Merging as a new power

Merging+as+a+new+power

The american drugstore chain CVS is proposing a 69 billion dollar deal with the medical insurance company Aetna in order to purchase and combine the two brands into a one stop medical pharmaceutical area for customers of Aetna to be able to have their medical needs taken care all in one spot.. Health care currently accounts for 18% of all GDP or gross domestic product in the current united states economy. Such a move might set a precedent for other large Pharmaceutical companies such as walgreens, or big supermarkets that contain pharmaceutical branches such as Walmart and Costco. It could be the first step in privatizing  the health care system entirely with businesses controlling the prices of minor medical costs such as flu shots, and checkups.

There is currently another company making the jump to this model. United Healthcare announced that it would be purchasing DaVita Healthcare group which owns about 300 clinics and outpatient service centers. In this process of vertical integration it will eventually build to a point where clientele will be able to purchase the best priced healthcare but not in entire packages because of the new competition between privatized businesses. Customers will not be caught at the mercy of companies and the power balance will shift.