Rite Aid To Sell A Portion Of Its Health Dialog Business
Rite Aid Corporation has entered into an agreement for the partial sale of its Health Dialog business to Carenet Health, a provider of healthcare engagement, clinical support, telehealth and advocacy solutions.
Health Dialog provides personalized population health solutions to improve the health of members while reducing overall medical costs for companies and organizations. Under the terms of the agreement, Carenet will acquire Health Dialog’s Nurse Advice Line, Chronic Care Management solution and Shared Decision-Making solution, along with client contracts associated with those services.
“This transaction, combined with our recent divestiture of Elixir Solutions, underscores our commitment to aligning Rite Aid’s portfolio around the key healthcare products, services and solutions that are core to our future,” said Jeffrey S. Stein, CEO and chief restructuring officer. “As we move through the restructuring process, we are making important progress executing on our growth and profitability initiatives and implementing our go-forward business plan, focused on creating a portfolio of high-performing stores, a leaner supply chain and a more efficient operating model.”
Health Dialog’s Medication Adherence Management and Medication Therapy Management solutions are not included in the proposed transaction. Rite Aid is integrating these into the Company’s clinical offerings.
The transaction, which is subject to Bankruptcy Court approval and customary closing conditions, is expected to close early in the second quarter of the calendar year 2024.
In October of 2023, Rite Aid filed for Chapter 11 bankruptcy protection. In the months that followed, the drug store chain announced the closure of hundreds of stores and the sales of select parts of its business including Elixir Solutions.
