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Ballston-based Evolent Health is set to expand with a $130 million purchase of telehealth company Vital Decisions. The company expects the deal to close later this year.
One of Arlington’s largest growth companies, Evolent Health was founded in 2011 — just in time to help medical providers adjust to the changes prescribed by the Affordable Care Act. Ten years later, it is still developing solutions to address the rising costs of healthcare in the U.S.
And now, it is bringing on Vital Decisions to target the high healthcare costs borne by people with serious illnesses and their insurance providers. The New Jersey-based company uses digital services to help such individuals find advanced care throughout their health journey, especially as they approach the end of their lives.
“We believe Vital Decisions is a strong strategic fit for Evolent,” said Evolent Health Chief Executive Officer Seth Blackley in a release. “We believe this transaction… unlocks patient engagement and telehealth as levers for ensuring patients with complex illness receive high-quality, coordinated care.”
Evolent first expanded into specialized care in September 2018 when it spent $217 million to acquire New Century Health Management, which helps both healthcare providers and insurance companies provide better treatment for cancer or heart conditions while saving money. Vital Decisions will report to New Century after the acquisition.
“This acquisition will help ensure that the care plans created by our Vital specialists find their way into the hands of the providers responsible for ensuring these individuals receive the care they want as their illness progresses. New Century Health has developed a robust provider engagement platform and it’s a privilege to combine capabilities,” Vital Decisions CEO Leah Puccio said.
New Century Health CEO Dan McCarthy said the addition will help ensure that individuals with advanced illnesses have care plans that align with their personal preferences for the kinds of treatment and end-of-life care.
Since its launch, Evolent Health — headquartered at 800 N. Glebe Road — has grown from a startup into a publicly-traded company. After just four years in business, it debuted on the New York Stock Exchange, where it raised $195 million on the first day of trading. Shortly after, its market valuation hit $1 billion.
The company’s stock price has more than quadrupled since the start of the pandemic. After hitting an all-time low of $4.81 in March 2020, it rebounded to around $24 today.