CVS: The challenges of the qualified nurse are "worse than expected" and the "deterioration" continues on the ground – News

The loss of $ 421 million worth of CVS in the fourth quarter is largely due to the deterioration of the skilled nursing sector, Omnicare's parent company said Wednesday.

Leaders said the business was hampered by a $ 2.2 billion write-down of its long-term care business. The loss of the last quarter contrasts sharply with the profit of $ 3.2 billion recorded during the same period in 2017.

CVS stated that the problems of low occupancy rates and inadequate reimbursement of the skilled nursing sector continue to affect the activities of the pharmacy chain.

General Manager Larry Merlo asked analysts if he considered Omnicare the heart of his business, but he still saw potential in the lives of seniors.

"The opportunity for growth with Omnicare has always been focused on independent and assisted living spaces. These opportunities still exist and are consistent with our strategy to put the customer at the center of healthcare transformation, "Merlo told investors. "The challenges we face in this sector are really about qualified nursing centers, which have been worse than originally planned."

CVS exceeded its long-term care forecast primarily due to operational and liquidity issues faced by its customers, including a large operator that declared bankruptcy in the fourth quarter. The company made its debut in the long-term care pharmacy sector in 2015 through its $ 12.9 billion acquisition of Omnicare.