Managed Health Care Connect February 14, 2018
A new perspective in the New England Journal of Medicine outlines how the recent deal between CVS and Aetna will change health care in ways that previous mergers have not.
Leemore S Dafny, PhD, of the department of general management at the Harvard Business School, explained in her perspective that the CVS/Aetna deal is the largest the health care industry has ever seen outside of pharma company mergers. She also explained that unlike previous mega-mergers, the CVS/Aetna deal will change health care in unique ways.
“The proposed CVS–Aetna merger is largely “vertical,” involving consolidation “up and down” the value chain,” she wrote. “Vertical mergers enable myriad channels that can actually heighten competition, although there is still a risk that competition...
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