Back in June of last year, CVS announced it would be transforming 1,500 stores into healthhubs by 2021. Today, CVS stated a big boost in its recent enrollments were thanks to the advantages of the healthhub stores. The company states its fourth quarter of 2019 rose over $1.7 billion, compared to its last quarter a year ago.
What Are the CVS HealthHubs?
The stores now hold less retail space, while making use of the openness for wellness and personalized health care. Taking up more than 20% of space floor clients can now participate in health services that include new durable medical equipment, supplies, and various new product and service combinations. The seven percent of total stores planning to change layout has already bolstered the experience for CVS members, seeing increased prescription volume and usage of healthcare services compared to a control group of traditional stores according to CVS chief executive, Larry Merlo.
From Merger To HealthHubs
These healthhubs come a year after the merger between CVS & Aetna late 2018, a deal of $69 billion acquisition including a $77 billion debt. With 50 stores opening in 2019 with the new healthhub format CVS plans to add another 600-650 in 2020. “As a result of the significant progress we made in 2019, and meeting or exceeding our expectations for the year, we raised our outlook for 2020,” Merlo said. “Client, patient and consumer reception to our innovative product and service offerings, including our HealthHUB locations, has been positive.” This is good news for clients who have CVS. They can expect a store to make the transition near them if in a metropolitan area.
How Have Healthhubs Affected Membership?
These healthhubs give CVS/Aetna a competitive boost when compared to rivals such as Cigna & Humana. The medical membership for Aetna in 2019 was 22.9 million. The MA plans sold helped the company jump 32%. A total of 2.3 million compared to 1.75 million at the end of 2018.
Leave Your Thoughts Below
What do you think about CVS and its Healthhub numbers? Have you noticed a healthhub in or around your area? This new selling point might be something your client is interested in as the expansion continues.
Want more information about CVS/Aetna? Contact Empower Brokerage Aetna Specialist, Gilbert Montemayor at extension 5821. Or contact Empower Brokerage directly by calling 888-539-1633