What the business is
US pharmacy chain, owner of the MinuteClinic walk-in clinics and, since November 2018, health insurer Aetna.
The bet
Drugstores can become health-care destinations: more clinic, dietitians and care coordination in-store keeps insured patients healthier and cheaper.
Starting capital
CVS has said the combined company has capital expenditure of about $2.6B a year for remodeling stores.
How it started
After the Aetna deal closed in November 2018, CVS opened three pilot stores in the Houston area in December 2018. They give more space to services for chronic conditions such as diabetes, hypertension and asthma.
What happened
A 'care concierge' guides customers through services, kiosks check blood pressure and weight, and a dietitian can connect people to Noom. About 100 regular Aetna patients get a special health consultation at each prescription pickup, and services are open to all customers.
How it ended up
In February 2019 CVS said early customer feedback was positive and that it would run focus groups in coming weeks. Hourican said CVS would not convert all stores to HealthHUBs but would likely roll out individual pieces if they worked.
What has to be true
As an insurer, CVS wanted its patients healthier and less expensive to insure, and drugstores gave it local points of care.
Consumers shop less in stores and more online, so retail space is less profitable.
Amazon bought into prescription delivery with PillPack, adding pressure on drugstores.
What can be applied
An insurer that owns the storefront can pay to keep customers healthy; CVS tested the concept in three stores and promised to roll out only the pieces that worked.
Aftermath
As of 13 February 2019, three HealthHUB pilots were running in Houston, CVS would hold customer focus groups, and executives said they would take pieces of the concept to more stores rather than convert all of them.
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