CVS Health Makes Changes Heading Into 2024
CVS Health is actively undertaking a significant rebranding and expansion, signaling a crucial transformation in its business approach. The company is transitioning to fixed rates for reimbursements from pharmacy benefit managers and insurers. This shift aims to enhance transparency amid the growing scrutiny over high drug prices.
Cost concerns cause millions of U.S. adults not to follow their prescribed medication regimens, according to a report from The Centers for Disease Control and Prevention. This nonadherence escalates healthcare costs and deteriorates patient well-being. Financial constraints lead patients to skip medications, worsening their health and often resulting in costly emergency care or hospitalization.
In a JAMA Network study, some patients sacrificed basic needs or incurred debt to afford medications. This situation emphasizes the urgent need for healthcare systems and providers to tackle the financial burden of prescriptions on patients and to innovate in increasing the affordability and adherence to medications.
CVS Health's recent earnings Karen Lynch, President and CEO of CVS Health, announced strong third-quarter results, emphasizing the effectiveness of the company's diversified business model. The company achieved an adjusted EPS of $2.21 and an adjusted operating income of nearly $4.5 billion. Consolidated revenues for the quarter approached $90 billion, an 11% increase from the previous year. The company generated significant operating cash flows, with a year-to-date total of $16.1 billion. CVS Health reaffirmed its 2023 adjusted EPS guidance range of $8.50 to $8.70.
Let's see how 2024 goes for them.