New Health Industry Giant Emerges With Completion Of CVS’ $70B Acquisition Of Aetna
CVS faces a heavy lift in uniting two complicated companies with very different business models and approaches, but company leaders are optimistic that the merger will cut health care costs and improve consumers' experience. The deal has been working its way through state and federal regulators for the past year, and finally gained the last go-ahead needed from New York this week.
The Wall Street Journal:
CVS Completes $70 Billion Acquisition Of Aetna
CVS Health Corp. completed its nearly $70 billion acquisition of Aetna Inc., forging a new industry giant and starting the clock ticking on ambitious goals of curbing health-care costs and improving consumers’ experience. The combined company faces significant challenges in bringing together its diverse set of health assets, including CVS’s sprawling network of pharmacies, a pharmacy-benefit manager and Aetna’s employer insurance, Medicare and Medicaid managed-care businesses. Aetna will be operated as a stand-alone unit, and CVS will continue using the brand in reference to its insurance products. (Wilde Mathews and Al-Muslim, 11/28)
Bloomberg:
CVS Closes $70 Billion Aetna Deal, Ending Long Road To Takeover
The companies announced the takeover almost a year ago in December 2017, promising to create an integrated health-care company whose pharmacy locations could be hubs for medical services while better managing patients. (Armstrong and Langreth, 11/28)
Modern Healthcare:
CVS Health And Aetna Close $70 Billion Merger
"Today marks the start of a new day in health care and a transformative moment for our company and our industry," CVS Health President and CEO Larry Merlo said in the announcement. "By delivering the combined capabilities of our two leading organizations, we will transform the consumer health experience and build healthier communities through a new innovative health care model that is local, easier to use, less expensive and puts consumers at the center of their care." (Livingston, 11/28)
The Hill:
CVS, Aetna Complete $70 Billion Merger
CVS needed final approval from state insurance regulators where Aetna sells its coverage. New York was the final state to grant approval earlier this week. To ease its approval, Aetna said it would sell its Medicare Part D business to WellCare Health Plans. The companies plan to turn CVS's 10,000 pharmacies and clinics into community-based sites of care with nurses and other health professionals available to give diagnoses or do lab work. (Weixel, 11/28)
The CT Mirror:
CVS Says Purchase Of Aetna Is Done Deal
To complete the sale, Aetna was also required to agree to the Justice Department’s demand that it divest itself of its stand-alone Medicare Part D prescription drug plans, which have been sold to approximately 2.2 million customers. Aetna said it will continue to manage those plans through 2019. (Radelat, 11/28)
