WOONSOCKET, R.I. — The executive team of CVS Health outlined a series of transformation initiatives at its 2019 Investor Day event last month, showing how the company plans to accelerate enterprise growth, simplify a consumer health system that is confusing and inconvenient, and position the company for long-term growth and increased shareholder value. The company also provided greater insight into near- and long-term earnings potential.
“Our goal is to fundamentally transform the consumer health experience for the millions of Americans we interact with every day, while creating value for our patients, members, partners and shareholders,” said CVS Health president and chief executive officer Larry Merlo. “We have combined with Aetna to build a powerful and unique business model that will guide our journey to becoming the most consumer-centric health company.”
Merlo added that CVS Health is dedicated to putting consumers at the center of its strategy and helping them achieve their best health by strengthening health care locally and making it simpler to use and understand.
The CVS Health management team said that it is focused on growing and differentiating CVS Health’s businesses, with a focus on driving engagement through personalization; winning in high-growth products and services; and delivering new and innovative benefit designs and reimbursement models.
One of the major announcements the drug chain made was that it will open 1,500 HealthHUB stores by the end of 2021.
CVS opened its first three HealthHUB locations in Houston in February. It said it plans to open more in Houston, Atlanta, Philadelphia, southern New Jersey and Tampa, Fla., by the end of the year.
“We’re pleased with the customer feedback we’ve received on the HealthHUBs,” said CVS Pharmacy president Kevin Hourican. He pointed out that these stores have seen higher traffic in the MinuteClinics, increased sales in the front of the store and more prescription volume.”
Hourican explained that the company is expanding HealthHUBs to build on the success of its pilot program in Houston.
HealthHUBs include an expanded health clinic, with a lab for blood testing and health screenings. There are also wellness rooms for yoga and seminars as well as dietitians and respiratory specialists on staff.
The retailer said it will also be taking advantage of the unmatched breadth of its capabilities to introduce new products and services. CVS Health will optimize government programs, introduce new risk-based carve-outs, develop programs aimed at complex conditions such as chronic kidney disease and create new analytics products.
The company is building a robust technology infrastructure designed to support transformational initiatives and protect its data. CVS Health said it will deploy that data across the organization to create a holistic view of the patient, which will offer insights on how to communicate with the patient most effectively, including providing the next best action they can take to improve their health.
Noting that CVS Health was realizing cost savings by modernizing enterprise functions and integrating operations following the Aetna transaction, chief financial officer Eva Boratto discussed how a focus on synergies and modernization will drive a more efficient company, and how investments in technology and new products will create long-term value.
“We are continuing to drive significant synergies and cost savings across the entire enterprise as we execute our integration plans,” Boratto said. “Going forward, we also have truly exciting opportunities to introduce programs and products that will change the way people think of and address their health.”