Download
HTML Embed
HTML EMBED
Click to Copy

Latest Episodes

Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
Download
HTML Embed
HTML EMBED
Click to Copy
This Is Uncomfortable
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report
Download
HTML Embed
HTML EMBED
Click to Copy
Marketplace Morning Report

Post cigarettes, CVS looks to grow as a health company

Dan Weissmann Aug 4, 2015
Share Now on:
HTML EMBED:
COPY

The pharmacy counter was always in the back of a CVS for a reason. 

As Charles Rhyee, a Cowen and Company analyst, puts it, “They’re hoping that on your way out, you’ll realize, ‘Hey, I need some toothpaste. Or maybe I’ll pick up a newspaper or some gum at the front.’ And all of those are actually higher-margin items” than just picking up a prescription.

Now, the company is investing in providing health services. It’s taken over the pharmacy counter at hundreds of Target stores. CVS, which reports its quarterly earnings Tuesday, bought Omnicare, a company that provides prescription drugs to long-term care facilities. And for years it has been expanding walk-in clinics in its stores.  

That’s what has Mohan Naidu’s attention. He’s a health-care analyst with Oppenheimer. “Convenience care, or the retail care, is going to be one of the biggest growth drivers in the next decade,” he says.

With lots of people getting pushed into high-deductible plans by their employers, Naidu sees an ever-growing number of health-care consumers becoming ever-more cost-sensitive. Advantage: CVS. “The cost is definitely significantly lower going to a retail clinic than going to a physician’s office,” he says. 

If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air.  But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.

Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.

When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.