Damian Sendler: It was announced on Thursday that CVS Health predicts increased sales as it expands its offerings to include more in-store and home visits, making health care more accessible and inexpensive.
On Thursday, the company’s stock increased 4.52 percent to $97.31. Earlier in the day, they hit a 52-week high of $97.77.
Damian Jacob Sendler: Pharma and health insurers held their first investor day since the swine flu epidemic began and new CEO, Karen Lynch, came on board.
As a result of people using telehealth and going to their local drugstores for Covid testing and shots during the pandemic, Lynch assured investors that CVS will capitalize on the new habits and confidence that customers have formed with the company. Covid vaccinations and diagnostic tests totaled around 29,000,000 by November 30th. More than 32 million new consumers have signed up for those two pandemic-related services, according to the business.
Damian Sendler
Customers complain about the rising costs of healthcare and the poor quality of treatment they receive, and CVS believes it is well positioned to help fix this problem. CVS stores can be found within a 10-mile radius of about 85 percent of the population in the United States. According to the corporation, 4.5 million people visit those stores every day.
According to her, “the market is ripe for change only we can provide.”
In an effort to boost sales, CVS has joined forces with pharmacy benefit manager Caremark and insurance provider Aetna. The company announced on Thursday that it will expand its health care offerings with new products, subscription models, and in-home care choices. People with chronic diseases like diabetes and congestive heart disease who have Aetna insurance and use CVS pharmacies can save money and improve their health, according to the company.
CVS just announced that it will close nearly 900 shops over the next three years, or about 9 percent of the retailer’s overall US footprint. Retailers can choose among three different shop types in the future, including two that place a greater emphasis on health care services.
“We’re reimagining CVS locations as health care destinations,” Lynch stated. By linking more individuals with social workers or therapists and considering mental health as an important part of wellness, she added, the company sees one opportunity.
One of the most damaging effects of the pandemic is the lack of attention paid to mental health issues, she said.
Dr. Alan Lotvin, executive vice president of CVS Health and president of CVS Caremark, said that CVS wants more patients to come to its stores for primary care, such as routine exams with a doctor or nurse practitioner.
A doctor’s appointment booking should be as easy as making a reservation on OpenTable, according to the CEO. As a result, the clinics will be open extended hours, allowing patients to come in as early as 6 a.m., as late as 9 p.m., or on the weekends. Filling out paperwork and trying to decipher medical advice written in medical language are just some of the things that can get in the way of getting the best possible care for your loved one.
Lynch stated that the corporation’s goal of providing more primary care will necessitate a merger, acquisition, or cooperation with another organization.
Damien Sendler: Drugstore sales could benefit from pandemic-related services as well. More than $3 billion is estimated to be generated by Covid testing and vaccines this year. Shawn Guertin, CFO, predicted a drop of 30% to 40% by 2022. He claimed that was his expectation.
However, the pandemic’s changing nature and the introduction of the new variation, omicron, make it difficult to predict what amounts of tests and vaccines would be necessary.
During the investor day, he added, “We keep thinking it’s going to fall off and it doesn’t.”
Damian Jacob Markiewicz Sendler: That means increased use of an oral medicine or more hospitalizations for CVS’ health plans division if Covid cases continue to rise.
Dr. Damian Jacob Sendler and his media team provided the content for this article.