CVS Health CEO

  • CVS Health and Aetna’s $69 billion merger would create an entirely new healthcare company, one that contains an insurer, pharmacy, and a company that negotiates prescription drug costs, among other businesses.
  • The deal would put a lot more of the healthcare system under CVS’s oversight and change the way people access their healthcare.
  • It might mean, for instance, that a lot more healthcare happens outside a traditional doctor’s office.

CVS Health‘s $69 billion merger with the health insurer Aetna could put a lot more of the healthcare system all under one roof.

The combined companies, which altogether include a health insurance business, retail pharmacies, and a company that negotiates prescription drug prices with drugmakers called a pharmacy benefits manager, would have a lot more control over how people access and pay for healthcare.

The intent of the deal is to create “health hubs,” where communities can better improve their health, in a way that they might not if their pharmacy was separate from their urgent care and their insurance company.

Here’s how Aetna CEO Mark Bertolini explained it on a call with investors on Monday:

“The real important part here is that we need to understand that almost 60% of Americans don’t have a regular doctor. A lot of people can’t get in to see the doctor they want to see. So I view the offering — I think it’s less about what the store looks like and more about the offering, and the experience the customer gets is really about a patient-centered medical home model, where we’re supporting interaction with the medical community, preparing people for appropriate compliance, preparing them for their visits, setting up appointments, eliminating prior ops, doing all those other sorts of things to help navigate that system for them. So the relationship becomes Read More Here