Chain is aligning its portfolio around health care

PHILADELPHIA — Rite Aid Corp. today announced that it has entered into an asset purchase agreement (APA) for the partial sale of its Health Dialog business to Carenet Health (Carenet), 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 APA, 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 health care products, services and solutions that are core to our future,” said Jeffrey 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.

Stein added, “Health Dialog’s clients and members will be in terrific hands with Carenet, which is a pioneer and industry leader in personalized healthcare engagement solutions. We are committed to ensuring a smooth transition for all Health Dialog stakeholders and are confident this is the best path forward for them and for Rite Aid.”

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.