As more payers scoop up providers, the Cigna Group prefers to partner with provider groups, rather than own them outright, Eric Palmer, CEO of Evernorth, Cigna's healthcare services arm, said.
Speaking to investors at the JPMorgan Healthcare Conference Jan. 9, Mr. Palmer said the company is focused on forming strategic relationships, like its minority ownership in VillageMD.
"All of that's done in a way we don't have to own the clinic, where we don't have to directly employ the primary care physician," Mr. Palmer said. "We think it's important to recognize we'll never be able to own the best of everything in every market. It's much better to have an open ecosystem that can connect effectively to the right partners, to the right vendors, to bring about the best health outcomes."
David Cordani, CEO of the Cigna Group, said the company is focused on acquisitions in a few key areas, including home health, behavioral and virtual care.
"We're picking certain platforms where we seek to own that are valuable, but then we seek to wrap it around the physical medical professional," he said.
In December, a rumored merger between Humana and Cigna fell through. In a Dec. 10 news release, Mr. Cordani said the company would consider "bolt-on acquisitions" and "value-enhancing divestitures."
In his remarks, Mr. Cordani did not directly address questions on the abandoned merger or reported deal to sell the company's Medicare Advantage business to Health Care Service Corp., but he did say the company has historically looked to bolster its government benefits and health services business.
"We've historically called those out as two areas we'd like to augment with additional M&A, but we like our portfolio and it's performing well. Do we think a deal can get done in our space? It depends on the deal itself," Mr. Cordani said.