CVS Health has dealt its Medicare Shared Savings Program accountable care organization business to Wellvana, the companies announced Tuesday.
As part of the all-stock transaction, CVS Health took a minority stake in Wellvana, a privately held physician-enablement vendor. The companies did not disclose the terms of the deal and did not immediately respond to interview requests.
Related: CVS outlines Aetna's 2025 strategy to bolster financials
Under the Shared Savings Program, providers assume financial risk for fee-for-service Medicare beneficiaries. They often contract with third parties to manage care. For example, Columbus-based Ohio State University Wexner Medical Center collaborated with CVS Health to launch a Shared Savings Program ACO last year.
CVS Health is in the midst of a $2 billion cost-cutting initiative to restore profit margins squeezed by struggles at its health insurance subsidiary, Aetna. Over the past year, the company has installed new leadership, laid off workers and scaled back on Medicare and the health insurance exchanges.
