Drug store CVS is making a $69 billion dollar offer for insurer Aetna as it tries to become a one-stop shop for America’s health care needs. The company announced that it will pay about $207 in cash and stock for each share of Atena, this huge acquisition goes to a company that holds 9,700 drugstores and 1,100 walk in clinics with an insurance covering 22 million people. The deal's impact on prescription drugs is unclear, meaning those prices could be real high or moderately high, and CVS may only negotiate them when they’ve bulked up a bit. However, CVS could transform into a place where people could meet with nurse practitioners, get blood drawn, grab some snacks, and by some cold medicine. CVS is desperately trying to close the gap between itself and other health care competitors, so some see this as a shrewd move. Soon CVS could be replacing aisles with healthcare services.
Questions
- Thoughts on CVS becoming a one-stop pharmaceutical shop?
- On a scale of uncaring to anxious, how do you feel about the uncertainty of the prescription prices?
9 comments:
I think this is absolutely cool. A move to merge pharmacies and retail clinics is definitely bold and revolutionary. This merged company could be better able to offer patients medication and health care services where patients are able to obtain drugs right after their checkups, instead of having to drive over to a separate pharmacy. Thus, medical care will be more easily accessible. Through the development of this new system, healthcare would also grow to be more affordable since both the technology and health information is on site, or at a “one-stop shop.” As for the prescription prices, I read in the article that “the deal's impact on prescription drug prices is uncertain,” which does not indicates higher prices, it simply suggests that the prices are unknown. Furthermore, Leerink analyst David Larsen mentioned that “CVS-Aetna deal...will put pressure on manufacturers to hold down drug prices,” demonstrating that the costs may not increase a great amount. Otherwise, I'm excited to see what happens.
I, too, believe that merging retail clinics and pharmacies is a move in a positive direction for companies like CVS for the average consumer, who might not be able to afford the high price tag associated with big hospital healthcare. However, I also think this may be detrimental from the perspective of medical professionals, some of which would view this as something close to “socialized medicine” since healthcare would not be in the stereotypical hospital setting (I believe the lobbyist group the American Medical Association (AMA) took this anti-socialized medicine approach in the past, but I’m not quite sure if it still upholds this perspective). Though prescription prices may be uncertain, I would like to think that the CVS-Aetna merge would keep their prices low--or at least not significantly higher than they are now--in order to reach a broader scope of people. If this is the case, then this may end up decreasing drug prices because independent or hospital-centered pharmacies would want to compete with CVS in order to keep up a large buyer constituency.
I also believe that CVS becoming a one-stop pharmaceutical shop could be a good thing, especially since people would not have to go through the hassle of scheduling an appointment at a hospital then having to pick up a drug from a pharmacy the next day or so. However, we would have to see what impact this would have on the hospitals that this deal could omit. We also have to see whether people would be able to trust CVS's services right away as oppose to regular hospital services, since some people may feel more comfortable being treated in a stereotypical hospital setting. As for prescription prices, we could see a rise in prices, but I believe if this rise is too high or too sudden, then people could have some power by refusing to take treatment services from CVS, or some other form of resistance, so we probably do not have to worry about this aspect of the deal.
I believe that this new direction which CVS has chosen will make their stores more successful in the future. In today's busy society, a one stop shop for most of ones healthcare needs would help many as well as improve CVS's business. Although prescription drug prices are uncertain, I believe that the merger will not effect these prices. CVS wants to brand itself as a popular health care option while also being economical. It will also be interesting to see if one stop shopping for healthcare will continue to grow.
Building on the comments above, I think it is is a smart move on CVS's part because everyone needs some sort of medication at some point in their lives so it is incredibly convenient for the consumer to stop at one place for their medical needs
I think that this is a great idea from CVS. A one-stop shop, if implemented correctly, can definitely be revolutionary. Because many Americans are busy and don't have much time to spare (along with some people being very lazy), it would be very convenient if they can just go to one place to get what they need. In regards to the uncertainty to the future price of prescription drug prices, I think that this should only have a minute change; I don't see there being a drastic increase or decrease in prices.
I think that this move by CVS would be beneficial to the general public since it would increase the accessibility of receiving healthcare. With easier access to a broader range of health care services, more will be able to receive its benefits as factors such as time, cost and convenience are taken into account and helped. However, I'm not sure how easy the transition will be from receiving services at a traditional medical setting to receiving them at a pharmacy -- I think it will take some time for people to become accustomed to this new practice. I hope that they will be able to keep costs of prescriptions lower to ensure that they really are benefitting the common public.
I also believe that CVS becoming a one-stop shop for the people's health care needs is a great idea. I can see how it would benefit the public and make it more convenient for people to get their full health check and medical assistance. CVS is already a mini health center, and by linking pharmacies with clinics, it would make it a much more accessible. Regarding costs of prescriptions and other medicine, I hope they make it at a reasonable price so people can actually afford it.
I think that this is a move in the right direction for CVS. Becoming a one-stop shop for health care products and needs is very convenient for people. I think this will definitely merge the gap between retail clinics and pharmacies together. With CVS taking this step, I think that it will become a more popular with other pharmacies. As stated above, I really don't think there will be a huge change in cost.
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