VSS Capital Partners, a private investment firm investing in healthcare, business services and education, sold its interest in Caravan Health, a company enabling accountable care organizations (ACOs) to excel in population health management and value-based payment programs, to Signify Health, a value-based healthcare platform that leverages advanced analytics, technology and nationwide healthcare provider networks.

During VSS’ four years of ownership, Caravan reached more than 200 health systems and 100 Federally Qualified Health Centers with more than 10,000 primary care providers, who collectively manage more than 500,000 patients. Together, the combination of Caravan and Signify Health will create one of the largest national networks of providers engaged in value-based payment models.

“We tremendously enjoyed our close, four-year partnership with Caravan’s founder and executive chair, Lynn Barr, and her entire leadership team,” David Bainbridge, managing director at VSS, said. “Today, Caravan is well positioned to continue empowering hospitals, independent physicians, nurse practitioners and healthcare systems to better manage population health and deliver exceptional value-based care.”

Following VSS’ investment in Caravan in January 2018, Caravan undertook a number of organic initiatives to drive operational improvements, including making a significant investment in its sales and technology infrastructure. The company also completed one strategic acquisition with its purchase of Wellpepper, a Seattle-based health technology company, in February 2020. Under VSS’ ownership, Caravan’s ACO revenue has doubled in four years.

“We would like to thank VSS for their outstanding strategic support provided throughout our partnership,” Lynn Barr, chief innovation officer at Signify Health, said. “We meaningfully benefitted from VSS’s extensive industry expertise in tech-enabled healthcare services, while their financial capital and operational resources enabled us to take our business to the next level.”