Accolade to Acquire PlushCare
Accolade announced that it has signed a definitive agreement to acquire PlushCare, a leading provider of virtual primary care and mental health treatment. Together, the two companies intend to provide more seamless consumer access to care for acute, chronic, and preventative health needs, whether delivered virtually with PlushCare or through Accolade’s advocacy and navigation solutions that support in-person consultation. The addition of a primary care team will extend Accolade’s ability to improve clinical health outcomes for its members and deliver additional cost savings for employers.
“Healthcare is personal, and the connection between physician and patient is the single most important factor in improving outcomes. PlushCare has successfully built a market-changing direct-to-consumer model with virtual capabilities that extend Accolade’s member engagement deeper into the healthcare experience,” said Accolade CEO Rajeev Singh. “Our mission is to reinvent healthcare, and this acquisition represents another important step toward realizing that goal.”
With the addition of PlushCare, Accolade will begin delivering care directly to its members. Accolade’s primary care physicians will be backed by Accolade’s full portfolio services. They will also have access to a data set that includes a 360-degree view of the member’s health, full visibility into the member’s benefits program, and access to AI-driven care recommendations through Accolade’s Intelligent Provider Matching platform, as well as the full support and scale of Accolade’s frontline care teams.
PlushCare has built a primary care network with access for consumers to highly skilled primary care and internist doctors and mental health experts. The team of physicians, trained at the top medical schools in the U.S. and with an average of 15 years’ experience, consults with patients by video call, orders and arranges prescription pickup, orders lab work, and fulfills all the regular duties of an in-person physician.
“Primary care doctors play a critical role in delivering preventive care and chronic disease management, areas of the healthcare system ripe for reinvention, reducing waste, and significantly lowering the overall cost of healthcare for everyone, said Ryan McQuaid, chief executive officer of PlushCare. “We are excited to join forces with Accolade to extend our services into their member base, while leveraging Accolade’s unique engagement model and vast data set to continually improve the way we service our customers.”
The addition of PlushCare expands Accolade’s addressable market nearly five-fold to more than $200 billion and creates new opportunities for long-term revenue growth. “We plan to invest in integration between our companies to maximize the value of our combined offerings, extend PlushCare’s offerings into Accolade’s traditional enterprise customer base, and continue to grow PlushCare’s core membership,” said Accolade Chief Financial Officer Steve Barnes.
The transaction is expected to close in early June, subject to customary closing conditions. Under the terms of the agreement, the purchase price of up to $450 million will consist of $40 million in cash, $340 million in Accolade common stock, and up to an additional $70 million of value payable upon the achievement of defined revenue milestones following the closing.
Read the full press release here.
See additional coverage in:
- Becker’s Hospital Review
- Built in Seattle: Article 1 | Article 2
- Fierce Healthcare
- Healthcare Dive
- Healthcare Innovation
- HIT Consultant
- MedCity News
- Mergers & Acquisitions
- Modern Healthcare
- MontCo Today
- Philadelphia Business Journal
- San Francisco Business Times
- Seeking Alpha
- STAT News
- The Philadelphia Inquirer