On Sunday, the CVS health said that it had agreed in buying Aetna for approx $69 billion in an agreement that would collage the drug store giant with one of the largest health insurers in the U.S., and also has the capability of reshaping the health and care industry of the nation.
In this year, this is one of the largest transactions made, mirroring the growingly blurred lines between the long-established discrete sphere of a swiftly changing industry. This showcases an effort in making both the companies more appealing to customers as a health care, which was once delivered to an office of a doctor, more frequent reaches out consumers over phone, via an app or a retail clinic.
The collaboration comes at a time of unstable transformation in health care. Hospitals, pharmacy companies, and Insurers are bracing for a possible interference in government programs such as; Medicare as an outcome of the plan of Republican to cut out tax. Congress stays as a stand-off over the Affordable Care Act’s future, whilst consumers and employers are fighting under the load of rising cost of medicals, along with the increasing price of the prescription drugs as well. Also the quick changes in technology have driven the spectre of the new competitors, most marked the Amazon.
The combined CVS-Aetna could itself stand as a formidable figure in this shifting landscape of todays. Jointly the two companies touch most of the main health services, which individuals use on a regular basis, also providing an opportunity in benefitting customers. CVS rules a chain of retail clinics and pharmacies that could be used by Aetna in providing direct care to the patients, while the collaborated company might be much better in offering employers one-stop shopping for their workers for the health insurance.
While this collaboration deal came, there came another fact in mind and that’s the Amazon, who is on its way to step into the pharmacy business, and it have overshadowed many industries, groceries, retail shopping, etc holding a brilliantly strong customer loyalty. So, will Aetna-CVS make it having business partnership dated for 5 years?