Retail and pharmacy giant CVS Health is working to quickly ramp up
its capabilities for combating the coronavirus outbreak, CEO Larry Merlo
said Tuesday.
The company was the first retailer to open a drive-up testing
location for the coronavirus on March 19. The site, located in a CVS
parking lot in Shrewsbury, Massachusetts, is only open for first
responders such as firefighters, healthcare workers and police.
During a Wall Street Journal Health Forum hosted virtually Tuesday, Merlo said the company is learning from that process to potentially open new testing sites.
The current volume of testing is limited by the size of the parking
lot and can only accommodate around 100 tests per day, Merlo said. The
company is considering whether school parking lots would work better as
testing sites.
“We do see opportunities as we move forward,” Merlo said.
CVS spokesman Joe Goode told FierceHealthcare that the company has
not announced any plans to open additional sites. “We remain in constant
communication with federal agencies and state officials on the best
path forward,” he said.
Walgreens and Walmart both opened drive-thru testing sites on March
21. The sites also serve front-line healthcare workers and emergency
responders.
While the Trump administration has promised a mass rollout of tests,
supply in the U.S has lagged behind that in other countries.
Commercial drive-thru testing could help increase the volume of testing
so researchers can understand the spread of the virus.
CVS Health has taken several steps in the past several weeks in response to the coronavirus outbreak in the U.S., Merlo said.
The company has waived copays for all diagnostic testing related to
COVID-19 for commercial, Medicare and Medicaid members, Merlo said,
while also waiving copays associated with telemedicine visits for any
reason, which helps consumers limit potential exposure in physicians’
offices.
Merlo also sees the company playing an important role in medication
adherence during the current health crisis, particularly for consumers
with chronic conditions.
To help consumers get easier access to medications, CVS Health is
offering 90-day maintenance medication prescriptions for insured and
Medicare members, and CVS Caremark is working with all its prescription
benefit management clients to waive early refill limits on 30-day
prescription maintenance medications, he said.
In response to current needs for front-line and distribution
warehouse workers, CVS plans to hire 50,000 full-time, part-time and
temporary roles across the country. It’s the “most ambitious hiring
drive in the company’s history,” CVS announced earlier this week.
Roles to be filled include store associates, home delivery drivers,
distribution center employees and member/customer service
professionals. Many roles will be filled by existing CVS Health clients
who have had to furlough workers, including Hilton and Marriott, CVS
said.
Like much of the healthcare industry, the retail giant is having
difficulty getting personal protective gear like masks and gloves for
its current rank of store employees. Healthcare workers across the
country are facing a critical shortage of personal protective equipment
such as N95 masks, surgical masks, isolation gowns and ventilators.
“We are working all avenues to secure the masks and gloves for our
front-line employees. We have secured a limited amount of product that
we have been distributing to our stores in what I will call those ‘hot
spot’ areas,” Merlo said.
Merlo also expressed uncertainty about the financial picture of the
healthcare industry. CVS owns health insurer Aetna, which it acquired in
a $69 billion deal finalized in November 2018.
Health insurers will be paying for most of the testing and treatment
of the virus, and those costs will likely soar. At the same time, many
healthcare providers are canceling elective and diagnostic procedures
during the outbreak, and analysts paint a dire picture of the financial impact of COVID-19 on hospitals.
Merlo said it is too early to project the financial impact of the COVID-19 outbreak for the healthcare industry.
“It’s very fluid. We’re seeing elective surgeries and diagnostic
procures canceled. At the same time, we have waived co-pays and are
working diligently with hospitals and providers to reduce the
administrative burden with transitions in care. That’s something that
will have a better handle on over time. It’s too hard to quantify
anything now,” he said.
CVS has been pushing deeper into healthcare,
including opening HealthHUBs that are expanded health clinics and
offering services to help consumers manage chronic conditions.
Merlo said he sees CVS HealthHUBs, which include virtual care
services, serving as an important resource in the coronavirus outbreak.
“There is an opportunity to make healthcare local and meet people
where they are, in their homes or on their smartphones,” he said. “We
interact with 1 in 3 Americans. We are uniquely positioned to understand
where the needs are and how to address them. We have pharmacies open
across the country while many businesses have closed.”
Merlo said he was encouraged by feedback from CVS’s first
HealthHUB stores in Houston, which were launched in February 2019 as a
pilot. The company rolled out new store designs in Atlanta, Philadelphia
and Tampa, Florida, late last year and earlier this year.
CVS still plans to scale up the program to 1,500 HealthHUB stores in the U.S. by the end of 2021, Merlo said.
https://www.fiercehealthcare.com/tech/what-cvs-doing-to-expand-testing-healthcare-services-during-covid-19
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