CVS Health launched a rebrand of its healthcare delivery services and made other strategic moves to improve company performance.
The company launched CVS Healthspire, which encompasses Oak Street Health, Signify Health, MinuteClinics and pharmacy benefit manager Caremark, on Dec. 5.
CVS Healthspire will also include Cordavis, a newly created company that will support the production and commercialization of biosimilar drugs. CVS Healthspire plans to integrate services for more connected patient care along with pharmacy benefits.
"Delivering care in a more integrated way — especially for complex patients with chronic health conditions — improves health outcomes and the patient experience," Mike Pykosz, CEO of Oak Street Health and interim president of healthcare delivery, said in a news release. "We are already seeing the benefits of our value-based model to lower the total cost of care for customers, clients, and patients, and we believe we will build on those results as we more fully integrate with our core business."
The newly branded CVS Healthspire separates the company's healthcare services from Aetna, its health plan, which has 25 million members. UnitedHealth Group, Cigna and Elevance have similar strategies dividing healthcare services from their health plans.
In addition to launching the CVS Healthspire brand, CVS Health introduced a new pharmacy reimbursement model, CVS CostVantage. The new model will use a transparent formula built on the cost of each drug, a set markup and fee to develop drug costs and related reimbursement with contracted PBMs.
The company plans to roll out the rebrand before the new year and continue integration efforts throughout 2024. CVS Health reiterated projected total revenue of $351.5 billion to $357.3 billion for 2023, with operating income expected to hit $13.6 billion to $14 billion. CVS Health projected 2024 revenues would hit at least $366 billion and operating income will be at least $15 billion.