blackley said. "We believe this transaction… unlocks patient engagement and telehealth as levers for ensuring patients with complex illness receive high-quality, coordinated care."
When the deal is finalized, Vital Decisions, currently a portfolio company of WindRose Health Investors, will be brought under Evolent's Clinical Solutions subsidiary, and will report to Evolent's management company, New Century Health.
"Cancer and heart disease account for more than 50% of deaths in the United States and drive a substantial portion of health care services at the end of life," New Century Health CEO Dan McCarthy said.
"The addition of Vital Decisions to New Century Health will help ensure that the care plans for these and other individuals facing advanced illness align with their core values and personal preferences, adapting with patients as their needs and goals evolve," he said.
Vital Decisions CEO Leah Puccio said that "up to 35% of costs in the last six months of life are for services that are unwarranted or unwanted—decreasing patient satisfaction and quality while increasing costs to the system."
"Addressing this misalignment of treatment goals between patients and providers requires multiple innovative solutions coming together," Puccio said. "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."
“We believe this transaction… unlocks patient engagement and telehealth as levers for ensuring patients with complex illness receive high-quality, coordinated care.”
Seth Blackley, CEO, Evolent Health.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
KEY TAKEAWAYS
Evolent will acquire 100% of the outstanding equity interests in Vital Decisions for $85 million, comprised of 50% Evolent Class A common stock and 50% cash.
Another $45 million in cash or in a mix of cash and Evolent Class A common stock will be tied to profit metrics at the end of 2022.
When the deal is finalized, Vital Decisions will be brought under Evolent's Clinical Solutions subsidiary, and will report to Evolent's management company, New Century Health.