CVS Health expects 2019 to be a year of transition as it integrates Aetna and focuses on its growth strategy, “creating a more consumer-centric health care experience,” said president and CEO Larry Merlo.
Last November, the drugstore chain completed a $70 billion acquisition of health insurance company Aetna and now the retailer has been working on transforming the customer experience, as seen by its first three concept stores unveiled earlier this month.
“There’s a lot of excitement around the consumer engagement and response,” said Merlo. “Now it’s still early, as we’re in the learning phase and working to define a hub-and-spoke approach, but it’s an example of the work underway.”
- Revenues increased 12.5% and 5.3% for the three months and year ended December 31, 2018, compared to the prior year. Revenue growth was primarily driven by increased pharmacy network claims in the Pharmacy Services segment, increased prescription volume in the Retail/LTC segment and the addition of Aetna.
- Front store revenues remain approximately 23% of total Retail/LTC segment revenues. Front store revenues increased in the three months and year ended December 31, 2018 compared to the prior year primarily driven by increases in health product sales.