Startup Signify Health Valued at $5.4B for Medicare Advantage Risk Adjustment?

Signify Health Made its IPO on Feb. 11, 2021 at a Valuation of $5.4 Billion. Signify Health Had Revenue of $502 Million in 2019.

Signify Health is Labeled as a 'Value-Based Healthcare Platform,' but What It Really Does is Contract with Medicare Advantage Insurance Companies to Visit Their Beneficiaries in Their Homes and Document Their Diseases.

Medicare Advantage Plans are Paid More Money by the Federal Government the 'Sicker' Their Beneficiaries Are, Which is Referred to as 'Risk Adjustment.'

Signify Health Performs the Assessments Necessary to Justify Those Higher Payments.

Signify Health Was Formed in 2018 from the Merger of Censeo Health and Advance Health.

Censeo Health Had a Whistleblower Lawsuit in 2014 for Alleged Exaggeration of Diagnoses and Not Performing Any Treatment During the Home Visits. The Case was Settled in 2018.

Other Medicare Advantage Plans Have Been Scrutinized for Exaggerated Home Assessments in Order to Boost Risk Adjustment Payments. Cigna is Currently Being Sued by the Department of Justice for $1.4 Billion for a Similar Offense.

Signify Health's High Valuation in an Industry Under Federal Investigation Deserves Attention.

**Note: I Have No Long or Short Investment in Signify Health.

Sources: https://www.wsj.com/articles/censeohe... https://www.npr.org/sections/health-s... https://assets.hcca-info.org/Portals/... https://www.fiercehealthcare.com/paye... https://www.mobihealthnews.com/news/s... https://seekingalpha.com/article/4403... https://www.healthcaredive.com/news/d...

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