CVS Health is delving further into medical care, including a rebrand of its health services segment under a new name, “CVS Healthspire.”
Under CVS chief executive officer Karen Lynch, the Rhode Island-based company has been particularly active in building out its primary care capabilities, including through its $8 billion acquisition of home health care provider Signify, and $10.6 billion acquisition of value-based primary care provider Oak Street Health, both of which were completed earlier this year.
The rebrand was announced at the company’s Investor Day on Tuesday.
“We are successfully executing on our strategy to advance the future of health care while unlocking new value for consumers,” said Lynch.
CVS Healthspire will be the new branded name for the company’s Health Services segment, including Caremark, CordavisTM, Oak Street Health, Signify Health, and MinuteClinic.
The company said the CVS Healthspire brand will begin to roll out publicly this month and advance throughout 2024.
Another initiative announced Tuesday was CVS CostVantage, a new system building upon the pharmacy reimbursement model. According to CVS, the new system will define the drug cost and related reimbursement with contracted pharmacy benefit managers (PBMs) and payors, using a transparent formula built on the cost of the drug, a set markup, and a fee that reflects the care and value of pharmacy services.
CVS Pharmacy plans to launch CVS CostVantage with PBMs for their commercial payors in 2025.
CVS has been angling for some time to become a full-service healthcare provider, operating a pharmacy benefit manager, a payer, as well as a chain of medical clinics.
CVS, which also owns health insurer Aetna, is the latest healthcare company to organize its healthcare services under segments separate from the health plan operations. Aetna is the nation’s third-largest health insurance company with over 25 million health plan members.
Walgreens Boots Alliance is another retailer making waves in the health services space.
In 2021, Walgreens invested $5.2 billion to take a majority stake in VillageMD, a primary care practice.
More recently, in September, Walgreens announced that it was partnering with tech company Pearl Health to provide software and services to help primary care doctors switch from fee-for-service to value-based care.