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Large retailers – like CVS Health (NYSE: CVS) and Walgreens Boots Alliance (Nasdaq: WBA) – that have invested heavily in home-based care aren’t just hoping for a boon from those capabilities.
They’re banking on it.
CVS Health has reworked its business model to capitalize off of the shift from fee for service to value-based payment in health care.
“The tactical challenge is [around] how to create better earnings growth sort of from that profile of businesses and that led us to think a lot about a lot of different alternatives,” CVS Health CFO Shawn Guertin said during the Bernstein 39th Annual Strategic Decisions Conference Wednesday. “But what we began to realize is that there was an opportunity here that was somewhat unique to us – to play on a really powerful trend in health care, which is value-based care and the move to value-based care from fee for service.”