CVS Health (Aetna)
Financials
2022 revenue: $322.467B (10.39% increase year-over-year)
2022 profit: $125.575B, a 7.97% increase from 2021
History and Summary
CVS Health is a healthcare conglomerate, with pharmacies, pharmacy benefits management, care delivery, Medicare, Medicaid and private insurance businesses.
Its insurance holdings came from the acquisition of Aetna in 2018 for $69 Billion.
Aetna’s predecessor was founded in 1819 and primarily sold fire insurance. It expanded to cover life insurance, and in 1853, the life insurance part split from the fire insurance part. The life insurance bit became Aetna, the fire insurance bit became Cigna eventually!
Over the years, it expanded its offerings to include wind, tornado, leasehold, marine, auto, fire (again), and eventually health insurance, becoming a prominent player in the industry. Their health insurance holdings became among the largest in the world after the acquisitions of US Healthcare, NYLCare and Prudential in the late 1990’s
Aetna's integration with CVS Health has allowed for the development of innovative healthcare delivery models. For example, Aetna and CVS Health have collaborated to establish HealthHUBs, which are retail locations that offer a wide range of healthcare services, including primary care, chronic disease management, and wellness programs. This integration aims to improve access to affordable healthcare services and enhance the overall customer experience.
CVS Health has been involved in initiatives to support healthcare innovation and improve population health outcomes. Like many of its competitors, CVS Health has partnered with healthcare providers and organizations on value-based care models and alternative payment arrangements.
It’s worth noting some of CVS’s other subsidiaries to understand their interplay and the scope of this healthcare giant:
CVS pharmacies
CVS Caremark Pharmacy Benefits Management
CVS Minute Clinics - fast, basic urgent care within pharmacy locations, plus online services
Signify Health (acquired 2022) - Home based care delivery
Oak Street Health (acquired 2023)- virtual and in-person primary care
The combination of these services puts it in a competitive realm with UHG
Sources:
https://news.yahoo.com/how-cvs-evolved-from-retail-pharmacy-into-health-care-behemoth-130515054.html?
https://www.macrotrends.net/stocks/charts/CVS/cvs-health/gross-profit#:~:text=CVS%20Health%20gross%20profit%20for%20the%20twelve%20months%20ending%20March,a%207.97%25%20increase%20from%202021.
https://www.forbes.com/advisor/health-insurance/largest-health-insurance-companies/
https://www.insurancebusinessmag.com/us/news/life-insurance/top-10-health-insurance-companies-in-the-us-212292.aspx
https://en.wikipedia.org/wiki/CVS_Health
https://en.wikipedia.org/wiki/Aetna
https://www.aetna.com/