As part of its long-term expansion goal, CVS revamped its health services division to “CVS Healthspire” after investing over $20 billion to acquire Oak Street Health and Signify Health this year.
Healthspire will include CVS’ pharmacy operations, care delivery assets (such as home medical firm Signify Health and Medicare-focused primary care member Oak Street Health), and the new Cordavis operation, according to CVS CEO Karen Lynch, who made the announcement Monday at the Forbes Healthcare Summit in New York City. Cordavis, CVS’s new business unit that debuted in August, will collaborate with pharmaceutical companies to increase the number of biosimilars available to consumers.
Lynch stated, “This is where all our multi-payer assets will be combined together so that we can integrate the care for our multi-payer capabilities, and set further our ability to drive our journey. We’re really excited about CVS Healthspire and it’s our journey to really drive to the pinnacle of healthcare.”
Business executives stated their intention to establish a patient-centered “integrated ecosystem” in a statement. In order to provide linked patient care, pharmacy perks, and new provider support options, the organizations within CVS Healthspire will keep focusing on integration across the firm’s assets, the company announced.
There will be a public launch of the CVS Healthspire brand this month and continue into 2024.
Lynch detailed the company’s long-term plan to broaden its offerings beyond just pharmaceuticals by the tail end of 2021. Almost two years ago, during the organization’s investor day, Lynch and other executives laid out strategies to strengthen the firm in primary care and health solutions.
Lynch stated at the Forbes event that CVS Health’s investments in the last year fulfilled those promises. In May, the $10.6 billion takeover of Oak Street Health was finalized by the company. The $8 billion sale of Signify Health by CVS was finalized less than two months prior to this deal.
On Tuesday, December 5, at 8 am ET, the retail drug behemoth will have its first investor day in two years. During the event, the company is expected to provide additional details about its rebranded business.
Lynch had previously stated in August 2022 that CVS was planning to improve its main medical care, home health, and provider enablement offerings.
The company seeks to establish a fully integrated healthcare entity encompassing pharmacies, clinics, a health plan, and additional services. CVS generated a profit of $2.3 billion in the third quarter, with revenue reaching nearly $90 billion, marking an increase from $81.2 billion in the third quarter of 2022.
According to Lynch, CVS Health’s healthcare and pharma assets are “unmatched” and align with significant macrotrends such as the ageing of the U.S. population, an increasing amount of healthcare expanding into patients’ homes, and consumers looking for more accessible ways to get medical treatment.
Lynch conveyed that their strategy involves envisioning, in a straightforward manner, the connection and simplification of experiences to enhance health and improve the quality and affordability of healthcare.
