It's time now for today explain this is where we
break down some of the biggest stories in the news
, how we got here and where we go next
. Healthcare companies are finally acting on the advice that
your parents probably gave you a long time ago,
announced of prevention is worth more than a pound of
cure. Well in the healthcare industry, they call
this value based care and companies are throwing billions of
dollars at it. They're also trying to reduce their
cost per patient by reducing the need for expensive hospital
stays and other pricey medical treatments. Just this week
, CBS announced it's spending$10.6 billion to buy Oak
Street Health. You may know CBS as a pharmacy
, but it's also a very big insurance company.
It ensures more than three million people covered by Medicare
Advantage plans. Oak street runs medical centers for a
lower to middle income people also covered by Medicare advantage
plans. In a press release, Oak Street Ceo
said in part this agreement with CVS health will accelerate
our ability to continue improving health outcomes, lowering medical
costs and providing a better patient experience while offering significant
value to our shareholders. And that's key for the
now, this is not CVS only big merger.
It also bought signify last september to provide more health
care for patients in their homes. And CVS is
not the only company looking to expand its footprint in
primary and urgent care since the Covid 19 Pandemic Walgreens
Boots Alliance acquired medical practice. Summit Health just last
year that parent company is, it's the parent company
of urgent care Clinic City, MD. And regulators
are still reviewing aspects of a deal amazon struck to
buy one medical. These deals, they're all part
of this value based care model, which changes how
doctors are compensated. They want to be, they
want to incentivize doctors to keep patients healthy rather than
being paid for every service that they perform. The
idea here is to help people stay on their regular
medications, control chronic health problems like diabetes and avoid
hospital stays and other expensive medical treatments, which can
boost costs.