Latest / The Strategy Catalyst Dispatch / The Strategist in Brief: October 10, 2024

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The Strategist in Brief: October 10, 2024 · The Strategy Catalyst Dispatch

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  This is the audio version of the strategist and brief.
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  For October 10th, 20, 24.
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  We're testing this new format to give our readers.
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  More options for consuming our research.
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  If you have feedback, feel free.
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  Free to reach out to us over email@strategycatalystathmacademy.com.
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  CVS is board of directors is conducting.
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  A strategic review of the company and considering a potential breakup.
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  One possibly.
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  Possibility is that the company will separate it's more profitable insurance business.
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  From its struggling retail pharmacy segment.
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  Oak street could be spun off with Aetna.
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  Ana and CVS could seek to sell part of its stake in the primary care business to a PE.
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  PE partner as it seeks capital for scale.
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  If CVS dismiss.
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  Mantles its full flywheel.
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  Before it pays off, it could be a sign that the retail primary.
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  Care model is fundamentally and workable.
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  It could also just be assigned.
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  That investors aren't willing to wait for growth.
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  That will take several years.
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  Especially given.
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  And headwinds and other business lines.
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  Oak Street's model requires clinics to operate.
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  Operate at least three years before reaching financial sustainability.
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  A timeline.
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  Timeline, which has been lengthened by version 28.
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  Coding changes.
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  United.
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  United health groups, financial success suggest that retail pharmacies aren't.
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  A necessary component of the payvider model.
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  However investors may.
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  I just think CVS isn't capable of executing on the flywheel model.
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  It's not promising that the company is now worth less than the market than.
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  Moving on to our next market scan.
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  Through a new partner.
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  Partnership physicians at Mount Sinai health system will recommend Numis weight loss app.
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  To patients and new, more refer users with complex needs to Mount Sinai expert.
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  Experts.
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  The collaboration could be an effective patient acquisition strategy from.
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  Mount Sinai, given that nuMe spends millions to attract patients in digital channels.
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  And with affiliate links that most health systems don't touch.
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  Similarly.
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  nuMe could benefit by having doctors give the service, their stamp of approval.
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  However.
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  However nuMe service has faced controversy in the past, and it has faced.
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  Thousands of better business bureau complaints.
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  Other health systems considering their.
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  Own partnerships with weight loss, disruptors.
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  Need to carefully consider how an endorsement could affect the record.
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  And now our final market scan.
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  The Dana Farber cancer Institute is launching a new pediatric cancer consortium with.
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  With 12 other health systems and academic medical centers aimed at developing.
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  Evidence-based health equity interventions.
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  The consortium's work focuses.
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  On how to best support economically vulnerable patients with complex care needs, which.
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  Which aligns well with the broader philanthropic goals of many nonprofit health systems.
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  The collaborative science model offers systems.
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  The opportunity to participate.
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  In industry leading research or reducing the overhead involved.
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  It brings an interesting.
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  Here's some other news, you should know the FDA announced.
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  That Eli Lilly's GLP one drug tears, appetite, sodas.
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  As Manjaro and zip bound is no longer facing a shortage.
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  Compounding pharmacies, including disruptors, like hymns will face restrictions.
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  Actions on their ability to produce and dispense the drug.
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  Now that it is commercially available.
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  More broadly, the change could undercut the business model of disruptors.
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  Enters the advertise more convenient or cheaper access to the drugs.
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  Wider access could reduce prices in the long run.
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  It could also allow Dr.
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  Doctors to prescribe patients GLP one drugs that best meet their needs instead of whatever's available.
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  In other news, CMS published.
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  Massive study on the acute hospital care at home initiative, finding that the program.
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  Graham was run safely and that patients and their families liked it.
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  Hospital.
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  Hospital at home patients generally had lower mortality.
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  Although readmissions were higher.
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  For patients with complex conditions.
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  They also had a slightly longer.
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  Average length of stay, but costs were slightly lower overall.
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  Uh, lack of payer enthusiasm, considering the small cost savings.
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  And low participation among economically vulnerable populations could limit.
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  Volumes many health systems have scaled back their efforts due to low demand.
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  That concludes our summary of this week.
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  Strategist edition.
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  Edition.
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  Be sure to check out the full version on the web@hmacademy.com.
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  Thanks.