Indianapolis-based Elevance Health announced on January 4 that it entered into an agreement to acquire Paragon Healthcare, Inc., headquartered in Plano, Texas.
Since its founding in 2002, Paragon Healthcare has provided infusion services to patients through its omnichannel model of ambulatory infusion centers, home infusion pharmacies and other specialty pharmacy services. The company serves more than 35,000 patients at more than 40 ambulatory infusion centers across 8 states as well as patients’ homes. The company helps treat more than 300 health conditions with 24/7 on-call support.
Elevance Health, formerly Anthem, Inc., connects consumers, families and communities to the care, support and resources they need to lead healthier lives. Its companies serve more than 119 million people through a portfolio of medical, digital, pharmacy, behavioral, clinical and complex care solutions. According to its full-year financial report for 2022, Elevance’s annual operating revenue was $155.7 billion, and annual EBITDA was approximately $10.3 billion.
Following the acquisition, Elevance Health will look to expand Paragon Healthcare’s geographical footprint and operations while bolstering its therapeutic coverage. Elevance Health will also remain committed to the company’s leading customer service approach. Once integrated, Paragon Healthcare patients who receive both medical and pharmacy benefits from Elevance Health’s subsidiaries will benefit from the company’s ability to leverage medical and pharmacy data to deliver proactive, whole health insights.
After the acquisition closes, Paragon Healthcare will operate as part of CarelonRx, the pharmacy services segment within Carelon, Elevance Health’s health services division. The acquisition is subject to customary closing conditions and is expected to close in the first half of 2024; it is not expected to have a material impact on adjusted earnings per share in 2024. Financial terms of the deal were not disclosed.
According to data captured in the LevinPro HC database, this transaction marks the first infusion services acquisition of 2024. There were eight infusion services deals announced during 2023, a slow year compared to the 32 announced during 2022.
