This is a mega deal! The largest so far in 2017. Will it be good for both business and consumers? Let’s here what both CEOs have to say about it.

Facts:

• CVS Health is buying Aetna (with shareholder and regulatory approval)
• $69 Billion purchase price by CVA health for Aetna
• CVS Health is the 2nd largest Pharmacy in the US
• CVS Health has 9,700 retail locations/pharmacies
• CVS Health has 1,100 walk-in, Minute Clinics
• CVS Health’s Revenue: 60% Pharmacy and 40% Retail
• Health care costs are one of the highest line-item for individuals and/or families
• Aetna serves over 45 Million people/members (medical, dental, and pharmacy)
• The total US Healthcare cost in 2016 was $3.3 Trillion dollars.

My Take

• Insurance industry companies like Aetna and UnitedHealth Group benefit from keeping people healthy by working to prevent and/or correct their member’s disease(s).
• Increased usage of the CVS walk-in clinics instead of expensive settings like the Emergency Room. This will reduce costs.
• Easy access to local, quality care providers at lower prices for the members.
• CVS health is feeing Increased competition from UnitedHealth, Walgreens, and Amazon.com. They are making a move to defend and grow their equity value and market share.
• Integrate retail pharmacy with healthcare services.  An integrated, one-stop, care delivery model.

What Do You Think About This Deal?