CVS says it plans to enter primary care by the end of the year

CVS said Wednesday it plans to acquire or take a stake in a primary care company by the end of the year as competition intensifies with Amazon and Walgreens.

CEO Karen Lynch said during the company’s second quarter earnings call that the company wanted to partner with a vendor with a strong management team, strong technology experience and the ability to grow rapidly.

CVS, best known for its many pharmacies, has touchpoints in the healthcare industry. It acquired insurer Aetna and pharmaceutical benefits manager Caremark. Customers can get vaccines or emergency care at MinuteClinic outposts inside its stores. And the company also continues to add more health services to these locations – it recently introduced therapy services in select stores.

CVS does not yet have a doctor’s office where patients can go for an annual checkup or appointments with a doctor or nurse practitioner. At an investor day last year, Lynch said CVS wanted to change that by buying or partnering with a company.

At the time, Dr. Alan Lotvin, executive vice president of CVS Health and president of CVS Caremark, said he envisioned CVS to stand out in primary care. The company wants to offer longer hours in its doctors’ surgeries so people can visit as early as 6 a.m., until 9 p.m. or on weekends. He also wants to use simple, streamlined technology, so customers don’t have to fill out piles of paperwork.

Other healthcare players have already taken steps into space. Rival Walgreens Boots Alliance opens hundreds of medical practices in partnership with VillageMD and has become the company’s majority owner. Walmart has a small but growing number of clinics where people can see a doctor, dentist, or therapist for a low price.

Amazon ratcheted up the heat by announcing last month that it would acquire primary care provider One Medical for about $3.9 billion. The boutique healthcare company has 188 medical practices in 25 markets, according to its latest quarterly results.

Lynch said CVS has a competitive advantage with the size of its business. She said nearly 4.8 million customers interact with the company every day on CVS sites. Additionally, she said, MinuteClinic visits increased 12% in the fiscal second quarter.

CVS can build “from the strong foundation we already have,” Lynch said.