Elevance Health will enter a partnership with private equity firm Clayton, Dubilier & Rice to develop advanced primary care models.
The joint effort will operate across multiple states and commercial, individual, Medicare and Medicaid markets, according to an April 15 news release. The payer-agnostic platform will serve more than 1 million members, the companies said.
The deal is financed primarily "through a combination of cash and our equity interest in certain care delivery and enablement assets of Carelon Health," according to the news release. The two companies did not disclose the financial terms of the deal, and it is not expected to have a material impact on Elevance's 2024 earnings.
The partnership will bring together two CD&R assets, digital platform Apree Health and Florida-based provider group Millennium Physician Group, and Carelon Health. Several Carelon Health clinics, part of Elevance Health, will provide care to members with chronic and complex conditions.
"By bringing a new model of advanced primary care to markets across the country, our partnership with CD&R will create a win-win for consumers and care providers alike," Bryony Winn, president of health solutions at Elevance Health, said in the news release.
Elevance Health has ramped up investments in Carelon, its health services arm, in recent years. The company has acquired several specialty care businesses in the last two years.