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CVS Health (CVS) to Expand Health Care Access With New Pact
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CVS Health Corporation’s (CVS - Free Report) Accountable Care Organization division entered into a partnership with RUSH University System for Health (RUSH) to extend access for Medicare patients in Chicago area. The collaboration establishes new Accountable Care that focuses on health equity, coordinated care and enhanced access.
The collaboration builds on RUSH's successes in the Medicare Shared Savings Program, ensuring that patients have access to equitable, accessible, high-quality care.
The latest collaboration will likely bolster the company’s Health Care Benefits segment.
More on the News
As part of CVS Health's care delivery strategy, the company is engaging its assets on behalf of this ACO REACH population to deliver high-quality outcomes, promote health equity and reduce healthcare costs. CVS Health's omnichannel care model focuses on expanding virtual and in-person services in community-based MinuteClinic and HealthHUB locations. The company’s strategic collaboration with RUSH has the potential to help enhance longitudinal care for its Medicare population of 35,000 beneficiaries.
RUSH will be the only Chicago-area academic medical center participant in CVS ACO REACH's first Accountable Care Organization (ACO) based on the REACH model to address the organizations' shared commitment to delivering accessible, affordable, coordinated and equitable care.
Strategic Implications
The collaboration will allow patients seeking health services at various ACO REACH-participating MinuteClinic locations in Chicago and Evanston to access care with RUSH and other ACO REACH entities for follow-up primary and specialty care.
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Personalized support will be offered for Medicare patients, including home-based care, transportation support for annual wellness visits, cost-sharing to help with co-pays and other improved services and incentives.
CVS Health is committed to advancing health equity for its customers, colleagues, clients and communities by enhancing trust, healthcare access and quality of health for the population. Per management, the new ACO REACH work and collaboration with RUSH is another step to focus more on improving health equity.
Industry Prospects
Per a report by GlobeNewswire, the global healthcare services market size was valued at $6.87 trillion in 2021 and is expected to reach $10.41 trillion by 2026, at a CAGR of 8.4%. The increase in the number of elderly people, faster economic growth, technological advancements, changes in lifestyles, and enhanced ability to survive and standard of living is driving the market.
Recent Developments
Health Care Benefits segment has been exhibiting continued strong momentum in the past few quarters following the colossal acquisition of health insurance giant Aetna. In the third quarter, the business delivered strong revenue growth of 10% year over year, banking on growth across all product lines. The company has achieved a key milestone in the reported quarter with more than 2 million members enrolled in its integrated Aetna and Caremark products. Within the ACA individual exchange platform, the company expanded its footprint and will be available in 12 states beginning in January of 2023, covering 5.5 million lives or nearly 40% of the individual exchange population.
Moreover, during the third quarter earnings update, the company noted that it had launched a new functionality that gives patients more choices and convenience for filling prescriptions. Patients can expedite urgent prescriptions, have visibility into out-of-pocket costs, and track their order status, all before even coming into the pharmacy. Further, the company is launching various new MinuteClinic virtual care services to support women's health that will be available 24/7.
Price Performance
Shares of the company have lost 17.9% in the past year compared with the industry’s fall of 20%.
Zacks Rank and Key Picks
Currently, CVS Health carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
AMN Healthcare has gained 5.4% against the industry’s 19.6% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 48.7% against the industry’s 0.8% decline in the past year.
Merit Medical, flaunting a Zacks Rank #1 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 28.1% against the industry’s 0.8% decline in the past year.
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CVS Health (CVS) to Expand Health Care Access With New Pact
CVS Health Corporation’s (CVS - Free Report) Accountable Care Organization division entered into a partnership with RUSH University System for Health (RUSH) to extend access for Medicare patients in Chicago area. The collaboration establishes new Accountable Care that focuses on health equity, coordinated care and enhanced access.
The collaboration builds on RUSH's successes in the Medicare Shared Savings Program, ensuring that patients have access to equitable, accessible, high-quality care.
The latest collaboration will likely bolster the company’s Health Care Benefits segment.
More on the News
As part of CVS Health's care delivery strategy, the company is engaging its assets on behalf of this ACO REACH population to deliver high-quality outcomes, promote health equity and reduce healthcare costs. CVS Health's omnichannel care model focuses on expanding virtual and in-person services in community-based MinuteClinic and HealthHUB locations. The company’s strategic collaboration with RUSH has the potential to help enhance longitudinal care for its Medicare population of 35,000 beneficiaries.
RUSH will be the only Chicago-area academic medical center participant in CVS ACO REACH's first Accountable Care Organization (ACO) based on the REACH model to address the organizations' shared commitment to delivering accessible, affordable, coordinated and equitable care.
Strategic Implications
The collaboration will allow patients seeking health services at various ACO REACH-participating MinuteClinic locations in Chicago and Evanston to access care with RUSH and other ACO REACH entities for follow-up primary and specialty care.
Personalized support will be offered for Medicare patients, including home-based care, transportation support for annual wellness visits, cost-sharing to help with co-pays and other improved services and incentives.
CVS Health is committed to advancing health equity for its customers, colleagues, clients and communities by enhancing trust, healthcare access and quality of health for the population. Per management, the new ACO REACH work and collaboration with RUSH is another step to focus more on improving health equity.
Industry Prospects
Per a report by GlobeNewswire, the global healthcare services market size was valued at $6.87 trillion in 2021 and is expected to reach $10.41 trillion by 2026, at a CAGR of 8.4%. The increase in the number of elderly people, faster economic growth, technological advancements, changes in lifestyles, and enhanced ability to survive and standard of living is driving the market.
Recent Developments
Health Care Benefits segment has been exhibiting continued strong momentum in the past few quarters following the colossal acquisition of health insurance giant Aetna. In the third quarter, the business delivered strong revenue growth of 10% year over year, banking on growth across all product lines. The company has achieved a key milestone in the reported quarter with more than 2 million members enrolled in its integrated Aetna and Caremark products. Within the ACA individual exchange platform, the company expanded its footprint and will be available in 12 states beginning in January of 2023, covering 5.5 million lives or nearly 40% of the individual exchange population.
Moreover, during the third quarter earnings update, the company noted that it had launched a new functionality that gives patients more choices and convenience for filling prescriptions. Patients can expedite urgent prescriptions, have visibility into out-of-pocket costs, and track their order status, all before even coming into the pharmacy. Further, the company is launching various new MinuteClinic virtual care services to support women's health that will be available 24/7.
Price Performance
Shares of the company have lost 17.9% in the past year compared with the industry’s fall of 20%.
Zacks Rank and Key Picks
Currently, CVS Health carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has gained 5.4% against the industry’s 19.6% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.7%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 3%.
Cardinal Health has gained 48.7% against the industry’s 0.8% decline in the past year.
Merit Medical, flaunting a Zacks Rank #1 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.4%.
Merit Medical has gained 28.1% against the industry’s 0.8% decline in the past year.