Despite some skepticism
from Wall Street over headwinds primarily arising from its long-term-care
pharmacy, along with soft 2019 profit guidance and overhanging debt from its
$70 billion acquisition of Aetna Inc., CVS Health Corp. touted its strong long-term
viability during its fourth quarter and full-year 2018 earnings call.
The company recently
launched three "concept stores" in Houston, which are set to pilot
many of the health care services that the company anticipates offering together
with Aetna. Each store has an expanded health clinic, lab and wellness rooms
for yoga and seminars, and offers in-person counseling with clinicians and
more.
CVS President and CEO
Larry Merlo cautioned "it's still early as we're in the learning phase and
working to define a hub-and-spoke approach, but it's an example of the work
underway."
Industry consultant
Ashraf Shehata, a principal in KPMG's health care life sciences advisory
practice and Global Healthcare Center of Excellence, says CVS offers a prime
example of how organizations throughout the health care field are working to
position themselves.
The open-ended question
is where consumers will gravitate. "If retail will be the 'new front door'
to the health care system, that could be quite disruptive," he says. Consumer
behavior is being redefined, and the process is being driven by millennials and
baby boomers — and everyone in between. Thus, he says, "This will have to
be a very accommodating 'front door.'"
For the quarter ended
Dec. 31, CVS reported a net loss of $421 million on revenues that increased
12.5% to $54.4 billion year over year.
From Health Plan Weekly
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