CVS Health will digitize its operations using Microsoft’s services, and co-develop healthcare products with the tech giant to help its 30,000 employees more efficiently offer consumer care.
The partnership, which merges Microsoft’s Azure cloud computing capabilities with CVS’ consumer healthcare services and Aetna insurer arm, was announced Thursday and comes as more healthcare companies heighten their focus on digitization. Insurers expect their technology budgets to rise 13.7% in 2022, with most payers aiming to invest in artificial intelligence, cloud, data privacy and processing and analytics systems, according to Deloitte Financial Services’ 2022 insurance insights report.
CVS was unable to respond to questions about the financial terms of the five-year deal, whether any employees would be laid off and how this fits into the retail giant’s evolving business strategy. The new alliance comes just two weeks after the company announced it was closing 900 stores over the next three years in a bid to reimagine what retail healthcare could look like.
“We are rapidly transforming into a consumer-centric, integrated health solutions company, taking a digital-first, technology forward approach to all that we do,” Roshan Navagamuwa, CVS’ chief information officer, said in a news release. “Business services at this scale requires a new level of partnership. Our collaboration with Microsoft will accelerate this work and empower our employees to provide quality care that is more personal and affordable.”
Through the venture, CVS will have access to the more than 1,500 business applications available through Microsoft’s Azure cloud. The company plans to combine Microsoft Teams’ workflow with its retail representatives to help CVS workers answer common customer questions.
Microsoft Teams previously announced it would work with Teladoc Health to integrate virtual care onto its social messaging platform.
CVS also aims to focus on digitizing and automating is its pharmacy services, with the goal of eventually delivering customized and convenient health recommendations to consumers. CVS has already built a platform using Microsoft’s tech that integrates patient information from across CVS and uses machine learning to predict individual needs, like sending personalized reminders to receive annual flu vaccines or cancer screenings, counseling on individuals’ drug side effects or even reminding fair-skinned customers to buy sunscreen. CVS’ ultimate goal is to use Azure’s machine learning systems to personalize and foster customer loyalty to its 10,000 retail stores.
The company has already digitized the intake of 40% of its specialty pharmacy claims.
Going forward, CVS plans to continue to deploy Microsoft Azure cloud’s computer vision and text analytics for health systems across the company.
The company will also explore how Microsoft’s HoloLens augmented reality smart glasses, Dynamics 365 Guides on-the-job explainers and remote assistance tools can make its 30,000 employees more efficient. CVS and Microsoft will work together to develop Microsoft’s Azure AI and cognitive capability technologies.
“We are excited to partner with CVS Health on its digital transformation journey, collaborating together on how the company manages health data at scale, improves the customer experience and drives operational efficiency,” Judson Althoff, Microsoft’s chief commercial officer, said in a release. “With the Azure platform and its AI capabilities, we will combine the power of data, the expansive reach of CVS Health’s world-class solutions, and Microsoft Teams to connect healthcare experts and create customized care and services that enable people to live healthier lives.”
The announcement comes just weeks after Microsoft announced it had updated its healthcare-specific cloud offering to join the tech giant’s existing Azure, Teams and other services to help providers with telehealth, care management and patient engagement.
The company has integrated its Cloud for Healthcare service with several electronic health record systems, like Cerner.
Truveta also recently partnered with Cloud for Healthcare to integrate the 17-hospital group’s de-identified patient data into Microsoft’s set of cloud services and products. The integration will help Truveta reach new researcher and pharmaceutical company customers, who could use the aggregated data and Azure’s AI tools to develop new products.