CVS stock price after Aetna?
Started by sosoo
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Yes. Debt that has already been taken on will be easily tackled with the massive cash generation and CVS’s track record (plenty of examples on SDN) of extreme operating cost containment.
The more mind bending question is if CVS truly makes healthcare deflationary (truely lower the costs for same or better outcomes; not just lower the rate of inflation) what does that mean to the future of their business and finances? Healthier people = healthier population = lower demand for costly utilization = lower premiums (assumption: no dramatic inflation in cost per service; which is a huge assumption) = lower top line revenue and cash generation.
Aligning incentives in the value chain certainly makes some opportunities make more sense but don’t forget if you move a huge chunk of your covered population from using unnecessary costly hospital services to cheaper more appropriate clinics, your underwriting on premiums and MLR is going to be impacted. Great for the public but would be interesting to see how the street would/will respond.
Aetna has some room to grow with respect to market share but that ceiling will approach quick...
Yes. Debt that has already been taken on will be easily tackled with the massive cash generation and CVS’s track record (plenty of examples on SDN) of extreme operating cost containment.
The more mind bending question is if CVS truly makes healthcare deflationary (truely lower the costs for same or better outcomes; not just lower the rate of inflation) what does that mean to the future of their business and finances? Healthier people = healthier population = lower demand for costly utilization = lower premiums (assumption: no dramatic inflation in cost per service; which is a huge assumption) = lower top line revenue and cash generation.
Aligning incentives in the value chain certainly makes some opportunities make more sense but don’t forget if you move a huge chunk of your covered population from using unnecessary costly hospital services to cheaper more appropriate clinics, your underwriting on premiums and MLR is going to be impacted. Great for the public but would be interesting to see how the street would/will respond.
Aetna has some room to grow with respect to market share but that ceiling will approach quick...
you think that's bad wait till Amazon opens up pharmacies in Whole foods.
IT WILL HAPPEN BY 2025.
A MESSAGE TO FUTURE READERS SOMEONE BUMP THIS THREAD IN JANUARY 2025
