RETAIL HEALTHCARE: If CVS’s $69B Deal To Buy Aetna Holds Up To Federal Scrutiny, It Could Transform Health Care Landscape
The American Journal of Retail Medicine (AJRM) is the sister publication of The DPC Journal, Concierge Medicine Today and CMT Canada.
DECEMBER 4, 2017 – Together, the companies touch most of the basic health services that people regularly use, and the merger could keep the transactions under one roof instead of spread out over multiple industry players.
CVS Inks $69B Takeover Of Aetna
Law360, New York (December 3, 2017, 6:44 PM EST) — CVS Health Corp. unveiled a $69 billion deal for Aetna Inc. on Sunday, paving the way for a union of a major pharmacy operator and a health insurance giant after Aetna saw its own takeover of a rival implode amid antitrust scrutiny earlier this year. Rhode Island-based CVS Health’s planned buyout of the Connecticut-based health care company follows Aetna’s decision in February to walk away from its $37 billion cash-and-stock deal for rival Humana Inc. rather than appeal the U.S. Department of Justice’s successful block of the…(READ MORE …)
The Washington Post: CVS Agrees To Buy Aetna In $69 Billion Deal That Could Shake Up Health-Care Industry
If approved, the mega-merger would create a giant consumer health care company with a familiar presence in thousands of communities. Aetna chief executive Mark T. Bertolini described the vision in an interview as “creating a new front door for health care in America.” “We want to get closer to the community, because all health care is local,” Bertolini said. “What was going to draw people into an Aetna store? Probably not a lot. We looked for the right kind of partnership.” (Johnson, 12/3)
The New York Times: CVS To Buy Aetna For $69 Billion In A Deal That May Reshape The Health Industry
CVS Health said on Sunday that it had agreed to buy Aetna for about $69 billion in a deal that would combine the drugstore giant with one of the biggest health insurers in the United States and has the potential to reshape the nation’s health care industry. The transaction, one of the largest of the year, reflects the increasingly blurred lines between the traditionally separate spheres of a rapidly changing industry. (De La Merced and Abelson, 12/3)
Reuters: CVS Health To Acquire Aetna For $69 Billion In Year’s Largest Acquisition The deal comes after Aetna’s $37 billion plan to acquire smaller U.S. health insurance peer Humana Inc was blocked in January by a U.S. federal judge over antitrust concerns. A proposed combination of peers Anthem Inc and Cigna Corp was also shot down. (O’Donnell and Humer, 12/4)
The Boston Globe: Here’s Why CVS Is Spending $69 Billion To Buy Insurer Aetna CVS has two clear goals in making the largest purchase in its 54-year history, analysts said. The first is to accelerate the transformation of its 9,700 retail stores into health care supermarkets with wellness clinics for preventive care, vision and hearing services, telemedicine connections with doctors, and on-site nurse practitioners to assist with chronic conditions. The second is to fortify its business of managing pharmacy benefits, which oversees drug plans for employers and insurers, against a widely expected incursion by Amazon.com Inc. (Nanos, 12/4)
The Wall Street Journal: CVS To Buy Aetna For $69 Billion, Combining Major Health-Care Players The proposed deal is the latest and most dramatic sign of how the lines between traditional segments in health care are blurring as companies, saddled with mature businesses and in many cases restricted from buying rivals, enter new areas in search of growth. Companies from insurers to hospital chains are also looking for ways to squeeze costs and bolster their leverage against other players in the food chain. That is creating opportunities, but also new fault lines as companies find themselves competing against erstwhile partners. (Terlep, Wilde Mathews and Cimilluca, 12/3)
Bloomberg: CVS To Buy Aetna For $67.5 Billion, Remaking Health Care Sector In a joint interview, CVS Chief Executive Officer Larry Merlo and Aetna CEO Mark Bertolini said combining the companies would help CVS expand a variety of retail medical services, from vision care to nutrition advice to audiology, making basic care more convenient and less costly for consumers. Aetna will be operated as a separate business unit, and any new services will be designed to appeal broadly to customers of other insurance companies as well, the executives said. (Tracer and Langreth, 12/3)