CVS Health executives confirmed Thursday home health is one of three acquisition targets the company is considering this year. During a conference call with Wall Street analysts, CVS Health CEO Karen Lynch said the company wanted to expand its community healthcare strategy through primary care, provider enablement and home health.
“We have very specific criteria that we look at as we are evaluating our many options,” Lynch explained to analysts. “We look to see if there is a strong management team, we’re looking to see if there is a very strong tech stack, obviously the ability to scale given the size of the company that we are and a pathway to profitability.”
Both Lynch and CFO Shawn Guertin said the company is looking at a number of different options in the care deliver space and were optimistic they could close a deal by the end of this year.
“Our vision is something new and differentiated … and thus there is no one and done asset there,” Guerin said. “While certainly no asset is perfect, there are differences.”
The Woonsocket, RI-based healthcare company hinted it was interested in home care during an investors conference last December. In February, Guertin told analysts during an earnings call that CVS was on the hunt for a home care firm or would possibly launch its own home care business.
The company’s stellar performance during the second quarter helps pave the way for a possible deal. On Wednesday morning, CVS reported revenues rose 11% in the second quarter compared to the same period last year. It earned $2.23 a diluted share on revenues of $80 billion. That compares with $2.10 a share on revenues of $72.6 million during the same period last year. The company also increased guidance for the year from a previous high of $8.40 per share to $8.60.
CVS has been pushing further into the home. In May, the company added virtual primary care to its offerings.
