CVS Health (NYSE: CVS) is a new and improved provider of health care services. After closing on the acquisitions of both Signify Health and Oak Street Health, the retailer now has two of the more coveted capabilities in health care: at-home care and primary care.
On Tuesday, CVS Health closed on its $10.6 billion deal of the Chicago-based primary care provider Oak Street Health. The company closed on its $8.6 billion deal for the at-home care enabler Signify Health at the end of March.
And it may not be done yet.
CVS Health CEO Karen Lynch said Wednesday that while the near-term focus will be on the integration of the recently acquired assets, more home-based care and tech add-on deals could be on the horizon.
“These acquisitions significantly advance our value based strategy by adding primary care, home-based care and provider enablement capabilities to our platform,” Lynch said on the company’s first-quarter earnings call. “I think, over time, we’ll look at what other assets [we need]. … As you think longer-term around the corner, there might be additional opportunities in the home. But right now, for the near term, it is important for us to execute on these important assets.”
Though Signify Health is now under CVS Health’s umbrella, it will still operate as a payer-agnostic subsidiary.
In addition to providing at-home evaluations, the Dallas-based Signify is a value-based platform that leverages analytics, technology, health care provider networks and its over 10,000 clinicians to power value-based payment programs.
“When we go into the almost 3 million homes we’re going to this year, so many of them don’t have a primary care physician or are completely isolated from a care team,” Signify CEO Kyle Armbrester said on the call. “So we’re very excited to have an option for those folks and to be able to drive them back to a model that we know is going to drive better outcomes and to connect them into Oak Street.”
On its end, the Chicago-based Oak Street Health has a footprint that includes about 169 medical centers across 21 states.
Oak Street and Signify help comprise a new segment of CVS Health, its health services segment, which brings together its pharmacy services and health care delivery operations together.
“There’s a tremendous amount of synergies that can bring in all of these three assets together – CVS with the brand and the reach, Oak with their differentiated model, and now our presence in the home,” Armbrester continued. “And when we pull all three of those together, I think we’re going to have a really unique experience that drives better patient outcomes across the country.”
Combined, the businesses in CVS Health’s health care services segment serve more than 110 million people, have more than 20,000 colleagues and combined annual revenues of nearly $170 billion, according to the company.
Overall, CVS Health’s revenues increased to $85.3 billion in the quarter, a 11% year-over-year increase.
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