Sharecare Enters Home Health Market with Acquisition of CareLinx
Friday, August 13th, 2021
Sharecare (Nasdaq: SHCR), the digital health company that helps people manage all their health in one place, today announced that it has closed its acquisition of CareLinx, the nation's leading digital on-demand platform of tech-enabled care providers. Sharecare has acquired CareLinx from Europ Assistance, one of the largest global assistance companies.
Through its network of over 450,000 tech-enabled caregivers, CareLinx delivers intermittent on-demand personal care services in people's homes, while leveraging mobile technology to facilitate rich data capture, population health analytics, and the enabling of real-time care coordination with remote clinical teams. The acquisition will bring a human touch to and strengthen Sharecare's digital platform by helping customers manage the "last mile" of care: the home.
"Regulatory and macro changes are driving the shift to home-based care and COVID-19 further accelerated the adoption of telehealth and home-based services; and payers and providers need scalable in-home care provider solutions to manage the total cost of care," said Jeff Arnold, founder, chairman, and chief executive officer of Sharecare. "In addition to integrating our offerings to provide our respective customers' members, families, and caregivers with a comprehensive digital experience, the capabilities CareLinx brings to bear will be an additive and distinct component of the multi-payer advocacy solution we are developing."
With an exclusive offering for AARP members and key partnerships with the U.S. Department of Veterans Affairs through the Elizabeth Dole Foundation and three of the largest health plans in the U.S., over one million Medicare Advantage members have access to CareLinx through their health plans. Providing services across the continuum of care, including non-medical, companionship and housework, and personal and clinical, CareLinx's experienced non-medical and skilled medical care providers include companion caregivers, personal care providers, certified nursing assistants (CNAs), medical assistants (MAs), licensed vocational nurses (LVNs), licensed practical nurses (LPNs), registered nurses (RNs), and nurse practitioners (NPs).
"For the last decade, we have leveraged our platform to help people navigate the challenges of home care, as well as provide healthcare's scarcest resource – nurses and caregivers – with the ability to earn higher pay and have greater schedule flexibility," said Sherwin Sheik, founder and chief executive officer of CareLinx. "Joining the Sharecare family will enable us to scale across their existing client base of health plans and large employers while working with their world-class engineers to drive operational efficiencies, enhance retention and engagement, and ultimately, fully integrate CareLinx's capabilities and network into the Sharecare platform."
Financial Reporting and Business Outlook
"CareLinx has shown impressive organic growth to date, and we believe Sharecare is well positioned to continue that trajectory. In fact, CareLinx can be sold into all three of our channels and we already have several of our health plan and provider customers actively looking for this type of solution," said Justin Ferrero, president and chief financial officer of Sharecare. "Ultimately, we believe this acquisition will expand our TAM by over $7 billion for home care and potentially over $100 billion if we expand further into home health."
For the year ended December 31, 2020, CareLinx reported revenue of approximately $5 million. CareLinx expects to report revenue of approximately $20 million for the year ended December 31, 2021, and grow revenue organically by at least 75% in 2022.
Sharecare provided combined guidance for the full year 2021 on its earnings release, issued today, August 11, 2021, and will provide additional commentary on today's earnings conference call.