CVS Health, Aetna Officially Close $69 Billion Merger

Approximately one year after CVS Health and Aetna agreed to merge, the two companies announced they have finalized their deal. This merger now combines one of the nation’s largest pharmacy chains with one of the largest health insurers.

“[This] marks the start of a new day in health care and a transformative moment for our company and our industry,” CVS Health President and CEO Larry Merlo said in a statement. “By delivering the combined capabilities of our two leading organizations, we will transform the consumer health experience and build healthier communities through a new innovative health care model that is local, easier to use, less expensive and puts consumers at the center of their care.” 

According to CVS, the combine company will “connect consumers with the powerful health resources of CVS Health in communities across the country and Aetna’s network of providers to help remove barriers to high quality care and build lasting relationships with consumers, making it easier for consumers to access the information, resources and services they need to achieve their best health.”

The two companies will operate more than 9700 retail locations, over 1100 walk-in medical clinics, and a pharmacy benefit manager with roughly 90 million members. Additionally, they will operate a health insurance plan that serves about 45 million members.

According to the companies, together they will offer better, cheaper, and more integrated health care.

“By fully integrating Aetna’s medical information and analytics with CVS Health’s pharmacy data, we can develop new ways to engage consumers in their total health and wellness through personal contacts and deeper collaboration with their primary care physicians,” Mr Merlo said. “As a result, we expect patients will benefit from earlier interventions and better-connected care, leading to improved health outcomes and lower medical costs.”

CVS Health said they have started to put the foundational pieces of its new health care model in place. They expect to introduce new programs designed to increase access to care within the coming months. CVS explained that these new programs will target better, more efficient management of chronic disease using the networks, technology, and the people of the combined company.

“Health care delivery is changing before our eyes and we are excited to be in the vanguard of that change,” said Mr Merlo. “With a physical presence in almost every community across the country, we have the unmatched ability to meet consumers where they are and provide the care and services they need either face-to-face or with the unique set of virtual and physical delivery service capabilities that extends our physical presence in real-time to meet their needs.” —Julie Gould