We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CVS Health (CVS) Team Up to Treat Digestive Disorder Virtually
Read MoreHide Full Article
CVS Health Corporation’s (CVS - Free Report) company, Aetna, inked a new value-based agreement that gives Aetna commercial members access to Oshi's integrated multidisciplinary care teams within the network for high-touch care and specialized therapy to get long-term control over chronic digestive disorders. Per the collaboration's initial phase, Aetna is giving access to Oshi to be commercial members in six states, with additional states to be included in 2023.
The latest move will fortify CVS Health’s Health Care Benefits segment.
More on the Collaboration
The collaboration came on the heels of CVS Health Ventures' strategic investment in support of Oshi's Series A fundraising round in 2021. Aetna customers can communicate with the members of their GI care team virtually from their phones and their care journey would be aided by symptom-tracking tools and instant messaging services.
The value-based payment approach created in conjunction with Oshi will provide members with particular diagnoses indicative of chronic GI disorders access to additional care and services required to assist improve their health.
The multidisciplinary GI care strategy can quickly arrive at a diagnosis and give effective relief through whole-person, evidence-based therapy, including frequently overlooked nutritional and psychosocial therapies.
Strategic Implications
Per management, the company will offer members convenient access to integrated, whole-person care for gastrointestinal problems virtually by including Oshi in Aetna’s network of unique providers. The partnership with Oshi allows the company’s members to receive coordinated virtual digestive treatment.
By enhancing results and patient experiences with proactive, integrated care models, virtual clinics realize the potential of value-based care, particularly for stigmatized chronic specialty care categories. By collaborating, companies can support and integrate virtual care providers and add dietary and gut-brain therapies that aren't frequently offered into Aetna's provider networks.
Image Source: Zacks Investment Research
Oshi's virtual-first, comprehensive approach to GI care is consistent with CVS Health's goal to invest in businesses that are helping more people live healthier lives. The partnership with Oshi is a striking illustration of how CVS Health’s investments in high-potential, early-stage businesses contribute to improving consumer health care in terms of accessibility, affordability, and simplicity.
Industry Prospects
Per a report by Grand View Research, the global gastrointestinal therapeutics market size was $37.6 billion in 2022 and is expected to expand at a CAGR)of 3.3% by 2030. The increasing prevalence of gastrointestinal disorders such as IBS, Crohn’s disease, and ulcerative colitis and the rising demand for gastrointestinal drugs are the major factors driving the market.
Progress Within Health Care Benefits Arm
Health Care Benefits segment has been exhibiting continued strong momentum for the past few quarters following the colossal acquisition of Aetna. This segment has been exhibiting continued strong momentum for the past few quarters. In the fourth quarter, the business delivered strong revenue growth of 11.3% year over year, banking on growth across all product lines. During the reported quarter, Medical membership increased by 109,000 members compared, reflecting increases across all product lines. The segment witnessed favorable development of prior periods’ healthcare cost estimates in its Government Services and Commercial businesses during the fourth quarter.
In January 2023, CVS Health’s Accountable Care Organization division partnered with RUSH University System for Health (RUSH) to extend access for Medicare patients in the Chicago area. The collaboration establishes new Accountable Care that focuses on health equity, coordinated care and enhanced access.
Price Performance
Shares of the company have lost 12.4% in the past six months compared with the industry’s fall of 8.8%.
Zacks Rank and Key Picks
CVS Health carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Avanos Medical, Inc. (AVNS - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
Hologic has inched up 3.1% against the industry’s 16% fall in the past year.
Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 7.7% compared with the industry’s 5.5% decline in the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 11.8% compared with the industry’s 15.9% decline in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
CVS Health (CVS) Team Up to Treat Digestive Disorder Virtually
CVS Health Corporation’s (CVS - Free Report) company, Aetna, inked a new value-based agreement that gives Aetna commercial members access to Oshi's integrated multidisciplinary care teams within the network for high-touch care and specialized therapy to get long-term control over chronic digestive disorders. Per the collaboration's initial phase, Aetna is giving access to Oshi to be commercial members in six states, with additional states to be included in 2023.
The latest move will fortify CVS Health’s Health Care Benefits segment.
More on the Collaboration
The collaboration came on the heels of CVS Health Ventures' strategic investment in support of Oshi's Series A fundraising round in 2021. Aetna customers can communicate with the members of their GI care team virtually from their phones and their care journey would be aided by symptom-tracking tools and instant messaging services.
The value-based payment approach created in conjunction with Oshi will provide members with particular diagnoses indicative of chronic GI disorders access to additional care and services required to assist improve their health.
The multidisciplinary GI care strategy can quickly arrive at a diagnosis and give effective relief through whole-person, evidence-based therapy, including frequently overlooked nutritional and psychosocial therapies.
Strategic Implications
Per management, the company will offer members convenient access to integrated, whole-person care for gastrointestinal problems virtually by including Oshi in Aetna’s network of unique providers. The partnership with Oshi allows the company’s members to receive coordinated virtual digestive treatment.
By enhancing results and patient experiences with proactive, integrated care models, virtual clinics realize the potential of value-based care, particularly for stigmatized chronic specialty care categories. By collaborating, companies can support and integrate virtual care providers and add dietary and gut-brain therapies that aren't frequently offered into Aetna's provider networks.
Oshi's virtual-first, comprehensive approach to GI care is consistent with CVS Health's goal to invest in businesses that are helping more people live healthier lives. The partnership with Oshi is a striking illustration of how CVS Health’s investments in high-potential, early-stage businesses contribute to improving consumer health care in terms of accessibility, affordability, and simplicity.
Industry Prospects
Per a report by Grand View Research, the global gastrointestinal therapeutics market size was $37.6 billion in 2022 and is expected to expand at a CAGR)of 3.3% by 2030. The increasing prevalence of gastrointestinal disorders such as IBS, Crohn’s disease, and ulcerative colitis and the rising demand for gastrointestinal drugs are the major factors driving the market.
Progress Within Health Care Benefits Arm
Health Care Benefits segment has been exhibiting continued strong momentum for the past few quarters following the colossal acquisition of Aetna. This segment has been exhibiting continued strong momentum for the past few quarters. In the fourth quarter, the business delivered strong revenue growth of 11.3% year over year, banking on growth across all product lines. During the reported quarter, Medical membership increased by 109,000 members compared, reflecting increases across all product lines. The segment witnessed favorable development of prior periods’ healthcare cost estimates in its Government Services and Commercial businesses during the fourth quarter.
In January 2023, CVS Health’s Accountable Care Organization division partnered with RUSH University System for Health (RUSH) to extend access for Medicare patients in the Chicago area. The collaboration establishes new Accountable Care that focuses on health equity, coordinated care and enhanced access.
Price Performance
Shares of the company have lost 12.4% in the past six months compared with the industry’s fall of 8.8%.
Zacks Rank and Key Picks
CVS Health carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Avanos Medical, Inc. (AVNS - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has inched up 3.1% against the industry’s 16% fall in the past year.
Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 7.7% compared with the industry’s 5.5% decline in the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 11.8% compared with the industry’s 15.9% decline in the past year.