Massachusetts health regulators have revised spending estimates for the proposed Mass General Brigham-CVS Health affiliation to approximately $39.9 million annually for the first three years, as the parties said they have reached an agreement to move forward.
The figure is only slightly less than the $40 million estimate from April.
The Massachusetts Health Policy Commission released its final cost and market impact review of the deal June 11. Under the proposed affiliation, CVS plans to convert all 37 of its Massachusetts MinuteClinic locations from limited convenience-care sites to MinuteClinic Primary Care locations, with nurse practitioners joining Mass General Brigham’s accountable care organization and value-based contracts with payers.
The commission’s spending projection breaks down into three components:
- Approximately $27.7 million from new primary care patients receiving care at MGB’s higher rates and being referred to Mass General Brigham specialists
- $6.6 million from the repricing of continuing convenience care services, which the commission found average 129% higher at Mass General Brigham than at MinuteClinic
- $5.5 million from patients diverted to other, generally higher-priced providers as MinuteClinic shifts capacity toward primary care panels
Those figures assume moderate acceptance of the model by year three, under which roughly 35% of MinuteClinic patients become primary care panel members. Spending would be significantly higher if panels were filled to maximum size, the report said.
The commission projected the model could connect up to 120,000 adults to a primary care provider over time, with approximately 42,000 primary care patients served by year three. Roughly 15,000 Mass General Brigham patients are currently on a monthslong waitlist with no assigned primary care provider, according to the report.
The parties committed to targeted outreach to MassHealth members and to maintaining pediatric convenience care, which CVS had not initially planned to continue at the converted sites.
CVS said it has reached agreement on the approach needed to move forward and work with the Massachusetts Department of Public Health, which must grant full clinic licensure to the MinuteClinic sites before the transition can proceed.
“We’re pleased to move forward with this affiliation at a time when the primary care shortage is being felt acutely across Massachusetts,” Mass General Brigham said in a statement.
The commission will require ongoing reporting for up to five years post-transaction, covering pricing, panel sizes, payer mix and quality metrics at each site.
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