From Yahoo Finance: 2025-06-03 11:41:00

CVS Health is investing $20 billion to create a tech-enabled consumer health experience, focusing on interoperability to connect different parts of the healthcare system. The goal is to provide a more proactive approach to healthcare, with notifications on claims and a full picture of patients’ health journeys for doctors and pharmacies.

This investment will impact CVS, its businesses, and competitors in the industry. CVS’s chief experience and technology officer, Tilak Mandadi, emphasizes the need for disruption in the healthcare industry to improve the fragmented healthcare system. The company aims to leverage its scope, size, and customer trust to drive change.

Mandadi envisions a collaborative, integrated healthcare system where patients are informed proactively. The plan involves using technology to enhance insurance claims, cost estimates, and patient communication. CVS will not automate the system completely but will use AI to improve customer experiences, like analyzing voicemails to provide solutions efficiently.

Privacy concerns and legislation challenges are addressed by Mandadi, who believes that consumers will support trusted brands if it enhances their healthcare experiences. CVS’s initiative aligns with public frustration and government efforts to increase transparency and efficiency in healthcare. CVS Health is planning to overhaul the US healthcare system within five to ten years by leveraging AI and tech. The company aims to improve the consumer healthcare experience with the support of legacy players, governments, and private entities. Significant changes are expected in the near future. An external perspective on healthcare experience is deemed necessary. CVS’s plan could revolutionize the industry.

Read more: CVS lays out $20B plan to modernize US consumer healthcare experience