CVS Health has announced significant reductions in its infusion services due to ongoing challenges in the healthcare sector.
The company will discontinue certain offerings through its Coram business, including antibiotics and total parenteral nutrition.
CVS Health plans to close or sell 29 pharmacies in response to market pressures.
The discontinuation of these services follows a series of operational adjustments made by CVS Health over the past year.
The infusion sector has faced challenges such as nursing labor shortages and rising operational costs, which have strained profitability.
As a result, CVS Health is reevaluating its service offerings.
The infusion services industry has been grappling with challenges, particularly in terms of workforce availability.
The requirement for a 1-to-1 nurse-to-patient ratio and the need for specialized training have exacerbated the nursing labor shortage. Compensation for infusion nurses is typically higher than that of nonspecialized nurses, further straining provider budgets.
These factors have contributed to CVS Health's decision to scale back its infusion services.
In 2022, CVS Health closed 36 of its 71 Coram clinics and laid off 2,000 employees, including nurses and dietitians, due to high overhead costs, reimbursement delays, and supply shortages.
The recent announcement to discontinue certain infusion services reflects a continued effort to navigate these challenges.
Despite the setbacks, the demand for infusion services remains robust, with over 3.2 million Americans receiving some form of infusion therapy annually.
The infusion services market is characterized by high operational costs and labor shortages.
CVS Health's spokesperson acknowledged these difficulties, stating that Coram has not been immune to the challenges faced by the industry.
CVS Health may implement layoffs in conjunction with the reduction of infusion services.
The decision to cut back on infusion services and close pharmacies reflects CVS Health's ongoing efforts to streamline operations and adapt to a changing healthcare environment.
The company is reportedly exploring the possibility of breaking up its insurance and retail businesses.