Due to the early close of its deal to purchase Oak Street Health, CVS Health Corp. when reporting first-quarter 2023 results said it would lower its full-year earnings per share (EPS) estimate from a range of $8.70 to $8.90 down to $8.50 to $8.70. Yet that short-term headwind is a small price to pay for the long-term benefits of the transaction combined with another recently closed deal to buy Signify Health, CEO Karen Lynch said during the company’s May 3 earnings call.
“These acquisitions significantly advance our value-based strategy by adding primary care, home-based care, and provider enablement capabilities to our platform,” she said. Moreover, “the combination of Signify, Oak Street and CVS Health creates a value-based, person-centered care platform propelled by the powerful connections between our unique capabilities and assets. This will enable us to drive better patient experience and health outcomes while delivering on our long-term financial goals.”