DPC JOURNAL | Top Stories, DPC Perspectives & Latest Interviews

Analysis | CVS-Aetna Forcing Hospitals to Rethink Their Business Models

By John Commins     October 12, 2018

Encroachment into the provider space is happening because traditional providers are failing to meet consumer demands on price, access, choice, and convenience.


Retail providers will poach walk-ins and patients seeking high-margin procedures. Hospitals will fail if they can’t distinguish themselves on care, cost, customer service, or outcomes-based models. Convenience, access, and patient experience will also be key metrics for success.

The all-but-completed merger of CVS Health and Aetna is a response to the accelerating shift toward consumer-oriented healthcare delivery, says Gurpreet Singh, Health Services Leader at PwC.

Nontraditional companies from the retail and tech sectors will continue to enter the nearly $3 trillion healthcare sector to provide services that were once the exclusive domain of traditional care givers, Singh says. Traditional providers who don’t adapt to this shift risk extinction, he warns.

“This is happening because there is an unmet need for the consumer,” he says. “The consumer demands choice, access, convenience, and a cost-efficient price for services that, typically for a hospital, are higher-margin businesses,” Singh tells HealthLeaders.


SOURCE: https://www.healthleadersmedia.com/strategy/cvs-aetna-forcing-hospitals-rethink-their-business-models

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