The New York Times reports this morning that CVS Health has made a deal to "acquire Signify Health, which runs a network of doctors making house calls, for roughly $8 billion in a deal that cements the pharmacy chain’s move away from its retail roots.
"The deal, if approved by shareholders and regulators, would give CVS, which has nearly 10,000 stores nationwide, a new avenue to reach its customers: at home.
"Pharmacies like CVS have been searching for new ways to strengthen ties with their large customer base, particularly as consumers increasingly head online for the everyday items that used to draw them into stores. In Signify, CVS is acquiring a company that offers analytics and technology to help a network of 10,000 doctors provide in-home health care to 2.5 million patients across the United States. Signify has a focus on those on Medicare and in underserved communities."
CVS outbid the likes of Amazon in making the deal.
- KC's View:
It tells us something about the marketplace that a number of our stories this morning concern healthcare initiatives by the likes of CVS, Amazon and Walmart … the groundwork clearly is being laid for the next great battle among retail behemoths no longer satisfied with their core retail businesses, looking for growth opportunities and revenue streams.
I'm still a little skeptical about CVS's efforts … and submit for your consideration yet again a picture of what I recently saw at its pharmacy counter. If this is the best they can do at retail, do we really trust them with our healthcare?