Last updated on December 3rd, 2018 at 10:58 am
CVS Health has completed its acquisition of Aetna.
“Today marks the start of a new day in healthcare and a transformative moment for our company and our industry,” said CVS Health President and CEO Larry J. Merlo. “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 healthcare model that is local, easier to use, less expensive and puts consumers at the center of their care.”
The combined company says it will connect consumers with CVS Health’s resources across the country and Aetna’s network of providers to help remove barriers to high-quality care and build lasting relationships with consumers.
New products and services developed by the combined company will be broadly available to the healthcare marketplace, regardless of one’s insurer, pharmacy benefit manager (PBM) or pharmacy of choice. CVS Health offerings, including retail pharmacy services, specialty pharmacy and long-term care, walk-in clinical services and PBM services, will continue to be fully accessible to other health plans. Aetna members also will continue to have a broad network of pharmacies, including community-based independent pharmacies, available to fill their prescriptions. CVS Pharmacy will continue to participate within the pharmacy networks for other PBMs and health plans.
“Health care delivery is changing before our eyes, and we are excited to be in the vanguard of that change. 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,” said Merlo.
CVS Health says it has begun to put the foundational pieces of the new healthcare model in place and, in the coming months, will introduce new programs and services designed to increase access to care, improve health outcomes and reduce medical costs for all consumers.
Enhanced health services will focus on self-management for patients with chronic conditions, expansion of services at MinuteClinic, nutritional and behavioral counseling and benefit navigation support, as well as assistance with durable medical equipment, digital health apps and connected devices.
CVS Health will offer new preventive health screenings in communities that are identified as high-risk for certain health challenges. These community-based programs will support the diagnosis, treatment and management of chronic diseases that can be effectively treated with prescription drugs and enhanced care management, including high cholesterol, high blood pressure and diabetes.
Under the terms of the transaction, each outstanding share of Aetna common stock is being exchanged for $145.00 in cash and 0.8378 shares of CVS Health common stock. The transaction values Aetna at $212 per share or approximately $70 billion. Including the assumption of Aetna’s debt, the total value of the transaction is $78 billion.
The Aetna brand name will continue to be used in reference to the health insurance products. Going forward, Aetna will operate as a standalone business within the CVS Health enterprise and will be led by members of its current management team.
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