The payer is teaming up with private equity firm Clayton, Dubilier & Rice on the joint venture.
Elevance Health is following its competitors into the primary care arena with its own model.
The insurer and its private equity partner Clayton, Dubilier & Rice introduced Mosaic Health months after announcing plans in April, allowing Elevance to expand its reach with a primary care network in a similar vein as its peers.
The joint venture will combine the capabilities of CD&R’s portfolio companies, apree health and Millennium Physician Group, with the advanced primary care solution of Elevance’s Carelon Health added into the mix once it receives regulatory approval.
Through Mosaic, Elevance will be able to deliver a community-based care model supported by unique digital patient engagement, care coordination, and navigation capabilities, according to the announcement.
"Mosaic Health will innovate on existing risk-based care delivery models, and I am excited to work closely with its operating companies and Elevance Health to foster collaboration and help Mosaic Health's operating companies better serve our providers and deliver exceptional care and services to more patients and communities," CD&R operating partner Clay Richards, who will serve as Mosaic Health executive chairman, said in the news release.
"Mosaic Health demonstrates CD&R's continued commitment to investing in and growing innovative healthcare companies that increase access to high-quality and affordable healthcare, and we are excited for this new chapter of innovation, expanded access and growth."
The primary care space is littered with retailers and disruptors trying their hand but running into difficulties scaling.
Yet payers like CVS Health continue to double down on primary care expansion due to confidence in their ability to leverage their health plans. Insurers can guide patients to their primary care network and reap more profit by taking a comprehensive, whole-health approach.
Mosaic will allow Elevance to offer its health plans alongside Medicare, Medicaid, and commercial plans, serving nearly one million patients across 19 states through apree and Millennium, according to the news release.
If Carelon’s assets are approved to enter the venture, Elevance will be able to utilize the clinics of its care delivery business to push Mosaic.
Jay Asser is the CEO editor for HealthLeaders.
KEY TAKEAWAYS
Elevance Health and Clayton, Dubilier & Rice unveiled primary care model Mosaic Health, giving the insurer a greater presence in primary care to compete with fellow payers.
Mosaic will comprise of apree health and Millennium Physician Group, along with Carelon Health when it secures regulatory approval.
Payers have recently fortified and expanded their position in primary care as they seek to control more of the patient journey.