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Diving overview:
CVS health is closed In addition to certain infusion services offered through its Corum business, the company plans to close or sell 29 pharmacies in the coming months, a spokesperson confirmed to Healthcare Dive.
Last week, the retail giant stopped accepting new patients for its antibiotics, inotropes, total parenteral nutrition, and acute home infusion therapy programs. We will continue to provide Kolam in the future. Intravenous drip services for specialty drugs and enteral nutrition.
CVS Health may reduce staffing as part of service reductions. Affected employees will be notified in mid-November and will be laid off in the new year, a spokesperson said. The layoffs are in addition to CVS Health's announcement last month that it would lay off 2,900 employees.
Dive Insight:
CVS Health entered the infusion space in 2014. I bought a kolam for $2.1 billion. The retailer is now one of the top three providers of domestic infusion services by revenue, according to an August report from financial services firm Born Partners.
Before Thursday's announcement, CVS Health captured about 15% of the infusion services market. bone Coram estimates it generated approximately $3.8 billion in annual revenue.
more 3.2 million Americans says they receive some type of IV therapy every year. bone's the study. This number will continue to grow in the coming years as the population of people 65 and older is projected to double in the next 30 years, chronic diseases continue to rise, and the Food and Drug Administration greenlights new injection-based drugs. It is expected to increase further.
Still, infusion service providers have faced steady headwinds over the past two years, challenging the venture's profitability.
Nationwide Nursing care shortage According to Bourne Partners, the IV industry has been hit hard because IV therapy requires a 1:1 nurse-to-patient ratio and must be performed by a professionally trained nurse. It is said that there is.
The consultancy says training requirements mean that infusion nurses are paid 10 to 20 percent more than non-specialist nurses, which can put pressure on health care providers' budgets.
2022, CVS Health 36 out of 71 Kollam clinics closed It laid off 2,000 employees, including nutritionists, nurses and pharmacists. KFF News reports that the closures are due to the high overhead costs associated with providing IV services, labor costs, reimbursement delays, and a lack of supply.
Commenting on the recent closure, a CVS spokesperson said: “Intravenous drug providers continue to face a challenging environment in delivering the most highly specialized and complex services, and Corum is not immune to these challenges. It's not like there's any.” “So we re-evaluated the services we offer.”
Last month, CVS Health announced it would lay off 2,900 employees as part of a multibillion-dollar cost-cutting plan. According to media reports, the company may be considering splitting its insurance and retail businesses.
