UnitedHealth Group and CVS Health are exploring the possibility of adding to their vast enterprises, executives said at the Wells Fargo Annual Healthcare Conference Wednesday.
Both conglomerates see acquisitions as part of their future as they rebound after a tough few years, company leaders said.
UnitedHealth Group expects to deploy stock buybacks more aggressively and to consider deals over the next five years, said Chief Financial Officer Wayne DeVeydt. The company will focus on value-based care and deals to support Optum Insight, the data analytics and consulting division of its Optum subsidiary, he said.
“We would expect to be reengaged in the acquisition space as we have historically been, albeit a lot more focus on what we think are the big growth drivers over time,” DeVeydt said.
CVS Health will target “bolt-on acquisitions” and will resume with share buybacks next year, said Chief Financial Officer Brian Newman.
Optum completed a $3.3 billion acquisition of home health company Amedisys last year, but UnitedHealth Group has sold home health and hospice locations to various buyers. On Wednesday, the company announced a deal to sell Optum clinics in Florida to the private equity firm TPG, which purchased Optum UK earlier this year.
CVS Health will sell long-term care pharmacy services provider Omnicare after settling False Claims Act allegations with the Justice Department. The company sold an accountable care division to physician-enablement vendor Wellvana last year.