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The Journal.

How CVS Went From Drugstore to Healthcare Juggernaut

The Journal.

The Wall Street Journal

News, Daily News, Business News

4.25.8K Ratings

🗓️ 15 February 2023

⏱️ 16 minutes

🧾️ Download transcript

Summary

CVS’s plan to buy Oak Street Health, a network of senior-focused clinics, is the latest sign of the growing tie-ups between health insurers and primary-care doctors. WSJ’s Anna Wilde Matthews unpacks why the deal is happening and how it’s cementing CVS’s status as a healthcare giant. Further Reading: - CVS Reaches $10.6 Billion Deal to Buy Clinic Owner Oak Street Health - CVS Looks to Add Doctors to Its Payroll - CVS Completes $70 Billion Acquisition of Aetna Further Listening: - Is Healthcare Amazon's Next Big Thing? Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Most people think of CVS as just a drugstore.

0:08.7

Like the place you go to pick up anything from printer paper to pain relievers.

0:12.6

Yeah, where's the exedrant headache medicine?

0:15.4

My brain or something?

0:17.4

Yeah, my brain.

0:20.6

And of course, as a place that spits out notoriously long receipts.

0:25.2

I got some deodorants, some headache medicines, some toothpaste, and a little toilet pacasso,

0:32.1

my dog.

0:33.1

And their seed is maybe a foot and a half.

0:40.1

For a while now, CVS has been on an acquisition spree, transforming it from just a drugstore

0:45.9

into a healthcare giant.

0:49.3

CVS is absolutely a far bigger company than I think most people know.

0:53.6

Most of us know the pharmacy down the street.

0:56.4

We might go there to buy our shampoo and pick up a prescription.

1:00.0

That's our colleague Anna Matthews who covers the healthcare industry.

1:03.0

But the company is really far, far broader than that and has been becoming broader for many

1:07.5

years now.

1:09.3

And what the company is now saying is they really want to be more at the center of healthcare.

1:15.4

And last week, CVS announced its most recent deal.

1:18.5

It's buying a network of primary care centers called Oak Street Health for more than $10

1:24.0

billion.

1:26.7

Anna says it's part of a wave of consolidation that's reshaping the industry.

...

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