Our headline is tongue-in-cheek, of course, but CVS Health, the self-described pharmacy innovation company, has had a big year. A big year.
Last fall, it removed tobacco products from its shelves and changed its name as part of a rebranding strategy. Earlier this year, its MinuteClinics reached the milestone of 21 million patient visits. And just this week it announced a plan to buy Target’s pharmacy and clinic business for $1.9 billion. Eighty of the Target clinics will be rebranded as MinuteClinics, part of the CVS Health plan to operate 1,500 clinics by 2017. And the more than 1,600 Target pharmacies? They’ll bring the total number of CVS Health retail pharmacies to over 9,400 (it currently operates 7,800).
As we all know, the healthcare industry is undergoing a dramatic reshuffling… one with far-reaching political and financial implications. Everyone is clamoring not only to re-affirm their own roles but also to capture new opportunities (i.e. going after a larger piece of the pie). CVS Health’s move into Target stores is, of course, financially motivated. However, we think it represents far more than that.
In a very concrete way CVS Health is staking claim to one of the most coveted prizes in the industry: consumer attention. By making things easier and more convenient for the consumer, CVS Health is “shaping the future of healthcare,” according to its website. And others are going to need to figure out how to compete.
The press release about the purchase agreement states, “The transaction enables CVS Health to reach more patients, adding a new retail channel for its offerings and expanding convenient options for consumers.” In addition, it quotes CVS Health President and CEO Larry Merlo: “When we introduced the new name for our company, CVS Health, we began a new era of growth with a broader healthcare focus and an appreciation of the rise of healthcare consumerism with consumer choice and accountability growing. This relationship with Target will provide consumers with expanded options and access to our unique healthcare services that lead to better health outcomes and lower overall healthcare costs.”
A new era. Indeed. Consumer-driven healthcare is, literally, re-configuring the landscape. What’s it mean for you? How will you respond?