Cardinal Health to buy NaviHealth for $410m

Cardinal Health (NYSE:CAH) said it paid $290 million for a majority stake in post-acute care management firm NaviHealth, in a 4-year deal worth $410 million.

The $290 million payout gives Dublin, Ohio-based Cardinal a 71% share in NaviHealth, the company said. NaviHealth’s Brentwood, Tenn.-based management team will continue to lead the business and principal investor Welsh, Carson, Anderson & Stowe will hold on to its stake, Cardinal Health said.

NaviHealth serves nearly 2 million health plan members and mroe than 75 partner hospitals and physician groups, the company said.

“Discharge and post-acute care coordination is critical for both hospital CEOs and their patients, as care is increasingly delivered in alternative sites and payment models shift the focus to patient outcomes rather than activity,” Cardinal Health at Home president Michael Petras said in prepared remarks. “The acquisition of naviHealth aligns with Cardinal Health’s strategic priority of offering the most complete and integrated suite of services to meet the needs of our Integrated Delivery Network, hospital and other customers.”

“As one of the most trusted companies in health care, we believe Cardinal Health represents an ideal owner of naviHealth as we continue to focus on our mission of improving outcomes across the post-acute care continuum,” added NaviHealth CEO Clay Richards. “Bolstered by Cardinal Health’s unmatched distribution channel and diverse suite of clinical products and services, we believe that we have the opportunity to significantly accelerate the growth of our business and expand our value proposition for our partners.”

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