CVS CEO says company plans to acquire primary care firms

CVS Health plans to merge with or acquire a primary care firm in the coming months in order to expand its services, CEO Karen Lynch said on Wednesday.

Lynch was asked about the company's strategy for entering the primary care space during the company's earnings call, where she said CVS can't be in primary care without M&A, and that we are very encouraged and confident that we'll take the next step on this journey by the end of the year. CVS is one of the largest drugstore chains in the U.S. with more than 10,000 locations, and has 1,100 MinuteClinic locations that provide customers with services for minor injuries and illnesses. In the last quarter, MinuteClinics saw a 12% increase in patient visits.

The company also offers prescription drug plans for major companies through its Caremark arm, and provides health insurance to more than 24 million people after acquiring Aetna.

Lynch said that CVS is pursuing expanding health services in provider enablement and home health categories, as well as expanding into primary care.

CVS competitors Walgreens, Amazon, and Walmart have already entered the primary care space.

Walgreens announced in 2020 that it would introduce in-store doctors' offices through a partnership with VillageMD and Amazon inked a deal last month to acquire One Medical in order to offer primary care services.

Walmart has opened dozens of Walmart Health centers in several states.