Mega Merger Case Study

Decent Essays
Mergers. Acquisitions. Mega-mergers. Recent years in healthcare have witnessed some of the biggest companies acquiring one another at alarming rates. However, the Wall Street Journal released an article at the end of October that has everyone talking - one of the largest owners of drugstores in the United States is considering buying one of the largest health insurers in the United States. That is right, CVS Health might be purchasing Aetna for approximately $66 billion.

Shutterstock image ID: 452410180 ----- alt tag: x-ray of the skull with fish inside chasing a dollar that symbolizes mega-mergers ---- captions:: Huge corporations are acquiring others in the healthcare market at an alarming rate. New players are entering the healthcare merger conversation.
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Samuelson talks about the fact that this type of merger would be incredibly important, but why? Medical enterprises are striving to deliver a higher quality of care through the use of technology. Mergers and acquisitions are encouraged through the need to have a stronghold on valuable data analytics. Samuelson writes:

"CVS is a diversified healthcare company with operations in pharmacy benefit management, post-acute care and a strong network of health care clinics — it’s not just a drug store chain. By merging with CVS, Aetna gains access to these rich data sources to drive better healthcare practices. The same is true for CVS in reverse. It gets to tap Aetna’s databases and discover, say, which of its policy-holders haven’t received their flu shot and could be solicited by CVS."

The article in the Washington Post points out that even though this acquisition-merger process has been accelerated in recent years - it's only going to gain momentum in as we move into the future of
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