Consumers Open To Receiving Primary Care at CVS — But Defining Service Level Is Top Challenge

J.D. Power Pulse Survey: Consumer Perceptions of the CVS-Aetna Merger

The CVS-Aetna merger has the potential to create an integrated model for consumer healthcare that could transform the consumer experience. CVS has indicated its focus on the consumer will be its primary strategy to engage customers, improve health outcomes and lower healthcare costs — but the size, scope and nature of the effect will depend on consumers’ response. Are people willing to radically change what it means to “go to the doctor?”

New research from J.D. Power finds a sizable segment of the market is open to the idea.

“Decades of J.D. Power research confirms that the customer experience coupled with high rates of satisfaction ultimately drives consumer decisions and competitive advantage,” says James Beem, Managing Director, J.D. Power Health Intelligence. “Our latest pulse survey finds that enough people are receptive to the CVS-Aetna healthcare delivery model to create the potential for real change — if certain obstacles can be overcome.”

J.D. Power’s December 2018 pulse survey delves into consumer perception of the CVS-Aetna merger and the prospect of receiving care in a CVS retail pharmacy setting. It generated 1,000 responses. More than half (53%) had visited a CVS store within the previous 12 months and 96% said a CVS store was located less than 30 minutes from their home.

45% Would Consider Receiving Primary Care at a CVS Clinic

Among survey respondents, 45% said they probably or definitely would use primary care services at a CVS-based clinic (assuming they had applicable insurance). This is a positive outlook for the merger — but it’s important to note 55% of respondents indicated they would not or probably would not seek primary care services at a CVS-based clinic.

Will Consumers Go to CVS for Higher Acuity Services?

Previous J.D. Power research shows that consumers have high satisfaction with health and wellness services they receive at retail pharmacy settings under current models. However, these are typically low-acuity services and likely do not reflect a CVS/Aetna model seeking to deliver more advanced levels of care or create clinical interventions designed to improve health outcomes.

We see from current J.D. Power research among U.S. Commercial and Medicare Advantage health plan members that defining the consumer experience outside of the traditional primary care is a challenge among health plans and providers. When it comes to pharmacy-based clinics, it appears consumers are in a wait-and-see mode, meaning there is an opportunity for CVS/Aetna and other providers to create a clear customer experience to help consumers navigate new models that serve as primary care delivery.

Younger Patients and Privately Insured Are Most Receptive to CVS-Aetna Model

Willingness to seek care at a CVS clinic is higher among younger adults and those with private health insurance. Following are the percentage of respondents who probably or definitely would use CVS for primary care services by:

Insurance type

· Other source (e.g., military) — 38%

· Medicare (65+, any kind) — 39%

· Medicaid — 45%

· Private health insurance through employer or union — 49%

· Private health insurance self-purchased — 51%

Age

· 65 and over — 36%

· 55 to 64–42%

· 45–54–51%

· 35 to 44–53%

· 25 to 34–53%

Less receptivity among older patients and Medicare recipients may tie to reticence regarding pharmacy-based care for higher acuity conditions. Older patients have a higher incidence of healthcare needs and more complex health issues.

Greater receptivity among those with employer-provided insurance is an opportunity to the extent the new CVS model is aimed appropriately at Aetna’s commercial insured members. Given higher receptivity among age bands within the private insured commercial segment, this may be a successful strategy given there is widespread support from employers.

Cost and Convenience Are Growing in Importance

J.D. Power syndicated research studies have not noted a shift among Commercial and Medicare Advantage health plan members when it comes to the factors driving provider selection. Historically, a patient’s relationship with a provider and whether a provider participates in the patient’s health plan network were the primary drivers of this decision.

In our J.D. Power CVS/Aetna Pulse survey, a small majority of respondents said they would not be swayed by cost or convenience — and a sizeable minority said they would.

· If a CVS-based clinic was located closer to your home than your current primary care doctor, how likely would you be to switch to CVS for care? (Assume both are in-network.) Nearly 58% said they probably or definitely would not switch while 42% probably or definitely would.

· If you could lower your healthcare costs by selecting a CVS-based clinic for primary care needs, how likely would you be to switch to CVS. This one is closer, with 47% saying price would likely spur them to try a CVS clinic.

Consumers Don’t Expect CVS-Aetna Model to Affect Healthcare Outcomes

The pulse survey asked respondents whether integrating their care between a pharmacist, physician and nutritionist at a CVS-based clinic would improve their overall health:

· 65% said their health would stay the same.

· 20% said it would improve.

· 15% said it would decline.

This is a challenge for disruptors to the primary care space and acknowledgment that quality is not currently a strong selling point — but an opportunity to create definition on how integrated services under this model can improve healthcare outcomes.

Views Diverge on Coordinated Care

Respondents were split on whether CVS could deliver a more coordinated care.

· Indicate your agreement: A CVS healthcare option would provide a more coordinated approach to managing my health across all my healthcare providers than what I receive from my current primary care provider. By a small margin (53% to 47%), respondents disagreed.

· Respondents were evenly split when asked, How likely are you to use CVS for primary care if it collaborated with your local healthcare system (shared doctors and signage) compared to providing standalone services?

Care coordination is critical to provider performance assessment in the CMS Star Ratings, and J.D. Power research has found that coordination programs are frequently associated with cost containment and efforts to improve care and also have a positive effect on patient experiences.

The Glass is Half Full. Nearly.

Nearly half of the healthcare consumers surveyed are open to using a CVS-based clinic for healthcare. Nearly half can be persuaded by lower costs or greater convenience to switch providers.

Nearly half believe CVS can improve in the coordination of their care.

More importantly, there is not a perceived quality gap to overcome. Eighty percent expect the quality of care at CVS would be equal to or better than the care they currently receive.

With that landscape, it’s easy to envision the opportunity to engage patients and deliver a high-quality experience that solidifies loyalty and expands the services that customers trust CVS to deliver.

That assumes, however, that the foundational work required for success is clear to the healthcare consumer:

· Give healthcare consumers a clear definition of services offered and organizations engaged in their care.

· Highlight the benefits of integrated, coordinated and consistent healthcare.

· Detail the short- and long-term costs benefits of choosing a retail pharmacy-based provider.

· Target consumer segments that are the best fit for retail clinics.

· Recognize the challenge for consumer segments that find difficulty navigating the healthcare system and address those challenge with reassuring experiences.

About This Pulse Survey:

The J.D. Power Pulse Survey on the consumer perceptions of the CVS-Aetna mergers was authored by, James Beem, Managing Director, J.D. Power Health Intelligence. The survey includes responses from 1,000 U.S. consumers, and was fielded in December 2018.

Media Contacts:

Geno Effler; Costa Mesa, Calif.; 714–621–6224; media.relations@jdpa.com
Brian Jaklitsch; St. James, N.Y.; 631–584–2200; brian@jroderick.com

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