NASHVILLE - Wellvana, a value-based care enablement company, has recently acquired the Medicare Shared Savings Program (MSSP) business from CVS Health (NYSE: NYSE:CVS), as announced today. CVS Health, a prominent player in the Healthcare Providers & Services industry with annual revenue of $370.66 billion, continues to demonstrate strong financial health according to InvestingPro analysis. The company’s shares currently appear undervalued based on InvestingPro’s Fair Value assessment. This strategic move not only provides CVS Health with a minority investment in Wellvana but also strengthens Wellvana’s position as a leading company in the value-based care sector, now supporting healthcare providers across 40 states and serving an estimated 1 million Medicare patients. For investors following this development, InvestingPro data shows CVS Health maintains a solid 4.1% dividend yield and has maintained dividend payments for 55 consecutive years, demonstrating long-term financial stability.
The acquisition enhances Wellvana’s capabilities by diversifying its Accountable Care Organization (ACO) presence, extending its network of affiliated hospitals and physicians, and incorporating a team with extensive experience in value-based care and technology from CVS Health’s MSSP business.
Kyle Wailes, President and CEO of Wellvana, emphasized the importance of primary care in reducing costs and improving community health. He stated that the addition of CVS Health’s MSSP business amplifies Wellvana’s impact and fast-tracks their mission to deliver more valuable care to patients.
CVS Health reaffirmed its commitment to value-based care, noting the continuation of its efforts through Oak Street Health®, MinuteClinic®, and accountable care contracts between Aetna and network providers. Sree Chaguturu, MD, President of Health Care Delivery at CVS Health, expressed pride in the CVS Health team’s contribution to the MSSP business and ensured a seamless transition to support ongoing services to clients, providers, and patients.
Physicians joining Wellvana’s network through this acquisition will gain access to resources such as scheduling, administrative support, and value-based care education. Over time, these physicians may also qualify for Wellvana’s Foundational Care™, offering additional medical management support for patients between appointments and post-hospitalization.
While the detailed terms of the transaction have not been publicly disclosed, the acquisition signifies a significant development in the value-based care landscape, with potential implications for the administration and delivery of care to Medicare patients nationwide. This report is based on a press release statement from Wellvana. With CVS Health’s impressive YTD return of 46.41% and strong market position, investors can access detailed analysis and 10 additional exclusive tips through InvestingPro’s comprehensive research reports.
In other recent news, CVS Health reported its fourth-quarter earnings for 2024, surpassing consensus expectations with an adjusted earnings per share of $1.19, which was 29% higher than anticipated. This performance was supported by a favorable medical loss ratio and better-than-expected net investment income. Additionally, Bernstein SocGen Group raised CVS Health’s stock price target to $71, reflecting increased confidence in the company’s earnings potential, particularly from its Aetna segment. Meanwhile, CVS Health is facing scrutiny as part of a broader Department of Justice investigation into Medicare billing practices, which has affected the healthcare sector’s market performance.
In a strategic move, CVS Pharmacy introduced a new 3-in-1 test for Influenza A, Influenza B, and COVID-19, available at around 1,600 locations across 37 states, enhancing its testing and treatment capabilities. The company also offers at-home testing options and emphasizes the importance of vaccinations, providing flu and updated COVID-19 vaccines at its pharmacy and MinuteClinic locations. Furthermore, CVS Health’s former CEO, Karen S. Lynch, joined the board of Thermo Fisher Scientific (NYSE:TMO), bringing her extensive healthcare sector experience to the company. Lastly, CVS Health director Michael F. Mahoney’s $2 million share purchase has been seen as a sign of confidence in the company’s future, positively influencing investor sentiment.
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