naviHealth, a Brentwood, Tennessee-based manager of post-acute benefits for health plans, received an investment from Clayton, Dubilier & Rice and Cardinal Health, Inc. (NYSE: CAH)
According to terms of the deal, whose amount was not disclosed, CD&R will acquire about a 55% ownership stake in naviHealth while Cardinal Health will retain an approximate 45% stake in the company. Ron Williams, operating advisor to CD&R funds and former chairman and chief executive officer of Aetna, will become chairman of the naviHealth board. Cardinal Health and CD&R will each appoint three additional directors for a total of eight directors on the naviHealth board.
Led by CEO Clay Richards, naviHealth is a large manager of post-acute benefits for health plans and a value-based care partner to health systems and providers. The company partners with health plans, hospital systems, at-risk physician groups, and other healthcare providers to manage post-acute care as part of value-based care programs. Through its proprietary technology platform, naviHealth utilizes evidence-based protocols and dedicated clinical staff to quantitatively track patient recoveries, manage hospital discharges, reduce readmissions and support efficient clinical decision-making
The company currently serves more than two million insured members and manages care transitions for approximately 800 acute hospitals and 11,000 post-acute care facilities nationwide.
The transaction is expected to close in the third quarter of calendar 2018 subject to customary closing conditions.