CVS Health is planning the next steps to expand primary care by the end of the year

CVS Health executives said they have multiple paths to achieving the push to establish primary care services, provider activation and home health.

CVS Health Corporation continues to focus on expanding its healthcare services into 3 categories: primary care, provider support and home health.1

CVS Health executives acknowledged the drive to create these services and said they have multiple paths to achieving those goals.1

During the company’s second-quarter webcast, Karen Lynch, president, CEO and director of CVS Health Corp, said CVS has specific criteria guiding the optimal path to launch these services at scale.1

“We’re looking to see if there’s a strong management team, we’re looking to see if there’s a very strong technology stack. Obviously the ability to scale given the size of the company we are and a path to profitability,” she said at the meeting.1

She added that CVS is confident that the next steps for expanded health services will happen by the end of 2022.1

In 2020, Walgreens Boots Alliance announced a partnership with VillageMD that will open 500 to 750 full-service doctor’s offices in Walgreens stores within the next 5 years.2 The clinics will integrate pharmacists as important members of the VillageMD team.2

There will also be 24/7 access to care through telehealth and home visits.2

Following that announcement, Walgreens Boots Alliance made a $5.2 billion investment in VillageMD to continue the companies’ push to open more value-based primary care practices in Walgreens stores.3

In his opening remarks, Lynch said CVS Health and MinuteClinic teams have supported more than 2.8 million patient visits year-to-date, an increase from last year of about 12 percent.1

They also continue to offer testing-for-treatment programs and plan to implement pharmacist prescribing under certain conditions to help patients with COVID-19.1

“We are very disciplined both strategically and financially as we pursue something like ours [mergers and acquisitions (M&A)] strategy. We can’t be in primary care without M&A,” Lynch said on the Q2 call in response to a question.1

Lynch said CVS Health wants to partner with another company to allow CVS to have doctor’s offices where patients can go for annual visits or appointments, according to a CNBC report.4 CVS currently has MinuteClinics in stores where patients can get shots or even get emergency care.4 They recently added mental health therapy to MinuteClinic services, according to CNBC.4

References

1. CVS Health Corp Q2 2022 Earnings Call. CVS Health. August 3, 2022. Accessed August 17, 2022. https://s2.q4cdn.com/447711729/files/doc_financials/2022/q2/CVS-Q2-2022-Transcript.pdf

2. Murphy, J. Walgreens, VillageMD to open 500 to 750 full-service doctor’s offices within next 5 years. Pharmacy Times. July 9, 2020. Accessed August 17, 2022. https://www.pharmacytimes.com/view/walgreens-villagemd-to-open-500-to-700-full-service-physician-offices-within-next-5-years

3. Walgreens Boots Alliance makes a $5.2 billion investment in VillageMD to provide value-based primary care to communities across America. News release. Walgreens Boots Alliance. October 14, 2021. Accessed August 17, 2022. https://www.walgreensbootsalliance.com/news-media/press-releases/2021/walgreens-boots-alliance-makes-52-billion-investment-villagemd

4. Reoko, M. CVS Says Plans to Enter Primary Care by Year’s End. CNBC. August 3, 2022. Accessed August 17, 2022. https://www.cnbc.com/2022/08/03/cvs-says-it-plans-to-get-into-primary-care-by-year- end .html

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