Amazon’s $3.9 billion acquisition of One Medical has dramatically changed the healthcare market since the deal was announced in July. However, pharmacy retail and healthcare giant CVS Health has also been active since Amazon acquired One Medical.
CVS pursued a partnership with One Medical before Amazon purchased the company in July. Since then, CVS has been linked to the acquisition of the home health company Signify Health. Signify Health is valued at $4.7 billion and is in the midst of conducting layoffs.
A potential acquisition of Signify Health fits with CVS’s stated goals of moving further into the home health and primary care market.
“We’re always looking for important partners and collaborators. As a payer, we aim to be the partner of choice for all providers and health systems, so as we explore these opportunities, we’re excited to see many providers integrating home health and telehealth into their thinking and strategy,” Kyu Rhee, MD, a senior vice president at CVS Health, said to Becker’s on the prospect of CVS acquiring Signify Health. “We already have trusted value-based care arrangements with providers where we’re thinking about health outcomes, impact and improving access to primary care and home health.”
Aside from the potential Signify acquisition, CVS plans to stay competitive with Amazon through its team of more than 900 data scientists working on cutting waste.
Furthermore, CVS has been expanding its leadership team, naming Creagh Milford, MD, as senior vice president of retail health on Aug. 10.
CVS has made more inroads into the digital health and telehealth market by partnering with telemedicine company Amwell. Amwell announced the partnership on Aug. 4. in its second-quarter earnings report.
Ido Schoenberg, MD, chairman, and co-chief executive officer of Amwell, spoke to the uniqueness of CVS’s multifaceted approach as a reason for the partnership.
“CVS is a fascinating organization with insurance capabilities, retail capabilities, care delivery networks, condition management services and so much more,” said Dr. Schoenberg. “We couldn’t be more proud and excited about the fact that they chose us as the backdrop for their effort and that effort is very significant. It is a very, very important undertaking.”
Changes in legal and public policy have dominated recent CVS news. The Supreme Court’s decision to overturn Roe v. Wade, the case that protected the legal right to an abortion, resulted in CVS limiting purchases of Plan B to three per person due to increased consumer demand.
Finally, CVS Health, along with Walmart and Walgreens, was ordered to pay out $650 million to two Ohio counties for ignoring signs of opioid abuse.