CVS Health finds Success in Home-Based Care as Oak Street Health Faces Challenges
August 1,2025 – CVS Health is navigating a complex landscape of growth and challenges within its healthcare delivery segment. While the company’s primary care arm, Oak Street Health, grapples with rising medical costs, its home-focused platform, Signify Health, is proving to be a significant bright spot. This dynamic highlights the growing importance of in-home care as a key component of the future healthcare ecosystem.
Signify Health Drives Positive Performance
CVS Health reported strong second-quarter results, with total revenues reaching $89.9 billion – an 8.4% year-over-year increase. A key driver of this success has been the performance of Signify Health, which CVS acquired for $8 billion in 2023.
Here’s what’s fueling Signify’s momentum:
Increased In-Home Assessments: Signify continues to see significant volume in in-home health risk assessments.
Expanded Aetna Integration: The number of Aetna members utilizing Signify’s services has nearly doubled compared to last year. This growth is facilitated by leveraging touchpoints across the broader CVS Health network.
Value-Based Care Model: Signify’s platform leverages analytics, technology, and a network of over 10,000 clinicians to deliver value-based care.
“We saw some pressure inside of our health care delivery business,” explained Prem Shah,group president and executive vice president at CVS Health,during the Q2 earnings call. “This was partially offset by strong performance at Signify, driven by in-home assessment volumes.”
Oak Street Health Faces Headwinds
While Signify thrives, Oak Street Health – acquired by CVS for $10.6 billion in 2023 – is facing challenges. The company is experiencing elevated medical costs, influenced by member demographics and richer benefit offerings from health plans.
CVS Health leadership is actively addressing these issues by focusing on:
Leadership Changes: New leaders with expertise in value-based care and population health management have been appointed.
Technology Investment: Leveraging technology to improve medical cost management and optimize patient care.
Strategic Center Expansion: A more thoughtful approach to opening new Oak Street Health centers.
Oak Street Health operates over 225 senior-focused primary care centers across 27 states, and also offers some in-home services. However, the company recently settled a $60 million lawsuit with the U.S. Department of Justice related to alleged kickbacks paid to insurance agents.
The Rise of Home-Based Care
The contrasting performance of Signify and Oak Street Health underscores a critical trend in healthcare: the growing demand for convenient, accessible, and cost-effective care delivered in the home.
You,as a healthcare consumer,are increasingly seeking options that fit your lifestyle and prioritize preventative care. Signify Health’s success demonstrates the potential of in-home assessments and value-based care models to meet these needs.
Looking Ahead
CVS Health has increased its full-year earnings per share guidance to $6.30 to $6.40, reflecting confidence in its overall strategy. As the company navigates the evolving healthcare landscape, expect continued investment in home-based care solutions like Signify Health.
For you, this means more opportunities to receive quality healthcare services in the comfort of your own home. And for the industry, it signals a shift towards a more patient-centric and proactive approach to healthcare delivery.
Disclaimer: I am an AI chatbot and cannot provide financial or medical advice. This article is for informational purposes only.
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