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CVS Health’s $8 billion deal to purchase home health provider Signify Health is its latest step to transform from a retailer into a healthcare services enterprise.
The 59-year-old company has a hand in health insurance, pharmacy services, virtual care, consumer goods and more. Signify Health adds physician enablement and home health services to CVS Health’s roster.
By leaning into healthcare services, the company aims to grow its adjusted earnings by $900 million over the next two years. To do that, CVS Health will need to purchase a primary care provider, Chief Financial Officer Shawn Guertin told analysts Tuesday on a call about the Signify Health deal.
Signify Health represents CVS Health’s foray into the health risk assessment market – an area rival Medicare Advantage carriers UnitedHealthcare and Humana have been investing in and already hold a firm foothold.
“There’s a lot of logic starting where we are right now with home health,” Guertin said. “But really, the strategy was never to be a one-and-done.”
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