Amwell signs agreement with CVS Health to provide mental health and primary care services

CVS Health (NYSE: CVS) has tapped telehealth company Amwell to provide its new virtual primary care offering, which includes on-demand behavioral health services.

In May, the retail giant announced plans to launch CVS Health Virtual Primary Care. It will begin rolling out the service to Aetna’s fully insured and self-insured plan sponsors and CVS Caremark customers in January 2023.

“This is a new consumer-centric offering designed to bring together the many elements of the CVS Health ecosystem services into a single, integrated experience with a unified digital gateway,” the CEO of CVS Health said Friday. Amwell, Ido Schoenberg, during the company’s second quarter earnings call. “The CVS Virtual Care Digital Gateway is an exciting new initiative, and we are honored to have been chosen as the backdrop for this vision.”

The service will provide access to primary care, mental health, chronic pain management and the option of in-person care.

This isn’t the first time Amwell and CVS have teamed up. In 2016, the couple partnered with the Cleveland Clinic in a deal to virtually connect CVS MinuteClinic patients to Cleveland Clinic providers.

Amwell’s main competitor, Teladoc, has also entered into agreements with CVS. In 2021, Teladoc and CVS subsidiary Aetna signed an agreement to form Aetna Virtual Primary Care Services.

Seeking to keep pace with its own competitors, such as Walgreens Boots Alliance (Nasdaq: WBA), CVS Health is actively seeking to develop, purchase or partner with a variety of new healthcare capabilities. On Sunday, in fact, The Wall Street Journal reported that the company plans to make an offer for Signify Health (NYSE: SGFY), which would be for sale.

“We plan to improve our health services in three categories: primary care, provider empowerment and home health,” CVS Health CEO Karen Lynch said on a conference call about the results. of the second trimester. “We have several paths to differentiate ourselves from community health care and our ability to achieve our strategic goals. We have very specific criteria that we look at when evaluating our many options. We’re looking to see if there’s a strong management team, a very strong technology stack, the ability to scale, and a path to profitability.

In addition to the CVS agreement, Amwell continues to prioritize broader behavioral health services. It plans to fully integrate its direct-to-consumer behavioral health subsidiary, Silvercloud, into its overall behavioral health solution.

“This positions us to deliver this compelling solution to market faster, enabling our payer and provider customers to reach more members than patients with best-in-class care, resulting in substantial cost savings and patient benefits in this time of great need,” says Schoenberg.

Overall this quarter, Amwell missed earnings per share by $0.02, but beat its revenue forecast by about $390,000. It reported revenue of $64.5 million in the second quarter of 2022.

Schoenberg highlighted behavioral health as a key part of his partnership strategy going forward and outlined insights from his deal with Dignity Health.

“Dignity Health’s digital behavioral health team told us that they aim to make virtual care indistinguishable from in-person care, with insights from the data they use to demonstrate quality outcomes,” Schoenberg said. . “Through our programs, they were able to increase from 300 behavioral health visits per month to over 1,000 per month, enabling Dignity Health to dramatically leverage their providers and expand the benefits of digital care across the bear health ramp.”

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