Following the recent mega-merger between pharmacy retailer CVS Health and health insurer Aetna, consumers are split on whether or not they would seek primary care services at a CVS-based clinic, according to a new survey.
Market researcher J.D. Power's December 2018 pulse survey delves into consumer perception of the CVS-Aetna merger and the prospect of receiving care in a CVS retail pharmacy setting. The study generated 1,000 responses in December 2018; more than half (53 percent) had visited a CVS store within the previous 12 months and 96 percent said a CVS store was located less than 30 minutes from their home.
Among survey respondents, 45 percent said they probably or definitely would use primary care services at a CVS-based clinic, assuming they had applicable insurance. This is a positive outlook for the merger—but it’s important to note 55 percent of respondents indicated they would not or probably would not seek primary care services at a CVS-based clinic, according to the researchers.
When CVS Health’s $69 billion dollar acquisition of Aetna that completed in November, officials stated that CVS Health has “begun to put the foundational pieces of its new healthcare model in place and, in the coming months, will introduce new programs and services designed to increase access to care, improve health outcomes and reduce medical costs for all consumers. In particular, these programs will target better, more efficient management of chronic disease using the networks, technology and the people of the combined company.”
While previous J.D. Power research has revealed that consumers have high satisfaction with health and wellness services they receive at retail pharmacy settings under current models, these are typically low-acuity services and likely do not reflect a CVS/Aetna model seeking to deliver more advanced levels of care or create clinical interventions designed to improve health outcomes.
According to this latest research, “When it comes to pharmacy-based clinics, it appears consumers are in a wait-and-see mode, meaning there is an opportunity for CVS/Aetna and other providers to create a clear customer experience to help consumers navigate new models that serve as primary care delivery.”
What’s more, the survey asked respondents whether integrating their care between a pharmacist, physician and nutritionist at a CVS-based clinic would improve their overall health:
- 65 percent said their health would stay the same
- 20 percent said it would improve
- 15 percent said it would decline
“This is a challenge for disruptors to the primary care space and acknowledgment that quality is not currently a strong selling point—but an opportunity to create definition on how integrated services under this model can improve healthcare outcomes,” according to the researchers.
Regarding cost and convenience, respondents were asked, if a CVS-based clinic was located closer to their home than their current primary care doctor, how likely would they be to switch to CVS for care—assuming both were in-network? Nearly 58 percent said they probably or definitely would not switch while 42 percent probably or definitely would. And if a CVS-based clinic would lower healthcare costs, 47 percent said that would likely spur them to try a CVS clinic.
Respondents were also split on whether CVS could deliver a more coordinated care. When posed the statement of if “A CVS healthcare option would provide a more coordinated approach to managing my health across all my healthcare providers than what I receive from my current primary care provider,” 53 percent of respondents disagreed, whereas 47 percent agreed.
And, respondents were evenly split when asked, “How likely are you to use CVS for primary care if it collaborated with your local healthcare system (shared doctors and signage) compared to providing standalone services?”
According to J.D. Power researchers, there are reasons that executives of the new company should feel bullish. For instance: nearly half of the healthcare consumers surveyed are open to using a CVS-based clinic for healthcare; nearly half can be persuaded by lower costs or greater convenience to switch providers; and nearly half believe CVS can improve in the coordination of their care.
The analysts noted, “More importantly, there is not a perceived quality gap to overcome. Eighty percent expect the quality of care at CVS would be equal to or better than the care they currently receive. With that landscape, it’s easy to envision the opportunity to engage patients and deliver a high-quality experience that solidifies loyalty and expands the services that customers trust CVS to deliver.”
Some challenges do exist, however, before these benefits could be realized. These include: give healthcare consumers a clear definition of services offered and organizations engaged in their care; highlight the benefits of integrated, coordinated and consistent healthcare; detail the short- and long-term costs benefits of choosing a retail pharmacy-based provider; target consumer segments that are the best fit for retail clinics; and recognize the challenge for consumer segments that find difficulty navigating.
