The market is transferring as we predicted, and it feels good, particularly in case you’re a shareholder of Oak Road Well being. In Predictions 2023: Healthcare, we predicted that retail well being clinics will double their share of the first care market. CVS’s announcement that it’s going to purchase Medicare-focused major care supplier Oak Road Well being is a transfer in that route. This deal by the most important pharmacy and drugstore chain within the US locations CVS amongst different retailers making related strikes: Walmart, Walgreens, and Amazon. We see the transfer to consolidate the market persevering with.
With this newest acquisition, CVS is primed to outpace the competitors by:
Turning into an end-to-end healthcare supplier. CVS is one step nearer to turning into a holistic healthcare enterprise. Its various portfolio provides shoppers medical insurance (Aetna), pressing care (MinuteClinic), Rx supply (CVS Caremark), house well being providers (Signify Well being), and, now, preventive care via tech-enabled Oak Road Well being.
Pushing the pedal on value-based healthcare by concentrating on seniors. The rising aged and chronically ailing populations will push Medicare’s annual acute care prices to round $259.8 billion by 2030. Main care is the one a part of healthcare the place elevated provide is related to higher inhabitants well being and extra equitable outcomes. In the way forward for healthcare, value-based care will develop into the dominant reimbursement methodology. CVS is embracing this seismic shift with preemptive care, home-based providers, the idea of extra draw back danger, and elevated price transparency for its Medicare Benefit members.
Stretching past major care to deal with social isolation and improve member advantages. Oak Road Well being, by appearing as a healthcare and neighborhood middle in a single, caters to the almost one-fourth of seniors thought-about to be socially remoted. The corporate helps tackle frequent psychological well being issues by providing a spot for seniors to socialize and luxuriate in wholesome actions and occasions. Using a whole-person method will give CVS a set of advantages and providers that resonate with its Medicare Benefit members. With the acquisition of Oak Road Well being, CVS hit the nail on the pinnacle.
Enhancing healthcare entry for underserved communities. Customers select a walk-in well being clinic as a result of it’s straightforward to get an appointment and it’s near house. Additionally they take pleasure in a degree of transparency and ease on the subject of their expertise — two issues that conventional healthcare doesn’t supply. Now, Oak Road Well being provides CVS an opportunity to raise the affected person expertise of its Medicare inhabitants.
In 2023, sufferers will select retail well being for his or her major care wants. Retailers’ a number of retailer places give them a leg up by providing instant care choices when, the place, and the way sufferers need and want them. CVS simply moved a step nearer to this actuality and introduced the market nearer to our prediction.
If you wish to study extra about retail well being and the implications for conventional healthcare, schedule an inquiry with us. We’d love to talk with you!
