Rumors surfaced last week that Nashville-based NaviHealth, a portfolio company of Welsh, Carson, Anderson & Stowe, was about to be acquired by Cardinal Health (NYSE: CAH). Our friend in Nashville, Milt Capps, published the story on his Venture Nashville Connections blog on August 24. Sure enough, the story was verified on August 25 when Cardinal issued a FAQ statement about the $290 million deal. What does a medical products distributor like Cardinal see in a post-acute care coordinator like NaviHealth? Quite a lot, since its sweet spot is managing bundled payments in the post-acute continuum of care. The acquisition of even 71% of NaviHealth gives Cardinal Health scale and the strategic benefits of being a first-mover in this rapidly developing area. CAH plans to acquire the remaining 29% from NaviHealth management and Welsh, Carson in the next four years.