NORTH TEXAS (WBAP/KLIF News ) – CVS is buying Signify Health for $8 billion in an effort to make their footprint in primary care and build on its growing line of health-care services.
Signify offers patient care through virtual and in-person visits, using technology and analytics. It’s a move that has health industry experts answering questions from consumers about how it will impact their medical care and wallets.
Paul Seegert is with PCS Advisors and said whoever controls primary care has a lot of power on the specialities and drug part of the multi-billion dollar industry.
“If you control that primary care visit…even though you’re not required to…you can direct where the other care will go which is many times more of where the money is made in this business,” he said.
While the buyout will allow consumers to have more options and convenient access to healthcare at any given time, Seegert points out some drawbacks.
“Historically, when that’s happened its resulted in higher costs. In other industries when you see consolidations and efficiencies created, often times prices go down. Somehow, we haven’t used the efficiency in our current system to pass on savings to the consumer,” he said.
On the flip side, consumers still have freedom of choice on where they get their follow up care if they use the new CVS service.
The deal comes as other major companies, including Amazon and Walgreens, are moving into the healthcare sector.
Amazon announced in July that it will by One Medical, a membership-based chain of doctor offices, for $3.9 billion.
Walgreens is building hundreds of doctors offices that will be located next to its drug stores via a partnership with Village MD.
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