Anthem, Inc. To Acquire myNEXUS, Home Health Benefits Manager
Anthem, Inc. (NYSE: ANTM) has announced plans to acquire myNEXUS, Inc., a home-based nursing management company serving 1.7 million Medicare Advantage members across 20 states. This strategic move aims to enhance Anthem's integrated care delivery by leveraging myNEXUS's technology and clinical support services. The acquisition, expected to finalize in Q2 2021, will facilitate improved patient outcomes and satisfaction. Financial details remain undisclosed, but Anthem's 2021 EPS guidance stays unchanged.
- Acquisition enhances Anthem's integrated care services.
- myNEXUS's platform is expected to improve patient outcomes and reduce readmissions.
- Access to myNEXUS's established network of high-quality home health providers.
- Financial terms of the acquisition were not disclosed, creating uncertainty.
- Integration challenges may arise from merging operations and cultures.
Anthem, Inc. (NYSE: ATNM) today announced that the company has entered into an agreement to acquire myNEXUS, Inc. (“myNEXUS”), a comprehensive home-based nursing management company for payors. myNEXUS delivers integrated clinical support services for approximately 1.7 million Medicare Advantage members across 20 states.
“Providing timely care for members in their homes allows for both excellent personalized care as well as the comfort of being in preferred environments,” said Prakash Patel, M.D., Anthem Executive Vice President, and President, Anthem Diversified Business Group. “Bringing the right level of whole person care into the home has been demonstrated to improve outcomes, reduce readmissions and improve members’ and their family’s experience of wellbeing.”
myNEXUS deploys a user-friendly platform for providers to highly automate the home visit authorization process, speed time to care, increase provider effectiveness and improve member satisfaction. The digital platform combines an advanced analytic rules engine, with a clinical staff of over 250 clinicians to effectively plan for and to optimize home care. Additionally, myNEXUS has established a nationwide network of high performing home health providers and nurse agencies including nine of the top ten highest quality national and local providers.
Juan Vallarino, CEO of myNEXUS, said, “The myNEXUS team is thrilled to be partnering with Anthem to build upon the value we deliver to our customers and their members. The strength of Anthem’s Diversified Business Group platform will allow us to broaden our capabilities as we strive to transform how quality healthcare is delivered to the people we serve.”
This transaction aligns with Anthem’s strategy to manage integrated, whole person multi-site care and support, by providing national, large-scale expertise to manage nursing services in the home and facilitate transitions of care. The myNEXUS solution and network will enhance Anthem’s continued expansion to deliver care for members in a coordinated manner, leveraging both high touch support and technology driven capabilities.
Anthem is acquiring myNEXUS from an investor group led by WindRose Health Investors, a New York-based healthcare private equity firm. The acquisition is expected to close in the second quarter of 2021 subject to customary closing conditions. Upon closing, myNEXUS will operate as a wholly-owned subsidiary of Anthem and will join Anthem’s Diversified Business Group. Financial terms of the transaction were not disclosed. The company’s 2021 EPS guidance remains unchanged as a result of this acquisition. Anthem’s legal advisors are White & Case LLP and Faegre, Biddle, Drinker & Reath LLP. Latham & Watkins LLP and Waller Lansden Dortch & Davis, LLP are acting as legal advisors for myNEXUS.
About Anthem, Inc.
Anthem is a leading health benefits company dedicated to improving lives and communities, and making healthcare simpler. Through its affiliated companies, Anthem serves more than 107 million people, including approximately 43 million within its family of health plans. We aim to be the most innovative, valuable and inclusive partner. For more information, please visit www.antheminc.com or follow @AnthemInc on Twitter.
About myNEXUS, Inc.
myNEXUS is a post-acute benefits management company focused on delivering innovative home and community-based product offerings. myNEXUS provides comprehensive management services to health plans and other risk-bearing organizations on an at-risk or fee-for-service basis for total medical expense related to Integrated Home Health, Stars Performance Improvement Program, Social Determinants of Health, Inpatient Avoidance and Clinical Programs.
Forward-Looking Statements
This document contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our views about future events and financial performance and are generally not historical facts. Words such as “expect,” “feel,” “believe,” “will,” “may,” “should,” “anticipate,” “intend,” “estimate,” “project,” “forecast,” “plan” and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to: financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. You are cautioned not to place undue reliance on these forward- looking statements that speak only as of the date hereof. You are also urged to carefully review and consider the various risks and other disclosures discussed in our reports filed with the U.S. Securities and Exchange Commission from time to time, which attempt to advise interested parties of the factors that affect our business. Except to the extent otherwise required by federal securities laws, we do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof. These risks and uncertainties include, but are not limited to: the impact of large scale medical emergencies, such as public health epidemics and pandemics, including COVID-19, and catastrophes; trends in healthcare costs and utilization rates; our ability to secure sufficient premium rates, including regulatory approval for and implementation of such rates; the impact of federal and state regulation, including ongoing changes in the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, as amended (collectively, the “ACA”) and the ultimate outcome of legal challenges to the ACA; changes in economic and market conditions, as well as regulations that may negatively affect our liquidity and investment portfolios; our ability to contract with providers on cost-effective and competitive terms; competitive pressures and our ability to adapt to changes in the industry and develop and implement strategic growth opportunities; reduced enrollment; unauthorized disclosure of member or employee sensitive or confidential information, including the impact and outcome of any investigations, inquiries, claims and litigation related thereto; risks and uncertainties regarding Medicare and Medicaid programs, including those related to non-compliance with the complex regulations imposed thereon; our ability to maintain and achieve improvement in Centers for Medicare and Medicaid Services, or CMS Star ratings and other quality scores and funding risks with respect to revenue received from participation therein; a negative change in our healthcare product mix; costs and other liabilities associated with litigation, government investigations, audits or reviews; the ultimate outcome of litigation between Cigna Corporation and us related to the merger agreement between the parties and the potential for such litigation to cause us to incur substantial additional costs, including potential settlement and judgment costs; risks and uncertainties related to our pharmacy benefit management (“PBM”) business including non-compliance by any party with the PBM services agreement between us and CaremarkPCS Health, L.L.C.; medical malpractice or professional liability claims or other risks related to healthcare and PBM services provided by our subsidiaries; general risks associated with mergers, acquisitions, joint ventures and strategic alliances; possible impairment of the value of our intangible assets if future results do not adequately support goodwill and other intangible assets; possible restrictions in the payment of dividends from our subsidiaries and increases in required minimum levels of capital; our ability to repurchase shares of our common stock and pay dividends on our common stock due to the adequacy of our cash flow and earnings and other considerations; the potential negative effect from our substantial amount of outstanding indebtedness; a downgrade in our financial strength ratings; the effects of any negative publicity related to the health benefits industry in general or us in particular; failure to effectively maintain and modernize our information systems; events that may negatively affect our licenses with the Blue Cross and Blue Shield Association; the impact of international laws and regulations; changes in U.S. tax laws; intense competition to attract and retain employees; and various laws and provisions in our governing documents that may prevent or discourage takeovers and business combinations.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210324005316/en/
FAQ
What is the purpose of Anthem's acquisition of myNEXUS?
When is Anthem expected to finalize the acquisition of myNEXUS?
What impact will the acquisition have on Anthem's financial guidance?
How will myNEXUS contribute to Anthem's operations?
What kind of services does myNEXUS provide?
