Retail, pharmacy and healthcare company CVS Health Corp. on Thursday (Nov. 18) announced that it’s adding primary care offices at some of its locations and converting other stores into health hubs with diagnostic testing, mental health services and hearing exams, according to The Wall Street Journal.
The plan comes as the company announced it’s closing 900 stores in the next three years, which means about 10% of its U.S. locations will be shuttered by the end of 2024. A CVS spokesman said the company will discuss which stores are closing starting early next year.
“The company has been evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business,” CVS said in a company statement.
CVS will incur an impairment charge in the range of $1 billion to $1.2 billion in connection with the store closure plan.
Meanwhile, two CVS executives will succeed Neela Montgomery as co-presidents of its retail business when she leaves at the end of the year after joining CVS in November 2020. Prem Shah, executive vice president of specialty pharmacy and product innovation, will assume the new chief pharmacy officer role; Michelle Peluso, chief customer officer, will oversee the front-store strategy.
CVS had 10,104 locations at the end of 2020, including 200 new stores since 2018. The company will offer jobs in other parts of the company to employees who work in closing stores. CVS hired almost 20,000 pharmacists, pharmacy technicians and nurses in the most recent quarter.
CVS recently reversed its philosophy against having primary care doctors or practices, saying they are a necessary part of the plan to be a go-to spot for medical services, especially for chronic conditions.
Related news: CVS: Consumers ‘Incredibly Challenged’ by Current Healthcare Landscape
CVS Health recently debuted Aetna Virtual Primary Care following the 2018 acquisition of the insurance platform. Patients have access to physicians, specialists, nurses and a personalized preventative healthcare plan, among other features.
Virtual Primary Care visits can also be supplemented by in-person appointments at MinuteClinic and HealthHUB locations.
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