Cvs Health Corp Stock Price, News & Analysis

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (ICR) of 'a' (Excellent) for Aetna Life Insurance Company and its subsidiaries, which are wholly owned by CVS Health (CVS). The outlook for FSR is stable, while Long-Term ICR outlook is positive, reflecting strong risk-adjusted capitalization. Aetna has shown substantial growth in Medicare and Medicaid segments, leading to consistent underwriting and net income of $2 billion over the last five years. However, CVS's financial leverage is expected to rise due to ongoing acquisitions, introducing execution risk.

CVS Health has successfully completed its acquisition of Signify Health, with the transaction valued at approximately $8 billion. Each outstanding share of Signify Health's stock was exchanged for $30.50 in cash. This strategic move is aimed at enhancing CVS's value-based care strategy and improving health service delivery, particularly for Medicare Advantage customers. Signify Health boasts a network of over 10,000 clinicians nationwide, who provide in-home care to identify chronic conditions and close care gaps. CVS plans to leverage Signify's capabilities to drive better health outcomes and access to care.

CVS Health announced it anticipates completing its acquisition of Signify Health by March 29, 2023, following the fulfillment of customary closing conditions. The agreement, established in September 2022, involves CVS acquiring Signify for $30.50 per share, totaling approximately $8 billion. Upon completion, Signify will operate as a payor-agnostic business within CVS Health, enhancing its service offerings in the value-based healthcare sector.

CVS Health has declared a quarterly dividend of $0.605 per share, effective for shareholders on record as of April 21, 2023. The payment will be made on May 1, 2023. This decision reflects the company's commitment to returning value to its shareholders while supporting its strategy in health solutions across America. CVS continues to enhance access and lower healthcare costs through its extensive network and dedicated workforce, which includes over 40,000 healthcare professionals.

CVS Health Corporation (NYSE: CVS) reported significant growth in its financial results for Q4 and the full year ending December 31, 2022. Total revenues rose to $83.8 billion in Q4, representing a 9.5% increase year-over-year, while full-year revenues reached $322.5 billion, a 10.4% rise. The company achieved GAAP diluted EPS of $1.75 for Q4 and $3.14 for the full year. Key drivers included an increase in pharmacy claims and the acquisition of Signify Health. However, CVS faced challenges, including opioid litigation charges of $5.8 billion and a loss on asset sales of $2.5 billion.

CVS Health (NYSE: CVS) has announced a definitive agreement to acquire Oak Street Health (NYSE: OSH) in an all-cash deal valued at approximately $10.6 billion, or $39 per share. This acquisition aims to enhance CVS's care delivery strategy, particularly for underserved communities, by leveraging Oak Street's innovative, value-based healthcare model. With over 169 medical centers across 21 states, Oak Street Health focuses on providing quality care for older adults. CVS anticipates significant synergies from the merger, projecting more than $500 million in long-term operating income growth and increased access to healthcare services.

Aetna Better Health of West Virginia has secured a new Medicaid managed care contract from the West Virginia Department of Health and Human Resources to continue serving Mountain Health Promise members. The contract, effective July 1, 2023, will support around 30,000 beneficiaries, providing physical and behavioral health care services, particularly for children in foster care and those receiving adoption assistance. Aetna has invested $6.1 million and $9.3 million to enhance community-based services, aiding in the transition of children from residential facilities. This contract potentially includes three one-year extensions.

CVS Health® (NYSE: CVS) has launched the CVS Health Community Equity Alliance to enhance health access in underserved communities across the U.S. This initiative aims to expand the community health worker workforce, improve connections between healthcare institutions and communities, and address health disparities, particularly in heart and mental health. Initial partners include Meharry Medical College, Sinai Chicago, and Wayne State University. Funding will be provided for tailored initiatives, and the Alliance will promote evidence-based interventions to make healthcare more accessible.

CVS Health has appointed David Joyner as Executive Vice President and President of Pharmacy Services, effective January 30, 2023, and Amy Bricker as Executive Vice President and Chief Product Officer – Consumer, starting in February. Joyner returns to lead the Pharmacy Services segment, overseeing solutions for over 110 million members through CVS Caremark and CVS Specialty, while Bricker will focus on consumer product innovation to meet evolving healthcare needs. The changes come as Dr. Alan Lotvin, the former head of Pharmacy Services, plans his retirement in April after a decade with the company.