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CVS Health (CVS) to Improve Primary Care With New Offering

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CVS Health Corporation (CVS - Free Report) recently launched the CVS Health Virtual Primary Care, a new virtual care solution accessible through a single digital platform. The new solution integrates CVS Health’s services, clinical expertise and data for a more coordinated and consumer-centric health care experience. It demonstrates the company’s efforts to improve primary care.

The CVS Health Virtual Primary Care allows consumers to receive care when and where they require it, whether in a retail or community-based setting, through at-home health services or virtually.

The new offering complements Aetna’s virtual care strategy. It is currently being sold to Aetna fully-insured, self-insured plan sponsors and CVS Caremark clients. The new solution would be made available to eligible Aetna members from Jan 1, 2023, and eligible CVS Caremark members in the second quarter of 2023. It will enable the members to obtain health guidance and care coordination that directs them to the lowest cost, clinically-appropriate care.

Detailed Features of the New Offering    

The CVS Health Virtual Primary Care will provide members with access to primary care, on-demand care, chronic condition management, and mental health services virtually, with the option of being seen in-person at an in-network provider, including MinuteClinic. The virtual primary care provider can also assist members in identifying appropriate in-network specialists and other in-network health service providers, if required. Members will be able to schedule timely virtual appointments with their Care Team with the new solution.

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The CVS Health Virtual Primary Care will include a member-selected physician-led Care Team comprising nurse practitioners, registered nurses and licensed vocational nurses. The Care Team will consult with a dedicated CVS pharmacist when necessary, providing opportunities for medication management. In addition, the new solution will use an interoperable electronic health record to help members transition between virtual and in-person care and their clinical data will be shared with other providers.

Providers will be able to offer personalized health alerts based on a comprehensive view of data and care activity to help close gaps in care and maintain wellness.

Industry Prospects

Per a report published in Research and Markets, the global virtual healthcare market is anticipated to grow at a CAGR of 15.9% from 2021 to 2026. Factors such as increasing healthcare costs, remote patient monitoring, growing prevalence of chronic diseases and several initiatives to address the unmet requirement of doctors per patient, among others, can be primarily attributable to market growth.

Given the market potential, the latest launch of CVS Health Virtual Primary Care seems well-timed.

Other Notable Developments

In the first quarter, CVS Health’s Health Care Benefits business arm delivered strong revenue growth, banking on membership growth across all product lines. On a sequential basis, the company saw membership growth of more than 670,000 in the reported quarter. The company benefits from the broad and unique portfolio of assets with the first CVS-Aetna co-branded offerings.

The company also achieved robust revenue growth of 8.6% within pharmacy services, driven by increased pharmacy claims volume, growth in specialty pharmacy and brand inflation. Total pharmacy claims processed rose 5.8% on a 30-day equivalent basis, attributable to strong net new business, greater utilization, and a weaker cough, cold, and flu season in the prior year.

Share Price Performance

The stock has outperformed its industry over the past year. It has gained 16% versus the industry’s 4.8% growth.

Zacks Rank and Key Picks

Currently, CVS Health carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Masimo Corporation (MASI - Free Report) .

AMN Healthcare has a long-term earnings growth rate of 1.1%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 15.6%, on average. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has outperformed its industry in the past year. AMN has gained 7.8% compared with the industry’s 63% fall.

Medpace has a historical growth rate of 27.3%. Medpace’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%. It currently has a Zacks Rank #2 (Buy).

Medpace has outperformed its industry in the past year. MEDP has declined 11.8% compared with the industry’s 63% fall.

Masimo has a historical growth rate of 15.1%. Masimo’s earnings beat estimates in each of the trailing four quarters, the average surprise being 4.4%. The company currently carries a Zacks Rank #2.

Masimo has underperformed the industry in the past year. MASI has declined 33.4% compared with a 14.6% fall of the industry.

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