CVS Well being needs to enhance its abilities by way of residence well being care

CVS Health (NYSE: CVS) is one of many large companies that have expressed a desire to revolutionize the “consumer experience” in healthcare.

To that end, the company will continue to seek to improve its healthcare service offering across three categories: primary care, service delivery and home health care.

Karen Lynch, CEO of CVS Health, reiterated that plan on Wednesday.

“We expect to improve our healthcare services in three categories: primary care, service delivery and home health care,” Lynch said during the second-quarter earnings call. “There are multiple ways for us to make an impact on community healthcare and our ability to achieve our strategic goals. We have very specific criteria that we consider when evaluating our many options. We are evaluating if there is a strong management team, a very strong technology stack, the ability to scale and a path to profitability.”

Despite losing to Amazon Inc. (Nasdaq: AMZN) in a bid for primary care company One Medical, Lynch said CVS Health plans to acquire or invest in a primary care company by the end of 2022.

“We cannot do primary care without mergers and acquisitions,” Lynch said. “We are very disciplined in our M&A strategy, both strategically and financially. M&A can be very fluid. They don’t necessarily design exactly how these deals are made. We are committed to expanding our healthcare services and we are very encouraged and confident that by the end of this year we will take the next step on that journey.”

Other primary public care players that could be potential targets: CareMax, Cano, Agilon and Oak Street Health, among others.

CVS Health’s focus aligns with other companies emerging as non-traditional primary care providers, such as Amazon and Walgreens Boots Alliance (Nasdaq: WBA).

According to a new report by Bain & Company, non-traditional primary care providers could capture around 30% of the US market in the next 10 years.

“New primary care models from non-traditional players – such as advanced primary care providers, retailers and payers – aim to provide more efficient care, improve patient outcomes and reduce costs,” the report says. “Payers, healthcare systems and investors need to make strategic decisions to determine where to play and how to win over the next decade.”

CVS reported net income of $2.95 billion for the second quarter of 2022, up from $2.78 billion year-over-year, an increase of 6%.

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