Category Archives: CVS Health Corp.

EHR Vendor to Benefit from CVS/Aetna Merger

An article here from Healthcare IT News.com discusses how a CVS partner, Epic Systems, will benefit from the merger between CVS and Aetna.

The article reports that this signals a new era in analytics, interoperability, and population health.

According to Healthcare IT News.com, CVS is the biggest pharmacy chain in the U.S. by a number of locations and prescription revenue, Aetna is the nation’s third-largest insurance company. Epic Systems, which was not a party to the merger, but has been a CVS partner since 2015, is the largest electronic health record vendor.

The deal, according to the article,  stands to have a transformative impact on how healthcare is delivered in this country. Data, and lots of it, given that CVS has 9,700 retail locations and more than 1,100 walk-in clinics nationwide, was clearly a huge driver for the deal.

Epic’s vice president of population health, Alan Hutchinson, said that by using Epic’s Care Everywhere and Share Everywhere interoperability tools, CVA and Aetna could provide the rest of the community with information and insights to improve care.

“What’s really interesting about working directly with payers, providers, and patients is the ‘gray space’ – the opportunity that exists between traditional sites of care and all of the other organizations that are involved in the patient’s healthcare experience,” Hutchison said.

David Anderson, a research associate at Duke University Margolis Center, said in a recent blog post, “I can think of using the CVS retail data as a population health monitoring service, I can think of using the over the counter sales data tied to individuals to fuel predictive models for future opioid issues, or arthritis flares, or pulmonary hospital admissions or one hundred other things,”

He went onto say, “So from my former point of view as an insurance data geek, this merger offers an incredibly rich vein of data that can be mined and minted.”

The fundamental aim of the merger, is the management of chronic diseases through patient engagement, telehealth, and remote monitoring.

Aetna CEO Mark Bertolini said, “I think you have to think of it as keeping people away from the medical-industrial complex by offering better services in the home by meeting social determinants of health, which are big drivers of healthcare expenditures today, much bigger than people understand.”

Larry Merlo, CEO of CVS Health said the arrangement will enable the combined company to deliver services that many hospitals currently do not.

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Follow-up to CVS to Buy Aetna

As I reported last month, and in today’s New York Times and Wall Street Journal, CVS has agreed to buy Aetna for $69 billion, reshaping the US health care industry, according to the Times article.

The transaction, the article said, is one of the largest of the year, and would combine the drugstore giant with one of the biggest health insurers in the US. It would blur the lines between traditionally separate spheres of the health care industry.

This move by CVS is response to moves by Amazon, which has quietly laid the groundwork for an entry into the United States’ pharmacy business.

According to the Wall Street Journal article, Aetna stockholders will receive $207 a share, $145 in cash and 0.8378 of a CVS share, or $62 in stock.

 

CVS to Buy Aetna

This should wake you up before your morning coffee.

Reuters is reporting that pharmacy operator, CVS Health Corp. is making a bid for Aetna Insurance.

Bid is more than $66 Billion.

Here is the article from Reuters.

Do we really think a pharmacy should own an insurer? What ever happened to the idea of competition is good?

One day, we will live in a world like that of the movie, Rollerball (the one with James Caan), where corporations run the world, and your wife can be taken anytime by a corporate executive.