The Boston Globe this morning reports that "executives at CVS Health told investors Thursday that the company believes sales will increase as it expands primary care and other health care services in its stores, which they claim will be more affordable and convenient for consumers.
"Dr. Troyen A. Brennan, the company’s chief medical officer, told investors that the company’s target consumers for their expanded primary care services are seniors and seniors at risk. In the future, he said, some specialty services will be added as well as an expansion made in mental health services."
The story goes on:
"The drugstore chain will focus on priority areas in its new strategic plan, which will include advancing primary care delivery by guiding consumers across the care continuum to sites and to providers that will meet their needs, both in the store and virtually through. CVS will launch a new all-payer health products and services such as home health services, the launch of health-related subscription models for broader populations, the commercialization of analytics and insights, and establishing all-payer and provider enablement services.
"Executives said the company plans to drive a digital-first, technology-forward approach that will expand the company’s reach with its more than 35 million online members, which they said will 'launching new consumer-centric services and offerings, enhancing the customer experience and streamlining business operations — leading to higher customer satisfaction levels and lower costs'."
At the same time, CVS announced that it is "advancing its commitment to addressing maternal health disparities with a $1.74M investment. The funding will support initiatives led by America’s Essential Hospitals, Every Mother Counts, and the National Association of Free & Charitable Clinics."
The company points out that "according to the Centers for Disease Control and Prevention, Black women in the U.S. are three times more likely to die due to pregnancy-related causes compared to white women. Overall, the U.S. has the highest maternal mortality rate among developed countries; 60 percent of those deaths are likely preventable."
- KC's View:
I think this is all laudable and, I'd guess, entirely appropriate in terms of how the company should strategically position itself in terms of health care needs, technology advances, and consumer trends.
That said, I find it a little difficult to reconcile CVS's vision of its future with some of the CVS stores that I've been into, which almost seem schizophrenic in their approach - a little bit about health care, a little bit about convenience retailing, and very little about customer service. Is this a place that I can see as providing primary care services? At the moment, hard to imagine.
Big dreams - and big value propositions - have to be supported by reality. Methinks CVS has some work to do if it is narrative is to be both compelling and authentic.