CVS Made a $69 Billion Bet It Can Become the First Place You Go When You’re Sick

The $69 billion deal creates a new type of company that includes a health insurer, a retail pharmacy, and a company that negotiates prescription drug prices with drugmakers called a pharmacy benefits manager, according to this Business Insider news story.

Robert Handfield, Bank of American University Distinguished Professor of Supply Chain Management at Poole College, told Business Insider in October that one area where this deal would help CVS out is by directing Aetna members to CVS’s pharmacy locations. The actual amount of money prescriptions bring into pharmacies isn’t all that much, Handfield said; it’s what else you buy while you’re at the pharmacy — snacks, drinks, beauty products — that makes pharmacies a booming business.

Read the full story here.

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