Skylight Health and Collaborative Health Systems Announce Joint Venture to Partner on Value-Based CareTORONTO, ON & TAMPA, Fla. (April 5, 2022) – Skylight Health Group Inc. (NASDAQ:SLHG; TSXV: SLHG) (“Skylight Health” or the “Company”), a multi-state primary care management group in the United States, today announced a joint venture (“JV”) partnership with Collaborative Health Systems (CHS), a population health management services organization and wholly owned subsidiary of Centene Corporation (NYSE: CNC), to integrate essential value-based care (VBC) services into Skylight Health’s growing enterprise of primary care practices. The primary goal of the partnership is to establish the core necessities of a VBC program, which includes joint efforts in payor contracting, taking on risk within Medicare Advantage, and population health improvement, including data and analytics supporting care coordination and quality improvement programs. Denver, Colorado Springs, Harrisburg, and Jacksonville will be the initial markets to participate. Among the highlights:
- Skylight Health and CHS will partner to establish a VBC contracting framework across Florida, Pennsylvania, and Colorado
- Each state’s network of practices will benefit from strategic growth and planning, in Medicare fee-for-service ACOs, and Medicare Advantage, served through both Skylight Health and CHS
- The partnership combines CHS success in improving quality outcomes and lowering healthcare costs with Skylight’s aggressive growth within independent primary care practices
Overall, the joint venture will benefit from Skylight Health’s Medicare lives served in addition to CHS’ demonstrated ability to manage downside risk. Together, the joint venture allows further entry into VBCs as a larger contracting entity providing better clinical outcomes as well as improved patient quality scores and satisfaction. The partnership will manage all components of the competencies required to manage risk, allowing for Skylight Health to enter risk-bearing contracts with payors while also supporting Skylight’s practice growth strategy as affiliates seek larger, more robust partnerships.
“Collaborative Health Systems has been at the forefront of profitably executing on value-based care, having generated over $475 million in Medicare savings since 2012,” said Prad Sekar, CEO & Co-Founder of Skylight Health. “This partnership enables us to leverage the scale, infrastructure, and expertise of CHS, allowing us to fast-track our timeline of value-based contracts by approximately 24 months.”
“At Collaborative Health Systems, we are dedicated to improving quality outcomes and delivering cost savings with our provider partners,” said Anthony Valdés, President of Collaborative Health Systems. “We look forward to working with Skylight Health to improve quality, lower costs, and help Skylight’s physicians thrive in value-based care.”
The Company news in this release augments the previous announcement of participating as a direct contracting entity (DCE) under a license of a leading national healthcare organization in 2022;[i] the Company intends to proceed under the arrangement in 2023 as part of CMS’ recently announced transition of the DCE program to ACO REACH.
[i] The statements contained in this document are solely those of the authors and do not necessarily reflect the views or policies of CMS. The authors assume responsibility for the accuracy and completeness of the information contained in this document."