1. Health Strategies Group
CVS Health
12/3/2018
Health Strategies Group
Author/Artist
Corporate Strategy
CVS Health’s recent definitive merger agreement with Aetna further strengthens the company’s strategy to pursue a total healthcare management business model with multiple patient access touchpoints.
Corporate strategies
Goal
Tactic
Maintain position as “total care” solution
CVS continues to focus its value proposition on their ability to provide patient touchpoints across all access channels through its PBM, retail, mail, specialty, infusion, LTC, and clinic offerings.
In 2017, the company plans to offer more bundled services to clients, particularly its MinuteClinic, infusion, and LTC services.
Develop new and innovative PBM offerings
CVS began implementing an indication-based formulary strategy to contain costs for hepatitis C treatments and products in the autoimmune category.
In 2017, the company intends to implement a new retail network strategy, which will base reimbursement on key performance metrics.
Expand membership
In 2017, the Health Transformation Alliance (HTA) announced its blueprint to reduce healthcare costs, one component was to direct its 6 million members lives to CVS Caremark and OptumRx.
CVS Health continues to attract new business, particularly in the Medicare and Medicaid segments. In , the company gained $7.8 billion in new revenue, retained 97% of existing clients, and grew from approximately 75 million to more than 90 million members.
By the end of 2016, CVS Caremark was managing 5.6 million SilverScript PDP members (up from 5 million members in 2015) and managed pharmacy benefits for 12 million Medicare Advantage members for its clients. The PBM will likely experience growth in SilverScript and health plan client members because of its open national network, Medicare expertise, and improved star ratings.
Supporting accountable care organizations
SilverScript continues its collaboration with several ACOs to help improve medication adherence, reduce gaps in care, reduce overall pharmacy spend, and improve care for Part D beneficiaries.
Source: CVS Health. Accessed January-December 2017 from corporate and subsidiary websites and public reports;
Health Strategies Group, National Account Profiles, January 2018.