CVS and Aetna Say Merger Will Improve Your Health Care. Can They Deliver?
- 6 years ago
CVS and Aetna Say Merger Will Improve Your Health Care. Can They Deliver?
While the combination could lead to much lower costs, it may not ultimately change the existing pharmacy model, Mr. Marcotte said,
but could “further entrench an already entrenched business model.”
“It is too soon to tell,” he said.
Brian Marcotte, the chief executive of the National Business Group on Health, said, “There are elements of this
that could be tremendously beneficial if it’s executed on and flows through the system.” But Mr. Marcotte, whose group represents large employers that offer health benefits to their workers, is wary of claims that mergers will result in savings for employers and consumers.
“It’s not going to immediately shake up the world, but I think you have two behemoths — two battleships
that are slow to turn — and it will at least create an environment by which information can be shared and innovation can take place,” said Nadina J. Rosier, the health and group benefits pharmacy practice leader at the consulting firm Willis Towers Watson.
While the traditional health care system could be overseeing people’s care, it isn’t, said Larry J. Merlo, the chief
executive of CVS, who described the merger as a way of capitalizing on “the opportunity to meet a huge unmet need.”
“You have a really good strategy,” said Brian Tanquilut, a health care equity analyst for Jefferies.
Aetna and CVS “really want to transform the way care is delivered,” he said,
but “unless you can really execute well, a good strategic goal and vision will not automatically translate into better health care and reduced costs.”
The prospect of significant cuts to government programs like Medicare due to the Republicans’ proposed tax overhaul, as well as uncertainty over the future of the Affordable Care Act, is forcing many hospital groups
and health companies to rethink their business plans and potential partners.
While the combination could lead to much lower costs, it may not ultimately change the existing pharmacy model, Mr. Marcotte said,
but could “further entrench an already entrenched business model.”
“It is too soon to tell,” he said.
Brian Marcotte, the chief executive of the National Business Group on Health, said, “There are elements of this
that could be tremendously beneficial if it’s executed on and flows through the system.” But Mr. Marcotte, whose group represents large employers that offer health benefits to their workers, is wary of claims that mergers will result in savings for employers and consumers.
“It’s not going to immediately shake up the world, but I think you have two behemoths — two battleships
that are slow to turn — and it will at least create an environment by which information can be shared and innovation can take place,” said Nadina J. Rosier, the health and group benefits pharmacy practice leader at the consulting firm Willis Towers Watson.
While the traditional health care system could be overseeing people’s care, it isn’t, said Larry J. Merlo, the chief
executive of CVS, who described the merger as a way of capitalizing on “the opportunity to meet a huge unmet need.”
“You have a really good strategy,” said Brian Tanquilut, a health care equity analyst for Jefferies.
Aetna and CVS “really want to transform the way care is delivered,” he said,
but “unless you can really execute well, a good strategic goal and vision will not automatically translate into better health care and reduced costs.”
The prospect of significant cuts to government programs like Medicare due to the Republicans’ proposed tax overhaul, as well as uncertainty over the future of the Affordable Care Act, is forcing many hospital groups
and health companies to rethink their business plans and potential partners.