CVS Health to capitalize on opportunities to make health care convenient
CVS Health is unveiling a new strategy.
At its 2021 Investor Day, the company’s leadership team shared that the strategy entails capitalizing on the significant opportunity to make health care more convenient, personalized and affordable for consumers.
Leaders articulated how investing in high-growth areas of the business and introducing new health products, services and technologies will enhance shareholder value, as well as provide greater visibility into its near- and long-term financial performance expectations.
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“Now is the time to undertake our next major evolution and capitalize on our role as the leading health solutions company in America,” said CVS Health president and CEO Karen Lynch. “By leaning into our high-growth foundational businesses and expanding our reach in areas like health services and primary care, we have an opportunity to shift care to be more centered around the consumer while capturing a meaningfully greater portion of healthcare spend. Ultimately, this plan is only possible with our unique combination of assets which will allow us to lower costs, increase access to quality care and improve health outcomes for consumers, patients and members — while delivering superior results for shareholders.”
The CVS Health management team will focus on priority areas for strategic growth, including:
- Maximizing growth in the company’s foundational businesses by continuing to position its existing assets to deliver market-leading health solutions and focusing on high-growth opportunities.
- Advancing primary care delivery capabilities by guiding consumers across the care continuum to sites and to providers that meet their needs — both in-person and virtually. This approach will complement the traditional provider network and continue to expand ways to utilize risk-based arrangements and value-based care.
- Optimizing the retail portfolio to serve as community health destinations by pivoting the store footprint to focus on advanced primary care centers, enhanced HealthHUB locations and traditional CVS Pharmacy stores. As announced last month, the company will close approximately 900 stores over the next three years to reduce store density and ensure it has the right kinds of stores in the right locations for consumers and for the business.
- Launching new all-payer health products and services which will diversify the company’s growth portfolio with new health solutions for employers, consumers and health plans. This will include the expansion of home health services, the launch of health-related subscription models for broader populations, the commercialization of analytics and insights, and establishing all-payer and provider enablement services.
- Driving a digital-first, technology-forward approach that will expand the company’s reach and engagement with its more than 35 million online members, launching new consumer-centric services and offerings, enhancing the customer experience and streamlining business operations — leading to higher customer satisfaction levels and lower costs.
- Enhancing omnichannel health services to meet the needs of consumers when and where they want them, including at home, virtually and in the community. This will include execution of the company’s omnichannel pharmacy strategy, with integration across all fulfillment channels to make pharmacy interactions as personalized and seamless as possible.
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