The market is transferring as we predicted, and it feels good, particularly when 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’ll purchase Medicare-focused major care supplier Oak Road Well being is a transfer in that course. 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:
- Changing into an end-to-end healthcare supplier. CVS is one step nearer to changing into a holistic healthcare enterprise. Its numerous portfolio provides shoppers medical insurance (Aetna), pressing care (MinuteClinic), Rx supply (CVS Caremark), residence well being providers (Signify Well being), and, now, preventive care by means of tech-enabled Oak Road Well being.
- Pushing the pedal on value-based healthcare by focusing on seniors. The rising aged and chronically unwell 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 grow to be the dominant reimbursement methodology. CVS is embracing this seismic shift with preemptive care, home-based providers, the belief of extra draw back danger, and elevated value transparency for its Medicare Benefit members.
- Stretching past major care to deal with social isolation and improve member advantages. Oak Road Well being, by performing as a healthcare and group heart in a single, caters to the almost one-fourth of seniors thought of to be socially remoted. The corporate helps tackle frequent psychological well being issues by providing a spot for seniors to socialize and revel 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.
- Bettering 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 residence. In addition they take pleasure in a stage of transparency and ease on the subject of their expertise — two issues that conventional healthcare doesn’t provide. 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 areas give them a leg up by providing quick care choices when, the place, and the way sufferers need and wish them. CVS simply moved a step nearer to this actuality and introduced the market nearer to our prediction.
If you wish to be taught extra about retail well being and the implications for conventional healthcare, schedule an inquiry with us. We might love to talk with you!