CVS Well being’s $8 billion deal to buy residence well being supplier Signify Well being is its newest step to rework from a retailer right into a healthcare companies enterprise.
The 59-year-old firm has a hand in medical insurance, pharmacy companies, digital care, client items and extra. Signify Well being provides doctor enablement and residential well being companies to CVS Well being’s roster.
By leaning into healthcare companies, the corporate goals to develop its adjusted earnings by $900 million over the following two years. To try this, CVS Well being might want to buy a major care supplier, Chief Monetary Officer Shawn Guertin informed analysts Tuesday on a name in regards to the Signify Well being deal.
Signify Well being represents CVS Well being’s foray into the well being danger evaluation market – an space rival Medicare Benefit carriers UnitedHealthcare and Humana have been investing in and already maintain a agency foothold.
“There’s lots of logic beginning the place we’re proper now with residence well being,” Guertin stated. “However actually, the technique was by no means to be a one-and-done.”