The CVS/Aetna Merger Will Transform Healthcare Technology
In Action Summary
Although CVS Health and Aetna’s US$69bn merger deal is expected to transform the nation’s health care industry, the two companies are currently focusing on a mobile app that will bridge offline drug distribution with online.
Nadina J. Rosier, Practice Leader, Willis Towers Watson:e “It’s not going to immediately shake up the world, but I think you have two behemoths — two battleships that are slow to turn — and it will at least create an environment by which information can be shared and innovation can take place.”
CVS and Aetna have a new vision for healthcare, one in which technology plays a critical role
Under this initiative, CVS-Aetna intends to transform CVS’s 10,000 pharmacy and clinic locations into community-based sites of care that would be far less expensive for patients. This transformation has started with back-end operations and initially technology upgrades will be seen in HR, finance and procurement. The Aetna CVS merger will take time as a lot of integration between systems and processes of two companies. There will be lot of vertical technology integration with Aetna looking for technology and analytics for building risk and actuarial capabilities whilst CVS is primarily interested in enhancing its customer relationships. CVS and Aetna will merge service lines that will create customer relationships from purchase to final payment.