In a strategic move aimed at enhancing its capabilities in delivering specialized medical services, Elevance Health has recently inked an agreement to acquire Paragon Healthcare, a reputable company specializing in infusible and injectable therapies. The transaction, finalized late last week, signifies Elevance Health’s commitment to providing affordable and convenient access to specialty medications and services for individuals grappling with chronic and complex illnesses.
Paragon Healthcare, a stalwart in the field with over two decades of experience, employs an omnichannel model, offering infusion services through ambulatory infusion centers, home infusion pharmacies, and other specialized pharmacy services. Headquartered in Plano, Texas, the company serves a diverse patient base with a wide array of chronic and acute conditions.
Pete Haytaian, Executive Vice President of Elevance Health and President of subsidiary Carelon, expressed enthusiasm about the acquisition, stating that it will deepen the organization’s capabilities and expand choices for members in terms of site-of-care options. The aim is to eliminate barriers to care and provide comprehensive support for members’ overall well-being.
The financial details of the transaction were not disclosed.
Impact on Paragon Healthcare’s Operations
Paragon Healthcare, currently serving over 35,000 patients across eight states through more than 40 ambulatory infusion centers and in patients’ homes, plays a crucial role in treating over 300 health conditions. The company’s 24/7 on-call support ensures continuous care for its patients.
Following the acquisition, Elevance Health plans to expand Paragon Healthcare’s geographical footprint and operations while enhancing its therapeutic coverage. The company remains committed to maintaining Paragon Healthcare’s high standards of customer service.
After the completion of the acquisition, Paragon Healthcare will operate as part of CarelonRx, the pharmacy-services segment within Carelon, Elevance Health’s health services division.
The closing of the acquisition is contingent upon customary conditions and is expected to conclude in the first half of 2024. Elevance anticipates that the acquisition will not have a material impact on adjusted earnings per share in 2024.
Larger Trend and Background
Elevance Health, formerly known as Anthem, rebranded last year. This acquisition follows Elevance’s foray into the specialty pharmacy sector in the early part of the previous year with the acquisition of BioPlus. BioPlus specializes in offering a range of pharmacy services for patients grappling with complex and chronic conditions.
Elevance’s strategic move aligns with its whole health-focused approach, leveraging both medical and pharmacy data to deliver proactive insights for patients. The financial results for the fourth quarter of 2023 are yet to be disclosed, but the third quarter showed a profit of $1.3 billion, with overall revenue climbing year over year to $42.5 billion.
The increase in revenue was primarily attributed to higher premium revenue in the health benefits business and growth in pharmacy product revenue in CarelonRx. The latter was driven by the expansion of external pharmacy members served and the acquisition of BioPlus in the first quarter, indicating a positive trajectory for Elevance Health in the evolving healthcare landscape.
