CVS HEALTH CORPORATION - CVS STOCK NEWS

Federman & Sherwood has launched an investigation into allegations that CVS Caremark misled Oklahoma residents concerning prescription policies. Reports indicate that CVS informed customers that it could only fill 30-day prescriptions due to state law, and that its mail-order pharmacy could not operate in Oklahoma. However, state lawmakers claim these statements are false. Following a settlement with the Oklahoma Insurance Commissioner, CVS was required to clarify that long-term prescription refills were not outlawed, but instead, CVS's communications allegedly spread further misinformation.

CVS Health has announced a partnership with Catholic Health to enhance value-based care for Medicare beneficiaries in the New York area. This collaboration, the first of its kind on Long Island, targets nearly 40,000 fee-for-service Medicare patients. The ACO REACH program will improve care coordination through customized support, including home-based care, transportation, and enhanced health services. Both organizations aim to reduce health disparities and improve health outcomes by using innovative value-based payment models. The partnership builds on Catholic Health's previous successes in the Medicare Shared Savings Program, aiming to provide equitable access to quality health care while reducing unnecessary costs.

CVS Health has successfully installed time delay safe technology in all 838 CVS Pharmacy locations across Florida, including those in Target stores. This initiative aims to reduce pharmacy robberies and the diversion of controlled substances, particularly opioids. The technology electronically delays access to these medications, enhancing safety for customers and employees. CVS has recorded a 50% drop in robberies at locations using this system since its initial implementation in 2015. In addition, CVS continues to support safe medication disposal, with over 3,700 units nationwide collecting more than five million pounds of unwanted medications. Educational programs have reached nearly two million students and parents on the dangers of medication misuse.

CVS Health (NYSE: CVS) announced the appointment of Brian Kane as Executive Vice President and President of Aetna, effective September 1, 2023. Kane, who has a strong background in health care innovation and operational improvements, will join CVS's executive team, reporting to President and CEO Karen S. Lynch. He replaces Daniel Finke, who is stepping down due to health reasons. Kane previously served as CFO at Humana and has extensive experience in health services consulting. He aims to leverage CVS's unique assets, including Aetna, to enhance health care accessibility for Americans. This leadership change is anticipated to bolster CVS's strategy in delivering personalized and affordable health care solutions.

CVS Health (NYSE: CVS) will hold a conference call on May 3, 2023, at 8:00 a.m. ET to discuss its first quarter 2023 financial results. The call will be accessible via an audio webcast on the CVS Health Investor Relations website, where it will be archived for one year. CVS Health is recognized as a leading health solutions company, focusing on improving community health through digital channels and a dedicated workforce of over 300,000 employees, including more than 40,000 healthcare professionals. The company emphasizes making healthcare accessible and affordable for all Americans.

Oak Street Health (NYSE: OSH) has cancelled its 2023 Annual Meeting of Stockholders originally set for April 27, 2023. This decision follows the announcement of an acquisition agreement with CVS Health (NYSE: CVS), which will acquire Oak Street Health for $39.00 per share, totaling an enterprise value of approximately $10.6 billion. The transaction is anticipated to close in the first half of 2023, pending stockholder approval. If the merger does not go through, the Annual Meeting will be rescheduled. Oak Street Health, established in 2012, operates over 170 Medicare-focused care centers across the U.S.

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (ICR) of 'a' (Excellent) for Aetna Life Insurance Company and its subsidiaries, which are wholly owned by CVS Health (CVS). The outlook for FSR is stable, while Long-Term ICR outlook is positive, reflecting strong risk-adjusted capitalization. Aetna has shown substantial growth in Medicare and Medicaid segments, leading to consistent underwriting and net income of $2 billion over the last five years. However, CVS's financial leverage is expected to rise due to ongoing acquisitions, introducing execution risk.

CVS Health has successfully completed its acquisition of Signify Health, with the transaction valued at approximately $8 billion. Each outstanding share of Signify Health's stock was exchanged for $30.50 in cash. This strategic move is aimed at enhancing CVS's value-based care strategy and improving health service delivery, particularly for Medicare Advantage customers. Signify Health boasts a network of over 10,000 clinicians nationwide, who provide in-home care to identify chronic conditions and close care gaps. CVS plans to leverage Signify's capabilities to drive better health outcomes and access to care.