CVS digital strategies due to COVID-19 helped drive strong first quarter

CVS Health’s underlying main functionality for the to start with quarter was powerful, driven in big component by the company’s customer-centric electronic approach through the COVID-19 pandemic, CEO and President Larry Merlo stated Wednesday through the earnings phone.

The use of telemedicine for virtual visits via MinuteClinic was up 600% compared to the to start with quarter of 2019.

Retail prescription house shipping and delivery increased by more than 1,000%. In addition, CVS observed a 4-fold enhance in consumers adding front-of-the store products to their prescription deliveries.

In specialty pharmacy, electronic refills were being up about 50%, Merlo stated.

The Aetna Health application engaged more homes in Q1 than in the to start with a few quarters of 2019.

CVS opened big-scale COVID-19 testing sites across 5 states through the quarter and is establishing other individuals, with the focus on of possessing testing in 1,000 spots by the stop of May. By May four, the firm had administered near to ninety,000 checks with actual-time final results.

WHY THIS Issues

COVID-19 has sped up use of the electronic practical experience and in individual, telehealth.

The electronic practical experience thanks to COVID-19 could become the new norm, in accordance to Merlo.

“And in conjunction with more actions these as relaxing regulation, we are looking at a new standard emerge,” Merlo stated. “And in the close to long term, there will be an evaluation issue of what labored and what did not. And as a final result, we assume that things of present-day new norm will become component of tomorrow’s daily routines.”

Economic Benefits

CVS claimed to start with-quarter net income of $two billion, compared with $1.four billion in the to start with quarter of 2019.

CVS’s functionality displays an acceleration of prescriptions dispensed, powerful front-store gross sales and a modest reduction in discretionary professional medical utilization, all mostly driven by COVID-19, the firm stated.

Aside from the pandemic, Q1 final results demonstrate the ongoing accomplishment of CVS’s integrated healthcare approach. This consists of the addition of Aetna in 2018.

Medicare Advantage prepare expansion grew by eleven.three%, outpacing the field regular.

CVS also observed Medicaid membership expansion, driven mostly by the acquisition of IlliniCare. The powerful governing administration expansion aligns with what other overall health insurers are reporting in Q1.

Business membership was down, mostly thanks to a drop in labor caused by the pandemic.

THE Much larger Development

Presented the likelihood of considerable variability in the impact of COVID-19, CVS withdrew more steering for 2020.

All categories are predicted to be down in April, right after a peak in March, CVS stated.

For instance, Aetna observed a fall-off of all around thirty% in the use of healthcare expert services in April, as elective strategies were being postponed, but the deficiency of present-day treatment could final result in larger utilization later.

ON THE File

“When struggling with any overall health crisis, such as this pandemic, we’re uniquely positioned to fully grasp customer and patient requires and how to address them. This consists of rising accessibility to drugs and virtual care, and testing 1000’s for the virus each and every working day to ready our place to reopen safely and securely,” CVS Health President and CEO Larry J. Merlo stated.

Twitter: @SusanJMorse
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