NEWMARK KNIGHT FRANK

Large Mergers Reshaping Healthcare

Article commentary by: Garth Hogan, Global Healthcare Services

The recently announced $69B CVS-Aetna deal is another great example of two companies wanting to create community healthcare hubs around the country for patients. This deal would provide a sort of one-stop shop similar to urgent care centers, but with a lot more services.

Right now, CVS has a little over 1,100 walk-in clinics within CVS facilities. Their footprint will likely start to increase.

The need for this change is driven by the demand for accessibility and convenience to patients who need care in all service areas, not just urban settings with ease of transportation. With a broader access point, providers will be able to discover, prevent and treat potential chronic illnesses. CVS locations are already community based and frequented by patients for more than just prescriptions and healthcare issues.

There’s a difference between the possible Aetna and CVS merger and existing retail care, in that this merger could favorably impact patient cost reduction with the “built-in” insurance component. Existing retail clinics provide convenience but are still set up under the current fee for service structure (private insurance/Medicare and Medicaid). There will be continued demand for retail medicine regardless.

Ideally, this could positively impact the existing in-patient facilities scattered throughout the US by creating significant cost savings in catching symptoms early enough to treat prior to requiring in-patient treatment.

Article written by: Shelby Livingston, Modern Healthcare, December 4, 2017

Through their $69 billion deal, CVS Health and Aetna are swinging an ax at the traditional ways in which patients access healthcare in hopes of building a new kind of model that's lower cost and more convenient for the consumer…

Read the full article here

temp-post-image

Download Our
Brochure

Sign Up for Our Newsletter

2017 Healthcare Real Estate Outlook