Newly Closed Purchases, ACA Exchange Member Surge Color CVS 1Q

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.”

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Leslie Small

Leslie Small

Leslie has been working in journalism since 2009 and reporting on the health care industry since 2014. She has covered the many ups and downs of the Affordable Care Act exchanges, the failed health insurer mega-mergers, and hundreds of other storylines spanning subjects such as Medicaid managed care, Medicare Advantage, employer-sponsored insurance, and prescription drug coverage. As the managing editor of Health Plan Weekly and Radar on Drug Benefits, she writes and edits for both publications while overseeing a small team of reporters who also focus on the managed care sector. Before joining AIS Health, she was a senior editor for the e-newsletter Fierce Health Payer, and she started her career as a copy editor at multiple local newspapers. She graduated with a dual degree in journalism and political science from Penn State University.

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