Mark, you have a big deal announced in December, tell me a little bit about CVS Aetna. Well, the whole idea between CVS and Aetna is how can we get closer to the community. CVS has got ten thousand stores within five miles of 80 % of the American public. What better could you have From a stand point of place. Mm- mh. Having said that, there is a lot of work to do to make that happen. And so the changes there are gonna be important. The changes in the insurance sector can be important. The insurance comany isn't gonna be about making anymore it's about facilitating the financing of affordable and convinience care. Well, surely you are making moneya nd I mean, you know, your company. But you don't have to make it there. So when you bring together owner economics in a vertical integration, where you make your money should be where the customer value's at. As you're talking about this I'm thinking well don't you have a great connection with your customers already? You know so much about Them you have so much data on them why do you need these physical locations? What is this giving you that you didn't already have? Well one of the things that's happening with technology is technology is now allowing you to be personalised about your health. Sure. So that means reaching each person not population. And right now we manage populations of risk. And the model is you know we have these huge populations with average risks. we can price them into the market place. we can make enough margin. not grow too fast and all of a sudden we're with the law of numbers. you have big bottom line numbers. in the future it's going to be more about the risk of the individual And how we can use everything but the healthcare system to manage that risk. So the price arbitrage is so significant between what goes on in the current medical industrial complex in healthcare and providing other services in the community that could help a person live a healthier life, that it makes sense to do those things. Which are not covered by benefits. Right. Which are not part of the traditional healthcare system. So you gotta get local, you gotta get personalized, you gotta get in the home. None of which can really be done from Hartford. Talk to me about the personaliztion of medicine. This is a very, very popular topic- Right. Over the last several years in the health community. How does that affect your business? Everybody in the industry's been talking about engagement. How do we engage people in taking care of themselves? Sure. But we never talk to them about them. We talk to them about the ideal human being that, the cover model of Men's Fitness or the best diabetic who doesn't look like they're a diabetic, right? What we have the opportunity now is to say what can we do to help you? Take the next- best action to improve your health, based on what you want to solve about your life, that health is getting in the way of. Sure. So if you're a diabetic with chemoneuropathy, and you can't walk anymore, or it's difficult walking? Then you say, you know what, if we get your diabetes fixed, and we fix those feet, you can run the 5K at the senior center next year. And you've never run an inch I'm not engaged. Right. But if you say, what is it about your feet that bothers you. And they say, you know what, I used to take my grandchildren for a walk in the park and I love doing that or I used to walk to the senior center twice a week to play cards and catch up with my friends and I can't do that anymore. And we say, okay, now if we can get your diabetes under control and get your feet working again, do you want to do that again? Yes. Check the box, okay now what's the next best action you can take to make that plan work? And so all these data people are sitting in the room and these machine learning models that we're building are looking at that individual, their current circumstances, the devices they have in use. Sure. And saying what could we send to them to help them take the next best action. To work on getting their feet working, so they can take their grandchildren for a walk in the park, again. So it's a lifestyle thing. It's all lifestyle. Right. And so if we're gonna help people, we have to get involved in their life, not have them change their life to fit some ideal that we come up with based on population statistics. [ BLANK_AUDIO ]

Aetna CEO: The CVS Deal Isn’t About Making Money

Mark Bertolini explains the idea behind the deal.
