CVS Health Flirts with Idea of Expanding into Medicare Home Health Care

CVS Wellness (NYSE: CVS) outlined household-based care from time to time when talking about method pre-2020.

In excess of the previous two decades, nevertheless, those people mentions have turn out to be something but scarce. And when an analyst asked on the company’s fourth quarter earnings simply call no matter whether CVS may well get even further into Medicare-primarily based dwelling overall health before long, CVS Wellness CFO Shawn Guertin answered with a definitive “yes.”

“It’s difficult to predict the correct buy with which things will most likely exhibit up, if this is anything you decide that you’d fairly receive than make,” Guertin reported on Wednesday’s simply call. “But certainly, absolutely, [we’re interested in] issues that make sense to form of increase the treatment continuum – particularly to a Medicare population. [That] would make a good deal of sense and they’d be substantial on the record.”

The remark also indicates that CVS may well be interested in buying residence-based care organizations in the future.

“Consumers are a significant drive driving transform in wellness treatment, and we continue on to interact properly with folks in extra areas and on their terms – just about, in the dwelling and in their nearby group,” CVS Overall health CEO Karen Lynch stated. 

Achieving people exactly where they are is a more effective way to address “costly and complex health and fitness problems,” these as diabetes, most cancers and long-term kidney ailment, Lynch added. 

CVS Health’s income totaled $76.6 billion in the fourth quarter, an in excess of 10% boost from the $69.6 billion it introduced in above the very same time period previous yr. In 2021, the company’s all round earnings was $292 billion, an 8.7% enhance when compared to the prior yr. 

In December, the firm laid out its strategy to “revolutionize” the purchaser expertise. Specifics of that strategy bundled investing a lot more in its main treatment, digital and omnichannel well being expert services, which include house wellness care.

“Now is the time to undertake our subsequent important evolution and capitalize on our function as the main well being remedies firm in The usa,” Lynch reported at the company’s trader working day. “Ultimately, this prepare is only attainable with our distinctive blend of property, which will make it possible for us to decreased costs, increase accessibility to good quality care and enhance wellbeing results for customers, clients and associates.”

Other vendors are on the very same route. Walgreens Boots Alliance (Nasdaq: WBA), for occasion, has created similar initiatives to reach patients in their properties and communities.

Amazon (Nasdaq: AMZN), in the meantime, just not too long ago expanded “Amazon Care” – its digital and at-property system – to 20 new towns across the nation.