Morning Briefing
Summaries of health policy coverage from major news organizations
Healthcare Powerhouse CVS Health Is Splitting Its Pharmacy, Insurance Wings
The New York Times: CVS To Split Off Pharmacy Business, Ending The Healthcare Conglomerate Era
CVS Health plans to split in two, in a major unraveling of the country’s largest health care conglomerate after years of rampant expansion, the company announced on Wednesday. Under the breakup, planned for the first half of 2028, a new spinoff company, to be called CVS Pharmacy, will house the conglomerate’s approximately 9,000 retail pharmacies, in-store clinics and a warehouse-based operation that sends prescriptions through the mail. (Robbins, 11/4)
In other healthcare industry developments —
Boston Globe: Mass General Brigham CEO Letter Amid Layoffs Stirs Staff Anxiety
Less than two weeks after Mass General Brigham said it had begun laying off workers, the head of the health care system has sent employees a cryptic email saying MGB faces urgent financial challenges and needed to make improvements but provided no specifics. (Saltzman and Wolf, 11/3)
Modern Healthcare: MultiCare, Samaritan Finalize Hospital Merger
MultiCare Health System and Samaritan Health Services closed their merger Sunday. The organizations announced plans to combine about a year ago, when their respective boards approved a membership-substitution agreement that makes MultiCare the parent company of Samaritan. State officials approved the transaction last month. (Kacik, 11/3)
Military.com: VA's New 135,000-Square-Foot Outpatient Clinic Will Serve More Than 120K Veterans
The Department of Veterans Affairs is opening a new outpatient clinic in Sarasota, Fla. The new 135,000-square-foot clinic announced Oct. 30 is the second VA initiative in Sarasota County and is projected to serve more than 120,000 veterans annually across Sarasota and Manatee counties. (Plummer, 11/4)
Modern Healthcare: Providence Remains In Restructuring Mode Amid Health Plan Exit
Providence Health and Services is making headway on its financial turnaround with a strategic reset that includes ending most of its health plan offerings, which has improved its balance sheet. The 51-hospital system based in Renton, Washington, is more than a year into its strategic direction for 2030, which aims for a $1 billion-to-$2 billion financial improvement target by 2028. The mix of cost-cutting and revenue-generating initiatives includes refocusing its core mission through ancillary business sales and joint ventures, workforce reductions, hospital divestitures, standardizing supply purchases and increasing surgical volumes, Providence President and CEO Erik Wexler has said. (Kacik, 11/3)
