CVS Health Reportedly In Advanced Discussions To Acquire Aetna

CVS is not afraid to make big acquisitions, is Aetna their next big deal?
Healthcare / Pharmacy Services Conglomerate CVS Health May Be Widening Their Business Model

The provider / payer business model strategy is gaining traction in the healthcare industry

…CVS Health and Aetna executive leadership have not officially commented on any details regarding a potential merger & acquisition deal…

Just months ago, Aetna’s proposed deal to acquire rival health insurer Humana fell through due to regulatory / antitrust concerns just as Cigna’s deal to buy Humana ended unsuccessfully

While CVS is well known for its chain drugstores, Minute Clinics and PBM businesses, it is important to know CVS runs one of the largest home infusion operations in the nation and owns / operates the retail pharmacy units within Target stores which total over 600 locations. Anthem’s incumbent PBM, Express Scripts, will no longer be Anthem’s PBM partner effective January 2019. Express Scripts has moved forward with acquiring medical benefits manager EviCore for $3.6 billion and has openly commented it would be open to exploring business opportunities with Amazon.

CVS Health, based in Woonsocket, Rhode Island, ranks at number 7 in the Fortune 500; Aetna, headquartered in Hartford, Connecticut, ranks at number 47

An acquisition of Aetna by CVS Health would fortify CVS Health’s position as a provider and payer, a healthcare business model option currently being hotly cultivated by UHC / UnitedHealth Group and its Optum unit (which already owns a chain of physician clinics and acquired outpatient surgery center chain Surgical Care Affiliates for $2.3 billion in 2016). It would also help CVS Health defend its business against potential incursions by Amazon as it seeks to widen its reach into the healthcare industry. It is reported the CVS Health / Aetna deal would be formally announced during December, 2017.

CVS Health generates over $146 billion in annual sales; Aetna’s annual sales are over $63 billion

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