CVS Health (NYSE: CVS) is ramping up efforts around two of its most recently acquired home-based care and primary care assets.
“We are scaling capabilities to accelerate growth at both Signify and Oak Street,” Karen Lynch, president and CEO of CVS Health, said during he company’s third-quarter earnings call Wednesday.
CVS Health originally completed its $8 billion acquisition of Signify Health — a value-based platform that offers at-home health risk assessments, among other services — in March. The company closed on its $10.6 billion deal to purchase primary care provider Oak Street Health in May.
On the Oak Street Health side, CVS Health is utilizing these capabilities to offer Medicare-eligible adults access to primary care services.
“While it’s still early, the results of these initiatives are encouraging, and we are excited to share more details at our investor day in December,” Lynch said.
Additionally, Oak Street reached a total of 192 centers and 191,000 at-risk lives by the end of Q3. It expects to open 35 new centers this year.
It saw revenue grow in Q3 by 44% compared to the same quarter last year.
“Oak Street’s clinical model continues to demonstrate exceptional performance,” Tom Cowhey, interim CFO at CVS Health, said during the call. “Last week, CMS released the 2022 savings performance of all ACO REACH participants. Oak Street was among the top 5% of program participants, generating a meaningful gross savings rate of 21%.”
CVS Health is also leveraging Signify Health to reach its CVS Pharmacy patients.
“We are connecting more CVS Pharmacy patients to Signify for in-home evaluation and other services in the home,” Lynch said. “Our trusted relationship with 90 million patients at the pharmacy counter is a powerful connection and the most frequent engagement in health care. By utilizing our pharmacist connection, we have been able to reach more than 50% of Aetna members that Signify was previously unable to reach, enhancing the opportunity to more effectively engage these members in their care.”
Signify Health completed 655,000 in-home evaluations in Q3, a 7% increase compared to Q3 2022. It also saw a 21% increase in revenue growth.
CVS Health’s health services segment – which includes both Signify and Oak Street – brought in $47 billion, an increase of more than 8% year over year.
“This increase was driven by pharmacy drug mix, growth in specialty pharmacy, brand inflation and the addition of Signify and Oak Street,” Cowhey said.
Overall, CVS Health’s total revenues increased to $89.8 billion, a 10.6% increase compared to the same period last year.
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