CVS Health’s $20B bet on integrated, tech-enabled care

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CVS Health is investing $20 billion over the next decade to build a more connected, tech-enabled consumer healthcare experience, Yahoo Finance reported June 3.

“The No. 1 complaint from customers is the healthcare experience is not integrated,” Tilak Mandadi, CVS Health’s chief experience and technology officer, told the publication.

Here are six things to know:

  1. CVS isn’t just aiming to modernize its own operations. The company says the platform it is building will be open to outside healthcare players — potentially including hospitals and other payers. If realized, it could serve as a national hub for patient data, care coordination and cost transparency.

  2. Mr. Mandadi told Yahoo Finance that many past efforts at interoperability failed due to a lack of industry-scale commitment. CVS is betting that its vertical integration — across pharmacy, primary care and Aetna insurance — gives it the breadth and trust needed to move the needle. The ultimate aim is a single patient record accessible across touchpoints.

  3. Mr. Mandadi argued that the traditional healthcare journey puts too much burden on the patient — to call, follow up, decipher bills and chase care. CVS wants to proactively communicate with patients before issues arise, using alerts, app notifications and digital dashboards. “If we think issues are brewing, we should be in touch with the consumer, up front,” he said.

  4. CVS is embracing AI to streamline back-end functions like pharmacy voicemail processing, but Mr. Mandadi drew a hard line. He said the company will not use AI for clinical diagnoses, denial decisions or to replace human interaction.

  5. While regulatory clarity around data sharing remains murky, CVS is betting on consumer trust. Mr. Mandadi believes patients are increasingly willing to share data with brands they trust — especially if it reduces friction. But building that trust at scale will still require collaboration across government, legacy health systems and investors.

  6. CVS’s ambition, while not yet fully defined, could shift the healthcare landscape if other large players follow suit. Mr. Mandadi — a former Disney and American Express executive — predicted the U.S. healthcare experience will be “materially different” within five years and “unrecognizable” in 10 years due to advancements in AI and technology.
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