CVS Health chief executive officer Larry Merlo Thursday said he sees the coming healthcare company created by Amazon, Berkshire Hathaway and JPMorgan Chase & Co. as more aspirational to what the pharmacy giant will actually accomplish after its merger with Aetna is complete.
Merlo this morning was the latest healthcare company CEO to field questions from industry analysts since the blockbuster announcement last week by Amazon founder Jeff Bezos, Berkshire Hathaway's Warren Buffett and JPMorgan CEO Jamie Dimon that they want to create a health company for their more than 1 million workers.
Initially, the Amazon-Berkshire venture's focus will be on "technology solutions" that will provide U.S. employees and their families with "simplified, high-quality and transparent healthcare at a reasonable cost." Exactly what will be created remains a mystery with executives involved planning a search for a CEO as well as headquarters.
But Merlo seemed to indicate CVS Health's acquisition of Aetna for $69 billion would put them well ahead of anything Amazon and Berkshire may launch.
"What that group aspires to is what we're going to deliver as part of the CVS-Aetna combination," CVS Merlo said of the Amazon-Berkshire venture during a 70-minute conference call Thursday morning to discuss fourth quarter 2017 profits and the company's 2018 outlook.
In buying Aetna, Merlo has said he wants to create a platform "that is easier to use and less expensive for consumers." The combination of Aetna and CVS is expected to create a powerhouse that plays the role of both healthcare payer and medical provider.
CVS has more than 9,800 retail pharmacy locations, more than 1,100 walk-in medical clinics and a pharmacy benefit management company. Aetna, meanwhile is diversified health insurance company with more than 20 million enrollees in commercial health plans, Medicare and Medicaid products.
"We're chomping at the bit to get started," Merlo said of CVS and Aetna executives.
Merlo said CVS is open to partnering with whatever Amazon, Berkshire and JPMorgan create.